Updated Philippine

Development Plan
2017-2022
© 2021 by the National Economic and Development Authority

All rights reserved. Any part of this publication may be used and reproduced,
provided proper acknowledgement is made.

Updated Philippine Development Plan 2017-2022

Published by:

National Economic and Development Authority

12 St. Josemaria Escriva Drive, Ortigas Center, Pasig City 1605 Philippines
Telephone: (+632) 8631 0945 to 56
Email: [email protected]
Website: www.neda.gov.ph

ISSN: 2243-7576

Printed in the Philippines

Table of Contents
Foreword xii

Preface xiv

Part I Introduction

Chapter 1 Overview 3

Chapter 2 Global and Regional Trends and Prospects 18

Chapter 3 Overlay of Economic Growth, Demographic Trends, and 32

Physical Characteristics

Chapter 4 Philippine Development Plan 2017-2022 Overall Framework 51

Part II Building a High-trust Society (“Malasakit”)

Chapter 5 Ensuring Responsive, People-centered, Technology-enabled, and 64

Clean Governance

Chapter 6 Pursuing Swift, Fair, and Humane Administration of Justice 79

Chapter 7 Promoting Philippine Culture and Values towards Bayanihan 89

Part III Transforming Towards Equity and Resiliency (“Pagbabago”)

Chapter 8 Expanding Economic Opportunities in Agriculture, Forestry, and Fisheries 102

and Ensuring Food Security

Chapter 9A Expanding Economic Opportunities in Industry 119

Chapter 9B Expanding Economic Opportunities in Services 136

Chapter 9C Expanding Access to Economic Opportunities in I&S for 148

Startups, MSMEs, and Cooperatives

Chapter 10 Human Capital Development Towards Greater Agility 159

Chapter 11 Ensuring Food Resiliency and Reducing Vulnerabilities 193

of Filipinos

Chapter 12 Building Safe, Resilient, and Sustainable Communities 209

Part IV Increasing Growth Potential (“Patuloy na Pag-unlad”)

Chapter 13 Reaching for the Demographic Dividend Across All Regions 221

Chapter 14 Vigorously Advancing Science, Technology, and Innovation 233

Part V Enabling and Supportive Economic Environment

Chapter 15 Ensuring Sound Macroeconomic Policy 252

Chapter 16 Promoting Competition 272

Part VI Foundations for Sustainable Development

Chapter 17 Attaining Just and Lasting Peace 284

Chapter 18 Ensuring Security, Public Order, and Safety 295

Chapter 19 Accelerating Infrastructure Development 309

Chapter 20 Ensuring Ecological Integrity, Clean and Healthy Environment 338

Part VII Protecting the Rights, Promoting the Welfare, and

Expanding Opportunities for Overseas Filipinos

Chapter 21 Protecting the Rights, Promoting the Welfare, and 358

Expanding Opportunities for Overseas Filipinos
Lists of Tables and Figures
Chapter 1 Overview

Figure 1.1 The Philippine Development Plan Framework 7

Figure 1.2 PDP 2017-2022 Reforms Instituted 8

Table 1.1 PDP 2017-2022 Headline Indicators: 12

Targets vs. Accomplishments, 2017-2019

Figure 1.3 Strategic Framework of the Updated PDP 2017-2022 14

Chapter 2 Global and Regional Trends and Prospects

Figure 2.1 GDP Growth 23

Figure 2.2 General Government Gross Debt (% of GDP) 25

Figure 2.3 Change in Population (%), 2020-2050 29

Figure 2.4 Total Dependency Ratio 30

Chapter 3 Overlay of Economic Growth, Demographic Trends, and

Physical Characteristics

Figure 3.1 Average Regional Share in GDP, 2010-2018 36

Table 3.1 GRDP Growth Rate, 2010-2018 37

Table 3.2 Per capita GRDP, 2010-2018 38

Figure 3.2 Population by Region, 2015 39

Figure 3.3 Regional Projected Population, 2015-2025 40

Figure 3.4 Population of Metropolitan Areas: 2000, 2010, and 2015 41

Figure 3.5 Population of Major Cities: 2000, 2010, 2015 42

Figure 3.6 Major Urban Centers 43

Table 3.3 Network of Settlements 44

Chapter 4 Philippine Development Plan 2017-2022 Overall Framework

Table 4.1 PDP 2017-2022 Core Indicators and Headline Targets 54

Figure 4.1 Updated Philippine Development Plan 2017-2022 56

Strategic Framework

Chapter 5 Ensuring Responsive, People-centered, Technology-enabled,

and Clean Governance

Table 5.1 Updated Plan Targets to Ensure Responsive, People-centered, 67

Technology-enabled, and Clean Governance

Figure 5.1 Strategic Framework to Ensure Responsive, People-centered, 69

Technology-enabled, and Clean Governance

Table 5.2 Legislative Agenda to Ensure Responsive, People-centered, 78

Technology-enabled, and Clean Governance

Chapter 6 Pursuing Swift, Fair, and Humane Administration of Justice

Table 6.1 Updated Plan Targets to Pursue Swift, Fair, and 82

Humane Administration of Justice

Figure 6.1 Strategic Framework to Pursue Swift, Fair, and 83

Humane Administration of Justice

Table 6.2 Legislative Agenda to Pursue Swift, Fair, and 88

Humane Administration of Justice

Chapter 7 Promoting Philippine Culture and Values towards Bayanihan

Table 7.1 Updated Plan Targets to Promote Philippine Culture and Values 92

Figure 7.1 Strategic Framework to Promote Philippine Culture and Values 93

towards Bayanihan

Table 7.2 Legislative Agenda to Promote Philippine Culture and Values 99

towards Bayanihan
Chapter 8 Expanding Economic Opportunities in Agriculture, Forestry,
and Fisheries and Ensuring Food Security

Table 8.1 Updated Plan Targets to Expand Economic Opportunities in 106

Agriculture, Forestry, and Fisheries and Ensure Food Security

Figure 8.1 Updated Strategic Framework to Expand Economic Opportunities in 107

Agriculture, Forestry, and Fisheries and Ensure Food Security

Table 8.2 Legislative Agenda to Expand Economic Opportunities in 118

Agriculture, Forestry, and Fisheries and Ensure Food Security

Chapter 9A Expanding Economic Opportunities in Industry

Table 9A.1 Updated Plan Targets to Expand Economic Opportunities in Industry 123

Figure 9A.1 Strategic Framework to Expand Economic Opportunities in Industry 124

Table 9A.2 Legislative Agenda to Expand Economic Opportunities in Industry 135

Chapter 9B Expanding Economic Opportunities in Services

Table 9B.1 Updated Plan Targets to Expand Economic Opportunities in Services 139

Figure 9B.1 Strategic Framework to Expand Economic Opportunities in Services 140

Table 9B.2 Legislative Agenda to Expand Economic Opportunities in Services 146

Chapter 9C Expanding Access to Economic Opportunities in I&S

for Startups, MSMEs, and Cooperatives

Table 9C.1 Updated Plan Targets to Expand Economic Opportunities in I&S 151
for Startups, MSMEs, and Cooperatives

Figure 9C.1 Strategic Framework to Expand Economic Opportunities in I&S 152

for Startups, MSMEs, and Cooperatives

Table 9C.2 Legislative Agenda to Expand Economic Opportunities in I&S 158

for Startups, MSMEs, and Cooperatives
Chapter 10 Human Capital Development Towards Greater Agility

Table 10.1 Core Health and Nutrition Outcome Indicators: 163

Targets vs Accomplishments

Table 10.2 Use of Modern Method of Contraception 164

Table 10.3 Core Education Outcome Indicators: Targets vs Accomplishments, 165

2017-2019

Table 10.4 Core Labor Outcome Indicators: Targets vs Accomplishments 167

Figure 10.1 Strategic Framework to Transform Human Capital Development 169

towards Greater Agility

Table 10.5 Updated Plan Targets to Improve Health and Nutrition Outcomes 170
for All

Table 10.6 Updated Plan Targets to Ensure Lifelong Learning Opportunities 178
for All

Table 10.7 Updated Plan Targets to Increase Income-earning Ability and 184
Enhance Adaptability of Filipinos

Table 10.8 Legislative Agenda to Transform Human Capital Development 189

towards Greater Agility

Chapter 11 Ensuring Food Resiliency and Reducing Vulnerabilities

of Filipinos

Table 11.1 Updated Targets to Ensure Food Resiliency and 197

Reduce Vulnerabilities of Filipinos

Figure 11.1 Strategic Framework to Ensure Food Resiliency and 200

Reduce Vulnerabilities of Filipinos

Table 11.2 Legislative Agenda to Ensure Food Resiliency and 208

Reduce Vulnerabilities of Filipinos

Chapter 12 Building Safe, Resilient, and Sustainable Communities

Table 12.1 Updated Plan Targets to Build Safe, Resilient, and Sustainable 212
Communities
Figure 12.1 Strategic Framework to Build Safe, Resilient, and Sustainable 213
Communities

Table 12.2 Legislative Agenda to Build Safe, Resilient, and Sustainable 218
Communities

Chapter 13 Reaching for the Demographic Dividend Across All Regions

Table 13.1 Updated Plan Targets to Reach for the Demographic Dividend 224

Figure 13.1 Strategic Framework to Reach for the Demographic Dividend 226

Table 13.2 Legislative Agenda to Reach for the Demographic Dividend 232

Chapter 14 Vigorously Advancing Science, Technology, and Innovation

Table 14.1 Updated Plan Targets to Vigorously Advance Science, Technology, 237
and Innovation

Figure 14.1 Strategic Framework to Vigorously Advance Science, Technology, 239

and Innovation

Table 14.2 Legislative Agenda to Vigorously Advance Science, Technology, 249

and Innovation

Chapter 15 Ensuring Sound Macroeconomic Policy

Table 15.1 Revised Plan Targets to Sustain a Sound, Stable, and 257
Supportive Macroeconomic Environment

Figure 15.1 Strategic Framework to Sustain a Sound, Stable, and 260

Supportive Macroeconomic Environment

Table 15.2 Updated Legislative Agenda to Sustain a Sound, Stable, and 270
Supportive Macroeconomic Environment

Chapter 16 Promoting Competition

Table 16.1 Updated Plan Targets to Promote Competition 275

Figure 16.1 Strategic Framework to Promote Competition 277

Table 16.2 Legislative Agenda to Promote Competition 281

Chapter 17 Attaining Just and Lasting Peace

Figure 17.1 Strategic Framework to Attain Just and Lasting Peace 288

Table 17.1 Legislative Agenda to Attain Just and Lasting Peace 294

Chapter 18 Ensuring Security, Public Order, and Safety

Figure 18.1 Strategic Framework to Ensure Security, Public Order, and Safety 299

Table 18.1 Legislative Agenda to Ensure Security, Public Order, and Safety 307

Chapter 19 Accelerating Infrastructure Development

Table 19.1 Updated Targets to Accelerate Infrastructure Development 313

Figure 19.1 Strategic Framework to Accelerate Infrastructure Development 316

Table 19.2 Legislative Agenda to Accelerate Infrastructure Development 335

Chapter 20 Ensuring Ecological Integrity, Clean and Healthy Environment

Table 20.1 Updated Plan Targets to Ensure Ecological Integrity, Clean and 342
Healthy Environment

Figure 20.1 Strategic Framework to Ensure Ecological Integrity, Clean and 344
Healthy Environment

Table 20.2 Legislative Agenda to Ensure Ecological Integrity, Clean and 354
Healthy Environment

Chapter 21 Protecting the Rights, Promoting the Welfare, and

Expanding Opportunities for Overseas Filipinos

Figure 21.1 Overseas Filipino Worker (OFW) Deployment, Land-based, 361

2011-2019

Figure 21.2 OFW Deployment by Destination Country, 2019 362

Table 21.1 Updated Plan Targets to Protect the Rights, Promote the Welfare, and 362
Expand Opportunities for Overseas Filipinos to Contribute to the
Country’s Development
Figure 21.3 Updated Plan Targets to Protect the Rights, Promote the Welfare, and 364
Expand Opportunities for Overseas Filipinos to Contribute to the
Country’s Development

Table 21.2 Legislative Agenda to Protect the Rights, Promote the Welfare, and 369
Expand Opportunities for Overseas Filipinos to Contribute to the
Country’s Development
 Foreword

More than four years ago,

this administration embarked
on a bold campaign to end
poverty in the country by the
year 2040. Since then, we have
implemented major reforms aimed at
correcting long-standing institutional
issues that hindered our nation’s
growth. These reforms include the
Build, Build, Build Program, the Tax
Reform for Acceleration and Inclusion
Act, the Rice Tariffication Law, the
national ID system, free tertiary
education, and universal healthcare,
among others.

xii | Updated Philippine Development Plan 2017-2022

Our economy has been steadily gaining I am therefore directing all government
strength until the COVID-19 pandemic agencies to ensure the efficient and
struck. To save our nation, we made the timely implementation of the strategies
difficult decision to impose life-saving laid out in this Plan. I have no doubt
community quarantines that bought us that we can accomplish these goals and,
precious time to improve our healthcare with the cooperation of the Filipino people,
capacity. Like other countries, our economy eventually heal, recover and rise as
suffered and our people faced serious loss one nation.
of income and livelihood.

We recognize that, to keep our long-term

strategies responsive to our present realities,
we need to recalibrate our actions. This
Updated Philippine Development Plan
2017-2022 thus reflects our determination
to persevere in our goal of ending poverty
despite the setbacks caused by the
pandemic.

RODRIGO ROA DUTERTE

President
Republic of the Philippines

Foreword | xiii
 Preface
In 2017, the NEDA Board approved
the Philippine Development Plan
(PDP) 2017-2022. This was anchored
on the government’s zero to ten-point
socioeconomic agenda and geared towards the
achievement of our long-term vision: Isang
matatag, maginhawa, at panatag na buhay para
sa lahat. Over the last three years, we conducted
the midterm update of the PDP, building on the
achievements from the first half of President
Duterte’s term.

President Duterte’s policy of fiscal prudence

and his push for tax reforms enabled us to
achieve the highest revenue-to-GDP ratio
of 16.1 percent, and the lowest debt-to-GDP
ratio of 39.6 percent in 2019. We earned an
unprecedented upgrade in our credit rating,
which granted us access to more funding
sources for our priority programs at
concessional rates and favorable terms.
These allowed us to sustainably fund the Build,
Build, Build program and provide more and
better social services for the people. As a result,
both the unemployment and underemployment
rates also fell to historic low levels. In other
words, we had realized better economic
outcomes for the Filipino people.

Earlier in 2018, we achieved a record low

poverty rate of 16.7 percent of the population,
achieving our target of lifting some six million
Filipinos out of poverty four years ahead

xiv | Updated Philippine Development Plan 2017-2022

of schedule. If not for the COVID-19 Our prospects for recovery are promising.
pandemic, we would have become an upper- With the roll-out of the COVID-19 vaccines
middle income country at the end of 2020, in the Philippines and other countries,
two years ahead of our 2022 target. the road remains challenging but there is
now light at the end of the tunnel. With
However, COVID-19 temporarily disrupted the productive sectors of the economy
our growth momentum and development strengthened by our fiscal and economic
trajectory. To address this unprecedented reforms, and by our infrastructure program,
crisis and save lives, the government we see no reason why the economy cannot
made the difficult decision of imposing bounce back as we safely reopen the
community quarantines in order to protect economy and implement the strategies in
communities from the virus and beef up the Plan.
our healthcare system. This disrupted the
majority of our economic activities, leading The government is committed to deliver
to loss of income and jobs and temporarily adequate, prudent, and timely policies
reversing some of our economic gains from and responses to help restore income,
the first half of this administration. opportunities, and jobs. The Updated PDP
2017-2022 will lead us back to our vision
Given this, we enhanced the PDP to of a strongly rooted, comfortable, and
respond to the challenges brought about by secure life. We assure the Filipino people
the pandemic. This was a result of public we will not waste this crisis. Like before,
consultations held among key stakeholders. we will turn this crisis into an opportunity
Guided by the AmBisyon Natin 2040, the to recover strongly, and collectively build a
PDP 2017-2022 was formulated to lay down better normal and a more inclusive society
the foundation for inclusive growth, a high- for many years ahead until our AmBisyon
trust and resilient society, and a globally Natin 2040 vision where no one is poor is
competitive knowledge economy. attained.

Through these, the strategies in the Plan

have been organized into a strategic
framework containing three main pillars:
Malasakit (Building a high-trust society),
Pagbabago (Transforming towards equity KARL KENDRICK T. CHUA
and resiliency), and Patuloy na Pag-unlad Socioeconomic Planning Secretary
(Increasing growth potential).

Preface | xv
PART I

INTRODUCTION
01 Overview
CHAPTER 1

Overview
The long-term vision remains the same, and has become
even more pronounced with the emergence of new threats

Every Filipino aspires to enjoy a “matatag, maginhawa, at panatag na buhay.” This is

AmBisyon Natin 2040. Sensitive to these aspirations, the Duterte administration has
embraced the mission to enable and empower every Filipino to achieve his or her AmBisyon.
The Philippine Development Plan (PDP) 2017-2022 has been formulated to lay down
the foundation for inclusive growth, a high-trust and resilient society, and a globally-
competitive knowledge economy. This foundation is intended to be strong enough for the
next three development plans to build on.

During the first three years, a number of needed reforms have been enacted. The reforms have
been game-changing and the desired social and economic outcomes were achieved, even
surpassing the targets at times. This primarily stems from the conscious effort to include
social protection components as part of the reform program. This was done to cushion
the expected adverse, though temporary, effects thereby increasing support to the reform.

Almost four years in, the Philippines was on its way to becoming an upper-middle-income
country, until the once-in-a-century global pandemic, caused by the coronavirus disease
2019 (COVID-19), struck. The immediate response was to save lives by first restricting
social and economic activities to limit the spread of the virus, while improving the country’s
health system capacity.

The health system capacity has since been substantially improved. However, the social and
economic restrictions had adverse social and economic consequences. The challenge at hand
is to muster, as quick as possible, an economic turnaround. And much depends on being
able to manage the risks and transition to the “new normal.”

Even at this time of COVID-19 global pandemic, the country has been benefitting from the
reforms enacted and already implemented (e.g., Rice Tariffication Law, Sin Tax Reform Law,
Ease of Doing Business and Efficient Government Service Delivery Act, Tax Reform
for Acceleration and Inclusion, Telecommuting Act, Social Security Act of 2018,
Balik Scientist Act, etc.). A more accelerated timeline concerning the other reforms would
have substantially built up the country’s resilience (e.g., PhilSys Act, Universal Health Care
Act, Philippine Innovation Act, entry of a third telecommunications provider, Free Internet
in Public Spaces Act, etc.). This pandemic also lends urgency to crucial reform initiatives

Chapter 1 Overview | 5
that will encourage strategic industries to locate in the country (e.g., amendments to the
Foreign Investment Act, Public Service Act, Retail Trade Liberalization Act, and the Corporate
Recovery and Tax Incentives for Enterprises [CREATE]). Over the immediate term, there is a
need to address financial risk that may have worsened because of the mobility restrictions
imposed to contain COVID-19. The proposed Financial Institutions Strategic Transfer (FIST)
and Government Financial Institutions Unified Initiatives to Distressed Enterprises for
Economic Recovery (GUIDE) laws are designed to manage such risks.

We are 20 years away from 2040. While there seems to be ample time to catch up on the
targets related to AmBisyon, recent developments have shown that social and economic
gains can easily be reversed. Hence, together with economic recovery, building resilience is
now the urgent and important development objective. Being resilient, after all, is an essential
component of the AmBisyon: having a secure future (panatag na buhay).

Embracing AmBisyon Natin 2040

Early into his administration, President Rodrigo AmBisyon Natin 2040 reveals the many dimensions
Roa Duterte issued Executive Order No. 5, s.2016 of well-being that Filipinos value the most: strong
“approving and adopting the twenty five-year long- family and community ties, a comfortable lifestyle,
term vision entitled AmBisyon Natin 2040 as guide and a secure future. It should then be the mission
for development planning.” of government to steer development processes to
enable and empower every Filipino to achieve these
AmBisyon Natin 2040 represents the collective aspirations.
aspirations of Filipinos to enjoy a “matatag,
maginhawa at panatag na buhay.” This was the result The same EO adopted the following vision for the
of various focus group discussions and nationally- Philippines:
representative survey undertaken by the National
Economic and Development Authority (NEDA) in
early 2016. By 2040, the Philippines shall have been a
prosperous, predominantly middle-class society
where no one is poor; our peoples live long and
healthy lives, are smart and innovative, and live
in a high-trust society.

A Plan with a Vision:

The Philippine Development Plan 2017-2022
The strategic framework of the PDP 2017-2022 growth, a high-trust and resilient society, and a
(Figure 1.1) is guided by AmBisyon Natin 2040. globally-competitive knowledge economy.
The goal is to lay down the foundation for inclusive

6 | Updated Philippine Development Plan 2017-2022

Figure 1.1 The Philippine Development Plan Framework

The strategies to achieve this objective are organized The Patuloy na Pag-unlad pillar is about increasing
under the three major pillars of “Malasakit,” potential growth. It consists of strategies to enhance
“Pagbabago,” and “Patuloy na Pag-unlad.” the factors necessary to accelerate and sustain
growth and development through 2040. It is about
The Malasakit pillar is about enhancing the social promoting science, technology, and innovation.
fabric. The strategies aim to build the foundations It also covers strategies to reap the demographic
for a high-trust society by ensuring a clean, efficient, dividend.
and people-centered governance; guaranteeing swift
and fair administration of justice; and increasing Supporting these pillars are policies and programs
awareness of the different cultures and values across to ensure sound macroeconomic fundamentals
Philippine society. and promote healthy competition. Furthermore,
realizing the importance of rectifying or improving
The Pagbabago pillar is about effecting inequality- initial conditions that are the foundations for
reducing transformation. It consists of strategies to sustainable development, the PDP 2017-2022
expand economic opportunities, accelerate human contains policies and programs to ensure peace,
capital development, reduce vulnerability, and build security, and public order and safety; accelerate
safe and secure communities. infrastructure development; and address
environmental concerns.

Chapter 1 Overview | 7
This PDP also gives deliberate attention to the at panatag na buhay.” Special focus is given to their
special circumstances of Overseas Filipinos and eventual reintegration and active participation into
their families, with the aim of empowering them to the country’s development processes.
achieve their aspirations for a “matatag, maginhawa,

Reforms Instituted
Running on a platform of change, the Duterte given initial trade-offs. However, a feature of these
administration has introduced a number of much- reforms is the deliberate inclusion of safety nets to
needed and long-awaited reforms, some of which cushion the sectors that might be adversely affected,
have been institutionalized through legislation. though temporarily, by the reform.
These game-changing reforms are expected to
yield net benefits to society and even provide a Figure 1.2 re-draws the strategic framework of the
robust foundation on which to build resiliency. PDP 2017-2022, but indicates the major reforms
Some reforms were admittedly radical and were undertaken. This is followed by a discussion of
expected to result in short-term negative effects the major reforms that can be used as basis for
greater resilience.

Figure 1.2 PDP 2017-2022 Reforms Instituted

8 | Updated Philippine Development Plan 2017-2022

The PhilSys Act establishes a national digital tariff revenues. The RCEF consists of an annual
ID system that will provide every Filipino with appropriation of PHP 10 billion for six years to
proof of identity. This national ID will facilitate fund programs on farm mechanization, seed
transactions in business and with government development, propagation and promotion, credit
by providing a credible but easily accessible assistance, and extension services, which were
instrument for “know your customer” protocols. specifically identified to improve the productivity
This will also fast-track financial inclusion and of rice farmers, reduce production cost, and link
facilitate the provision of targeted transfers from them to the value chain. The excess from the
government, as the need arises. PHP 10 billion tariff revenue collection will still
be given to rice farmers and appropriated by
The Ease of Doing Business and Efficient Congress the following year for the direct financial
Government Service Delivery Act, meanwhile, assistance to rice farmers, titling of agricultural
directs all agencies in government to streamline rice lands, expanded crop insurance program, and
government processes, particularly those crop diversification program. The fund provides
concerning business (B2G) and consumers (C2G), assistance to rice farmers in the form of farm
and rationalize or even harmonize regulations. machinery and equipment, high-yielding seeds,
Under the “new normal,” businesses need to access to affordable credit, and skills training
reconfigure processes or change product lines programs on farm mechanization and modern
altogether, and these may require a new set of farming techniques. The impact on consumers was
permits. This law requires government to be evident – the retail price of rice went down by about
facilitative so that businesses can quickly undertake 9 percent in 2020, from its average in 2018, before
the changes and new investments required. the law was enacted. The impact on rice farmers,
on the other hand, will require a more extensive
Farmers and fisherfolk are expected to benefit impact evaluation. What is clear though, is that
from the Sagip Saka Act which provides various the palay subsector grew by 7.2 percent during
forms of assistance to improve (a) production the second quarter of 2020 amid the very strict
and productivity; (b) access to financing and economic lockdown from the same period in 2019.
better technologies; and (c) business support
and development services. Access to finance is To further facilitate investments, the Revised
further increased with the Agricultural Free Corporation Code of the Philippines eliminates
Patent Reform Act which makes agricultural barriers to entry of both small and large
free patents tradable and bankable instruments. enterprises by permitting the formation of
one-person corporations and by allowing
A major reform in the agriculture sector is the stockholders or members to exercise their rights
Rice Tariffication Law. This is a long-awaited through remote communication and in-absentia
reform designed to open the market for rice trade. voting, among others. As remote communication
The previous regime of quantitative restrictions becomes part of the new normal, this amendment
on imported rice provided price support to the of the Corporation Code will ensure that business
rice farmers but this made the retail price of rice meetings and voting can proceed.
expensive as a result. Despite the price support,
rice farming in the Philippines has been As part of human capital development, the
unprofitable, especially when compared to other Universal Access to Quality Tertiary Education
countries in Asia (Bourdey et. al., 2016). To balance Act provides free tuition in state universities and
the interests of farmers and those of consumers colleges, free technical and vocational education
toward overall efficiency and economic growth, and training, tertiary-education subsidy, and
the law (a) replaces the quantitative restrictions on student loans. On the other hand, the Philippine
imported rice with tariffs of 35 to 40 percent, and Qualifications Framework Act reinforces and
(b) establishes the Rice Competitiveness strengthens the recognition of knowledge and skills
Enhancement Fund (RCEF) coming from the acquired outside the formal education systems

Chapter 1 Overview | 9
through a system of pathways, equivalencies, and The new normal will definitely require innovative
credit transfers. To further increase employability, ways of production, socialization, consumption,
the Tulong Trabaho Act provides free training governance, etc. Operationalizing these innovations
fees and additional financial aid to qualified requires an ecosystem covering science,
beneficiaries enrolling in selected training technology, and innovation (STI). Four landmark
programs (STPs). These reforms ease the financial laws were recently enacted to help establish
burden of acquiring tertiary education, reskilling, the ecosystem. These are (a) the Philippine
and retooling programs, which the workforce Innovation Act which establishes the National
will also need to adjust to the new normal. Innovation Council (NIC), an inter-agency and
multisectoral committee that effectively elevates
The Pantawid Pamilyang Pilipino Act policy and planning on STI to the highest levels
institutionalizes the Pantawid Pamilyang Pilipino of government; (b) the Innovative Startup
Program to reduce the vulnerabilities of children Act which provides incentives, monetary, and
in poor families. The program provides cash operational support to innovative and technology
transfers to family beneficiaries conditional on startups to foster an innovative entrepreneurial
health, nutrition, and education outcomes for a culture; (c) the Philippine Space Act which
maximum of seven years. Other features of the law provides the institutional framework to enable the
also provide effective ways of engaging with poor country to reap the benefits from the development
families even for information and communication and use of space technologies; and (d) the Balik
campaigns, which will be useful to help them adjust Scientist Act which further encourages Filipino
to the new normal, among others. experts, scientists, inventors, and engineers who
are currently abroad to share their knowledge and
The Universal Health Care Act aims to provide expertise in the country.
health care coverage to all Filipinos, when and
where needed, without having to bear huge The entry of a third telecommunications player,
financial burden. It is a package of health care meanwhile, will create a more competitive
reforms centered around health care financing. environment to help ensure affordable and
Among others, it replaces the fragmented system reliable internet services in the country. This is
of health care provision with a network approach. expected to accelerate digital transformation.
This is to be funded by taxes on tobacco Further reforms in the Public Service Act
and alcohol. and Foreign Investments Act will open the
sector more.
The Social Security Act of 2018 strengthens the
Social Security System, which is an important The Tax Reform for Acceleration and Inclusion
institution in building resilience. It also provides (TRAIN) Law corrects the inequity of the tax
economic support to workers who have been system by reducing personal income taxes while
involuntarily displaced. broadening the tax base. The resulting increase
in revenues allowed for the expansion of
The creation of the Department of Human infrastructure and social services budget. Various
Settlements and Urban Development (DHSUD) expenditure management reforms have also
reorients housing policies and programs towards been introduced to address underspending while
building communities, in addition to building ensuring the effective and efficient delivery of
houses. These policies and programs must now public services. These reforms were instrumental
consider resiliency and sustainability conditions. in improving the country’s credit rating to BBB+,
the highest rating it has achieved so far. In turn,
this has enabled the government to mobilize
resources for a massive social assistance package
during the COVID-19 pandemic.

10 | Updated Philippine Development Plan 2017-2022

The signing and subsequent ratification of the debts. Furthermore, the Energy Efficiency and
Bangsamoro Organic Law marks a historic and Conservation Act establishes a framework
significant milestone in the decades-long struggle for institutionalizing energy efficiency and
for self-governance and peace in Mindanao. conservation, and promoting the use of energy-
This has paved the way for lasting peace, which is efficient technologies. All these are important in
an essential pre-condition for building resilience. encouraging investments in the new normal which
may require more geographically-dispersed areas
Government has embarked on the Build of production, including home-based production.
Build Build program, which is an ambitious
infrastructure program that increases spending The Free Internet in Public Places Act aims to
for infrastructure from 4 percent of GDP in 2016, provide free, secure, and reliable internet service
based on actual disbursement, to 5.5 percent in in public places across the country. Prior to this,
2021, and 4.3 percent in 2022. the National Broadband Plan (NBP) was
approved in 2017, which called for the government
A National Transport Policy (NTP), together with to also initiate investments in broadband
its implementing rules and regulations, has also infrastructure to complement private sector efforts
been adopted. Among others, the policy prioritizes in the delivery of universal, fast, reliable broadband
the movement of people, rather than of vehicles, internet services towards a digital economy.
and provides the basis for offering alternative These are critical initiatives to bridge the digital
means of mobility. divide in order to ensure that no one is left behind
even while we transition to the new normal.
In the energy sector, reforms have been enacted to
encourage investments and reduce the electricity The current pandemic has demonstrated the link
bills of consumers. To facilitate the processing between ecological integrity and human health—
of investment applications in the energy sector, from the need for better ventilation and sunlight,
Executive Order No. 30, s. 2017 was created. to ensuring that human activities do not encroach
Another law, the Energy Virtual One-Stop Act, on animal habitats (as a means of preventing
was created to simplify and speed up permitting zoonotic diseases). The Expanded National
processes for new power generation, transmission, Integrated Protected Areas System (ENIPAS)
and distribution projects. The Murang Kuryente Act expands the coverage of the country’s national
Act was enacted in 2019 to help reduce consumers’ protected areas (3.1 million hectares), strengthens
monthly electricity bills and strengthen consumer institutional arrangements for the management
welfare protection through the utilization of the of protected areas, and streamlines the process
government’s share from the Malampaya Fund for accessing the Integrated Protected Area Fund
to pay for the National Power Corporation’s (IPAF) for additional financial resources and
(NPC) stranded contract costs and stranded economic opportunities in the sites.

Results delivered
In addition to the reforms instituted, the Duterte competitive knowledge economy. Table 1 shows the
administration has committed to a set of targets headline outcome indicators, the targets, and the
that indicate progress towards inclusive growth, accomplishments during the first three years of the
a high-trust and resilient society, and a globally- administration.

Chapter 1 Overview | 11
Table 1.1 PDP 2017-2022 Headline Indicators: Targets vs. Accomplishments, 2017-2019

BASELINE PLAN TARGETS ACCOMPLISHMENT

INDICATOR VALUE
(YEAR) 2017 2018 2019 2017 2018 2019

GDP (growth rates) 7.1

6.5- 7.5 7.0- 8.0 7.0- 8.0 6.9 6.3 6.1
sustained (2016)r

GNI per capita (g.r.) 4.5

4.5 5.0 5.0 5.2 4.3 3.9
increased (2015)

Poverty Incidence 23.5

- 17.3-19.3 - N/A 16.7 N/A
(% of Pop’n.) reduced (2015)r

Rural Poverty Incidence 34.0

- 25.6 - N/A 24.5 N/A
(%) reduced (2015)r

Subsistence Incidence 9.1

- 6.8 - N/A 5.2 N/A
(%) reduced (2015)r

Food Inflation (%) 1.7

2-4 2-4 2-4 3.2 6.6 1.8
kept stable (2016)a

Human Dev’t. Index (HDI) 0.701

Increasing Increasing Increasing 0.708 0.711 0.718
improved (2015)

Unemployment Rate 5.4

5.1-5.4 4.7-5.3 4.3-5.3 5.7 5.3 5.1
(%) decreased (2016)r

Employment Generated n.a. 900,000- 900,000- 900,000-

-664,000 823,000 1.27 Mn
increased (2016) 1.1 Mn 1.1 Mn 1.1 Mn

Youth Unemployment Rate 11.5

11.0 10.4 9.8 11.9 13.3 12.9
(%) decreased (Oct 2016)

Underemployment Rate in
19.7
areas outside NCR 18.3-20.3 17.8-19.8 17.4-19.4 17.1 17.7 15.1
(2016)
(%) decreased

Global Innovation Index 74 out of 128 73 out of 127 73 out of 126 54 out of 129
Increasing Increasing Increasing
(rank) improved economies (2016) economies economies economies

Note: r – revised; a – adjusted *original target set in 2016 will be retained

On accelerating economic growth. Gross On improving employment numbers. The

Domestic Product (GDP) grew by 6.9 percent in Duterte administration has delivered on its
2017, well within the target growth rate for the promise of improving employment numbers. In
year. Consequently, Gross National Income (GNI) 2017, unemployment rate increased, but has since
per capita rose by 5.2 percent on the same year. declined. In 2018, unemployment rate is estimated
Beginning 2018, the target was to grow between 7 at 5.3 percent; in 2019, it went down further to 5.1
and 8 percent. However, the country’s GDP growth percent, both within target.
moderated to 6.3 percent in 2018, and 6.0 percent
in 2019. This was due to global headwinds marked The net job loss in 2017 can be explained by the
by increased tendencies towards protectionism, higher school participation rate among the youth
especially coming from the developed economies. aged 15-24 years, resulting from the required
The reenacted budget in 2019 also contributed to additional two years of basic education and
the less-than-targeted economic growth. further encouraged by the tuition fee assistance

12 | Updated Philippine Development Plan 2017-2022

for higher education. This also explains the increase 16.7 percent in 2018, while rural poverty incidence
in youth unemployment rate from 11.9 percent declined dramatically from 34.0 percent in 2015 to
in 2017 to 13.3 percent in 2018. This, however, 23.5 percent in 2018.
improved to 12.9 percent in 2019.
The reduction in poverty incidence in 2018
In 2018, net jobs generated reached almost 900,000. was achieved despite the high food inflation.
This further increased to 1.27 million in 2019, This was because of the higher number of paid
which is more than the target, as the Build Build jobs generated and a deliberate effort to cushion
Build program implementation gained traction. the poor from the adverse, though temporary,
effects of the TRAIN law and infrastructure
Underemployment rate in areas outside the program. This was done by providing transfers
National Capital Region (AONCR) reflected the to low-income families (estimated at 10 million)
increase in full-time jobs outside Metro Manila. through the Unconditional Cash Transfer program,
This remained within target, at 17.1 percent and which has been implemented for three years.
15.1 percent in 2017 and 2019, respectively. In addition, the Human Development Index (HDI)
was estimated by the United Nations Development
On ensuring that economic growth benefits the Programme to have increased from 0.699 to 0.712.
poor. Food inflation rate remained low in 2017 at This marks the first time that the country joins the
3.2 percent, but escalated to 6.6 percent in 2018 category of high-level HDI.
due to the mismanagement of the country’s rice
supply. Food inflation then dropped to 1.8 percent From a baseline ranking of 74 (out of 128
in 2019, primarily due to the implementation of the economies) in 2016 according to the global
Rice Tariffication Law. innovation index, the country jumped to rank
54 (out of 129 economies) in 2019. The country
What would be considered a significant is considered as among the innovation achievers,
accomplishment of the Duterte administration having scored above average in most innovation
is the rapid decline in overall and rural poverty dimensions relative to other lower middle-
incidence beyond targets. Overall poverty income countries.
incidence declined from 23.5 percent in 2015 to

Directive for the next two years:

focus on recovery and resilience
Further demonstrating the resolve to enable and tranches of the Social Amelioration Program,
empower every Filipino to achieve his or her respectively. Meanwhile, the Small Business Wage
Ambisyon, the government has implemented Subsidy program benefitted 2.1 million workers
two major initiatives: Bayanihan to Heal as One employed by small businesses that were adversely
(Bayanihan 1) and Bayanihan to Recover as One affected by quarantine restrictions.
(Bayanihan 2).
Bayanihan 2 will sustain the efforts to improve
Bayanihan 1 provided funds to address the health system capacity, particularly on contact
requirements of COVID-19 for tracing, testing, tracing, testing, and isolation protocols. It will also
and treatment while assisting low-income families provide financial assistance to the sectors that were
and returning overseas Filipinos (OFs) who were adversely affected by the pandemic – transportation,
economically displaced because of the quarantine tourism, education, and micro, small, and medium
restrictions. Some 17.6 million and 14 million enterprises (MSMEs). Assistance will also be given
low-income families received the first and second to the agriculture sector in the form of credit, farm

Chapter 1 Overview | 13
inputs, and training; and skills training, particularly updated to focus its strategies towards having a
on digital skills, to the displaced workers. healthy and resilient Philippines while facilitating
Both initiatives include provisions to build economic recovery. (See Figure 1.3).
resilience. To sustain this, the PDP has been

Figure 1.3 Strategic Framework of the Updated PDP 2017-2022

The updated PDP presents a comprehensive These are integrated into the previous strategies,
environmental scan of the political, economic, as will be discussed in Chapter 4.
social, technological, ecological, and legal
dimensions under the new normal (Chapter 2). Health system improvement. The Universal Health
Care Act provides a comprehensive framework
The National Spatial Strategy (Chapter 3) is also for health system improvement. The reform calls
updated to meet the demands of the new normal. for a paradigm shift in the provision of care, from
being fragmented and facility-based, to having
Moreover, this updated PDP contains five major a network of care with primary care facilities
programs designed to build the resilience of acting as the gatekeeper. The lessons from
individuals, families, business, government, and the COVID-19 pandemic would then add
society under the new normal: (1) health system strengthening of health care outreach services and
improvement, (2) food security and resiliency, (3) even home-based care. Health promotion also needs
learning continuity, (4) digital transformation, to be a prominent feature of health care. More
and (5) regional development through the Balik importantly, there needs to be a careful assessment
Probinsya Bagong Pag-asa Program (BP2). of the current state of health care promotion and

14 | Updated Philippine Development Plan 2017-2022

provision in the country, and a plan and investment In parallel, government will ensure the safety and
program over the medium term on how to improve security of digital transactions, including digital
it to become better prepared for any future health payments. The framework for consumer protection
crisis, which we hope does not come. will also be reviewed to encompass the new normal
way of transacting.
Food security and resiliency. Food security is about
access to safe and affordable food at all times. Regional development. While this has been the
Food resiliency is having food security during goal of the original PDP, the COVID-19 pandemic
times of crisis or emergencies. During the has made regional development an urgent matter.
imposition of the enhanced community quarantine, We have seen that the virus could be transmitted
data shows that while 86 percent of farmers were rapidly in densely-populated areas. This has
able to continue their agricultural work, only highlighted the need to have well-ventilated
65 percent were able to sell their produce. On living quarters, workspaces, and public spaces.
the other hand, people in the cities found it very It is also important to have more green outdoor
difficult to access fresh produce. Over the next two public spaces.
years, policies and programs will be guided by a
food value chain approach – from farm to plate. A major initiative to decongest urban areas is the
In addition to programs to improve agricultural Balik Probinsya Bagong Pag-asa Program (BP2).
productivity, there will be investments in storage The program encourages Metro Manila residents,
facilities, postharvest, cold chain, and even especially informal settlers, to return to their
technologies that prolong the shelf-life of food. home provinces. BP2 will provide assistance for
Urban residents also need to attain some level of transportation expenses, livelihood, housing, and
food sufficiency. education, among others. Over the medium term,
there will be various investments in infrastructure,
Learning continuity. The big challenge under the agriculture, business, transportation, and access to
new normal is to build 21st century knowledge, health care. These investments will reduce inequality
skills, and competencies in a way that is safe for in the quality of life across the various regions.
learners and teachers as even modern pedagogical
approaches are centered around participation, We have also seen the benefits of having well-
teamwork, and collaboration. Added to this is the planned communities where people’s places of
problem of the digital divide that, if not addressed, residence are close to where they work, where
will translate to inequality in access to education there is nearby access to health care facilities and
and may even worsen inequality in the longer food, and so on. All these underscore a need to
term. Education sector agencies will thus design review the different comprehensive land use plans
inclusive mechanisms that deliver quality education. and local development plans. At the same time,
Lifelong learning will remain a priority strategy, disaster risk reduction and management plans
but especially focusing on digital skills training. need to be revised to include the occurrence of
pandemics in the whole framework.
Digital transformation. Government will
accelerate its digital transformation agenda, The Build Build Build (BBB) program will remain
beginning with the implementation of the National a major strategy for economic recovery. The list
Broadband Plan and the Free Wi-Fi program. of infrastructure flagship projects has recently
More government transactions will be enabled been updated considering the new priorities listed
using the digital platform. Similarly, there will above. The foundational role of infrastructure
be technical and financial assistance programs to development in achieving the goal of having a
help businesses, especially MSMEs, to transition healthy and resilient Philippines is recognized. At
towards greater digitalization. the same time, the employment to be generated
by the implementation of BBB projects will be
instrumental in accelerating economic recovery.

Chapter 1 Overview | 15
Enact the remaining reforms
To ease financial capital While the accomplishments with respect to social,
economic, and environmental outcomes have been
constraints resulting from the impressive, the past three years has demonstrated
pandemic that there are limits to the country’s infrastructure
and investment capacities. Moreover, these limits
may be due to restrictive policies that limited the
The restrictions on mobility and business entry of FDIs. Some of these restrictions can be
operations that were imposed to prevent the addressed by amending laws or regulations such
spread of COVID-19 while health systems were as the Public Service Act, Foreign Investment Act,
being improved exacted pressure on the cash flow and the Retail Trade Liberalization Act.
and financial position of businesses and families.
An online survey conducted by NEDA in early The Corporate Recovery Tax Incentives for
April 2020, three weeks into the imposition of Enterprises (CREATE) will usher in a more
Enhanced Community Quarantine (ECQ) in competitive tax and incentive regime for businesses
Luzon and other regions of the country, show – corporate income tax rate will be reduced
that while about two-thirds of businesses did not (by 10 percentage points for small businesses
operate during the ECQ, more than three-fourths and by 5 percentage points for all others). The
continued to pay wages to their pre-ECQ pool of incentive structure can be nuanced depending on
workers. This cash flow problem could negatively the type of investment, location, and subject to
affect significant portions of the business sector, agreed performance targets. CREATE is expected
as payments to suppliers were being deferred, to encourage investments in strategic industries
and ultimately to financial institutions, as loan that are especially needed by the country to
repayments were being postponed. This could lead build resilience.
to a rise in nonperforming loans and a heightened
reluctance of banks to extend credit. If the situation With respect to infrastructure provision, public-
is prolonged, this will delay economic recovery. private partnerships will remain an option to
address infrastructure gaps in various social and
Two important pieces of legislation are being economic sectors, while still recovering from the
proposed to address the aforementioned problem economic shock due to COVID-19.
– (1) the Financial Institutions Strategic Transfer’
(FIST) bill, which seeks to create special purpose
vehicles to help financial institutions offload To ease human capital
their COVID19-induced nonperforming assets;
and (2) the Government Financial Institutions
constraints
Unified Initiatives to Distressed Enterprises for
Economic Recovery (GUIDE), which creates a In addition to attracting additional external
special investment vehicle that would infuse capital investments, it is important to begin developing
into key enterprises while preserving employment the country’s knowledge economy. Related to this,
(and talents) therein. the Philippines needs to improve its capacity for
intellectual property rights protection. In the next
two years, increasing knowledge and improving
To increase strategic the knowledge ecosystem to improve health
investments, including Foreign and building resilience should be prioritized to
improve education and health outcomes.
Direct Investments (FDIs)

16 | Updated Philippine Development Plan 2017-2022

To improve governance over To improve the governance
the management of resources over the environment

As population increases, as the economy grows, and The more robust way to address environmental
as growth centers expand, there will be greater and degradation is to effect behavioral change. This
competing demand for land resources. A national becomes even more important as we see the
land use framework needs to be established to close links between human health and quality
define the indicative priorities for land utilization of the environment. To this end, NEDA has
and allocation across residential, infrastructure, formulated the Philippine Action Plan for
agricultural, and protective uses. The framework Sustainable Consumption and Production which
will also guide efforts, monitor developments consists of a package of actions with respect to
related to land use, and evolve policies, regulations, policy and regulation, research and innovation,
and directions of land use planning processes. infrastructure, and education and promotion.
It also encompasses the issues of waste
Another critical concern today, which is bound to management, sustainable business and lifestyles,
worsen over the immediate future, is the access to and efficient use of resources.
and quality of water supply. The National Capital
Region and CALABARZON are already under
a state of absolute water scarcity; Ilocos Region, To expand market linkages
Central Luzon, and Bicol Region are under water for MSMEs
scarcity; and MIMAROPA and Central Visayas
are under water stress. New sources of drinking
water need to be developed. Equally important As MSMEs are encouraged to innovate and
is to institute governance reforms in the sector, participate in the global market, they need to
where the institutional set-up is weak and comply with international quality standards.
fragmented. There is a need to create an apex Currently, the need is to develop the personal
body that will act as the single lead agency to protective equipment (PPE) ecosystem to afford
oversee/coordinate overall policy and project/ the country’s health care system a reasonable level
program implementation. The creation of a Water of security over the supply of PPEs. Prescribing the
Regulatory Commission is also proposed to country’s National Quality Infrastructure covering
harmonize regulatory practices, processes, and fees standardization, metrology, testing analysis, quality
in the water sector. management, certification, and accreditation
is an important step to gain access to markets,
especially global markets. Beyond harmonized
rules and procedures, the testing laboratories need
to be strategically dispersed across the country
to provide MSMEs easy access to the facility.

Keeping the Long View

We now realize that twenty years until 2040 is a In the remaining Plan period, the Duterte
long time and many challenges may come at any administration is renewing its commitment to
time and place obstacles along the way. COVID-19 enable and empower every Filipino to enjoy each
may just be one of these. It is important to quickly and every one of his or her aspirations—a matatag,
recover lost ground, ensure sustainability of the maginhawa, at panatag na buhay.
gains by building resilience, then get back on track
towards AmBisyon Natin 2040.

Chapter 1 Overview | 17
02
Global and
Regional Trends
and Prospects
 CHAPTER 2

Global and Regional Trends

and Prospects
While some of the trends identified three years ago remain relevant, the coronavirus disease
2019 (COVID-19) pandemic is expected to exert an unprecedented impact on global and
regional developments over the next few years. The Philippines will have to nimbly maneuver
through the following health, environmental, economic, social, political, and technological
trends as it pursues development towards a healthy and resilient Philippines.

Health and Environmental Trends

The COVID-19 Pandemic although the incidence of new infections remains
high, and collectively these two regions contribute
over half of new cases and deaths observed globally.
Since it was first reported in China in December New cases are driven mainly by France, UK, Spain,
2019, confirmed cases of COVID-19, caused by the Italy, Russia, Czechia, Germany, Poland, and
novel coronavirus SARS-CoV-2, have exceeded 42 Netherlands in Europe; USA, Brazil, Argentina,
million individuals in over 200 countries, leading Colombia, and Mexico in the Americas; India,
to over 1.1 million deaths over a period of 11 Indonesia, and Nepal in Southeast Asia; Iran, Iraq,
months.1 Some estimates, based on serosurveys, and Morocco in Eastern Mediterranean; Philippines
indicate that the actual number of infections could in the Western Pacific; and South Africa in Africa.4
be 7 to 27 times larger than the confirmed cases.
Similarly, the number of deaths may be double the The majority of countries in Africa, Eastern
official estimate.2 In any case, early results from Mediterranean, Europe, and the Americas continue
seroepidemiologic studies indicate that in most to report community transmission of COVID-19. In
cases, less than 10 percent of the population have contrast, most countries in Southeast Asia and the
been infected with COVID-19, likely far below the Western Pacific are reporting only either clusters of
level that would confer herd immunity.3 cases, sporadic cases, or even no active cases. Only
four countries (Bangladesh, Indonesia, Philippines,
As of late October 2020, a rapid rise in cases and and Papua New Guinea) in the two regions are still
deaths was reported in Europe. More gradual uptick reporting community transmission.
was also observed in Africa, Eastern-Mediterranean
and Western Pacific regions. Declines continued to
be reported in the Americas and Southeast Asia,

1
World Health Organization (WHO) website. (Source: https://www.who.int/emergencies/diseases/novel-coronavirus-2019)
2
The Economist. The covid-19 pandemic is worse than official figures show. September 26, 2020.
3
WHO website. (Source: https://www.who.int/emergencies/diseases/novel-coronavirus-2019/question-and-answers-hub/q-a-detail/coronavirus-
disease-covid-19-serology)
4
WHO, COVID-19 Weekly Epidemiological Update, October 18, 2020.

20 | Updated Philippine Development Plan 2017-2022

Despite the overall uptrend in cases, incidence of essential products (including personal protective
deaths has remained relatively stable, possibly due equipment and oxygen). WHO is coordinating
to better case management. The results of several efforts to equitably distribute 2 billion vaccine doses
clinical trials for other novel and repurposed by 2021 to immunize health care workers and the
therapies are expected in the last quarter of 2020 and vulnerable.13 However, as of late September, less
first quarter of 2021. At the same time, the long-term than 7 percent of the USD 38 billion total funding
impact of the disease is still not well understood. needed, has been pledged.
To improve detection, WHO is evaluating over 50
diagnostic tests, including several potentially game- The COVID-19 pandemic is a stark reminder of
changing rapid diagnostic tests.5 the rising risks from infectious disease outbreaks.
Between 2011 and 2018, WHO tracked 1,483
As of mid-October 2020, there are around 200 epidemic events in 172 countries. Climate change,
candidate vaccines, 44 of which are now undergoing urbanization, and the lack of water and sanitation
human trials, while 10 have reached Phase 3 trials are all factors that contribute to fast-spreading,
of safety and efficacy.6 Some of the leading trials catastrophic outbreaks. Anti-Microbial Resistance
may report results in the last quarter of 2020.7 The (AMR) also poses a significant and growing threat.
Philippines is participating in the WHO Solidarity The Global Preparedness Monitoring Board had
Vaccine Trials, with 12 hospitals around the previously warned that the world is not prepared
country designated as trial sites. Aside from these, for a fast-moving, virulent respiratory pathogen
the country is also studying results of clinical trials pandemic. Previous World Bank and WHO
of vaccines from six companies from China, Russia, analyses indicate that most countries would need to
Australia, and Taiwan.8 Phase 3 vaccine clinical spend on average between USD 1 to 2 per person
trials are set to begin in November 2020.9 (see per year to reach an acceptable level of pandemic
Chapters 10, 11, and 14 for additional information) preparedness.14 (Improvements in the Philippines’
health care system are discussed in Chapters 1, 4, and
Global production capacity is estimated at 1 billion 10)
doses by end-2020, rising to an estimated 8 billion
by end-2021.10 Other estimates note that while there
is a high probability that at least one vaccine will be Climate Change
approved by 2021, it will likely take over a year to
produce enough doses for healthcare professionals Human activities are estimated to have resulted
worldwide, and that it could take at least until in a 1.0 degree Celsius (°C) global warming above
2023 before there are enough doses to cover pre-industrial levels. If it continues to increase at
most of the world population.11, 12 An important current rate, the world is expected to be warmer by
challenge therefore is ensuring equitable access 1.5°C between 2030 and 2052. In such a scenario,
to vaccines, therapeutics, diagnostics, and other warming of extreme temperatures in many regions;

5 WHO. ACT-Accelerator Status Report & Plan, September 2020 – December 2021.
6
WHO. Draft landscape of COVID-19 candidate vaccines, October 19 2020.
⁷ WHO website. (Source: https://www.who.int/emergencies/diseases/novel-coronavirus-2019/question-and-answers-hub/q-a-detail/coronavirus-
disease-covid-19)
⁸ DOST Press Release, “DOST Prepares for WHO Solidarity Trials” October 9 2020 (Source: https://www.dost.gov.ph/knowledge-resources/
news/67-2020-news/2017-dost-prepares-for-who-solidarity-trials.html)
⁹ DOH Press Release, “DOST-led sub-TWG on vaccine dev’t gears up for vaccine trials in the Philippines”, October 10 2020 (Source: https://doh.
gov.ph/press-release/DOST-LED-SUB-TWG-ON-VACCINE-DEV%E2%80%99T-GEARS-UP-FOR-VACCINE-TRIALS-IN-THE-PHILIPPINES)
10
WB. East Asia and the Pacific Economic Update, October 2020.
11
Center for Global Development, COVID-19 Vaccine Predictions: Using Mathematical Modelling and Expert Opinions to Estimate Timelines
and Probabilities of Success of COVID-19 Vaccines, CGD Policy Paper 183, October 2020.
12
Financial Times, Not enough Covid vaccine for all until 2024 says biggest producer, September 14, 2020.
13
WHO. ACT-Accelerator Status Report & Plan, September 2020 – December 2021.
14
Global Preparedness Monitoring Board. “A world at risk: annual report on global preparedness for health emergencies.” 2019.

Chapter 2 Global and Regional Trends and Prospects | 21

increases in frequency, intensity, and/or amount aquaculture will be reduced. For example, coral reefs
of heavy precipitation in several regions; and an are seen to decline by a further 70 to 90 percent.”
increase in intensity or frequency of droughts in
some regions are expected. The number of hot days Countries in the tropics and Southern Hemisphere
is projected to increase in most land regions, with subtropics are projected to experience the largest
highest increases in the tropics.15 impacts on economic growth due to climate change
should global warming increase from 1.5°C to 2°C.
Global emissions are reaching record levels and Indeed, the World Bank and Climate Analytics have
show no sign of peaking. The last four years have cited the Philippines as one of the countries most
been the hottest on record, and winter temperatures vulnerable to climate change with its high exposure
in the Arctic have risen by 3°C since 1990. In to extreme weather events and long coastlines
effect, sea levels are rising, coral reefs are dying, subject to rising sea levels.18 The DOST-PAGASA
air is becoming more polluted, and there are more reported a warming of an average rate of 0.1°C per
heatwaves and risks to food security.16 decade and will continue to increase in the future.
Projection shows that the country will experience
The Intergovernmental Panel on Climate Change an average temperate increase by as much as 0.9°C
(IPCC) projects that global mean sea level will rise - 1.9°C in a moderate emission scenario and 1.2°C
to 0.26 to 0.77 meters with global warming of 1.5°C - 2.3°C in a high emission scenario in 2036 to 2065.
by 2100. Sea level will continue to rise well beyond By the end of 21st century, this increase could range
2100, and the magnitude and rate of this rise depend from 2.5°C - 4.1°C if there is no concerted effort to
on future emission pathways.17 cut greenhouse gas emissions.19 (see Chapters 3, 18,
19, and 20)
The IPCC also expects that “global warming of 1.5°C
will shift many marine species to higher latitudes The UN-IPCC also projects that risks from some
and worsen the damage to many ecosystems. vector-borne diseases, such as malaria and dengue
Furthermore, the loss of coastal resources will fever, will increase with warming from 1.5°C to 2°C.
increase, while the productivity of fisheries and

Economic Trends
Weaker Economic Outlook global economy into a recession in 2020, shrinking
by -4.4 percent. After rebounding by 5.2 percent in
Amid COVID-19 and the 2021, global growth is expected to gradually slow
Great Lockdown down again to about 3.5 percent in the medium-
term.20 Most countries in the region are expected
After relatively weak global growth in the past to contract, with the notable exception of China.
three years, the International Monetary Fund Within the ASEAN-5, only Vietnam is expected to
(IMF) projects that the pandemic and resulting post positive growth. Malaysia and Indonesia GDP
restrictions in economic activities will push the are expected to recover to pre-pandemic levels by
2021, while Thailand and the Philippines will do so

15
United Nations Intergovernmental Panel on Climate Change (UN-IPCC) Special Report: Global Warming of 1.5C.
16
UN Climate Action Summit 2019.
17
UN-IPCC, ibid.
18
Climate Analytics, Country Profile: Philippines, “Decarbonising South and South East Asia”, May 2019.
19
DOST-PAGASA, 2018.
20
International Monetary Fund (IMF). World Economic Outlook. October 2020.

22 | Updated Philippine Development Plan 2017-2022

only by 2022.21 (The impact of the pandemic on the potential financial crises as governments take on
Philippines’ growth prospects are discussed further in higher fiscal spending/debt and as financial markets
Chapter 4). diverge from the real economy, destabilizing policy
and geopolitical developments (e.g., Brexit, Hong
While oil prices are expected to pick up after dipping Kong, North Korea, China-India conflict), trade war
in 2020, the IMF now expects it to remain below USD escalation and uncertainty, renewed stress towards
60 even by 2025, amid subdued aggregate demand. financially vulnerable countries, and sharper-than-
Downside risks abound from the following: multiple expected slowdown in key economies (i.e., China,
waves of COVID-19 pandemic outbreaks, slower EU). Upside risks include supply shocks from
than expected recovery as lockdowns are gradually geopolitical tensions (e.g., Saudi Arabia Oil Tanker
lifted and consumers adapt to ‘new normal,’ Attack).

Figure 2.1 GDP Growth

Source: IMF World Economic Outlook, October 2020

Slower Global Trade Amid Global trade experienced strong growth in 2017
to 2018 at an average of 4.5 percent growth, before
Shifts in Supply Chains and slowing to less than 1 percent in 2019. However,
Rising Protectionism with the pandemic, the IMF projects that global
trade will shrink by 8 percent in 2020, before
recovering by 7.9 percent in 2021, and gradually

21
The IMF baseline projection assumes that social distancing will continue into 2021 but will subsequently fade over time as vaccine coverage
expands and therapies improve. Local transmission is assumed to be brought to low levels everywhere by the end of 2022.

Chapter 2 Global and Regional Trends and Prospects | 23

easing to 3.5 percent in the medium-term.22 For surgical masks, gloves, medicine, and disinfectant
the ASEAN-5, the average decline in exports is 7.4 have started to be eased during the latter part of the
percent in 2020, before recovering by 12.2 percent period though.
in 2021. For 2020, a double-digit decline is expected
in Indonesia, Malaysia, and the Philippines, with a The pandemic is also expected to have a sharp and
full recovery expected only by 2022 for Malaysia, prolonged impact on services trade, particularly on
Thailand, and the Philippines. Slowing global trade travel and tourism. International travel restrictions,
is compounded by weaker external demand, terms- together with consumers’ fear of exposure to the
of-trade losses, and supply chain disruptions (e.g., virus, are likely to subdue tourism activity. The
due to production restrictions or border delays). International Air Transport Association projects air
Indeed, the World Trade Organization (WTO) transport demand to decline by over 66 percent in
notes that sectors with more complex value chains23 2020, and that it may take some 5 years for passenger
as well as services trade will be most affected by the demand to return to pre-COVID levels.25 Similarly,
COVID-19 pandemic. the UN World Tourism Organization expects
tourism arrival declines of 58 to 78 percent for 2020,
The slowdown in trade is happening amidst rising with full recovery possibly by 2024.26 (Strategies to
protectionist tendencies over the past decade. address the impact of the pandemic on Philippines’
Trade restrictions by WTO members have reached goods and services trade are discussed in Chapter 9)
historic highs. The stockpile of import restrictions
implemented since 2009, and still in force, is
estimated to affect around USD 1.7 trillion or 8.7 Global Investment Flows to
percent of world imports.24 While trade facilitation Remain Below Pre-pandemic
measures have likewise been introduced, these have
been outpaced by restrictive measures. Levels
Given the pandemic, there may be some shifts in After fully recovering and peaking at USD 2 trillion
supply chains with rising political pressure to re- in 2015, global foreign direct investment (FDI)
shore production to reduce perceived vulnerabilities has been declining again, reaching USD1.3 trillion
from reliance on foreign producers. Firms may in 2018 and USD1.5 trillion in 2019, with the
also reconfigure their global production networks contraction mostly coming from US multinationals
to manage the risks of production disruptions repatriating earnings from abroad due to policy-
better. The pandemic may also induce protectionist driven tax reforms.27
measures to shield local firms given weakening local
economies or limit exports given domestic needs. In contrast, FDI inflows to developing Asia have
been broadly steady, with a minimal decline of 5
Over a period of seven months to mid-May 2020, percent to USD 474 billion in 2019.28 For ASEAN-5,
WTO members implemented 363 new trade and FDI inflows actually increased by around 30 percent
trade-related measures, 256 of which (about 71%) between 2015 and 2018, exceeding inflows to China
were linked to the pandemic. Of the pandemic- in the last three years.
related measures, 47 facilitated trade and 109
restricted trade. Some of the export restrictions on

22
IMF. World Economic Outlook database. October 2020.
23
WTO. Trade Statistics and Outlook, “Trade set to plunge as COVID-19 pandemic upends global economy.” April 8, 2020.
24
WTO. Report of the TPRB from the Director-General on Trade-Related Developments. July 10, 2020.
25
IATA. “June data and revised air travel outlook.” July 28 2020; “Downgrade for global air travel outlook.” September 29, 2020.
26
UNWTO. World Tourism Barometer. August/September 2020.
27
United Nations Conference on Trade and Development (UNCTAD). Global Foreign Direct Investment Slides for Third Consecutive Year,
June 12, 2019. (Source: https://unctad.org/news/global-foreign-direct-investment-slides-third-consecutive-year)
28
  UNCTAD. World Investment Report 2020.

24 | Updated Philippine Development Plan 2017-2022

Given the pandemic, UN forecasts that global FDI Sovereign debt levels to rise
flows will fall by 40 percent bringing FDI to USD
1 trillion in 2020. From there, FDI is projected significantly
to further decrease by 5 to 10 percent in 2021.
Despite a potential initial rebound in 2022, FDI As economies slow down, revenue collections
flows are not expected to return to pre-COVID are expected to fall. Together with an increase in
levels. For developing Asia, FDI is projected to spending in response to the crisis, the IMF expects
fall by 30 to 45 percent in 2020. The pandemic is budget deficits and sovereign debt-to-GDP ratios
expected to accelerate pre-existing trends towards to increase over the medium-term. In advanced
rationalization of international operations, economies, government debt is projected to rise
reshoring, nearshoring, and regionalization.29 by about 20 percentage points (ppt) to 124 percent
(Strategies to address the impact of the pandemic of GDP by the end of 2022. Over the same period,
on FDI flows into the Philippines are discussed in sovereign debt in emerging markets and developing
Chapter 9) Asia is projected to rise by more than 17 ppt to
about 70 percent of GDP. For the ASEAN-5, a 12
ppt increase to over 50 percent of GDP is projected
over the period. (Strategies to address the impact
of the pandemic on Philippines’ fiscal position and
public debt are discussed in Chapter 15)

Figure 2.2 General Government Gross Debt (% of GDP)

Source: IMF World Economic Outlook, October 2020

  UNCTAD. World Investment Report 2020.

29

Chapter 2 Global and Regional Trends and Prospects | 25

Broad-based Monetary worth USD 3.8 trillion so far in 2020, helping yields
on long-term government debt remain close to zero
Easing Bias despite the increased deficit and debt levels.30

Over the past three years, central banks across both In fact, interest rates are projected to fall further. In
developed and emerging markets have largely taken turn, borrowing rates that stay lower for longer will
an accommodative monetary policy stance given help cushion the expected increase in debt burdens31
slowing global growth and subdued inflation. Amid as a result of similarly expansive fiscal policy.
the COVID-19 pandemic, countries across the (Strategies to address the impact of the pandemic on
globe are further easing monetary policy to support the Philippines’ monetary and financial sectors are
growth. By some estimates, the US, UK, Japan, and discussed in Chapter 15)
the Euro Area, together, have injected liquidity

Political Trends
Rising Populism, Separatism, For the United Kingdom (UK), an extended period
of uncertainty is likely even after Brexit. Apart from
and Geopolitical Tensions the economic fallout from leaving the European
Union (EU), the UK may face increasing internal
The shift away from multilateralism, towards pressure from rising separatist sentiments in certain
populist and inward-looking policies has gathered areas. China and India face similar challenges.32
steam and may persist over the next three years. This
shift has had a substantial impact on international Moreover, geopolitical tensions are on the rise
policy discussions in the areas of trade, migration, with North Korea missile talks and disputes over
environment, and security, among others. Iran’s nuclear program. This has increased global
uncertainty, dampened investor and business
In addition, the outcome of the elections in the sentiment, and have consequently clouded the
United States is likely to have a significant impact outlook for global growth moving forward.
on the direction of US policies. That said, most (Strategies to address the impact of geopolitical
political analysts expect that tensions between tensions are discussed in Chapters 9 and 18)
the US and China are likely to persist given their
growing rivalry in various fields.

