The goal of the New Industrial Policy is to create globally competitive, value adding, and innovative industries that would generate more and productive jobs and reduce poverty towards shared prosperity for all.
Shipbuilding
Electronics
AutomotiveAerospace
parts
Chemicals
Garments
agribusiness Furniture
IT BPM
Breakout Session Goal
• For each area, identify the most binding constraints preventing industry growth and recommend policy measures to resolve these constraints that would produce the biggest bang & lead to highly significant improvement in the overall business and investment environment • Competitiveness and innovation
• Labor & HRD
• Physical infrastructure
• Ease of doing business
• MSME Development & inclusive business
• Incentives & other forms of government support
• International Trade & FTAs
Enhanced Illustration based on Dr. Cal’s Diagram
Transportation Vision
TRANSPORT
POLICIES
Development
Strategies &
Principles
Funding Constraints
Inconsistent Approaches
Lack of Understanding
Legal Impediments
INTERVENTIONSImproved
Quality of Life
Infrastructure
Developments
Travel Demand
Management
City Logistics
Economic Measures
(Road Pricing)
Inclusive Smart Mobility
Provision of Mass
Transit System
Accessibility
Inclusive Economic
Growth
Low Carbon Society
Employment
Generation
Seamless Movement of
People & Commodities
Sub-regional Transport
Cooperation
Improved LOS
Seamless
Intermodal
Logistics
Network
System
Resilient
Low
Carbon
Transport
System &
FacilitiesTransport Planning Policy Framework Process
Imposition of clear cut policy prioritization criteria in developing projects & programs Encourage/promote private involvement through PPP ODA consistent/in line with government infrastructure development
Introduction
• The industry roadmaps indicated that the most common horizontal constraints were in the areas of:
• INFRASTRUCTURE AND LOGISTICS, particularly the high cost domestic shipping and power
• GOVERNANCE AND REGULATION, specifically smuggling, bureaucracy, red tape, and the lack of streamlining and automation of interrelated government procedures.
Current State
The Philippines stays at the 57th rank out of 138 countries in the 2016-2017 Report.
Global Competitiveness Report – Overall Infrastructure Ranking2016 – 2017 edition
