MANILA, Philippines — The Senate on Monday unanimously passed the “Tatak Pinoy (Proudly Filipino)” bill — a measure that creates a national economic plan to boost local industries and diversify the local products that can be exported abroad.
During its final reading, Senate Bill (SB) 2426 received 23 affirmative votes and no negative votes or abstentions.
The proposed “Tatak Pinoy” measure creates a "Tatak Pinoy" council and strategy to establish metrics on how government agencies can prioritize local products and make them more globally competitive.
“Tatak Pinoy started as an idea on how to make the Philippine economy stronger by empowering businesses and industries to produce better, more unique and sophisticated goods and services,” read a press release by the bill’s sponsor, Finance Committee Chairperson Sen. Sonny Angara.
Angara said that the proposed law took inspiration from a Harvard University and Massachusetts Institute of Technology study, “The Atlas of Economic Complexity,” which examined the reasons why some economies perform better than others.
The Atlas, which ranked the Philippines 33rd among 128 countries, said that countries that are more “economically complex” develop and grow at a faster pace, Angara added.
Economic complexity, as defined in the "Tatak Pinoy" bill, refers to the extent to which an area produces goods that are both diverse and unique, or products that few other areas can produce.
Angara said that the “Tatak Pinoy” strategy will see to it that both the national and local government is “firing at all fronts” and collaborating with the private sector to improve the quality of local products.
The measure aims to give preference and priority to products that will be covered by the “Tatak Pinoy” strategy in government procurement by requiring at least a 15% preference, while also allowing for waivers under specific conditions.
SB 2426 also proposes broader market access for Philippine products domestically and internationally. It also seeks to ensure access to financing for domestic enterprises, particularly Micro, Small, and Medium-sized Enterprises, through financial mechanisms such as low-interest loans, credit guarantees, and venture capital activities.
The “Tatak Pinoy” bill was among the 12 priority measures mentioned by Marcos in his second State of the Nation Address in July.
The Philippines is set to miss its export target this year of $126.8 billion under the Philippine Export Development Plan (PEDP) as export growth is only projected to reach 5% by the end of 2023, according to a Department of Trade and Industry official. — with reports by The STAR / Catherine Talavera