30
  The Economist. “The Eternal Zero.” October 8, 2020.
31
  Capital Economics. “Global State of Play.” June 2020.
32
  The Economist. “The coming surge in separatism.” in The World in 2020.

26 | Updated Philippine Development Plan 2017-2022

Social and Demographic Trends
33

Unemployment is expected The nearly simultaneous decline in economic

to remain elevated activities globally, though, is likely to subdue the
counter-cyclical tendency of remittance flows in the
With the contraction in economic activities, the short term.
IMF expects unemployment rates to increase and
remain elevated over the next three years across Nonetheless, over the long term, the main drivers
both advanced and emerging market economies. In of migration – diverging demographic trends and
the USA and Euro area, unemployment is projected the related wide gap in wages and incomes – are
to rise to 8.9 percent in 2020, before easing to 5.7 unlikely to change significantly.
percent in 2022 for the USA. For the Euro area, it will
increase further to 9.1 percent in 2021 before easing International migration has become a major factor of
to 8.4 percent in 2022. Unemployment rates in population dynamics. Europe and North America,
several emerging market economies are projected to Australia and New Zealand, and Western Asia have
increase significantly this year. The main exception experienced net inflows of international migrants.
seems to be China and Thailand. (The impact of On the other hand, Central and Southern Asia,
the pandemic on the Philippines’ labor markets are Eastern and Southeastern Asia, Latin America, and
discussed further in Chapter 4. Strategies to address Sub-Saharan Africa have experienced net outflows
the impact of the pandemic on the Philippines labor of migrants over the past two decades.
markets are discussed in Chapter 10)
The largest outflows are driven by demand for
migrant workers (such as from Bangladesh, Nepal,
Migration and remittance Philippines) or violence, insecurity, and armed
conflict (such as Myanmar, Syria, Venezuela).
flows are expected to decline
sharply in the medium-term, Belarus, Estonia, Germany, Hungary, Italy, Japan,
the Russian Federation, Serbia, and Ukraine will
but long-term factors are likely experience a net inflow of migrants over the next
to persist decade, helping to offset population losses caused by
an excess of deaths over births. (Strategies to address
the impact of the pandemic on migrant Filipinos are
The World Bank projects global remittances to
discussed in Chapter 21)
decline by 20 percent in 2020. Remittance flows
are expected to fall across all regions, most notably
in Europe and Central Asia (27.5%), followed by
Sub-Saharan Africa (23.1%), South Asia (22.1%),
the Middle East and North Africa (19.6%), Latin
America and the Caribbean (19.3%), and East
Asia and the Pacific (13.0%). In 2021, World Bank
(WB) estimates that remittances to low and middle-
income countries will experience a weak recovery
of only 5.6 percent. Despite a sharp decline in
remittances early in the lockdown, there are some
signs of recovery.

  UN Department of Economic and Social Affairs. World Population Prospects 2019: Highlights, June 17, 2019.
33

Chapter 2 Global and Regional Trends and Prospects | 27

Global demographic trends Aging and Shrinking
will remain broadly the same34 Populations in Some Regions

The United Nations (UN) expects over 47 million As a result, the old population is fast increasing.
women in 114 low- and middle-income countries The UN also expects the share of the population
to lose access to modern contraceptives, some who are over the age of 65 is expected to rise from
seven million unintended pregnancies are projected 9 percent in 2019 to 16 percent by 2050. In line
to occur if the pandemic-induced lockdowns with this, working-age population has fallen in
persist for six months.35 Nevertheless, long-term proportion, consequently putting pressure on social
demographic trends are expected to remain broadly protection systems (health care, pensions, and
the same despite the pandemic. social protection).

The UN projects that global population will The speed of population aging is fastest in Eastern
increase by 2 billion persons in the next 30 years and South-Eastern Asia, particularly in South
from 7.7 billion in 2019. However, growth rates Korea, Singapore, Taiwan, Macao, Thailand, Hong
vary greatly across regions. Nine countries will Kong, and Brunei. These countries will experience
make up more than half the projected growth of an increase in the share of the older person by
the global population between now and 2050: between 16.5 ppt to 23.0 ppt.
India, Nigeria, Pakistan, Congo, Ethiopia, Tanzania,
Indonesia, Egypt, and the USA. Around 2027, India Since 2010, 27 countries or areas have experienced
is projected to overtake China as the world’s most a reduction of one percent or more in the size of
populous country. their populations. Per the UN, this drop is caused
by sustained low levels of fertility. The impact of low
Life expectancy at birth for the world’s population fertility on population size is reinforced in some
reached 72.6 years in 2019, an improvement of more locations by high rates of emigration. Between 2019
than eight years since 1990. Further improvements and 2050, populations are projected to decrease by
in survival are projected to result in an average one percent or more in 55 countries or areas, of
length of life globally of around 77.1 years in 2050. which 26 may see a reduction of at least 10 percent.
The largest relative reductions in population size
Global fertility rate fell from 3.2 births per woman over that period, with losses of around 20 percent
in 1990 to 2.5 in 2019. It is projected to decline or more, are expected in Lithuania, Bulgaria, Latvia,
further to 2.2 in 2050.36 (Demographic trends in the the Wallis and Futuna Islands, and Ukraine.
Philippines are further discussed in Chapters 3, 10,
and 13) Countries in the region that will see significant
declines in population between 2020 and 2050 are
Japan (-16%), South Korea (-9%), Taiwan (-6%),
Thailand (-6%), and China (-3%). In contrast, all
ASEAN member states, except Thailand, will have
increases in population led by the Philippines (32%),
followed by Cambodia and Lao, at about 30%.

34
  UN Department of Economic and Social Affairs, World Population Prospects 2019: Highlights, June 17, 2019.
35
  United Nations Population Fund (UNFPA), Impact of the COVID-19 Pandemic on Family Planning and Ending Gender-based Violence,
Female Genital Mutilation and Child Marriage, April 2020.
36
  Fertility level of 2.1 births per woman is needed to ensure replacement of generations and avoid population decline over the long run in the
absence of migration.

28 | Updated Philippine Development Plan 2017-2022

Figure 2.3 Change in Population (%), 2020-2050

Source: UN Department of Economic and Social Affairs

Demographic Window is In Southeast Asia (SEA), UN Department

of Economic and Social Affairs (UNDESA)
Opening for Some Regions projections37 indicate that the share of working-
age population in Brunei, Singapore, Thailand, and
In most of sub-Saharan Africa, and in parts of Vietnam will drop between 2020 and 2050. For the
Asia and Latin America and the Caribbean, recent rest of SEA, including the Philippines, it is expected
reductions in fertility have caused the number of to increase. Consequently, the total dependency
the working age group (25-64 years) to grow faster ratios38 for Brunei, Singapore, Thailand, and
than the rest. Vietnam will increase, while it is expected to decline
in the rest of SEA, including the Philippines, for the
same period. (Strategies to take advantage of the
Philippines’ demographic window are discussed in
Chapter 13)

  UNDESA, World Population Prospects 2019, custom data acquired via website.
37

  Ratio of population aged 0-24 and 65+ per 100 population aged 25-64.
38

Chapter 2 Global and Regional Trends and Prospects | 29

Figure 2.4 Total Dependency Ratio

Total Dependency Ratio ((Age 0-24 + Age 65+) / Age 25-64) De facto population as of July 1 of the year indicated.
Source: UNDESA

Progress in reducing global For 2021, global extreme poverty rate is expected
between 8.9 and 9.4 percent – a return to the 2017
poverty will be delayed global poverty rate. This means that the world
could lose some three to four years in the fight
The World Bank expects that the pandemic will against poverty. Over the longer term, even if per
push 88 to 115 million people into extreme poverty capita income growth returns to pre-COVID rates,
(USD 1.9) in 2020 or a rise in global extreme poverty extreme poverty is projected to decline to 6.7 percent
incidence to between 9.1 to 9.4 percent in 2020, from by 2030, more than twice the target of 3.0 percent.39
8.2 percent in 2019. Most of the additional extreme (The impact of the pandemic on the Philippines’ fight
poor will come from South Asia (49 to 56 million) against poverty are discussed further in Chapter 4.
and Sub-Saharan Africa (26 to 40 million people). Strategies to address the impact of the pandemic on
The bulk will come from middle-income countries poverty in the Philippines are discussed in Chapters
(72 to 94 million). Many of the new poor are likely to 5, 8, 10, 11, and 12).
be engaged as paid employees in informal services,
construction, and manufacturing, live in urban
areas, with better access to infrastructure, and more
educated than the chronic poor.

  WB. Poverty and Shared Prosperity 2020.

39

30 | Updated Philippine Development Plan 2017-2022

Technological Trends
Technologies for the Next companies such as Alibaba and Tencent dominating
the field. Indeed, with the COVID-19 pandemic
Production Revolution40,41 and the ensuing “new normal,” e-commerce and
contactless digital transactions are expected to become
Technological developments have been catered towards the norm.
solving global concerns such as slowing productivity
growth, ageing populations, climate change, Additive manufacturing: 3D printing is rapidly
globalization, and adapting to the ‘new normal’. expanding, with falling prices for printers
However, the speed and uncertainty of technological and materials, quality improvements and other
change presents a challenge to governments in terms innovations. Recent innovations include 3D printing
of oversight to prevent inappropriate applications. with novel materials, such as glass, biological cells,
and even liquids (using nanoparticles); robot-arm
Artificial Intelligence (AI): In the pharmaceutical printheads that allow printing objects larger than
industry, AI is expected to become the “primary-drug the printer itself (opening the way for automated
discovery tool” by 2027. It has likewise improved construction); touchless manipulation of print
the affordability of certain medical procedures such particles with ultrasound (allowing printing electronic
as genome sequencing and disease detection – indeed, components sensitive to static electricity); and hybrid
the National Human Genome Research Institute 3D printers, combining additive manufacturing with
estimates that as many as two billion people will have computer-controlled machining and milling. Research
their genome sequenced by 2025.42 is also advancing on 3D printing, with materials
programmed to change shape after printing. Most
AI is already being used in industrial settings to 3D printing is used to make prototypes, models, and
identify and recommend solutions to production tools. Currently, 3D printing is not cost-competitive
problems, operate autonomous machines, design at volume with traditional mass-production
buildings, discover new materials, and predict technologies, such as plastic injection moulding. The
maintenance needs. It is also being used for real-time costs of switching from traditional mass-production
fleet-management, optimizing energy consumption, technologies to 3D printing are expected to decline in
digital security, office task automation, workforce the coming years as production volumes grow.
training.
Green technology: Amidst concerns of climate change
Blockchain: While its potential applications and diminishing resources, green technology has also
could be transformative, blockchain remains an been on the rise. Among the advancements made
immature technology. Challenges include the need are bio-refineries (aimed at reducing greenhouse gas
for fundamental changes in business practices, and emissions), industrial biotechnology, and bioeconomy
slower transaction speeds. Nevertheless, “blockchain (production of goods from renewable biomass/
as a service” is already being offered by a few firms. synthetic biology such as biofuels and artificial
Blockchain technology has made advancements photosynthesis), gene-editing technologies, synthetic
in the financial sector with the establishment of biology, and electric vehicles. Indeed, major car
cryptocurrencies and fintech. China, in particular, is companies such as Volkswagen and Volvo aim to be
seen to take the lead in digital cash payments with all-electric by 2021-26.43

40
  Organisation for Economic Co-operation and Development (OECD). Science, Technology and Innovation Outlook 2018.
41
  The Economist. “Of anniversaries and climate change, 2019 in Review: Science and Technology,” (Source: https://www.economist.com/science-
and-technology/2019/12/29/2019-in-review-science-and-technology)
42
  “Three technological trends that will shape the decade.” Financial Times. (Source: https://www.ft.com/content/a5e43158-3066-11ea-a329-
0bcf87a328f2)
43
  Oswald, Ed. “Welcome to the 2020s. Here’s the tech that will shape the next decade.” Digital Trends. (Source: https://www.digitaltrends.com/
cool-tech/2020-tech-trends-for-the-decade/)

Chapter 2 Global and Regional Trends and Prospects | 31

03
Overlay of
Economic
Growth,
Demographic
Trends, and
Physical
Characteristics
CHAPTER 3

Overlay of Economic Growth,

Demographic Trends, and
Physical Characteristics
The Philippine Development Plan (PDP) 2017-2022 incorporates a national spatial strategy
(NSS) that sets the direction of the physical development of the country. It promotes sustainable
human settlements development, access to social services, integration of leading and lagging
regions, and building resilience. The health risk brought about by the COVID-19 pandemic
has given prominence to the need to improve living standards in cities and promote regional
development, ensure connectivity and safe mobility, and manage disaster risks—which are
addressed to a large extent by the NSS. As a planning framework, the NSS is complemented
by more detailed sectoral plans such as those for transport and other infrastructure, as well
as master plans for specific metropolitan areas.

The complexity of development problems, policy agenda-setting, current institutional

setups, and financial resource availability and allocation are major challenges that need to
be addressed. It is crucial that each government entity understands and seriously takes on
its role, with technical, managerial, and financial assistance from development partners, in
implementing the NSS to enable all Filipinos to enjoy comfortable and secure lives wherever
they choose to locate.

Supporting regional agglomeration. The NSS seeks to decongest the National Capital Region
(NCR) and direct growth to regional centers where high growth potentials have greater chances
of being realized sooner. In urban areas where population and enterprises concentrate, the
NSS will support agglomeration by making cities livable and efficient. Strategies will thus aim
to expand and improve social services, fast-track investments in transportation infrastructure,
and promote “smart city” principles in urban development.

The COVID-19 pandemic has also amplified other vulnerabilities of the current geospatial
structure of cities. We have seen the dangers of high population density, poor air quality,
and the lack of green spaces. During the lockdown, people in the cities have become food-
vulnerable, largely because of difficulty in access to food. These additional considerations will
be considered in enhancing the NSS.

34 | Updated Philippine Development Plan 2017-2022

Increasing connectivity. Increasing connectivity between production areas and market centers,
and providing the missing links for municipal/city, provincial, and national road networks
are some of the goals under the NSS. The approved National Transport Policy (NTP), which
envisions a Philippine transport system that is “safe, secure, reliable, efficient, integrated,
intermodal, affordable, cost-effective, environmentally sustainable, and people-oriented,” will
be an important instrument in achieving this goal. The subsequent formulation of a transport
system master plan will guide the rational development of an intermodal transport network in
the country.

Reducing vulnerability. Considering the climate change projections and threats of geologic
hazard events, as well as public health emergencies, the government will continue to invest
in disaster risk reduction (DRR), climate change adaptation (CCA) initiatives to reduce
vulnerability to multiple hazards. Recent disaster and risk information generated by science
agencies and the evaluation of COVID-19 Response will lay the groundwork for institutional
and community-level resilience for prospective optimality of result.

In the remaining years of the implementation of the updated PDP 2017-2022, the government
will continue to pursue the NSS to promote inclusive and sustainable growth, and enable
Filipinos to live comfortable lives wherever they choose to locate.

Economic and Demographic Trends

The population size and distribution determine These imply that certain locations tend to
the magnitude and structure of an economy. This generate more economic activities as they
can result in varying concentrations of production attract establishments and people looking for
and consumption in cities and municipalities, and opportunities. Thus, economic growth also tends
in their respective regions. For the Philippines, the to be concentrated in few locations, leaving other
noticeable trends are as follows: areas behind. Yet growth in urban areas can also
cause pollution and congestion, as seen in NCR
• Total population continues to increase. despite the slowdown in its population growth in
While the overall growth rate is decreasing, recent years.
population will remain high given the large
base population of the country.
Regional Shares
• NCR has the highest share in gross domestic
product (GDP), but its growth is slower
Accounting for 37 percent of GDP from 2010 to
compared to some other regions.
2018, NCR had the highest average regional share
• Most regions with larger population also in the national economy for the same period;
have larger gross regional domestic product CALABARZON had the second largest share with
(GRDP), with few exceptions. The cities or 16 percent, followed by Central Luzon with nine
group of cities within these regions contribute percent. These regions account for 62 percent
largely to the regions’ population size and
economic development.

Chapter 3 Overlay of Economic Growth, Demographic Trends, and Physical Characteristics | 35

of the GDP while the rest of Luzon, Visayas, and Caraga Region and NCR also grew higher than the
Mindanao contributed 11 percent, 12 percent, and 6.3 percent national average, at 6.8 percent and 6.4
15 percent, respectively. percent, respectively. The slowest growth rates were
observed in MIMAROPA (3.8%), Bangsamoro
Central Visayas, which posted an average growth Autonomous Region in Muslim Mindanao
rate of 7.8 percent from 2010 to 2018, was the (BARMM) (3.1 %), and Eastern Visayas (2.7%).
fastest-growing economy among the 17 regions.
This was followed by Central Luzon and Davao
Region which both grew at an average of 7.7 percent.

Figure 3.1 Average Regional Share in GDP, 2010-2018

Source: Philippine Statistics Authority (PSA)

36 | Updated Philippine Development Plan 2017-2022

Table 3.1 GRDP Growth Rate, 2010-2018

GRDP GROWTH RATE Average

REGION 2010-
2010 2011 2012 2013 2014 2015 2016 2017 2018 2018

Philippines 7.6 3.7 6.7 7.1 6.2 5.9 6.9 6.7 6.2 6.3

NCR 7.4 3.2 7.0 9.1 5.9 6.6 7.4 6.2 4.8 6.4

CAR 6.5 1.3 (2.9) 5.4 3.3 3.7 2.3 12.2 7.3 4.3

I (Ilocos Region) 6.8 2.5 7.2 7.0 6.4 5.0 8.5 5.8 6.5 6.2

II (Cagayan Valley) (0.8) 5.7 7.2 6.6 7.2 3.7 3.8 7.1 3.3 4.9

III (Central Luzon) 10.0 7.1 7.2 4.5 9.3 5.3 9.5 9.2 7.1 7.7

CALABARZON 11.7 1.6 7.0 6.6 5.1 5.9 4.8 6.7 7.3 6.3

MIMAROPA (0.3) 3.1 4.1 1.3 8.3 1.7 2.6 5.2 8.6 3.8

V (Bicol) 3.5 1.9 8.8 8.2 4.3 8.4 5.5 5.0 8.9 6.1

VI (Western Visayas) 4.5 6.2 7.0 3.4 5.2 8.3 5.9 8.6 6.1 6.1

VII (Central Visayas) 12.9 6.8 9.4 7.4 7.8 4.8 8.6 5.2 7.6 7.8

VIII (Eastern Visayas) 3.0 2.1 (6.8) 4.6 (2.4) 3.9 12.0 1.8 5.9 2.7

IX (Zamboanga
1.4 0.1 12.4 4.2 6.6 7.2 4.6 2.4 6.3 5.0
Peninsula)
X (Northern
6.5 5.8 6.5 5.4 7.1 5.5 7.5 5.8 7.0 6.3
Mindanao)

XI (Davao Region) 5.6 3.7 7.0 6.7 9.3 7.9 9.5 10.7 8.6 7.7

XII (SOCCSKSARGEN) 2.2 5.3 7.3 8.4 6.2 3.3 4.9 8.3 6.9 5.9

Caraga 10.7 8.5 11.5 8.2 9.4 4.2 2.0 3.6 3.2 6.8

BARMM 6.7 (0.3) 0.0 3.8 3.0 (0.8) 0.4 7.5 7.2 3.1

Source: PSA

Real Per capita GRDP BARMM, Bicol Region and Caraga Region posted
the lowest real per capita GRDP in 2018 with PHP
29,369 and PHP 36,651, respectively. The three
NCR had the highest per capita GRDP in 2018 at
lowest-ranking regions have consistently fared
PHP 253,893, which was nearly thrice the national
poorly in terms of per capita GRDP. This indicates
average of PHP 86,370. It increased by 8 percent
that inequality in per capita GRDP across regions
from PHP 232,739 in 2016. CALABARZON and
persists over time. As such, the government has
CAR have also posted per capita GRDP higher than
been increasing efforts in pushing for policies that
the national average, with PHP 104,708 and PHP
will improve the socioeconomic conditions in
87,722, respectively. On the other hand, BARMM
lagging regions.
had the lowest real per capita GRDP among the
regions in 2018 with only PHP 14,657, a slight
increase from 2016 (PHP 13,366). Following

Chapter 3 Overlay of Economic Growth, Demographic Trends, and Physical Characteristics | 37

Table 3.2 Per capita GRDP, 2010-2018

REGION 2010 2011 2012 2013 2014 2015 2016 2017 2018

NCR 171,442 173,975 181,748 195,070 202,904 218,987 232,739 244,589 253,893

CAR 74,107 73,945 70,156 72,759 73,971 75,048 75,401 83,153 87,722

I 37,819 38,287 40,325 42,588 44,894 46,180 49,474 51,703 54,434

II 30,851 32,167 33,816 35,462 37,645 38,436 39,344 41,571 42,387

III 50,207 52,766 55,163 56,528 60,670 63,641 68,634 73,863 78,016

CALABARZON 79,699 78,966 81,562 84,687 86,644 92,184 94,811 99,346 104,708

MIMAROPA 37,002 37,540 38,239 38,138 40,706 39,575 39,837 41,069 43,715

V 21,004 21,112 22,502 24,005 24,719 25,770 26,686 27,487 29,369

VI 31,927 33,499 35,139 35,874 37,289 39,653 41,420 44,368 46,440

VII 49,966 52,528 56,061 59,211 62,743 64,846 69,322 71,743 76,024

VIII 36,694 37,006 33,850 34,952 33,771 33,771 37,144 37,121 38,598

IX 34,245 33,726 37,077 37,991 39,887 41,873 43,043 43,326 45,265

X 48,940 50,838 52,842 54,678 57,609 60,290 63,771 66,408 70,000

XI 48,487 49,431 51,657 54,188 58,256 61,335 65,913 71,621 76,378

XII 36,688 37,813 39,417 41,814 43,493 44,178 45,459 48,277 50,644

Caraga 26,504 28,362 30,985 33,037 35,672 35,553 35,679 36,235 36,651

BARMM 14,588 14,348 14,052 14,380 14,613 13,646 13,366 14,012 14,657

Source: PSA

Human Development Index region in 2018. Using the regional estimates based
on 2015 and 2017 data, NCR recorded the highest
HDI in 2015 with 0.750 and even improving in 2017
The Philippines’ Human Development Index (HDI), with 0.759. Other regions with HDI values higher
a measure of average achievement in key dimensions than the country’s HDI were CALABARZON
of human development (health, education, and (0.724); CAR (0.722); Central Luzon (0.712); and
standard of living), increased from 0.693 in 2015 Ilocos Region (0.705). BARMM had the lowest
to 0.712 in 2018. The Philippines ranked 106th out HDI value at 0.583. These results point to the need
of 189 countries, an improvement from its rank of to improve and equalize access to basic services to
115th in 2015. There is no available HDI estimates by improve the quality of life across regions.

38 | Updated Philippine Development Plan 2017-2022

Figure 3.2 Population by Region, 2015

Source: PSA

Chapter 3 Overlay of Economic Growth, Demographic Trends, and Physical Characteristics | 39

Population Trends (7.5 million). CAR was the least populated region
with a total population of 1.7 million. Other less
populated regions were MIMAROPA (3 million)
Based on the 2015 Census of Population, the and Caraga (2.6 million).
country’s population was 100,979,303. This is
expected to increase to 115 million by 2025 Projections show that CALABARZON will still have
despite the projected slowdown in average annual the largest population with 17.5 million in 2025,
population growth rate from 1.73 percent (2010- followed by NCR (14.5 million); and Central Luzon
2015) to 1.41 percent (2020-2025). By region, (13.2 million) respectively. CAR will remain as the
CALABARZON had the largest population with least populated region with 1.9 million by 2025.
14.4 million, followed by NCR (12.9 million);
Central Luzon (11.2 million); and Western Visayas

Figure 3.3 Regional Projected Population, 2015-2025

Source: PSA

Population Growth of NCR had the largest population with 12.9 million
among the metropolitan areas in 2015, followed
Metropolitan Areas and by Metro Cebu (2.9 million); Metro Davao (2.5
Major Cities million); and Metro Cagayan de Oro (1.4 million).

40 | Updated Philippine Development Plan 2017-2022

Figure 3.4 Population of Metropolitan Areas: 2000, 2010, and 2015

Source: PSA

In the same year, cities with the highest population in Outside of NCR, Davao City (1.63 million); Cebu
NCR were Quezon City (2.94 million); Manila City City (922,611); and Zamboanga City (861,799) were
(1.78 million); and Caloocan City (1.58 million). the most populated cities in the country.

Chapter 3 Overlay of Economic Growth, Demographic Trends, and Physical Characteristics | 41

Figure 3.5 Population of Major Cities: 2000, 2010, 2015

Source: PSA

With few exceptions, more populated regions also Given these economic and population trends, it
have larger shares in GDP and real per capita GRDP, is important to manage the development process
and have higher HDI value. This can be observed such that access to social services and growth
in NCR and its neighboring regions that have the opportunities will be more equal across areas and
highest population and economic development at that the economy and the people are resilient.
the same time.

The National Spatial Strategy

The NSS aims to contribute to inclusive growth shows the areas where growth has been taking place
by improving physical connectivity and providing and the characteristics of these growth centers.
equal access to quality social services across regions. This guides the identification and development
It also seeks to decongest NCR and direct growth of strategic solutions such as the location of
to key centers throughout the country where the transportation linkages, high-quality urban
benefit of agglomeration can have greater potentials services, as well as social development programs to
of being realized. An overlay of the geographic improve the quality of life of Filipinos.
characteristics, population, and economic growth

42 | Updated Philippine Development Plan 2017-2022

Implementing the NSS requires cooperation across Figure 3.6 Major Urban Centers
national and local governments to ensure coherence
of development plans and efforts. The NSS also
provides a basis for identifying more specific
projects that can serve as the catchment and market
or service areas of the various centers. It can then be
a reference for sectoral plans, spatial development
frameworks of Regional Development Plans,
provincial development and physical framework
plans, and comprehensive land use plans of cities
and municipalities.

Network of Settlements

The country has a three-tiered network of

settlements: (a) metropolitan centers; (b) regional
centers; and (c) sub-regional centers. These centers
form an efficient network of settlements with
distinct functional roles contributing to the flow of
economic activities within the network.

Metropolitan Centers

Metropolitan centers provide higher forms

of economic services and facilities, including
innovation and advanced services, culture and
tourism, education and research, transportation and of the NCR, and, in case of a disaster, a recovery
trade, manufacturing, and technology development. center and back-up administrative center. It has the
locational advantage of being at the convergence
Metro Manila, Metro Cebu, and Metro Davao are points of NLEX, SCTEX, GSO road, the Manila-
the three major metropolitan centers in the country North Road, and the new North-South Commuter
that serve as centers of commercial, financial, and Railway.
administrative activities. Metro Manila continues
to function as the country’s premier metropolitan Second to NCR is Metro Cebu which serves as the
center –the seat of the national administration and natural economic, commercial, and logistics center
the center of commerce and trade. Metro Manila’s for the Visayas. The Metro Cebu Development
influence to its adjacent cities and municipalities and Coordination Board has completed its road
has become more evident with new and important map study for urban development highlighting
developments in the past three years. Notable of competitiveness, mobility, livability and
these is the New Clark City in Central Luzon, which metropolitan management. It has also identified
is proposed to be a major business district with its priority project packages such as the Mega
complete facilities for offices, housing, and sports Cebu expressway, Cebu bus rapid transit, the new
and leisure. Moreover, EO 119 dated 17 November Cebu international container port, the third Cebu-
2020 mandated the establishment of the national Mactan bridge, and coastal road.
government administrative center in Capas, Tarlac
to serve as an integrated government center outside

Chapter 3 Overlay of Economic Growth, Demographic Trends, and Physical Characteristics | 43

The third metropolitan center is Metro Davao, Regional Centers
which is a major international gateway and serves
as Mindanao’s premier commercial hub and center
for education and health services. This role will be Regional centers serve as regional markets and
enhanced by the construction of the first phase of service centers to several provinces. Markets can
the Mindanao Railway project in the first quarter support a range of services and investments and
of 2021. Furthermore, the institutionalization of have direct linkages to metropolitan centers. They
the Metro Davao Development Authority will host government administrative centers, industrial
strengthen coordination among the component and commercial areas, and transportation and
cities and municipalities in the planning, tourism hubs.
implementation and monitoring of priority projects.

By 2025, Metro Cagayan de Oro is expected to be the Sub-regional Centers

fourth metropolitan center. It currently functions
as a major gateway and transshipment hub and a Sub-regional centers connect to, and serve as
key educational center in Northern Mindanao with service centers of, smaller provincial and local
potential growth in the banana industry, rubber, centers. Considering the network of settlements
bamboo, cacao, coco coir, coffee, agribusiness, and listed below, the PDP 2017-2022 will continue to
tourism. pursue regional agglomeration, connectivity, and
vulnerability reduction.

Table 3.3. Network of Settlements

NETWORK REGION/PROVINCE/CITY/MUNICIPALITY

• NCR • By 2025, Metro Cagayan De Oro (CDO City, Jasaan, Villanueva,

• Metro Cebu Tagoloan, Claveria, Manolo Fortich, Opol, El Salvador, Alubijid,
Metropolitan Centers
• Metro Davao Laguindingan, Gitagum, Libertad, Initao)

• Laoag City • Malolos City • Tagbilaran City

• San Fernando City • Dasmarinas City • Tacloban City
• Dagupan City • Antipolo City • Ormoc City
• Tuguegarao City • Calamba City • Zamboanga City
• Santiago City • Batangas City • General Santos City
• Baguio City-La Trinidad- • Lucena City • Butuan City
Itogon-Sablan-Tuba-Tublay • Calapan City • Cotabato City
• Eastern Kalinga (Tabuk City- • Puerto Princesa City • Dipolog City
Pinukpuk-Rizal) • Legazpi City • Jolo
Regional Centers
• Cabanatuan City • Naga City (Camarines Sur) • Surigao City
• Tarlac City • Iloilo (Iloilo City -Pavia- Oton- • Pagadian City
• Subic-Olongapo City Leganes, Santa Barbara- • Koronadal City
• Balanga City Cabatuan-San Miguel ) • Tagum City
• Clark (Angeles City-San • Bacolod (Bacolod City-Bago
Fernando City-Mabalacat City- City-Talisay City- Silay City-
New Clark City) Murcia)
• Baliuag

• Alfonso Lista (Potia) • Flora • Pidigan

• Banaue • Kiangan • Pudtol
• Bangued • La Paz (Abra) • San Jose City
• Bauko • Lamut • San Jose del Monte City
Subregional Centers
• Besao • Langiden • San Miguel (Bulacan)
• Bontoc (Mountain Province) • Luna (Apayao) • Santa Maria (Bulacan)
• Danglas • Peñarrubia • Bacoor City

44 | Updated Philippine Development Plan 2017-2022

 NETWORK REGION/PROVINCE/CITY/MUNICIPALITY

• Baras (Rizal) • Ilagan City • Roxas City

• Biñan City • Santa Ana (Cagayan) • Malay
• Cabuyao City • Arayat • San Carlos City (Negros
• Cainta • Capas Occidental)
• Gen. Mariano Alvarez • Concepcion (Tarlac) • Malaybalay City
• General Trias City • Hagonoy (Bulacan) • Valencia City
• Imus City • Lubao • Digos City
• Trese Martires City • Mabalacat City • Polomolok
• Lipa City • Marilao • Midsayap
• Nasugbu • Mariveles • Mati City
• Santo Tomas (Batangas) • Mexico • Kidapawan City
• Kabankalan City • Meycauayan City • Gingoog City
• Estancia • San Fernando City • Bislig City
• Dumangas (Pampanga) • Tandag City
• San Jose (Antique) • San Ildefonso (Bulacan) • Tacurong City
• Miag-ao • Binangonan (Rizal) • Bongao
• Catbalogan City • Rodriguez (Montalban) • Parang (Maguindanao)
• Calbayog City • San Mateo (Rizal) • San Francisco (Agusan del
• Jordan • San Pablo City Sur)
Subregional Centers • Kalibo • San Pedro City • Tubod (Lanao del Norte)
• Dumaguete City • Santa Rosa City • Maramag
• Bogo City • Sariaya • Ipil
• Toledo City • Silang • Glan (Saranggani)
• Tubigon • Tanauan City • Malita
• Iligan City • Tanza • Laguindingan
• Passi City • Taytay (Rizal) • Isabela City - Lamitan
• Panabo City • Boac • Aurora (Zamboanga del Sur)
• Marawi City • Romblon (Capital) • Bayog
• Ozamiz City • San Jose (Occi.Min) • Buug
• Sadanga • Daet • Dumalinao
• San Isidro (Abra) • Iriga City • Dumingag
• Santa Marcela • Ligao City • Kabasalan
• Tayum • Masbate City • Mahayag
• Tubo • Matnog • Margosatubig
• Alaminos City • Pili • Molave
• Urdaneta City • Sorsogon City • Sindangan
• Vigan City • Tabaco City
• Cauayan City • Virac

Functions of Centers San Fernando City (Pampanga), Calapan

City, Tacloban City, Iloilo City, Butuan City,
Pagadian City, and Koronadal City
The metropolitan centers of NCR, Metro Cebu, and
Metro Davao provide domestic and international • International gateways (examples): Iloilo City,
services and facilities. Meanwhile, regional and sub- Bacolod City, Metro Clark Area, Zamboanga
regional centers have distinct sizes, services, natural City, Legazpi City, Laoag City, Puerto Princesa
physical features, and strategic locations that enable City, and General Santos City
them to host certain activities or functions.
• Tourism hubs (examples): Legazpi City, Naga
Regional Centers City, Calapan City, Puerto Princesa City, Laoag
City, Tagbilaran City, and Surigao City
• Regional administrative centers: Baguio
City, Tuguegarao City, San Fernando City
(La Union), Calamba City, Legazpi City,

Chapter 3 Overlay of Economic Growth, Demographic Trends, and Physical Characteristics | 45

Sub-regional Centers traffic, enhance competitiveness, improve safety
and disaster response, and contribute to sustainable
• Tourism hub (examples): Alaminos City, urban development of the areas covered.
Matnog, Malay, Kalibo, Jordan, and Tubigon
Other master plans are now being formulated for
• Agri-industrial centers (examples): Midsayap, 11 cities which will guide the preparation and
Mati, Cauayan City, Polomolok, Kidapawan implementation of programs and projects for
City, Bislig, Tacurong City, and Calbayog City sustainable infrastructure development (see Chapter
19). These plans also adopt the smart city principle
• Industrial centers (examples): Biñan City, Sta. in urban mobility, natural and built environment,
Rosa City, Lipa City, Tanauan City, San Carlos sustainable energy, and economic competitiveness.
City, Iligan City, Subic, and Mariveles The implementation of these plans will require
retooling of current government institutions and
• Higher education (examples): Marawi City
advancements in planning approaches and urban
and Dumaguete City
management practices.
These centers share the same characteristics as
Pursue sustainable rural development and ensure
some of the existing economic zones identified in
better access to opportunities. The development
the Special Economic Zone Act and the tourism
gap between urban and rural areas manifests in the
circuits identified in tourism plans.
lack of economic opportunities and access to social
services and facilities including health, education,
and water and sanitation in the countryside. These
Regional Agglomeration are issues that the government needs to address
to ensure that no one is left behind, whether they
Regional agglomeration aims to improve urban live in urban or rural areas. Balancing regional
efficiencies and maximize the benefits of scale and development entails the transformation of rural
agglomeration economies. It recognizes the role of communities into productive agri-industrial or
cities as engines of growth and sites of innovation. tourism areas with improved delivery of social
It will build on the current trends of growth such services including education, health, and housing
as the faster growth in some regions. The spatial (see Chapters 8, 9, 10, and 12).
strategy aims to manage the growth of key centers
in the country for them to function more efficiently. With this in view, the Balik Probinsya, Bagong Pag-
asa (BP2) program was created through Executive
Manage the growth process through an integrated Order 114, s 2020 to bring about a more equitable
approach to urban planning. Cities face various distribution of wealth, resources, and opportunities
urban challenges such as congestion, pollution to the countryside. It involves the convergence
and waste, lack of green spaces, and increasing of national government and LGU programs and
demand for social services including housing, projects that will not merely bring back people to the
health, sanitation, and education. Addressing these provinces, but promote sustainable communities in
requires an integrated approach to urban planning the countryside.
and development. To this end, master plans have
been formulated to address urban inefficiencies Linking rural areas to urban areas physically
and guide sustainable urban development. The through transportation systems or virtually through
Roadmap for Transport Infrastructure Development information and communications technology (ICT)
for Metro Manila and its Surrounding Areas and will enable people in rural areas to gain more access
the Urban Transport Master Plan of Metro Cebu to alternative opportunities for employment, and
and the Davao City Infrastructure Development bigger markets for their products. Moreover, better
Plan and Capacity Building Project (IM4Davao) connectivity will make it easier for people in rural
in Metro Davao are being implemented to reduce areas to have access to higher levels of services such

46 | Updated Philippine Development Plan 2017-2022

as universities and specialized health institutions by promoting healthier lifestyles, environmental
which may not be feasible in smaller communities. consciousness, and sustainable urban design. The
government will pursue and apply “smart city”
Increase investments and spending efficiency to principles such as urban mobility to include cycling
expand and improve the quality of social services lanes and walking paths, greener city, sustainable
to meet growing demand. Growth centers attract energy, public safety, and economic competitiveness
people seeking better opportunities and access to achieve sustainable urban development. This will
to amenities. To meet growing demands that require new or higher level technical, executional,
come with continuous increase in population, the and financial management skills among national
government will expand and improve facilities and agencies and local governments. Capacity building
provide additional human resources in the sectors will therefore be encouraged through partnerships
of housing, health, sanitation, and education (see with academic and training institutions, private
Chapters 10, 12, and Chapter 19). As centers of sector, and international development agencies.
consumption, cities are also the main producers of
waste, hence, the need to promote waste reduction Improve social service delivery of local
and management. government units (LGUs). LGUs need to be able
to provide access to adequate and high-quality
Fast-track investment in transport infrastructure social services, set up appropriate facilities, and
and traffic management system to reduce institute waste management schemes. The national
congestion and ensure mobility. The government government and development partners will be able
will continue to fast-track investment in to provide technical and financial assistance to
transportation infrastructure to reduce traffic them. Collaboration and complementation between
congestion and shorten distance and travel times national and local governments will be crucial to
between business and industrial centers, tourism ensure coherence of development plans so that
areas, services, and residential areas. The immediate there will be no gaps in service delivery.
remedial measures will be the enforcement of traffic
laws, traffic management measures, and transport
demand management schemes. Application of Connectivity
intelligent transportation systems will also be
explored to help manage traffic flow in growth As agglomeration takes place, socioeconomic
centers efficiently, minimize accidents, and provide inequalities across space can be reduced through
transport and traffic information to passengers and improved inter-connection of settlement areas.
decision-makers (see Chapter 19). Rather than forcing a uniform dispersal of
development which can create inefficiencies, the
Adopt “smart city” principles and increase strategy is to establish better transport networks
technical, managerial, and financial capability that will enable urban centers with high growth
of national and local institutions to implement potentials to further expand growth while providing
such. Improved urban environment and quality better access to opportunities to lagging areas.
of life will be pursued through urban renewal With more efficient network of settlements, more
and urban redevelopment projects. The current opportunities for production and employment are
pandemic has brought greater consciousness on expected to be generated, thus increasing family
urban development designs and housing standards, incomes and savings for investment and growth,
considering that the most number of cases are in and reducing poverty. Beyond physical connectivity
cities with higher population densities and where through transport systems, investments in
physical distancing is a challenge. This does not telecommunications, technology, and innovation
necessarily invalidate the agglomeration strategy as will ensure that even lagging or conflict-affected
co-location promotes efficiency in service delivery, areas will have access to services and employment
land use, and urban development. However, the opportunities.
aspect of livability will be given more emphasis

Chapter 3 Overlay of Economic Growth, Demographic Trends, and Physical Characteristics | 47

Flesh out and swiftly implement policies and Develop an efficient logistics system. The
plans for promoting connectivity and guiding COVID-19 pandemic has brought forth the
infrastructure development in the country. The importance of efficient logistics system, particularly
NEDA Board has already approved the NTP which in ensuring undisrupted delivery of food and
will guide the rational development of an intermodal essential goods. Efficient transport systems are also
transport network, promote sub-regional critical in times of crises. Moreover, concerned
cooperation on multimodal transport system, and agencies such as the Department of Agriculture
create a transport database. Harmonized efforts of and the Department of Trade and Industry will
various government agencies and instrumentalities collaborate in mapping out supply chains in their
will be key in ensuring that such policies will respective sectors and identify bottlenecks and
be properly implemented. Timely completion the corresponding measures so that the goods
of transport infrastructure projects under the will be delivered to their destinations on time (see
BBB program will be pursued by addressing Chapter 9). Private logistics companies can also
implementation bottlenecks under the new normal utilize ICT to monitor incidents that can delay
(see Chapter 19). or disrupt the movement of raw materials and
manufactured products, including medicines and
Identify the remaining missing links in local and medical equipment.
national road networks. An integrated approach to
transport planning and project implementation will Increase investment in ICT infrastructure.
be pursued through closer engagement between Reliable ICT infrastructure has become vital
national transport agencies and LGUs. With their in ensuring continued government and private
expertise, the Department of Public Works and sector services particularly as physical distancing
Highways and the Department of Transportation and quarantines have prevented on-site activities
can provide assistance in coming up with their local (see Chapter 19). Hence, connectivity under the new
transport and traffic management programs that normal will rely more on digital infrastructure to
are aligned with national priorities (see Chapter support online business and personal transactions,
19). These can then be integrated in the spatial as well as online education and health services
and development plans of LGUs. For hazard- (see Chapters 9 and 10). Flexible work arrangements
prone areas, road networks for redundancy have such as work from home and compressed work
to be constructed to establish alternative routes for weeks in government and private sector offer relief
disaster response and evacuation. to the congested transport networks but will also
require more ICT investments for faster digital
Ensure the accessibility, availability, affordability, connectivity.
convenience, and reliability of public transport
(e.g., railway, bus, etc.). This will involve
rationalization of the public transport design or Reduction of Vulnerability
transport routes to serve new and emerging origins
and destinations. Public transport terminals that The NSS seeks to make vulnerability reduction
integrate different modes of public transportation an integral part of development. This involves
will be established in strategic locations. instituting prevention and mitigation measures to
The nautical highway of the country will be reduce the impact of climate change and disasters.
strengthened through the improvement of existing These measures include redundancy routes to
RORO ports and the establishment of new ones. provide access to areas affected by disasters.
Improvements and expansion of airport facilities
across the country will also be continued to meet Due to its geographical location, the country is
the demand and improve the quality of air travel susceptible to geologic and hydrometeorological
(see Chapter 19). hazards. Disaster risk is also aggravated by
uncontrolled development particularly within
ecologically-sensitive and hazard-prone areas.

48 | Updated Philippine Development Plan 2017-2022

Based on the 2019 WorldRiskIndex, the Philippines Given the significant accomplishments of the
ranked ninth among countries with the highest national government in generating scientific
disaster risk, a slight improvement compared to information on hazards and disaster risks, the
2018 where the country ranked third. This can continuous data build-up and updating of relevant
be attributed to the country’s continuous effort to databases and platforms of DOST and other
strengthen its capacity to prepare for and mitigate agencies will be pursued and supported. Disaster
the negative effects of disasters and climate change. risk assessments will be undertaken, utilizing
more recent information on hazards and elements
Despite this gain, the country still needs to maintain exposed to it. These will be used to update local
substantial investments in vulnerability reduction development and sectoral plans. These updated
initiatives given the level of risk. According to the assessment results can also guide adjustments or
latest Philippine Atmospheric, Geophysical and recalibrations of DRR and CCA interventions.
Astronomical Services Administration (PAGASA)
Climate Change projections, we can expect (a) LGUs and citizens must be able to access, appreciate,
continuous warming at a rate of 0.1˚C per decade; and make full use of these information technologies
(b) increasing trends in annual rainfall and seasonal for disaster preparedness and mitigation actions.
rainfall in many parts of the country associated In this regard, LGUs will be trained and assisted
with extreme rainfall events; (c) minimal increase using these for planning and identifying, designing,
in the frequency of very strong tropical cyclones financing, and implementing the initiatives to
exceeding 170 kph; and (d) a 20cm increase in sea increase their resiliency. Inter-LGU cooperation
level rise by the end of the 21st century. will also be pursued to address the impacts of
natural hazards that affect multiple municipalities,
Mainstream DRR and CCA in identified growth cities, and provinces.
centers, considering the expected increase in
population and economic activities in these areas. Build capacities to mitigate and respond to
Locations of new development projects and urban disease outbreaks and pandemics. Past efforts on
expansions will be guided by hazard maps and disaster risk reduction and management (DRRM)
information to minimize exposure to hazards. This have focused on geologic and hydrometeorological
will also entail ensuring that alternate or redundant hazards. COVID-19 has exposed the need to build
access are in place to prevent isolation during the capacities of national and local governments
disasters, and ensure that there are properly placed to prepare for and respond to a disease outbreak
and designed evacuation sites. of such a magnitude of pandemic. The traditional
DRRM and crisis management frameworks will
Promote extensive use of recently developed be reviewed and updated to ensure the country’s
information technologies to manage disaster readiness to prepare, mitigate, and respond to
risks. The Department of Science and Technology public health emergencies, given also the possibility
(DOST)–Philippine Institute of Volcanology that disease outbreaks can occur simultaneously
and Seismology is currently implementing its with natural hazards such as typhoons or floods.
GeoRiskPH program. The HazardHunter application Disaster management agencies such as the Office
developed under this initiative can quickly generate of Civil Defense and LGUs will be adequately
an initial geologic and hydrometeorological hazards provided with equipment and medical supplies; and
assessment for specific locations. Its GeoMapper evacuation centers and quarantine facilities that will
feature, which stores hazard and disaster exposure be designed and constructed to meet the varying
information, is intended to serve as the central requirements of such hazard events.
source of information for accurate disaster risk
assessments, and its GeoAnalytics application
performs hazards and risk assessment that provides
a visualization through maps and charts.

Chapter 3 Overlay of Economic Growth, Demographic Trends, and Physical Characteristics | 49

Providing the spatial directions to the Balik
Probinsya Bagong Pag-asa (BP2) Program
The BP2 program was established in May 2020 The NSS will guide the implementation of the BP2
through Executive Order No. 114. The program program by providing the trends in settlements
aims to promote balanced regional development development and the roles of various urban centers in
and equitable distribution of wealth, resources, the country. These will inform more detailed planning
and opportunities. This involves complementary and analysis of BP2 interventions such as the possible
strategies of enabling economic growth in areas with locations of agri-industrial areas, housing projects
high potentials, and providing better opportunities to and infrastructure facilities that will address the
the countryside, thereby achieving inclusive growth. immediate needs of communities, the connectivity
among urban centers and production centers and
The program, which will have short-, medium- and other critical spatial functions that will determine
long-term components, will provide the mechanism comparative advantages of specific areas.
for convergence among regional agencies and
local governments in investing in sustainable rural
development projects. Specifically, the BP2 program
is expected to evolve from government-assisted
relocation to voluntary relocation of people from
congested urban communities to more progressive
rural communities. This can be achieved through
empowering local industries, enhancing agricultural
productivity, providing quality and efficient social
services and upgrading infrastructures.

50 | Updated Philippine Development Plan 2017-2022

04
Philippine
Development Plan
2017-2022 Overall
Framework
CHAPTER 4

Philippine Development Plan

2017-2022 Overall Framework
The Philippine Development Plan (PDP) 2017-2022 is the first of four medium-term plans
geared towards the realization of AmBisyon Natin 2040, the collective long-term vision and
aspirations of the Filipino people for a matatag, maginhawa, at panatag na buhay para sa
lahat (strongly-rooted, comfortable, and secure life for all). In the first three years of PDP
implementation, critical reforms were put in place to ensure that development is steered
to enable all Filipinos to attain their Ambisyon and that economic growth is inclusive and
sustainable to improve quality of life. At the midterm of the Plan implementation, the world
experienced the COVID-19 pandemic which will have an indelible effect on the socioeconomic
development of the country. The PDP has thus been updated to build on the gains in recent
years and consider the imperatives for recovery and adapting to the new and better normal
state of affairs. Moving forward, the health and resiliency of the Filipinos will be prioritized as
the foundation for achieving AmBisyon Natin 2040.

Updated Headline Targets

Core indicators and corresponding headline targets targets for 2020 were maintained. It is expected
were identified to achieve the desired outcomes for the that a number of these targets will not be achieved
plan period. Chapter 1 presented the accomplishment considering major disruptions in the programs,
per core indicator vis-à-vis targets set during the projects and activities (PPAs) of the government and
preparation of the PDP. As discussed therein, the private sector. Adaptive planning was done to
accomplishments from 2017 to 2019 have been mixed prioritize urgent requirements to address the adverse
– in most cases, targets were achieved in certain impact of the pandemic.
years but fell short in others. In general, substantial
accomplishments have been achieved towards a more The Inter-Agency Task Force for the Management
inclusive growth, a high-trust and resilient society, of Emerging Infectious Diseases (IATF) created
and a globally-competitive knowledge economy. the Technical Working Group on Anticipatory and
During the first half of the plan period, key reforms Forward Planning (TWG-AFP) to assess the impacts
have also been instituted which are expected to bear of the pandemic and the resulting community
fruit in the succeeding years. quarantine on various sectors of society and
provide recommendations on rebuilding national
The immediate socioeconomic impact of the confidence and adjust to the new normal. The
pandemic in 2020 is substantial. This will most resulting “We Recover As One” report of the TWG-
likely spill over to 2021 and 2022. Taking this into AFP identified the immediate and critical PPAs of
consideration, some targets for 2021 and 2022 have the different agencies in order to cushion the impact
been revised downwards. Since the updating of of the pandemic on the population, particularly
the PDP happened in the second half of 2020, the the vulnerable sectors. It should also be noted that

Chapter 4 Philippine Development Plan 2017-2022 Overall Framework | 53

budgets of most government agencies were reduced protection requirements for the most affected sectors
in order to fund the immediate health and social of the population.

Table 4.1 PDP 2017-2022 Core Indicators and Headline Targets

BASELINE PLAN TARGETS

INDICATOR
VALUE (YEAR) 2017 2018 2019 20202/ 2021 2022

GDP (growth rates) 7.1

6.5- 7.5 7.0-8.0 7.0-8.0 7.0-8.0 6.5-7.5 6.5-7.5
sustained (2016)r

GNI per capita 4.5

4.5 5.0 5.0 5.0 5.0-6.0 5.0-6.0
(growth rates) increased (2015)

Poverty incidence (% of 23.5

- 17.3-19.3 - - 15.5-17.5 -
population) reduced1/ (2015)r

Subsistence Incidence (%) 9.1

- 6.8 - - 5.0-7.0 -
reduced1/ (2015)r

Food inflation (%) 1.7

2.0-4.0 2.0-4.0 2.0-4.0 2.0-4.0 2.0-4.0 2.0-4.0
kept stable (2016)a

0.701
HDI improved Increasing Increasing Increasing N/A Increasing N/A
(2015)r

Unemployment rate (%) 5.4

5.1-5.4 4.7-5.3 4.3-5.3 3.8-5.2 7.0-9.0 7.0-9.0
decreased (2016)r

Employment generated NA 900,000- 900,000-1.1 900,000-1.1 900,000-1.1

2.4-2.8 Mn 1.0-1.2 Mn
increased (count) (2016) 1.1Mn Mn Mn Mn

Youth unemployment rate 11.5

11.0 10.4 9.8 9.2 14.5-16.5 20.5-22.5
(%) decreased (October 2016)

Underemployment rate
19.7
in areas outside NCR (%) 18.3-20.3 17.8-19.8 17.4-19.4 16.9-18.9 16.0-18.0 15.5-17.5
(2016)
decreased

74 out of 128
GII (rank) improved Increasing Increasing Increasing Increasing Increasing Top one-third
economies (2016)

Note: r – revised; a – adjusted *original target set in 2016 will be retained;

1/ No target/data since FIES is conducted every three years. The next FIES will be conducted in 2021.
2/The 2020 PDP targets set in 2016 will be retained

The medium-term goal remains the same: by the to achieving this aspiration. The following are the
end of 2022, more Filipinos will be closer to their headline targets over the remaining plan period.
AmBisyon of living a matatag, maginhawa, at panatag Economic growth. With an expected contraction in
na buhay. The health and resilience of the Filipinos will 2020, economic growth in 2021 and 2022 is expected
be prioritized in the medium term as the foundation to be slightly lower than the initial target. For 2021

54 | Updated Philippine Development Plan 2017-2022

and 2022, growth in terms of Gross Domestic Product Unemployment. There has been a sustained
(GDP) is expected to be within 6.5 to 7.5 percent. The improvement in employment levels from 2017 to
goal of reaching upper middle-income status for the 2019. The increase in unemployment in 2020 due
country will most likely be achieved by 2022 or earlier. to the pandemic is expected to gradually recover
Gross National Income (GNI) per capita targets are beginning late 2020 and on to 2021. In addition, the
5.0 to 6.0 percent in 2021 and 2022. labor force will substantially increase in 2022 as the
first batch of K to 12 graduates will be graduating
Poverty incidence. The substantial decline in overall from college and are expected to join the labor force.
poverty from 2015 to 2018 will not be sustained over Hence unemployment targets in 2021 and 2022 are
the period 2018 to 20211 given the impact of the revised to 7 to 9 percent. This implies that 2.4 to 2.8
COVID-19 pandemic. Hence, the target for 2021 million jobs in 2021 and 1.0 to 1.2 million jobs in
is 15.5 to 17.5 percent, compared to 16.7 percent in 2022 are expected to be created. As the bulk of the
2018. While the next set of poverty estimates will labor force are among the younger age group, youth
be in 2023, the initial target of 14 percent by 2022 is unemployment is expected to increase to 14.5 to 16.5
still achievable. The same can be said for subsistence percent in 2021 and 20.5 to 22.5 percent in 2022. On
poverty, with a substantial decline in the proportion the other hand, the target for underemployment in
of subsistence poor individuals from 9.1 percent in areas outside National Capital Region (NCR) is 16 to
2015 to 5.2 percent in 2018. The revised target for 18 percent in 2012 and 15.5 to 17.5 percent in 2022.
2021 is 5 to 7 percent, which is within the 2022 target
of 5 percent. Food inflation will be sustained at 2 to 4 Innovative society. The Philippines’ rank in terms
percent in 2021 and 2022. of the Global Innovation Index (GII) significantly
improved in 2019, ranking 54th out of 129 economies;
Human development. The human development then further up to 50th rank out of 133 countries in
index (HDI) of the Philippines has gradually increased 2020. This is expected to increase with a target for the
from 2015 to 2019. The trend is expected to continue country to be among the top one-third (40th to 42nd
until 2022. rank) by 2022.

1
  The Family Income and Expenditure Survey (FIES) used to estimate poverty will be conducted in 2021 and will be done every two years
thereafter.

Chapter 4 Philippine Development Plan 2017-2022 Overall Framework | 55

Strategic Framework
The PDP 2017-2022 strategic framework was a high-trust society); Pagbabago (transforming
updated to align it with the imperatives for recovery towards equity and resiliency); and Patuloy na
and the new and better normal within the overall Pag-unlad (increasing growth potential). There
goal of a healthy and resilient Philippines. The are crosscutting strategies to support the other
strategies to achieve the abovementioned targets fall interventions, and bedrock strategies to provide a
under the three major pillars of Malasakit (building solid foundation for all strategies to work.

Figure 4.1 Updated Philippine Development Plan 2017-2022 Strategic Framework

56 | Updated Philippine Development Plan 2017-2022

Strategies
Promoting Philippine Culture and Values
For Malasakit, the aim is to towards Bayanihan (Chapter 7) highlights
regain the people’s trust in increasing awareness and promotes the value of
public institutions and cultivate the country’s cultural diversity and shared heritage
among Filipinos. This is a new chapter in the PDP,
trust among Filipinos. and this recognition has provided a venue for the
culture sector to take stock of challenges and pursue
Ensuring Responsive, People-centered, strategies to address them. The government’s greater
Technology-enabled, and Clean Governance awareness and recognition of the role of culture
(Chapter 5) focuses on building transparent, in the country’s socioeconomic development
accountable, and effective institutions resulting in prompted significant foundational efforts in the
efficient delivery of public services and high public sector. Moving forward, the government will
trust. Over the past three years, major reforms in ensure that the initial gains will be sustained to
the governance sector increased the access to and eventually establish sustainable mechanisms for
quality of frontline services. The next step is to cultural development from the national to local
expedite the implementation of these laws. In light levels. The Filipino spirit of bayanihan will be
of the COVID-19 pandemic, the government will invoked to enable the whole-of-government and
accelerate its shift to digital platforms for citizen whole-of-society response and recovery from the
engagement, service delivery, capacity building, and pandemic by promoting cultural awareness and
accountability and anti-corruption mechanisms. understanding, inculcating values for the common
Public continuity plans will be formulated across good, advancing creativity for social impact, and
government agencies. Local government units strengthening culture-sensitivity in governance and
(LGUs) will be capacitated for the implementation development.
of the Supreme Court ruling on the Mandanas case.