QUALITY OFOVER-ALL
INFRASTRUCTUREROADS RAILROADS SEAPORTS AIRPORTS
QUALITY OF ELECTRICITY
SUPPLY
INTERNETBANDWITH
SINGAPORE 2 2 5 2 1 2 4
MALAYSIA 19 20 15 17 20 39 75
THAILAND 72 60 77 65 42 61 53
LAO PDR 81 91 NA 132 100 77 97
INDONESIA 80 75 39 75 62 89 112
VIETNAM 85 89 52 77 86 85 85
CAMBODIA 95 93 98 76 99 106 94
PH (2016) 112 106 89 113 116 94 72
PH (2015) 106 97 84 103 98 89 76
MYANMAR NA NA NA NA NA NA NA
BRUNEI 67 41 NA 87 84 52 54
Current State
COUNTRY 2012 2014 2016
SINGAPORE 1 5 5
MALAYSIA 29 25 32
THAILAND 38 35 45
PHILIPPINES 52 57 71
VIETNAM 53 48 64
INDONESIA 59 53 63
CAMBODIA 101 83 73
LAO PDR 109 131 152
MYANMAR 129 145 113
BRUNEI NA NA 70
Source: World Bank LPI
2016 Edition of the LPI covered 160 countries.
WB Logistics Performance Index (LPI) – Overall Ranking
Issues and ChallengesLow paved ratio for local roads, increasing number of trucks
National, Provincial and City Road Inventory as of 2015
Municipal and Barangay Road Inventory as of 1999
SOURCE: DPWH
Condition of Philippine Road Network:As of December 31, 2015
PAVED RATIO (Local Roads)Provincial 35%Municipal 35%City 61%
• THERE ARE MORE THAN 400,000 REGISTERED TRUCKS; 7% ANNUAL GROWTH
• TRUCK TRIPS PER DAY IN METRO MANILA AND ENVIRONS
-2010: 642,714 (actual)-2020: 872,329 (est)-2030: 1,069,841 (est)
Issues and ChallengesMost airports are operating beyond capacity; CLARK underutilized
Airport Passenger Volumes and Capacity
AirportMaximum Passenger
CapacityPassenger Volume
(2014)Capacity Utilization
NAIA 35,000,000 34,198,982 97.7%
MCIA 4,500,000 6,839,349 152.0%
Davao 2,000,000 3,452,479 172.6%
Kalibo 700,000 2,321,162 331.6%
Iloilo 1,600,000 1,677,632 104.9%
Laguindingan 1,600,000 1,553,346 97.1%
Puerto Princesa 350,000 1,378,580 393.9%
Bacolod-Silay 800,000 1,317,841 164.7%
Clark 5,000,000 877,757 17.6%
Caticlan 500,000 507,621 101.5%
Source: DOTr, CAAP
DESPITE THE MANILA PORT CONGESTION IN 2014,
• Cargo traffic at Subic Port has gone up ifrom 6% of capcity to only 20%
• Cargo traffic at the Port of Batangas has gone from 3% to only 27%
CARGO TRAFFICE IN OTHER GATEWAYS (Cebu and Mindanao Container Port) ARE NEARING PORT CAPACITY
Issues and ChallengesMost cargoes are handled in the Port of Manila;
Batangas and Subic Ports are underutilized.
PHILIPPINES SINGAPORE MALAYSIA INDONESIA VIETNAM
Mobile network coverage(% of population)
99.00 100 95.4 100 70
International Internet bandwidth (kb/s per user)
27.7 616.5 27.2 6.2 20.7
ICT use for business to business transactions (high = 7)
4.8 5.8 5.7 4.9 4.9
Business to consumer Internet use (high = 7)
4.8 5.5 5.9 5.4 4.8
Prepaid mobile cellular tariffs (PPP $/min)
0.40 0.19 0.09 0.19 0.15
Fixed broadband Internet tariffs (PPP $/month)
54.59 46.31 42.47 27.92 2.59
WEF Global Information Technology Report 2016
Issues and ChallengesCost, regulatory quality, infrastructure gaps and cybersecurity measures
are major constraints in the penetration rate and use of IT
PHILIPPINES SINGAPORE MALAYSIA INDONESIA VIETNAM
Electricityproduction, kwh/capita
771.4 8,883.5 2,456.7 858 1,416
Quality of electricity supply
4.0 6.8 5.8 4.2 4.4
Comparison of Energy Statistics among ASEAN-5 Countries
Source: World Economic Forum (2016), Global Competitiveness Report and Global Information Technology Report
Issues and ChallengesSecurity and reliability of supply remains to be
the primary concern in the energy sector
Recommendations1. On Infrastructure Development
AIRPORTS
• Expand/modernize priority airports (international gateways and secondary airports) in support of air cargo logistics and tourism
• Install navigational equipment in secondary airports (night-rated) to decongest NAIA
SEAPORTS
• Modernize select domestic ports that will serve as regional “hubs”
• Expand/modernize international gateway ports
• Develop new RORO ports/facilities
• Develop cruise berthing facilities in support of tourism
RAIL: Implement freight-commuter rail projects (MRS, North-South Rail, etc.)
TELECOMMUNICATIONS: Promote additional investments in telecommunications facilities
ENERGY: Pursue the establishment of power generation facilities to increase supply
2. On Program Implementation
ROADS
• Expand the coverage of DPWH-DOT TRIP (Tourism Road Infrastructure Program) Convergence
• Implement DTI-DPWH ROLL IT (Road Logistics Linkages for Investment and Trade) Convergence Program
LOGISTICS CORRIDORS
• Establish logistics corridors (Subic-Clark-Batangas, South-Central Mindanao Logistics Corridor)
PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS
• Implement approved PPP projects
ASEAN RORO INITIATIVE
• Establish the Davao-General Santos-Bitung and Palawan-Sabah RORO routes
Recommendations
3. On Policy Formulation/Implementation
• Issue a National Transport Policy
• Issue a Dual Airport Policy (NAIA-Clark)
• Amend the Public Service Act to liberalize infrastructure investments
• Enact the PPP Law
• Enact the Omnibus Maritime Code
• Amend the Charters of PPA and CAAP (separate the regulatory and development functions)
• Promote aggregation of distribution utilities to lower costs of power
• Finalize and implement the National Broadband Roadmap
4. On Regulatory Reform
• Implement age limits on ships and trucks
• Implement anti-overloading policy
• Improve regulatory quality for the energy sector
• Improve cybersecurity regulations and measures
Recommendations