DTI: SMART to revitalize manufacturing

MANILA, Philippines — The Department of Trade and Industry (DTI) will help manufacturing companies transition into the Fourth Industrial Revolution as it launches a program aimed at revitalizing the country’s manufacturing sector.

Trade Secretary Ramon Lopez recently unveiled the Securing Manufacturing Revitalization and Transformation (SMART) Program, targeted at revitalizing the manufacturing sector to continue its high growth trajectory and help transition the industries to Industry 4.0.

“The SMART program will support the adoption of Industry 4.0 technologies, upgrading processes, upgrading products, upgrading services, and development of new business models,” Lopez said.

“For this, we are proposing to spend P25 billion to P30 billion to support small, medium, and even large companies for a period of three years,” he added.

The program will support the industry through soft loans, grant vouchers, incentives (through the SIPP), standards, safeguard measures, fund support (similar to the CARS program), and reduction in trade barriers.

Lopez explained that the projects to be supported under the program would have to be performance-based, targeted, time-bound and transparent.

Among the criteria to be considered in the selection of firms under the SMART program inlcude: Global Value Chain upgrading; social benefits and externalities (EV: E-PUV, E-jeepneys, E-trikes, E-buses); adoption of Industry 4.0 technologies to catalyze manufacturing growth and the economy; innovation, R&D, commercialization of market-oriented research; emerging industries, clusters and activities that would address gaps in supply/value chains; and, industrial development in rural areas.

The DTI said it is currently eyeing a number of the programs for funding support under SMART such as the ECO-PUV Program, which includes the manufacture of jeepneys using both ICE and EV technology, parts and components of OEM platform and Eco-PUV body, and production volume and fixed investment support; and the EV incentive scheme (EVIS) program, which provides CARS-like incentives (fixed and production volume incentives) to electric vehicle production.

Other programs include the DTI-National Development Corporation Co-investment Program, which identifies co-fund innovation projects to develop new products, new capabilities, provides funding assistance for developing and testing technology projects, and bestows matching grants; and the Industrial Transformation Program, which would provide support to companies that are shifting to Industry 4.0 technologies to improve productivity through digitalization and automation.

The DTI said the SMART program supports the new flagship industrial strategy of the government as it is consistent with the Philippine Development Plan, the i3S (Inclusive Innovation Industrial Strategy), and the inclusive Filipinnovation and Entrepreneurship Roadmap.