Pursuing Swift, Fair, and Humane Administration For Pagbabago, economic and
of Justice (Chapter 6) aims to adopt a sector approach social opportunities will be
from a fragmented mode of delivering justice, thus
streamlining and harmonizing processes across
ensured for all, to transform
the different agencies in the executive and judiciary society and achieve equity and
branches of the government. Since the start of the
Plan period, higher case disposition and clearance
resiliency.
rates due to process improvements and increased
number of prosecutors, public attorneys, and courts Expanding Economic Opportunities in
contributed to swift administration of justice. Agriculture, Forestry, and Fisheries and
The COVID-19 pandemic emphasized the need Ensuring Food Security (Chapter 8) targets small
for justice sector agencies to maximize the use of farmers, fisher folks, and micro, small, and medium
digital platforms in ensuring swift, fair, and humane enterprises (MSMEs) to ensure that the groups that
administration of justice amidst such disruptions. lag behind will benefit from these opportunities.
Coordination and cooperation among justice The first half of the Plan implementation was
sector agencies will further be strengthened and the focused on improving the delivery of support
agencies will continuously streamline and improve services prioritizing small farmers and fisher folk on
processes within the different pillars of the justice financing, insurance, technologies, and intensified
system. market matching, complemented with major
policy reforms that created opportunities to pursue

Chapter 4 Philippine Development Plan 2017-2022 Overall Framework | 57

diversification and overall rural development. The Expanding Access to Economic Opportunities
COVID-19 pandemic and community quarantine in I&S for Startups, MSMEs, and Cooperatives
has put greater emphasis on food security in the (Chapter 9C) aims to promote business inclusion
transition to the new and better normal. Thus, to among groups that lag behind. In the past three
contribute to the goal of achieving a healthy and years, critical policy reforms have been established
resilient Philippines, the agriculture, forestry, and to assist startups, MSMEs, and cooperatives to gain
fisheries sector will focus on ensuring availability, access to finance and production networks, as well as
accessibility, and affordability of nutritious food enhance their productivity, efficiency, and resilience.
while continuously addressing persistent challenges Moving forward, the government and the business
faced by the sector. These challenges include sector will pursue the full implementation of these
constraints to land and water resources, vulnerability reforms while addressing the adverse impacts of
to climate change and disaster risks, and the long- the pandemic, by providing assistance to enable
standing institutional problems related to weak enterprises to reconfigure business operations and
extension services, over-centralization, and lack of build their resiliency to address the constraints of
coordination and overlapping functions within and operation under the new and better normal.
among agencies.
Transforming Human Capital Development
Expanding Economic Opportunities in Industry Towards Greater Agility (Chapter 10) ensures
(Chapter 9A) aims to increase the sector’s output that individuals and people groups will have more
by leveraging Industry 4.0 technologies and usher options to develop their full potential. From 2017
in the growth of the digital economy. In the past to 2019, reforms in nutrition and health were
three years, the industry sector’s contribution to institutionalized through the passage of landmark
overall growth remains within its 10-year average, legislations such as the Universal Health Care Act
although the recent decline in output reflected and the First 1,000 Days Act. Similarly, access to
lower domestic demand exacerbated by supply education at all levels was expanded through the K
chain disruptions and policy uncertainty. Moving to 12 Program and the Universal Access to Quality
forward, the sector will operationalize the Inclusive Tertiary Education. However, Filipinos’ poor
Innovation and Industrial Strategy to boost capacity health-seeking behavior and the fragmentation
of local enterprises, adopt inclusive business of health service delivery systems, exacerbated by
models, and strengthen the start-up ecosystem. The the pandemic, pose a serious challenge that can
government will prioritize reforms to support the undermine previous accomplishments. For the
digital economy as these are essential elements for rest of the Plan period, the government will focus
the new normal. on addressing challenges that hamper the full
realization of the Filipino people’s full potential,
Expanding Economic Opportunities in Services such as malnutrition, early pregnancy, quality of
(Chapter 9B) aims to maximize the sector’s role as education, and disruptions brought by the pandemic
an integral backbone to a wide range of domestic and other disasters.
and global industries. The services sector has
established its position in recent years as the main Ensuring Food Resiliency and Reducing
driver of economic growth, top GDP contributor, Vulnerabilities of Filipinos (Chapter 11) focuses
and biggest employer of the country. However, with on the provision of social protection for vulnerable
the sudden halt of major subsectors such as tourism groups. Social protection programs have provided
and transport services, a shift to more digital-based considerable contributions in the reduction
services is needed to propel the services sector as of poverty, inequality, and vulnerability in the
part of the supply chain of high-value services in country. The current pandemic has amplified the
the global market. Hence, the necessary reforms importance of social protection programs and the
to attract investments and push relevant services need to enhance distribution systems. For the rest
sub-sectors to become more competitive will be of the Plan period, the government will focus on
prioritized. proactively minimizing Filipinos’ exposure to risks

58 | Updated Philippine Development Plan 2017-2022

and increasing their capacities to manage shocks, mitigate the pandemic’s short and long term effects
such as setting up registries for vulnerable sectors, while continuing to address persistent issues on
expanding coverage of the Social Security System, malnutrition, access to health services, and quality
and instituting employment insurance schemes. of graduates for employment. These will allow the
country to still reach the demographic dividend
Building Safe, Resilient, and Sustainable and build a healthy and resilient Philippines.
Communities (Chapter 12) shifts the focus
from socialized housing to human settlements Vigorously Advancing Science, Technology,
development in line with the new urban agenda and Innovation (Chapter 14) is a major strategy
of developing integrated neighborhoods and to sustain and further accelerate growth in the
sustainable communities. The creation of the future by graduating to a knowledge economy.
Department of Human Settlements and Urban This is a new chapter introduced in the PDP 2017-
Development through Republic Act 11201 is a 2022, which recognized the need to strengthen
major reform to effect better policy and program the country’s weak Science, Technology, and
coordination, reform advocacy, and implementation. Innovation (STI) ecosystem. Moving forward, the
The urgency to address the growing need for government will focus the sector’s efforts towards
adequate housing in well-planned communities has health and resiliency. This will include the rollout of
never been a matter of survival until the country technologies that will help address the pandemic and
confronted the COVID-19 pandemic. The rapid its impacts. Various government support services
increase of the spread of the virus is evident in various for start ups and MSMEs will also be ramped up to
highly dense communities, given the difficulty to help them become more innovative and resilient in
observe safe social distancing in congested spaces times of crisis. In pursuit of a more inclusive STI
and inadequate access to household water and ecosystem, the creative arts will also be included
sanitation. Moving forward, the housing and urban in these efforts. The establishment of the National
development sector will pursue building safe, Innovation Council, which is seen to guide the
resilient, and sustainable communities through country towards long-term STI development, will
the Building Adequate, Livable, Affordable, and also be fast-tracked.
Inclusive Filipino Communities (BALAI) program,
in partnership with the private sector, LGUs, and
the communities. An Enabling and Supportive
Economic Environment
For Patuloy na Pag-unlad, supports the Pagbabago and
future growth will be Patuloy na Pag-unlad pillars.
accelerated and sustained.
Ensuring Sound Macroeconomic Policy (Chapter
15) aims to promote a responsive fiscal policy by
Reaching for the Demographic Dividend Across
enabling budget policies and revenue measures,
All Regions (Chapter 13) and maximizing the full
enhanced LGU capacity, improved private sector
harvest of this dividend will require aggressive
participation, and recalibrated debt and contingent
efforts to ensure that families will be of the size that
liability management. It seeks to foster a resilient
they can adequately care and provide for. Towards
and inclusive financial system amid the COVID-19
this end, policies and programs to accelerate the
pandemic through targeted supervisory actions and
demographic transition along with improving
reforms particularly in developing a more inclusive
access to health and education services were
digital finance ecosystem, encouraging innovation
instituted. However, the socioeconomic impacts
in microfinance and microinsurance, and
brought about by the COVID-19 pandemic can
expanding consumer protection. As for the external
possibly reverse these gains. To prevent this, the
sector, it promotes sustainability and resiliency
government will implement programs that will

Chapter 4 Philippine Development Plan 2017-2022 Overall Framework | 59

through scaled up and diversified products and These strategies will ensure that all the strategies
markets, and targeted comprehensive packages of identified above are implemented to achieve the
support for specific products and services sectors. intended outcomes.
This is to take advantage of the shifts in business
processes and consumer preferences under the Attaining Just and Lasting Peace (Chapter 17)
new and better normal. Furthermore, key reforms emphasizes that peace is imperative for economic
such as the Corporate Recovery and Tax Incentives growth to be sufficiently buoyant, sustainable, and
for Enterprises Act (CREATE), the Financial inclusive. The enactment and ratification of the
Institutions Strategic Transfer Act (FIST), and Bangsamoro Organic Law marked a milestone
the Government Financial Institutions Unified in the peace process while the government
Initiatives to Distressed Enterprises for Economic institutionalized the whole-of-nation approach to
Recovery Act (GUIDE) will be actively pursued and end local communist armed conflict. Despite the
implemented. These reforms aim to lower corporate successes, there is still a need to ensure that the
income tax and rationalize incentives, ensure a gains of the peace processes are sustained towards
sound financial sector, and provide liquidity, equity community resilience and to avoid further escalation
infusion, and credit guarantees to sectors affected of conflicts. These can be achieved by implementing
by the pandemic. The country’s strong and stable a smooth transition process in the Bangsamoro
macroeconomic fundamentals complemented Autonomous Region in Muslim Mindanao,
with these strategies and responsive reforms will capacitating local governments to undertake
enable prompt recovery from the downturn caused localized peace engagements and strengthen
by the COVID-19 pandemic towards a healthy convergence of national government agencies to
and resilient Philippines under the new and better end communist insurgency, and delivering the
normal. remaining commitments under closure agreements.
Interventions in conflict-affected and conflict-
Promoting Competition (Chapter 16) reinforces vulnerable areas will be sustained while being
the Philippine Competition Act through strategies mindful of new health protocols to ensure that the
that aim to foster an environment that penalizes socioeconomic impacts of the COVID-19 pandemic
anti-competitive practices, facilitates entry of will not aggravate the fragile situation in these areas.
players and creates an economic playing field where
these players operate and grow, supports regulatory Ensuring Security, Public Order, and Safety
reform to address restrictive laws and regulations (Chapter 18) focuses on building the foundation for
that hamper competition, and improves trade inclusive growth, a high-trust and resilient society,
policies to stimulate investments and innovation and a globally-competitive knowledge economy.
and boost competitiveness. With the recent issuance Criminality has been reduced over the past three
of the National Competition Policy through Joint years, but efforts to address the prevalence of illegal
Memorandum Circular No. 1 by NEDA and drugs still need to be intensified. In terms of external
Philippine Competition Commission on 30 July security, successful negotiations for the formulation
2020, the government will ensure that its responses of the ASEAN-China Code of Conduct in the South
and interventions follow competition principles to China Sea is seen to ensure security and stability in
address market failures. the region. Moving forward, the government will
continue to strengthen the capabilities of its security
forces to ensure that the Philippine territory and
Foundations for Sustainable sovereignty is defended. It also remains committed
Development are the bedrock in its campaign against all forms of criminality,
illegal drugs, transnational crimes, trafficking-
strategies that support all the in-persons, and violent extremism. During times
three pillars of the PDP 2017- of health emergencies, the whole of the security
sector will be mobilized to adequately respond to
2022. the needs of the people, including the provision of

60 | Updated Philippine Development Plan 2017-2022

support to sectors that bring food, basic necessities, communities against the converging risks arising
and essential services to them. from natural and biological hazards under a
changing climate. The sector’s goals and targets will
Accelerating Infrastructure Development be realized by addressing the long-standing issues
(Chapter 19) aims to support a higher growth on governance, monitoring, and evaluation.
trajectory and improve the quality of life in
both urban and rural communities. It will plug Protecting the rights, promoting the welfare, and
the infrastructure gap to catch up with peers in expanding opportunities for Overseas Filipinos
the ASEAN region. Since 2017, the country’s (Chapter 21) focuses on the special circumstances
infrastructure development has been continuously of overseas Filipinos (OFs) and their families,
founded on a robust pipeline of forward-looking and aims to empower OFs towards inclusive and
infrastructure projects through the Build Build sustainable development. From 2017 to 2019, there
Build Agenda. In 2018, infrastructure spending have been significant developments in International
exceeded the benchmark five percent of GDP Migration and Development (IMD). For this
which is twice the average spending over the past PDP midterm update, a separate chapter on IMD
five decades. However, the challenges brought by has been added to ensure greater coherence and
the pandemic will alter the overall infrastructure comprehensiveness in discussing issues, relevant
development agenda. The resource requirements indicators, and strategies for OFs while upholding
of the response to the pandemic is expected to the commitments under the Global Compact for
reduce the fiscal space initially allotted for the Safe, Orderly, and Regular Migration. With the
portfolio of investments and could slow down the COVID-19 pandemic and the subsequent global
movement and implementation of programs and recession, the unprecedented volume of OFs who
projects. Accordingly, the government reassessed lost their jobs has heightened the government’s
its strategies and targets for the remaining Plan efforts in supporting repatriated and returning
period to ensure that these remain relevant and OFs, and those who remain overseas. The capacity
achievable in the face of the new and better normal of OF-serving agencies are being scaled up to be
and in pursuit of a healthy and resilient Philippines. able to serve and assist affected OFs. Further, the
Even while facing constraints brought about by the government is conducting skills retooling and
pandemic, the government will remain mindful of upgrading programs, employment assistance, and
the long-term development goals requiring early short-term employment programs to facilitate local
interventions. re-employment of OFs who have returned. The
pandemic has highlighted the urgency of strategies
Ensuring Ecological Integrity, Clean, and Healthy already being pursued by the government in the
Environment (Chapter 20) guarantees an ecosystem first three years of the Plan implementation: (a)
that provides services; supports the growth and protecting the rights and improving the well-being
performance of other services including agriculture, of OFs; (b) facilitating the reintegration of returnees
fisheries, industry, and services; and provides and expanding opportunities for OFs to participate
livelihood especially to resource-dependent in the country’s development; and (c) strengthening
communities. The pandemic and the mobility OFs’ engagement in governance.
restrictions that were imposed have redirected
attention to the most basic needs of air quality and The succeeding chapters will provide specific details
food, and how these relate to human health. Hence, for each strategy per pillar. Each chapter begins with
the shift towards sustainable development has now an assessment of previous accomplishments and the
become an urgent matter of survival. Building on lessons learned. This is followed by an enumeration
the reforms and accomplishments in the past three of the medium-term targets, noting those indicators
years of Plan implementation, the government will and targets that have been duly revised. The specific
continue to improve the state of the environment strategies and legislative agenda to meet these
and natural resources. Alongside this is increasing targets are then elaborated.
the resilience of resource-dependent and vulnerable

Chapter 4 Philippine Development Plan 2017-2022 Overall Framework | 61

PART II

BUILDING A
HIGH-TRUST
SOCIETY
(“MALASAKIT ”)
05
Ensuring
Responsive,
People-centered,
Technology-
enabled,
and Clean
Governance
 CHAPTER 5

Ensuring Responsive, People-

centered, Technology-enabled,
and Clean Governance
Transparent, accountable, and effective institutions enable efficient delivery of public services
and generate high public trust, which are crucial in achieving a healthy and resilient Philippines.
In the first half of Plan implementation, significant accomplishments in the governance
sector came in the form of the enactment of several laws that will improve the way the
government delivers its services to the people. In light of the COVID-19 pandemic, the
government will expedite its shift to digital platforms for citizen engagement, service
delivery, capacity building, and accountability mechanisms.

For the rest of the Plan period, reforms will focus on: (a) proactively seeking citizens’
perspectives to ensure the responsiveness of government interventions; (b) expediting the
implementation of the Ease of Doing Business and Efficient Government Service Delivery
(EODB EGSD) Act of 2018 (Republic Act No. 11032) and the Philippine Identification
System (PhilSys) Act (RA 11055); (c) building the capacities and preparing systems of local
government units (LGUs) for the implementation of the Supreme Court ruling in the
Mandanas case (General Register No. 199802, July 3, 2018);1 (d) formulating public service
continuity plans; and (e) tapping technologies to strengthen anti-corruption mechanisms.

Assessment and Challenges

Assessment: Major reforms in the governance For instance, some LGUs adopted electronic
sector have brought about increased access to business permit and licensing systems.
and quality of frontline services. Legal frameworks The validity of the passport was extended to
have been institutionalized such as the EODB 10 years. The National Economic and
and EGSD Act and PhilSys Act to streamline Development Authority (NEDA) has developed
processes and increase access to government the Public Investment Program Online System
services. Initiatives to automate processes are for submission of programs and projects.
also being implemented for transactions between
government and businesses, government and
citizens, and government and government.

1
The ruling significantly expands the tax base for LGUs’ share in national taxes to include not only national internal revenue taxes but also customs
duties and fees.

66 | Updated Philippine Development Plan 2017-2022

Challenges: Physical distancing measures social cohesion. Relatedly, these online platforms
necessitate the adoption of alternative work demand that the government establish security
arrangements and digital transactions, which mechanisms against incidences of cybercrimes and
require the revision of existing government cyberattacks. With the greater role of LGUs as first
rules and regulations. With the increasing use of responders and frontline service delivery units in
online forms of citizen engagement and the use times of crises, their varying levels of institutional
of big data analytics, the rise of fake news and capacity, readiness, and leadership affect the pace of
misinformation, lapses in transparency, and issues delivering services.
on human rights pose challenges in strengthening

Targets
Targets are retained for the rest of the Plan period Global e-Government Development Index (e-GDI)
except for the Worldwide Governance Indicator was included as a new indicator to capture the
(WGI) - Regulatory Quality2 and the Global progress in the adoption of e-governance, which
Competitiveness Index (GCI)3, which were lowered is crucial in the new normal. Scores on global
by 1 percentile rank due to the economic contraction indicators will also be reported to monitor progress
caused by the pandemic and based on the historical of the country’s year-on-year performance.
performance of the country. The United Nations’

Table 5.1 Updated Plan Targets to Ensure Responsive, People-centered, Technology-enabled,

and Clean Governance

BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020* 2021 2022 End of Plan

Sector Outcome: Responsive, people-centered, technology-enabled, and clean governance

None
Score in the national governance index improved Increasing Increasing Increasing Increasing
(2015)

Subsector Outcome: Participatory governance broadened

Percentile ranking in the WGI – 51

60 60 60 60
Voice and Accountability improved (2015)

64/100
Open Budget Index score improved 67/100 71/100 71/100 71/100
(2015)

2
The WGI-Regulatory Quality captures perceptions on the ability of government to formulate and implement sound policies and regulations
that permit and promote private sector development. Given the economic slowdown due to the impact of COVID-19 and enhanced community
quarantines, it is expected that there will be reduced private sector development. Thus, the targets were decreased.
3
The Global Competitiveness Report analyzes competitiveness along 12 pillars: institutions, infrastructure, macroeconomic environment,
health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development,
technological readiness, market size, business sophistication and innovation. Given the economic contraction brought by the pandemic, the targets
were lowered.

Chapter 5 Ensuring Responsive, People-centered, Technology-enabled, and Clean Governance | 67

 BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020* 2021 2022 End of Plan

Subsector Outcome: Seamless service delivery ensured

Percentile ranking in the WGI – 52

60 59 59 59
Regulatory Quality sustained (2015)

59
Percentile ranking in the GCI sustained 62 61 61 61
(2016)

0.6/1.00
Score in the Global e-GDI improved 0.7/1.0 N/A 0.7/1.0 0.7/1.0
(2016)

Percentile ranking in the WGI – 57

60 60 60 60
Government Effectiveness improved (2015)

Subsector Outcome: Public accountability and integrity strengthened

Percentile ranking in the WGI – 40

50 50 50 50
Control of Corruption improved (2015)

Percentile ranking in the Corruption Perceptions 43

50 50 50 50
Index (CPI) improved (2015)

35/100
Score in the CPI improved 37/100 38/100 38/100 38/100
(2015)

*2020 original targets set/approved in 2016/prior to the pandemic retained

Strategic Framework
The revised strategic framework (see Figure 5.1) Specifically, the government will: (a) sustain the
maintains a culture-sensitive perspective, gender- automation of government processes for corrupt-
sensitive paradigm, and rights-based approach to free, people-centered delivery of services through
public service. The framework has been expanded the full implementation of the EODB and EGSD
to mainstream technology across all subsector Act; (b) increase the people’s access to these services
outcomes and to improve the agility of the through reconfigured government systems pursuant
government to adapt to the new normal. Further, to the PhilSys Act; and (c) strengthen the capacities
a whole-of-society approach will be implemented of LGUs, civil society organizations (CSOs), and
to strengthen convergence in achieving the other local stakeholders to ensure readiness for the
sectoral outcomes. Rather than looking at each implementation of the Mandanas case ruling in the
subsector outcome as agency-led initiatives, for midst of other multidimensional risks.
the rest of the Plan period greater coordination
and complementation amongst agencies and non-
government sectors will be pursued to drive the
achievement of these outcomes.

68 | Updated Philippine Development Plan 2017-2022

Figure 5.1 Strategic Framework to Ensure Responsive, People-centered, Technology-enabled,
and Clean Governance

Strategies
At the national level, the National Economic and be developed and prescribed so that indicators
Development Authority (NEDA) and the Philippine for each program, project, and initiative can be
Statistics Authority (PSA), with other agencies, mined for higher-level analysis (if possible) and
will develop and institutionalize a National future planning.
Governance Index (NGI). The NGI will consider
relevant Sustainable Development Goal (SDG) To enhance anticipatory planning, the government
16 4 indicators and other measures of governance will conduct ex-post evaluation of the various
and competitiveness. interventions rolled out during the imposition of
the enhanced community quarantine and general
Relatedly, a monitoring and evaluation (M&E) community quarantine to determine lessons
system for the sector will also be institutionalized learned, share best practices across different
to track the accomplishments and challenges in agencies and LGUs, and influence future policies.
the sector and to formulate strategies that will
address bottlenecks. A standard way of collection,
organization, and analysis of indicators will also

4
SDG 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable,
and inclusive institutions at all levels.

Chapter 5 Ensuring Responsive, People-centered, Technology-enabled, and Clean Governance | 69

Broadening participatory The government will develop programs for
people to participate in the promotion of citizen
governance empowerment in their respective locality. Platforms
will be provided to enable citizens and CSOs to
The government will promote a culture of informing, participate in local government processes such as
engaging, and empowering citizens. Thus, adequate development planning, budgeting, implementation,
and genuine representation of civil society in and M&E. Development of mobile apps, utilization
local development councils and other advisory of media platforms, and application of geotagging
bodies will be ensured. Response and feedback technologies will also be implemented to facilitate
mechanisms will also be localized and expanded. broader participation such as Development Live
Electoral reforms will be intensified while observing (DevLive).6 With the institutionalization of the
risk mitigation protocols for the citizenry. Citizen Participatory Audit (CPA), citizens and
LGUs will be capacitated on the auditing process and
Government programs, projects, and public policies the importance of CPA in minimizing corruption
will be made more inclusive and responsive to the and enhancing public accountability.
needs of the different sectors. The government
will ensure that overseas Filipinos; micro, small, Furthermore, these initiatives will be implemented:
and medium enterprises; and the vulnerable and
marginalized sectors, such as indigenous groups and • Encourage volunteerism to promote shared
disabled individuals, are involved in development responsibility and accountability in achieving
planning. Frontline agencies will be trained on development goals. The government will
mainstreaming human rights-based approach to reinforce and strengthen the practice of
development planning to enable them to assist and volunteerism in the delivery of social services,
provide the public with better government services. provision of technical assistance, response
to disaster, and undertaking humanitarian
Proactively seek citizens’ perspectives for efforts, especially in remote and unserved
responsive government interventions. Agencies areas. Encouraging volunteerism will also be
will proactively solicit comments and suggestions explored as a criterion in the Seal of Good Local
from citizens using a three-pronged approach: Governance (SGLG).
(a) providing adequate venues for engagement;
(b) communicating in clear language; and (c) • Ascertain the functionality and quality of
collaborating with other sectors. The “outside-in” local special bodies. Further advocacy will be
approach5 will be adopted by actively listening conducted to encourage more CSOs to apply
to the people and understanding their needs and for accreditation, as outlined in the Department
expectations. This brings the voice of the citizens of the Interior and Local Government’s
into the decision-making for and design of public (DILG) Memorandum Circular No. 2019-
services. Several platforms will be provided to 72. 7 Existing guidelines of other agencies on
enable ordinary citizens to take an active role in CSO accreditation will also be harmonized.
information sharing, public resource management, The selection process and criteria for CSO
policy and regulation review, and other related members will be upgraded to ensure unbiased
processes. A whole-of-society approach in national and fair representation in local special bodies.
and local planning will be instilled.

5
An approach where service providers position themselves in the position of their clients and view themselves from their clients’ perspective. In
this manner, services will be designed to be more responsive and easily accessible to the clients.
6
Developed by the DILG and the United Nations Development Programme, DevLive is a mobile application where citizens can report status of
projects in their communities that allows greater transparency, accountability, and efficiency in the implementation of government infrastructure
projects.
7
Guidelines on the accreditation of civil society organizations and selection of representatives to the local special bodies, which became effective
starting June 11, 2019.

70 | Updated Philippine Development Plan 2017-2022

 Further, DILG will capacitate and evaluate National agencies and LGUs will maximize
the functionality of these bodies to ascertain the use of online platforms to provide timely
the legitimacy of representatives and sectoral and responsive public information including
concerns in the planning process. policies, advisories, statistics, and other
government data. At-a-glance information on
• Upscale existing governance initiatives. government services will also be provided in a
The government will continue to implement and comprehensive, accessible, and timely manner.
upscale efforts in fulfilling the commitments
to the Open Government Partnership Action Aside from these, the government will utilize
Plans and Participatory Governance Cluster other platforms to reach a wider audience and
Performance and Projects Roadmap (2017- engage citizens to generate more feedback
2022). Best practices from the Partnership on the quality of government services. These
will be shared with other government agencies platforms include social media, text messaging,
through the conduct of regular, online peer call centers, and mobile apps, which will be
learning sessions. The national government will institutionalized at the local level, as much as
also develop and issue a unified policy on citizen possible. Crowdsourcing will be explored as
engagement in governance to consolidate another form of public consultation, while
fragmented guidelines, institutionalize best collaboration with non-government sectors will
practices, and ensure sustainability of existing be facilitated. Mechanisms will be improved
open and participatory governance reforms. and simplified to ensure that the feedback loop
To complement these mechanisms, national is closed – citizens who submit complaints
agencies will sustain compliance with the must be given real-time updates on their issues
Transparency Seal. Agencies will also engage to show that their concerns matter.
and partner with the private sector, academe,
civil society, and other stakeholders for service The Report Card Survey (RCS), now under the
innovations, technologies, and research and Anti-Red Tape Authority’s (ARTA) purview, will
development. be expanded and revamped to incorporate more
measures of citizen satisfaction using a leaner,
Ensure public access to transparent, strategic simpler tool. This will allow the identification
risk communication. The government will of priority areas for service improvement,
continue to pursue the passage of the Freedom comparison, benchmarking across agencies,
of Information Bill to enable the public to have and recognizing best practices for replication.
access to government data through online means, The RCS will be cross-referenced and, if
among others, free of charge and in an open format. possible, harmonized into a single survey with
With the right information, the public can provide other existing stakeholder satisfaction surveys
insights and possible solutions that the government such as the Development Academy of the
can use in crafting polices, plans, programs, and Philippines’ Customer/Business/Stakeholder
projects. Specific initiatives include: Satisfaction Surveys and the DILG’s Citizen
Satisfaction Index System.
• Mainstream the use of technology in informing,
consulting, involving, collaborating, and • Develop and implement a framework for
empowering citizens. Adequate information privacy, personal data protection, and security
and communications technology (ICT) in the use and application of ICT. While
infrastructure will be pursued through programs for an ICT-enabled government are
provision of free Wi-Fi access in all public being accelerated, the government will also
places and rollout of programs included ensure that data privacy rights of citizens remain
in the Department of Information and protected under these e-programs. Safeguards
Communications Technology’s (DICT) against cybercrimes and data privacy breach
e-Government Masterplan. will be enhanced by strengthening the capacity

Chapter 5 Ensuring Responsive, People-centered, Technology-enabled, and Clean Governance | 71

 of DICT. The government will also revisit Strengthen the whole-of-government approach
the Data Privacy Act of 2012 (RA 10173) to in the delivery of key services. A whole-of-
examine its safety measures and determine government approach entails interoperable
its sufficiency in balancing concerns on data government processes and systems in delivering
privacy and public welfare. Privacy impact key services (e.g., provision of healthcare,
assessment will be conducted with guidance access to basic social services, and utilization of
from the National Privacy Commission. Data the PhilSys, among others). Effective service
sharing agreements will be enforced to facilitate delivery to overseas Filipinos will also be pursued
information sharing, where possible. (see Chapter 21). Coordination among the national
government, LGUs, private sector, and civil society
Intensify organizational and electoral reforms. will be enhanced by automating systems and
Spearheaded by the Commission on Elections linking government services. To increase public
(COMELEC), the government will push for political satisfaction and confidence in the government,
and electoral reforms to integrate new election initiatives will be implemented on the use
protocols such as, but not limited to, automation of evidence-based service quality standards,
and online system of voter registration, digitization performance excellence, and best practices
of voters’ list, enhancement of voting measures in citizen-centered public service delivery.
for senior citizens and persons with disabilities, Complementing efforts at the national level, LGU
and establishment of additional polling places for capacities on the implementation of infrastructure
indigenous groups (see also Legislative Agenda). projects and the delivery of devolved services
Rules and regulations on party-list development, will also be enhanced to take advantage of the
anti-political dynasty, and campaign financing will increase in their resources following the Mandanas
also be pursued. case ruling. A communication, outreach, standards
development for devolved services and roadmap
To ensure a more responsive and resilient electoral to manage the transition will be formulated
process, appropriate risk mitigation measures and implemented by the time the ruling takes effect
against COVID-19, or any other pandemic, will be in 2022.
developed for the 2022 elections. Voter education
activities will be intensified to include information Aside from these, the following initiatives will be
on safety protocols during elections. Similar to pursued:
previous initiatives, there will be partnership with
state universities and colleges (SUCs) and open • Expedite implementation of the EODB and
universities for the development of education EGSD Act. Implementation of the law must
modules and dissemination of information. Online cover the: (a) issuance and extension of validity
platforms will also be utilized to inform voters. of permits and licenses; (b) reduction in the
number of signatories and requirements; and
(c) use of online filing and payment platforms
Ensuring seamless service of government agencies. As much as possible,
delivery government procedures and processes will
be automated through either full migration
All of government will be engaged in streamlining to online systems or utilization of a common
policies, processes, and procedures, while ensuring platform such as the National Government
interoperability to facilitate the shift towards Portal. This platform will also include a
e-governance. Better service delivery strategies and standard, full suite of common government
new programs will be co-created among related processes (i.e., human resource management
agencies, relevant stakeholders, and citizens. and procurement) to minimize duplication
of efforts by various agencies. The ARTA will
be fully operationalized and agencies will be

72 | Updated Philippine Development Plan 2017-2022

 trained to identify transaction complexity efficient provision of key services (e.g., pension,
of government procedures for appropriate conditional cash transfer, farmer assistance,
response times. health coverage, among others). A primary use
case, especially for low-income households, is
• Fast-track the digitalization of frontline bank account opening/ownership for which
services and contactless transactions with PhilSys ID will be an acceptable proof of
the government. Digitalization will entail identity. To facilitate this, bank account
electronic and paperless systems, zero-contact opening will be co-located with registration
policies, online transactions, and new channels areas. Further functionality of PhilSys will
for service delivery. The government will invest also be harnessed in the development of the
in ICT to enable remote government operations country’s digital economy through its secure
and to strengthen and harmonize existing identification and verification platforms.
online platforms. Aside from preparing the
necessary ICT infrastructure, the DICT will • Implement the community-based monitoring
also fast-track the implementation of its Digital system (CBMS). As provided for by the CBMS
Government Program to develop key solutions Act (RA 11315) and the recent promulgation of
for national government agencies and LGUs its implementing rules and regulations (IRR),8
that will enable them to remotely perform the CBMS will be conducted to ensure that
their mandates and implement their programs, LGUs have regularly updated facts, figures, and
projects, and activities. These include providing maps on the different dimensions of poverty at
reliable and secure connectivity, collaboration the local level. Given current health and safety
tools, videoconferencing applications, cloud protocols, such conduct must be done through
platforms, cloud hosting, and digital signatures. computer-assisted personal interviewing. The
Moreover, the DICT will enforce the Philippine national government and LGUs will utilize
e-Government Interoperability Framework CBMS-gathered data for seamless and targeted
(PeGIF) which defines a common language, distribution of social assistance and other
principles, and standards that national public services. The PhilSys will be integrated
government agencies should adopt in designing with the CBMS to harmonize LGU data and
their technology-enabled platforms to ensure further streamline administrative processes.
cohesion of ICT systems for the whole of
government. • Formulate and enforce national and local
preparedness and response frameworks for
• Accelerate the implementation of PhilSys. disease outbreaks and pandemics. Existing
As registries of program beneficiaries and the frameworks for disaster risk reduction and
use of digital payments have become critical management (DRRM) and crisis management
in this new normal, implementation of PhilSys at the national and local levels will be updated
will be accelerated by increasing registration and harmonized based on robust assessment,
kits. To achieve its targeted registration of 116 surveillance, and monitoring of hazards, risks,
million population by 2023, the PSA will fast- and diseases. The IRR of the Philippine DRRM
track the completion of registration guidelines Act of 2010 (RA 10121) will be revised to
and protocols; recruitment and training of field explicitly identify public health emergencies
registration personnel; and establishment of such as pandemics in the definition of disaster
registration centers. Use cases for the issued events. These frameworks will be enforced at
identification (ID) called the PhilSys ID, will the local level to ensure proper planning and
be identified, particularly in facilitating more implementation of interventions intended to
address health and other state emergencies.

8
Signed and approved on May 20, 2020.

Chapter 5 Ensuring Responsive, People-centered, Technology-enabled, and Clean Governance | 73

Enhance regulatory quality. The EODB and There will also be a review of agency-specific
EGSD Act institutionalizes the regulatory impact and sector-wide policies to improve internal
assessment (RIA) in the bureaucracy, which and sectoral efficiency. At the local level, a
mandates the thorough review of regulations standard checklist will be developed containing
prior to their issuance. Other reforms will also be the services that must be complied with by
intensified to reduce unnecessary regulatory burden LGUs based on existing laws and issuances.
while simplifying processes: This checklist can then be used by the DILG
for the SGLG, by constitutional bodies for the
• Expand the National Effort for the exercise of their functions, and by Congress
Harmonization of Efficient Measures of Inter- for policy triggers.
related Agencies (Program NEHEMIA) for the
pursuit of a whole-of-government approach to • Accelerate the adoption of RIA. Priority
service delivery. Program NEHEMIA will be will be given to the development of a
sustained to supplement efforts in eliminating national and sectoral framework for RIA,
red tape in the government by reducing including the drafting of proportionality
time, cost, requirements, and procedures in analysis guidelines. Regulatory agencies,
sectors of economic and social significance the legislative branch, LGUs, and decision-
by 52 percent within 52 weeks. Its scope will makers will be trained to undertake RIA.
be expanded to other sectors taking off from Courses on compliance cost assessment and
the first phase, which included common public consultation will also be conducted
tower and connectivity, housing, food and to support an effective RIA implementation.
pharmaceutical, logistics, and the energy Online training and assessment platforms will
sectors. be developed in this regard.

• Reduce administrative burden within the • Revisit and strengthen the results-based
government. To support remote government performance management. Results-Based
operations, oversight agencies such as the Performance Management System (RBPMS)
Department of Budget and Management will be intensified by refining performance
(DBM), the Government Procurement Policy measurements, strengthening the M&E systems
Board, COA, and the Civil Service Commission of performance targets, and making the link
(CSC), among others, will review and rationalize to performance incentives more explicit. The
their rules, regulations, and requirements to criteria and conditions of the performance-
allow for electronic transactions, alternative based bonus (PBB) will complement the
work arrangements, and procurement of off- desired reforms (e.g., digitization, contactless
the-shelf software 9 in the public sector. This transactions, productivity increase) and the
likewise applies to intra-agency documentary achievement of desired sectoral, societal
requirements of offices. outcomes, and results that are relevant
to ordinary citizens. In particular, the
Pre-existing issues with the IRR of the possibility of delinking the RBPMS from
Government Procurement Reform Act (RA the PBB will be explored. Organizational
9184) (e.g., tedious process) and COA rules rewards such as capital investments will be
(e.g., uniform application) will be addressed granted rather than individual incentives to
through the review and amendment of these encourage agency-wide collaboration. Further,
regulations, as necessary, while making these information on the rationale of the PBB as
responsive to the new normal. a reform measure to improve performance
and productivity both at individual and
organizational levels will be cascaded.

9
Regular procurement rules will apply after the Bayanihan Act lapses in effectivity.

74 | Updated Philippine Development Plan 2017-2022

Boost capabilities of LGUs as first responders Developing smart and resilient
and frontline service delivery units. In a time
of crisis, program convergence and coherent public organizations and
coordination between and among the national future-ready public servants
government, LGUs, private sector, and CSOs,
are crucial particularly in transitioning to the Capacity-building interventions and infusion of
new normal. Proper change management on the technology in human resource (HR) management
devolution of services will be observed through will enable smart and resilient public sector
collaboration between various government organizations as well as develop and sustain a
agencies and LGUs, and timely dissemination of corps of smart and future-ready public servants.
information to LGUs. This includes a review of The advent of the Fourth Industrial Revolution
national policies and regulations such as auditing entails the automation of HR processes and the
rules for more effective control mechanisms, integration of HR systems that are aligned with
pertinent provisions of the Local Government government masterplans. Essential to these will
Code, and position qualification standards for be the development of a bureaucracy-wide HR
capacity issues. Management Information System, propelling a shift
from transactional to strategic HR management.
The government will craft the transition plan for
implementing the Supreme Court ruling in the Strengthen competencies for innovation,
Mandanas case, which, upon its rollout, will provide anticipatory planning, risk management, and
LGUs greater access to funds to implement devolved emergency response. Since the new normal
services. Guidelines on the use of the Internal is characterized by volatility and uncertainty,
Revenue Allotment for development projects public sector organizations need to be agile and
will also be revisited to facilitate investments in future-ready, with strong adaptive capacity. To
community health programs and facilities. In ensure productivity of the public sector, initiatives
light of disruptions to local economies, LGUs will focus on fostering innovation and futures
will be empowered to shift towards new income thinking. Public sector organizations will be
opportunities and revive local industries as early assisted in applying design-thinking principles
as 2021 and update their Local Investments and and strategic foresight tools. These interventions
Incentives Codes accordingly. will be complemented with institutionalizing
better knowledge management practices and
LGU capacities on forward planning, budgeting, encouraging knowledge sharing and collaboration
implementing, monitoring, and evaluating between agencies. Online modules and training
government projects such as infrastructure on risk management and emergency response
projects and the delivery of devolved services will will be developed and provided to civil servants
be enhanced. In this regard, NEDA will take on to cope with the new normal.
a bigger role by working with DILG, DAP,
different SUCs, the Local Government Academy Comprehensive and multimodal learning
(LGA), and other training institutions to opportunities will also be provided for public
deliver the necessary training and other capacity managers, high level officials, and local chief
development interventions. The DILG will also executives through DAP's Public Management
ensure that LGUs are provided with necessary Development Program. The DAP will likewise
capacity development to prepare them for continue its Capability Building on Innovative
bigger responsibilities and accountability given Leadership for Legislative Staff Program, which
their increased share from the national wealth. aims to capacitate senior executives, managers, and
technical staff members of the legislative branch.

Chapter 5 Ensuring Responsive, People-centered, Technology-enabled, and Clean Governance | 75

To optimize investment in HR development, the Development of these modules will also be cross-
Philippine Civil Service Academy (CSA) will referenced with the results of the National Values
be fully reactivated, which, under Presidential Survey commissioned by NEDA and the Study
Decree 1218, will be responsible for the planning, on Filipino Values commissioned by the National
formulation, and implementation of training Commission for Culture and the Arts to ensure
and other career development programs for first that Filipino values are integrated in all levels of
and second level positions of the career service. civil service. The Public Service Values Program
The CSA will also formulate policies that will will be revisited to strengthen inculcation of
govern all locally- and foreign-funded scholarship patriotism, integrity, excellence, and spirituality in
programs in the government. public servants and officials (see also Chapter 7).
The CSC will tap accredited learning and
Various forms of alternative learning and development institutions in the conduct of these
technology-enabled platforms in enhancing values-oriented interventions. Technology-enabled
capacities and competencies of local chief executives platforms will be widely used to raise awareness on
will be explored in preparation for the increase in civil service values and norms.
LGU expenditure responsibilities due to the full
implementation of the Mandanas case ruling in Integrate risk assessment and anticipatory
2022. The DILG and LGA will work with NEDA in response in HR policies, programs, and systems.
conducting training programs on policy, planning, To ensure that gains and developments in the
programming, budgeting, implementation, and government are guarded from disruptions caused
M&E of devolved services and the basic standards by crises, government agencies will formulate
of service delivery. and rehearse their public service continuity plans.
Occupational safety and emergency response
Continue training and capability advancement standards in the government will be enforced
of government executives and high-level civil to keep the workforce intact, productive, and
servants. The government will maintain an efficient motivated. In crafting these continuity plans,
and talented bureaucracy; promote innovation, relevant stakeholders will be engaged and
teamwork, reform-orientation, and outcome consulted to ensure their buy-in and support to
focus among government personnel; and break the implementation of these plans.
the silo mentality. These will be done through a
Career Executive Service Development Program Current HR policies, programs, and systems will
for government such as the Public Management be reviewed and revised to ensure responsiveness
Development Program, the Leadership to current times. Alternative or flexible work
Certification for Middle Managers, and the Public arrangements will be institutionalized, with
Financial Management Competency Programs. appropriate control and performance management
Third-level officials will be encouraged to complete mechanisms. Adequate resources and other support
the Leadership and Management Proficiency mechanisms will also be provided to ensure viability
Program under the Career Executive Service Board. of these work arrangements. HR management
systems of the CSC will also be modernized to
Promote shared public sector values. A whole- adapt to the transformation to digital economy. This
of-government and whole-of-society National entails establishment of a single comprehensive HR
Values Formation Program will be implemented management information system that will utilize
by the government to address the anticipated digital tools for HR data analytics and support
changes in behavior and level of social trust. decision-making by the CSC. This will enable the
Values-related training programs for civil Commission to better and more effectively manage
servants such as the Alay sa Bayan, Public civil service nationwide.
Service Ethics and Accountability, and values
orientation workshop will be harmonized to
ensure consistency and quality of trainings.

76 | Updated Philippine Development Plan 2017-2022

Strengthening public Strengthen monitoring and enforcement
mechanisms for accountability. Anti-corruption
accountability and integrity laws and issuances will be fully enforced, especially
with the enactment of the EODB and EGSD
The remaining Plan period will focus on intensified Act that penalizes civil servants found guilty of
inter-agency and whole-of-society efforts in bribery. To expedite processing of cases and other
reducing corruption through education, administrative processes for corruption incidents
prevention, and enforcement. and allegations, agencies will utilize technologies
to automate complaints filing and evaluation, case
Engage citizens in anti-corruption drives. management, and case inventory, among others.
Public awareness will be enhanced through Administrative investigations for corruption
continuous collaboration with the non-government incidents and allegations will also be streamlined.
sector (e.g., academe, media, civil society) and the
use of technology-enabled platforms (e.g., social Citizen empowerment efforts and capacity-
media). By providing appropriate and adequate building activities for non-government
mechanisms for citizens to report incidents of organizations and other volunteers on monitoring
corruption, citizens’ active involvement in the and public accountability will also be strengthened
campaign against corruption will be heightened. and expanded through open and participatory
To this end, the mobile and web platforms of governance programs. The DILG’s Bantay
Hotline 8888 will be reinforced, while reporting Korapsyon Program will mobilize citizens and
tools will be simplified. A quick response system utilize various anti-corruption mechanisms at the
will also be established to build public trust by local level to ensure that erring local officials
providing simplified reporting tools in various will be held accountable for committing corrupt
delivery modes, channels, and platforms. practices and for failure to perform their
Whistleblowing programs of agencies will also mandated functions.
be strengthened by increasing incentives and
protection for whistleblowers.

Integrate anti-corruption measures in risk

reduction and management framework for
disasters and other forms of crisis. The government
will conduct corruption risk assessments of disaster
and crisis preparedness and response. In this
regard, Internal Audit Service units of government
agencies will be capacitated to ensure effective
control systems in the bureaucracy. Safeguards will
be installed to protect the integrity of systems and
mechanisms, such as utilizing technology for the
disbursement of resources.

Previous prevention measures will be continued

such as the country’s commitment to the United
Nations Convention against Corruption; other anti-
corruption programs (e.g., Integrity Management
Program); and existing transparency initiatives
(e.g., Full Disclosure Policy, Transparency Seal,
Citizen’s Charter).

Chapter 5 Ensuring Responsive, People-centered, Technology-enabled, and Clean Governance | 77

Legislative Agenda
For the rest of the Plan period, the following legislative agenda will be pursued:

Table 5.2 Legislative Agenda to Ensure Responsive, People-centered, Technology-enabled,

and Clean Governance

LEGISLATIVE AGENDA RATIONALE

Participatory governance broadened

This will address transparency issues on government data, thereby promoting meaningful and
Freedom of Information Act
increased participation of the people in government decision-making and public accountability.

Review of the Voter’s Registration Act of 1996

(RA 8189), Automated Election System Act This will allow for online registration and online voting, and facilitate risk mitigation procedures
(RA 9369 amending RA 8436), and for the 2022 National and Local Elections.
Fair Elections Act (RA 9006)

Seamless service delivery ensured

This will support the expansionary fiscal policy of the government in response to COVID-19
through (a) streamlining the cash budgeting system; (b) strengthening the Bureau of the
Budget Modernization Act Treasury’s oversight function over government bank accounts; (c) providing the legal basis for
upholding the validity of online financial transactions; (d) giving DBM the power over internal
audit standards; and (e) instituting participation in government budgeting.

This will strengthen horizontal and vertical coherence of policies, plans, and programs among
National Planning and Development Act agencies and across administrative units, as well as the functional translation of plans into
investment programs, budget, and implementation.

Smart and resilient public organizations and future-ready public servants developed

Amendments to the Telecommuting This will institutionalize flexible and alternative working arrangements for employees in the
Act of 2018 (RA 11165) public sector providing non-frontline public services.

78 | Updated Philippine Development Plan 2017-2022

06
Pursuing Swift,
Fair, and Humane
Administration of
Justice
CHAPTER 6

Pursuing Swift, Fair, and Humane

Administration of Justice
In pursuit of swift and fair administration of justice, the Philippine Development Plan (PDP)
2017- 2022 outlines strategies aimed at enhancing the country’s civil, criminal, commercial,
and administrative justice systems and improving efficiency and accountability in the justice
sector. The gains achieved during the past three years set the stage for further improvements
in terms of the institutional, policy, and process framework of the justice system.

Access to justice and the protection of human rights are fundamental outcomes that need to
be guaranteed in order to protect and improve the well-being of Filipinos.

In light of the COVID-19 pandemic, the government will maximize the use of digital platforms
to ensure swift, fair, and humane administration of justice. It will further strengthen the
coordination and cooperation among justice sector agencies, and continuously streamline
and improve processes within the different pillars of the justice system.

Assessment and Challenges

Assessment: Streamlined processes, increased Challenges: Congestion of case dockets and penal
human resources and courts, increased jail and facilities and other resource deficiencies are among
prison personnel and improved facilities, revised the most critical challenges in the justice system,
judicial rules and procedures, and sector-wide particularly affecting the provision of timely and
collaboration resulted in higher case disposition effective remedy and resolution of cases. The
rates. These were complemented by information COVID-19 pandemic highlighted the persisting
and communications technology (ICT)-enabled problem of overcrowding in jails and prisons and the
systems. Improvements in the legal framework need to strictly enforce health and safety protocols
were made through legislative and executive actions in penal facilities. Addressing these concerns is
relative to the criminal justice system. With the essential towards achieving a responsive, humane,
onset of the COVID-19 pandemic, justice sector and inclusive justice system.
agencies will increasingly rely on ICT to facilitate
access to justice particularly on the conduct of
judicial and investigation procedures.

Chapter 6 Pursuing Swift, Fair, and Humane Administration of Justice | 81

Targets
The country’s performance in the World Governance strategic framework of the sector. Original targets
Indicator and World Justice Project Rule of Law for the percentile rank of the core indicators
(WJP-ROL) Index will continuously be monitored. were retained. Country scores in WJP-ROL sub-
For the PDP 2017-2022 midterm update, the core indicators were also added as targets.
indicators are rearranged in line with the updated

Table 6.1 Updated Plan Targets to Pursue Swift, Fair, and Humane Administration of Justice

BASELINE VALUE TARGETS

INDICATOR
(YEAR) 2020 **
2021 2022 EOP

Subsector Outcome: Criminal, civil, and economic justice processes ICT-enabled and streamlined

World Justice Project - Rule of Law Index improved

Sub-indicator on Fundamental Rights improved

26.55
Percentile rank 28.00 29.00 29.00 29.00
(2016)

0.50
Score Increasing Increasing Increasing Increasing
(2016)

Sub-indicator on Civil Justice improved

23.01
Percentile rank 25.00 27.00 27.00 27.00
(2016)

0.45
Score Increasing Increasing Increasing Increasing
(2016)

Sub-indicator on Criminal Justice improved

25.66
Percentile rank 27.00 29.00 29.00 29.00
(2016)

0.36
Score Increasing Increasing Increasing Increasing
(2016)

Subsector Outcome: Sector efficiency and accountability improved

Percentile rank in the World

43.27
Governance Indicator – Rule of 46.00 50.00 50.00 50.00
(2015)
Law improved

*2020 original targets set/approved in 2016 prior to the pandemic retained

82 | Updated Philippine Development Plan 2017-2022

Strategic Framework
The revised strategic framework (see Figure 6.1) and program convergence at the national and local
supports the pursuit of a whole-of-sector approach levels; (b) further increasing human resources and
and streamlined interdependence among the justice courts to enhance access to justice; (c) pursuing
sector institutions. Additional emphasis is given to ICT-enabled systems to streamline or harmonize
the pursuit of a more humane justice system. processes and facilitate information sharing; (d)
expanding and maximizing the use of Alternative
The government will sustain current reforms being Dispute Resolution (ADR); and (e) addressing
undertaken, and strengthen existing structures congestion in penal facilities through infrastructure
and systems. These will be done by (a) sustaining development and expedient criminal justice
and institutionalizing justice sector coordination processes.

Figure 6.1 Strategic Framework to Pursue Swift, Fair, and Humane Administration of Justice

Strategies
Streamlining ICT-enabled enabled systems will be expanded for investigation,
prosecution, and adjudication, harmonization of
criminal, civil, and economic procedures, and improving evidence management.
justice processes
Initiatives to improve the criminal investigation
system will be pursued. These include legislation
Streamline processes for speedy resolution of being proposed by the Department of Justice to
criminal and civil cases. The justice sector agencies streamline the criminal investigation processes
will maximize the use of available technologies for among prosecutors and law enforcers, as well
the speedy resolution of criminal and civil cases, and as improvements in existing Court rules and
community and economic disputes. The use of ICT- procedures on criminal investigation and better

Chapter 6 Pursuing Swift, Fair, and Humane Administration of Justice | 83

coordination with the Supreme Court (SC). The ICT-enabled systems such as videoconferencing
Witness Protection Program will be strengthened facilities and the e-Courts system. Initiatives on
and a whistleblower protection program will be online filing of cases, petition of bails, and electronic
established to facilitate case buildup, investigation, testimony will also be institutionalized. The SC
and prosecution, especially on heinous crimes will enhance and expand the Family Courts Act
and high-profile cases. International cooperation of 1997 and pursue the drafting, finalization, and
on criminal justice will also be pursued including approval of its Implementing Rules and Regulations
mutual legal assistance and transfer of sentence. (IRR). A review of the design and implementation
of the Justice on Wheels will also be pursued to
Investigation and prosecution of cases involving make it more relevant and accessible to the people.
illegal drugs, human trafficking, cybercrime, and Lastly, the coverage of small claims courts will be
grave human rights violations will remain a priority broadened by further promoting it to the public and
for the justice sector. As such, the government expanding its coverage to more court users.
will establish and/or improve appropriate policies,
interventions, coordination, and specialized Ensure access to justice by the poor, vulnerable,
procedures. and marginalized groups. To ensure access to
justice, the government will prioritize strengthening
ADR will be strengthened at all levels. Specifically, of the justice sector agencies’ capacity to deliver
the Katarungang Pambarangay will be promoted legal and victim assistance. To increase access of
as the primary mechanism of local governments the poor, vulnerable, and marginalized sectors to
for resolving community-level disputes. The legal aid, plantilla positions will be increased, and
Department of the Interior and Local Government the recruitment of investigators, prosecutors, public
(DILG) will expand its awards program, while the attorneys, judges, and other legal or court officers
DOJ - Office of ADR will enhance and expand the will be expedited. Support will also be provided to
scope of its mediation capacity building for the all personnel nationwide.
Lupong Tagapamayapa in coordination with the
DILG. In addition to its regular functions on the Apart from the regular services of the PAO, other
provision of legal aid services, the Public Attorney’s legal aid programs will also be sustained and
Office (PAO) will sustain its services on mediation improved such as the implementation of the Revised
and conciliation of disputes. The DOJ will also Law Student Practice Rule (Rule 138-A) of the SC
continue to build the prosecution-level mediation and the DOJ Action Center Program. Justice sector
procedures as an ADR mechanism in the National agencies will also explore and implement legal
Prosecution Service. Measures to further expand internship and practice programs to augment the
and mainstream the use of ADR in relation to limited manpower for legal services and facilitate
criminal justice will be explored, specifically to the recruitment of competent personnel.
include law enforcement agencies, indigenous, and
community-based justice systems and restorative Safe and convenient access to legal and victim
justice. Given the requirements for the post- assistance will be established through online
COVID new normal, the government will promote and other communication platforms. Moreover,
the use of online dispute resolution mechanisms at sustained physical access to free legal assistance and
all levels. victim support services of agencies concerned will
be ensured even during pandemics and other public
The SC will sustain the review and enhancement of emergency situations.
judicial rules and procedures with the promulgation
and effectivity of the amendments to the Revised Assistance and support for victims of crimes and
Rules of Evidence (A.M. No. 19-08-15-SC) and to human rights violations, including gender-sensitive
the Revised Rules on Civil Procedure (A.M. No. 19- and child-friendly procedures and facilities, will
10-20-SC), which took effect on May 1, 2020. Also be improved and strengthened. These include
to be covered are the continuous trial system and increasing the compensation of victims of unjust

84 | Updated Philippine Development Plan 2017-2022

imprisonment and victims of violent crimes through Security facilities will be modernized to prevent
the amendment of RA 7309.1 Referral procedures escapes, violence, and illegal activities. Jail and
for legal assistance and victim support in relation to prison management policies will be continuously
applicable frontline services will be integrated into reviewed, improved, and harmonized. These include
the manuals of operations, Citizen’s Charter, and procedures in terms of admission, classification,
public assistance or complaint desk mechanism of security, health, medical treatment, visitation,
agencies concerned. transfer, transportation, and release. Authorities
will ensure that these standards are gender- and
The Commission on Human Rights (CHR) will child-responsive for PDL and visitors. Appropriate
continue its efforts to facilitate access to justice interventions will be put in place for radicalized
particularly on addressing human rights violations, PDL and those charged or convicted of heinous
empowering the marginalized to seek response crimes.
and remedies for injustice, and improving legal
protection awareness and aid, among others. Its Access to legal assistance for pre-sentence and
Legal Clinic Caravan will sustain its developmental sentenced PDL will be provided and facilitated. The
and legal assistance and counselling. These include Bureau of Jail Management and Penology (BJMP)
increasing human rights awareness, capacity will continuously improve and update its paralegal
building and training on basic human rights, and program for PDL in local jails, which the Bureau
raising public awareness on the role, mandate, and of Corrections (BUCOR) can adopt for national
services of CHR and other relevant human rights penitentiaries. The e- Dalaw facility will be sustained
laws. and introduced in more jails and prisons to enable
off-site interface of PDL and their families, subject
Pursue jail decongestion and corrections reform. to appropriate security protocols and available
Jail decongestion and corrections reform will be resources.
pursued in terms of program, institutional, and
legal framework. This will be achieved by enforcing The Judiciary will sustain and expand its lead role
the right of persons deprived of liberty (PDL) to in the Task Force Katarungan at Kalayaan as an
bail in appropriate cases, and their right to speedy inter-agency forum to address jail congestion and
trial.2 Construction and repair of penal facilities will facilitate timely resolution of cases involving pre-
also be prioritized to improve living conditions of sentence detainees. The pilot implementation of the
PDL and facilitate offender rehabilitation, welfare, Task Force has been rolled out in the court stations
and development. The use of teleconferencing or of Manila, Quezon City, Makati City, Pasay City,
online hearings during court proceedings will be and Muntinlupa City. Innovative approaches on
expanded for PDL and other similarly situated facilitating the conduct of trial for PDLs will also be
parties (e.g., complainants, witnesses, victims who explored and pursue including transfer of venue in
are constrained from physically appearing in court) authorized cases for valid grounds and on-site trial.
to facilitate faster resolution of cases.
The CHR will likewise continue its efforts in
Alongside efforts to decongest penal facilities, operationalizing the Interim National Preventive
the government will continue to intensify efforts Mechanism (NPM) against torture pursuant to
to ensure drug-free penal facilities and will put the State obligation under the United Nations
in place necessary health and safety protocols to (UN) Optional Protocol to the Convention against
ensure humane living conditions of PDL. Regular Torture and Other Cruel, Inhuman, or Degrading
health monitoring will be provided to PDL, along Treatment or Punishment. This aims to improve
with provision of basic needs and services. the human rights situations of PDL, the conditions

1
  “An Act Creating a Board of Claims under the Department of Justice for Victims of Unjust Imprisonment or Detention and Victims of Violent
Crimes, and for Other Purposes” (RA 7309)
2
  SC Administrative Memorandum No. 12-11-2-SC (effective March 18, 2014) on Guidelines for decongesting holding jails by enforcing the rights
of accused persons to bail and to speedy trial.

Chapter 6 Pursuing Swift, Fair, and Humane Administration of Justice | 85

of the detention facilities, and the prevention of and possible alignment with other regional and
torture cases. local structures.

In partnership with other organizations, the CHR Respective justice sector agencies will implement
will provide legal assistance to PDL and conduct the Justice Sector Convergence Program, under the
regular case monitoring to facilitate early and timely leadership of the JSCC within the agreed strategic
release of qualified PDL. framework. Initiatives will be anchored on individual
  agency mandates, programs, projects, functional
The DOJ and DILG will also coordinate with competencies, and institutional independence.
Congress to revisit and improve the country’s legal
and policy framework relating to the penal system The current COVID-19 pandemic presents a new
and restorative justice, taking into consideration the dimension in coordinated justice sector approach.
state obligations on the rights of PDL, offenders, and A business continuity plan will be drafted to
victims; public safety, and national security. This ensure sustained administration of justice. This
will include custody, reformation, and reintegration includes the formulation of a sector-wide national
of PDL, as well as improving the institutional emergency preparedness and response framework.
framework of penology and corrections. Coordination with and guidance from justice
sector agencies during emergency situations will
With the revised IRR of RA 10592, also referred to be facilitated relative to the legal framework,
as the Good Conduct Time Allowance (GCTA) Law, administration of justice, and protection of human
strict implementation will be ensured particularly rights.
on the exclusion of heinous crime offenders and
inclusion of transparency and accountability The justice sector will sustain the implementation
mechanisms. Non-custodial measures will be of the National Justice Information System, with
maximized, including release on recognizance and the support of the Department of Information
community service for arrested and charged persons, and Communications Technology (DICT) and
and probation, parole, and executive clemency for in compliance with the requirements of the Data
convicted persons. Rules and guidelines relative to Privacy Act. The DOJ, as the lead agency, will
probation, parole, and executive clemency will be update the Single Carpeta System to conform to
reviewed and improved in the interest of restorative the new IRR of the Expanded GCTA Law. The
justice for the offender and the victim. development of an information exchange platform
will be pursued with the DICT towards streamlining
inter-agency processes within the justice sector. The
Philippine Crime Index will also be made available
Improving sector efficiency and initially to justice sector agencies to harmonize
accountability crime and criminal justice data for legal research
and as reference for policy development.

Strengthen justice sector coordination. While the development of criminal justice

Coordination within the justice sector at the information exchange is underway, the SC,
national and local levels will be strengthened Philippine National Police (PNP), BJMP, BUCOR,
through the Justice Sector Coordinating Council and the Bureau of Immigration will proceed with
(JSCC) and its Justice Zones. The JSCC will establish the development and implementation of systems
additional sites subject to a thorough evaluation and and procedures for electronic transmittal and
calibration of implementing arrangements. This will documentation of warrants; hold departure orders;
include the governance mechanism, selection and and commitment, mittimus, and/or release orders.
establishment criteria, monitoring and evaluation,

86 | Updated Philippine Development Plan 2017-2022

Moreover, the justice sector agencies will continue Sector agencies will maximize the use of available
to participate in other established inter-agency ICT resources for the development and
mechanisms at the national, regional, and local implementation of their respective application
levels, with respect to governance, economic, and systems for core and frontline services, case
social development, peace and order, public safety, management, and administrative support processes,
and poverty alleviation. including monitoring and evaluation. The
development and use of the system for electronic
Enhance sector efficiency. Justice sector agencies transmittal of warrants and court orders to agencies
will continue to review and improve their systems concerned is ongoing. The Enhanced e-Warrant
and procedures in the context of the government’s System was launched by the SC and the Philippine
quality and performance management policies, National Police on September 8, 2020.
and in compliance with RA 11032.3 Sustained
administration of justice and delivery of services Increase transparency, accountability, and citizen
will be ensured amid public emergency situations. engagement. Justice sector agencies will continue
to participate in multi-sectoral mechanisms such as
Further, these agencies will work towards optimal established committees, councils, and engagements
access to and management of human, financial, with civil society organizations, for purposes of
and material resources. Efforts will be undertaken planning and policy development. The agencies will
to improve the staffing structure and increase work together through the JSCC in consolidating
the number of investigators, prosecutors, public and harmonizing their available data for better
attorneys, judges, jail and prison personnel, public information. This includes the provision of
parole and probation officers, support, and other timely public information, reports, and statistics
personnel, especially at the regional and local levels. for government and non-government stakeholders,
such as cases and services relative to the COVID-19
Justice sector agencies will establish a sustained pandemic and other emergencies.
and ICT-enabled competency framework and
development programs in accordance with civil Public information on the justice system, including
service policies, especially for prosecution, law access to legal remedies and assistance, will be
enforcement, court, legal service, frontline, continuously improved through agency websites
management, and vital support personnel. and other media and communication platforms.
Specialized trainings and other capacity building Online judiciary information platforms (i.e.,
activities will be harmonized among justice sector court locator, judicial application scheduler,
agencies to align with their functional mandates public assistance helpdesk) will be sustained and
and competencies. For lawyers, these will be maximized, including the accessibility of court
harmonized with their mandatory continuing legal details, to ensure easier facilitation of online filing
education. of complaint and grant of bails.

Coordination within the sector and with The National Economic and Development Authority
infrastructure oversight and land management and the Philippine Statistics Authority will develop
agencies will be improved specifically on planning, and implement governance measurement and crime
development, funding, project implementation, and victimization surveys, incorporating national and
maintenance of agency infrastructure. local surveys to engage the citizens in measuring the
performance of the justice system.

  “The Ease of Doing Business and Efficient Government Service Delivery Act of 2018” (RA 11032).
3

Chapter 6 Pursuing Swift, Fair, and Humane Administration of Justice | 87

Legislative Agenda
For the rest of the Plan period, the following legislative agenda will be pursued:

Table 6.2 Legislative Agenda to Pursue Swift, Fair, and Humane Administration of Justice

LEGISLATIVE AGENDA RATIONALE

Criminal, civil, and economic justice processes ICT-enabled and streamlined

Streamlining the criminal investigation process, This initiative seeks to redefine the role of prosecutors in relation to case
including the review of the standard of proof in buildup by law enforcers and preliminary investigation in relation to the
determining probable cause courts, and increase the threshold for filing criminal cases in court.

The proposed amendment aims to clarify the applicability to heinous

crime offenders; include transparency procedures; establish checks and
Amendment of the Expanded GCTA Act (RA 10592) balances, including the role of higher and court authorities (i.e., apart from
jail and prison authorities); and provide for corrective measures in cases of
erroneous grant of GCTA and release on account thereof.

Sector efficiency and accountability improved

Under this initiative, the distribution of courts under the Judiciary

Reorganization Act will be reviewed, in relation to the population per
Creation of new courts proposed court location, historical volume of filings, and the existing
dockets of the courts in that particular location. Where necessary, the
existing courts may be redistributed and new courts created as needed.

Amending its enabling law, RA 7309 will help increase compensation for
Strengthening of the Victims Compensation Program victims of unjust imprisonment or detention and victims of violent crimes
as well as their access to the program,and improve its administration.

This will help strengthen the CHR as a National Human Rights Institution
Establishment of the Commission on Human Rights (NHRI), compliant with the requirements of the UN Paris Principles
Charter affecting NHRIs worldwide. Among the requirements is ensuring NHRI’s
independence, including full fiscal autonomy.

Establishment of a Unified Penology and Corrections This action will address the fragmentation on the institutional framework
System of the penology and corrections system.

This will encourage coverage for more witnesses as well as maintained

Strengthening the witness protection and whistleblower coverage for them towards successful prosecution, especially of heinous
protection and high-profile crimes. Likewise, the Whistleblower Protection Program
will encourage and protect whistleblowers.

88 | Updated Philippine Development Plan 2017-2022

07
Promoting
Philippine
Culture and
Values towards
Bayanihan
CHAPTER 7

Promoting Philippine Culture

and Values towards Bayanihan
Culture is a dynamic and multidimensional aspect of development that spans across various
sectors and social groups, shaped by their histories, knowledge, and traditions. Values, on the
other hand, are the ideals shared by a group or a community regarding what is good or bad,
desirable or undesirable, acceptable or unacceptable. The pandemic disrupted the collective
way of life of Filipinos and the way they interact with one another. Physical distancing meant
limited social gatherings, and for some, isolation from their communities. It may be too
early to determine long-term effects of the pandemic to overall social capital. Yet, Filipinos
never get tired of finding ways to inspire each other through creative works and creative
solutions to respond to the crisis.

In building a high-trust society towards a healthy and resilient Philippines, the Philippine
Development Plan (PDP) 2017-2022 acknowledges the role that culture and values play
in development. Having a set of values that is shared within a society provides a common
ground where greater cohesion can be cultivated. Under the Malasakit pillar, this Chapter
invokes the Filipino spirit of bayanihan to enable the whole-of-government and whole-of-
society response and recovery from the pandemic by promoting cultural awareness and
understanding, inculcating values for the common good through a National Values Formation
Program, advancing creativity for social impact, and strengthening culture-sensitivity
in governance and development. Hence, culture is the background while shared values
are the guiding principles by which policies and programs will be developed to give flesh to
inclusive, sustainable, and people-centered development.

Assessment and Challenges

Assessment: The government’s greater awareness allied sectors such as tourism and sports and fitness,
and recognition of the role of culture in the were among the hardest hit due to the closure
country’s socioeconomic development prompted of businesses during the community quarantine
significant foundational efforts for the sector. period. These businesses have traditionally
However, the unprecedented impact of the operated around crowds and will need to be
pandemic exposed major policy gaps in the existing reinvented to operate under the new normal.
governance framework for cultural development
and the appreciation for diverse cultural Challenges: Incidences of discrimination and
expressions. For one, creative and cultural prevalent disinformation have been reported,
workers and enterprises, which include the arts, due in part to lack of awareness of our diverse
entertainment, and recreation sector, along with cultures. The Philippines has consistently shown

Chapter 7 Promoting Philippine Culture and Values towards Bayanihan | 91

generally weak interpersonal trust even under which also includes institutional trust and civic
the “old normal.” Major behavioral shifts such engagement, among other components.
as the implementation of physical distancing
measures and increased citizen engagement Transitioning to the new normal, cultural
online, are expected to further impact on and creative enterprises and workers,
social cohesion and level of societal trust. especially freelancers in the gig economy,
However, it may be too early to tell the long-term remain vulnerable.
effects of the pandemic to overall social capital,

Targets
Recognizing the difficulties in measuring culture outcomes as proxied by the previous set of indicators,
a new set of core indicators and corresponding targets have been identified as follows:

Table 7.1 Updated Plan Targets to Promote Philippine Culture and Values

BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

92.2
Pride of being Filipino increased (%)a N/A N/A N/A Increased
(2013)

Legatum Prosperity Index (LPI) - 60.51

60.5 61.5 62.5 62.5
Social Capital pillar score improvedb (2016)

86
LPI - Social Capital pillar percentile rank improvedb Top 15% Top 15% Top 15% Top 15%
(2016)

World Intellectual Property Organization (WIPO) - 22.1

22.6 Increased Increased Increased
Creative Outputs score improvedc (2016)

25
WIPO - Creative Outputs percentile rank improvedc 27 Increased Increased Increased
(2016)

Number of Regional Development Plans with culture 0

17 17 17 17
components increased (cumulative) (2016)

Percentage of local government units (LGUs) with

22.5
Local Culture and Arts Councils increased: 36.0 47.2 58.3 58.3
(2018)
Threshold = 1,715 (cumulative)d

Percentage of LGUs with local cultural inventories 3.7

55.8 75.5 94.8 94.8
submitted increased: Threshold = 1,715 (cumulative)e (2018)

Percentage of municipalities, cities, and provinces with

21.4 f
Indigenous Peoples Mandatory Representation (IPMR) 44.2 44.0 56.5 56.5
(2015)
increased: Threshold of P/C/M = 1,406

Note: 2020 targets were set prior to onset of the COVID-19 pandemic and retained in the midterm update. 2021, 2022, and end-
of-plan targets were adjusted to take into consideration the effects of the COVID-19 pandemic.
a
This indicator is taken from the PSA’s Functional Literacy, Education, and Mass Media Survey (FLEMMS), which is only
conducted every 5 years. Results of 2019 FLEMMS will be used as baseline for next Plan period. Reporting on FLEMMS-
generated indicators with no comparable 2013 figures will be deferred to the next Plan period. The next round of FLEMMS is
expected to be conducted in 2024.
b
New indicator included during the midterm update as proxy for “tolerance and respect for others enhanced.” The Legatum
Prosperity Index is the identified source for the “Social capital index” adopted by the World Economic Forum’s Global

92 | Updated Philippine Development Plan 2017-2022

Competitiveness Index 4.0 indicators. This pillar measures performance in terms of social cohesion and engagement (bridging
social capital), community and family networks (bonding social capital), and political participation and institutional trust
(linking social capital).
c
New indicator included during the midterm update as proxy for “level of awareness of cultural diversity increased.” This sub-
index of the World Intellectual Property Organization’s Global Innovation Index represents the contribution of creativity to the
overall innovation-based economy. This pillar measures performance in terms of: intangible assets, creative goods and services,
and online creativity.
d
Replaced the indicator “number of arts organizations and arts councils established per region.” Local Culture and Arts
Councils are mandated to draft annual cultural development plan to be integrated in the local development plan.
e
Replaced the indicator “number of cultural conservation management plans developed across all levels of government.”
f
Revised baseline during the midterm update from 7.0 percent to 24.1 percent. The 2015 baseline of 7.0 percent (a total of 2,707
LGUs) was based on actual accomplishment upon approval of the Implementing Rules and Regulations on IPMR in 2009 until
2015. Revisions to the IPMR Implementing Guidelines were finalized in 2018.

Strategic Framework
Establishing high trust among peoples and in Filipino spirit of bayanihan to enable a whole-of-
institutions, and focusing on the common good government and whole-of society response and
are key aspects in our pursuit of a socially-cohesive recovery. This will be done by raising awareness
society that will be vital in building a healthy, and understanding of our diverse cultures,
resilient Philippines. Recognizing the basic mission implementing a National Values Formation
of culture and heritage to strengthen values and Program based on our shared values, nurturing
identity, and enhance the quality of life, the revised Filipino creativity for social impact, and
strategic framework highlights the promotion mainstreaming culture-sensitivity in governance
of Philippine culture and values towards the and development.

Figure 7.1 Strategic Framework to Promote Philippine Culture and Values towards Bayanihan

Chapter 7 Promoting Philippine Culture and Values towards Bayanihan | 93

Strategies
Inculcating values for the integrity, excellence, and spirituality to increase
public trust in institutions (see Chapter 5).
common good
Values of malasakit, bayanihan, resilience and
A clearer understanding of our core values can pakikipagkapwa will likewise be emphasized
inform the appropriate interventions to influence through the use of various channels for values
people’s attitudes and behavior towards cultivating inculcation all throughout the country such
a sense of shared responsibility and building as formal and informal education systems,
a high-trust society. information campaigns, and values orientation
seminars, among others. Volunteerism across
Government will utilize the findings from the two various aspects of community life will be vigorously
recently completed studies on Filipino values 1 and promoted and pursued, in collaboration with
the We Recover as One report for this purpose. LGUs. This includes advocating the principles
and practices of volunteering within the family,
Implement a whole-of-government and whole- community, workplace, and greater society.
of-society National Values Formation Program.
Ongoing values formation programs formulated Finally, as much as values start within the family,
and implemented by different government values inculcation initiatives will be reinforced
agencies will be streamlined under a National through education beginning at children’s formative
Values Formation Program that will focus on years. Values such as cooperation, discipline,
the core values which are shared by Filipinos and a sense of shared responsibility as citizens
and which contribute to the achievement of the are also better practiced in constant dealings
country’s development goals. Based on the NCCA with others outside the family. Hence, under this
Study on Filipino Values, these include valuing Program, culture and values will be mainstreamed
family, education, faith, health and wellness, in the curriculum within the basic, technical-
basic needs, self, work and livelihood, peace and vocational, and higher education systems.
development, honesty and integrity, resilience,
life and purpose, human rights, environment,
love for country, happiness, kapwa, governance, Valuing our diverse cultures
culture, arts and sciences, and creative excellence.
Adopt resilience measures in the design and
Concerted action on values formation by all levels
use of cultural assets across the country,
of government, in partnership with various sectors
including historic and cultural infrastructures,
such as mainstream media, LGUs, and civil society
to address the new normal. Although strict
organizations, will ensure greater societal impact.
physical distancing measures will limit the use of
existing public cultural structures (i.e., museums,
Under this Program, the Civil Service Commission
libraries, performance venues), they can still
through its Civil Service Institute, will work toward
be reconfigured for other purposes such as for
ensuring that public officials and civil servants
heritage preservation and conservation or as
not only embody Filipino core values, but
workspaces for cultural workers who may not fully
exemplify the highest standards of patriotism,
transition to digital processes. Spaces that will not

1
The study commissioned by the NCAA titled “NCCA Study on Filipino Values,” identified a set of values shared by Filipinos which contribute
to the attainment of AmBisyon Natin 2040, while the study commissioned by NEDA titled “A Study on the Dimensions of Philippine Culture,”
measures aspects of culture that influence the achievement of national development goals.

94 | Updated Philippine Development Plan 2017-2022

immediately reopen to the public may be redesigned consolidate research works by relevant government
for such purposes, notwithstanding digitization agencies and independent organizations will be
efforts in these institutions. established to ensure that all documentations
are captured and used as bases for government
To ensure safe reopening of cultural spaces and interventions. The involvement of the academe
eventual resumption of cultural and creative and other research institutions in partnering with
activities, cultural agencies will coordinate with indigenous cultural communities and indigenous
the Department of Health, Department of Labor peoples (ICCs/IPs) as primary participants in
and Employment (DOLE), and Department of indigenous knowledge systems and practices
Trade and Industry (DTI) in crafting health and (IKSP) documentation initiatives will also be
sanitation guidelines. These include safety protocols encouraged. This is while ensuring that researchers
for production shoots, cinema and exhibition are properly briefed on the free, prior, and informed
venues, museums, libraries, among others, to consent (FPIC) process and communal intellectual
minimize the risk of transmission of COVID-19. property rights. On the other hand, the National
Commission on Indigenous Peoples (NCIP) will
The redesign or establishment of cultural structures, continuously review and enhance the guidelines on
especially open-space cultural parks or hubs in research and documentation of IKSPs, as well as the
the regions will be supported. This will be done FPIC process to balance the protection of IPs while
in collaboration with concerned agencies, such implementing projects. At the same time, NCIP will
as the National Commission for Culture and the continue to work with agencies and other partner-
Arts (NCCA), Film Development Council of stakeholders to facilitate and implement necessary
the Philippines (FDCP), National Library of the reforms to safeguard cultural expressions and
Philippines, and the Philippine Sports Commission uphold the cultural integrity of ICCs/IPs.
to ensure compliance with industry standards
for such facilities and ensure the health and Strengthen cultural diplomacy and promotions
safety of the general public. The establishment of overseas. Cultural cooperation agreements will be
culture hubs in Bohol and Davao Region, and the continuously forged to foster greater appreciation
establishment of open-space cultural parks and of Philippine culture and Filipino talents overseas.
hubs in other parts of the country will be pursued Efforts to promote Philippine culture and history,
in collaboration with LGUs. especially among overseas Filipinos (OFs), will be
strengthened. Trainings on cultural diplomacy for
Intensify the development, production, foreign service officers and foreign service staff
dissemination, and liberalization of access handling culture diplomacy activities will also be
to information on Filipino culture. Relevant intensified in collaboration with the Department of
agencies will develop resource materials more Foreign Affairs, DTI, Department of Tourism, and
extensively to ensure greater public access to culture agencies.
knowledge on culture and history. This is to curb
the lack of understanding of the diverse Philippine OFs will be encouraged and tapped to serve as
cultures which lead to misrepresentation, bias, cultural ambassadors in destination countries.
and discrimination, especially of indigenous Given the limitations brought by physical distancing
peoples and Muslim Filipinos. Technology will be measures, the government will carry out cultural
used to ensure effective knowledge dissemination diplomacy and promotions overseas through
and wider reach. To this end, the development of digital means as a way for OFs to maintain their
the Culture Portal under the National Government connection to their culture (also in Chapter 21).
Portal Project will be hastened. In cases where racism and discrimination against
migrant communities escalate abroad, cultural
Documentation and research on both tangible diplomacy programs will become vehicles in
and intangible heritage will be improved through raising awareness and understanding of Philippine
interagency research initiatives. Mechanisms to culture and cultural diversity among non-Filipinos.

Chapter 7 Promoting Philippine Culture and Values towards Bayanihan | 95

Advancing pagkamalikhain or The Philippines’ accession to the United Nations
Educational, Scientific, and Cultural Organisation
creative excellence (UNESCO) 2005 Convention on the Protection
and Promotion of the Diversity of Cultural
Promote a resilient and inclusive Philippine Expressions will be hastened. Being a party to the
creative economy. The creative economy roadmap Convention will provide the country’s creative
will be completed to serve as a policy framework industries, artists, and culture workers with
to strengthen resilience of cultural and creative opportunities to further build their capabilities
industries and address specific concerns of creative and capacities for creative production and
and cultural workers, especially freelancers in distribution across the world. Philippine cities,
the gig economy. The roadmap will consider which aim to become part of the UNESCO
the challenges posed by the Fourth Industrial Creative Cities Network, will also be actively
Revolution and the transition to a digital economy and adequately supported. Industry linkages
(see Chapter 9), as well as the current labor situation with international stakeholders will likewise be
among creatives. To ensure a whole-of-country promoted as a venue for the Philippine creative
approach to develop and promote the creative economy to be apprised of global trends and
industries, the establishment of appropriate to optimize opportunities for marketing and
coordinating mechanisms across different agencies distribution of creative content, products,
and stakeholders will be supported. and services.

To strengthen cultural and creative enterprises A Nation Brand will also be adopted as a unified
and workers’ resiliency against disruptions, framework to promote the Philippines and the
capacity-building interventions will be supported. Filipino identity to the rest of the world. Different
For creative enterprises, programs such as business government agencies and the private sector will
continuity planning, digitizing operations, work toward the convergence of various branding
knowledge transfer and information sharing, will and promotion campaigns of the government
be implemented. For creative workers especially for investments and trade, tourism, education
freelancers, skills retooling and upskilling programs, and sports, culture, diplomacy, among others.
along with continuing income support programs The Brand will articulate our collective aspirations
such as the NCCA Assistance Program and the as a nation and serve as a consistent marketing
FDCP Disaster/Emergency Assistance and Relief, strategy for Philippine goods and services
will be made available. (see Chapter 15).

Proper interventions to integrate creatives into Creativity will be cultivated as a vital skill and
the formal economy and ensure their welfare integrated in other disciplines to equip an agile
will also be pursued. This includes coordination workforce (see Chapter 10). Along this line, the
with relevant agencies such as DOLE, DTI, Social transformation of the Department of Education’s
Security System, and Bureau of Internal Revenue (DepEd) Science, Technology, Engineering,
to facilitate the registration of creatives and and Mathematics (STEM) Program to Science,
freelancers, and provide the creative sector greater Technology, Engineering, Arts, and Math (STEAM)
potential for economic advancement and better is a welcome development. Secondary level
social protection. schools that offer special program for the arts will
also be equipped with facilities and well-trained
teachers while establishing regional arts
academies. At the tertiary level, young people
will be encouraged to take specialized programs
on cultural education and arts to become future

96 | Updated Philippine Development Plan 2017-2022

culture and arts managers. Graduates of culture- Strengthening culture-
related qualifications 2 under the Technical
Education and Skills Development Authority sensitive governance
(TESDA) will also be connected to industries and and development
markets to promote creative excellence and for
them to enjoy income security. Pursue institutional and policy reforms for
cultural development. Existing governance
Create platforms and mechanisms to support structures and mechanisms for culture and the
Filipino creativity for collaboration and arts need to be strengthened. Thus, organizational
bayanihan. Creativity for social impact is a growing structures within and institutional arrangements
trend within the industry and will be encouraged among culture agencies will be reinforced, and
further. As the country lays down plans and challenges in coordination especially on policy and
policies that will formally and strategically ensure program implementation will be addressed. These
the economic and social benefits of supporting are likewise seen to greatly improve government’s
the creative sector, programming will focus on ability to protect, preserve, and promote our cultural
ensuring that digital and online platforms are and natural heritage in line with the country’s
maximized to provide Filipino creatives due overall development goals.
exposure through events, fairs, exhibits, shows, and
competitions. A showcase of the works of Filipino With the inclusion of culture and arts in the Seal
creatives elicits national pride and increases of Good Local Governance, LGUs are expected
awareness and appreciation of the country’s diverse to be more proactive in heritage management by
cultures. As part of the online and digital shift, incorporating heritage preservation, protection,
mechanisms to address cybersecurity concerns and promotion efforts into their local development
such as copyright infringement, especially of plans. Land use plans should also integrate
film and audiovisual content, will be established. protection and preservation of heritage. Capacity-
building programs and activities to ensure the
Artistic-scientific-technological collaborations will full functionality of Local Culture and Arts
be strengthened to stimulate innovations for Councils will also be institutionalized through
the common good (see Chapter 14). Examples collaborative work among the NCCA, LGUs, and
of such programs are DTI-Design Center of the Regional Development Councils. These include
Philippines’ (DCP) Good Design Philippines and developing capabilities for heritage documentation,
DepEd’s National Festival of Talents. Collaboration cultural mapping, planning, policymaking, and
and partnerships with the academe and private development. LGUs are especially encouraged
sector, including startups and creative hubs, will be to utilize a portion of their Internal Revenue
nurtured to facilitate the sharing of best practices Allotment based on the Department of Budget
in technological adaption and other innovations and Management’s Local Budget Memorandum
within the sector. Where possible, these linkages No. 78, s. 2019 for local heritage management
can also serve as a venue for Filipino creatives efforts. In implementing all these, the NCCA
to promote and distribute their works and to and the Department of the Interior and Local
establish networks with other groups. Government will be vigilant in the monitoring
of LGU compliance with the National Cultural
Heritage Act (RA 10066).

2
TESDA, in collaboration with the NCCA, has developed culture-related NC II qualifications in nine areas: (1) handloom weaving (upright loom);
(2) handloom weaving (backstrap loom); (3) beadworks and accessories making; (4) mat weaving and diversified product making; (5) basket
weaving; (6) embroidery; (7) wood carving; (8) paper mache making; and (9) pottery.

Chapter 7 Promoting Philippine Culture and Values towards Bayanihan | 97

The engagement of indigenous cultural Programs designed specifically for the needs of
communities, especially in the formulation of vulnerable sectors will be enhanced in line with
policies and measures that concern their ancestral the principle of respect for cultural diversity and
domains will be upheld so that IKSPs are respected cultural rights, notwithstanding community
and valued in terms of ensuring environmental quarantine protocols that limit social gatherings.
sustainability since cultural heritage is inextricably Particular attention will be given to groups with
linked to biodiversity heritage. This is especially diminished mobility under stricter quarantine
important for disaster risk reduction and rules and those who have limited or no access
building resilience in communities. The effective to the internet.
implementation of the Indigenous Peoples’
Rights Act (RA 8371) especially on the The Community-Based Skills Development
mandatory representation of indigenous peoples Program for indigenous peoples and indigenous
in local legislative councils and policy-making cultural communities under the TESDA and
bodies, will be ensured through the full NCCA will be supported under a blended
implementation of the new IPMR Guidelines. learning modality, as it enhances existing SLTs by
developing trainers from different regions. Access
Strengthen the protection of the right to access to cultural resources for Muslim Filipinos will be
cultural resources by whole-of-society, with improved, so they can participate in cultural life
special attention to the needs of vulnerable without fear of prejudice. Cultural infrastructure
sectors (indigenous peoples, women, youth and resource materials will be made accessible to
and children, persons with disability, senior persons with disabilities through technology and
citizens, and Muslim Filipinos). All Filipinos, innovative design. Programs that are responsive
regardless of age, gender preference, or to this strategy such as the Philippine Sports
socioeconomic situation, must have access to Commission’s Children’s Games, Differently-
cultural resources that enrich their minds, develop Abled Sports for Life, Indigenous Peoples’ Games,
their talents, build their identities, and promote and Women in Sports will have to be repackaged
the core Filipino values. Online and digital in light of community quarantine guidelines.
culture, arts, and heritage programs will be
designed to inspire bayanihan and support lifelong Strengthen mechanisms to measure, evaluate,
learning, creative collaboration, mental health coordinate, and consolidate efforts towards
and wellbeing, and cultural and heritage tourism, cultural development. The Philippine Cultural
among others. Statistics Framework (PCSF) will be implemented
as this generates the needed cultural statistics
Existing Knowledge Development Centers and indicators for evidence-based planning,
(KDCs), Institutes and Schools of Living Traditions policymaking, and programming. All agencies
(I/SLTs), Sentro Rizal, Arts Centers, museums, and civil society organizations that are
and cultural centers will improve on digital and directly engaged in any of the PCSF dimensions
online programs to continue their respective work will be mobilized toward this end. Given the
of transmitting knowledge and skills and cultural vulnerability of IP culture, the conduct of
dissemination. KDCs may already be integrated ethnographies of Philippine indigenous peoples
within the system of libraries; and wherever IT will be a priority. Similarly, statistics on Muslim
resources are accessible at the local levels, KDC Filipinos will be developed. Cultural and
online will be pursued. Necessary modifications creative industry mapping will be intensified by
on the design of I/SLTs will be made in line with DTI and NCCA to better inform planning and
physical distancing protocols to ensure the health programming for the sector through adequate
and safety of culture bearers and the general public. funding and LGU-level trainings.

98 | Updated Philippine Development Plan 2017-2022

Registries for the sector have become even more Institutionalize and intensify heritage
necessary in order to account for individuals and conservation and management in cultural and
firms affected by crises and for government to tourism development plans and programs.
provide them appropriate support. To supplement Heritage serves as the holder of our collective
the development of a registry of vulnerable memories and identity as a nation, and a reminder
persons, agencies such as the NCIP, National of our shared stories and experiences of resilience.
Commission on Muslim Filipinos, NCCA, DTI- As the country transitions into the new normal,
DCP, and FDCP, will improve the generation heritage conservation will be institutionalized
of registries for IPs, Muslim Filipinos, creative through cultural and tourism development
and cultural workers, and freelancers, and plans. Responsible entities mandated to preserve
coordinate the same with other social protection heritage structures and owners of cultural
programs of the government (see Chapter 11). properties will then ensure the development of
conservation management plans and stronger
implementation of related policies in preserving
heritage structures. Plans and programs on
the development of heritage preservation
and conservation experts will be initiated.

Legislative Agenda
In the two remaining years of Plan implementation, the Planning Committee on Culture will exert its efforts
toward the enactment of the following key legislations:

Table 7.2 Legislative Agenda to Promote Philippine Culture and Values towards Bayanihan

LEGISLATIVE AGENDA RATIONALE

This will amend Republic Act 7356 to strengthen and enable the NCCA to lead the protection, preservation,
and promotion of our cultural and natural heritage and the creative arts for inclusive development.
The amendments will pertain mainly to (a) establishing subnational offices that can promote, develop, and
Strengthening the NCCA
implement culture-related plans and programs at the local level and (b) reinforcing the NCCA’s coordinative
functions so that it can more effectively shepherd and direct activities towards the achievement of culture
outcomes, including the development of cultural and creative industries.

Ratifying this Convention will further promote and protect the works of the creatives in the country as the
UNESCO Convention on the
Convention focuses on the protection of the diversity of cultural expressions all over the world. It highlights
Protection and Promotion of the
the creative industries, which have become important drivers in the cultural and economic development of
Diversity of Cultural Expressions
nations.

Establishing the charter of the National Library of the Philippines will standardize public libraries across
Modernization Act for the
the country and ensure adequate funding to improve access to information and strengthen digital services,
National Library of the Philippines
thereby promoting full intellectual and cultural development of the Filipino people.

The proposed legislation seeks to encourage the production of quality films; strengthen competitiveness of
Filipino content and creative outputs in a digital landscape; address concerns on the welfare and capacity
Film Industry Development Act
building for local film and audiovisual artists, technicians, and workers; and enhance film preservation and
archiving.

The proposed amendments to certain provisions of the Commission on the Filipino Language
Komisyon sa Wikang Filipino Act (RA 7104) will help strengthen the protection and conservation of intangible heritage (i.e.,
(Commission on the Filipino languages in the Philippines) and will also serve as the enabling law that will operationalize Article
Language) Act XVI, Sections 6 and 7 or the Language provisions of the 1987 Constitution, following the recent
Supreme Court ruling that such provisions are not self-executory.

Chapter 7 Promoting Philippine Culture and Values towards Bayanihan | 99

PART III

TRANSFORMING
TOWARDS EQUITY
AND RESILIENCY
(“PAGBABAGO”)
08
Expanding
Economic
Opportunities
in Agriculture,
Forestry, and
Fisheries and
Ensuring Food
Security
CHAPTER 8

Expanding Economic
Opportunities in Agriculture,
Forestry, and Fisheries and
Ensuring Food Security
While the agricultural sector’s growth has remained weak over the last three years, major policy
reforms have created opportunities to pursue diversification and overall rural development.
There has also been an improvement in the delivery of support services focusing on small
farmers and fisherfolk (SFFs). In particular, the Rice Tariffication Law (RTL) (RA 11203) which
amended the two-decade old Agricultural Tariffication Act of 1996 (RA 8178), and replaces the
quantitative restriction on rice imports with tariff is considered the most important reform in the
agriculture sector. The Law will benefit the entire economy, particularly the Filipino consumers,
farmers, taxpayers and workers, and, most importantly, the poor. Rice farmers also benefit
from the Law, given the 60 billion pesos guaranteed Rice Competitiveness Enhancement Fund
(RCEF), which aims to increase productivity of the rice sector. RTL will also benefit: (a) taxpayer
as there is no need to subsidize the operations of the NFA, which has long been burdened with
debt; (b) workers as it keeps inflationary pressures low and therefore limits the erosion of real
wage; (c) children as more affordable rice keeps them healthy and not hungry; and (d) the poor
with the availability of cheaper rice given their limited budget. The low rice prices and lower
inflation help the country achieve its poverty reduction goals.

The country’s experience with the COVID-19 pandemic and community quarantines has
put greater emphasis on food security in the new normal. Thus, to contribute to the goal of
achieving a healthy and resilient Philippines, the Agriculture, Forestry and Fisheries (AFF)
sector shall focus on ensuring availability, accessibility, and affordability of nutritious food
while continuously addressing persistent challenges faced by the sector, particularly the
constraints to access to land and water resources, vulnerability to climate change and disaster
risks, limited strategic infrastructure, and long-standing institutional problems related to weak
extension services, over-centralization, and lack of coordination and overlapping functions
within and among agencies.

104 | Updated Philippine Development Plan 2017-2022

Assessment and Challenges
Assessment: The improvement in the delivery of and instant coffee. Nutritionally vulnerable groups
support services prioritizing small farmers and such as severely wasted and stunted schoolchildren
fisherfolk, complemented by major policy reforms who rely on school- and community-based feeding
(e.g., RTL, Sagip Saka Act, and Personal Property programs for healthy and nutritious food were
Security Act) created opportunities to pursue also affected due to the discontinuance of these
diversification and overall rural development programs with the closure of schools and daycare
in the long run. However, the performance of centers during the quarantine period.
the AFF sector in the last three years has been
weak due to climate/weather disturbances (e.g., Challenges: The pandemic has caused a shift in
El Niño, typhoons), pest and animal diseases, consumers’ preference towards safe and nutritious
weak global demand and increased competition food. As the sector moves to the new normal,
resulting in the decrease in value of top exports the following are still expected to persist: (a)
(e.g., coconut), and weak coordination and sporadic disruption in the agri-food supply chain,
convergence efforts among government agencies particularly in the transport and logistics of inputs,
and stakeholders. The emergence of the COVID-19 machinery and equipment, and farm produce;
pandemic and subsequent implementation of (b) limited movement of people involved in the
community quarantines also affected the sector transport of inputs and products, technicians,
with the disruption of agricultural activities and extension workers; (c) strict regulation of the
owing to stringent measures implemented by local operations of wet markets, supermarkets, and
government units (LGUs) on the movement of retail food establishments; (d) increased demand
agri-food products. As a result, agri-food supply for innovative technologies for processing and
chains were affected and many farmers were packaging to keep up with the demand for processed
unable to sell their produce. The movement of food products with longer shelf-life; and (e) reduced
people involved in the transportation of inputs and demand from institutional buyers for agricultural
products, technicians, extension workers, and even food items due to the decline in tourism and dine-
agricultural workers was also affected. Despite the in services. These emerging challenges, on top of
disruptions in various agricultural activities and existing issues such as constraints to access to land
losses encountered during CQ, the AFF sector and water resources, vulnerability to climate change
remains upbeat as farmers and fisherfolk still intend and disaster risks, limited strategic infrastructure,
to continue their respective agricultural activities. and long-standing institutional problems related to
Consumers, on the other hand, had difficulty weak extension services, over-centralization, and
accessing healthy and nutritious food during the lack of coordination and overlapping functions
CQs. In particular, vulnerable groups who rely on within and among agencies will put further pressure
relief packs during the ECQ are limited to rice, on the AFF sector.
canned goods, instant noodles, powdered milk,

Targets
The updated Plan aims to increase and maintain the labor productivity is targeted for the remaining plan
AFF gross value added (GVA) within 2.5 percent to period. Table 8.1 presents the targets corresponding
3.5 percent from the baseline of -1.2 percent in 2016. to the sector outcome indicators under this chapter.
Likewise, a reversal of the negative growth for the Targets for outcome indicators on food security may
value of production in fisheries, A&F exports, and be found in Chapter 11.

Chapter 8 Expanding Economic Opportunities in Agriculture, Forestry, and Fisheries and Ensuring Food Security | 105
Table 8.1 Updated Plan Targets to Expand Economic Opportunities in Agriculture, Forestry, and
Fisheries and Ensure Food Security

BASELINE VALUE TARGETS

OUTCOME/INDICATOR
(2016) 2020a/ 2021 2022 EOP

Sector Outcome 1: Sustainable and Resilient Production and Food Availability Ensured

Growth of GVA in AFF Increased (year-on-year at constant

(1.2) 2.5-3.5 2.5-3.5 2.5-3.5 2.5-3.5
prices, in percent)

a. Crops (3.2) 2.0-3.0 2.0-3.0 2.0-3.0 2.0-3.0

b. Livestock 4.6 3.0-4.0 2.0-3.0 3.0-4.0 3.0-4.0

c. Poultry 1.3 3.0-4.0 2.0-3.0 3.0-4.0 3.0-4.0

d. Forestry (7.6) 2.0-3.0 2.0-3.0 2.0-3.0 2.0-3.0

Growth in Value of Production of Fisheries Increased (year-on-year at constant prices, in percent)

a. Commercial (7.8) 2.5 1.0 1.0 1.0

b. Municipal (4.9) 1.0 3.0 3.0 3.0

c. Aquaculture 0.5 5.0 5.0 5.0 5.0

Growth in Labor Productivity of Farmers and Fisherfolk

(2.2) 4.7-6.2 5.2-6.4 5.4-6.6 4.9-6.0
Increased (year-on-year at constant prices, in percent)

Sector Outcome 2: Access to Markets of Small Farmers and Fisherfolk Increased

Growth in the Value of A&F Exports Increased

(0.1) 9.0 9.0 9.0 9.0
(year-on-year, FOB value, in percent)

Sector Outcome 3: Access of Consumers to Nutritious, Affordable, and Safe Food Improved

Prevalence of Moderate or Severe Food Insecurity in the Population based on the Food Insecurity Experience Scale
(See Chapter 11 RM)

5.1
a. Severely Food Insecure N/A N/A 0.0 0.0
(2019)

39.1
b. Moderately Food Insecure N/A N/A 25.8 25.8
(2019)

Source of baseline data: Philippine Statistics Authority

a/
The original 2020 targets, approved in 2016 prior to the pandemic, were retained.

Strategic Framework
In the remaining Plan implementation period, production and food availability, expanding access
the AFF sector will adopt a holistic value chain to markets by SFFs, and improving access of
approach, guided by science-based decision support consumers to nutritious, affordable, and safe food.
tools, towards ensuring sustainable and resilient

106 | Updated Philippine Development Plan 2017-2022

Figure 8.1 Updated Strategic Framework to Expand Economic Opportunities in Agriculture, Forestry,
and Fisheries and Ensure Food Security

Chapter 8 Expanding Economic Opportunities in Agriculture, Forestry, and Fisheries and Ensuring Food Security | 107
Strategies
To achieve the Plan’s targets, the following tools, different extension delivery modalities will
outcome-specific and crosscutting strategies will be be used depending on AFF stakeholders’ capacity
implemented (see Figure 8.1). Some of the strategies and access to information and communication
in this chapter are cross-referred to other chapters. technology (ICT). These will include the use of
blended learning platforms such as web-based
courses and applications; provision of offline
versions of these applications, particularly for those
Ensuring sustainable and with limited access to the internet; face-to-face
training in areas where it is applicable; and the use
resilient production and food of traditional media (e.g., radio, TV, and print, etc.).
availability
Pursue an ecosystems approach to fisheries
management, including operationalizing
Improving AFF productivity within ecological fisheries management areas (FMA)4 to provide
limit for a science-based, participatory, transparent
governance framework, and mechanism to
Optimize the use of science-based decision sustainably manage fisheries. With the issuance of
support tools and methodologies to improve Fisheries Administrative Order (FAO) 263, policies
resilience and productivity within ecological in managing fisheries will be based on the status
limit, and increase the income of farmers and and capacity of the stocks within the FMAs, taking
fisherfolk. The existing National Color-Coded into consideration its impact on the economic well-
Agricultural Guide (NCCAG)1 Map will be cascaded being of fisherfolk. To support this, the Bureau
to LGUs to assist farmers and other stakeholders of Fisheries and Aquatic Resources (BFAR) will
in identifying areas where crops could ideally be intensify its efforts in establishing and convening
grown based on soil type, climatic conditions, and the multi-sectoral Management Bodies (MB)5 in
bio-physical requirements. Promotion of existing the FMAs, and develop the Ecosystem-Approach to
crop management decision support tools such as Fisheries Management Plan (EAMP) guided by the
the Rice Crop Manager (RCM)2 and other farm result of the National Stock Assessment Program of
management tools (e.g. AgriDoc App, MOET App, the National Fisheries Research and Development
etc.)3 will also be intensified to provide timely, Institute (NFRDI). A Scientific Advisory Group
location-specific crop and nutrient management (SAG) composed of scientists, researchers, and
recommendations to more farmers to improve their technical representatives will also be established to
yield and increase farm income. To increase the provide policy support and technical advice to the
adoption of these science-based decision support MBs (see Chapter 20).

1
  Launched in March 2017. Thematic maps used were obtained from BSWM for the soils map, WorldClim and DOST-PAGASA for climate data,
DENR-MGB for geo-hazard maps, and PSA and NAMRIA for political boundaries. The NCCAG includes data on crop suitability, agro-ecological
zone, ground water availability, rainfall, temperature, poverty incidence, and farmers’ demographics, among others.
2
  Based on research trials, RCM can increase yields and added net benefit when farm lots normally yield below 7 tons/ha at 14% moisture. For
farm lots with normal yield of 7 tons/ha and above at 14% moisture, benefit from RCM could be very small or negligible.
3
  The AgriDoc App developed by PhilRice is a farm management tool which can keep records on expenses and farm activities. It also allows
farmers to view their farm area through Google Maps. The Minus-One Element Technique application (MOET App) is an Android-based app
developed to complement the soil diagnostic tool MOET kit. It computes for fertilizer recommendations and yield estimates based on the pot-
based fertilizer trial to identify significant nutrient elements lacking in the soil.
4
  Based on FAO 263, FMA is a bay, gulf, lake, or any other fishery area which may be delineated for fishery resource management purposes. It
provides that for purposes of sustainable fisheries management, 12 FMAs in Philippine waters are established, based on considerations of stocks
boundary/range/ distribution, structure of fisheries, as well as administrative divisions, and undertaken through consultation based on stocks and
fisheries distribution.
5
  MB in FMAs is composed of representatives from multi-sectors of fisheries such as LGUs, municipal and commercial fisheries, aquaculture,
processors and traders, academe, NGOs, indigenous peoples, and other relevant NGAs.

108 | Updated Philippine Development Plan 2017-2022

Strengthen the promotion of intercropping in barangays and schools with vacant areas. The
and integrated farming systems. Promotion community/backyard gardens may serve not only
of intercropping (e.g., corn or pineapple under as a source of nutritious food and livelihood but
coconut, etc.) and integrated farming systems also as additional income for those who will sell
such as livestock-crops (e.g., integrated rice- their surplus. Production inputs such as seeds/
duck farming system6, crops-livestock-fish seedlings, soil, compost, and initial stock (e.g., small
(e.g., Palayamanan),7 and agro-forestry will be ruminants, chicken, ducks, etc.) will be provided
strengthened to maximize the use of land, improve as start-up kits, complemented with skills training
resiliency, and enhance sustainability. SFFs shall on sowing of seeds and proper management,
be provided with capacity building and retooling composting, and pest disease management, among
on appropriate cropping systems and technologies others. Registration processes and reporting
(e.g., suitable crops or combination of crops/ requirements will need to be streamlined for more
livestock/fish, and management techniques, efficient assistance to investors/firms pursuing
etc.) to help them not only in increasing their urban agriculture, particularly modern methods
productivity and income but also contribute to the of growing plants and fish such as hydroponics,
sustainable and efficient use of natural resources, aeroponics, and aquaponics. (See Chapter 11)
and increase resilience. With intercropping
or integrated farming, there will be increased Effectively implement RCEF in a timely manner
diversity which can result in lower risk of pest to assist rice farmers during the transition period
and disease problems (i.e., better management of given the removal of the quantitative import
pest outbreak), increase insect and soil microbial restrictions (QR) on rice. The RTL aims to make
diversity, and higher probability that at least rice accessible and affordable to all Filipinos,
one species or crop can withstand the weather particularly the poor who spend about 29 percent
disturbances. Likewise, viable technologies on of their total food expenditure on rice. It also
sustainable land management such as soil health established a Rice Competitiveness Enhancement
management through balanced fertilization to Fund (RCEF), with an annual allocation of PHP
improve soil quality and land productivity will be 10 billion for six years, to enhance the productivity
made accessible to SFFs. and competitiveness of rice farmers by providing
them: (a) farm machinery and equipment, (b) high-
Intensify the promotion of urban agriculture, yielding seeds, (c) low-interest credit, and (d) skills
backyard/household gardening of edibles training programs on farm mechanization and
and backyard animal raising, and community modern farming techniques. The tariff collection,
gardening. Given the importance of ensuring in excess of PHP 10 billion, will still be provided
a steady supply of food, urban households and to rice farmers for (a) cash transfer program, (b)
communities will be encouraged to produce fresh titling of rice lands, (c) crop insurance, and (d)
and healthy food from their backyards and spaces. crop diversification. For the cash transfer program,
The DA, in partnership with other government it will be a short-term measure of the government
agencies, LGUs, and the private sector, shall while the rice industry is in transition and will
intensify the promotion of urban agriculture, prioritize farmers most affected by the drop in
subsistence backyard/household gardening farmgate prices.
and animal raising, and community gardening
through the establishment of community gardens

6
  The integrated rice-duck farming system grows rice and ducks together in an irrigated paddy. The paddling movement of the ducks stimulates
plant growth, while duck manure naturally fertilizes the soil. The ducks also eat the harmful insects and weeds, thus eliminating the need for
pesticides and herbicides.
7
  Palayamanan is a model of diversified integrated rice-based farming system developed and established by PhilRice composed of synergistically-
compatible farming ventures such as rice, onion, poultry, livestock, and aquaculture. Under this system, the livestock transform plant residues and
by-products into edible high-quality protein and manure, which is then applied to crops as organic fertilizer to increase crop productivity.

Chapter 8 Expanding Economic Opportunities in Agriculture, Forestry, and Fisheries and Ensuring Food Security | 109
Intensifying development and adoption of Intensify the provision of appropriate farm
modern, climate- and disaster-resilient and fishery machineries, equipment, and
production technologies facilities. The government will intensify its
efforts in facilitating the use of farm and fishery
Accelerate irrigation development, especially the machinery, equipment, and facilities based on the
construction of disaster- and climate-resilient appropriateness of technology to local needs and
small-scale irrigation systems and retrofitting conditions to raise the efficiency of farm operations
of existing ones, to be guided by a National and reduce production costs and post-harvest
Irrigation Master Plan (NIMP). This includes the losses. In consideration of the new normal, more
financing of the modernization of priority irrigation farm machinery and equipment will need to be
systems, quick response for restoration works provided in lieu of manual labor, given the need
in disaster-prone areas, and regular preventive to limit the movement of people and sustain the
operations and maintenance for optimal production practice of social distancing.
for the year-round cropping (see Chapter 19). In
addition, to support sustainable consumption and In line with the implementation of the Agriculture
production (SCP) initiatives, proper use of water- and Fisheries Mechanization (AFMECH) Law,
saving and water-harvesting technologies such as the Agriculture and Fisheries Mechanization
alternate wetting and drying (AWD), rotational Engineering Resource Network (AFMechERN)
method, rainwater harvesting, and solar-powered will be regularly updated to provide timely
irrigation8 will also be promoted in areas where it and reliable data on existing agri-fishery
is applicable. The protection, rehabilitation, and machineries, equipment, and facilities, as well as
management of critical watersheds for irrigation other mechanization-related information. The
are critical counterpart interventions to ensure Agricultural Machinery Testing and Evaluation
sustainable water supply (see Chapter 20). Center (AMTEC)9 in Los Baños, Laguna, will
be capacitated to expand its services for testing
Intensify research and development (R&D) and evaluation of: (a) imported machinery and
activities for AFF, including the development and equipment for domestic distribution; and (b)
commercialization of appropriate technologies to locally-developed machinery and equipment
improve productivity, reduce post-harvest losses, prior to its commercialization as mandated by
and enhance risk resilience. Implementation the AFMECH Law (See Chapter 9). The local
of activities supporting the development and manufacturers of equipment and machinery will
commercialization of climate- and disaster-resilient also be supported by providing them with training
technologies such as high-yielding and stress- on the design, fabrication, operation, testing, and
tolerant crop varieties, fish species, and animal evaluation of equipment and machinery, and
breeds will be intensified. Innovators and discoverers providing appropriate incentives.
of these mature technologies will be linked with
prospective investors to facilitate technology Enhance the capacity of farmers and fisherfolk to
transfer and adoption (see Chapter 9). Advanced adopt new and better technologies. This will be
and emerging technologies (e.g., biotechnology, done through a ladderized approach that includes:
genomics, nanotechnology) will also be explored (a) establishment of technology demonstrations or
to address the challenges and vulnerabilities of the learning sites to introduce and showcase the success
AFF sector. of new or innovative technology using blended

8
  AWD is a water-saving technology that farmers can apply to reduce their irrigation water consumption in rice fields without decreasing yield.
Rainwater harvesting is the collection of rain or runoff for productive purposes. Solar powered irrigation uses the sun’s energy to power a pump
which supplies water to crops.
9
  AFMech Law designated AMTEC as the premier and reference testing center of agricultural and fisheries machinery in the country. The law
further states that AMTEC shall assist in the formulation of quality, safety, and performance standards of agricultural and fisheries machinery and
provide technical assistance in the establishment of testing centers in other parts of the country.

110 | Updated Philippine Development Plan 2017-2022

learning platforms; (b) scaling-up of successful Increasing and protecting access of small
learning sites to serve as strategic demonstration farmers and fisherfok to land and water
areas for innovative and sustainable farming and resources
fishing; and (c) development of these learning sites
and expansion to farm tourism sites as additional Fast-track and complete the parcelization10 of
livelihood opportunities for farmers and fisherfolk. collectively-titled awarded lands and generation
SFFs will also be provided with quality advisory of individual titles to address investor uncertainty
and technical services which include on-demand and facilitate investments in agrarian reform
knowledge-sharing and advisory on production areas. The incomplete land ownership transfers
and post-production technologies through blended to agrarian reform beneficiaries (ARB) – from
learning platforms. collective to individual titles – has been a long-
standing issue which erodes investor confidence on
Strengthen the AFF extension system as a whole. lands awarded under the Comprehensive Agrarian
To facilitate diffusion and increase adoption Reform Program (CARP). The parcelization
of modern, climate- and disaster-resilient/ process has encountered delays in the validation
responsive technologies, an effective AFF extension of individual ARBs listed in the collective
system should be in place. To support this, the Certificates of Land Ownership Award and in the
implementation of the following strategies will identification of actual occupants of the subject
be strengthened: (a) improve competencies of landholdings. Legal issues are likewise confronted
agriculture extension workers (AEWs), trainers, such as in the reconstitution of titles and inclusion/
and other extension agents through continuous exclusion cases. To address this, the coordination
provision of capacity building and retooling to and collaboration of the Department of Agrarian
enhance their knowledge and skills on recent AFF Reform (DAR) with CARP Implementing Agencies
trends, technologies, and sustainable practices (e.g., (IA) should be strengthened with the intent of
organic agriculture, integrated farming systems, streamlining the parcelization process. In addition,
etc.); (b) develop new or modify existing extension the DAR and CARP IAs should be capacitated
modalities, methodologies, and approaches that are on the latest modern survey technologies and
fit to the changing extension contexts (e.g., use of equipment to fast track the documentation and
combinations of digital technology and traditional reconstitution of lost/missing titles and those with
media or blended learning platforms, instead of erroneous land surveys.
face-to-face training); and (c) intensify accreditation
of private extension service providers and training Strictly enforce and monitor the implementation
facilities to serve as partner organizations and of existing laws, rules, and regulations on
venues. The DA will also engage in joint ventures land reclassification and conversion. The Joint
and convergence with other government agencies Memorandum Circular11 on the implementation
(e.g., TESDA, LGUs, etc.), the business community, of Memorandum Circular 54 should be revised
and other stakeholders in upgrading the operation, to strengthen the land use reclassification process
and improving the effectiveness of the AFF and the functions of concerned agencies. The
extension system and enhance inter-institutional inter-agency committee with representatives from
linkages between R&D and extension. DA, Department of Agrarian Reform, Department
of Human Settlements and Urban Development
(DHSUD), National Irrigation Administration

10
  Parcelization of landholdings with Collective Certificate of Land Ownership Award (CCLOA) is the process of subdividing and determining the
exact metes and bounds of the areas, allocation of lots to ARBs in a CCLOA, determination of common use areas, portions with common service
facilities, and establishment of areas capable of being alienated and disposed of by the government. DAR Executive Order No. 02 s. 2019.
11
  Joint HLURB, DAR, DA, DILG Memorandum Circular, dated March 21, 1995, Prescribing the Guidelines to Implement MC 54 (The
Authority of Cities and Municipalities to Reclassify Lands Within the Limits Prescribed by Section 20 of RA 7160 Otherwise Known as the Local
Government Code of 1991).

Chapter 8 Expanding Economic Opportunities in Agriculture, Forestry, and Fisheries and Ensuring Food Security | 111
(NIA), Department of Environment and Natural Provide efficient transport and logistics systems
Resources (DENR), Department of the Interior to link production areas to markets and
and Local Government (DILG), and NEDA, ensure unhampered movement of A&F goods
among others, should also be reactivated. A and services. This involves the establishment/
database system will be developed as a repository construction of sufficient and strategically-located
of land reclassification information and as a tool for facilities such as wholesale food terminals and
decision-making by the inter-agency committee. trading centers, warehouses, cold storage and
A memorandum circular for Section 65 of the refrigeration facilities, mobile storage, mobile
Comprehensive Agrarian Reform Law (RA 6657) marketplaces, rolling stores, foodbanks, and
also needs to be issued to streamline and harmonize processing facilities that are linked with an
the actions of stakeholder government agencies on interconnected transport system to ensure the
the land-use conversion process. These proposed continuous flow of A&F goods and services.
measures will be accompanied by additional Transport options should also be expanded to
manpower both at the national and sub-national include the use of tramlines, cable lines, and
(i.e., regional, provincial) levels to enforce the animals to transport agricultural products as cost-
rules and procedures and fast track the processing effective alternatives, especially for linking remote
of land use reclassification and conversion. upland communities to markets.

Issuance of the guidelines by the BFAR on the For fisheries, more Community Fish Landing
delineation of municipal waters for LGUs with Centers (CFLCs) will be established in strategic
off-shore islands (see Chapter 20). areas that will serve as landing and fish trading
hubs. CFLCs will have post-harvest equipment and
Establish a regulatory framework and formulate facilities to enable fisherfolk to preserve the good
specific guidelines on implementing usufruct12 quality of their fish and fishery products and sell at
arrangement for AFF purposes. While usufruct a competitive price. CFLCs will also be opened as
rights have been used in the Philippines for venues for skills training on fish processing, value-
housing projects (e.g., Southville 3 Muntinlupa adding, and fisheries conservation and protection
Housing Project and Taguig City Social Housing (see Chapter 20 and Chapter 9).
Project),13 this arrangement may also be explored
for AFF purposes to aid in the optimal utilization In addition to domestic logistics systems,
of existing lands. However, there is a need to international trade processes for A&F goods
establish a regulatory framework and formulate and services will be streamlined and enhanced
specific guidelines to clearly define the usufruct to ensure non-disruption of flow of goods and
arrangement for lands to be used for AFF purposes services (see Chapter 9 and Chapter 15).
in order to protect the rights of farmers as well as
the property owner. Strengthen online marketing of agriculture and
fishery products, including the establishment of
online or digital channels for transactions and
delivery services. With the continuing policy to
Expanding access to markets practice social distancing under the new normal,
of small farmers and fisherfolk supermarkets and retail establishments of A&F
products will be encouraged to establish online
Increasing access to digitally-supported or digital channels for transactions and delivery
value chains services. The DA can expand the reach of the

12
  Usufruct is the right to enjoy the property of another, with the obligation of preserving its form and substance, unless the title containing it or
the law provides otherwise (Article 562 Civil Code of the Philippines).
13
  Innovative Urban Tenure in the Philippines: Challenges, Approaches and Institutionalization. UN Human Settlements Programme, 2012.

112 | Updated Philippine Development Plan 2017-2022

recently launched eKadiwa14 to urban areas outside government. The national government and LGUs
Metro Manila and expand the mode of payment will be encouraged to directly purchase from
and delivery service providers. In areas where food SFF groups to supply their food requirements
and grocery deliveries are not available, an online for supplementary feeding programs and relief
service delivery system where buyers send a list of operations. Technical assistance in terms of
items to buy to a pabili service provider may be market matching and guidance in the government
explored as an option. Parallel to this, a registry procurement process should be provided. (See
system for online sellers or deliveries should be Chapter 11)
established to monitor and regulate the movement
of people engaged in such transactions. Farmers Intensify the implementation of the Philippine
and fisherfolk should likewise be encouraged to Competition Law and the Price Act to regularly
make use of digital payment systems (i.e., online monitor the price of food and essential
or app-based financial technologies), particularly commodities and address anti-competitive
in receiving/accessing payments for their produce. trade practices and illegal price manipulation.
  The Philippine Competition Commission (PCC)
Organize small farmers and fisherfolk into will be vigilant in monitoring anti-competitive
formal groups and promote farm and fishery practices that affect fair trade such as cartels,
consolidation and clustering arrangements price-fixing, and market division/allocation,
to bring about economies of scale. Farm among others, to ensure fair competition in the
consolidation (e.g., sugarcane block farming, etc.) market for the benefit of both consumers and
and clustering arrangements among small and businesses. The DA and the Department of Trade
medium growers will be promoted, particularly in and Industry (DTI), in coordination with the
production, processing, and value-adding activities LGUs and accredited consumer groups, will also
to take advantage of communal inputs and intensify monitoring and enforcement activities to
economies of scale. By organizing SFFs into formal protect consumers from illegal price manipulation
groups, SFFs will increase access to support services to ensure that prices of basic necessities (e.g.,
(e.g., formal credit, modern farm technologies and rice) and prime commodities,15 which include
machinery, capacity building, livelihood projects, agricultural products, are at reasonable levels at all
etc.) and enable them to meet the demand of larger times.
agribusiness enterprises and institutional buyers.
Increasing AFF-based enterprises
Link small farmers and fisherfolk groups
to government nutrition programs (e.g.,
Strengthen AFF sector linkage to industry sector
supplemental feeding programs, etc.), hospitals,
through innovative production, processing,
and other facilities, as suppliers. Safe and nutritious
value-adding, and marketing schemes. Pursue
A&F products such as fruits, meat, fish, vegetables,
contract-growing arrangements, corporate farming,
and dairy products can be supplied by SFF groups
and other forms of linkages to integrate small farmers
to school children or individuals and families
and fisherfolk and micro-, small, and medium
affected by any disaster by linking SFF groups to
enterprises (MSMEs) into larger agribusiness
supplementary feeding and relief programs of the
enterprises. Consolidating or clustering SFFs and

14
  The digital marketing platform of the DA’s Kadiwa ni Ani at Kita which provides an easier and safer way for farmers and fisherfolk to sell their
produce and access to fresh and nutritious agri-fishery products for consumers.
15
  According to the Price Act (RA 7581), basic necessities include rice; corn; bread; fresh, dried and canned fish and other marine products,
fresh pork, beef and poultry meal; fresh eggs; fresh and processed milk; fresh vegetables, root crops; coffee; sugar; cooking oil; salt; laundry soap;
detergents; firewood; charcoal; candles; and drugs classified as essential by the Department of Health (DOH). Prime commodities, on the other
hand, include fresh fruits; flour; dried processed and canned pork; beef and poultry meat; dairy products not falling under basic necessities;
noodles; onions; garlic; vinegar; patis; soy sauce; toilet soap; fertilizer; pesticides; herbicides; poultry; swine and cattle feeds; veterinary products
for poultry, swine and cattle; paper; school supplies; nipa shingles; sawali; cement; clinker; GI sheets; hollow blocks; plywood; plyboard;
construction nails; batteries, electrical supplies; light bulbs; steel wire; and all drugs not classified as essential drugs by the DOH.

Chapter 8 Expanding Economic Opportunities in Agriculture, Forestry, and Fisheries and Ensuring Food Security | 113
MSMEs will also allow product consolidation, of ancillary services (e.g., trucking, packaging,
expand supply to existing markets, and open up warehousing, etc.) through the use of digital
new markets, thereby increasing their income. To platforms and other appropriate media. This
further enhance market access, the government will guide their market decisions and facilitate
will strengthen the conduct of market-matching networking among players in the value chain. (See
activities such as local (national, provincial, and Chapter 9 strategy on supporting business-matching
regional) and international trade fairs, roadshows activities)
and exhibits, business trade missions, and other
promotional activities. (See Chapter 9) The utilization of ICT tools such as the Supply
Chain Analytics (SCAn) Dashboard and SCAn
Capacitate small farmers, fisherfolk, and MSMEs Reporter should also be encouraged among AFF
in diversifying into commodities with high value- stakeholders to ensure the unhampered flow of
adding and market potential. The transition goods and inputs. The SCAn Dashboard is an
period brought about by the liberalization of important tool for both the government and
the rice industry offers an opportunity where private sector to be aware of ground-level issues
uncompetitive rice farmers can pursue more identified by supply chain players that need to be
profitable farm commodities. To support this, addressed. SCAn Reporter can help stakeholders
capacity building activities for diversifying into report problems encountered in the supply chain
commodities with high-value adding and market (e.g., quarantine control point problem, permit-
value will be provided to SFFs and MSMEs. These related problem, regulations, goods overpricing,
activities will include processing, understanding and real-time road closures, traffic, and accidents)
markets, proper product handling and packaging, and submit such information to the Dashboard.
and ensuring food safety and quality standards.
For instance, for coconut-based exports, the Encourage the private sector to invest in agri-
development of high-value by-products such based enterprises. Particular attention will be
as coco water, coco sugar, and other emerging given to the development of local and export
product lines will be supported to maximize their markets for agricultural products (i.e., halal and
export potential and help manage and reduce the organic products). Public-private partnerships
impact of shocks brought about by volatility in will be employed to pursue the establishment of
domestic and world prices (see Chapter 15). agro-industrial hubs, A&F business incubators,
and regional technology parks to support an
Adopt Geographic Indications (GIs)16 to improve environment that would foster innovation and
the marketability and traceability of products and technology transfer to facilitate a vibrant A&F
ensure quality standards. This is to increase and technology-based entrepreneurial system.
create awareness and knowledge on GIs, improve
the capacity of technical personnel and other The implementation of the Sagip Saka Act of
stakeholders relative to the intellectual property 2019 (RA 11321) will also be fast-tracked to
component of GIs, and formulate the regulations provide SFFs with greater opportunities to
for GIs (see Chapter 9). engage in entrepreneurial activities through the
implementation of the Farmers and Fisherfolk
Establish and/or update, and increase access of Enterprise Development Program under the law.
SFFs and other AFF stakeholders to timely and Aside from providing various forms of assistance
reliable agricultural market information systems. to SFFs (e.g., improvement of production and
This should include the provision of information productivity, improvement of producers’ and
on prices, buyers, suppliers/sellers, and providers entrepreneurs’ access to financing, access to

16
  Geographical indications are signs which identify a good as originating in a particular region or locality, where a given quality, reputation, or
other characteristic of the good is essentially attributable to its geographical origin. GIs are considered a useful tool for economic growth and
sustainable development, particularly in rural areas.

114 | Updated Philippine Development Plan 2017-2022

better technologies, and provision of business minimal or no collateral, and fewer documentary
support and development services), RA 11321 requirements. The DA can also expand the Kapital
also encourages private sector partnership or Access for Young Agripreneurs (KAYA) to finance
alliances between farmers and fisherfolk to engage the capital requirements of start-up or existing
in enterprise development and improve market projects of young agripreneurs which intend to
access of producer groups. reach out and convince Filipino youth to engage
in AFF ventures. Moreover, SFF’s awareness
Strengthen community-based enterprises in of available innovative and affordable credit
upland communities. The government will programs will be increased through marketing and
continue to implement and monitor programs promotion activities (e.g., radio and TV plugs and
and projects that foster community-based guestings and brochures and pamphlets).
enterprises in upland areas. Provision of training
and extension support services in these areas will Expand agricultural insurance coverage. The
be through a farmer-to-farmer approach where institutional capacity and capitalization of the
farmers serve as extension agents and are part of Philippine Crop Insurance Corporation (PCIC)
technology generation and dissemination. need to be strengthened and augmented to expand
the provision of agricultural insurance services.
With its current manpower and budget, PCIC was
Increasing access to innovative, affordable,
able to provide insurance coverage for only 3.1
and adequate financing
million farmers and fisherfolk in 2019, as compared
to the 10 million registered in the Registry System
Provide access to affordable formal credit to
for the Basic Sectors in Agriculture (RSBSA). Also,
start, restore, sustain, and expand AFF-based
because of limited budget and subsidies, increasing
livelihood activities and businesses. The outreach
penetration rate among farmers has an apparent
of formal private sector credit and other financial
trade-off on the amount of insurance coverage,
services will be extended through the facilitation
which is inadequate to cover production costs.
of data sharing among lending institutions to
Despite this, the PCIC will continue to expand
determine the financial needs of SFFs, and target
coverage by engaging in partnership agreements
and prioritize areas where such interventions
with more LGUs, with the latter paying the
are most needed. Corollary to this, the financial
insurance premium of farmers and fisherfolk
literacy and credit worthiness of SFFs and agri-
not covered by RSBSA while the registry is being
based MSMEs will be enhanced to help them
updated. The PCIC can also expand coverage for
avail of formal credit. Credit enhancement will be
other causes of default such as income loss from
provided by the Philippine Guarantee Corporation
not being able to sell/market their produce and
through intensified advocacy and expansion
low prices. In terms of facilitating faster payouts
of its agricultural guarantee services, as well as
of indemnity claims, the PCIC will continue to
the establishment of more credit surety funds
develop and commercialize the implementation of
spearheaded by the BSP. Creation of the personal
innovative index-based insurance programs.
property security registry under the Personal
Property Security Act will also be pursued. (See
Chapter 15)
Improving access of
Continue to implement credit programs with
low interest and flexible terms for SFFs and AFF-
consumers to nutritious,
based enterprises. The government will continue to affordable, and safe food
develop and implement innovative and affordable
financing facilities, such as the Production Enforcing food safety standards and
Loan Easy Access and Survival and Recovery regulations
Assistance programs of the DA, which prioritizes
loans for marginalized SFFs at low-interest rates,

Chapter 8 Expanding Economic Opportunities in Agriculture, Forestry, and Fisheries and Ensuring Food Security | 115
Strictly implement food safety measures, Cross-cutting Strategies
quarantine procedures, and other existing
rules and regulations in managing risks and
addressing food safety and quality standards. The following cross-cutting strategies will also be
Recognizing that risks may abound in all segments implemented:
of the value chain, producers, processors,
transporters (including online deliveries), vendors, Strengthen coordination and convergence of
and consumers will adopt food safety, quality, government agencies in undertaking joint
and quarantine measures. The measures allow planning, monitoring, and budgeting for
traceability of products to support the targeting priority programs and projects. Joint planning,
of regulations and regulatory actions to specific monitoring, and budgeting among AFF-related
sources of risks. There is also a need to strengthen, agencies will be pursued to ensure complementation
harmonize, and streamline regulatory services and in the implementation of priority plans, programs,
development of standards to ensure safe and quality and projects. For instance, the DA, DTI, and other
products, facilitate trade, and promote ease of related agencies in consultation with AFF/industry
doing business. This will include the rationalization players, will work together in the formulation of
and strengthening of national and regional commodity/industry roadmaps to complete the
laboratories to guarantee accurate data on crucial linkage between the AFF sector and the industry.
laboratory test requirements for regulatory and
enforcement purposes and standards development. Utilize and regularly update the A&F
Corresponding skills and competencies needed management information systems as a strategic
by the AFF stakeholders (e.g., SFFs, extension targeting mechanism for identification and
workers, etc.) on areas of sanitation and hygiene, prioritization of beneficiaries and agriculture-
good manufacturing practice (GMP), good related programs and services (e.g., RSBSA,
agricultural practices (GAP), good aquaculture ABEMIS, etc.). Existing management information
practices (GAqP), and good animal husbandry systems such as the Registry System for Basic Sector
practices (GAHP) will be provided to ensure food in Agriculture (RSBSA) should be used as a primary
safety and quality standards. reference in targeting beneficiaries of agriculture
and fishery programs and projects. The RSBSA will
also be regularly updated, harmonized, and cross-
Increasing development and adoption of food referenced with existing registries such as the
preservation technologies Municipal Fisherfolk Registry (FishR) of BFAR,
Listahanan or the National Household Targeting
Develop processing and packaging technologies System for Poverty Reduction (NHTS-PR) of the
to prolong shelf-life and improve nutritional Department of Social Welfare and Development
content of agriculture and fishery products. The (DSWD). These registries will also be cross-
shift in consumer preferences to healthier diets referenced with the Philippine Identification
and the increased demand for processed food with System when it becomes available.
longer shelf-life calls for further expansion of R&D
programs focused on innovative technologies The DA initiative on establishing an online platform
for processing and packaging. This can be done for transparency, inter-agency data sharing, and
by intensifying support for public research a science-based approach to FMR planning and
institutions, state universities, and colleges in implementation will be enhanced to develop an
producing safe, nutritious, medicinal, therapeutic, Integrated Road for Agriculture Development
and well-packaged agri-food products that are (IROAD) that will store, consolidate, and manage
commercially viable. Partnerships and joint GIS-based data of all FMR projects implemented
projects with DA, DOST, DTI, and the private by the government. This will address issues on
sector may be explored to develop agri-food FMR locations and interconnectivity and eliminate
processed products with enhanced nutritional duplication of activities – ultimately enabling
content and longer shelf-life.

116 | Updated Philippine Development Plan 2017-2022

farmers and other stakeholders to fully utilize and should be considered in the construction of
benefit from long, completed, and strategically- disaster- and climate-resilient farm structures
linked roads. It may further be harmonized with and retrofitting of existing ones (e.g., small-
the Agricultural and Biosystems Engineering scale irrigation systems);
Management Information System (ABEMIS)
of the Bureau of Agricultural and Fisheries • Intensify AFF extension services that will
Engineering (BAFE) which contains geotagged increase adoption of climate- and shock-
data on machineries and equipment provided, resilient technologies (e.g., smart greenhouses,
postharvest and logistics facilities established, and varieties that are short-maturing, high-yielding,
FMRs completed. These systems should be made flood/drought-tolerant, and stress-resilient,
available, accessible, and easily understandable by etc.), animal breeds, and best practices (e.g.,
the AFF stakeholders to help them make informed AWD technology, integrated pest management,
decisions and guide future investments. diversified/integrated farming, etc.);

• Enhance the decision support tools of

Institutionalize the El Niño Task Force as a concerned agencies by providing timely and
permanent body rather than an ad-hoc task site-specific weather and climate advisories
force, to ensure the preparedness of the AFF and utilize advanced and appropriate ICT
sector. to make it more available and accessible to
stakeholders;
Promote agribusiness courses and training
programs (e.g., farm tourism, enterprise • Develop and mainstream the use of early
development, etc.) under collaborative schemes warning systems and other anticipatory
with the academe, government, and business mechanisms (e.g., PRISM, etc.) that can help
sector; and integrate agriculture, including the anticipate potential hazards and disturbances
use of modern technologies (e.g., drones, smart which can disrupt production operations.
greenhouses, and smartphone applications) in For instance, the use of drones and the
the elementary and high school curriculum to subsequent information generated by the
encourage the youth to engage in agriculture DA, before, during, and after disasters will be
and fisheries (see Chapter 10). Support in terms further enhanced and promoted to increase
of financing of start-up or existing agri-based preparedness and response efficiency; and
projects of young entrepreneurs and agri-fishery
graduates will be provided to transform them into • Provide non-farm livelihood options
agripreneurs. especially to seasonal and disaster-affected
farm and fishery workers, SFF, and their
Intensify activities on increasing resilience of families. Seasonal workers/farmers will be
the AFF sector to climate and disaster risks (See trained on off-farm and non-farm activities to
Chapter 20). There is a need to intensify efforts in enable them to take advantage of alternative
improving the resiliency of AFF to climate and employment opportunities, including
disaster risks. In addition, the following shall be involvement in farm tourism, fabricating
considered: fiberglass boats, mangrove forest reforestation,
and mushroom production.
• Integrate climate and disaster risks in the design
of AFF programs and projects. For example,
local climate change trends and projections

Chapter 8 Expanding Economic Opportunities in Agriculture, Forestry, and Fisheries and Ensuring Food Security | 117
Legislative Agenda
The following legislative measures are necessary to support the actions of the executive branch:

Table 8.2 Legislative Agenda to Expand Economic Opportunities in Agriculture, Forestry, and Fisheries
and Ensure Food Security

LEGISLATIVE AGENDA RATIONALE/DESCRIPTION

Under this bill, prime agricultural lands shall be protected through proper and rational
delineation, classification or reclassification, allocation, establishment, utilization and
management. This will ensure the viability and sustainability of on-farm employment
and rural development by determining a socially-acceptable minimum agricultural land
National Land Use Bill
requirement that would maintain a level of agricultural industry in a given economic
or spatial context at a given point in time (See Chapter 20). Likewise, the bill will
harmonize and/or strengthen the enforcement of land use policies on the conversion and
reclassification of agricultural lands to non-agricultural use.

The bill aims to consolidate all assets and benefits emanating from the coconut levy
and create a Coconut Farmers and Industry Trust Fund to exclusively benefit coconut
farmers and farmworkers. It will create a Trust Fund Management Committee consisting of
Establishment of the Coconut Farmers
representatives from oversight agencies, that is distinct from the PCA Board, to remove the
and Industry Trust Fund
conflict of interest in the previous vetoed version of the bill where PCA is both the approving
agency and utilizing agency of the proposed trust fund. A Coconut Farmers and Industry
Development Plan will also be drafted to set the directions and policies for the development
and rehabilitation of the coconut industry in the long-term.

There is a need to reorganize the PCIC and increase its authorized capital stock to cater to
Strengthening of the PCIC
the demands of SFFs more effectively.

This measure aims to promote and protect the rights of young farmers, establish programs
for young farmers, and institutionalize young farmers’ representation in agricultural
Magna Carta for Young Farmers
decision-making and policy-making processes. This would address the declining interest of
the youth on agriculture and fisheries.

This bill aims to amend the Agri-Agra Reform Credit Act of 2009 (RA No. 10000) by
expanding the list of eligible projects and activities that can be funded by banks, as well
as broaden the existing modes of alternative compliance, to allow banks to comply with
their agricultural lending obligations. Diversifying the banks’ lending portfolios will provide
Strengthening the Agricultural and Rural
them with more options for investments and financing that will, in turn, increase the flow of
Financing System in the Philippines
finance and credit in the sector. It also aims to address the challenges in accessing formal
credit by the agricultural sector owing to issues on bankability of projects, lack of technical
expertise of financial institutions in agricultural financing, and the high levels of risk
exposures of the sector.

This is to promote the productive use of the idle lands, even if temporary, but without
Imposing progressive idle land tax
prejudice to the rights of owners to security of tenure.

This law places an unnecessary burden on foreign companies engaged in rice and corn
by placing a time limit (30 years) on how long they may operate as 100% foreign-owned
entities. After expiration of the allowed period, they are expected to divest in whole or in part
Amendment of the Rice and Corn Law (PD 194)
(at least 60%) to Filipino citizens/local interests. There is a need to amend this law to attract
foreign investments in the agriculture sector that will also provide employment opportunities
to Filipinos.

118 | Updated Philippine Development Plan 2017-2022

9A
Expanding
Economic
Opportunities
in Industry
 CHAPTER 9A

Expanding Economic
Opportunities in Industry
The country’s vulnerabilities were put in sharper focus with the occurrence of natural
disasters1, water supply constraints2, and the global health crisis caused by the COVID-19
pandemic at the beginning of 2020, requiring the government’s urgent and strategic responses.
This unprecedented period called on government to play a larger role in implementing
appropriate stimuli to revive consumer and business confidence in the near-term and
initiate measures that will enhance socio-economic resilience in the medium-term. The
refined Industry sector strategies are based on the need to operate under this new normal by
leveraging Industry 4.0 technologies and ushering the growth of the digital economy.

To establish a healthy and resilient Philippines, the industry sector needs to rapidly
operationalize the strategies under the Inclusive Innovation and Industrial Strategy (i3s,
pronounced eye-cube-s). The i3s serves as a guide in setting a collaborative environment
for and implementation of innovation-centered initiatives to boost the capacity of local
enterprises. As a means to further improve consumer and business confidence in the
medium-term, the i3s underscores the need to build up our human resource to utilize
technologies; adopt inclusive business models to link smaller domestic-based firms to larger
enterprises; strengthen the startup ecosystem to assist tech-based startups, particularly
those inclined to develop health or industrial solutions in response to the current pandemic;
and formulate business continuity plans (BCPs) for enhanced supply and value chain
resilience. The urgent passage of structural reforms that cut across multiple sectors is
needed to fast-track a national digital transformation responsive to the current crisis.

Assessment and Challenges

Assessment: Over the past 3 years (2017-2019), GDP, employment generated by the industry sector,
the industry sector delivered tempered growth and manufacturing employment as a proportion of
amid challenges in the external and domestic front. total employment – missed their respective targets.
While industry GVA grew within the annual target In terms of employment, an average of 267,000
range for 2019, the rest of the core industry-related net employment has been created in 2019, higher
indicators – manufacturing GVA as a proportion of than employment generated in 2016 (110,000).

1
Taal volcanic eruption occurred in January 2020. In the quarter leading to this, periodic seismic activities have been recorded in Mindanao and
select areas across Luzon and Visayas.
2
Challenges in water resource management has put in doubt the water supply sufficiency of the country’s capital.

Chapter 9A Expanding Economic Opportunities in Industry | 121

However, it failed to reach its 2019 plan target Challenges: Recent decline in industry output
of 437,000. The construction sector (287,000) reflected lower domestic demand exacerbated
significantly accounted for the industry by supply chain disruptions. Further, policy
employment creation in 2019 while the uncertainty related to institutional delays in
manufacturing sector recorded employment losses the passage of reforms (e.g., CREATE bill, etc.)
(-4,000) mainly attributed to the weak external contributes to halted investment decisions.
environment during the period. High innovation cost has also been a hindrance
for the industry sectors to adopt new
The country’s overall ranking in the World Bank- technologies, thereby limiting their capacity
International Finance Corporation’s (WB-IFC) and potential to upgrade to the production of
Ease of Doing Business Report exhibited a rapid higher-value goods. Attracting new foreign
decline in the past three years, amid the more direct investments is hampered by existing
aggressive stance of other economies in advancing policies limiting foreign participation in critical
reforms and facilitating ease of doing business. support services sectors, which also curtails
On a positive note, this trend was reversed in industry growth. The COVID-19 pandemic
2020, with the country jumping 29 notches up to highlights the gaps in healthcare services
95th out of 190 economies in the Ease of Doing (see Chapter 10 for strategies to strengthen the
Business Report. This is made possible by the country’s health care system) which affect the
government’s policy initiative in protecting country’s competitiveness and ability to attract
minority investors and improving the process of investors and locators. New opportunities
granting construction permits. On the consumer and challenges are also created with shifts in
front, Filipinos’ level of awareness of their basic consumer preference and production towards
consumer rights remains low, exacerbated by the essential goods and services. Lastly, industries
country’s archipelagic geography, which makes have limited flexibility to respond to the impact
access to information on basic consumer rights of the pandemic, particularly in instituting
difficult for those in remote and rural areas. new work protocols including repurposing
and reconfiguring business operations.3

Targets
The government faces significant obstacles in growth has been adjusted downward, considering
meeting its succeeding Industry-related annual new assumptions in the period as recognized and
targets. Given this, the Industry sector GVA approved by the DBCC in July 2020.4

3
Some businesses were able to promptly undertake repurposing and reconfiguring activities to take advantage of shifts in consumer demand.
For instance, the garments, electronics, and other manufacturing companies responded immediately to the need to produce COVID-19 critical
products. The CONWEP (Confederation of Wearable Exporters of the Philippines) group shifted to the manufacturing of coveralls, gowns, and
shoe and head covers while electronics firms repurposed operations to manufacture surgical masks and infrared thermometers. Liquor companies
manufactured isopropyl alcohol and plastics firms produced face shields.
4
The DBCC projects the country’s Gross Domestic Product (GDP) to contract by 2.0 to 3.4 percent in 2020. (Source: https://www.dbm.gov.ph/
index.php/secretary-s-corner/press-releases/list-of-press-releases/1655-dbcc-revisits-medium-term-macroeconomic-assumptions-and-fiscal-
program-amid-the-covid-19-pandemic)

122 | Updated Philippine Development Plan 2017-2022

Table 9A.1 Updated Plan Targets to Expand Economic Opportunities in Industry

BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

Economic opportunities in industry across regions including the digital economy expanded

8.2b
GVA growth rate in the industry sector improved (%)a 8.0-9.0 9.8-10.8 6.3-7.3 6.3-7.3
(2016)

Market production expanded

Manufacturing GVA as a proportion of GDP 19.1

24.7-25.3 16.6-16.7 16.8-17.0 16.8-17.0
increased (%)c (2016)

Production capacities increased

Employment generated by the industry sector 180

440 400-500 200 2,303-2,403
increased (‘000s)d (2015)

Manufacturing employment as a proportion to 8.3

10.9 8.0-8.6 8.3-8.6 8.3-8.6
total employment increased (%)e (2016)

Competitiveness, innovativeness and resilience increased

Top 54%
Philippine overall ranking in the (103 out of 189
Top 40% Top 40% Top 33% Top 33%
WB-IFC Doing Business Report improved economies)
(2016)

Consumer access to safe and quality goods and services ensured

Level of consumer awareness of basic consumer rights 74

78 75 78 78
increased (%)f (2016)

a
GVA at constant 2018 prices. GVA growth rate in Industry for 2019 and 2020 are based on the original DBCC targets as of July
2019. Note that Industry GVA growth rate for 2021 and 2022/EOP are consistent with the DBCC-revised figures as of July 2020.
b
National Income Accounts as of August 2020.
c
Note that baseline (2016) and targets (2021 and 2022/EOP) are in line with the revised DBCC-approved GDP estimates
(see Chapter 15) in the same period and rebased at constant 2018 prices. These are also within the DTI-BOI proposed targets
(16.4-19.8% in 2021 and 16.9%-20.2% in 2022/EOP).
d
Employment generated refers to additional employment generated from the preceding year. Annualized employment
generation for 2014 and 2015 refer to the average of estimates for April, July, and October survey rounds which excluded data of
Leyte province. Further note that revision of target employment generation in Industry for 2021 and 2022 is consistent with the
revision of target total employment generation (see Chapter 4) and revision of labor productivity in Industry (see Chapter 10) in
the same period.
e
Note that revised manufacturing employment as a proportion of total employment for 2021and 2022 is in line with the revised
labor productivity in Industry (see Chapter 10) in the same period. These are also somewhat within the DTI-BOI proposed
targets of 8.0% in 2021 and 8.4% in 2022/EOP.
f
Revised downward targets in 2021 to 2022/EOP is due to operational constraints faced by the DTI-Consumer Protection and
Advocacy Bureau (CPAB) in carrying out consumer advocacy efforts.

Chapter 9A Expanding Economic Opportunities in Industry | 123

Strategic Framework
Under the new normal, the focus will be to revive As the economy further adjusts, reformulated
business and consumer confidence in the immediate strategies in the medium term will harness the
term. In the manufacturing sector, production of ability of the academe, the private sector, and the
merchandise goods will favor necessities such as government to maximize the opportunities of the
food, beverages, medicine, pharmaceutical and digital economy. This will require accessing new
other chemical products, and other essential and technology and innovation, building innovative
complementary goods. Construction will now talent, and encouraging entrepreneurship that uses
include building quarantine and other health technology-enabled business models to leverage
facilities and rehabilitating existing ones to increase opportunities and growth of budding small-scale
the capacity of the health care system. There may enterprises.
even be increased construction demand in the rural
areas, as urban dwellers realize the advantages of
less dense areas.5

Figure 9A.1 Strategic Framework to Expand Economic Opportunities in Industry

5
We Recover As One. (Source: http://www.neda.gov.ph/we-recover-as-one/)

124 | Updated Philippine Development Plan 2017-2022

Strategies
Expanding economic manufacturers, and suppliers to also gain access
to domestic and external markets. (See Chapters 8
opportunities in industry and 9C)
across regions
Strengthen domestic investment promotion and
support business-matching activities at the local
Expanding market production level. Investment Promotion services 8 offered
under Full Service Negosyo Centers will be scaled-
Facilitate business-matching activities across up.9 Coordination between local government units
regions via technology-enabling platforms. (LGUs) and relevant national government agencies
(NGAs) and its regional line agencies will also be
Ensure efficient supply chain distribution enhanced to conduct business-matching initiatives
and network across regions. Support services (e.g., procurement matching) to link MSMEs to
will be provided to farmers, agro-processors, large enterprises in the region. (See Chapter 9C)
manufacturers, and exporters to facilitate the
movement of goods in the domestic and external Encourage LGUs to adopt and implement their
markets. The Supply Chain Regulatory Impact Local Investment and Incentives Code (LIICs) (see
Assessments and Supply Chain Analysis Dashboard Chapter 9C)
or other Supply Chain Modeling system or
framework for agricultural commodities will Support the repurposing of manufacturing
be utilized to monitor and address supply production.
bottlenecks across the country coupled with close
coordination among the implementing authorities, Prolonged uncertainty will sustain a shift in
LGUs, and the private sector. 6 (See Chapter 8) consumer preference towards essentials. While
demand is likely to decline for traditional major
Provide technical assistance in mapping out value export products, there are new opportunities for
chains across primary, secondary, and tertiary the country to be part of the production network
industries to determine alternative suppliers and for essential products (e.g., medical testing kits,
address production bottlenecks. To complement personal protective equipment, surgical masks,
the formulation of Business Continuity Plans etc.). (See Chapter 15 on Trade)
(BCPs), the government will facilitate partnerships
between MSMEs and large enterprises (LEs) in Establish a registry of firms that are or will be
the process of identifying alternative domestic engaged in the manufacture of essential goods. This
suppliers in lieu of external ones for enhanced will ensure that targeted support and assistance will
value chain resilience. 7 Utilizing digital platforms be provided and will not overlap or duplicate with
will reduce transaction costs as it enables farmers, interventions being provided by various NGAs.10

6
We Recover as One Report. (Source: http://www.neda.gov.ph/wp-content/uploads/2020/05/We-Recover-As-One.pdf)
7
The implementation of the Supplier Development Program (SDP) of the DTI-BOI and World Bank-IFC for the automotive, electronics, and
aerospace sectors is a concrete example of how government can facilitate partnerships between local auto parts and electronics suppliers and the
automotive and aerospace industry. The SDP links and capacitates the upstream segments to supply and comply with the technical requirements of
the downstream industries.
8
On investment promotion, the following requires close coordination of the DTI-BOI and various IPAs with the LGU: (a) identify investment
opportunities; (b) invite local investors to participate in investment-related activities; (c) disseminate investment-related information; and (d)
invite local proponents to participate in the organized missions and matching.
9
Investment Promotion service only accounts for 0.03% of the total services rendered under Negosyo Centers.
10
The DTI Consumer Protection and Advocacy Bureau (CPAB) already has a registry of manufacturers of basic necessities and prime commodities
which can be expanded.

Chapter 9A Expanding Economic Opportunities in Industry | 125

Provide assistance in re-configuration of Increasing production capacities
production areas, taking into consideration
minimum public health standards for COVID-19 Improve access to new technology and
mitigation. Across industries, reconfiguring work innovation.
protocols in observance of proper sanitation,
disinfection, and social distancing will be a Support Research and Development (R&D)
challenge for sectors with higher concentration of applications in the manufacturing sector as part
employees per work area such as in Manufacturing of the shift in business processes. Recent studies
and Construction. The government will regularly point out that high fixed capital and licensing costs
conduct dialogues with the private sector to are the biggest barrier to technology upgrading
understand and respond to industry needs. for producers in the Electronic and Electrical (E&E)
It will also facilitate businesses’ adoption of health subsector.12 However, the current environment
protocols in the workplace to regain business underscores the urgency of technology upgrading
normalcy while trying to flatten the infection in the manufacturing sector.13 As part of
curve. Adequate investments to enhance the government support, an array of technical and
country’s ICT capabilities (see Chapter 19) and financing options will be made available,
strengthen the country’s healthcare system (see particularly for those inclined to develop health
Chapter 10) will also be prioritized. or industrial solutions in response to the current
pandemic. Technical support will include
Reduce transaction costs by streamlining refocusing public-funded R&D to the
complex rules and regulations affecting business application of innovative industrial solutions.
operations of companies that are repurposing. Targeted fiscal incentives (e.g., tax credits for
Streamlining procedures for firms that will be R&D activities) will also be considered in line
repurposing their activities towards the production with the provision of the Corporate Recovery
of essential goods and delivery of critical services and Tax Incentives Reform Act (CREATE).
will be prioritized. Clear and transparent rules The Patent Search services14 of the IPOPHL will
and guidelines will be drafted and implemented in also be promoted to connect with the R&D units
the process of obtaining licenses and certificates. of enterprises.
In addition, a regulatory framework for the
production of these essential goods (e.g., PPEs) Address constraints in the energy and water
will also be formulated and enforced. sectors by leveraging innovation. As the rapid
pace of urbanization continues, the country’s major
Maximize opportunities in bilateral, regional11, cities will keep facing constraints in the use and
and global integration and optimize the management of basic resources (i.e., electricity,
utilization of existing FTAs. (See Chapter 15) gas, and water). Public-private partnerships will
be encouraged to invest ahead using available
technologies. While long-term water supply and
resource management is being improved, real-
time water quality monitoring as well as small-
scale water recycling systems in the interim will

11
Startups from the Philippines may reach out to the ASEAN Business Incubator Network (ABINet) which enables startups to network with other
startups in ASEAN, and even provides potential contact with venture capitalists.
12
Philippines Digital Economy Report: Leveraging the Digital Economy for A Better Normal.
13
For instance, R&D support is needed by semiconductor firms to be able to customize electronic components in order to supply automobile spare
parts needed by domestic producers of e-vehicles.
14
IPOPHL’s patent analytics and landscaping efforts, and patent information search initiatives are means of assisting innovative enterprises and
research and development institutions as well as government agencies that create policies and grant science and technology funding. IPOPHL
will scale up the capacity of business enterprises and other R&D institutions to conduct search while it innovates on its processes and modes of
delivery of patent search services.

126 | Updated Philippine Development Plan 2017-2022

be explored to effectively service households and Technology managers from the public sector
businesses in major urban areas. As regards energy, will be capacitated to promote, negotiate transfer
the government will ensure continuous supply of of technologies particularly for government-
power through increasing the country’s dependable funded R&Ds, and spot anti-competitive clauses
capacity (in megawatt). (See Chapters 9C and 19) in technology transfer agreements (TTAs).17
The Innovation and Technology Support Offices
Reduce online participation costs for businesses (ITSOs) within the universities, other higher
and consumers. Adopting technology-enabled education institutes (HEIs), and research and
business models offers significant opportunities development institutes (RDIs) under the ITSO 2.0
for manufacturing firms, particularly MSMEs, program18 of the IPOPHL will also be scaled up.
as it offers an alternative means to access markets Further, IPOPHL’s designation as an international
(see Chapter 9B). Foremost, digital connectivity authority under the Patent Cooperation Treaty
and infrastructure will be improved to reduce will facilitate the entry of Filipino innovations to
the cost of broadband and internet services15 the global patent system. (See Chapter 14)
(see Chapters 9B, 9C, and 19). Consumer rights
protection in e-commerce and cybersecurity Monitor and scale-up efforts to support
enforcement activities will also be strengthened innovation capacities of startups and MSMEs in
to build consumer and business confidence in the regions by expanding the Regional Inclusive
these platforms.16 Lastly, investment in the country’s Innovation Center (RIIC) pilot areas. The RIICs,
logistics system will be scaled up (see Chapter 9B) as part of the Philippine i3s strategy, will promote
and the security of digital payment platforms will the adoption of appropriate technologies in
be ensured. existing industry clusters. The RIICs aim to improve
supply chain, value-adding and agro-processing,
Strengthen industry-academe linkage access to technologies, financing, regulation, and
by prioritizing market-driven research, certification for high-value crops such as rubber,
development, and innovation (RD&I) activities mangoes, coffee, cacao, and coconut. Currently,
and accelerating commercialization of R&D RIICs are being piloted in Cebu, Davao, Bicol,
investments. Public sector funded R&D will and Cagayan de Oro, for possible replication in
be redirected towards industrial innovations, other regions.
especially for those in response to COVID-19.
In addition, the procurement conditions set in Facilitate industry adoption of appropriate
the Government Procurement Act (GPRA) will technologies including local R&D solutions and
be streamlined to fast-track procurement technology-enabled business models. (See Chapter
of laboratory equipment needed for RD&I 9C)
activities of state universities and colleges (SUCs)
and research and development institutions (RDIs).

15
DICT has ongoing policies and programs that aim to reduce costs of broadband and internet services: roll-out of the third telecommunication
player’s program and Common Tower Policy.
16
DICT has a Cybersecurity Bureau that develops cybersecurity policies and coordinates with other agencies on consumer right’s protection of
citizens.
17
Technology Transfer Arrangement, by definition, is the process by which one party systematically transfers to another party the knowledge for
the manufacture of a product, the application of a process, or rendering of a service, which may involve the transfer, assignment or licensing of
intellectual property rights as defined in the Philippine Technology Transfer Act of 2009 (RA 10055). The law covers all institutions that implement
government-funded R&Ds and intends to promote and facilitate the transfer, dissemination and effective use, management, and commercialization
of intellectual property, technology and knowledge resulting from R&D funded by the government. (Source: https://www.dost.gov.ph/knowledge-
resources/2014-04-27-01-59-53/republic-acts/file/288-republic-act-no-10055-philippine-technology-transfer-act-of-2009.html)
18
IPOPHL, in recent years, developed a network of 100 ITSOs composed of higher education and research development institutions. This program
seeks to foster creation of intellectual property (IP) in the academe and research sectors, particularly in invention and utility models, to increase
the national innovative output and to push the presence of Filipino inventions in the international patent system. It is set up to also strengthen
support for MSMEs as the ITSOs extend technical assistance to MSMEs and local inventors as regards trademark and patent searches as well as
drafting of patents, utility models, and industrial design documents.

Chapter 9A Expanding Economic Opportunities in Industry | 127

Conduct an inventory of existing DOST-approved Strengthen cybersecurity and data privacy
or government-funded production technologies measures in the public sector and build efficient
for possible scale-up. (See Chapter 14) digital infrastructure (hard and soft). To mitigate
potential risks and threats, cybersecurity and data
Promote linking startups and MSMEs to protection will be interwoven in the government’s
cooperatives and large enterprises (LEs) to policies and programmatic areas of intervention.19
enhance value and supply chain resilience and Ramping up investment on efficient digital
spur innovation. (See Chapter 9C) infrastructure and pushing for structural reforms
to allow greater competition in these key sectors
Integrate sustainable consumption and production will also be prioritized. (See Chapters 9B, 16, and 19)
(SCP) processes. A sustainable consumption and
production approach through the adoption of Strongly enforce intellectual property (IP) rights
clean, renewable energy, and smart technologies to encourage firm innovation. The enforcement of
in industry operations is supported. (See Chapter IP rights is necessary to guarantee that inventors
20 for detailed SCP strategies). Adherence to SCP is and firms would be able to reap the benefits of
a unique opportunity for strategic marketing and their inventions and creations.20 Moreover, strong
branding that will set apart the country’s products IP enforcement will attract foreign industries that
and services offering in the global market. In the utilize sophisticated technologies to relocate their
construction sector, the Sustainability Incentive production hubs in the country. (See Chapter 9C)
Program will be promoted to reduce greenhouse
gas emissions in built environments, and for Enhance labor capacities to equip the future
construction of disaster-resilient infrastructure. workforce to be Industry 4.0-ready.
Particularly for public infrastructure programs
and projects, applying the Comprehensive and Develop HRD blueprint to equip future workforce
Integrated Strategic Environmental Assessment to be Industry 4.0-ready. A human resource
will be advocated. R&D in the use of alternative development (HRD) strategy for the entire country
sustainable materials in the construction sector will be formulated starting with priority sectors.21
will also be pursued. (See Chapter 19) The crafting of a Human Capital Development and
Skills Training Cooperation Roadmap consistent
Encourage the local development, manufacturing, with the Philippine Inclusive Innovation Industrial
and distribution of farm machinery through the Strategy (i3s) and its Inclusive Filipinnovation
government’s Farm Mechanization Program and Entrepreneurship Roadmap will lay a unified
(FMP). The program will encourage the local blueprint, incorporating various initiatives on
development, manufacturing, and distribution human resource development and capacity building.
of farm machinery. The implementation of this
program will also hasten the commercialization Build innovative talent focusing on the acquisition
and utilization of existing farm machinery of soft and hard skills with focus on science,
technologies already developed by PhilMech’s technology, engineering, arts, and mathematics
local accredited partners. (See Chapter 8) (STEAM), ICT, and digital-related competencies.
Digital transformation requires the reinvention of
businesses’ workforce and necessitates investment
in digital education. In the immediate term,

19
A unified platform with which the DICT and its cybersecurity partners from the private sector may be able to assist government agencies with
cybersecurity threats, attacks, and other issues.
20
Philippine Digital Economy Report: Leveraging the Digital Economy for A Better Normal.
21
The HRD blueprint can take off from the 12 priority sectors under the Philippine i3s, broadly aligned with the AmBisyon Natin 2040 priority
sectors: housing and urban development (construction), manufacturing, connectivity (ICT, transport and logistics), education services, tourism
and allied services, agriculture, health and wellness services, and financial services. (Source: http://2040.neda.gov.ph/about-ambisyon-natin-2040/)

128 | Updated Philippine Development Plan 2017-2022

TESDA and other relevant government agencies, prioritizes the growth and development of 15
including LGUs, will proactively collaborate with major industries identified to benefit from closer
the private sector to design remote on-the-job- integration of agriculture, industry and services
training and apprenticeships programs to support and from the adoption of innovative applications:
the creation of digital careers. For the future (1) auto and auto parts; (2) chemicals; (3)
workforce, critical support in the early stages of agribusiness; (4) furniture, garments; (5) creative
childhood development through the acquisition of industry; (6) iron and steel, tool and die; (7)
essential life skills and foundational abilities with electronic and electrical manufacturing services;
a focus on lifelong learning will be prioritized. (8) shipbuilding and ship repair; (9) aerospace
(See Chapter 10) parts and aircraft maintenance; (10) construction;
(11) transport and logistics; (12) tourism; (13) IT-
Improve ease of labor mobility. COVID-19 BPM; (14) e-commerce and digital economy; and
compelled countries to restrict travel and people (15) climate change products, mobility solutions,
mobility as part of efforts to flatten the infection health, education, and smart cities.
curve. Once infection is managed, labor mobility
within Southeast Asia, as part of the ASEAN Developing these priority sectors will increase
Community Vision 2025, will be pursued. Mutual the country’s competitiveness amid global market
recognition arrangements (MRAs) will help uncertainties by operationalizing the Innovation
Filipino professionals acquire new knowledge and Memorandum of Understanding (MOU) between
experience overseas and create new networks for relevant NGAs22 and closer coordination and
professional growth. collaboration with the academe and the private
sector.
Improve access to finance (see Chapters 9C and 15
for detailed strategies). Provide assistance and facilitate funding for
industries and enterprises as they create smart
factories, adopt automation, and shift to Industry
Expanding access to economic 4.0 technologies. The application of new and smart
opportunities in industry technologies such as automation, robotics, artificial
intelligence (AI), industrial Internet of Things
including the digital economy (IoT), big data analytics, additive manufacturing,
and cloud computing in the identified priority
Increasing competitiveness, innovativeness, industries under the i3s, will enable firms to
and resilience produce innovative goods and services. Support
will be made available to firms that will invest in
Develop high value-added, competitive, and customization, scaling-up, and adoption of new
resilient sectors. production technologies to take advantage of
opportunities under the new normal, in particular:
Strengthen the implementation of the Philippine
Inclusive Innovation Industrial Strategies (i3s). • Establishment of an Industry 4.0 pilot
The i3s aims to strengthen the linkages of factory and Industry 4.0 SME Academy that
agriculture, industry, and services through will serve as learning facilities providing
innovation and deepen forward and backward Industry 4.0 training and technical support to
linkages across these major economic sectors and companies transitioning to utilize Industry 4.0
induce global value chain participation. The i3s technologies;

22
The DTI, DOST, DICT, NEDA, DepEd, DA, and CHED signed the Memorandum of Understanding (MOU) on October 2, 2018, to further the
Inclusive Filipinnovation and Entrepreneurship, a declaration of understanding by the agencies to collaborate and coordinate in formulating and
implementing the Inclusive Filipinnovation & Entrepreneurship Roadmap, which aims to develop the country’s innovation and entrepreneurial
ecosystem via enhancing the linkages between academe/research community, industry, and government.

Chapter 9A Expanding Economic Opportunities in Industry | 129

 • Allocation of funding programs (e.g., soft Reduce the cost of logistics. The high costs of
loans) and appropriate incentives to support logistics account for 27 percent of revenues of
companies’ digital transformation plans and manufacturing firms in the Philippines compared
investments consistent with the CREATE to Indonesia (21%), Viet Nam (16%), and Thailand
provisions; and (11%) based on estimates of the International
Finance Corporation (IFC). This disproportionately
• Provision of technical support in conducting affects smaller enterprises as they operate on a
Industry 4.0 assessment through the Smart smaller scale and usually face high shipping
Industry Readiness Index (SIRI).23 and delivery costs when importing smaller
shipments.26 Strategies for enhancing logistics
Address industry value chain gaps by encouraging services are discussed in Chapter 9B.
sustainable use of raw materials along with
parts, components, and intermediate products Maximize the country’s opportunities to penetrate
and linking manufacturing with knowledge- the global Halal market. The Philippine Halal
intensive services. The lack of sustainability in industry, another sector offering opportunities
production processes, inadequate processing for higher value-adding, can be an instrument for
(resulting in non-conformance to standards sustainable growth and inclusive development in
prescribed by processors), challenges in logistics, the Bangsamoro Autonomous Region in Muslim
warehouse and storage facilities (see Chapter Mindanao (BARMM) and the rest of Mindanao.
9B), and internal firm factors such as lack of Financing and technical assistance for Halal
human resource capabilities (see Chapter 10) and firms’ digital-based businesses will be prioritized.
low technology adoption have been identified The implementation of the Philippine Halal
as gaps in the country’s manufacturing sector. Export Development and Promotion Act of
Adequate investment in acquisition of technology 2016 (RA 10817) will provide assistance to Halal
licenses, adoption of innovative and sustainable industries to ensure compliance with Halal
manufacturing processes 24, support for private technical standards and provide common service
sector investment in logistics through offer facilities in strategic production areas. Further,
of low-cost financing and upgrading of skill the Department of Foreign Affairs (DFA) Foreign
competencies related to manufacturing are Service Posts will be utilized in conducting
critical requirements (see Chapter 8 for related market research and intelligence for potential
strategies on the AFF sector). At the international opportunities for the development of the
level, government will continuously dialogue Philippine Halal industry and other relevant
with regional and global cooperation partners information to expand market access.
to ensure non-disruption of medical and food
supplies including eliminating tariffs and other
restrictions on essential goods.25 (See Chapter 15)

23
Smart Industry Readiness Index (SIRI) is developed in Singapore and is the first self-diagnostic Industry 4.0 tool that helps companies globally
– regardless of size and industry – determine how to start, scale and sustain their Industry 4.0 transformation. The tool serves as a benchmark for
manufacturers to assess and compare their Industry 4.0 maturity levels against those of their peers in the same industry.
(Source: https://siri.gov.sg/#)
24
A concrete example in pushing forward sustainable production in the manufacturing sector is the National Ecolabelling Programme – Green
Choice Philippines (NELP-GCP). The NELP-GCP is a voluntary, third-party ecolabelling programme that follows the guidelines set by ISO 14020
and ISO 14024. Through a multi-sectoral process, the programme provides criteria for environmentally-preferable products which can be used
as a guide for consumers and institutions for product selection. Ecolabelling and green purchasing is just the first step to create awareness on
sustainaible consumption and production practices. To further promote and patronize ecolabeled products and services in the public sector, the
Philippine Green Public Procurement Roadmap has been launched by the Government Procurement Policy Board (GPPB) in 2017. Enocuraging
green procurement in the public sector is critical as this will create demand and will concretely lay down green purchasing policies.
(Source: https://gppb.gov.ph/downloadables/forms/GPP_roadmap_print.pdf)
25
Strengthened cooperation is necessary to keep medical supply lines open and prevent harmful measures that will affect the trade of medical
goods. (Source: https://www.apec.org/Publications/2020/04/APEC-in-the-Epicentre-of-COVID-19)
26
Philippine Digital Economy Report: Leveraging the Digital Economy for A Better Normal.

130 | Updated Philippine Development Plan 2017-2022

Strengthen collaboration and monitoring of the benefit of local farmers or producers. As a starting
implementation of various industry roadmaps. point, technical capacities of relevant agencies and
Stronger collaboration of the various industry stakeholders will be strengthened. Information
clusters across the regions, coupled with adoption dissemination and creation of a policy framework
of appropriate innovation and periodic monitoring on this initiative will be pursued.28 (See Chapter 8)
of industry roadmaps will ensure that all
stakeholders are on track towards producing higher Encourage entrepreneurship leveraging
value output to achieve the roadmap targets set. technology-enabled business models.

Build capacity in preparing Business Continuity Allow firms in new technologies and industries
Plans (BCPs) across industries. The ability to tap to test their products and business models
alternative suppliers and beef up inventory capacity through regulatory sandbox.29 Compliance and
will insulate enterprises against vulnerabilities. regulations will be flexible and suited to the pace
Support will be provided by capacitating firms to of growth of the most innovative companies
prepare their customized BCPs.27 (See Chapters which will be balanced by sufficient checks to
9C and 10) A sound legal framework for ensure consumer protection.
telecommuting and alternative work arrangements
will be applied as relevant to industry operations. Provide a supportive policy environment for
(See Chapter 10) entrepreneurs and startups. Further supporting
individuals starting up their own businesses
Boost infrastructure development by fast-tracking – particularly youth, women and people with
implementation of Build Build Build projects disabilities (PWDs) – will require a supportive
aimed towards improving the country’s healthcare policy environment from the national and local
system, digital and power infrastructure, among government. Blended finance or the strategic use
others. (See Chapter 19 on Infrastructure) of development finance to mobilize additional
funding for sustainable development will be
Adopt a policy framework to promote geographic tapped.30 For instance, blended finance that
indication (GI) system to boost production of local offers “gender lens investing plan” – encouraging
agricultural products with unique characteristics investment in activities that positively affect
attributable to its geographic origin, human women – will be explored and scaled-up. Access
factors, or indigenous knowledge (e.g., pili nuts of to other types of innovative financing for startups
Bicol, Guimaras mangoes, etc.). The GI highlights and MSMEs, as well as cooperatives will also be
the competitive advantage of origin-linked qualities, expanded to enable them to operate under the
reputation, and other characteristics of products new normal. (See Chapter 9C) Technopreneurship
including traditional practices or local know-how will also be considered in the implementation
in their production that can translate into economic of the Balik Probinsya Bagong Pag-asa Program,

27
National Wages and Productivity Commission (NWPC) commits to implement the Productivity Toolbox to sharpen the productivity perspective
of BCPs such that BCP activation should not only mitigate impact of disruption but should also unlock workforce productivity.
28
The Intellectual Property Code of the Philippines (RA 8293) has already stipulated that geographic indications (GIs) are examples of intellectual
property rights. The Bureau of Trademark under the Intellectual Property Office of the Philippines (IPOPHL) is in-charge of the “search and
examination of the applications for the registration of marks, geographic indications, and other marks of ownership and the issuance of the
certificates of registration.”
29
Regulatory sandboxes or testing grounds for emerging industries will require a high degree of regulatory flexibility, market openness, and a
competitive policy environment. Further supporting the growth of emerging industries may spur innovation but may also cause disruption to
traditional sectors (e.g. growth of fintech that may disrupt traditional financial sector).
30
The Australian Department of Foreign Affairs and Trade has just established the Emerging Markets Impact Investment Fund (EMIIF) which
will be accessible to financial intermediaries in countries like the Philippines. The EMIIF intends to invest in funds for SMEs, or in financial
intermediaries such as banks who, in turn, will lend to SMEs. A unique feature of the EMIIF scheme is a “gender lens investing” plan that will
encourage investment in activities that positively affect women. Thus, EMIIF will either: (a) make available non-grant instruments to invest in
SME funds, with the goal to play the role of an anchor fund from which other funds will be crowdsourced; or (b) use its funds to directly assist and
support SMEs.

Chapter 9A Expanding Economic Opportunities in Industry | 131

to address livelihood and job scarcity as support to with software that digitizes the application of
regional growth and development. (See Chapter 18) business permits and licenses. The shift to online
business registration for SEC, DTI, and other
Pursue convergence among various government relevant NGAs will also be fast-tracked.
initiatives and flagship programs for startups, Government digital platforms will consider
micro, and small enterprises and cooperatives. interoperability for shared access by relevant
(See Chapter 9C) national and local government units while ensuring
appropriate cybersecurity protocols. Utilizing
Improve ease of doing business to boost industry e-payment channels for government transactions
expansion through digital transformation. will be prioritized.

Address regulatory bottlenecks by streamlining Speed up implementation of Energy Virtual

permitting and licensing processes across One Stop Shop (EVOSS) (RA 11234) and the
industries. Effectively streamlining regulatory Energy Investment Coordinating Council (EO
processes will attract further investments and boost 30) to address delays in the implementation of
output. Further streamlining of procedures and energy infrastructure projects. These policies
reducing the number of days in granting permits will streamline permitting processes for energy
and other licensing requirements will be projects, including power generation,
implemented to support restarting businesses or transmission, and distribution at the local level by
existing firms applying for permit renewals. utilizing online platforms. (See Chapter 19)
Specific regulatory bottlenecks for the food
manufacturing industry (FMI), which accounts for Harmonize and strengthen the National Quality
more than a third of the manufacturing sector, are Infrastructure (NQI) System.
currently being addressed.31 In the construction
sector, permitting and licensing can be streamlined Pursue Passage of the National Quality
in line with the proposed Philippine Building Act. Infrastructure Law. (See Chapter 9A Legislative
Agenda) The current fragmented nature of the
Encourage digitalization in government processes country’s National Quality Infrastructure (NQI)
to support industry growth. Fast-tracking the System limits the capacity of local manufacturers
implementation of e-governance projects, especially to comply with global technical regulations
in terms of Government to Business (G2B) and product standards.32 A unified NQI system,
electronic services, is paramount in supporting through passage of this law, will harmonize
the shift to the new normal (see Chapter 5). Full the country’s standards, technical regulations,
implementation of TradeNet, the online platform metrology, accreditation and conformity assessment
for the Philippine National Single Window, will procedures (e.g., testing, calibration, inspection,
digitize trade processes, including online payment and certification), packaging, and labeling to be
systems, simplifying trade (see Chapter 15). The at par with international standards. As a parallel
government will likewise fully implement the activity, the technical regulation regime will
electronic Business Permits and Licensing System be reviewed and adjusted, including its related
(eBPLS) project, providing LGUs across the country legislation, to meet regional and international

31
Some of the concrete measures for improvement: (a) Operationalize a one-stop processing venue for the various certifications required by
various food safety regulatory agencies (FSRAs) utilizing online platforms and digital payment channels; (b) Shorten turn-around periods of
processing and issuing clearances, permits, or other required certifications to address regulatory compliance including a thorough review to
streamline the FSRA processes; and (c) Update current standards and protocols for food regulation aligned with internationally recognized
standards and protocols to address product safety and quality concerns of consumers. Manalili N.M et al. 2017. Scoping Study on Reducing
Unnecessary Regulatory Burdens in the Philippine Food Manufacturing Industry. (Source: https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/
pidsdps1723.pdf)
32
An assessment of the NQI in the Philippines and the corresponding support for institutional capacity of both government and the private sector
will be pursued to ensure harmonization of domestic standards and regulations at par with global standards.

132 | Updated Philippine Development Plan 2017-2022

requirements promulgated under the Regional Strengthen institutional and human capacities
Trade Protocols, the WTO-Technical Barriers of key agencies to enforce regulations and
to Trade (TBT), and Sanitary and Phytosanitary enhance consumer awareness on the safety and
Measures (SPS) Agreements along with other quality of products and services. The capacity of
international best practices.33 The service delivery responsible units under the Department of Health
of the NQI is dependent on a trained and skilled (DOH)34, Department of Agriculture (DA)35,
workforce. Hence, developing the human resources and Department of Trade and Industry (DTI)36 to
necessary to support the various standardization, fulfill their mandates to enforce and advocate for
quality, and technical regulation programs is higher standards of safety and quality of goods
also supported. produced37 will be strengthened. Measures to
increase consumer awareness will be scaled-up,
Provide more dispersed access points for common leveraging digital platforms.
service facilities including laboratories,
calibration, and testing facilities for MSMEs Prioritize procurement of environmentally-
especially in the regions (see Chapter 9C). MSMEs preferable products and services that are
across regions will be provided greater access domestically produced and at par with
points to common service facilities to encourage international quality and standards. In the
and support their NQI compliance and adherence. public sector, enforcing Rule XII, Section 43
of the Revised IRR of the Government Reform
Intensify targeted awareness and information Procurement Act (RA 9183), will help the growth
dissemination on the benefits of accreditation for of local industries that produce safe and quality
firms engaged in essential sectors and emerging goods and services at a competitive cost.
industries. Under the new normal, business As a whole, Go Lokal! and similar “buy Pinoy”
accreditation and compliance with domestic and initiatives will enable domestic industries to bounce
international standards and conformance will be back under the new normal. Green or sustainable
promoted for essential sectors (i.e., healthcare, procurement will also incentivize greening
food safety and food testing, etc.) as well as industries that will contribute to sustainable
emerging industries (i.e., manufacturing PPEs, test economic growth. (See Chapter 20)
kits, and other health testing instruments, etc.).
Promote and strengthen consumer protection to
cover digital transactions.
Ensuring consumer access to safe and
quality goods and services Amend the Consumer Act to strengthen protection
for consumers. The law will be updated to provide
Continue vigilance on product safety, value for stronger measures that will enhance consumer
money, and access to quality goods and services. protection from dangerous and hazardous
products and abusive sales practices. Foremost,
the DTI will be given the mandate to effectively
monitor the quality and safety of products being

33
This will include the establishment of effective cooperation amongst the NQI institutions and the national regulatory authorities, and also with
their regional and international counterparts.
34
The DOH through the Food and Drug Administration (FDA), establishes standards for processed food, drugs, and cosmetics.
35
The DA’s Bureau of Agriculture and Fisheries Product Standards develops standards for agriculture and agriculture-related products including
fruits and vegetables and grains.
36
The DTI’s Bureau of Philippine Standards (BPS) formulates standards for food and other categories including building, construction, and
transport products; electrical and electronic products; and chemical and consumer products. It is mandated to develop, implement, and coordinate
standardization activities in the country and works with DOH and DA on this area.
37
Periodic exchange programmes among ASEAN Member States (AMS), for instance, will build national capacity and encourage these agencies to
pursue a higher standard of quality awareness and consumer protection in ASEAN.

Chapter 9A Expanding Economic Opportunities in Industry | 133

sold in the market; halt the proliferation of services in the domestic market comply with
substandard and potentially dangerous products safety and quality requirements based on the
by being granted the authority to declare, Philippine National Standards 38, technical
motu propio, certain products as unsafe; issue regulations, and other trade and industry
preliminary preventive or mandatory orders; regulations.
and recommend the closure of erring businesses.
Almost three decades since the existing law has Formulate and enforce policy framework/
been passed, it will be updated to cover consumer guidelines for online sellers and buyers to spur
protection on ICT and e-commerce and improve e-commerce growth. E-commerce will likely
pre-adjudication consumer redress mechanisms remain part of the post-pandemic reality. To
including an effective return and refund policy. ensure safe and reliable e-commerce transactions,
updating of joint circulars issued by DTI, DA,
Engage relevant consumer welfare organizations. DOH, and other relevant government agencies
Regular engagement and continuous dialogue that enforce consumer protection policy in
among the government, non-profit consumer e-commerce will be prioritized (see Chapter 9B).
organizations, and other relevant non-profit Use of virtual modes or digital platforms in
private organizations will be established. These handling consumer complaints and dispute
organizations are critical and can be partners of resolutions will be promoted.
the government in ensuring that products and

Box Article 9A.1 Strengthening Economic Zone Development Program

Administrative Order No. 18 series of 2019, “Accelerating rural progress through robust development of Special Economic Zones in the
countryside”, and Executive Order No. 114, the “Balik Probinsya Bagong Pag-asa Program,” are perceived as complementary measures. The
successful implementation of both will enable the creation of more ecozones in the countryside which will boost job generation and improve
employment prospects of rural and Balik Probinsya beneficiaries.

In response to the COVID-19 pandemic, the following are proposed policy responses in support of Economic Zone Development Program under
the new normal:

• Encourage PPP, joint ventures (JVs), and other modes of partnership in building a Transportation and Logistics Hub in every region to
encourage countryside investment.
• Address bureaucratic hurdles to reduce trade costs pertinent to logistics by fully implementing the Customs Modernization and Tariff Act
(CMTA). Under the law, the Bureau of Customs (BOC) must ensure uninterrupted 24/7 service in the ports including weekends and must
accredit more off-dock Container Yards and Container Barge Terminals as part of its decongestion measures. The Land Transport and
Franchising Regulatory Board (LTFRB), for its part, will ensure prompt issuance of franchises and Permit to Operate (PTO) to truck drivers.
Lastly, the DTI’s issuance of a policy to regulate port and shipping fees for shippers and Full Container Load (FCL) shipments must be fast-
tracked.
• Temporarily reduce export threshold for COVID-19-affected economic zone export-oriented industries, as prescribed by the PEZA Board
subject to terms and conditions as the latter may determine (RA 791639).
• Include the establishment of Medical Waste Disposal Facility and production of medical waste disposal equipment among the eligible and
priority products/activities for registration with incentives, pursuant to DTI-DOF JMC No. 2020-02.
• Rationalize the strict implementation of DAO 2016-08 which provides additional parameters for monitoring and compliance for wastewater
discharge, with DENR to undertake cost-benefit study on the additional environmental parameters.
• Adopt digitalization with the view of harmonizing and streamlining permitting requirements of exporters and importers pursuant to the
implementation of the EODB-EGSD Act, as enforced by the Anti-Red Tape Authority (ARTA) and establish an Inter-agency Taskforce
to strengthen coordination among IPAs, including the establishment of a one-stop shop to respond to all concerns regarding ecozone
development, investment requirements, and applicable incentives, among others.

38
The Philippine National Standards (PNS) is a publication of various consumer products that follow a standard documentation format aligned
with the ISO documentation format. It also covers mandatory labelling and packaging and prescribes all the standards and required information
for domestically produced consumer products.
39
The IRR of RA 7916, Section 2i allows that ecozone export enterprises, which have been registered with PEZA to engage in manufacturing,
assembling or processing activity, falling within the purview of the Act and resulting in the exportation of 100% of its production, may be
allowed a lower percentage of its production for exportation as prescribed by the [PEZA] Board subject to terms and conditions as the latter may
determine.

134 | Updated Philippine Development Plan 2017-2022

Legislative Agenda
For the rest of the Plan period, the following legislative agenda will be pursued:

Table 9A.2 Legislative Agenda to Expand Economic Opportunities in Industry

LEGISLATIVE AGENDA RATIONALE

Competitiveness, innovativeness, and resilience increased

The current law needs to be updated to attract more foreign investments in manufacturing and other
priority sectors. The following amendments are supported: (a) reduce employment threshold for non-
Amendment of the
Filipinos, with paid-in capital of at least USD 100,000, investing in small and medium-sized domestic
Foreign Investment Act
market enterprises from 50 to 15 direct employees; and (b) exclude the practice of profession from the
coverage of the Foreign Investment Negative List (FINL).

This aims to highly promote, encourage, and support e-vehicle production and usage towards adopting an
eco-friendly and economical transportation landscape in the country. Support and grant for time-bound
and performance-based incentives for the manufacture, assembly, conversion, and sale of hybrid and
Philippine Electric Vehicle
other fuel-alternative vehicles and the establishment of charging stations, will be pursued in accordance
(e-vehicle) Industry
with the provisions under the Corporate Recovery and Tax Incentives Reform Act (CREATE) bill (see
Chapter 15). This is also in support of the Public Utility Vehicle (PUV) Modernization Program of the
government to make the country’s public transportation system efficient and environment friendly.

An NQI policy will raise quality consciousness of both suppliers and consumers as NQI institutions
introduce, promote, and maintain a culture of safety and quality of goods produced. The law will integrate
and coordinate standardization, metrology, testing analysis, quality management, certification, and
National Quality Infrastructure Law accreditation at par with global standards. This will ensure that goods and services emanating from or
traded to the country are designed, manufactured, and supplied in a manner that matches the needs,
expectations, and requirements of the purchasers and consumers as well as those of the regulatory
authorities in the domestic and export markets.

Given the new normal, structural reforms that cut across multiple sectors need to be put in place to allow
a transformational shift to digital modes of conducting work and life. This will require enhancing the
National Digital Transformation
foundation of the digital economy through greater investment in ICT infrastructure and connectivity and
setting up a sound regulatory environment that promotes digital adoption.

This will provide a level playing field and expand opportunities to eligible and qualified domestic
Amendment of the
and foreign contractors by reducing barriers to entry of new players in the construction sector. This
Contractor’s License Law 40
will facilitate potential investments in quality and climate-resilient infrastructures.

Consumer access to safe and quality goods and services ensured

The law needs to be updated to efficiently and effectively address consumer concerns and align
Amendment of the Consumer Act 41 existing business and industry practices to be at par with international standards and best
practices and to cover the use of technology applications (e.g., e-commerce).

40
Amendment of the Contractor’s License Law (Senate Bill 1008) was filed by Senator Sherwin Gatchalian on September 4, 2019, aimed at
removing government restrictions that hinder potential economic growth by removing the nationality criterion and replacing this with foreign
reciprocity. (Source: http://legacy.senate.gov.ph/lis/bill_res.aspx?congress=18&q=SBN-1008)
41
Among the Consumer Act amendments being considered are: (a) stronger measure to give DTI the authority to close down establishments
caught in the act of manufacturing, distributing, selling, producing, displaying, or importing hazardous and defective products; (b) coverage on
e-commerce and ICT; (c) protection from deceptive and misleading online or digital advertisements; (d) real-time consumer hotline to be made
mandatory for all manufacturers/suppliers/final producers to respond to consumer complaints/suggestions and a stronger policy for return and
refund options; (e) requirement for foreign products with labels to have English or Filipino translation before being allowed entry into the country;
and (f) exemption of businesses offering price-discounted rates for single or bulk-purchase of products or services from the requirement to secure
sales promotion permit from DTI to facilitate growth of e-commerce, among others.

Chapter 9A Expanding Economic Opportunities in Industry | 135

9B
Expanding
Economic
Opportunities
in Services
CHAPTER 9B

Expanding Economic
Opportunities in Services
The services sector functions as an integral backbone of a wide range of domestic and global
industries and has maintained its position as the main growth driver, top contributor to GDP,
and the biggest employer of the country during the first half of the Plan period.

However, with the sudden halt of major subsectors such as tourism and transport services
due to the global pandemic, a shift to more digital-based services may be needed to propel
the services sector. With the new normal, the government now has to establish the integration
of necessary health and sanitary protocols in daily activities to ensure that the public remains
safe in light of the current pandemic. On the other hand, reforms to attract investments,
increase competitiveness, and further improve the country’s business environment are
needed to boost recovery and strengthen the economy’s resilience.

Assessment and Challenges

Assessment: Services remained the country’s major With the global economic slowdown brought
driver of economic growth for the first half of the about by COVID-19 pandemic, the Philippine
Plan period. The share of services to total GDP economy is expected to be in recession in 2020
grew to 60.6 percent in 2019 from 59.6 percent due to the subsequent deceleration of most
in 2017. During the period, services generated domestic economic activities. For the services
a full-year net employment gain of 1.3 million sector, highly-affected sectors include retail trade,
in 2019 in contrast to the employment loss in transportation, and tourism-related activities.
2017. Average growth was the fastest relative to Reduced employment generated in the services
agriculture and industry at 7.2 percent, contributed sector is also expected, as the suspension of
mainly by wholesale and retail trade, finance, production activities for both goods and services
public administration, transportation, real estate, resulted in business closures with many firms
ICT, as well as accommodation and food services. currently facing financial difficulties.
Tourist arrivals in 2019 reached an all-time high of
8.3 million, marking a 15.2 percent increase from Challenges: The services sector will continue
2018 and hitting the 8.2 million target set for the to take a big hit from the COVID-19 pandemic
year. Approved foreign investments recorded in the as the global movement of people and goods
sector have been increasing, but actual net equity continues to be limited due to travel bans and
capital investments have been on a downward trend other restrictions imposed by countries. On the
since 2017. Major reforms passed during the period domestic front, the imposition of various levels of
include the Ease of Doing Business and Efficient community quarantines across the country also
Government Service Delivery Act of 2018 and the resulted in the limited movement of people, goods,
11th Regular Foreign Investment Negative List. and delivery of services.

138 | Updated Philippine Development Plan 2017-2022

Amidst the debilitating impact on services brought reliable needs to be addressed. Demand for tourism
about by the pandemic, digital technologies have and travel, in general, will still be relatively low
provided an opportunity for many businesses until a vaccine is available. For those allowed
to thrive. Business transactions powered by to travel, immigration controls will be stricter
information and communication technology (i.e., and health checks will be carried out frequently.
electronic trade, banking and payments) became a There is a heightened need for regular sanitation
necessity under the “new normal.” Now consumers or disinfection of accommodation, public
and merchants face an increased preference/ establishments, and transport services, as well
demand for online transactions and alternative as a stable provision of sanitation or disinfecting
modes of shopping. To adjust to this behavioral devices in these areas.
change, the readiness of the country’s digital
infrastructure, as well as the strengthening In many service-oriented organizations in the
of digital security and consumer protection, are private and public sectors, alternative/flexible-
critical in moving forward during these times. work arrangements (e.g., work from home) need to
be widely implemented to conform to strict social
IT-enabled platforms that allow the financial distancing protocols. Consequently, enhanced
system to provide secure digital banking and broadband connectivity will be needed to respond
cashless payment systems will be important. For to the increased demand. The energy sector also
logistics, bottlenecks in achieving a seamless, needs to adapt to the change in electricity
uninterrupted supply chain that is efficient and consumption patterns (see Chapter 19).

Targets
For the remaining Plan period, GVA growth rate affecting the sector. The GVA growth rate in the
targets were adjusted based on the new assumptions services sector is projected to expand by 5.8 to 6.8
in the period as recognized and approved by the percent and 7.3 to 8.3 percent in 2021 and 2022,
DBCC on July 28, 2020. The revised services respectively. In addition, the sector is targeted
targets, as shown in Table 9B.1, considered new to create an average net employment of 4.4 to
assumptions from internal and external factors 4.7 million at the end of the Plan period.

Table 9B.1 Updated Plan Targets to Expand Economic Opportunities in Services

BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

Economic opportunities in Services across regions including the digital economy expanded

8.2b
GVA growth rate in the services sector improved (%)a 6.3-7.3 5.8-6.8 7.3-8.3 7.3-8.3
(2016)

Employment generated from the services sector 578

499 1,400-1,600 600-700 4,429-4,729
increased (‘000s)c (2015)
a
GVA at constant 2018 prices. Note that revised GVA growth rate for 2021-2022 is in line with the revised DBCC-approved GDP
estimates last 28 July 2020.
b
National Income Accounts as of August 2020.
c
“Employment generated refers to additional employment generated from the preceding year. Annualized employment
generation for 2014 and 2015 refer to the average of estimates for April, July and October Labor Force Survey rounds which
excluded data of Leyte province. Further note that revision of target employment generation in Services for 2021 and 2022 is
consistent with the revision of target total employment generation (see Chapter 4) and revision of labor productivity in Services
(see Chapter 10) in the same period.”

Chapter 9B Expanding Economic Opportunities in Services | 139

Strategic Framework
The strategic framework (Figure 9B.1) has been facilitated more effectively by maximizing the
reconfigured to include strategies that respond potential of the digital economy. Three subsector
to the rapid changes under the post-pandemic outcomes are envisioned: (a) market access
“new normal” scenario. Expanding economic improved; (b) competitiveness, innovativeness, and
opportunities and increasing access to these resilience increased; and (c) consumer access to
opportunities across regions in the services safe and quality goods and services ensured.
sector are still the main objectives. These can be

Figure 9B.1 Strategic Framework to Expand Economic Opportunities in Services

Strategies
For the remaining years of Plan implementation, Improving market access
the following strategies will be implemented to
achieve the sector and subsector outcomes as well Maximize opportunities that expand access to
as targets: existing and new markets under the ASEAN
Free Trade Agreements and other preferential
agreements with key trading partners. Intensify
Expanding opportunities in efforts in pursuing the Master Plan on ASEAN
services across regions Connectivity 2025 to support the recovery of
intra-ASEAN trade as a regional growth engine.
(See Chapter 15)

140 | Updated Philippine Development Plan 2017-2022

Expanding access to economic Undertake a comprehensive regulatory impact
assessment of existing regulations to ensure that
opportunities in services these do not impose unnecessary burden on
including the digital economy businesses.

Develop sector-specific services trade data,

Increasing competitiveness, innovativeness, including indices, to measure the country’s
and resilience services regulatory environment.

Improve the business environment. Develop high value-added, competitive, and

sustainable sectors.
Continue efforts to ease or remove restrictions
in the services sector and pursue reforms to Support the development of high-value services
open the sector to foreign participation sectors and backbone/supporting industries to
and encourage competition. Restrictions in strengthen linkages of the sector into the domestic
telecommunication and transportation services and global value chains, as well as address
will be given particular attention, including the agglomeration, economies of scale, and gaps in the
amendment of the Public Service Act of 1936. supply and value chains. Assist companies affected
by the pandemic to diversify to more productive
Further improve the business environment with and relevant high-value services that can be easily
the full implementation of the Ease of Doing integrated into the global value chain.
Business and Efficient Government Service
Delivery Act of 2018 and the Philippine Business Facilitate the growth of the IT-BPM industry
Registry and the Business Permit Licensing through improved access to quality ICT
System to minimize, if not eliminate, redundancies infrastructure, affordable power and logistics costs,
and overlaps in requirements and reduce and an enabling regulatory environment, among
transactions costs. In addition, the implementation others. Alternative working arrangements should be
of the Business One Stop Shop (BOSS) and the adopted to conform to social distancing protocols.
creation of the Central Business Portal to streamline
procedures will be prioritized. Continuation of Develop statistics to measure the growing
“Project Repeal” will also be pushed to further digital economy and creative industries, including
eliminate irrelevant laws and regulations. digital platforms and online work. Establish a
clear and comprehensive definition, as well as a
Prioritize the establishment of clear enforcement classification system, for what constitutes a digital
rules for sectors/economic activities liberalized economy and activities categorized as creative
under the 11th RFINL in line with easing foreign industries. A clear delineation on the criteria for
equity restrictions to ensure that existing and classifying goods and services that are considered
new regulations are responsive to the goal of digital and non-digital should also be formulated.
making the country more competitive.

Implement the National Competition Policy to Accelerate the recovery of the tourism and
enhance the competitiveness of the services sector by travel industry.
ensuring that regulations promote fair competition
and level the playing field, particularly in the Aggressively pursue new air services agreements
transportation, energy, and telecommunication to increase access and connectivity to new markets
sectors. (See Chapter 16) and potentially benefit the travelling public, tourism
industry, and airline carriers, among others.

Chapter 9B Expanding Economic Opportunities in Services | 141

Revisit the National Tourism Development Plan Boost tourism from the Middle East and other
2016-2022, local tourism plans, as well as the Muslim-majority countries by supporting the
Tourism Industry Training Plan, to ensure the development of the halal industry and promoting
development and marketing of competitive business partnerships with companies from those
products and destinations; intensify improvement countries. Increase the conduct of halal-related
of market access, connectivity, transport, and seminars and training via webinars to strengthen
infrastructure; and enhance tourism institutional the Philippine halal industry and continue exploring
governance and human resources in line with the potential of incorporating halal in other sectors.
the new normal. In particular, the enhancement
of health and safety protocols in all tourism
Improve access to technology and innovation.
establishments will be prioritized. Trainings on
initial handling of possible infectious disease
Improve digital skills, ICT infrastructure,
cases should be given to tourism personnel and a
and digital connectivity to ensure reliable and
reporting system for suspected cases should be
affordable broadband and internet services.
established.
This will encourage more businesses and
consumers to participate in the digital economy
Strengthen tourism data collection and
and support the continuous growth of the IT-BPM
management through the institutionalization
industry as well as other IT-enabled industries.
of the Department of Tourism’s Local Tourism
Investments in ICT infrastructure need to be
Statistics System.
boosted to meet the surge of online transactions
and the consumers’ expectations for reliable and
Amend the National Accreditation Standards
safe digital connectivity in the new normal.
for all tourism enterprises to include additional
measures related to regular sanitation, disinfection,
Develop the country’s digital financial
promotion of proper hygiene, and responsible
infrastructure to ensure the readiness of the
information sharing.
financial system to shift towards a cash-lite
economy, following the widespread use of financial
Encourage tourism businesses, especially
technologies (fintechs) which have made digital
MSMEs, to craft business continuity plans to
financial services more accessible, available, and
take into account resilience to risks and health-
affordable for Filipinos. Critical infrastructure
related outbreaks, epidemics, and disasters due to
needed to support digital payments include the
natural and human induced hazards.
National ID System (PhilSys, see Chapter 15);
enhanced Real-Time Gross Settlement (RTGS);
Revisit the Maritime Industry Development Plan
Digital Banks, Open Banking Platform; and the
(MIDP) 2019-2028 Program 2 on the Development
QR Ph (national QR code standard). To support
of Shipping Services for Maritime Tourism. Together
MSMEs, financial infrastructures such as digital
with the National Cruise Tourism Development
supply chain financing, online collateral registry,
Strategy and Action Plan, the MIDP Program 2 will
credit risk database, and credit information and
be reviewed to promote the Philippines as a regional
guarantee system, should be established to address
cruise center of Asia through the establishment of
fundamental issues that constrain sustained
design and safety standards for construction and
private sector involvement in MSME financing.
operation of cruise ships, boats, and pleasure craft;
facilitation of maritime tourism investments; and
Promote digital payments in both government
promotion of maritime tourism to global travel
and private sector. The government will engage
industry/ cruise tourism market, in line with the
key stakeholders in both public and private sectors
new normal.
to broaden the use of digital payment platforms
and ensure that these are supported by robust
infrastructure and digital governance standards.
Among the priorities will be compelling use cases

142 | Updated Philippine Development Plan 2017-2022

such as bills payment, receipt of wages, social Intensify benchmarking and comparability
transfers, payment of government fees, and person- of qualifications under the Philippine
to-merchant and business-to-business payments. Qualifications Framework by expanding the
These will be complemented by promotion of coverage of the ASEAN Mutual Recognition
digital literacy, financial education, and consumer Arrangements (MRA) for Tourism Professionals,
protection policies to build consumer trust. among others. This will enable increased access of
more Filipino tourism professionals to tourism-
Pursue the full implementation of the TradeNet related jobs in ASEAN by establishing Philippine
to facilitate contactless trade and to expedite the qualifications at par with ASEAN standards.
processing of documents. (See Chapter 15).
Strengthen the Philippines’ e-commerce
Strengthen IP promotion, protection, regulation,
industry.
and enforcement. (See Chapter 14)
Hasten growth of e-commerce by focusing on
Enhance labor capacities in the services sector. building up digital speed, security, and structure
(see Chapter 11) to expand the market and increase sales.
Establish necessary policies, advocacy, awareness
Pursue reskilling and upskilling of workers and campaigns, payment systems, and infrastructure to
invest in human capital development based on support its growth.
the transformation of jobs, facilities, processes,
and future skills needs. Update course offerings Incorporate digital trade in the updating of the
and training programs to include skills needed Philippine E-Commerce Roadmap 2016-2020.
to cater to higher value-added services and to Consider inclusion of digital trade strategies to
diversify labor skill sets to encourage specialization. keep abreast of emerging digital technologies and
Skilled trainers must also be readily available to platforms and changing consumer habits.
ensure the quick adaptation of the labor force to
current and emerging trends. In addition, proactive Strengthen consumer/producer rights’ protection
development of needed manpower in line with in e-commerce transactions by establishing an
the requirements of industries may be achieved effective dispute settlement mechanism to govern
through intensified labor market information. and streamline processes for the resolution of
complaints, which may involve fraud, cyber-crime,
Address mismatch in industry needs and payment security issues, and security of websites,
education/skills through strengthened linkages among others. Information on the fulfillment of
between industry, government, and academe; e-commerce transactions and the resolution of
review of curricula and courses offered in transaction complaints will be made available.
consultation with MSMEs and industries; and a
study to address the industry needs and matching Generate official industry data to monitor and
of education/skills. measure the contribution of e-commerce and
digital trade to the economy. Create a centralized
Implement provisions of the Transnational and standardized data portal for the e-commerce
Higher Education Act (RA 11448), which allows industry containing relevant statistics such as
foreign higher education institutions to establish market segmentation (i.e., mobile e-commerce, food
a commercial presence or provide educational and beverage e-commerce) and type of ownership,
services in various modes or arrangements with among others.
local partner educational institutions. As a response
to globalization and the FIRe, the law aims to Support entry of new players in the delivery
modernize and improve the competitiveness of the services sector and facilitate collaboration of
higher-education sector by bringing international retail and restaurant owners with delivery service
quality standards and expertise into the country. providers.

Chapter 9B Expanding Economic Opportunities in Services | 143

Promote and regulate alternative modes for Revisit the Lateral Attrition Act (RA 9335)
shopping or retail trade through personal to include improvement in current customs
assistance services, with draft rules and procedures as part of the assessment of
regulations for these services formulated by the performance indicators used by the Bureau of
DTI, LTFRB, and DICT. Protection of both buyers Customs.
and those delivering the service must be ensured.
Accelerate streamlining of customs procedures
Expand microinsurance products to include non- in terms of speed, simplicity, and predictability to
life business insurance and increase business avoid congestion in ports. An efficient system of
owners’ awareness on insurance. Encourage tracking and tracing shipments must be in place
businesses, especially MSMEs, to avail of using the latest available technology. Investments
microinsurance to protect their businesses and in warehouses, cold storage facilities, and paperless
investments and to craft business continuity plans transaction systems need to be increased.
that take into account possibilities of multiple crises
including pandemics. Revisit the management and regulation of
ports to improve efficiency of port operations
Establish secure e-payment systems and ensuring and encourage competition among ports. The
consumer protection online. separation of the regulatory and operational
functions of port authorities and the subsequent
Establish and institutionalize a clear and simple establishment of a single entity for port regulations
digital taxation framework that is efficient may increase the efficiency and competitiveness
and fair. Ensure neutrality in tax treatment of ports by allowing inter-port competition and
among different forms of electronic commerce. encouraging more private sector participation (see
Administrative costs for tax authorities and Chapter 19).
compliance cost for taxpayers should be minimal.
In addition, the system for taxation should Pursue efforts towards the full operationalization
be flexible and dynamic to keep pace with of the TradeNET in line with the country’s
technological and other developments and to align commitment to the ASEAN Single Window.
with the country’s regulations as well as with
current and emerging international regulations Upgrade the National Logistics Master Plan
on digital taxation. (See Chapter 15) 2017-2022 to include innovation and strengthen
its implementation to improve the efficiency
of the national logistics system. Development
Upgrade logistics services. (See Chapter 19)
and diffusion of smart logistics technology
(e.g., drones, automation) are essential to
Develop ports near export-processing zones to
keep abreast of the changing logistics landscape.
provide businesses with the necessary infrastructure
Use of the Supply Chain Analytics (SCAn)
to facilitate shipment of goods and services to
Dashboard and SCAn Reporter, which aim to
export markets at a lower cost. This would also
troubleshoot problems in the supply chain for
decongest Manila ports – lessening shipment
goods and production inputs and in planning
delays and lowering overall transportation costs.
supply chain-related interventions, will be
Immediate promulgation and implementation
promoted. Fees and regulations imposed by
of regulation on international shipping rates will
local and national governments will be rationalized
be critical in addressing high shipping costs.
to reduce the burden for logistics industry
Increased utilization of ports outside Metro
players. Infrastructure upgrades, particularly
Manila (e.g., Batangas and Subic ports), as well as
the construction of transport systems connected
deterrence of smuggling activities, will be crucial
to logistics hubs, are critical in coping with
in eliminating logistical inefficiencies.
the increasing demand for logistics services.
(See Chapter 19)

144 | Updated Philippine Development Plan 2017-2022

Create a competent national body for multimodal Ensuring consumer access to safe and
transport. In the interim, close policy coordination, quality goods and services
deeper integration, and information sharing
towards potential rationalization of functions
Continue vigilance on product safety, value for
should be developed by the Department of
money, and access to quality goods and services.
Transportation (DOTr), Maritime Industry
Authority (MARINA), and Land Transport
Amend the Consumer Act to broaden protection
Franchising Regulatory Board (LTFRB) to ensure
for consumers. (See Chapter 9A)
greater interconnectivity among different modes
of transport and land uses. Provision of franchises
Implement and monitor compliance with the
and permits for multi-modal operations (land, sea,
Financial Consumer Protection Framework
and air) should be automated and streamlined.
(FCP) by BSP-Supervised Financial Institutions
(BSFIs).1 The FCP Framework recognizes the
Review the existing Foreign Ships Co-Loading Act
emerging risks associated with digital financial
for possible amendments. (See Chapter 15)
products and services and provides flexibility
for BSFIs to strategize its consumer protection
Support the adoption of the programs under the
approach commensurate with its business model,
Maritime Industry Development Plan (MIDP)
corporate structure, and risk profile. Thus, the
2019-2028 to accelerate the achievement of
enhanced principles-based Framework aims to
nationally-integrated and globally-competitive
institutionalize consumer protection practices
maritime industry by developing and sustaining
that adopt standards to strengthen fair and
an organizational culture and practice of leading
responsible treatment of financial consumers,
maritime education, innovation, technology and
protection of client information, disclosure and
sustainability.
transparency of information, provision of effective
recourse, and financial education in BSFIs.
Pursue the passage of the Philippine Ship
Registration Act, which will enhance and
rationalize the Philippine maritime industry Promote consumer protection.
through the establishment of a ship registry
system compliant with international maritime Strictly enforce standards and regulations
convention regulations and practices. The bill also to protect and empower consumers against
proposes a shift to tonnage taxation system from unfair trade practices and fraudulent schemes.
4.5 percent corporate income withholding tax to Intensify Market Monitoring of Product Standards
have an attractive Philippine registry and generate across the region to ensure consumer protection.
additional revenues for the government, as well as
promote Filipino ship ownership instead of mere Encourage financial institutions to implement
bareboat chartering. better cybersecurity measures and regulations
for online transactions.

Promote awareness on insurance policies through

various information and education campaigns.

1
Circular No. 1048, Series of 2019. “BSP Regulations on Financial Consumer Protection; Guidelines and Procedures Governing the Consumer
Assistance and Management System of BSP-Supervised Financial Institutions; and Amendments to the Manual of Regulations for Banks and Non-
Bank Financial Institutions.” Issued 6 September 2019.

Chapter 9B Expanding Economic Opportunities in Services | 145

Promote digital literacy to increase consumer regulators to include adjudicatory powers over
capability and confidence in using digital consumer concerns, affording stronger redress
financial services and e-payments. With the new mechanisms for financial consumers. The FCP Bill
economy ushering in greater digitalization of the will amend The Consumer Act of the Philippines
financial system, an intensified digital literacy (RA 7394) and carve out from the same, the
program is needed to increase awareness and provisions of Title IV (Consumer Credit
capacity to use digital financial services, as well Transaction) and have in place a standalone
as protect consumers from potential risks and statute governing Financial Consumer Protection.
threats arising from their usage. The Bill is a result of collaboration among
  members of the Financial Sector Forum, namely, the
Pursue the passage of the Financial Consumer Securities and Exchange Commission, Insurance
Protection Bill, which aims to provide the Commission, Philippine Deposit Insurance
regulatory framework for financial services and Corporation and BSP.2
products offered by financial institutions, including
digital financial services, to protect the interest of Establish an easy-access business verifier
financial consumers and invigorate confidence containing an online database of duly registered
in the financial markets. This measure also seeks businesses with valid licenses to operate.
to enhance the supervisory powers of financial

Legislative Agenda
For the rest of the Plan period, the following legislative agenda will be pursued:

Table 9B.2 Legislative Agenda to Expand Economic Opportunities in Services

LEGISLATIVE AGENDA RATIONALE

Proposed amendments in the bill will include the definition of public utility, which limits its scope to only three
main industries: distribution of electricity, transmission of electricity, and water pipeline distribution system or
sewerage pipeline system. This will enable higher foreign equity participation (over 40%) in other key areas such
Public Service Act as telecommunication and transportation services. Other notable proposed amendments are on the increase in
the applicable penalties and fines to deter poor service delivery; the introduction of rate-setting methodologies
to promote efficiency; a mechanism to review and prohibit foreign investment in public services in the interest of
national security; and a comprehensive baseline survey on regulatory governance and substance.

Proposed amendments to the Law relevant to the services sector will reflect the relaxation of barriers to foreign
investments in the retail sector through lowering the minimum paid-up capital to USD 200,000 from USD 2.5
Retail Trade Act
million and removing the USD 250,000 paid-up capital per store for enterprises engaged in high-end or luxury
products, among others.

Proposed amendments in the Act aim to reduce the minimum employment requirement from 50 to 15 direct local
hires for small- and medium-sized domestic enterprises established by foreign investors with paid-in capital of at
Foreign Investment Act
least USD 100,000. The proposed amendments will also exclude the practice of professions from the coverage of
the foreign investment negative list.

2
In the House of Representatives, the Financial Products and Services Consumer Protection Act was passed on Third Reading June 2, 2020, and
Engrossed Bill (HB 6768) was transmitted to Senate on June 3, 2020.

146 | Updated Philippine Development Plan 2017-2022

 LEGISLATIVE AGENDA RATIONALE

This initiative aims to level the playing field in the data transmission and telecommunications market.
Open Access in Data
Its passage will strengthen the value chain linkages in the industry and services sectors and facilitate the
Transmission Act
realization of the full potential of e-commerce and digital trade.

The law will be revisited to make it more comprehensive in detailing e-commerce transactions, specifying
the rights of consumers, strengthening the imposition of penalties on service providers, and requiring
E-Commerce Act of 2000
service providers to provide high-security measures to ensure safety from possible breaches on data
processing and money handling.

The Law defines the scope and coverage of internet transactions, apart from the sale or exchange of
digital products, and lays down the code of conduct and qualifications for businesses who wish to engage
Internet Transactions Act
in e-commerce. It also proposes the creation of an E-commerce Bureau to handle complaints on internet
transactions, protect consumers’ rights, and facilitate the speedy resolution of complaints, among others.

This measure seeks to establish a legal framework for the “gig economy” that will map out strategies
to promote and strengthen digital careers, as well as provide the needed institutional support. Also
National Digital Careers Act recognizes the emergence of new forms of employment, such as work on digital platforms, and requires
the government to extend the social protection system appropriate to this new mode of work, especially in
times of economic downturns caused by calamities and public emergencies.

The Act mandates MARINA to promote standardized destination and shipping charges among freight
Fair and Transparent
forwarders and agents of international shipping lines operating in the Philippines. Will also mandate DTI,
Destination and Other
PCC, BOC, BIR, and other relevant agencies to assist MARINA in facilitating competition, commerce, and
Shipping Charges Act
an honest revenue system, among others.

Chapter 9B Expanding Economic Opportunities in Services | 147

9C
Expanding
Access to
Economic
Opportunities
in I&S for
Startups,
MSMEs, and
Cooperatives
 CHAPTER 9C

Expanding Access to Economic

Opportunities in I&S for Startups,
MSMEs, and Cooperatives
Critical policy reforms1 have been introduced in recent years to assist startups, MSMEs, and
cooperatives in gaining access to finance and production networks, as well as enhance their
productivity, efficiency, and resilience.

However, full implementation has been impeded by the unprecedented spread of COVID-19.
Based on the government’s rapid assessment survey for businesses conducted during
the initial phase of the community quarantines in major urban areas of the country, a less
optimistic business outlook is reported across firms of different sizes, with the most
pessimistic in the education (36%), tourism (35%), and transport (34%) sectors. This is likely
in recognition of the fact that business operations would have to be reconfigured and social
distancing protocols will remain in place indefinitely until a cure is found. Smaller enterprises
have expressed a strong clamor for government assistance given that they have less
capacity to handle large shocks with their limited asset size, lack of economies of scale, and
structural inefficiencies, evident even prior to the onslaught of the pandemic. In response, the
government has formulated urgent interventions to revive consumer and business confidence.2
Focusing on laying down a healthy and resilient Philippines, the medium-term strategies
will leverage the digital economy and put in place antifragility measures. This will address
the constraints of operating under the new normal, attract further investments, and increase
the resilience of startups, MSMEs, and cooperatives.

Assessment and Challenges

Assessment: The legal framework essential for Ease of Doing Business and Efficient Government
startups, MSMEs, and cooperatives to access Service Delivery Act of 2018, Personal Property
finance and production networks and strengthen Security Act of 2018, Amended Cooperative
the startup ecosystem was institutionalized. Development Authority (CDA) Charter, Revised
Among the significant legislations passed were: Corporation Code of the Philippines Act of 2019,

1
These include the enactment of the following legislations: Personal Property Security Act of 2018 (RA 11057), Amendment of the Cooperative
Development Authority (CDA) (RA 11364), Revised Corporation Code of the Philippines Act of 2019 (RA 11232), Philippine Innovative Startup
Act of 2019 (RA 11337), and Philippine Innovation Act of 2019 (RA 11293).
2
Source: http://www.neda.gov.ph/wp-content/uploads/2020/05/We-Recover-As-One.pdf

150 | Updated Philippine Development Plan 2017-2022

Philippine Innovative Startup Act of 2019, and adoption of enterprises remains low, and seed
Philippine Innovation Act of 2019. Meanwhile, funds and grants available to support incubation
these reforms have yet to gain traction as and startup development remain scarce while
industry-related Foreign Direct Investments venture capitalists are still limited. As further
(FDIs) significantly dropped in 2019 reaching revealed by the current pandemic, the majority
only USD 0.27 billion in 2019, lower relative to of micro and small enterprises are entrenched in
the figure posted in 2016 at USD 0.31 billion. the analog manner of conducting business and do
not have business continuity plans (BCPs) in place
Challenges: Startups, MSMEs, and Cooperatives in the face of national emergencies. The majority
have difficulty accessing finance due to lack also have business operations that are vulnerable to
of collateral and inability to comply with supply chain disruptions. Government initiatives to
documentary loan requirements of formal enhance sectoral productivity remain fragmented.
lending institutions, exacerbated by the lack Lastly, foreign participation is restricted in
of a credit risk database with information critical sectors, thus limiting competition and
on the creditworthiness of micro and small investment flow in the country.
enterprises. Innovation and technology

Targets
Targets for investments and MSME-related indicators were adjusted downward considering new assumptions
in the period, consistent with the DBCC revised growth targets last July 2020.

Table 9C.1 Updated Plan Targets to Expand Economic Opportunities in I&S for Startups, MSMEs,
and Cooperatives

BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

Total investments increased

729,000f
Total approved investments increased (PHP million)a 1,067,000 1,022,000 1,094,000 5,838,000
(2016)

8,280
Net FDI increased (USD million)b None None None None
(2016)

Access to finance improved

Percent of allocation for micro and small enterprises to total 3.81d

8c Increasedc,e Increasedc,e Increasedc,e
bank loan portfolio (%)c (2016)

5.44d
Percent of allocation for medium enterprises (%)c 2c Increasedc,e Increasedc,e Increasedc,e
(2016)

a
Baseline figure used to compute the plan targets reflects total approved investments submitted by investment promotion
agencies to the Board of Investments and the PSA. Members of the Philippine Investment Promotion Plan (PIPP) Steering
Committee approved the downward revised target of 7 percent annual increase in IPA-approved investments (from the original
10%) for 2021 and 2022, considering the DBCC revised growth forecasts due to the COVID-19 pandemic.

Chapter 9C Expanding Access to Economic Opportunities in I&S for Startups, MSMEs, and Cooperatives | 151
b
While there were no targets set, the indicator was included in the RM for monitoring purposes. Net foreign direct investment
for 2016 was recorded at USD 8.28 billion. Gross domestic product in current prices for the same year was recorded at USD
318.6 billion.
c
In accordance with the Magna Carta for MSMEs (RA 6977 as amended by RA 8289 and RA 9501). Used as proxy indicator
for “Proportion of small scale industries with loan or line of credit” (SDG indicator 9.3.2 [Tier 3]) to measure improvement of
access to finance. The Planning Committee on Economic Development and the PSC approved revision of targets last March 2020
(pre-pandemic) to “increased” given that the ten-year mandatory credit allocation for micro, small, and medium enterprises
has already lapsed in June 2018, as stipulated under the law.
d
Baseline updated as of March 31, 2017.
e
Relative to actual accomplishment of the previous year.

Strategic Framework
Figure 9C.1 Strategic Framework to Expand Economic Opportunities in I&S for Startups, MSMEs,
and Cooperatives

152 | Updated Philippine Development Plan 2017-2022

Strategies
Retail Trade Act, and Foreign Investment Act (see
Expanding economic Chapters 9A and 9B). Investment incentives will
opportunities in I&S for be rationalized to be more efficient and effective in
startups, MSMEs, and supporting development priorities (e.g., encourage
more venture capital and angel investments in
cooperatives across regions startups) (see Chapter 15). Such priorities will
be considered in the formulation of the Strategic
Increasing total investments Investment Priority Plan (SIPP) as well as in the
Local Investment and Incentives Code.3
Facilitate growth of startups and MSMEs by
incentivizing their expansion and subsequent Improve the business climate, especially by
upgrade. In restructuring the incentives (and creating a startup-friendly environment. The
disincentives) in the regulatory framework, government will enhance business incubation
facilitating the growth of MSMEs to eventually support and accelerate services for startups, lessen
become globally competitive will be a key goal. administrative burdens and complexity of
Policy shifts will take into account the following: regulatory procedures for startups, and reduce,
if not eliminate, the regulatory protection of
• Provide appropriate fiscal and non-fiscal incumbents (see Chapter 16). Further, national
assistance to innovative and growth-oriented and local governments will speed up streamlining
enterprises (e.g., tech-based startups and micro of agency processes and requirements for business
and small enterprises that are innovation- registrations and permit issuances 4 and will be
driven, etc.) appropriate with the stage of streamlined through digital platforms (see also
business operations; Chapters 5 and 9A). A One-Stop-Shop for Startups
and a Startup Green Lane with ARTA will
• Ensure that provision of grants and other be created. In addition, the Philippine Startup
financial or technical assistance, are time-bound Development Program will support incubators,
and performance-based, as provided under the accelerators, and makerspaces by creating
Corporate Recovery and Tax Incentives Reform opportunities for innovative startups to gain access
Act (CREATE); and to marketing and technical support as well as
linkage to potential collaborators locally and
• Streamline the regulatory environment to globally (see Chapter 14). A whole-of-nation
reduce compliance costs for all firms. approach in attaining inclusive and sustainable
peace will also be pursued (see also Chapter
Relax foreign equity restrictions, rationalize 18). Lastly, improving quality and reducing the
investment incentives, and promote job-creating cost of utilities, particularly through energy and
investments. The government will further water sector reforms (see Chapters 9A and 19) will
open up the construction sector and pursue be implemented.
the amendments to the Public Service Act,

3
Joint Memorandum Circular No. 2011 -01 forms a guide in crafting the LIIC.
4
The Central Business Portal (CBP) and the National Business One-Stop Shop (NBOSS) were established to support the implementation of the
EODB Act. The CBP is an online system aimed at providing a faster and more convenient way of registering businesses and completing startup
requirements. It is designed to receive and capture data on business-related transactions and provide links to online registration services of various
National Government Agencies (NGAs). The NBOSS is the physical co-location where applicants can register their business and employees,
submit documents, and avail of its online services. In the same manner, the Electronic Business Process Licensing System (eBPLS) is being rolled
out to the LGUs nationwide.

Chapter 9C Expanding Access to Economic Opportunities in I&S for Startups, MSMEs, and Cooperatives | 153
Accelerate investment promotion activities. Facilitate access to finance of startups, MSMEs,
The Philippines will be promoted as a and cooperatives.
complementary host country to target companies
in the manufacturing industry. The conversion Improve access to finance of innovative and growth-
and realization of existing investment leads will oriented enterprises. In line with the Philippine
be intensified. The retention and expansion/ Innovation Act, the government will provide
diversification opportunities for current locators technical assistance grants and facilitate access to
in the Philippines will also be pursued (see finance. Appropriate metrics will be established
Chapter 9A). to ensure that these enterprises, as beneficiaries
of government support, indeed boost innovation
and generate decent jobs. Access to low-cost
Improving access to finance
financing will also be provided to competitive and
export-oriented MSMEs, if merited under the
Support transition to the formal economy of
CREATE/SIPP framework.6 Blended finance or the
micro and small enterprises.
strategic use of development finance to mobilize
funding for projects with societal benefits but
Streamline LGU processes and requirements for
also provide financial returns to the investor,
registration and securing business permits of
will also be tapped.
barangay micro business enterprises (BMBEs)
targeting informal sector operators. Streamlining
Promote the development of fintech and
LGU processes for BMBE registration and business
innovative financing alternatives. Access to mobile
permits5 will facilitate the transition of micro
and digital technology, as well as deepening
and small enterprises to the formal economy and
digital fluency will be improved to help further
will broaden their access to tap formal financing
social equity and financial inclusion of MSMEs.7
channels. Instituting a report and feedback system
Other non-traditional initiatives from the private
on LGUs’ non-compliance in these areas can be
sector and startups to develop appropriate
considered under the Department of the Interior
financial products and services for MSMEs and
and Local Government (DILG) or the Anti-Red
cooperatives will also be supported (see Chapter
Tape Authority’s (ARTA) monitoring as part of
9A). Initiatives such as merchant acceptance of
efforts to improve the LGUs business environment
digital payments, digital banks, and open banking
(see also Chapter 16).
will be pursued to promote access to and use of
digital financial transactions 8 (see Chapter 9B).
Government will also facilitate access of startups
to venture financing and angel investors (see also
Chapter 14).

5
For instance, streamlining can be done by setting more reasonable standard business permit fees for micro and small enterprises and granting
leniency, particularly to informal sector operators who will register for the first time.
6
Source: http://www.neda.gov.ph/the-philippine-innovation-act/
7
Provision of branchless banking services with access to savings and loans through the use of mobile phones and IT facilities are instances of
fintech startups revolutionizing the way small enterprises and cash-strapped households access finance.
8
These initiatives are under the BSP’s Digital Payments Transformation Roadmap (DPTR) 2020-2023. The DPTR is a 3-year roadmap that
outlining the BSP’s priority policy initiatives and strategies in advancing an efficient, inclusive, safe and secure digital finance ecosystem that
supports the diverse needs and capabilities of individuals and firms. The roadmap envisions to achieve the goal of converting 50% of the total
volume of retail payments into digital form and onboarding 70% of Filipino adults to the formal financial system.

154 | Updated Philippine Development Plan 2017-2022

In line with the Personal Property Security Act 9, a The proposed establishment of an ERF is one of
system for the use of movable collateral as security the suggested revisions on the proposed
for loans will be put in place. The CDA with BSP will Amendments to the Magna Carta for MSMEs
promote the establishment of Credit Surety Funds (see Chapter 9C Legislative Agenda) and is
across local governments to enable more MSMEs, suggested as part of Small Business Corporation’s
particularly those hit hard by the pandemic, to capitalization to be funded by the national
gain access to finance10 (see Chapter 15). government. Ongoing debt relief programs are
being implemented, including suspension of
Promote value chain and supply chain financing. imposition of non-interest fees and charges on
The Bangko Sentral ng Pilipinas (BSP), in loans incurred. In the post-community quarantine
partnership with the Asian Development Bank period, the following interventions will be
(ADB), is implementing a pilot agriculture value monitored and extended if needed: (a) payment
chain financing (AVCF) project 11, which aims to deferment to government (e.g., deferment of tax
demonstrate the viability of AVCF and encourage remittance such as withholding tax, VAT, SSS,
more banks to lend to the agriculture sector using PhilHealth); (b) payment deferment to debtor (e.g.,
this approach. This initiative will also benefit rent, banks, utility companies); (c) tax discounts or
MSMEs, particularly agri-oriented ones. The BSP tax credits; (d) low-interest loans from government;
also aims to promote supply chain financing (SCF) and (e) low -interest loans from banks.
in the banking sector as an innovative financing
approach to improve access to financing of smaller
enterprises. A study will be conducted in 2021 Expanding access of startups,
to identify strategic interventions that can be MSMEs, and cooperatives to
implemented by BSP and other players to develop
a dynamic SCF market in the country. economic opportunities in I&S
including the digital economy
Extend grants and soft loans to startups, MSMEs,
and cooperatives to sustain business operations.
On top of providing a loan guarantee fund, existing Improving access to production networks
government programs targeting MSMEs will
continue to be implemented and monitored.12 Utilize digital platforms in mapping out value
and supply chains to find alternative suppliers
Establish an Enterprise Rehabilitation Fund and address production bottlenecks. In providing
(ERF) and implement adjustment measures to technical assistance to enterprises, digital platforms
startups, MSMEs, and cooperatives severely will be useful in linking farmers, producers,
affected by calamities and national emergencies. suppliers, distributors, and retailers to consumers.

9
Under the Personal Property Security Act of 2018, small businesses, particularly MSMEs, farmers, and fisherfolk are granted greater access to
credit by allowing the use of non-traditional collaterals such as accounts receivables, inventory, crops, livestock, consumer goods, machinery,
equipment, and intellectual property rights, among others. This will be operationalized through the establishment of a unified and modern
legal framework for securing obligations with personal property. Under the law, a Registry shall be established and administered by the Land
Registration Authority. The centralized, nationwide Registry shall contain the following information: Initial notice of security interest and lien in
personal property; Amendment notice providing new information or continuing the period of effectiveness of an initial notice; and Termination
notice. (Source: https://www.officialgazette.gov.ph/2018/08/17/republic-act-no-11057/)
10
As part of expanding its developmental function, the Cooperative Development Authority (CDA) has created a CSF unit that will register,
regulate, and regularly monitor and supervise the operations of CSF cooperatives. This is expected to translate to growth of CSF Cooperatives.
11
Pilot is implemented with 5 participating banks including (1) Rizal Microbank, (2) Rural Bank of San Leonardo, (3) Rural Bank of Sta. Catalina,
(4) 1st Valley Bank, and (5) Producers Bank.
12
Sufficient government support for MSME financing, to be funded under the General Appropriations Act or relevant legislation, will be
considered in all forms of economic stimulus programs. This is essential to help the MSME sector to recover from the adverse effects of the
pandemic. Some of these programs which target micro and small enterprises are: (a) Livelihood Seeding Program – Negosyo sa Barangay;
(b) Shared Service Facilities Project/Fabrication laboratories; (c) Pondo sa Pagbabago at Pag-asenso Program; (d) Small business corporation
financing programs; and (e) Go Lokal!.

Chapter 9C Expanding Access to Economic Opportunities in I&S for Startups, MSMEs, and Cooperatives | 155
This will further reduce information asymmetry, Improving productivity, efficiency,
lower transaction costs, and enhance domestic and resilience
value and supply chain resilience. Integration of
all relevant existing GIS platforms of relevant Increase access to appropriate technology
agencies will also be pursued (see Chapter 9A). including adoption of digital platforms.
Adoption of appropriate technologies will
Create linkages between startups, MSMEs, enable startups and MSMEs to gain access to
cooperatives, and other large enterprises (LEs) markets and help them internationalize. For
to spur innovation and create new markets. Social cooperatives, deploying digital platforms will
enterprises and inclusive business (IB) models will increase their client base and improve efficiency
be promoted. The government will also facilitate of their operations. Consistent with its initiatives
linking micro and small suppliers to cooperatives to promote and implement the e-commerce
for purposes of facilitating access to finance, and roadmap, the government, through the RIICs, will
to medium and large enterprises to access/diversify assist enterprises in adopting applicable digital
markets and enhance supply chain resilience, platforms and digital payment channels (see Chapter
leveraging digital platforms, as appropriate. 9B). The government will provide appropriate
support through training programs that will help
Support integration of SMEs into global value MSMEs and cooperatives adapt to new digital
chains. SMEs will be capacitated to address their technologies and platforms, as relevant to their
internal limitations 13 and unlock their potential needs (see Chapter 9A).
to internationalize.14 Support will be provided
to enhance capacities of exporters in sectors Strengthen innovation capacities of startups,
where the country has significant comparative MSMEs, and cooperatives. A PIDS’ 2015 Survey
advantage 15 through technical support.16,17 The on Innovation Activities (SIA) pointed out that
government will also scale up efforts to facilitate large firms tend to be more innovation active
access of exporting SMEs to information on than smaller enterprises, and rarely tap technical
foreign distribution networks and foreign assistance from government research institutions.18
regulations, enhance access to business and trade As part of implementing the Philippine i3s, the
finance, streamline customs procedures, further RIICs will disseminate available information on
address logistics costs, and reduce tariffs (see box local or foreign-developed technologies for
article 9A.1, Chapters 9B and 15). adoption, whichever is more cost-effective. The
RIICs will also allow local enterprises to tap the
Improve logistics. (See Chapter 9B) research arms of State Universities and Colleges
(SUCs) and Research Development Institutions
(RDIs) and network with industry experts to
enhance their entrepreneurial knowledge and

13
Lack of internal capabilities include difficulty in identifying foreign business opportunities, inadequate human resource trained to deal with
exporting, and lack of production capacity. These are some of the most challenging for SMEs to overcome.
14
Internationalization activities can be classified into six categories: (a) direct exporting; (b) direct importing; (c) investment abroad; (d) being
subcontractors to foreign enterprises; (e) having foreign subcontractors; and (f) cooperation with foreign enterprises under joint ventures, non-
equity alliances, licensing, and franchising.
15
For instance, to induce the local construction industry to globalize, construction firms who are ready to tap global and regional opportunities
will need low-cost financing or loan guarantees to undertake overseas construction projects.
16
Technical support can also be provided through capacity-building programs. For instance, local auto parts and electronics suppliers need
capacity building to comply with the technical requirements of domestic e-vehicles, special purpose vehicle (SPV) producers, and other producers
under the aerospace industry. In particular, the AS9100 Training Program (Aerospace Quality Management System) will enable local auto parts
and electronics suppliers to supply the technical requirements of the aerospace industry.
17
Assistance can also be extended in the ship-building industry by promoting the use of fiberglass-reinforced plastics (FRP) or steel to replace
wooden-hulled vessels.
18
Albert J.G. et al. Measuring and Examining Innovation in Philippine Business and Industry. September 2017. (Source: https://pidswebs.pids.gov.
ph/CDN/PUBLICATIONS/pidsdps1728.pdf)

156 | Updated Philippine Development Plan 2017-2022

enable them to be Industry 4.0-ready. Further, efficiency, and resilience of startups, MSMEs, and
IPOPHL’s IP Depot, an online portal where cooperatives will be pursued. The National Wages
technology providers and their counterpart and Productivity Commission (NWPC) and its
technology adaptors may meet and match, Regional Tripartite Wages and Productivity Boards
will also be promoted to target growth-oriented (RTWPBs) will strengthen and expand partnerships
startups, enterprises, and cooperatives. with concerned government agencies, industry
associations, employer groups, and labor groups
Promote the use of accredited certification, to foster synergy in the deployment of the
testing, inspection, verification, and calibration Productivity Toolbox 20 (see Chapter 10).
among MSMEs to ensure safety, reliability,
and quality of their products and services. (See Create an M&E framework on government
Chapter 9A). While more dispersed access points flagship programs for startups, MSMEs, and
will be provided for these common service facilities cooperatives. Given the presence of various
especially in the regions, efforts to promote these but fragmented initiatives to assist micro and
available services will be scaled-up, targeting small enterprises, the effectiveness of various
MSMEs to enhance their productivity. The DOST government flagship programs will be evaluated
primarily provides these services through the based on how they contribute to MSME
One-stop Laboratory Services for Global development. For cooperatives, quantifying their
Competitiveness (OneLab) 19, a network of economic contribution to both national and
laboratories aimed at broadening access to testing regional development will allow them to gain
and calibration services at a single touchpoint greater support and assistance. For startups,
through an IT-based platform. The online referral an M&E framework will be considered in
platform system networks all the laboratories of the implementation of the Philippine Startup
DOST-attached agencies and other government Development Program targeting growth of
and private laboratories for seamless handling innovative and tech-based startups.
of testing and calibration services, which are
beneficial for MSMEs in terms of ensuring Establish relevant statistics for startups,
product quality and safety. MSMEs, and cooperatives. Regular collection
and publication of relevant statistics on startups,
Improve access, quality, speed, and affordability MSMEs 21, and cooperatives will be pursued. This
of broadband communications technology for will facilitate the performance tracking of these
MSMEs. Improving telecommunications services sectors and become the basis for evidence-based
in the country offers a myriad of benefits for and targeted interventions. Data collection on the
MSMEs including improving business efficiency, following areas will help surface specific barriers
opening up new markets, and helping enterprises and unlock SMEs potential to internationalize:
adapt to changes in consumer preference brought (a) comprehensive data by enterprise size;
about by the pandemic (see Chapters 9B and 19). (b) information on overall business environment
and barriers to trade as experienced by SMEs; and
Ensure that all government agencies with (c) information and monitoring on targeted
productivity-enhancing initiatives are policies, best practices, and capacity-building
coordinated. Close coordination of relevant programs for exporting SMEs or those ready
agencies concerned with enhancing productivity, to enter into GVCs.22 As part of establishing

19
For interested MSMEs, the OneLab website can be accessed through: https://customer.onelab.ph/
20
This package of training and technical assistance services is designed to help MSMEs identify and address productivity gaps through appropriate
and needs-based productivity tools and technologies. It also helps MSMEs design and implement productivity-based incentive schemes to ensure
growth in workers’ income commensurate to their productivity.
21
The Department of Information and Communications Technology (DICT) is working with the Philippine Institute for Development Studies
(PIDS) on an upcoming survey on the IT BPM sector (FY2020) that shall yield data on MSMEs in the sector.
22
Source: https://www.apec.org/Publications/2020/04/Overview-of-the-SME-Sector-in-the-APEC-Region

Chapter 9C Expanding Access to Economic Opportunities in I&S for Startups, MSMEs, and Cooperatives | 157
comprehensive MSME financial statistics, the Undertake business continuity planning (BCP)
BSP, in partnership with the ADB, is exploring and capacity building to enhance resilience.
the design and conduct of the MSME survey to The adoption of BCPs will be promoted and
generate more granular data on MSME access encouraged to help startups, MSMEs, and
to finance. The results of this survey will cooperatives to prepare for and overcome potential
provide deeper market insight for financial risks to business. Towards enhancing resilience
service providers to help them broaden their of cooperatives, the Amended CDA Charter (RA
products and services available in the market. 11364) requires all registered cooperatives to
develop BCPs to address all types of business risks.
In a similar manner, capacity-building measures
will be provided, targeting startups and MSMEs.

Legislative Agenda
For the rest of the Plan period, the following legislative agenda will be pursued:

Table 9C.2 Legislative Agenda to Expand Economic Opportunities in I&S for Startups, MSMEs,
and Cooperatives

LEGISLATIVE AGENDA RATIONALE

Expanding economic opportunities in I&S for startups, MSMEs, and cooperatives across regions

The bill will establish an Enterprise Rehabilitation Fund for calamity-stricken MSMEs. It will also provide
Amendment of the Magna Carta
MSMEs with free selling space in government buildings, structures, and open areas, as well as free selling
for MSMEs
areas or discounted rent in private malls and other commercial selling establishments.

GUIDE Bill (Government Financial

Institutions Unified Initiatives The bill will provide financial assistance to firms that are strategically important to economic recovery in
to Distressed Enterprises for view of their role in providing employment and supporting the Philippine economy.
Economic Recovery)

Institutionalization of the Pondo This initiative aims to institutionalize the Pondo sa Pagbabago at Pag Asenso Program of the government
sa Pagbabago at Pag asenso (P3) to develop entrepreneurship and contribute to inclusive economic growth and provide accessible and
Program reasonably-priced financing to micro entrepreneurs to help them avoid usurious rates.

The bill seeks to amend existing provision requiring/mandating various Registered Business Entities
Amendment of the Tax Incentives
(RBEs) and Investment Promotion Agencies (IPAs) to submit to NEDA relevant information needed
Management and Transparency Act
to conduct economic cost-benefit analysis (CBA) and to have the flexibility to refine scope of data
(TIMTA)
requirement and data tools that will adequately capture information relevant to the conduct of this CBA.

Expanding access of startups, MSMEs, and cooperatives to economic opportunities in I&S including the digital economy

Amendments to the
(See Chapter 14 Legislative Agenda)
Intellectual property (IP) Code

House Bill No. 4413 proposes to establish a central online Registry for all Warehouse Receipts,
Amendment to the
which shall be eventually integrated with other existing registries. This will strengthen and
Warehouse Receipts Law
modernize the Warehouse Receipts Law of 1912, as amended, otherwise known as Act No. 2137.

158 | Updated Philippine Development Plan 2017-2022

10
Human Capital
Development
Towards Greater
Agility
 CHAPTER 10

Human Capital Development

Towards Greater Agility
The country is on the right track in accelerating human capital development by prioritizing
reforms and investments in improving nutrition and health, education, and income-earning
ability. Major reforms in expanding access to nutrition health and transformative education
were instituted in the past three years. The Universal Health Care Law was enacted to ensure
that care for all Filipinos at all life stages is guaranteed. Implementation of the K to 12 Program
and the Universal Access to Quality Tertiary Education Law will also enable Filipinos to
continuously develop their skills towards achieving their full potential as productive members
of a rapidly changing society.

In 2020, the Philippines’s score is 0.52 in the Human Capital Index (HCI). Though this is higher
than the average among countries in the lower middle-income group, this means that a child
born in the Philippines today will likely reach only 52 percent of his or her potential come
adulthood. With the COVID-19 pandemic, risks and challenges in enriching human capital
have become even more significant.

For the rest of the Plan period, the government will focus on addressing challenges that
hamper the full realization of Filipinos’ full potential, such as malnutrition, early pregnancy, and
poor quality of education, in addition to disruptions in service delivery due to the COVID-19
pandemic. Efforts will focus on strengthening strategies that transform the country’s human
capital towards greater agility, for a healthy and resilient Philippines.

Assessment and Challenges

Nutrition and Health Mortality among infants, based on the National
Demographic and Health Survey (NDHS), slightly
decreased from 23 per 1,000 live births (LB) in 2013
Outcomes on nutrition and health are based on
to 21 per 1,000 LB in 2017. Mortality in children
several data sources. Some progress has been made,
under-five years of age declined significantly from
especially considering the most recent data; even so,
31 per 1,000 LB to 27 per 1,000 LB over the same
these fell below target.
period.1

  2017 National Demographic and Health Survey (NDHS).

1

Chapter 10 Human Capital Development Towards Greater Agility | 161

There were significant reductions observed in the economic influences on the TB epidemic.4 Also, the
prevalence rate of stunting across age groups, but increase in TB notification rate of cases arose from
not in the prevalence rate of wasting. For the under active case finding and mandatory notification of
5 years of age, prevalence of stunting fell from 33.4 cases by private physicians.
percent in 2015 to 28.8 percent in 2019; prevalence
of wasting did not show a significant decline, from Meanwhile, there was remarkable progress in
7.1 to 5.8 percent over the same period. Both eliminating malaria cases. The percent of malaria-
figures in 2019 did not meet the PDP targets. Note free provinces went up from 40 percent in 2016 to
that there were no targets set for the prevalence of 62 percent in 2018. This puts us on track to eliminate
stunting and wasting for the older age groups. the disease by 2030.5

There were varying degrees of success with respect Using the revised National Health Accounts, the
to addressing the triple burden of diseases.2 There household out-of-pocket spending on health as
was a decrease in mortality rate attributed to percentage of total health expenditure has declined
lifestyle-related diseases, from 462.5 deaths per from 45 percent in 2016 to 42 percent in 2019. This
100,000 population (aged 30–70 years old) in 2016 may be due to the following health programs: (a) No
to 453.8 deaths per 100,000 population (aged 30–70 Balance Billing Policy for indigent patients; (b) new
years old) in 2018. However, there was an increase and enhanced PhilHealth benefit packages (e.g.,
in reported cases of HIV/AIDS, from 9,624 newly Z benefit packages for children with disabilities,
diagnosed cases in 2016 reaching 12,778 in 2019. expanded primary care benefits, and newborn care
Incidence of Tuberculosis (TB) also increased package); and (c) DSWD’s Libreng Gamot Para
from 434 per 100,000 population in 2016 to 554 sa Masa (Lingap ng Masa) that provides medical
per 100,000 population in 2018.3 The increase in assistance fund to indigent patients. Also, faster
TB incidence may be explained by a combination increase in health spending of government (11.5%)
of case-detection gaps, delays in diagnosis, health compared to household (7.9%) was observed from
system weaknesses, and broader social and 2016 to 2019.6

2
  Communicable, non-communicable, and urbanization- and industrialization-related diseases.
3
  Philippines: Tuberculosis country profile 2017. (Source: https://extranet.who.int/sree/Reports?op=Replet&name=/WHO_HQ_Reports/G2/
PROD/EXT/TBCountryProfile&ISO2=PH&outtype=pdf)
4
  Source: National TB Prevalence Survey.
5
  DOH. Malaria Control Program. (Source: https://www.doh.gov.ph/malaria-control-program)
6
  Average annual growth rate from 2016 to 2019.

162 | Updated Philippine Development Plan 2017-2022

Table 10.1 Core Health and Nutrition Outcome Indicators: Targets vs Accomplishments

BASELINE VALUE ACCOMPLISHMENT TARGET

INDICATORS
(YEAR) (YEAR) (YEAR)

23 21 15
Infant mortality rate decreased (per 1,000 live births)
(2013) (2017) (2022)

31 27 22
Under-five mortality rate decreased (per 1,000 live births)
(2013) (2017) (2022)

Prevalence of stunting (%)

33.4 28.8 26.7

a) Below 5 years old
(2015) (2019) (2019)

31.2 25.2
b) 5 – 10 years old
(2015) (2019)
No targets
31.9 26.8
c) 10- 19 years old
(2015) (2019)

Prevalence of wasting (%)

7.1 5.8 5.5

a) Below 5 years old
(2015) (2019) (2019)

8.3 8.0
b) 5 – 10 years old
(2015) (2019)
No targets
12.5 11.7
c) 10- 19 years old
(2015) (2019)

Mortality rate attributed to cardiovascular disease, cancer,

diabetes, and chronic respiratory diseases decreased 462.5 453.8 428.3
(number of deaths per 100,000 population aged 30-70 (2016) (2018) (2018)
years old)

434 554 287.0

Tuberculosis incidence decreased (per 100,000 population)
(2016) (2018) (2018)

9,264 12,778 15,000

Number of newly diagnosed HIV cases decreased
(2016) (2019) (2019)

30 62
Percent of malaria-free provinces xx
(2016) (2018)

Out-of-pocket health spending as percentage of 45.0 42.0 No target in 2019

total health expenditure (2016) (2019) TBD for 2022

The use of modern contraception, on average, has especially among married women 15 to 19 years of
increased marginally between 2013 (23.5%) and age (from 20.6 to 29.7%) and those 20 to 24 years of
2017 (24.9%) considering all women aged 15 to age (from 34.3 to 44.0%).
49 years. However, among married women from
the same age group, the increase is much higher

Chapter 10 Human Capital Development Towards Greater Agility | 163

Table 10.2 Use of Modern Method of Contraception

CURRENT USE OF ANY MODERN METHOD OF MARRIED WOMEN CURRENTLY USING ANY MODERN
AGE GROUP CONTRACEPTION (ALL WOMEN) METHOD OF CONTRACEPTION
2013 2017 2013 2017

TOTAL 23.5 24.9 37.6 40.4

15-19 2.4 2.9 20.6 29.7

20-24 16.2 18.7 34.3 44.0

25-29 30.6 31.2 42.3 43.2

30-34 37.7 39.6 44.9 47.0

35-39 37.7 37.5 42.5 44.7

40-44 33.9 35.7 38.8 40.0

45-49 20.2 21.4 23.5 24.4

Managing the COVID-19 pandemic exposed the improving the capacity of target beneficiaries for
shortcomings of the country’s health care system home-based care; and use other media to deliver
particularly in terms of prevention, control, information, education and communication
and mitigation of infectious diseases. It has also services on proper nutrition and health. Moreover,
become obvious that the country lacks health care amid competing demands for resources, it is also
workers and that digital infrastructure and health important to ensure efficient spending and to
information system are fragmented and inefficient. secure enough funds for the full implementation of
The fragmentation of service delivery has made key legislations such as the Universal Health Care
coordination and communication between national (UHC) Act and the Kalusugan at Nutrisyon ng Mag-
and local government units difficult. Furthermore, Nanay Act.
since service delivery is mostly facility-based, the
ensuing mobility restrictions threatens to worsen
nutrition and health outcomes, or reverse the gains
achieved so far. Over the near term, the involuntary
Basic, Higher, and Technical
shifts in lifestyle and behavior in response to the Education
quarantine restrictions has resulted in a rise in
mental health problems, especially among those The Philippines has institutionalized reforms to
directly affected by the pandemic (e.g., caught the expand access to education at all levels (i.e., K to
virus, lost their loved ones, lost their jobs). 12 Program, Universal Access to Quality Tertiary
Education). A major accomplishment is the increase
Ultimately, the sector with its current capacity must of the mean years of schooling to 10.0 in 2018,
be able to effectively implement its programs and which is close to the end-of-plan target of 11.3. At
provide quality services both at the national and the basic education level, the elementary and junior
local levels, in pursuit of improving nutrition and high school net enrolment rates (NERs) were at 94
health care outcomes, while maintaining efforts and 83 percent versus the original 2019 targets of
to contain and prevent the spread of COVID-19 93.31 and 72.32 percent, respectively, while K to 6
including preparations for massive vaccination. and G7-G12 completion rates in 2019 were at 97
Moving forward, the sector will expand its use and 77 percent versus the targets of 87.18 and 77.48
of innovative delivery mechanisms, such as percent for elementary and junior high school.
telemedicine; enhance outreach programs by

164 | Updated Philippine Development Plan 2017-2022

However, there remains a big gap in the quality of At the higher education level, the Universal Access
education. Compounding the problem is that the to Quality Tertiary Education Act benefitted
data on quality of learning are not comparable over 1,132,620 higher education students in SUCs and
time. The 2017 NAT scores could not be compared LUCs in AY 2018-2019. In technical and vocational
to the 2015 baseline data because the tests have education and training (TVET), while certification
been modified in 2017 to be more aligned with rate remained higher than 90 percent, most of the
21st century skills, as emphasized in the K to 12 TVET courses offered are low-level skills, seven of
curriculum. The 2017 scores shown in Table 10.3 which are even likely to become irrelevant as a result
pertain to the proportion of students who can be of automation. The passage of the 11th Regular
considered as at least moving towards “mastery.” Foreign Investment Negative List (RFINL) and
These are estimated at 23.11 percent among Grade Transnational Higher Education Act (RA 1148) is
6, 32.78 among Grade 10, and 13.54 percent among expected to improve competitiveness of education
Grade 12 students. In 2018, DepEd changed the and training institutions by bringing international
methodology to measure “proficiency” instead of quality standards and expertise into the country.
“mastery”. The 2018 NAT7 scores show that only
16 percent of Grade 6, 34 percent of Grade 10, and
14 percent of Grade 12 learners scored as “nearly
proficient.”

Table 10.3 Core Education Outcome Indicators: Targets vs Accomplishments, 2017-2019

BASELINE VALUE TARGETS ACCOMPLISHMENT

INDICATOR
(YEAR) 2017 2018 2019 2017 2018 2019

Sector Outcome: Lifelong learning opportunities for all ensured

Mean years of schooling 8.9

N/A N/A N/A 9.3 10.0 N/A
increased (2014)

90.3
Functional literacy rate increased TBD TBD TBD N/A N/A N/A
(2013)

Subsector Outcome: Quality, accessible, relevant, and liberating basic education for all achieved

Net Enrollment Rate increased (%)

74.65 83.13
Kinder 80.46 83.37 86.28 83.70 63
(2015) (76.00)

91.05
Elementary 92.18 92.74 93.31 94.19 94.79 94
(2015)

68.15
Junior High 70.23 71.27 72.32 75.99 81.24 83
(2015)

Senior High TBD TBD TBD TBD 46.12 48.50 48

Completion Rate increased (%)

7
  Data is not shown in the table because it estimates the proportion who are considered at least “nearly proficient” rather than the original measure
of at least moving towards “mastery.”

Chapter 10 Human Capital Development Towards Greater Agility | 165

 BASELINE VALUE TARGETS ACCOMPLISHMENT
INDICATOR
(YEAR) 2017 2018 2019 2017 2018 2019

83.43
Elementary 85.31 86.25 87.18 92.41 97.15 97
(2015)

73.97
Junior High 76.82 77.15 77.48 84.32 88.84
(2015)
77
Senior High TBD TBD TBD TBD N/A N/A

Proportion of students performing at Moving Towards Mastery, Closely Approximating Mastery, or Mastered increased (%)

64.93
Elementary 66.92 68.41 69.91 23.11* 97.15 97
(2015)

14.37
Junior High 15.98 16.78 17.59 32.78*
(2015) N/A due to change in
measurement from
“mastery” to “proficiency”
Senior High TBD TBD TBD TBD 13.54*

Proportion of students at Low Mastery reduced (%)

14.88
Junior High 11.72 11.51 11.31 N/A N/A due to change in
(2015)
measurement from
“mastery” to “proficiency”
Senior High TBD TBD TBD TBD N/A

Quality of higher education and technical education and research for equity and global competitiveness improved

Number of HEIs in reputable 4

5 6 7 8 6 8
international rankings increased (2016)

Certification rate of TVET 91.3

85 85 86 93 92 94.3
graduates increased (%) (2016)

* 2017 data not comparable with 2015 baselines due to change in methodology. There was a shift in the design of the 2017
National Achievement Test because the questions were framed in line with the K to 12 program’s focus on 21st century skills.

Given the huge investments in education, the of collaboration with industry partners contributed
challenge is to improve the quality of education to the mismatch between skills taught in schools
while also anticipating the demands of the Fourth and labor market requirements.
Industrial Revolution (FIRe). Availability of teachers As flexible learning will need be adopted to
with specialized skills (particularly at Senior High continue delivery of education services during the
School), mismatch in teaching assignments with COVID-19 pandemic, issues of expensive, slow, and
areas of specialization, and delayed release of unreliable internet connection, and added expenses
education inputs affect achievement of education for devices needed to access online learning
outcomes at the basic education level. In higher resources are major challenges. This shift will also
education, inadequate support and/or incentives require adjustment measures to reskill teachers on
to pursue graduate studies, undertake research and online teaching and re-orient parents and guardians
publish, and limited domestic and international towards homeschooling, distance education, and
collaboration to facilitate knowledge transfer may other modes of flexible learning.
have contributed to the low performance of the
higher educational institutions (HEIs). Further, lack

166 | Updated Philippine Development Plan 2017-2022

Labor Market Policies terms of achieving the annual targets in reducing
the share of youths-at-risk.
Better and increased employment opportunities in
the past three years led to the continuous decline Meanwhile, fostering women’s economic
in unemployment rate and improvement in the participation warrants improvement as female labor
overall quality of employment (see Chapter 1). force participation rate (LFPR) remains modest
After an initial uptick of 5.7 percent in 2017, the relative to the annual plan targets. Among the top
unemployment rate fell to 5.3 percent, meeting the cited reasons for deferring work among women is
upper end of the target for 2018. It declined further the assumption of household responsibilities and
to an average 5.1 percent in 2019, in line with duties, including childcare. Nonetheless, laws have
the full-year target of 4.3 to 5.3 percent for 2019. been recently enacted to further create an inclusive
Youth inactivity, likewise, showed improvement as labor market for Filipinos such as the 105-Day
the proportion of youth not in education nor in Expanded Maternity Leave Act; First Time Job
employment (NEE) consistently declined beginning Seekers Act; Telecommuting Act; and the Social
2017, thus putting the government on track in Security System (SSS) Act of 2018.

Table 10.4 Core Labor Outcome Indicators: Targets vs Accomplishments

BASELINE VALUE PLAN TARGETS ACCOMPLISHMENT

INDICATOR
(YEAR) 2017 2018 2019 2017 2018 2019

Sector Outcome: Income-earning ability increased

Percentage of youth not in 23.0

employment or education (NEE) (2015) 20.5-22.5 19.5-21.5 18.5-20.5 21.7 19.8 18.7
decreased

Subsector Outcome: Employability improved

Duration of school-to-work
2*
transition of college graduates ** ** ** ** ** **
(2008)
reduced (years)

Duration of school-to-work
4*
transition of high school ** ** ** ** ** **
(2008)
graduates reduced (years)

Percentage of discouraged 12.5

12.5 12.0 11.5 11.6 11.5 12.6
workers reduced (%) (2014)

Labor force participation of 50.1

49.3 49.7 50.1 46.2 46.6 47.6
women increased (%) (2015)

* Based on an Asian Development Bank Survey on Filipino Youth Labor Market Experience in 2008.
* *The duration of school-to-work (STW) transition will be measured through rider questions in the LFS in 2021. Prior to this,
there has been no official means of measuring STW transition.

Chapter 10 Human Capital Development Towards Greater Agility | 167

The onslaught of the COVID-19 pandemic resulted Prior to the pandemic, the landscape of work
in a surge, perhaps temporary, in displaced workers had been changing rapidly with the rise of FIRe.
(i.e., local workers and overseas Filipino workers) COVID-19, however, has brought unprecedented
as global and domestic economic activities slowed challenges, causing firms to swiftly migrate to new
down. The enactment of the Telecommuting Act working arrangements to safeguard workers. With
and SSS Act proved to be very opportune as these the intensified adoption of remote and flexible work
reforms laid out the necessary legal framework to mechanisms, technology plays a critical role in
support remedial measures to the disruption caused redesigning and transforming the way individuals
by the pandemic, including the implementation work. The challenge is to re-tool and upskill the
of various flexible work arrangements (FWAs) current workforce and develop the future workforce
both in the government and private sectors (e.g., so that they will be able to adapt and thrive amidst
telecommuting, reduction of workhours/workdays, the changes. Consequently, there is a need to
and rotation of employees) and the provision of ensure that new and flexible ways of working will
unemployment benefits. In addition, the immediate not reduce the well-being of workers or expose
digitalization of the application system of the SSS them to forms of occupational hazards and health
unemployment benefit in late June 2020 resulted risks. Possible risks include long working hours,
in the increased uptake of the program, catering performing work outside regular business hours,
to an additional 151,617 applicants from July to musculoskeletal disorders due to non-ergonomic
September8 compared to the 27,103 recorded facilities (i.e., inadequate computer workstations);
applicants between March to June 2020. and for those who have to physically report to work,
there is the threat of getting infected.

  SSS data as of September 14, 2020.

8

168 | Updated Philippine Development Plan 2017-2022

Strategic Framework
Figure 10.1 Strategic Framework to Transform Human Capital Development towards Greater Agility

Chapter 10 Human Capital Development Towards Greater Agility | 169

Targets and Strategies
Improving nutrition and health cases are higher than the baseline. According to the
Department of Health (DOH), these are expected
outcomes for all due to the intensified case findings and the use of
better methods for detection. Meanwhile, modern
Nutrition and health outcomes for all will be contraceptive prevalence rate was disaggregated
improved as the government (a) guarantees to to reflect the contraceptive use of all women
provide care services at all life stages; (b) ensures of reproductive age and those women who are
a responsive and resilient health system; and (c) currently married or in union. Moreover, the
sustains equitable financing of nutrition and health proportion of fully-immunized children was added
services. The targets are given in Table 10.5, followed as a new core indicator. As part of improving the
by a more detailed discussion of the strategies to epidemiological capacity of the country resulting
achieve these targets. from the COVID-19 pandemic, the percentage
of regions with at least one Biosafety Laboratory
Baseline and targets for mortality rate attributed Level 2 with reverse transcription polymerase chain
to cardiovascular disease, cancer, diabetes, reaction (RT-PCR) was included in the list of core
chronic respiratory diseases, and TB incidence indicators.
were recomputed. Indicated targets relating to TB
incidence and number of newly-diagnosed HIV

Table 10.5 Updated Plan Targets to Improve Health and Nutrition Outcomes for All

BASELINE VALUE TARGETS

INDICATOR
(YEAR) 2020* 2021 2022 END OF PLAN

Sector Outcome: Nutrition and health outcomes for all improved

Life expectancy at birth increased (years)

69.63
a. Male ** ** 71.3 71.3
(2015-2020)

75.91
b. Female ** ** 77.5 77.5
(2015-2020)

Subsector Outcome: Care at all life stages guaranteed

Maternal mortality ratio decreased 95

** ** 108 108
(per 100,000 live births) (2016)

13
Neonatal mortality rate decreased (per 1,000 live births) ** ** 10 10
(2013)

23
Infant mortality rate decreased (per 1,000 live births) ** ** 15 15
(2013)

Under-five mortality rate decreased (per 1,000 live 31

** ** 22 22
births) (2013)

170 | Updated Philippine Development Plan 2017-2022

 BASELINE VALUE TARGETS
INDICATOR
(YEAR) 2020* 2021 2022 END OF PLAN

Mortality rate attributed to cardiovascular disease,

cancer, diabetes, and chronic respiratory diseases 462.5
397.7 382.4 367.1 367.1
decreased (number of deaths per 100,000 population (2016)
aged 30-70 years old)

Proportion of households meeting 100% recommended 31

** 29.3 32.2 32.2
energy intake increased (%) (2015)

Prevalence of stunting among children under 5 33.4

** 29.8 28.8 28.8
decreased (%) (2015)

Tuberculosis incidence decreased 434

537 526 510 510
(per 100,000 population) (2016)

9,264
Number of newly diagnosed HIV cases decreased9 ** 17,900 18,900 18,900
(2016)

Subsector Outcome: Responsive and resilient health system ensured

Proportion of women who are using modern contraceptive methods increased (%)

- Among women of reproductive age (15-49 years old) 37.6

** 62.0 65.0 65.0
who are currently married or in union (2013)

23.5
- Among women of reproductive age (15-49 years old) 28.0 29.0 30.0 30.0
(2013)

68.5
Proportion of fully immunized children increased (%) 95.0 95.0 95.0 95.0
(2013)

Percentage of regions with at least one Biosafety 70.6

100 100 100 100
Laboratory Level 2 (BSL2) (with RT-PCR) (June 2020)

Subsector Outcome: Responsive and resilient health system ensured

Out-of-pocket health spending as percentage of total 45.0

** ** TBD TBD
health expenditure10 decreased (2016)

National Health Insurance Program availment rate 80.52

** ** 100 100
increased (2017)

Percentage of population covered by social health 91

100 100 100 100
insurance (2016)

* 2020 original targets set/approved in 2016/prior to the pandemic retained

**Note that the Responsible Agency (e.g. DOH, PhilHealth) did not provide annual targets for these indicators as data are not
available for these years (or only end-of-plan target was provided by the concerned agencies).

9
  Due to low condom use, those who have not started treatment could still inadvertently pass the infection to others, thus, the number of HIV
cases diagnosed per year is expected to grow.
10
  The Philippine National Health Accounts (PNHA) was revised based on the National Accounts, with 2018 as base year. With this, baseline data
of this indicator was changed accordingly. The 2019 PNHA was released in October 2020.

Chapter 10 Human Capital Development Towards Greater Agility | 171

Guaranteeing care at all life stages such as dietary supplementation among pregnant
women, 6-23 months old children, and children in
Provide quality nutrition and health care child development centers and public elementary
interventions at all life stages. The Philippine Plan schools. This will be scaled up through expanded
of Action for Nutrition (PPAN) will continue to partnerships with agrarian reform beneficiaries,
prioritize the selected 32 provinces (as determined organizations, cooperatives, small and medium-
by the Human Development and Poverty Reduction sized enterprises, among others (see Chapter 11).
Cluster) with the highest rates of poverty in its
interventions and to pay greater attention to stunting Sexual and reproductive health services will
and teenage pregnancy. LGUs, in coordination with be intensified to address adolescent or early
the DOH and National Nutrition Council (NNC), pregnancy. DepEd will ensure that there will be
will ensure that appropriate nutrition and health- comprehensive sexuality education in schools,
related interventions and services will be given for to include adolescent-friendly health service
the first 1,000 days of life (covers pregnancy and packages. Relatedly, the Commission on Population
the first two years of life) as the so-called window and Development (POPCOM) and DOH will
of opportunity to influence the mental, productive, spearhead and intensify demand- and supply-
and health capacity and break the intergenerational side interventions for improving reproductive
cycle of malnutrition. health services, including addressing unmet need
for modern family planning (FP). These include
Addressing malnutrition in all its forms across scaling up community and facility-based demand
age groups calls for a whole-of-government generation interventions, and ensuring availability
approach in the provision of nutrition programs of FP commodities at service delivery points by
involving not only LGUs but also NGAs such as instituting reforms and enhancements in the FP
the DOH, NNC, DepEd, Department of Social logistics system. FP competency-based training
Welfare and Development (DSWD), Department for health providers will be continuously provided
of Agriculture (DA), and the Department of (see Chapter 13). Uninterrupted provision of FP
Science and Technology – Food and Nutrition and reproductive health services and commodities,
Research Institute (DOST-FNRI). Implementation especially in areas under enhanced and general
of nutrition-specific interventions at the local level community quarantine, will be pursued.
such as Nutrition in Emergencies, Overweight
and Obesity Management Prevention Program, The triple burden of disease—communicable,
Supplementary and School-Based Feeding non-communicable, and urbanization- and
Program, Food Fortification, National Dietary industrialization-related diseases—will be
Supplementation Program will be strengthened continuously addressed, as this remains a serious
through intensified coordination and collaboration public health concern. The DOH will continue to
of LGUs with implementing agencies given new intensify COVID-19, TB, and HIV case-finding
normal conditions. These will be complemented activities. There will be continuous contact tracing,
by nutrition-sensitive projects, e.g., Gulayan sa timely testing, isolation, and treatment of persons
Paaralan, Sustainable Livelihood, Adolescent affected by COVID-19. Adequate TB services will
Health and Nutrition Development, Farm-to- be provided for TB-infected patients, especially for
Market Roads and Child Nutrition, among others. those drug-resistant TB cases and people living with
The implementation of the Malnutrition Reduction HIV (PLHIV). Anti-Retroviral Therapy for PLHIV
Program of the DOST-FNRI, which provides will continuously be provided. Integrated services
age-appropriate complementary foods for babies for HIV care will be expanded by establishing social
and other vulnerable groups, will be continued. hygiene clinics, sundown clinics, and HIV care
Further, nutritious complementary foods, snack facilities. Moreover, TB and HIV education and
foods, and meals will continue to be produced promotion programs will be enhanced to increase
and consumed. Fortified staples will be produced public awareness and reduce stigma.
and included in all social safety net programs,

172 | Updated Philippine Development Plan 2017-2022

DOH will also develop or strengthen programs detoxification will be expanded. More Balay Silangan
to address emerging and re-emerging infectious facilities initiated by Philippine Drug Enforcement
diseases such as dengue. Moreover, government will Agency (PDEA)11 will also be established.
aggressively implement the National Immunization
Program, including measures to encourage As indicated in the Mental Health Act (RA 11036),
demand and secure the supply of vaccines and national government, through DOH, will fund
other implements. Relatedly, the government will the establishment and assist in the operation of
also guarantee effective delivery of the COVID-19 community-based mental health care facilities.
vaccine once available through the development LGUs and academic institutions will create and
and implementation of a vaccine procurement implement mental health programs, which will be
and distribution plan, which includes crafting in accordance with the general guidelines set by
of appropriate vaccine allocation framework, the Philippine Council for Mental Health. These
readying logistics channels and cold chain facilities, services include prevention, promotion, treatment,
ensuring communication strategies, and setting-up and rehabilitation, including psychosocial support,
monitoring mechanisms. especially during the time of pandemic.

On addressing NCDs, the implementation of To prevent road traffic injuries, stricter enforcement
policies and programs will be intensified to reduce of laws and standards to mitigate risks factors (i.e.,
the prevalence of behavioral risk factors such vehicle standards, speeding, drunk driving, wearing
as tobacco use, harmful use of alcohol, physical of seatbelts or helmets), safer infrastructure, and
inactivity, and unhealthy diet. These include enhanced post-crash care will be continuously
sustained implementation of smoking bans in promoted to avoid these accidents.
public areas such as schools, workplaces, sidewalks,
and public vehicles; anti-smoking campaigns; Elderly health will also be given priority through
smoking cessation program; and increased taxes specific interventions, including palliative and
on tobacco products, in line with the World hospice care.
Health Organization Framework Convention on
Tobacco Control and existing tobacco policies. Promote a healthy lifestyle. A healthy lifestyle
The Department of Finance (DOF) will continue is key to good health. The strategies to promote
to impose excise tax on sweetened beverages along a healthy lifestyle will first improve nutrition
with taxes for alcohol products and e-cigarettes, and and health literacy, and then, the health-seeking
strategies to reduce salt consumption. The whole of behavior of Filipinos.
government will implement and encourage wellness
and fitness programs as well as activities to promote Various stakeholders such as LGUs, DepEd,
work-life balance to avoid NCDs, stress, and other DSWD, among others, will be tapped to ensure
mental health effects. Policies to promote healthy that nutrition and health promotion is integrated in
lifestyle and diet will be pursued and implemented their programs. For instance, LGUs will be enjoined
both in the public (i.e., government offices, public to intensify health and nutrition campaigns. DepEd
schools) and private sectors. will formulate modules on health literacy and health
rights to be integrated in the school curricula and
Meanwhile, PhilHealth will offer packages activities. More health modules can be incorporated
for substance and drug abuse management, in the Family Development Sessions of the Pantawid
rehabilitation, and treatment services. Existing Pamilyang Pilipino Program of DSWD. Government
PhilHealth benefit package such as medical instrumentalities will be mobilized for aggressive

11
  Balay Silangan is a national drug reformation program initiated by PDEA. This is reformative and rehabilitative in nature intended for non-
drug users who voluntary surrendered or availed of the Plea Bargaining Program. It provides general interventions like continuing education and
health awareness, and psychological/spiritual/physical activities such as counseling, moral recovery, values formation, and personal and life skills.
Reformers are also taught with livelihood and skills training programs.

Chapter 10 Human Capital Development Towards Greater Agility | 173

public health education campaigns, including In areas where physical access to health professionals
effective risk communication through various are limited or restricted, the country’s telehealth
media (i.e., television, radio, and social media) to system will be strengthened and expanded by the
encourage social distancing, better hygiene, self- DOH in coordination with other agencies including
isolation, and health-seeking behavior at the first sign DICT and DOST. Telemedicine, including primary
of infectious disease symptoms (e.g., COVID-19). care consultations, will be established, so that
With the new normal, the minimum public health during emergencies (e.g., COVID-19 pandemic),
standards (i.e., for COVID-19 mitigation) through the number of patients going to hospitals and
non-pharmaceutical interventions such as physical health facilities will be reduced. However, systems,
distancing, ensuring proper ventilation, regular protocols, and quality control measures need to be
and thorough disinfection, provision of alcohol/ in place so that this can be effective and not harm
sanitizers/soap, temperature check, use of personal patients. Health technology assessment (HTA)
protective equipment (PPE), among others, will be process12 will also be institutionalized.
strictly implemented.  
During emergencies, priority will be given to
To improve health-seeking behavior, PhilHealth ensuring the supply of essential health and nutrition
will work with private service providers to offer products and commodities. DOH will institute
preventive services, diagnostics, laboratory, an emergency supply management and logistics
medicines, dental and other medical services, as system, with an adequate national stockpile of
well as packages for regular annual check-up for all medicines, medical supplies, PPEs, ventilators, and
employees - public and private. related resources including FP commodities, for use
during a public health emergency. The DBM and
Government Procurement Policy Board (GPPB)
Ensuring responsive and resilient health
will work on policies and procedures to expedite
system
procurement of these necessary equipment and
health supplies.
Ensure access to essential quality and affordable
health and nutrition products and services at
Likewise, to ensure that proper nutrition is
appropriate levels of care. The passage of UHC
continuously provided during emergencies,
Act will ensure that every Filipino has immediate
especially among children, pregnant and
eligibility and access to preventive, promotive,
breastfeeding women, and senior citizens, the
curative, rehabilitative, and palliative care for
Nutrition Cluster will issue advisories to guide
medical, dental, emergency, and mental health
LGUs and relevant partners on appropriate
services. The law will address the issue on non-
nutrition response. This should be consistent with
functioning and fragmented service delivery
the National Policy on Nutrition Management in
networks and weak referral system in the country
Emergencies and Disasters but will be modified
(see Box Article 10.1). Moreover, the DOH will
depending on contextual factors. The NNC and
require all hospitals to establish a public health unit
DOST-FNRI will also continue advocating for
that will provide navigation support to the patients
recipes that would help transform relief goods (i.e.,
within the health facility; support the national
canned goods, instant noodles) into more nutritious
health public programs’ implementation; and
meals.
institutionalize coordination mechanism with the
primary care provider networks.

12
  Health technology assessment refers to the systematic evaluation of properties, effects, or impact of health-related technologies, devices,
medicines, vaccines, procedures, and all other health-related systems developed to solve a health problem and improve quality of lives and health
outcomes (UHC Act IRR Section 4.18.).

174 | Updated Philippine Development Plan 2017-2022

Upgrade and equip health facilities. To address improve the recruitment and deployment process.
the poor conditions of public health facilities in Pools of medical and allied health professionals will
the country, more public health facilities will be be mobilized, especially during health emergencies,
constructed and upgraded, especially primary per level of care nationwide. In addition, a network
health care facilities (see Chapter 19). Hospitals of community health volunteers who will assist
will be equipped with multi-specialty training in providing health surveillance and health
capabilities, reference laboratories, and advanced information dissemination services during health
medical equipment. There will also be an increased emergencies will be established. These will ensure
number of fully-equipped isolation rooms and that the quality and supply of HRH will meet the
critical care beds in hospitals. Moreover, quarantine needs of the population, especially of vulnerable
facilities in major ports and airports need to be groups (e.g., persons with disabilities) and the needs
improved to enable the Bureau of Quarantine (BOQ) during health emergencies.
to better perform its mandate on ensuring health
surveillance and security. Budget for construction Improve epidemiological and surveillance
and rehabilitation of public health facilities will be capacities of the country. Epidemiological and
effectively utilized through improved procurement surveillance capacities for COVID-19 and other
processes and supply chain management. infectious diseases will be improved at the national,
regional, provincial, and municipal levels, focusing
Improve the status and supply of Human on areas at or near major points of entry and strategic
Resources for Health (HRH). The DOH will LGUs in a region. Specifically, an operational Level
ensure that there will be equitable distribution 2 Biosafety Laboratory must be present in every
of HRH, including allied health professionals region, stocked with adequate number of testing
(e.g., dietitians, nutritionists, therapists, medical kits. Technology such as mobile applications can
technologists), and continuous improvement be utilized to facilitate contact tracing and real-
of their working conditions by: (a) continuing time surveillance of infectious diseases particularly
the provision of pre-service full scholarship COVID-19. Moreover, local or regional Centers for
program (with return service contract) to students Disease Control (CDC) will be established under
in medical-related fields (including virology, the supervision of a national CDC or the Research
microbiology, among others) offered by both Institute for Tropical Medicine (RITM). The
national and local governments; (b) continuing CDC will be a dedicated agency that will protect
augmentation, redistribution, and retention of public health and safety through the control and
health workers in challenged priority provinces, far- prevention of diseases.
flung municipalities, and geographically isolated
and disadvantaged areas (GIDA) through the On the other hand, the DOH and LGUs should
DOH HRH Deployment Program; (c) monitoring also ensure strict implementation of the Mandatory
and revisiting the implementation of Magna Carta Reporting of Notifiable Diseases and Health Events
of Public Health Workers by LGUs; (d) providing of Public Health Concern Act (RA 11332), especially
appropriate/competitive salaries, benefits, and the provisions on establishing and maintaining
incentives to public and private health workers, functional disease surveillance and response
among others; and (e) progressively increasing the systems. Accordingly, the DOH will spearhead the
number of permanent positions for health workers formulation of a national infection prevention and
(e.g., provincial/city/municipal nutrition action control guidelines/strategies, including quarantine
officers, barangay nutrition scholars, barangay and disinfection protocols that will guide national
health workers) to achieve the appropriate health and local implementers, both in the public and
worker-to-population ratio. private sectors (e.g., hospitals, health facilities). The
strategies/plan and guidelines/manual will take into
Accordingly, as provided for in the UHC Act, a account the country’s experience and global best
National Health Human Resource Master Plan will practices in responding to the COVID-19 pandemic
be formulated and implemented. The DOH will also and other infectious diseases.

Chapter 10 Human Capital Development Towards Greater Agility | 175

Sustaining equitable health financing nutrition packages, as well as benefit coverage for
emerging and reemerging diseases, as recommended
Secure sustainable investment on nutrition by the HTA process. A No Co-payment Policy will
and health and ensure efficient and equitable also be implemented for those who opt to avail basic
use of nutrition and health resources. To secure or ward accommodation and services. Moreover,
investments and ensure equitable use of health PhilHealth will enhance provider payment
and nutrition resources, the following strategies mechanisms to ensure cost-effective quality health
will be pursued: (a) provide additional resources care services. These strategies will help reduce
to sustain the implementation of the UHC Act; households’ out-of-pocket payment for health
(b) implement the PPAN’s LGU mobilization (see Chapter 11). Furthermore, the processing and
strategy to focus on promoting strategic nutrition reimbursement of hospital claims will be monitored
leadership and governance, emphasizing the and fast-tracked.
value for money investment in the first 1000
days of life; (c) promote complementation of
Cross-cutting strategies
health financing among national government,
local government, development partners, and
Institute a fully-integrated and interoperable
other stakeholders (e.g., private insurance, health
health information system and database. The
maintenance organizations); (d) progressively
following measures will be implemented to improve
increase the PhilHealth premium contribution
the availability, timeliness, and quality of data
with corresponding increase in benefits and
and to make the health information system and
improvement in premium payment protocols; (e)
databases interoperable: (a) conduct training and
focus on financial resources for nutrition and health
capacity building for local administrative health
with high impact interventions; and (f) ensure
and nutrition data collection units; (b) improve
funding for nutrition and health sector recovery
electronic medical records in all health facilities
activities and programs, especially at the local/
that will enable patient records to be accessible
community level. Moreover, the Implementing
throughout the health system and provide real-time
Rules and Regulations (IRR) of the National Disaster
data with due regard for data privacy; (c) develop a
Risk Reduction and Management Council Act will
unified health information system where all health
be revisited to ensure higher contingency budget
data, including data from the private health care
for the management of health-related emergencies.
providers, will be consolidated to have seamless
navigation and referral mechanisms between health
Sin tax or excise tax levied on goods deemed
care providers; and (d) utilize artificial intelligence
harmful to society and individuals will be
and big data analytics to understand the spread of
implemented continuously to curb the practice or,
diseases (e.g., COVID-19) to improve treatment
at least, augment funding for health interventions
methods and streamline medical care, to determine
under the UHC Act. In this regard, increased tax on
the effectiveness of government response, and to
alcohol products, heated tobacco products (HTP),
allow real-time collection, consolidation, analysis,
and Electronic Nicotine Delivery Systems, which
and reporting of health data.
include electronic cigarettes or vapor products,
will be pursued, along with continued imposition
Strengthen health research and development,
of excise tax on sweetened beverages and tobacco
and evidence-based decision-making. Capacity
products.
to conduct evidence-based policymaking, decision-
making, program planning, and implementation in
Expand health insurance coverage and improve
the health and nutrition sector will be strengthened.
nutrition and health packages. With the UHC
Concerned agencies, including health and nutrition
Act, all Filipinos are automatically enrolled in the
research institutes (e.g., DOH, RITM, NNC, DOST-
National Health Insurance Program. The existing
FNRI, DOST-Philippine Council for Health and
benefit packages will continue to be implemented
Research Development, among others) will enhance
and can be expanded to include dental, mental, and
their internal capacity to produce high quality health

176 | Updated Philippine Development Plan 2017-2022

and nutrition studies and researches. There will be health components in all major flagship programs
increased support for local healthcare scientists and of the government.
higher investments in health researches especially
on vaccine and drug discovery and development Ensure transparency, accountability, and
(e.g., COVID-19 vaccine) and on zoonotic diseases regulatory measures in the nutrition and health
and risk factors. A Health Impact Assessment (HIA) sector. This will be done by: (a) developing
will likewise be conducted following the UHC Act. innovative regulatory and monitoring mechanisms
to promote adequately fortified staples and food
Elicit multi-sector, multi-stakeholder support for products, and equitable distribution of quality
nutrition and health. Civil society organizations and affordable health goods and services; (b)
(CSOs), including volunteers will be mobilized to establishing a performance monitoring unit
participate in budget development, service delivery, to track the progress of reforms and medical
and monitoring and evaluation through their audits and to oversee third-party monitoring;
involvement in local development councils and other (c) adopting responsive organizational structure,
special bodies. In addition, development partners staffing patterns and skill-mix at all levels of the
can be tapped to provide official development health system; and (d) monitoring and evaluating
assistance aligned with the nutrition and health health and nutrition programs such as through
agenda. Improved health and nutrition outcomes the Monitoring and Evaluation of Local Level Plan
can be achieved with the help and involvement of Implementation being conducted by NNC member
the private sector in the provision of health care and agencies to ensure compliance and improvement of
nutrition services. For nutrition in particular, the nutrition status at the local level. The DILG will also
NNC will strengthen the existing country, regional, continue to offer incentives and provide guidelines
and global multisectoral partnerships with CSOs, to ensure transparency and accountability among
academe, business, and development partners LGUs in delivering nutrition and health care
through the Scaling Up Nutrition Movement services, especially during health emergencies (e.g.,
networks with the “engage-inspire-invest” slogan. pandemics).
There will also be integration of nutrition and

Box Article 10.1 The Universal Health Care Act

The Universal Health Care (UHC) Act (RA 11223) was enacted into law on February 20, 2019. Its implementing rules and regulations were
approved on October 10, 2019. The UHC Act automatically includes all Filipinos into the National Health Insurance Program and grants immediate
eligibility and access to preventive, promotive, curative, rehabilitative, and palliative care, with primary care services as priority. All members are
guaranteed zero co-payments for basic/ward accommodations in government hospitals, and fixed, co-payment for non-basic admissions in
government and accredited private hospitals.

Importantly, the UHC Act is not only limited to providing health financing services (i.e., PhilHealth insurance) but also covers improving health
service delivery; local health system; health regulation; and health governance and accountability. For instance, under the UHC, all local health
systems will be integrated into the province-wide health system to be composed of municipal and component city health systems; and citywide
health systems to refer to highly-urbanized city-, and independent component city-wide health systems. The local health system refers to all
health offices, facilities and services, human resources, and other operations relating to health under the management of the LGUs. The said
integration will be facilitated by DOH and DILG. In addition, a “Special Health Fund” will be created to pool and manage health resources, including
income from PhilHealth and province-wide and city-wide health systems.

Also under the UHC Act, a National Health Human Resource Master Plan will be implemented to provide appropriate health workforce based on
population needs. The DOH will lead and institutionalize a multi-stakeholder HRH Network, composed of both public and private organizations and
agencies, to formulate and oversee the sustainable implementation, monitoring, periodic evaluation, and reformulation of the Master Plan for the
management and development of HRH. Moreover, a National Health Workforce Support System will be established to assist LGUs in human health
resource needs. Deployment of health professionals and health workers in GIDAs will be prioritized. Existing and new allied and health-related
degree and training programs will be expanded and all allied and health-related government-funded scholars must enter into a return service
agreement with both the training institution/facility and DOH for at least three years with compensation.

Source: Department of Health. Universal Health Care. https://www.doh.gov.ph/UHC

Chapter 10 Human Capital Development Towards Greater Agility | 177

Strengthen leadership, management capacities, Ensuring flexible lifelong
coordination, and support mechanisms. The
national government will provide technical learning opportunities for all
assistance to LGUs to improve the delivery of
health and nutrition services at the local level. For Table 10.6 provides the updated plan targets in
instance, the Barangay Health Emergency Response ensuring lifelong learning opportunities for all.
Teams (BHERT) will be trained on prevention and Targets on access to basic education (net enrollment
mitigation, preparedness, and response measures rate, completion rate) were adjusted considering the
during public health emergencies at the local/ COVID-19 pandemic. Targets for basic education
community level. LGUs may also initiate their own quality were also revised to take into account the
local programs and projects that will supplement shift from measuring mastery towards measuring
the programs of the national government to ensure proficiency, with the new indicator being the
nutrition and health for all. This will further proportion of learners achieving at least “nearly
strengthen the coordination and collaboration proficient” in the National Achievement Test,
among national and local government agencies interpreted as learners with a mean percentage
in implementing nutrition and health programs score in the range of 50 to 74. The target on
in the country. By 2022, the implementation of functional literacy rate is yet to be determined, after
the Mandanas ruling would further strengthen consideration of the effect of the pandemic and the
the capacity of the LGUs in delivering health and quarantine restrictions.
nutrition services, especially since some of the
functions of the national government will be shifted
to the LGUs.

Table 10.6 Updated Plan Targets to Ensure Lifelong Learning Opportunities for All

BASELINE VALUE TARGETS

INDICATOR
(YEAR) 2020* 2021 2022 END OF PLAN

Sector Outcome: Ensuring lifelong learning opportunities for all

Life expectancy at birth increased (years)

10.0
Mean Years of Schooling increased N/A N/A 11.3 11.3
(2018)

90.3
Functional Literacy Rate increased (%) N/A N/A TBD TBD
(2013)

Subsector Outcome: Quality, accessible, relevant, and liberating basic education for all achieved

Proportion of school-aged population participating in basic education (Net Enrollment Rate) increased (%)

63
Kinder 89.19 92 95 95
(2019)

94
Elementary 93.87 96 97 97
(2019)

83
Junior High 73.36 89 92 92
(2019)

48
Senior High 64 68 80 80
(2019)

178 | Updated Philippine Development Plan 2017-2022

 BASELINE VALUE TARGETS
INDICATOR
(YEAR) 2020* 2021 2022 END OF PLAN

Proportion of learners completing levels of education (Completion Rate) increased (%)

97
Kinder to G6 97 97 98 98
(2019)

77
G7 to G12 82 83 84 84
(2019)

Proportion of learners achieving at least nearly proficient in the National Achievement Test (%) increased

16
Grade 6 26 34 44 44
(2018)

34
Grade 10 43 52 61 61
(2018)

14
Grade 12 13 19 28 28
(2018)

Subsector Outcome: Quality of higher education and technical education and research for equity and global competitiveness improved

Certification rate of technical and vocational education 91.3

86 92 92 92
and training (TVET) graduates increased (%) (2016)

Number of higher education institutions in reputable 4

8 7 8 8
international rankings increased (2016)

* 2020 original targets set/approved in 2016/prior to the pandemic retained

Achieving quality, accessible, relevant, and • Review and update of the K to 12 curriculum
liberating basic education for all in close coordination with relevant institutions
towards a world-class curriculum that prepares
Strengthen the implementation of the Early learners for the future. A Futures Thinking
Childhood Care and Development (ECCD) Unit will be institutionalized within DepEd to
Program. A strengthened ECCD Program will foresee and make the curriculum responsive
provide future cohorts of learners a solid foundation and adaptive to the needs of learners in the
for basic education. Thus, the Early Childhood future.
Care and Development (ECCD) Council will build
a competent ECCD workforce throughout the • Improvement of the learning environment by
country and ensure that child development centers ensuring that schools, classrooms, and other
strictly adhere to the ECCD policies, guidelines, learning facilities promote productive learning
and standards. Increased emphasis on health and experiences. Particular focus will be given to
nutrition will be given to increase the physical Last Mile Schools—schools in GIDAs, which
resistance of learners to sickness and disease and are not prioritized when determining the
mainstream good personal hygiene practices. needed inputs using established formulas and
ratios for education inputs. Improved learning
Aggressively implement reforms under Sulong environments will utilize best practices in
EduKalidad. The DepEd has embarked on the inclusive education such as the Madrasah,
Sulong EduKalidad program to raise the quality Special Education and Indigenous Peoples’
of basic education by implementing aggressive Education Programs, as well as the intensified
reforms in four key areas: implementation of the Comprehensive
Sexuality Education Program to address early
pregnancy.

Chapter 10 Human Capital Development Towards Greater Agility | 179

 • Upskilling and reskilling of teachers through financial, and civic literacy; anticipating educational
a transformed professional development opportunities from innovations; reinforcing
program that will equip teachers with 21st learning sciences, assessments, analytics, and
century knowledge and skills and reinforce their knowledge mobilization; and “smartifying” learning
competencies through the National Educators spaces and resources, among others.
Academy of the Philippines Transformation;
and Participate in International Large-Scale
Assessments (ILSAs). The country’s participation
• Engagement of stakeholders for support and in ILSAs such as the Trends in International
collaboration towards better research, analysis, Mathematics and Science Study, Programme for
and high-level advice for strategic policy, International Student Assessment, and South-East
planning, and programming for delivering Asia Primary Learning Metrics will be prioritized
quality education for all. to measure learning outcomes vis-à-vis other
These reforms will need to consider the rapid change countries and provide information to evaluate the
in the education environment brought about by the country’s progress in improving math, science, and
COVID-19 pandemic. As face-to-face classes will literacy and build evidence for policy development
only be allowed once a vaccine is available, other and decision-making.
learning modalities will be carried out to maintain
physical distancing. Improving quality of higher and technical
education and research for equity and global
Implement the Basic Education Learning competitiveness
Continuity Plan (BE-LCP). In order to mitigate
the impact of the COVID-19 pandemic on learners Set up joint industry and government bodies for
and learning outcomes, the DepEd formulated the technical and vocational education and training
BE-LCP in May 2020 and is fully committed to its (TVET) quality assurance. This will help technical
implementation. Under the new normal, the DepEd vocational institutions (TVIs) to keep their
will improve and expand its flexible learning options regulations and competency standards up-to-date
identified in its LCP (i.e., modular and online blended and responsive, and to streamline processes needed
learning, homeschooling, and television- and radio- to quickly undertake program review, facilities
based instruction) to continuously provide learning evaluation, updating of instruction and learning
opportunities even in the midst of a pandemic. This methodologies and materials, and formulation of
entails developing self-learning modules, enhancing innovative programs. This is in line with the thrust
existing e-learning platforms (DepEd Commons), of the Technical Education and Skills Development
collaborating with telecommunication and Authority (TESDA) to institute separate and
broadcast media companies, and training teachers faster mechanisms to hasten the development of
for the different delivery modes of education and
the preparation of schools under Brigada Eskwela competency standards and training regulations of
and Oplan Balik Eskwela. Guidelines and health rapidly changing jobs.13
standards in schools and workplaces need to be
followed to protect the school community. The BE- Enhance the implementation of Student Financial
LCP will also accelerate the country’s transition to Assistance Programs, especially the Universal
the future of education, which involves exploring Access to Quality Tertiary Education Act (UAQTE).
new technologies for remote learning; reframing Given huge investments in expanding access to
the curriculum to prioritize essential/crosscutting tertiary education during the first three years of
knowledge, skills, and mindsets; embedding multi- the Duterte administration, sustainability of the
literacies in information technology, STEM (science, program will have to be ensured. Particularly for a
technology, engineering, and mathematics), health,

  TESDA. (2018). National Technical and Education Skills Development Plan 2018-2022: Vibrant Quality TVET.
13

180 | Updated Philippine Development Plan 2017-2022

college degree, it will take at least four years to realize Develop a roadmap for academic and technical
the returns from these education investments. programs responsive to the demands of FIRe.
Timely awarding of student financial assistance Continuous updating of the higher education
programs in higher education and TVET will be curriculum will be implemented given the changes
ensured, especially among UAQTE beneficiaries, as in the basic education system and emerging needs of
most students may need the allowances to adjust to the country. Priority programs will be revisited and
online and/or blended learning. new programs (e.g., Data Science, Nanotechnology,
  Machine Learning, Green/Renewable Energy
The Unified Financial Assistance System for Engineering, Virology, Molecular Biology and
Tertiary Education (UniFAST) Board will consider Biotechnology, Urban Agriculture, sustainable
implementing a voucher system and improve the development, food value chain) will be developed
loan system to give students a choice in school to steer students toward fields that will cater to
(whether public or private) and educational tracks emerging disciplines and address the country’s
(whether TVET or higher education) prior to post-pandemic needs. The TVET sector will
the enrollment period. Such would also level the formulate standards and promote TVET programs
playing field among quality private and public (diploma courses) that cultivate higher-order
higher education institutions (HEIs) and TVIs. The thinking skills demanded by the labor market.
long-term student loan program will be designed to Further, training centers and/or community
consider factors such as affordability, viability, and colleges will be established at the local level to
risk management. Further, support interventions address regional human resource development
and adequate monitoring activities will be done to requirements. Government agencies will also put
ensure that quality of education is not sacrificed in in place mechanisms to ensure that regular data on
the course of policy implementation through: (a) the employability of graduates is available to guide
strong monitoring of tuition and other school fees students, educational planners, and industry.
being charged by HEIs and TVIs to the government;
(b) stricter quality assurance in HEIs, especially Intensify distance-learning methods to promote
those enjoying government subsidies; (c) pursuit learning continuity and retooling. In higher
of per student normative cost budgeting; and (d) education, a flexible learning strategy will be
career guidance and financial counseling for student pursued in delivering instruction by ensuring
beneficiaries14. appropriate facility delivery system, faculty
complement, and student support, as provided
Boost Philippine competitiveness in international in CHED COVID-19 Advisory No. 7. The legal
university rankings. The Commission on Higher framework for distance learning is already in place
Education (CHED) will enhance policies to establish through the Open Distance Learning Act of 2014
a promotion system in state universities and colleges (RA 10650). As such, there is a need to extensively
(SUCs) that incentivizes research and innovation; a promote its implementation among HEIs. Similarly,
quality assurance mechanism (e.g., SUC levelling the TVET system will adopt flexible learning
and granting of autonomous/deregulated status) delivery modes (i.e., face-to-face learning, online
will also be institutionalized for both private learning, blended learning, and distance learning)
and public institutions to reward international as provided in OPLAN TESDA Abot Lahat: TVET
competitiveness. Support will be provided to quality towards a New Normal. Although digital modalities
programs deemed centers of excellence and HEIs will be optimized for distance learning, other
ready for international accreditation. options such as TV, radio, printed materials, and/or
mobile training laboratories will be made available
in areas with zero to limited internet access.

  National Economic and Development Authority (2018), Socioeconomic Report.

14

Chapter 10 Human Capital Development Towards Greater Agility | 181

Boost cutting-edge research and innovation and adopting new pedagogical practices such as
initiatives. The government will build a robust artificial intelligence-enabled education, innovative
national ecosystem for knowledge production classrooms, and gamification of learning, among
and innovation, which is critical for the country’s others. The education sector needs to revisit
pursuit of a knowledge-based economy. Incentives pedagogical approaches including assessment
to researchers in government will be provided by strategies and learning materials to maximize the
fully implementing the Magna Carta of Scientists, potential of ICT in delivering flexible learning
Engineers, Researchers, and Other Science and options while also improving learning outcomes.
Technology Personnel in the Government (RA Training activities will be provided to teachers,
11312). The exclusion of SUC faculty from the parents, and guardians to enable them to adjust to
Scientific Career System will also be re-evaluated flexible learning.
to incentivize research productivity among faculty
member. HEIs will be encouraged to tap Balik Promote graduate scholarships and teacher
Scientists and engage in research and development training programs. The promotion of graduate
initiatives supportive of the National Harmonized scholarships and teacher training programs is
Research and Development Agenda and the an important strategy to improve the quality of
country’s science, technology, and innovation education at all levels, especially as the education
priorities, which will be outlined in the National system adapts to modern and digital learning
Innovation Agenda and Strategic Development (see environment. This will complement the DepEd’s
Chapter 14). Productive partnerships between HEIs thrusts of in-service teacher development by
and stakeholders in the community and industry creating a pool of teachers with advanced degrees
will also be intensified to integrate formal research ready to impart cutting-edge knowledge to students
and innovation efforts with informal grassroots in basic education. Initiatives will be intensified
knowledge and innovation. to increase internationally-recognized trainings,
graduate studies and post-doctoral opportunities
for teachers and trainers.
Cross-cutting strategies
Maximize government - academe - industry
Develop future-ready adult learning
collaborations and international partnerships
interventions. The education agencies will promote
to ensure alignment of competencies and labor
adult learning through online and/or flexible
requirements. International partnerships and
learning (e.g., massive open online courses, blended
government-academe-industry-collaborations
training programs) to meet the growing demand
will be tapped, especially in improving quality of
for retooling and upskilling. Learning approaches
instruction. Such linkages will enable the education
will need to be modified to meet the needs of adult
sector to adapt to modern technologies, update
learners, especially workers displaced during the
curricula and develop programs or courses more
pandemic and those in occupations that are at
quickly, strengthen work immersion programs
risk of being automated. Adult learning programs
(i.e., on-the-job trainings, apprenticeships) being
may also be tapped in cultivating important values
implemented, and enhance complementation of
and functions in society, such as health-seeking
curricular offerings among public and private tertiary
behavior, financial literacy, cultural sensitivity,
education institutions. International collaborations,
gender sensitivity, climate change adaptation, and
in particular, will also be useful in bringing global
disaster risk reduction and management, among
standards in educational institutions. Partnerships
others.
with international universities and institutions
will improve the capabilities of teachers, enhance
Modernize learning and teaching materials
pedagogy, and help upgrade normal schools and
and methods. While the Philippines has been
universities, leading to better performance of
investing in curricular reforms and expanding
students with regard to proficiency standards.
ICT access in schools, other countries have already
made substantial improvements in developing

182 | Updated Philippine Development Plan 2017-2022

Formulate guidelines on the internationalization Develop an accessible sporting culture. A sporting
of education. Given recent policy reforms (issuance culture accessible to all Filipinos will be developed as
of the 11th Regular Foreign Investment Negative an instrument to promote human development and
List and passage of the Transnational Higher improve quality of life. This will be accomplished
Education Act [RA 11448]) that enabled the entry through enhancing the people’s awareness of the
of international educational institutions, faculty, role of sports for physical, emotional, and mental
and trainers, policy and regulatory frameworks well-being; improving and expanding the grassroots
will be updated. As such, the higher education sports development program of the Philippine
internationalization framework will be revisited Sports Commission (PSC); and strengthening local
and a TVET internationalization framework will and international linkages in sports. Sports facilities
be formulated. These policy frameworks will will be developed and upgraded to be at par with
subsequently serve as bases of guidelines and global standards. The PSC’s human resources,
regulations to create mechanisms that will attract management and research capacities will be
prospective international experts and partner improved to enhance its ability to lead, manage, and
institutions. assess the country’s sports programs. The Philippine
Sports Institute will be institutionalized to direct
Develop an action plan to operationalize the the development and linkages of the grassroots
Philippine Qualifications Framework (PQF). and high-performance sports programs and the
As the PQF has already been institutionalized, the professional development of sports practitioners.
next step is to come up with a plan or guidelines
to facilitate the efficient implementation of the
qualifications and recognitions system. The
government will ensure that there are corresponding Increasing income-earning
and efficient equivalencies and recognition ability and enhancing
systems through the PQF for TVET graduates and
technical-vocational-livelihood senior high school adaptability
graduates, should they pursue higher education
through ladderized education. This mechanism will Table 10.7 shows the updated indicators and
allow learners to pursue learning opportunities, corresponding revised targets for increasing
upgrade qualifications, and/or smoothly transition income-earning ability and enhancing adaptability
through different learning pathways, whether for of the Filipino workforce. Given the looming
professional or personal goals. global recession due to decreased output, lower
employment demand is anticipated in the near
term. Hence, targets for core labor indicators were
adjusted accordingly.

Chapter 10 Human Capital Development Towards Greater Agility | 183

Table 10.7 Updated Plan Targets to Increase Income-earning Ability and Enhance Adaptability of
Filipinos

BASELINE VALUE TARGETS

INDICATOR
(YEAR) 2020 2021 2022 END OF PLAN

Sector Outcome: Income-earning ability increased

Percentage of youth not in employment or education 23.0

17.5-19.5 18.0-20.0 17.0-19.0 17.0-19.0
decreased (2015)

Subsector Outcome: Employability improved

Duration of school-to-work transition of college 2.015

N/A N/A N/A 0.75-1.0
graduates reduced (years) (2008)

Duration of school-to-work transition of high school 4.0

N/A N/A N/A 0.75-1.0
graduates reduced (years) (2008)

Duration of school-to-work transition of TESDA 3.0

3.5 3.5 3.25 3.2516
graduates reduced (months) (2015)

12.5
Percentage of discouraged workers reduced (%) 11.00 11.5 11.0 11.017
(2014)

7.0
Unemployment rate of college graduates decreased (%) 7.2-7.5 10.0 8.0 8.018
(2016)

66.2
Employment rate of TVET graduates increased (%)19 72.0 68.86 69.39 69.39
(2016)

Percentage of females with advanced degrees employed 79.4

80.0 81.0 82.0 82.0
increased20 (2016)

50.1
Labor force participation of women increased (%) 50.5 48.0-50.0 48.5-50.5 48.5-50.521
(2015)

Subsector Outcome: Productivity improved

Labor productivity in the industry sector increased 2.1r

3.0-4.0 2.5-3.6 4.40-4.65 4.40-4.65
(% growth)22 (2015)

15
  Based on an Asian Development Bank Survey on Filipino Youth Labor Market Experience in 2008. Data on End-of-plan (EOP) targets will be
sourced from the Labor Force Survey. Potential discrepancy between baseline value and EOP targets may arise given changes in the source of data
reported.
16
  Lower employment demand is anticipated in the near term as a result of global and domestic economic slowdown.
17
  Increase of discouraged workers may be expected given looming global recession and decrease in output growth by end of 2020.
18
  Labor market disruption brought by the pandemic is seen to result in falling labor demand, especially among hard-hit industry sectors in the
near term. In addition, postponement of this year’s board examinations due to the pandemic may cause delay in college graduates’ employability
and will affect the employment absorption in the fields requiring professional board passers.
19
  Refers to percentage of TVET graduates for the period that are already employed over the total number of TVET graduates for the same period.
2021-2022 targets were revised based on NTESD Plan.
20
  Percentage of females with advanced degrees is the proportion of female graduates with post-baccalaureate degree (Masters and PhD) to total
working age population of female graduates with post-baccalaureate degree.
21
  The implementation of distant online learning and blended learning modalities may affect women’s labor force participation rate as the need for
unpaid domestic care work increases (e.g., child minding, care needs for older persons) in the near term.
22
  Adjusted based on revised growth estimates and employment outlook in the near term.

184 | Updated Philippine Development Plan 2017-2022

 BASELINE VALUE TARGETS
INDICATOR
(YEAR) 2020 2021 2022 END OF PLAN

Labor productivity in the service sector increased (% 2.7r

4.0-5.0 (1.02-0.13) 5.35-5.61 5.35-5.61
growth)22 (2015)

Subsector Outcome: Labor mobility and income security enhanced

Share of employees in precarious work23 to total 18.9

18.1 18.0 17.9 17.9
employed (%) reduced (2016)

Share of wage and salary workers in precarious work to 30.7

28.5 28.4 28.3 28.3
total wage and salary workers (%) reduced (2016)

Notes: 2020 targets were retained. 2021-2022 targets for some indicators were adjusted given the impact of the pandemic in the
near term.

In light of the current and emerging challenges and training programs. Skills retooling programs
in the labor market, the government will further through flexible and blended training arrangements
strengthen efforts to raise the quality of human will be expanded to build skills critical to current
resources and ensure that the current and future and emerging industry demand. For instance,
workforce will be able to adapt to the changing courses and modules offered under the TESDA
demands of the labor market. Strategies that will Online Program will be expanded to respond to in-
improve the ability of individuals to operate and demand skills in the new normal, with particular
thrive in a digital environment, while at the same focus on ICT skills. Targeted training modules
time ensuring job quality and income security, will will be developed to cater to the needs of youth,
be pursued. Overall, these are expected to improve displaced workers and repatriated OFWs, new
people’s access to employment opportunities and entrants to the labor force, and the vulnerable sector
ensure their employability and productivity, thus (e.g., informal sector workers, workers in hard-hit
translating to increased income-earning ability and industries, casual and gig workers). To facilitate
enhanced adaptability of the Filipino workforce. efficient and wider reach of training and retooling
assistance, provision of subsidies through issuance
Improving employability of training vouchers to individuals, in partnership
with the private sector through institution-based,
Ensuring employability of displaced workers, enterprise-based, community-based, or online
jobseekers, and those in vulnerable sectors calls for modalities is envisioned. Procedures for availing
swift and coordinated whole-of-society approach to TESDA scholarship programs will also be revisited
policy actions. This will be accomplished through to improve accessibility and reduce difficulties in
the following strategies: application requirements. The Mobile Training
Laboratory Program will also be expanded to better
Further advance skills development and retooling serve far-flung areas. Implementation of the Tulong
through continuing education, training, Trabaho Fund will be accelerated to help fund
and digital learning. With the unprecedented such interventions. Meanwhile, the Professional
disruption in the economy, business operations Regulation Commission will need to strengthen the
have been immensely affected, resulting in worker Continuing Professional Development programs
displacement. The government will take an active through online-based platforms.
role in upskilling and reskilling its workforce through Boost and expand employment facilitation
comprehensive and coordinated skills development services. The pandemic has amplified the need for

23  Precarious work refers to workers whose nature of employment is short-term or seasonal or casual or those who worked for different
employers on day-to-day or week-to-week basis.

Chapter 10 Human Capital Development Towards Greater Agility | 185

comprehensive, well-coordinated, and accessible across localities nationwide will be pushed to ensure
employment facilitation services that will better availability of funds and resources. In particular,
connect people to jobs and engage employers it is crucial to have adequate and well-trained
and other stakeholders. To this end, capacities staff as well as up-to-date facilities and to keep an
of Public Employment Service Offices (PESOs) updated and expanded database of jobseekers and
in LGUs will be strengthened. Given the critical available jobs that may be accessed by other PESOs
role of local governments in the management nationwide. Moreover, PESOs will also strengthen
and implementation of training and employment the delivery of economic and financial literacy
programs through the PESOs, creating stronger programs for the vulnerable sectors, through
mechanisms to effectively deliver services, boost intensified partnership with the regional offices of
employment, and generate jobs at the local level is the National Economic and Development Authority
needed (see Box 10.2). and Bangko Sentral ng Pilipinas. More importantly,
firms will be encouraged to hire workers residing
in the communities where they operate to reduce
vulnerability to transport disruptions and
community quarantine restrictions. Such practices
will also reduce the possibility of virus transmission
Efforts to intensify the institutionalization of PESOs through cross-LGU mobility.

Box Article 10.2. Improving the Role of LGUs in Employment Facilitation Services

Local governments play an important role in the management and implementation of skills and employment programs through the PESOs. The
core services being offered by PESOs in LGUs are mainly on employment referral and placement, counseling/career guidance, and conduct of job
fairs and pre-employment seminars. However, the success of PESOs varies highly depending on how a specific LGU implements these services.
To realize PESO’s key objectives, it is crucial that they continually innovate and find ways to deliver their services that are best suited to their local
situation.

Building a good rapport with constituents and having broad and dynamic partnerships with businesses, academe, non-government organizations
(e.g., Chambers of Commerce), and other government agencies or LGUs are critical. PESOs should regularly update their database on the labor
needs of businesses, especially in emerging industries, and supply of labor. To do the latter, skills mapping in the barangay level needs to be done
regularly. PESOs can then organize better-designed and targeted skills development programs.

PESOs may also assist unorganized wage employees in forming cooperatives, link microfinance institutions with those with livelihood activities,
and develop market linkages for micro, small, and medium enterprises. PESOs may also link job seekers with PESOs in other LGUs and/or relevant
agencies for those aspiring to work abroad.

In Marikina City, the PESO partnered with the LGU Center for Excellence and City Women’s Council in coming up with a Labor Market Center,
which works as a one-stop shop for all employment-related concerns including training/skills development and wage employment and livelihood
facilitation. Meanwhile, in Bulacan, LGUs partnered with local colleges for continuing education and skills development of the workforce.

Amidst challenges, labor market information openings. Development of e-recruitment guidelines

systems need to keep pace with the dynamic and and intensified advocacy against online illegal
competitive labor market by enhancing accessibility, recruitment and trafficking will also be pursued.
expanding coverage, and fostering closer
coordination between employers, the academe, and Strengthen and expand internship, apprenticeship,
the government. PhilJobNet – the government’s and dual training programs. A highly-skilled
web-based job search, matching, and referral portal work force is important to build competitiveness.
along with the PESO Employment Information Yet, the COVID-19 crisis poses great risks for the
System (PEIS) will be enhanced through intensified youth and young workers as they bear the brunt
promotion among stakeholders and improved of the economic and social consequences of the
collection of data. These platforms will also be pandemic, which might have far-reaching effect
expanded to highlight online and home-based job

186 | Updated Philippine Development Plan 2017-2022

throughout their working lives.24 Thus, there is a economic opportunities for women through the use
need for current internship, apprenticeship, and of digital technology.
training programs to be enhanced to respond to
the current needs of government (i.e., contact
Improving productivity
tracers, profilers, and encoders) and industry.
These include the (a) Government Internship
Enhance delivery of capacity building for
Program; (b) JobStart Philippines Program; and
productivity-based incentive schemes and
(c) apprenticeship, learnership, and dual training
business continuity plans. Technical assistance on
programs. Moreover, online modules on life skills
enhancing productivity and developing productivity-
training, occupational safety and health including
based incentive schemes, to be spearheaded by the
mental health, productivity, career guidance, and
National Wages and Productivity Commission,
employment coaching will be developed under
will be delivered using various modes (i.e., virtual
these programs. The government will likewise
and electronic modes) appropriate to various
forge stronger government-industry-academe
work arrangements, including telecommuting or
linkages to provide quality workplace-based and/
work from home. The productivity toolbox will be
or remote and tech-based training opportunities
expanded to include the preparation of Business
for the youth by designing academic and training
Continuity Plans.
curricula that are responsive to the skills needed by
the industry and establishing employer-led learning
Ensure safety and health of workers amid
networks. Altogether, these are deemed to improve
intensified adoption of flexible working
employment prospects and reduce school-to-work
arrangements. Due to the pandemic, firms have
transition among the youth.
been forced to adopt various forms of flexible and
alternative working arrangements. However, there
Ensure that flexible work arrangements allow
is a need to ensure that the flexibility of work will
members of the workforce to balance their
not lower the well-being of workers. The current
household and work duties. Companies now resort
rules and guidelines on flexible/alternative work
to flexible and remote work arrangements (e.g.,
arrangements both in the private and public sectors,
flexible schedule, compressed work week, alternative
as well as the observance of occupational safety and
worksite telecommuting) in view of the demands of
health (OSH) will need to be revisited in light of
the new normal. On the one hand, such arrangements
the new normal. This includes ensuring existing
may encourage women who previously opted not to
rules and guidelines are responsive to guaranteeing
work due to family and household duties to now
work-life balance as well as safeguarding health
join the labor force. On the other hand, working
and well-being given remote work arrangements.
mothers are likely to be overwhelmed as they juggle
Moreover, as some industries require the need for
household duties (i.e., domestic work and family
physical reporting (e.g., service-oriented sectors),
care) and work in the same physical space. Given
the provision of PPEs by employers to prevent the
this, there is a need to ensure that such flexibility
spread of COVID-19 and other viruses needs to be
will also guarantee work-life balance, especially
institutionalized. Likewise, promoting awareness
among working mothers, to prevent them from
and expanding coverage of the Employees’
opting out of the labor force. Other strategies to
Compensation Program by including pandemic-
increase labor market participation of women
related risks as a valid criterion to avail of such
include: addressing gender bias and gender role
program will be pushed. Meanwhile, guidelines on
stereotype in basic education curriculum materials
the provision of hazard pay for workers in the public
and promoting entrepreneurship and advance
sector will be reviewed, or formulated where there

  International Labour Organization (ILO). (2020). ILO monitor: COVID-19 and the world of work. Fourth edition. (Source: https://www.ilo.org/
24

wcmsp5/groups/public/---dgreports/---dcomm/documents/briefingnote/wcms_745963.pdf)

Chapter 10 Human Capital Development Towards Greater Agility | 187

is none. Protection of Filipinos working overseas, Enhancing labor mobility and income security
especially the low-skilled workers, can be improved
through strengthening bilateral labor agreements Enhance income support and emergency
with host countries (see Chapter 21). employment. The COVID-19 pandemic has shed
light on the importance of robust social safety
Nurture workplace harmony. In keeping nets to cushion workers from sudden economic
with its firm commitment to ensure conducive shocks. Apart from wage subsidy programs, the
workplaces and improve productivity of workers, unemployment benefits of the SSS will need to be
the government will intensify information expanded to assist temporarily laid-off workers.
dissemination of the recalibrated Labor and Furthermore, the government will seek to design
Employment Education Services (LEES) of the a more comprehensive unemployment support
Department of Labor and Employment (DOLE), program that will provide workers more flexibility
which includes Labor Relations, Human Relations to search for jobs by improving their skills and
and Productivity, Continuing Labor Education capacity as they re-enter the labor market (see
Seminars, and Labor Education for Graduating Chapter 11). Moving forward, financial assistance
Students. This will be undertaken through: (a) programs for displaced formal sector and informal
developing modules on nurturing workplace sector workers will be reviewed and strengthened
harmony in light of the new normal (i.e., guidelines for possible institutionalization.
on alternative/flexible work arrangements, fostering
productivity and OSH in FWAs); (b) using radio At the same time, current efforts towards enhancing
and television broadcast, social media, and online the implementation of minimum wage policies
platforms; and (c) forging stronger partnership (i.e., balanced, consultative, and evidence-based
through memoranda of agreement between DOLE- approach to minimum wage determination,
Regional Offices and educational institutions on the rationalized number of wage rates, exclusions, and
use of the DOLE-LEES e-Learning Portal for the exemptions per region) will be continued to protect
conduct of Labor and Employment Education for vulnerable workers from undue low wages.
Graduating Students.

188 | Updated Philippine Development Plan 2017-2022

Legislative Agenda
The following legislation will be required to support the actions of the executive branch:

Table 10.8 Legislative Agenda to Transform Human Capital Development towards Greater Agility

LEGISLATIVE AGENDA RATIONALE

Sector Outcome: Nutrition and health outcomes for all improved

Subsector Outcome: Care at all life stages guaranteed

This will facilitate the development of a National Program of Action and Investment
Plan for the prevention of teenage pregnancy. The program of action will serve
Policy on the Prevention of Adolescent Pregnancy
as a national framework for inter-agency and inter-sectoral collaboration at all
levels that will address various health, cultural, socioeconomic, and institutional
determinants of teenage pregnancy. The policy may be in the form of either an
Executive Order or a Republic Act.

This will reduce fireworks-related injury, disability, and death; and update law
regulating fireworks. Some of the key features of the proposed legislation are (a)
banning of individual/ residential use of both legal and illegal firecrackers, except if
Nationwide Firecracker Regulation used as part of a community fireworks display; (b) strengthening the enforcement
on the regulation of manufacture, sale, distribution, storage, and use of firecrackers
and pyrotechnic devices; and (c) promoting public health and safety from the use of
firecrackers and pyrotechnic devices.

Subsector Outcome: Responsive and resilient health system ensured

The proposed amendment will upgrade the qualifications standards, incentives,

and benefits and will ensure the security of tenure of BNS. This is essential in the
Amendment of the law (Presidential Decree 1569)
continuing building of capacities and sustained delivery of quality frontline nutrition
on the Barangay Nutrition Scholar (BNS) Program
services to the community. This will ensure that trained and experienced BNS are
carried over by succeeding political administrations.

This will ensure that the tasks of planning, implementing, and monitoring projects/
activities to guarantee adequate food supply, livelihood, health and nutrition caring,
Strengthening the Local Nutrition Program through the and food stability during emergencies among the most vulnerable population are
creation of plantilla Nutrition Action Officer position provided. The full-time NAO will ensure that LGU nutrition policies and programs,
as well as national laws on nutrition, are executed to promote good nutrition of the
people.

This aims to rationalize the distribution of capacity and capability of health facilities.
Key features of the proposed legislation include: (a) adjustment and approval of
DOH Hospital Bed Capacity and Service Capability
the authorized bed capacities and corresponding service capabilities of its retained
Rationalization Act
hospitals; and (b) alignment of all adjustment in bed capacity and service capability
of each DOH hospital with the Philippine Health Facility Development Plan.

Chapter 10 Human Capital Development Towards Greater Agility | 189

LEGISLATIVE AGENDA RATIONALE

This proposed measure aims to make licensing standards responsive to the needs
of the health systems. Specifically, the following will be covered by the proposed
measure: (a) grant quasi-judicial powers to the Bureau of Health Facilities and
Services under DOH; (b) establish a regional office to enforce regulatory policies
Health Facilities and Services Regulation Act
and standards; (c) allow for the income retention of the Bureau to enhance its
capacity to expand and improve the quality of its services; (d) extend the validity of
health facility’s initial license to operate to three years; and (e) implement adjusted
penalties and revocation of license.

This proposed legislation will make the 22-year-old law responsive to the changes in
the industry and in anti-counterfeiting technologies. The measure (a) incorporates
Counterfeit Pharmaceutical Products Prevention Act
as economic sabotage (>1M) the illegal manufacture, importation, distribution, sale
(Amending the Special Law on Counterfeit Drugs or
or offer for sale, or possession of counterfeit pharmaceutical products; (b) includes
RA 8203)
online service/selling/pharmacy services; (c) updates administrative proceedings;
(d) revises penalties; and (e) strengthens the rapid alert system.

The proposed measure aims to: (a) create the Drugs and Medicines Price
Regulation Board that will regulate the pricing of any or all drugs enumerated in
Section 23 of RA 9502; (b) mandate the display of prices fixed and approved by the
Board for drugs and medicines on a clearly printed poster conspicuously placed
Drugs and Medicines Price Regulation Act (Amending the
within the retail outlet; (c) extend the VAT exemption coverage to all essential
Universally Accessible Cheaper and Quality Medicines
ethical medicines listed in the Philippine National Formulary; (d) standardize the
Act of 2008 or RA 9502)
prescription of all physicians (should be in generic terminology without any specific
brand); and (e) designate the Philippine Pharma Procurement, Incorporated as
DOH’s and PhilHealth’s central procurement agency for drugs, medicines, and
common medical supplies.

This intends to strengthen the national and local response and preparedness
during health emergencies (e.g., pandemic, epidemic). The proposed measure may
Pandemic Preparedness Act/Health Emergency Act institutionalize national and local/regional CDC. It may also cover establishing
medical reserve corps for disasters and health emergencies; and providing social
assistance (i.e., social amelioration) during pandemics.

This aims to make the Magna Carta of Public Health Workers more responsive to the
Amendment of the Magna Carta of Public Health needs and rights of health workers. The proposed measure will provide appropriate
Workers Act benefits to public health workers across LGUs, regardless of LGU income
classification, to promote equity in benefits/incentives received, among others.

Philippine eHealth/Telehealth System and Services Act This measure will establish a national eHealth System that will direct, institutionalize,
and regulate the practice of eHealth in the country.

Sector Outcome: Flexible lifelong learning opportunities for all ensured

Subsector Outcome: Quality, accessible, relevant, and liberating basic education for all achieved

This legislation aims to ensure timely provision and adequacy of quality textbooks in
Legislation on textbook development, printing, basic education without compromising the standards set by the DepEd. This would
and distribution reduce the time it takes for textbooks to be developed, printed, and distributed to
schools, with the additional benefit of supporting the local publishing industry.

190 | Updated Philippine Development Plan 2017-2022

LEGISLATIVE AGENDA RATIONALE

This legislation proposed aims to establish indigenous people (IP)-centric

educational systems and institutions. Through this proposed law, provision and
delivery of education will be in the IP’s own languages, in a culturally appropriate
Indigenous Peoples’ Education Systems Act
manner. The development and implementation of the IP education programs will
also consider the special needs, unique histories, indigenous knowledge systems
and practices, spirituality, and value systems of the community.

The proposed amendment on the GASTPE law aims to further expand the coverage
Expansion of government assistance to K to 6 learners of the GASTPE to the elementary level and senior high school teachers in private
in private schools through the Government Assistance schools in recognition of the complementarity role of private schools in providing
to Students and Teachers in Private Education (GASTPE) basic education to Filipino learners.
and expansion of the TSS to elementary and SHS
teachers GASTPE aims to provide education assistance program for students and teachers
in private schools under the tuition subsidy to junior high and senior high school
students (SHS) who wish to pursue their studies in private schools through the
Education Service Contracting (ESC) scheme. 

The proposed amendment aims to clarify the scope and coverage; tighten the list of
Amendment to the Special Education Fund (SEF) eligible expenses chargeable against the SEF; eliminate provisions that are already
provisions in the Local Government Code irrelevant and restate those that are confusing; and strengthen the position of
DepEd in the Local School Board in decision-making.

This proposed bill guarantees support for the expansion and strengthening of the
alternative learning system to respond to the needs of out-of-school children, youth,
and adults for improved knowledge, values, and life skills, and better preparedness
Alternative Learning Systems Bill for work, higher education, and self-employment. It establishes the Bureau of
Alternative Education, which will focus on policy, curriculum, learning program
delivery, learning materials, learner assessment, quality assurance, and support
systems of the non-formal education system.

Subsector Outcome: Quality of higher and technical education and research for equity and global competitiveness improved

This proposed law aims to integrate and harmonize all existing enterprise-based
Bill on the Rationalization and Harmonization of
training modalities like Apprenticeship, Dual Training System, On-theJob Training,
Enterprise-based Training Modalities
Work Immersion.

The bill aims to strengthen CHED by incorporating all added mandates (created by
Amendment of the Higher Education Act of 1994 (RA 11 new laws passed by Congress since 1994) in a single document. Once passed,
7722) and Strengthening the Commission on Higher it will expand the CHED’s mandate to cover sports development, supervision, and
Education (CHED) regulation of higher education programs offered by local universities and colleges,
and internationalization of HEIs, among others.

Cross-cutting

This aims to strengthen the use of ICT in public elementary and high school through
ICT in Education Bill establishing computer centers in schools, teacher training, and digitization of
administrative systems.

Flexible Learning System Bill and support for The proposed legislative measure will allow for funding to support and promote
blended learning systems flexible learning systems in public and private schools, as well as in HEIs.

Chapter 10 Human Capital Development Towards Greater Agility | 191

LEGISLATIVE AGENDA RATIONALE

Sector Outcome: Income-earning ability increased and adaptability enhanced

Subsector Outcome: Employability improved

This will encourage enterprises to participate in the implementation of

apprenticeship programs by enhancing responsiveness to the identified needs of
Amendment to the Apprenticeship Law enterprise and prospective apprentices. Specifically, EO No. 111, s. 1986 that sets
the maximum duration of apprenticeship programs must be repealed. Training
duration must depend on the complexity of the skills to be learned.

Subsector Outcome: Productivity improved

To accelerate the adoption of productivity improvement and gainsharing schemes,

this measure seeks to liberalize the restrictive provisions of the RA 6971 while (a)
making the establishment of productivity incentives committees mandatory in large
Amendment to the Productivity Incentives Act (RA 6971) private business enterprises; (b) reiterating that gainsharing will be contingent on
gains from productivity improvement; and (c) easing the requirements for availing
tax incentives by business enterprises for granting productivity incentives and
grants to employees and workers.

Subsector Outcome: Labor mobility improved

This will pursue the amendment to the five-day workweek prescribed by the Labor
Code, accompanied by more specific guidelines on the implementation of alternative
Amendments to the Labor Code work arrangements for both private and public sector. This will also establish a legal
framework on part-time work to increase flexibility for employers while integrating
workers’ protection.

Subsector Outcome: Income security guaranteed

Amendments to the Magna Carta of Public Health A more equitable hazard allowance of public health workers across salary grades
Workers will be pursued.

Amendments to the Guidelines and Benefits of The guidelines and benefits of the Employees Compensation Program need to be
Employees Compensation Program amended to include compensations for pandemic-related risks at work.

192 | Updated Philippine Development Plan 2017-2022

11
Ensuring Food
Resiliency
and Reducing
Vulnerabilities
of Filipinos
CHAPTER 11

Ensuring Food Resiliency and

Reducing Vulnerabilities
of Filipinos
The COVID-19 crisis further reinforced the country’s determination to strengthen its social
protection system towards ensuring the resilience, health, and wellbeing of Filipinos. In the
first half of the Plan period, social protection programs have contributed considerably to the
reduction of vulnerability and poverty. Improvements were largely driven by wider coverage
and effective social assistance given to the poor, especially to the extremely poor. Building
on this platform and given the vulnerabilities that surfaced during the COVID-19 pandemic,
the sector will focus on proactively minimizing Filipinos’ exposure to risks and increasing
their capacities to manage shocks so that they can continue to achieve their full potential
and pursue their aspirations. The proposed initiatives will guarantee that the country’s social
protection system is responsive to keep the country healthy and resilient as it adjusts to the
changes brought about by emergencies and adapt to the new normal.

Assessment and Challenges

The government has improved social protection of Senior Citizen Act, Community-Based
financing and institutional arrangements during Monitoring System Act, Philippine Identification
the first three years of Plan implementation. The System (PhilSys) Act, Bayanihan to Heal as One Act,
initiatives include the convergence of government and the Bayanihan to Recover as One Act.
efforts by using the Listahanan; approval and
adoption of Social Protection Plan 2020-2022; Importance of social protection was also
enhancement of the Pantawid Pamilyang Pilipino demonstrated with the inclusion of measures to
Program (4Ps); and the expansion of PhilHealth protect those most likely to be adversely affected
and social pension coverage. Further, landmark by reforms. TRAIN included an Unconditional
legislation and reforms were passed such as the Cash Transfer program to mitigate its possible
Universal Health Care (UHC) Act, Mandatory inflationary impact in low-income households. The
PhilHealth Coverage for All Persons with Rice Tariffication Law (RTL) contributed to food
Disability, 4Ps Act, Social Security Act, 105-Day security and resiliency, especially among low income
Expanded Maternity Leave Law, Magna Carta of households, and provided a package of assistance to
the Poor, Safe Spaces Act, Masustansyang Pagkain rice farmers to improve their competitiveness given
para sa Batang Pilipino Act, National Commission this new trading regime.

Chapter 11 Ensuring Food Resiliency and Reducing Vulnerabilities of Filipinos | 195

With such initiatives, coverage of the different social The scale and severity of the COVID-19 crisis
protection programs has improved: PhilHealth brought to the surface many vulnerabilities of
coverage increased from 91 percent in 2016 to 100 Filipinos. The We Recover as One Report noted that
percent in 2019; Social Pension for Indigent Senior almost 40 percent of survey respondents claimed
Citizens beneficiaries expanded from 1,412,598 that their income declined, and that “…various
in 2016 to 2,690,916 in 2019; and Social Security interpretations about the quarantine imposition held
System (SSS) coverage of the economically active up cargoes and hindered delivery trucks carrying
population rose from 34 percent in 2016 to food and other basic items needed by residents of
41 percent in 2019. In 2019, Pantawid Pamilya Metro Manila and the rest of Luzon.” Compounded
also started replacing households that exited with policies that restrict the mobility of individuals
the program to cover more poor Filipinos.1 (e.g., stoppage of public transportation services) to
More importantly, social protection programs contain the spread of the virus and build up health
have contributed to poverty reduction. Based on system capacity, many individuals and families
the estimates from the World Bank, Pantawid found it difficult to access food and other goods and
Pamilya helped reduce poverty incidence and services to go to work. In particular, 45 percent of
income inequality by 1.3 percentage points and 0.6 families with senior citizens, persons with disability,
percentage points in 2017 2 while social insurance and pregnant women had limited access to basic
programs reduced poverty headcount ratio of necessities. The Philippine Coalition on the United
the poorest quintile by 1.2 percent in 2016.3 In Nations Convention on the Rights of Disabled
particular, the enactment of the RTL in 2019 Persons also noted that persons with disabilities may
reduced the price of rice and ensured stable and have difficulty getting information on COVID-19
low inflation for low income families. A study by if these were not provided in accessible formats.
NEDA and the International Food Policy Research Furthermore, with mobility restrictions, cases of
Institute 4 showed that the implementation of the violence against women and children (VAWC)
RTL will reduce the number of malnourished become a concern because of the proximity of the
children and population at risk of hunger by 2.8 abuser to the victim and the disruption of preventive
percent and 15.4 percent, respectively, by 2025. services and support systems.
However, there are still pressing challenges: (a) the
target of zero deaths due to disasters was not met To help Filipinos manage such shocks, the
because of limited capacity and limited coherent government issued policies that deferred the
actions from multisectoral actors in disaster payment of obligations such as tax and rent, and
risk management, particularly in addressing provided emergency financial subsidies such
underlying vulnerabilities of communities; (b) SSS as the social amelioration program (SAP) and
coverage among economically active population small business wage subsidies. According to the
remains low at 41.48 percent due to affordability Philippine Institute of Development Studies, these
concerns among informal sector workers; and social protection initiatives helped curb the impact
(c) impairments/health condition and physical of the COVID-19 pandemic by preventing about
and social barriers severely disabled 12 percent of four million Filipinos from slipping into poverty.6
Filipinos 15 years old and above in 2016.5

1
DSWD. Pantawid Pamilyang Pilipino Program National Advisory Committee Resolution No. 43. Institutionalizing replacement policy allowing
for continuous replacement of CCT households.
2
Acosta, P., Avalos, J., Zapanta, A. (2019). Pantawid Pamilya 2017 Assessment. World Bank Social Protection Policy Note.
3
Tabuga, A., Cabaero, C. (2019) Towards Inclusive Social Protection Program Coverage in the Philippines: Examining Gender Disparities.
4
Perez, N. D., and Pradesha, A.. (2019). Philippine Rice Trade Liberalization: Impacts on agriculture and the economy and alternative policy
actions. NEDA-International Food Policy Research Institute Policy Studies.
5
Philippine Statistics Authority’s 2016 National Disability Prevalence Survey considers disability as an outcome of the interaction of individuals’
impairment/health condition and their physical and social environment.
6
Albert, JR, Abrigo, MR, Quimba, FM, Vizmanos, JF. Poverty, the Middle Class, and Income Distribution amid COVID-19. PIDS Discussion
Series.

196 | Updated Philippine Development Plan 2017-2022

The crisis highlighted inefficiencies in the and disadvantaged areas (GIDAs), localities with
delivery of social protection programs. While high rate of COVID-19 cases, and conflict-affected
generally flexible in responding to shocks areas. Moreover, there were bottlenecks in local
and crises, adjustments to social protection government units (LGUs) distribution due to the
programs often take time to be implemented. need to validate the list submitted by the barangays
In the case of the SAP, data limitations prevented and to respond to grievances among their
efficient targeting and provision of assistance, constituents, and the stringent procedure of local
while logistical problems caused delays in treasurers.7 In terms of unemployment benefits,
certain localities. The Department of Social workers who lost their jobs had difficulty getting
Welfare and Development (DSWD) was able to financial support due to the tedious process of
immediately distribute SAP grants to Pantawid availing the benefit, closure of SSS offices, and
Pamilya beneficiaries with cash cards but they limited understanding of the program.
had difficulty distributing grants through physical
payments, especially in geographically isolated

Targets
Strategies under the social protection sector of the Philippine Development Plan 2017-2022 aim to ensure
access to nutritious food even during emergencies, reduce each type of risk, and enable people to manage
individual, economic, natural and human-induced disasters, and governance and political risks.

Table 11.1 Updated Targets to Ensure Food Resiliency and Reduce Vulnerabilities of Filipinos

BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

Ensure food resiliency

Prevalence of moderate or severe food insecurity in the

- - - - -
population, based on the Food Insecurity Experience Scale

5.12
Severely food insecure TBD TBD 0.00 -
(2019)

39.06
Moderately food insecure TBD TBD 25.78 -
(2019)

Mitigate risks faced by vulnerable groups

Out-of-pocket health spending as percentage of 45.0

* * TBD TBD
total health expenditure (2016)

80.52
National Health Insurance Program availment rate (%) * * 100 100
(2017)

Percentage of population covered by 91

100 100 100 100
social health insurance** (2016)

7
DSWD. (May 2020). DSWD SAP 1st Tranche Implementation Monitoring and Evaluation Report.

Chapter 11 Ensuring Food Resiliency and Reducing Vulnerabilities of Filipinos | 197

 BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

Number of eligible senior citizens who received 1,412,598

3,796,791 4,107,324 4,550,220 4,550,220
social pension (2016)

1,066
Number of child laborers (in ‘000)*** 0 0 0 0
(2017)

100
Proportion of women in especially difficult circumstances (355,133
100 100 100 100
reported in DSWD served cases served)
(2016)

100
Proportion of violence against women cases reported in (1,749
100 100 100 100
DSWD served cases served)
(2016)

100
(3,857
Proportion of child abuse cases reported in DSWD served 100 100 100 100
cases served)
(2016)

Manage economic risks

Percentage of economically active population 34.1

41 42 44 44
contributing to SSS (2016)

68.1
Percentage of families covered by social insurance**** TBD TBD TBD TBD
(2016)

Deal with natural hazards and human-induced shocks

0.09
Number of deaths attributed to natural disasters
(91 deaths) 0 0 0 0
per 100,000 population
(2016)

0.200
Number of deaths attributed to human-induced disasters
(207 deaths) 0 0 0 0
per 100,000 population
(2016)

0.03
Number of missing persons attributed to natural disasters (29 missing
0 0 0 0
per 100,000 population persons)
(2016)

0.017
Number of missing persons attributed to human-induced (18 missing
0 0 0 0
disasters per 100,000 population persons)
(2016)

7,144.557
Number of directly affected persons attributed to natural (7,376,237
0 0 0 0
disasters per 100,000 population persons)
(2016)

140.036
Number of directly affected persons attributed to human- (144,577
0 0 0 0
induced disasters per 100,000 population persons)
(2016)

198 | Updated Philippine Development Plan 2017-2022

 BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

100
Percentage of families affected by natural and (969,470
100 100 100 100
human-induced disasters provided with assistance families)
(2016)

100
Percentage of households with damaged houses (261,617
100 100 100 100
provided with emergency shelter assistance households)
(2016)

Proportion of emergency loan applications by 100

100 100 100 100
calamity-affected GSIS members and pensioners granted (2016)

Achieve universal social protection

1.7
Total government expenditures in SP as percentage to GDP TBD TBD 3.7 3.7
(2016)

Share of total government expenditures in SP 9.4

TBD TBD TBD TBD
to the national budget (2016)

*
Note that the Responsible Agency (e.g. DOH, PhilHealth) did not provide annual targets for these indicators as data are not
available for these years (or only end-of-plan target was provided by the concerned agencies).
**
Coverage rate is the aggregate count of PhilHealth beneficiaries (eligible member and qualified dependents) under Formal
Economy (Private, Government, Household Help/Kasambahay, Enterprise Owner and Family Drivers), Informal Economy
(Migrant Worker, Informal Sector, Self-Earning Individual and Organized Group and Others), Indigents, Sponsored Members,
Senior Citizens and Lifetime Members as a percentage of the total population.
***
Data generated from the Labor Force Survey (LFS) October 2017 Survey Round. It is based on DOLE Department Order
(DO) No. 149 Series of 2016 and DO No. 149-A Series of 2017 that enumerate the work that would render a person below 18
years of age to be engaged in child labor. As this data satisfy only a few of the criteria for child labor, it cannot be compared to
the results (data) from the 2011 Survey on Children.
****
This refers to the total number of families with at least one member covered by any (one or more) social insurance programs
(i.e., SSS, GSIS, PhilHealth, private insurance, others) divided by the number of families covered and not covered by any social
insurance.

Strategic Framework
Strategies that reduced the vulnerability of Filipinos and built the capacity of individuals and families to
manage and cope with various risks and shocks will be enhanced.

Chapter 11 Ensuring Food Resiliency and Reducing Vulnerabilities of Filipinos | 199

Figure 11.1 Strategic Framework to Ensure Food Resiliency and Reduce Vulnerabilities of Filipinos

200 | Updated Philippine Development Plan 2017-2022

Strategies
The government will continue to implement Institute (DOST-FNRI), and the Food and Drug
policies and programs that will empower and Authority, among others, will enhance the country’s
build the resilience of Filipinos and further reduce food fortification program, a complementary
poverty and vulnerability. Policies and services intervention to micronutrient supplementation, to
will be updated and upgraded to ensure individual produce fortified staples and raw materials for use
and institutional agility in managing shocks and in disasters and safety net programs. This will be
providing timely assistance. pursued through partnership between national and
local governments, business networks, and local
organizations.
Ensuring food resiliency
Encourage small-scale planting for the
This chapter features strategies which ensure consumption of the households and community.
people’s access to nutritious food even during This strategy includes the Plant, Plant, Plant Program
emergencies. Related food security measures on of the (DA) focusing on available technologies for
ensuring the stability of food supply are discussed both urban and rural homes and partnering with
in Chapters 8 and 20, while initiatives for proper institutions to augment food supply in communities
nutrition are found in Chapter 10. The Inter-agency and among households. To foster effective backyard
Task Force on Zero Hunger 8 ensures that these gardening and ensure access to healthy food, the
strategies are supported by policies and programs DOST and the National Commission on Indigenous
that will end hunger, achieve food security, improve Peoples will be engaged to explore and implement
nutrition, and promote sustainable agriculture. not only new technologies but also indigenous
knowledge systems and processes.
Strengthen efforts to link food demand and
supply. Linkages between public institutions and Fully implement the Masustansyang Pagkain
relevant actors involved in food and nutrition para sa Batang Pilipino Act (RA 11037) and
security will be strengthened through existing provide nutritious food packs to children
convergence partnerships and multisector through the Supplementary Feeding Program
platforms such as Enhanced Partnership Against and School-Based Feeding Program. RA 11037
Hunger and Poverty, Early Childhood Care institutionalized government-feeding programs 9
and Development, First 1000 Days, and Scaling for Filipino children in day care centers,
Up Nutrition Movement with the aim of fortifying kindergarten, and elementary schools. To address
local value chain employment. These will also emerging nutrition concerns during emergencies,
consider government’s efforts that link products and food supplementation through the Supplementary
markets such as the Department of Agriculture’s Feeding Program and School-Based Feeding
(DA) Kadiwa ni Ani at Kita and the Department of Program can be enhanced. Instead of hot meals,
Trade and Industry’s Negosyo sa Barangay. day care and elementary school students will be
provided with nutritious food packs, which may
Strengthen the food fortification program. The include vegetable noodles (malunggay/squash/
Department of Health (DOH) in coordination carrots), iron-fortified rice, and enhanced nutribun,
with other concerned agencies such as the National among others. Said food packs will then be
Nutrition Council (NNC), Department of Science distributed by the DSWD and the Department of
and Technology- Food and Nutrition Research Education (DepEd), in close coordination with the

8
Executive Order No. 101: Creating an Inter-agency Task Force on Zero Hunger.
9
Supplementary Feeding Program for Day Care Children, School-Based Feeding Program, and Milk Feeding Program.

Chapter 11 Ensuring Food Resiliency and Reducing Vulnerabilities of Filipinos | 201

LGUs and other concerned government agencies / will have access to a comprehensive set of quality
entities, using a scheduled grab-and-go system in and cost-effective health care services. PhilHealth
consideration of the safety of everyone involved. will develop new or enhance existing health
benefit packages as recommended by the Health
Facilitate the provision of food and other Technology Assessment process.11 Outpatient
necessities to vulnerable and high-risk individuals benefit packages including diagnostics, laboratory,
during emergencies.10 The DSWD and NNC will dental, medicines, and other preventive services
work with LGUs in ensuring that those who have will be provided to all Filipinos. PhilHealth
difficulty accessing food due to risk of infection or should also guarantee the availability of case rate
difficulty in mobility have sufficient and nutritious packages for emerging and re-emerging diseases.
food. Moreover, implementation of the No Co-payment
Policy, wherein no other fees or expenses will be
Provide designated service time for older charged to those who will be admitted to basic or
persons and other groups highly susceptible to ward accommodations, will be ensured.
infection. Groceries and drug stores may open
earlier and designate the first two hours to older Strengthen the information, education, and
persons, persons with disabilities, and pregnant communication (IEC) campaign on health
women to ensure cleanliness of facilities and avoid and the available insurance and benefits. The
exposure to other individuals. DOH will improve health promotion to ensure
that all Filipinos are aware of and have access to
Continue cash-for-work programs. Emergency health information and benefits that they can
cash-for-work programs by DSWD and the avail. Targeted risk communications in precise
Department of Labor and Employment (DOLE) and culturally resonant messages that integrate
would help provide temporary employment COVID-19 infection prevention and control will
and income to severely affected workers due to also be developed. Importantly, a cost-effective
COVID-19, even after the community quarantine communication strategy and plan will need to
has been lifted. be drawn up and funded adequately. Moreover,
broadcast media (i.e., radio and television) and
Provide wage subsidy. The Employment Recovery various online platforms including social media,
Plan of DOLE will continue to help establishments as well as other low-tech modalities for areas
retain their workers amidst temporary closures with no access to these technologies, will be
and adoption of flexible work arrangements. utilized to inform and increase health awareness
The program will cover small and medium-scale of the public. Other agencies and stakeholders,
enterprises. including the DepEd and LGUs, will also
be tapped to integrate health literacy in the
curricula and in the activities in the community,
Mitigating risks faced by respectively. These will include key information
vulnerable groups about the NHIP of PhilHealth, its importance, and
benefits as well as other concerns such as ensuring
mental health amidst the COVID-19 crisis.
Ensure financial risk protection through
improved PhilHealth coverage and benefit
packages. With the passage of the UHC Act, all
Filipinos are now automatically covered by the
National Health Insurance Program (NHIP) and

10
These include older persons, immunocompromised individuals, persons with disabilities, adolescent mothers, children, solo parents, pregnant
and lactating mothers, internally displaced persons, and urban poor.
11
Section 34 of the Universal Health Care Act Implementing Rules and Regulations

202 | Updated Philippine Development Plan 2017-2022

Implement a holistic approach in addressing Implement community-based programs to
child labor. Aside from initiatives to address address VAWC, including the development of
poverty and ensure employers’ compliance to a standardized VAWC manual. A standardized
employment standards, the government as led by VAWC manual of operations/protocol will be
the National Council Against Child Labor, will also developed by the IACVAWC to better assist
implement specific programs that will strategically abused women and children, as well as improve
help end child labor. These include engaging the referral system between the DSWD and the
non-government organizations and community institutions where the cases are being reported.
members, addressing the needs of both children Among others, the document will help (a)
and their parents, and gathering and sharing data. improve the functionality of Local Councils for
Educating parents on child labor through the the Protection of Children and the VAW desks and
Family Development Sessions of the 4Ps (under (b) harmonize existing VAWC databases (i.e. PNP,
the DSWD) and Parents-Teachers Associations DSWD) to ensure that all victims are provided the
(under the DepEd) will be a central strategy in this needed support services. There is also a need to
endeavor. prioritize the continuity of child-centered services,
especially during disasters and emergencies, to
In terms of data collection and management, avoid disruption of preventive services and support
DOLE and DSWD will roll out the child labor systems. With this, it is important to ensure the
registry, which lists all profiled child laborers and availability of 24/7 helplines as well as the adoption
the appropriate services for the child and their of mobile and online platforms for reporting
parents. Aside from coordinating interventions, child and women protection issues and accessing
the registry will also be helpful in monitoring government assistance and services.
children at risk of engaging in or returning to
child labor. Increase social pension and expand its coverage.
To address the vulnerability of older persons,
Study the necessity of establishing a governmental the amount of the social pension being granted
body on Filipino families. Many developmental will be further increased. Its coverage will also be
issues such as VAWC primarily concern families broadened to include not only the indigent older
and their members. The NEDA Social Development persons, but also those who are not receiving any
Committee (SDC) may therefore look into the pension. This entails improved coordination among
creation of a governmental body that will lead in the Government Service Insurance System, SSS,
the development of policies and programs aimed the National Commission of Senior Citizens, and
at promoting the wellbeing of families. Among DSWD towards smooth sharing of the necessary
others, it may work on values formation and information to identify and verify beneficiary
prevention of violence among family and overlaps. Also, to improve targeting and coverage, a
household members. registry of older persons will be established.

Conduct advocacy programs aimed at preventing Conduct information campaign on disability.

the occurrence of VAWC. Venues such as the The government, with the leadership of the
Family Development Sessions will be useful National Council on Disability Affairs (NCDA),
in providing VAWC education to individuals, will continue conducting information and education
especially those from poor families. With this, the campaigns among stakeholders to improve their
Interagency Council on Violence Against Women understanding of disability, as well as increase
and their Children (IACVAWC) will spearhead people’s awareness of the rights of persons with
behavioral communication and advocacies on disabilities. These campaigns should help address
gender sensitivity and VAWC for the general public. the negative attitude and behavior towards persons
Here, it is important to fully engage everyone as with disabilities.
strategic partners in achieving gender equality and
the empowerment of all women and girls.

Chapter 11 Ensuring Food Resiliency and Reducing Vulnerabilities of Filipinos | 203

Improve the accessibility of social protection Continue the implementation of minimum health
services for persons with disabilities. The standards. The prescribed minimum public health
members of the NCDA Board will continue their standards in transport, workplaces and public
work on addressing the physical and social barriers places will be continuously implemented and
that prevent persons with disabilities from accessing monitored by the LGUs and national government
services, including social protection programs. This agencies in partnership with the private sector to
includes ensuring the availability of facilities and prevent and reduce the spread of COVID-19 as
services (e.g. allied health professionals) in the well as ensure the safe re-opening of the economy.
different localities in the country (see also Chapter Further, the NGAs need to ensure that the
10 on related health services). Related strategies are minimum health standards are observed in the
in Chapter 7 (on culture), and Chapter 19 (on the delivery of social protection projects and services
accessibility of infrastructure). Amidst the mobility to avoid the spread of COVID-19. (see PDP
restriction due to the COVID-19 crisis, services Chapter 10 for further discussion on the matter).
to persons with disabilities may be expanded to
include the provision of information in accessible Reach out to Filipinos in GIDAs. Working with
formats, and financial and specialized support such the LGUs, the NEDA-SDC Subcommittee on
as free transportation to medical and rehabilitation Social Protection (SCSP) will determine and
facilities, income generating activities, and delivery address the barriers that prevent Filipinos,
of necessities. especially those living in GIDAs from accessing
social protection programs. With this, the SDC-
Implement measures to improve access of SCSP shall also identify appropriate assistance
vulnerable individuals to necessities and support measures to be provided to individuals living
services and protect them from COVID-19. in GIDAs during pandemics and emergency
There is a need for the government, led by the situations.
Task Group on Recovery, to adopt clear policy
guidelines to ensure that high-risk individuals (i.e.
older persons and those with serious underlying Managing economic risks
medical conditions) are protected and have access
to food, medicine, and other necessities while the Broaden SSS coverage and benefits availment.
risk of COVID-19 is still high. At the same time, The SSS aims to broaden its coverage by ensuring
there should be measures to help reduce possible simple registration, payment, and benefit
exposure of these vulnerable individuals to the application processes through physical and online
virus. platforms. It will also continue conducting
information campaigns and providing programs
Ensure equitable access to the COVID-19 such the AlkanSSSya and KaltaSSS, which help
vaccine once available. The IATF for Emergency workers, especially those in the informal sector,
Infectious Diseases Sub-Technical Working Group gain SSS coverage. With the increase of income
(sTWG) on Vaccine Development will continue to opportunities through online platforms, the
spearhead the research and development, testing/ government will ensure that those engaging in
trials, regulation, and accreditation of the potential these platforms have access to health and
COVID-19 vaccines entering the country. The emergency assistance and SSS benefits, including
sTWG will likewise explore multiple avenues old-age pension. To facilitate coverage, partnerships
(i.e. WHO Solidarity trials; COVAX facility, will be established between gig economy
bilateral or multilateral agreements) to acquire platforms (i.e. Grab, Angkas, Lalamove, FoodPanda,
the vaccines. In anticipation, a procurement and Transportify, among others) and government
distribution plan will be developed to prepare social security agencies (SSS, PhilHealth,
budgetary and logistical requirements, among and Employees’ Compensation Commission).
others, and ensure equitable access nationwide. With this, the coverage of the Employment
Compensation Program may also be expanded.

204 | Updated Philippine Development Plan 2017-2022

Enhance people’s access to unemployment and fisherfolk are immediately assessed and
insurance (UI) and related services. The SSS, addressed. Furthermore, the Philippine Crop
in partnership with other relevant agencies, will Insurance Corporation will continue and expand
implement an information drive on UI nationwide. the provision of insurance for crops, livestock,
This will draw attention to and increase knowledge fisheries, and even non-agricultural assets of
on UI benefits, qualification, and availment process. farmers and fisherfolk to help them recover during
Given the new normal and to ensure the timely disasters and prevent them from falling into or
provision of assistance, the SSS will also fast-track falling further into poverty (see PDP Chapter 8 for
systemic upgrade to allow for digital application further discussion on the matter).
and transactions.
Promote proactive disaster preparedness among
Furthermore, the SSS UI will be tightly linked to individuals. Filipinos will be informed and
active labor market policies. The SSS in partnership encouraged to use existing tools such as the DOST’s
with DOLE will tap the Public Employment HazardHunterPH12 to understand natural hazards
Services Office and PhilJobNet to facilitate the and help mitigate their effects. Information and
matching of demand for workers in emerging advocacy campaigns will be intensified especially
industries and UI recipients. Simultaneously, in schools, work places, and communities. Fire and
upskilling and retooling trainings will be offered earthquake drills will also be conducted in urban
by concerned stakeholders including TESDA to UI and rural areas.
recipients to improve their skills and qualifications
given the new normal. Promote disaster-resilient infrastructure. The
Department of Public Works and Highways will
Conduct further studies on unemployment conduct an assessment of the structural integrity of
insurance. To further improve the country’s existing structures to ensure safety and resilience to
unemployment insurance system, studies natural hazards, particularly during earthquakes.
will be conducted to explore the creation of a Stringent implementation of policies on the
separate program fund, UI linkage to active labor issuance of permits for buildings, especially
market policies, optimal benefits (i.e. higher residential, will also be assessed
compensation benefit or longer duration of
benefit), and the criteria to avail the benefits, Ensure the safety of disaster victims. To address
especially during pandemic, among others. the challenges faced by Filipinos before, during
Furthermore, to ensure financial viability, the and after disasters, the National Disaster Risk
proposed reforms to the unemployment insurance Reduction and Management Council (NDRRMC)
system should be supported by an actuarial will ensure the provision of safe evacuation and
study. transition houses, which will have women and
child-friendly spaces. The DSWD and DOH will
also make available appropriate and adequate
Dealing with natural hazards mental health and psychosocial support services
and human-induced shocks during disasters.

Establish a menu of social protection programs

Provide rapid assistance and insurance for to be implemented during disasters and
farmers and fisherfolk. Concerned agencies such emergencies. To address the responsiveness of
as the DA and the DSWD will work closely in social protection programs to natural and human-
ensuring that impacts of disasters to farmers induced disasters, the SDC-SCSP will develop a

12
HazardHunterPH is a tool that can be used to generate indicative hazard assessment reports on the user’s specified location. It is helpful as a
reference of property owners, buyers, land developers, planners, and other stakeholders needing immediate hazard information and assessment
(Source: https://hazardhunter.georisk.gov.ph/)

Chapter 11 Ensuring Food Resiliency and Reducing Vulnerabilities of Filipinos | 205

menu of social protection programs which can be programs, and projects already integrate safeguards
readily implemented upon the occurrence of such that would prevent or mitigate negative impacts
events. These programs should be inclusive and on economic sectors and population groups.
cater to all those who are affected by the shock (i.e., This requires the identification of the affected
both formal and informal sectors, among others). population groups prior to the implementation of
Doing so will facilitate easier access of people to development interventions. The NEDA, DOF, and
social protection services in times of disasters and the Department of Budget and Management will
emergencies. identify funding mechanisms that may be tapped
by national agencies and local government units
Continue building the capacities of disaster to assist the adversely affected population groups.
risk reduction and management (DRRM)
stakeholders and improve coordination of Provide persons of concern (POC) with
services. The NDRRMC will coordinate and access to protective services. Engagements and
spearhead information campaigns, trainings, partnerships of concerned agencies such as the
and drills for DRRM stakeholders, as well as Department of Justice and DSWD will continue to
the purchase of early warning and emergency provide POCs with access to protective services. A
devices. There will be emphasis on inclusion database management system for the POCs will be
to allow for effective participation of community developed to efficiently assess and monitor their
members and population groups in DRRM. concerns.
These efforts will be supported by data and
information through the conduct of disaster and
climate vulnerability and risk assessments and the Achieving universal
production of hazard maps. social protection
To strengthen institutional response to disasters,
the NDRRMC will provide mechanisms for Develop a Social Protection Code. The NEDA-
the conduct of post or rapid disaster needs SCSP will develop a Social Protection Code to
assessment. Coordination between responders aid stakeholders, especially LGUs, in developing
and aid organizations will be clearly defined responsive and effective social protection
to avoid inefficiencies and to ensure that all programs and projects. This will also remove the
disaster victims are provided with support. This duplication of social protection interventions
entails the production and dissemination of IEC among government entities. Likewise, the Social
materials, conduct of related orientation seminars, Protection Code will ensure that Filipinos living
and establishment of communication systems in GIDAs will have access to social protection
so that concerned service providers, including programs.
non-government organizations, have a clear
understanding of their roles and responsibilities Institutionalize a Social Protection Floor.
during disasters and emergencies. The COVID-19 pandemic brought to fore
the importance of institutionalizing the Social
Protection Floor. It is instrumental in guaranteeing
the access of people to social protection services,
Addressing governance and rendering its institutionalization vital in the
political risks improvement of social protection service delivery
in the country. Once the Social Protection Floor is
finalized, a policy directive will be issued to officially
Integrate safeguards into development
adopt and enumerate its components, including the
interventions and establish funding mechanisms
roles of the concerned agencies.
for these safety nets. NEDA, through the various
NEDA Board Committees, will see to it that new
development interventions in the form of policies,

206 | Updated Philippine Development Plan 2017-2022

Encourage proactive resilience of households, disabilities, workers in the informal and gig
including savings mobilization. Information economy, and those affected by development
and education campaign to encourage households interventions. This initiative will consider
to prepare for emergencies will be strengthened, integrating data from the CBMS and other existing
through the financial literacy and advocacy registries, and the lessons learned from their
program of the Bangko Sentral ng Pilipinas, among operation. Said registry will also be configured to
others. An important element in this strategy is be interoperable with the PhilSys.
encouraging households to have a bank account so
that they can save and improve their resilience in Digitalize the delivery of social protection
coping with shocks. assistance and services. The government’s social
protection approach will be updated and
Fast-track the implementation of the PhilSys upgraded to allow for institutional agility in
and synchronize the Listahanan with PhilSys. managing shocks and providing timely assistance.
The implementation of PhilSys or the National The concerned agencies such as the DSWD,
ID system should be fast tracked because it is DOLE, and SSS, in coordination with DICT will
critical in delivering responsive social protection enhance their systems to make use of available
services. The Philippine Statistics Authority technology (including digital cash transfers,
(PSA) aims to cover five million low-income online delivery platforms) in providing services
household heads by December 2020. Concerned and reaching every Filipino, including those in
agencies such as the PSA and the DSWD will GIDAs, whenever possible. As mentioned above,
explore linking the PhilSys ID cards to a digital government will explore linking the PhilSys ID
payment system that will allow for more efficient to a digital payment system that will allow for
transfer of government assistance in times of crisis, more efficient transfer of government assistance
pandemics, or disasters. Part of the plan for the in times of crisis, pandemics, or disasters. This
registration process for the PhilSys national ID, initiative will be accompanied by enhancements
is to allow registrants to open a bank account with in individuals’ technical know-how and
Land Bank of the Philippines through which cash improvements in digital infrastructure, especially
transfers can be made. in GIDAs.

The Listahanan database needs to be synchronized Monitor and evaluate Social Protection policies
with the PhilSys to include information found in and programs. In accordance with the National
PhilSys such as biometrics, use of PhilSys Number Evaluation Policy framework, social protection
(PSN), and tokenized PSN, among others. This will programs will be regularly assessed and monitored
allow for better targeting of SP services. by the SDC-SCSP to ensure that program and project
objectives are met. Monitoring and evaluation
Create a registry of vulnerable groups and activities will form part of the annual budget
address data constraints. To implement policies of implementing agencies and LGUs, reports of
and social protection programs in an effective and which will be uploaded to their respective websites
timely manner, the DSWD, in cooperation with to ensure transparency.
the concerned councils and/or commissions, will
develop a registry of vulnerable groups, especially
for street children, older persons, persons with

Chapter 11 Ensuring Food Resiliency and Reducing Vulnerabilities of Filipinos | 207

Legislative Agenda
To complement the strategies, the following legislative actions will be pursued to achieve universal and
transformative social protection program for all Filipinos.

Table 11.2 Legislative Agenda to Ensure Food Resiliency and Reduce Vulnerabilities of Filipinos

LEGISLATIVE AGENDA RATIONALE

Individual Lifecycle Risks

Philippine Adoption Act for

The proposed legislation seeks to improve the quality of foster care for abandoned and neglected
Abandoned and Neglected Children
children, particularly those with special needs.
and for Children with Special Needs

Anti-Senior Citizen Abuse Act The bill aims to protect senior citizens from all forms of abuse.

Increasing amount and coverage This aims to increase the amount of the monthly social pension and expand the coverage of qualified
of social pension beneficiaries of the social pension.

Environmental and Natural Risks

This will establish permanent and resilient (i.e., to earthquake and hydrometeorological hazards)
evacuation centers with the necessary facilities to avoid the practice of using classrooms as
evacuation centers during calamities. Under this bill, evacuation centers should have women,
Evacuation Center Act
children, persons with disability, and elderly-friendly spaces. It should also be constructed with
space that can be used flexibly during emergencies. The NDRRMC will be in charge of identifying
which municipalities and cities will be given priority.

208 | Updated Philippine Development Plan 2017-2022

12
Building Safe,
Resilient, and
Sustainable
Communities
 CHAPTER 12

Building Safe, Resilient, and

Sustainable Communities
The urgency to address the growing need for adequate housing in well-planned communities
has never been a matter of survival until the country confronted the COVID-19 pandemic. We
have seen in various highly-dense communities the rapid increase of the spread of the virus
given the difficulty to observe safe social distancing in congested spaces and inadequate
access to household water and sanitation. Against this backdrop, the housing and urban
development sector continues to pursue building safe1, resilient, and sustainable communities
towards realizing a safe and healthy Philippines. The sector will operationalize the Building
Adequate, Livable, Affordable, and Inclusive Filipino Communities (BALAI) program. BALAI is
the multi-stakeholder partnership platform of the Department of Human Settlements and Urban
Development (DHSUD) and its attached corporations with the private sector, local government
units (LGUs), and the communities, aimed at expanding access to housing opportunities by
accelerating housing production, enhancing housing affordability – especially for low-income
groups – and ensuring livability and sustainability of human settlements delivered through
direct and indirect assistance.

Assessment and Challenges

There is a paradigm shift from housing production dense communities. Addressing the enormous
to management of housing, human settlements, and housing need has always been challenged by a
urban development which catalyzed the creation confluence of structural and transactional factors.
of the DHSUD, consolidating the functions of the These include (a) institutional bottlenecks,
Housing and Urban Development Coordinating particularly the complex and tedious processing
Council (HUDCC) and the regulatory functions and approval of housing permits, licenses, and
of the Housing and Land Use Regulatory Board clearances; (b) lack of land suitable for socialized
(HLURB). The added powers and functions of housing development especially in urban areas; and
DHSUD provide an enabling mechanism for better (c) low agency budget allocation and utilization.
policy and program coordination, reform advocacy,
and implementation, especially at the Cabinet level. The emerging health and safety concerns as the
country transitions to the new normal are expected to
The current COVID-19 pandemic has amplified the slow down housing production as well as relocation
need to improve the quality of living conditions, and resettlement activities given the disruption in
especially of vulnerable households living in highly- production and delivery of construction materials,

  Safeguards families and communities from environmental risks and negative impacts of urbanization, with particular attention to children,
1

women, elderly people, and persons with disability.

Chapter 12 Building Safe, Resilient, and Sustainable Communities | 211

limitations in the conduct of social preparation housing developers and buyers are affected by the
activities, and greater opposition from receiving pandemic. On the part of developers, production
LGUs due to fear of infection and additional social cost (e.g., construction supplies and materials) has
services requirement, among others. These concerns increased due to the imposition of construction
also increase the demand to shift to digitalized health protocols and the need for housing redesign
government transactions on human settlements to meet public health goals. Buyers, on the other
development to ensure that processing of housing- hand, may have lost income and livelihood and may
related government permits, licenses, and other choose to postpone housing investment.
transactions are not disrupted. There is also a need
to address affordability issues considering that both

Targets
Table 12.1 shows the updated Plan Results Matrices (RMs) indicators and targets for 2020-2022.

Table 12.1 Updated Plan Targets to Build Safe, Resilient, and Sustainable Communities

BASELINE VALUE TARGETS

INDICATOR
(YEAR) 2020 2021 2022 EOP2

Percentage of socialized housing units delivered to 54

N/A N/A 11.3 11.3
socialized housing targets (Annual) (2016)

Percentage of low-cost housing units delivered to low 116.51

N/A N/A TBD TBD
cost housing targets (Annual) (2016)

Proportion of LGUs with approved/ 27

89.19 92 95 95
updated Comprehensive Land Use Plan (CLUP) increased (2019)

Proportion of urban population living in

3.2
informal settlements decreased 93.87 96 97 97
(2015)
(Sustainable Development Goal [SDG] 11.1.1)*

Proportion of families with owned or owner-like 61.0

73.36 89 92 92
possession of housing units (SDG 1.4.1p9) (2016)

Proportion of families with access to secure tenure 97.0

64 68 80 80
(SDG 1.4.2p1) (2016)

Note: * Baseline and annual targets were updated based on the SDG National Targets Validation Workshop on November 28-29,
2018 in Tagaytay City

  May either be the cumulative (2017-2022) or incremental target value at the end of the Plan period.
2

212 | Updated Philippine Development Plan 2017-2022

Strategic Framework
The sector will contribute to strengthening incorporates hazard and health standards will be
the foundations for inclusive and sustainable accelerated. Third, alternative housing solutions
development by building safe, resilient, and for low-income market will be adopted. As a
sustainable communities. This chapter refocuses crosscutting strategy, empowerment of stakeholders
the subsector outcomes on three areas: regulation, (e.g., families and communities and LGUs, among
production, and financing. First, public health others) will be intensified towards the attainment of
goals in the design of human settlements will these three subsector outcomes.
be integrated. Second, housing production that

Figure 12.1 Strategic Framework to Build Safe, Resilient, and Sustainable Communities

Chapter 12 Building Safe, Resilient, and Sustainable Communities | 213

Strategies
Integrating public health in cities and municipalities as provided for in
the Local Government Code of 1991 (RA 7160)
goals in the design of human and the Urban Development and Housing Act
settlements (UDHA) of 1992 (RA 7279). To operationalize
the LSP, implementing guidelines and strategies
To ensure livability and sustainability of human that will provide technical assistance to LGUs
settlements, public health goals will need to be in the formulation of a risk-informed LSP to
considered in building and design standards as well address resiliency and mitigate impacts of disaster/
as in shelter planning. calamity to households shall be developed. These
will complement the Supplemental Guidelines for
Enforce strict compliance with building and Mainstreaming Climate Change Adaptation and
design standards that consider public health Disaster Risk Reduction in the CLUP formulated
goals. Adjustments in housing designs to include in 2014 by the HLURB under Resolution No. 915.
minimum health standards such as the integration The LSP will also utilize POPCOM’s Demographic
of washing areas before entry into the main Vulnerabilities Tool (DVT) based on the analysis
structure of the housing unit, improving ventilation, of four important characteristics of every barangay
and providing ample public and green spaces to during a pandemic: (a) the number of houses
low-cost and socialized housing units, which may measuring less than 20 square meters (sqm) in
serve as isolation and quarantine spaces in case of the barangay; (b) the number of individuals living
an outbreak, among others, are deemed necessary. in a house; (c) the number of individuals 60 years
Further, a national policy on the housing minimum of age and older living in houses less than 20 sqm;
standard space per person to effectively achieve and (d) the number of individuals 60 years of
physical distancing, including the number of rooms age and older living alone. A Local Government
per housing unit that would allow for possible areas Shelter Plan Management and Monitoring
for quarantine to avoid crowding, will be pursued System shall be established to ensure efficient
by DHSUD in coordination with POPCOM. delivery of housing, financing, and other housing/
In light of this, NGAs and LGUs will enforce shelter interventions to targeted beneficiaries. To
stricter compliance with building and design incentivize its formulation, an approved LSP will be
standards (i.e., safety, location, structural design, a requirement in DHSUD’s issuance of the BALAI
and integrity) by the developers, contractors, and seal of compliance. Specific health measures include
private homebuilders. Due diligence is essential on incorporating hazard and health standards in the
the part of NGAs and LGUs in terms of inspection CLUPs and zoning ordinances. Such measures are
of materials, construction progress monitoring, and aimed at reducing infectious and communicable
certification of project completion, to also ensure diseases and enhancing the well-being of the
satisfactory compliance with building and design population, especially those who face additional
standards. An inventory of housing units that do risks due to poverty (i.e., women, children, elderly,
not meet minimum design and health standards and other marginalized groups); prioritizing more
will be jointly pursued by DHSUD and DILG in open and green spaces and better walkability that
coordination with LGUs. allow for social distancing in CLUPs; and exploring
the inclusion of an open or public space, which may
Mainstream local shelter planning that integrates be used for isolation and/or quarantine or other
public health goals in the Comprehensive Land similar purposes, in the design of housing and
Use Plans (CLUPs) of cities and municipalities. resettlement packages.
As a tool to address its public housing provision,
the DHSUD shall institutionalize local shelter
planning through the Local Shelter Program (LSP)

214 | Updated Philippine Development Plan 2017-2022

Operationalize the National Resettlement Policy Bagong Pag-asa (BP2) program will be fully
Framework (NRPF). The DHSUD will fully implemented through complementary initiatives
implement the NRPF and ensure its integration while sustaining established community safety
in the local plans and programs on resettlement. and health standards. The program leverages
In the next two years, DHSUD will undertake both national and local government resources
information dissemination, consultations, and in ensuring inclusive and balanced urban and
subsequent issuances of policy resolutions towards rural development, promoting rural prosperity
the implementation of the framework in line with and complementing initiatives towards attaining
the localization efforts on the NUA. The NRPF resilient and sustainable communities. In the past,
will be promulgated with emphasis on livelihood the lack of coordination and clear policy guidance
restoration guided by a socioeconomic restoration among concerned agencies and LGUs hampered
framework. the prompt and sustained delivery of auxiliary
services such as school buildings, day care centers,
health centers, access roads, and livelihood support
Accelerating housing services. A BP2 Council was created by virtue of
production that incorporates Executive Order No. 114 to serve as the coordinating
body for implementation. As majority of families
hazard and health standards below the poverty threshold live in unplanned
communities or in high-risk and danger areas
To expand housing opportunities and help in the and their lack of financial resources diminishes
social and economic recovery from COVID-19, their capacity to recover from calamities, they
the government will accelerate housing production are the most vulnerable in times of natural and
following urban development and housing anthropogenic disasters. A resettlement emergency
framework and incorporating hazard and health assistance program (REAP) by the DHSUD will,
standards. likewise, be implemented to ensure that families
affected by unanticipated events are provided with
Implement the National Urban Development emergency financial assistance for the construction
and Housing Framework (NUDHF) 2017-2022. or rehabilitation of their houses.
With lessons from the past two decades, the recent  
iteration of the NUDHF provides a more cohesive Strictly monitor the implementation of risk-
framework with emphasis on making urban spaces based public health standards in housing and
greener and more inclusive. It recognizes the role urban development-related activities. As part of
of urbanization in creating more open, connected, the health protocols imposed by the government,
and collectively resilient communities. These will the DHSUD will monitor the strict implementation
be incorporated in Comprehensive Land Use Plans of the recently-issued Department Order No.
(CLUPs), Zoning Ordinances, Comprehensive 2020-005 dated May 14, 2020. The policy provides
Development Plans, and Local Shelter Plans which guidelines for all developers and other entities on
will guide urbanization that supports equitable the mandatory minimum requirements as well
growth and promotes uniquely Filipino cities as inspection and monitoring procedures in the
and municipalities. In the next two years, the commencement or resumption of their real estate
DHSUD will issue a Department Order or a Joint business, development and construction operations,
Memorandum Circular to mandate concerned and activities in areas covered by the community
national government agencies and LGUs to quarantine due to COVID-19. DHSUD and its
implement and monitor adherence to the NUDHF. attached corporations will also issue guidelines to
ensure service continuity in housing and auxiliary
Fully mainstream whole-of-government action services delivery during the pandemic.
in voluntary resettlement initiatives. To ensure
sustainability in the voluntary resettlement
initiatives of the government, the Balik Probinsya,

Chapter 12 Building Safe, Resilient, and Sustainable Communities | 215

Include production of safe, livable, and resilient Adopt viable land acquisition approaches. Land
housing in the COVID-19 recovery and resiliency banking, especially for urban socialized housing,
program. The activities of the housing sector are will be scaled up as government prioritizes in-city
recognized as an economic pump-primer because and near city approaches to resettlement. Likewise,
of the over 80 allied industries involved. Housing the use of the modalities of usufruct or long-term
activities also contribute to total employment, use of land will be expanded to enhance affordability
generating substantial direct employment with of socialized and low-cost housing programs due to
an average of 8.3 laborers for three weeks or 124 lower land development cost.
person-days per housing unit – an average of
approximately 5 percent of the country’s total
employment. Through continuous production of Adopting alternative housing
housing units, more employment opportunities are solutions for low-income
generated for laborers and other workers involved
in the housing industry. Given the economic and market
social contribution of housing, it is imperative that
the government elevate the human settlements To make housing more affordable for low-income
and urban development programs as part of the market, alternative housing solutions will be
COVID-19 recovery and resiliency plan and ensure adopted.
its continuous delivery of services.
Implement innovative housing finance
Implement unified seamless digitalized housing modalities. Recognizing the importance of
development transactions processing for housing microfinance as a pro-poor housing
homebuyers and developers. This shall include finance strategy with the potential to incorporate
review of procedures to streamline and digitalize climate and disaster resilience, the DHSUD will
the issuance of housing-related licenses, clearances, formulate institutional and policy reforms to
and permits in light of COVID-19. Housing One- accelerate housing microfinance as the primary
Stop Processing centers will be established in every pro-poor housing finance strategy. It will, likewise,
region to fast-track processing of housing-related identify potential products to provide credit that
permits, clearances, and licenses issued by the encourages disaster-resilient housing and support
national government agencies (NGAs) and LGUs. in post-disaster reconstruction of damaged housing.
The aim is to further streamline the 78 government- Alongside this, the implementation of the Tax
related transactions that take about 48 months, on Reform for Acceleration and Inclusion (TRAIN) Act
average, to be compliant with the Ease of Doing (RA 10963), which rationalizes the tax incentives
Business and Efficient Government Service Delivery system for socialized housing, will develop direct
Act of 2018 (RA 11032) and the Anti Red Tape Act subsidies through housing vouchers, public rental
(ARTA) of 2007 (RA 9485). housing, housing microfinance models, and Islamic
financing schemes. A feasibility study and pilot
Upscale high-density housing programs in highly implementation of the housing voucher and public
urbanized cities (HUCs). High-density housing rental housing modalities will be pursued by the
solutions such as low-rise (3-5 storeys), medium- DHSUD. Partnership with the private sector for
rise (6-10 storeys) and high-rise (above 10 storeys) incentivized compliance with the Balanced Housing
buildings to maximize housing production per unit provision under RA 7279 as amended by RA10884
of land especially in HUCs will be expanded. The to mobilize funds for public housing of LGUs as an
design of the structures should allow for several offshoot of the private developer’s compliance with
entry/exit points with adequate health and security these laws shall be continuously explored.
protection for its residents. The units should have
adequate ventilation and space per person.

216 | Updated Philippine Development Plan 2017-2022

Strengthen primary mortgage markets and Stakeholders Empowerment
develop more secondary ones. The current
efforts of Pag-IBIG under the Affordable Housing The DHSUD will empower stakeholders by
Program (AHP) have proven to be effective. institutionalizing community-led/driven
Lowering interest rates from 6 percent to 3 percent development of human settlements as a crosscutting
increased socialized housing loan take-outs from strategy to ensure sustainability of its program
low-income Pag-IBIG members. Sustaining the implementation. Specifically, the DHSUD and its
success of the Modified Pag-IBIG (MP2) program attached corporations will provide guidelines for
implementation is expected to expand Pag-IBIG’s the strict observance of safety standards and health
fiscal space to enable it to finance more loan take- protocols in the conduct of peoples’ planning and
outs and other loan services. On the other hand, to other community-led/participatory approaches in
accelerate the roll-over of housing funds to provide human settlements development. This is to aid in (a)
a sustainable source of financing, the secondary strengthening community cohesion; (b) improving
mortgage programs of National Home Mortgage community competencies for pre- and post-health
Finance Corporation (NHMFC) need to be further action activities, and other disaster-related activities;
strengthened and broadened to include housing- (c) upgrading community areas through site
related financial assets and not be limited to home development and provision of infrastructure (e.g.,
mortgages. In addition, marketing of NHMFC’s utilities, small roads/access roads, sewage systems);
programs need to be intensified. For instance, the and (d) capacitating community associations such
MAginhawang BUhay sa baHAY (MABUHAY) as homeowners associations (HOAs), housing
Program, a newly-introduced reverse mortgage cooperatives, and neighborhood associations on
program, needs to be widely promoted. MABUHAY estate management in a truly participatory and
allows senior citizens/retirees to convert a portion sustained manner.
of their home equity into cash in order to address
immediate financial needs.

Chapter 12 Building Safe, Resilient, and Sustainable Communities | 217

Legislative Agenda
To strengthen effectiveness of the strategies, the following legislative actions are needed:

Table 12.2 Legislative Agenda to Build Safe, Resilient, and Sustainable Communities

LEGISLATIVE AGENDA RATIONALE

Chapter Outcome: Safe, resilient, and sustainable communities built

This will establish a national land use framework that will define the indicative priorities for land
Passage of the National Land Use Act
utilization and allocation across residential, infrastructure, agricultural, and protective uses and
(NaLUA)
integrate efforts, monitor developments related to land use, and evolve policies, regulations and
directions of land use planning processes.

The proposed amendments will strengthen and broaden NHMFC’s mandate to include the
development of a secondary mortgage market for housing-related financial instruments/assets
Amendments to the NHMFC Charter
and issuance of housing related asset-backed securities as well as invest in housing-related
financial instruments and other investment vehicles.

This will provide for mandatory creation of Local Housing Boards in every city and first to third
class municipality to ensure full cascading of the government housing policies and programs to
Institutionalization of Local Housing Boards
the local government; and ensure the sustained implementation of national and local housing
programs.

The proposed measure will renew the NHA Charter and strengthen its organizational structure
Strengthened NHA Act
and functions.

218 | Updated Philippine Development Plan 2017-2022

PART IV

INCREASING
GROWTHPOTENTIAL
(“PATULOY NA
PAG-UNLAD”)
13
Reaching for
the Demographic
Dividend Across
All Regions
CHAPTER 13

Reaching for the Demographic

Dividend Across All Regions
The Philippines has made modest gains in facilitating the demographic transition, specifically
in reducing infant and under-five child mortality and women’s fertility rates. Key policies and
programs have been instituted and strengthened to improve access to adolescent sexual
and reproductive health. Legal impediments to the full implementation of the Responsible
Parenthood and Reproductive Health (RPRH) Law have also been addressed along with
intensified efforts to meet the demand for family planning services.

In preparing the country’s human capital towards harnessing the demographic dividend, major
reforms to improve the delivery of nutrition and health services, and transformative education
have been put in place in the past three years. However, the socioeconomic impact of the
COVID-19 pandemic can reverse these gains. Moving forward, the government will implement
programs that will mitigate the pandemic’s short and long-term effects while continuing to
address persistent issues on malnutrition, access to health services, and quality of graduates
for employment. These will allow the country to still reach the demographic dividend whilst
building a healthy and resilient Philippines.

Assessment and Challenges

Assessment: The elements necessary for planning and programming was strengthened
accelerating the demographic transition are already through the provision of capacity building
being realized. Mortality rates among infants and among local chief executives and planners on the
under-five children are decreasing. Improved collection of data and conduct of censuses that
access to modern contraception has also can serve as inputs to local policy and program
decreased fertility rates. These can be attributed formulation. Reforms and investments for
to policies and programs that aim to accelerate improving the quality of human capital to harness
the demographic transition along with the the demographic dividend were also prioritized
improved access to health and education services (e.g., Kalusugan at Nutrisyon ng Mag-Nanay Act,
(e.g., Kalusugan at Nutrisyon ng Mag-Nanay First 1,000 Days Act, Universal Health Care [UHC]
Act, RPRH Law, Zero Unmet Need for Family Act, and Universal Access to Quality Tertiary
Planning [Executive Order 12, s. 2017], and the Education Act). The disruptions in health and
National Program on Population and Family education services amidst the COVID-19
Planning [NPPFP]). Integration of population and pandemic pose a threat to these gains and could
development in national and local development worsen lagging indicators and outcomes.

Chapter 13 Reaching for the Demographic Dividend Across All Regions | 223
Challenges: Regional disparities remain in terms of have led to an increase in maternal mortality and
reaping the demographic dividend due to uneven increased birth rates, including adolescent or early
economic development and access to social services. pregnancies.1 Closure of schools also highlighted
There is persistent high incidence of adolescent the need to set up and adopt new technologies
pregnancy, inadequate access to family planning and modalities in delivering education services.
commodities and services, and poor nutrition In addition, record-high unemployment and
outcomes as indicated by continued high levels of underemployment rates due to the pandemic will
stunting and wasting among infants and under-five directly affect the attainment of the demographic
children. The COVID-19 pandemic has adversely dividend. The COVID-19 crisis also exposed gaps
affected every aspect of society, which could in population and demographic databases at the
exacerbate these issues, reverse the gains achieved, national and local level that would have facilitated
and necessitate adjustments to cope with the new the identification of target beneficiaries for
normal. During the implementation of nationwide government support and for integrating population
community quarantine, sexual and reproductive and development initiatives in the country.
health services became inaccessible, which could

Targets
The following table contains the updated plan targets in accelerating the demographic transition and
maximizing the dividend. Some of these indicators are part of other Philippine Development Plan (PDP)
2017-2022 chapters but are also reflected here given their relevance.

Table 13.1 Updated Plan Targets to Reach for the Demographic Dividend

BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

57.4
Age-dependency ratio decreased Decreasing Decreasing Decreasing Decreasing
(2016)

Sector Outcome 1: Demographic transition accelerated

5.6
Crude death rate (per 1,000 population) reduced Decreasing Decreasing Decreasing Decreasing
(2016)

95
Maternal mortality ratio (per 100,000 live births) decreased ** ** 108.0 108.0 2
(2016)

31.0
Under-five mortality rate (per 1,000 live births) decreased ** ** 22.0 22.0
(2013)

Adolescent birth rate (aged 15-19 years) decreased 57.1

** ** 37.0 37.0
(number of births per 1,000 women in that age group) (2013)

1
The Department of Health (DOH) projected that the inaccessibility to sexual and reproductive health services can lead to between 47,000 to
253,000 additional unintended pregnancies and around 11,200 to 59,700 additional unsafe abortions for 2020. For adolescent pregnancies there
might be a projected increase in incidence by 6.3 percent or about 5,000 more adolescents who will become mothers (United Nations Population
Fund).
2
The COVID-19 pandemic is assumed to have an impact on the access of women to essential sexual and reproductive health services – that may
lead to an increase in deaths in 2020. Recalibration of the MMR target for 2022 is viewed to ensure the attainment of the country’s 2030 SDG
MMR target of 70 per 100,000 livebirths.

224 | Updated Philippine Development Plan 2017-2022

 BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

Proportion of women who are using modern contraceptive methods increased (%)

23.5
All reproductive age women (15-49 years old) 28.0 29.0 30.0 30.0
(2013)

All reproductive age women (15-49 years old) 37.6

** 62.0 65.0 65.0
who are currently married or in union (2013)

Proportion of currently married women of reproductive

35.0
age (15-49 years old) who have unmet need for ** ** 5.0 5.0
(2013)
modern family planning (%) decreased*

Sector Outcome 2: Gains from the demographic dividend maximized

Life expectancy at birth increased (years)

69.63
Male ** ** 71.3 71.3
(2015-2020)

75.91
Female ** ** 77.5 77.5
(2015-2020)

Prevalence of stunting among children 33.4

** 29.8 28.0 28.0
under five decreased (%) (2015)

10
Mean years of schooling increased N/A N/A 11.3 11.3
(2018)

Proportion on learners achieving at nearly proficient in National Achievement Test increased (%)

16.0
Grade 6 26.0 34.0 44.0 44.0
(2018)

34.0
Grade 10 43.0 52.0 61.0 61.0
(2018)

14
Grade 12 13.0 19.0 28.0 28.0
(2018)

Proportion of learners completing levels of education (Completion Rate) increased (%)

97.0
Kinder to Grade 6 97.0 97.0 98.0 98.0
(2019)

77.0
Grade 7 to 12 82.0 83.0 84.0 84.0
(2019)

Female Drop-out Rate (School leaver) decreased (%)

4.43
Junior High Decreasing Decreasing Decreasing Decreasing
(2016)

2.89
Senior High Decreasing Decreasing Decreasing Decreasing
(2018)

Chapter 13 Reaching for the Demographic Dividend Across All Regions | 225
 BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

Certification rate of TVET graduates 91.3

86.0 92.0 92.0 92.0
(15-24 years old) increased (%) (2016)

23.0
Percentage of youth NEET decreased (%) 17.5-19.5 18.0 – 20.0 17.0 – 19.0 17.0 – 19.0
(2015)

50.1
Labor force participation rate of women increased (%) 50.5 48.0 – 50.0 48.5 – 50.5 48.5 – 50.5
(2015)

*
Computed as unmet need for modern family planning plus traditional contraceptive use.
**
Responsible Agency (e.g. DOH, POPCOM, and DepEd) did not provide annual targets for these indicators as data are not
available for these years.

Strategic Framework
Figure 13.1 Strategic Framework to Reach for the Demographic Dividend

226 | Updated Philippine Development Plan 2017-2022

Strategies
With key reforms and policies instituted, full Achieving wanted fertility rates
and intensified implementation of strategic
interventions will be pursued to enable all regions Population management and reproductive health
to reach the demographic dividend. The focus policies and programs will be strengthened to
will be on reducing adolescent pregnancy and assist couples and individuals achieve their
addressing unmet demand for family planning desired number of children (wanted fertility rate)
among couples and individuals. Efforts to prepare within the context of responsible parenthood and
the country’s human capital will likewise be informed choice. These include the intensified
sustained along with supportive strategies for implementation of the NPPFP, which involves
improving savings build-up and ensuring the collaborative management between the DOH and
integration of population and demographic factors the POPCOM and coordinated efforts among
in development planning and programming. partner government agencies (e.g., Department of
Specific strategies and programs will be fast- Education, Department of the Interior and Local
tracked and prioritized in regions that have Government, etc.). Strengthened participation
yet to experience the demographic transition of local government units (LGUs) and expanded
necessary for achieving the demographic dividend. partnerships with civil society organizations
(CSOs) will be pursued. Development partners
and the private sector will also be engaged
Accelerating demographic to allow for effective and efficient delivery of
transition across regions quality reproductive health and family planning
commodities and services.

Reducing mortality rates The following are the specific strategies to achieve
wanted fertility rates:
Universal healthcare will be pursued with the
implementation of the UHC Act to maintain the Intensify demand generation and advocacy
downward trend in mortality rates, particularly activities. A nationwide age-group-focused
among neonates, infants, and under-five multimedia campaign will be pursued by the
children. This will be complemented by the DOH and POPCOM to raise the level of awareness
provision of appropriate nutrition and health and knowledge on the importance and benefits of
services for the first 1,000 days of life which family planning – from a health intervention to a
includes appropriate care for mothers during means to improve family outcomes. This entails
pregnancy, labor, and childbirth; essential care the development of a comprehensive and inclusive
for the newborn; optimal infant and young child health promotion and communication plan for
care and nutrition; immunization; and vitamin family planning. Market-segmented demand-
supplementation for children, among others. As generation strategies at the national and subnational
mandated by the UHC Act, local health systems levels will be implemented, including hospital-,
will be strengthened, specifically the primary facility-, and community-based activities, in
care provider networks. There will be improved coordination with LGUs. To further widen the reach
integration of province- and city-wide health of these activities while adhering to new normal
systems and networks under the stewardship protocols, interactive forms of communication
of the provincial and city health boards, which (e.g., telephone hotlines and online platforms)
will manage the special health fund. Adequate will be employed to provide adolescent sexual and
local investment to improve access to quality reproductive health information and counseling.
health services and resilience to any threats and Adolescent sexual and reproductive health and
health emergencies will also be provided. family planning (RP/FP) information will likewise

Chapter 13 Reaching for the Demographic Dividend Across All Regions | 227
be continuously incorporated in relevant programs Provide appropriate and innovative services,
and activities such as pre-marriage orientation and including family planning, sexual, and
counseling, Pantawid Pamilyang Pilipino Program reproductive health for adolescents and the youth.
Family Development Sessions, and other programs The high incidence of adolescent pregnancy in the
for employees or RP/FP in the workplace conducted country is a major concern that affects the country’s
by the Department of Labor and Employment population growth and human capital development
and Civil Service Commission, among others. (e.g., poor health condition and nutritional
status for mothers and infants, poor education
Strengthen provision of family planning services, outcomes, etc.). Hence, to prevent unplanned
adolescent sexual and reproductive health repeat pregnancies, age-appropriate adolescent
commodities and services. To match the demand sexual and reproductive health services, including
for family planning and reproductive health family planning, will be provided to sexually active
services, accessibility and availability of adolescents and those who have already given birth.
commodities and services will be expanded. Social determinants of adolescent pregnancy will
Priority will be in areas and populations with be given attention by identifying and addressing
high unmet demand for such commodities and contextual factors that influence early coitus and
services. Appropriate health personnel and pregnancy. The focus will be on ensuring the full
facilities within a functioning healthcare provider implementation of the Comprehensive Sexual
network to provide services will be made available Education (CSE) in line with the RPRH Law. This
to all. Family planning logistics management will includes the provision of appropriate learning
also be strengthened in all public service delivery materials and modules, continuous capacity
points through interoperable commodities building of adult partners (i.e., teachers, parents/
tracking system across national and local guardians, and CSOs), and the creation of a CSE
facilities. In times of emergencies and other parent education module to be introduced in Parent-
disasters, the Minimum Initial Service Package Teacher Association meetings. Adolescent-friendly
(MISP)3 for sexual and reproductive health health service packages will also be developed to
services will be provided. Postpartum family address the age group’s unique needs in terms of
planning and family planning outreach missions correct information and access to adolescent sexual
and counseling services will be intensified. and reproductive health services, including HIV.
These activities will be implemented along with
The participation of LGUs, specifically those with the establishment and sustainability of teen centers
high incidence of unplanned pregnancies, is key and adolescent-friendly facilities or spaces in LGUs
in the implementation of these strategies. As and schools, and developmental activities for the
such, there will be continued capacity building youth (e.g., sports, socialization, volunteerism,
of local stakeholders specifically for local chief etc.). These will be recalibrated and temporarily
executives, local health officers, and local health moved online during the COVID-19 pandemic.
service providers. Community volunteers, local Innovative and interactive forms of communication
government health workers, and private sector strategies to reach the youth will also be employed,
providers will be capacitated in delivering family such as the use of social media and other online
planning and reproductive health services (i.e., media platforms, cellphone applications, and call or
Family Planning Competency-Based Training for text hotlines. Youth-oriented TV and other media
health providers). Local chief executives will also be programs will be developed to reach the youth
provided with leadership and governance capability and encourage them to make productive use of
building programs for health that can improve local their time. To this end, coordinated efforts among
health systems and make them more responsive to concerned government agencies will be pursued,
the health needs of their constituency. including the mobilization of and capacity building

3
The MISP covers services for safe motherhood, family planning, STIs and HIV/AIDS, and gender-based violence per DOH Administrative Order
2016-0005.

228 | Updated Philippine Development Plan 2017-2022

for the Sangguniang Kabataan (youth council) to Law and the introduction of innovative measures
promote adolescent sexual and reproductive health to make it more resilient and accessible. These
and youth development programs among their measures include wider use of telehealth and
constituency. improvement of epidemiological and surveillance
capacities to respond to disasters and pandemics
(see Chapter 10).
Maximizing gains from
the demographic dividend A healthy and well-nourished population is not
enough to drive productivity – there is also a need
in all regions to cultivate an educated and competitive labor
force. A key strategy will be strengthening early
Optimizing the increasing labor force for more childhood care and development programs in
productive economic output requires quality line with the Global Nurturing Care Framework
human resources. Thus, it entails the improvement through early stimulation and early intervention
of health and nutrition, education, and total from birth to three years old to prepare them for
well-being of the human capital. Labor force basic education. Basic education programs will
participation and employment opportunities in be inclusive for vulnerable groups and those
all regions will be enhanced, focusing on the youth not covered by formal education through the
and women, towards countryside development. Alternative Learning System. Activities such as
Savings rates among households will be increased the updating of higher education curriculum
through expanded access to financial products. and the development of new programs (e.g.,
Finally, to ensure that the demographic transition data science, nanotechnology, machine learning,
will be planned for, there will be continuous green/renewable energy engineering, etc.) will be
integration of population and development, along initiated to increase responsiveness to the demands
with health and environment aspects, in the of the Fourth Industrial Revolution. The use of
development planning and programming at the flexible learning options 4 will be expanded and
national and local levels. institutionalized to reach more Filipino learners
and to reduce contact and COVID-19 transmission
(see Chapter 10).
Improving quality of human capital

Intensify health programs and widen access Increasing youth and female
to education. To improve the quality of human labor force participation
capital, the two-fold strategy of enhancing health,
nutrition, and education outcomes needs to be There are already potentials for growth following
sustained. For health and nutrition outcomes, the the possible demographic transition but these
focus will be on providing maternal, newborn, may be irrelevant if the population seeking
and child health services, and school and employment cannot be productively employed.5
community nutrition programs. Health and Therefore, the following strategies will be pursued:
nutrition interventions for mothers, infants, and
young children will be expanded in line with Create more jobs and economic opportunities
the implementation of the First 1,000 Days Law. for the youth and women. As the working-age
Reforms in the country’s healthcare system will population is expected to increase, especially
be pursued with the implementation of the UHC the youngest group, they will be capacitated

4
Flexible learning options include open distance learning, blended learning, homeschooling, television- and radio-based instruction, and satellites
for off-grid areas.
5
Abrigo, Michael R.M, et al. “Are We Missing Out on the Demographic Dividend? Trends and Prospects.” Philippine Institute for Development
Studies Discussion Paper Series, no. 43, ser. 2018, Dec. 2018. (Source: www.pids.gov.ph/publications/6756 )

Chapter 13 Reaching for the Demographic Dividend Across All Regions | 229
and provided access to productive employment. Improving savings build-up
To ease the youth’s transition from school to
work – internships, apprenticeships, and dual- The government will provide effective access to a
training programs will be strengthened and wide range of financial products and services for
expanded. Stronger government-industry- all. These include the provision of products and
academe linkage will be forged and sustained to services that will support savings build-up through
achieve these. Employment facilitation for this access to savings, checking, and current accounts,
age cohort will also be improved by providing pensions, and youth micro-deposits.6 Widespread
assistance such as coaching, career advocacy, adoption of these formal financial services will be
and counseling. These will be offered through pushed through the use of digital payments that
online platforms to make it accessible during will make transaction accounts relevant, valuable,
the pandemic. Promoting the use of existing labor and inclusive. This will be complemented by
market programs including technology-based consumer empowerment through digital financial
mechanisms such as the PhilJobNet can also help literacy, among others. During the pandemic,
in their employment. Upon employment, their online courses, webinars, and e-conferences will
productivity can be further improved by building be employed to improve the population’s economic
and strengthening employee and enterprise and financial literacy (see Chapter 15).
capacities. Health and safety in the workplace will
also be promoted by crafting support mechanisms
Improving population and development
to address psychosocial risks and work-related
integration and youth participation
stress, and providing reproductive health and
modern family planning services to workers
Integration of population factors in development
(see Chapter 10).
initiatives, planning, and programming will be
pursued through various channels – specifically
Aside from the youth, specific focus will also be
in localizing and teaching population and
given to women’s participation and retention
development concepts (including the demographic
in the labor force, which is only 47.6 percent
dividend) to local chief executives. There will
of all women of working age in 2019. Female
be continuous interagency collaboration for
labor force participation will be increased by
synergized implementation of key strategies
intensifying monitoring and ensuring compliance
identified in the PDP 2017-2022 towards achieving
of corporations to laws, policies, and programs
the demographic dividend. Various support
that foster women’s participation and retention
such as the provision of capacity building and
in the workforce (e.g., Expanded Maternity Leave
mentoring will also be extended to national
Act and the Family Welfare Program). Women’s
government agencies and LGUs in integrating
access to formal employment opportunities will
population and development in their sectoral and
also be advanced, including entrepreneurship
local development plans. Sustainable development
through e-commerce. Flexible work arrangements
will be pursued through an integrated population,
such as compressed workweek and alternative
health and nutrition, and environment approach
worksites will likewise be explored. There will also
in carrying out initiatives for reaping the
be a continuous push for affordable and accessible
demographic dividend (see Chapter 20).
childcare support mechanisms like daycare
and child-minding facilities and services (see
New methods of collecting population data
Chapter 10).
in the LGUs will be identified and sustained.
For example, a harmonized and interoperable
Local Migration and Information System will
be institutionalized, maintained, and utilized

6
National Strategy for Financial Inclusion

230 | Updated Philippine Development Plan 2017-2022

for planning and programming, especially in men and women of reproductive age. The health
urban areas. LGUs will also be supported in aspect involves provision of quality health services,
the collection of population and development- child health and nutrition, water, and sanitation;
related data through the Community-Based while the Environment component promotes
Monitoring System 7 and other local data collection protected areas and biodiversity conservation
mechanisms. These mechanisms will provide through watershed management, natural resource
local-level data that will guide the implementation management, and sustainable agriculture.
of national programs targeted at developing LGUs Integrated PHE projects implemented in the
(e.g., Balik Probinsya, Bagong Pag-asa Program). past proved to be cost-effective, high impact, and
These will also allow the LGUs to facilitate the have contributed to sustainable development.8
formulation of more effective and targeted local
plans, policies, and programs, and adequately As the country moves towards a transition that
respond to shocks and disasters, such as pandemics. will be characterized by a “youth bulge,” data will
be made available and accessible for crafting the
Policies and programs that will drive countryside most relevant, appropriate, and effective policies
development will be pursued to allow all regions and programs for this age group. Their active,
to maximize the gains from the demographic meaningful, and holistic participation in society
dividend. The Balik Probinsya Bagong Pag-asa will also be strengthened by involving them in
Program will be implemented to promote balanced the conceptualization and implementation of
urban and regional development. It aims to programs and policies across the following sectors:
incentivize reverse migration such that people health, education, economic empowerment, social
from megacities will move back to the rural areas inclusion and equity, peace-building and security,
(see Chapter 3). To ensure that these areas will governance, citizenship, environment, and global
complete the demographic transition and maximize mobility. 9 Young people represent a valuable
the possible dividends, the necessary social resource and network during crises and public
services, livelihood opportunities, market and health emergencies. With the right information
value chain development, and human resource and training, they can be mobilized to assist in
development will be set in place. These changes government response – in the case of pandemics, to
along with new resource needs will be reflected in help break the chain of infection.10
the participating LGUs’ local development plans.

The integrated Population-Health-Environment

(PHE) approach in community projects will be
promoted and supported during the pandemic,
when a lot of Filipinos have lost their jobs
and most are returning to their places of
origin. The PHE is an integrated approach in
community development that acknowledges
the connections between families, their health,
and the environment. The Population component
focuses on giving access to reproductive health
and family planning information and services to

7
Per the Community-Based Monitoring System Act of 2018 (RA 11315).
8
Population Action International. ”Integrated Population, Health and Environment (PHE) More than the Sum of its part. (Source: https://pai.org/
wp-content/uploads/2014/02/PHEintegration.pdf )
9
Philippine Youth Development Plan 2017-2022.
10
Adolescents and Young People & Coronavirus Disease (COVID-19), Coronavirus Disease (COVID-19) Preparedness and Response UNFPA
Interim Technical Brief, 2020.

Chapter 13 Reaching for the Demographic Dividend Across All Regions | 231
Legislative Agenda
Table 13.2 Legislative Agenda to Reach for the Demographic Dividend

LEGISLATIVE AGENDA RATIONALE

Institutionalization of Local This will provide for the establishment and operation of population offices to allow for the effective
Population and Development Policy implementation of population management strategies and measures at the local level.

This will facilitate the development of a National Program of Action and Investment Plan for the prevention
of teenage pregnancy. The program of action will serve as a national framework for interagency and inter-
Prevention of Adolescent Pregnancy sectoral collaboration at all levels to address the various health, cultural, socioeconomic, and institutional
determinants of teenage pregnancy. The policy may be issued in the form of either an Executive Order or a
Republic Act.

232 | Updated Philippine Development Plan 2017-2022

14
Vigorously
Advancing
Science,
Technology, and
Innovation
 CHAPTER 14

Vigorously Advancing Science,

Technology, and Innovation
The Science, Technology, and Innovation (STI) sector has already been faced with issues
that have prevented it from reaching its full potential even before the COVID-19 pandemic.
Nonetheless, several reforms to drive the STI sector towards greater advancement were
instituted as a result of the increased collaboration of STI stakeholders. Among these are the
Philippine Innovation Act, Philippine Startup Act, Philippine Space Act, and the Balik Scientist
Act.

With the emergence of COVID-19, there is a need to advance STI that contributes to the
attainment of a healthy and resilient Philippines. This will include the rollout of technologies
that will help address the pandemic. Moreover, the procurement process of STI programs,
projects, and activities (PPAs) will be reviewed and refined for timely implementation and
greater impact. Various government support services for startups and micro, small, and
medium enterprises (MSMEs) will also be ramped up to help them become more innovative
and resilient in times of crisis. The establishment of the National Innovation Council, which is
seen to guide the country towards long-term STI development, will also be fast-tracked.

Assessment and Challenges

Assessment. The linkages among the players in long processing time of IPs, among others. Other
the STI ecosystem remain limited despite some challenges include inadequate research and
significant strengthening of collaboration among development (R&D) infrastructure especially
the government, academe, and industry in the in the regions and slow implementation of STI
past year. Furthermore, the problem of slow projects, due to procurement concerns and complex
commercialization of outputs of STI activities and administrative requirements.
its underutilization persist. This may be partly due The country also continued to underinvest in R&D1
to the absence of a vibrant intellectual property (IP) and there is also low level of awareness on the results
culture brought about by issues in IP ownership, of R&D activities and the government’s support
lack of a legally-sanctioned payment mechanism mechanisms to help firms become more innovative.
for financial contributions and familiarity on Information dissemination campaigns, particularly
legal mechanisms, costly development of IPs, on available technologies, remain inadequate and

1
  Based on the latest available data from the DOST - Planning and Evaluation Service (as of January 2019), the Philippines’ overall R&D
expenditure slightly grew to 0.16 percent of Gross Domestic Product (GDP) in 2015 from 0.14 percent in 2013. However, this still reflects low
R&D expenditure relative to the country’s ASEAN peers. This is also way below the 1 percent R&D spending share to GDP benchmark for
developing countries recommended by the United Nations Educational, Scientific, and Cultural Organization (UNESCO).

Chapter 14 Vigorously Advancing Science, Technology, and Innovation | 235

fragmented.2 With these, many sectors still do based methods and solutions will be needed more
not recognize, appreciate, and understand the use than ever in the new normal to curtail, mitigate,
of technology and science-based information in and respond to emerging challenges and potential
their daily activities, which is exacerbated by the catastrophes whether man-made or natural. The
dwindling interest in science among the youth, health sector, in particular, will be among the major
inaccessible scientific information, and the lack of gainers in this advancement of the sciences in the
a conducive environment to develop an STI culture. country.

Based on the World Economic Forum (WEF) There will be increased interest in using advances
Readiness for the Future of Production Report in biology and medical science in the new normal.
2018, the Philippines is not yet prepared to Similar to the development of COVID-19 testing
manage the Fourth Industrial Revolution (FIRe) kits by local scientists, there will be greater efforts
as manifested in its weak performance across the to find ways to manage pandemic situations via
drivers of production, which include technology STI. Among these are means by which mass
and innovation, human capital, global trade and testing can be facilitated, including the design and
investment, institutional framework, sustainable manufacture of medical equipment that can aid in
resources, and demand environment, among the treatment of patients such as ventilators, among
others.3 For instance, the number of the country’s others. Moreover, the demand for health-related
researchers for every one million population technologies (i.e., sanitation booths, contact-tracing
declined to 200 in 2015 from 270 in 2013. This applications, and other researches related to the
is also lower than the UNESCO norm of 380 per treatment or response to the pandemic) is seen to
million population and the East Asia and the increase. As companies, schools, and government
Pacific average of 1,020 researchers per million agencies implement work from home arrangements,
population. On monitoring the performance of the use of digital technology will rise significantly.
the STI ecosystem, the existing data on STI are still In addition, online business transactions and digital
not enough to keep track and monitor the sector’s payments will increasingly become a necessity rather
progress and performance. than convenience. All these need to be supported by
a reliable digital infrastructure system with strong
Challenges. The adverse spillovers of the prolonged cybersecurity protection. In the production sector,
pandemic to the economic sector could bring there will be increased demand for automation and
about a reduction of available resources for STI digitalization to supplement manual labor in the
since the government will now be more focused on immediate term. Over the medium term, automated
addressing the most immediate concerns. However, and digitalized processes may substitute for labor.
this is also the opportune time to further strengthen
and provide more resources to STI as science-

2
  del Prado F. and Rosellon M. (2017). “Technology and Knowledge Transfers in Production Networks: Case Study on Philippine Food
Manufacturing Firms”. Philippine Institute of Development Studies.
3
  As the study defined, “production” involves a broad spectrum of economic activities related to manufacturing products and goods. A full end-to-
end appraisal of what it entails reveals the following sequence: Design-Source-Manufacture-Assemble-Distribute-Service-End of use-cycle. On the
other hand, “readiness” is generally regarded as the ability to capitalize on future production opportunities, mitigate risks and challenges, and be
resilient and agile in responding to unknown future shocks.

236 | Updated Philippine Development Plan 2017-2022

Targets
Table 14.1 shows the indicators and medium- generation, acquisition, and adoption will be gauged
term targets for each major outcome under this based on the country’s WIPO - Knowledge and
chapter. However, these indicators are limited only Technology Outputs percentile rank of the country,
to those that have available data. The increase in R&D expenditure as a proportion of GDP, number
STI application in agriculture, industry, services, of researchers, scientists, and engineers (RSEs) per
and health sectors will be measured based on the million population, number of Science, Technology,
increase in the expenditure and in the number Engineering, and Mathematics (STEM) enrollees
of intellectual property products that have and graduates in higher education institutes
been registered and filed. In the same way, the (HEIs) and the number of Balik Scientists engaged.
investments in STI-based startups, enterprises, Likewise, the strength of the open collaboration
and spin-offs will be assessed based on the World among actors in the STI ecosystem will be
Intellectual Property Organization (WIPO) - determined based on the WIPO University-Industry
Investment Index percentile rank of the country Collaboration percentile rank and the number of
and the number of technology business incubators collaborations among the HEIs, industries, and the
(TBI) graduates and innovation hubs (e.g., TBIs, government.
innovation centers, niche centers, etc.) established.
The creative capacity for knowledge and technology

Table 14.1 Updated Plan Targets to Vigorously Advance Science, Technology, and Innovation

BASELINE VALUE TARGETS

INDICATOR
(YEAR) 2020 2021 2022 EOP

Sector Outcome 1: Scale-up technology adoption

Subsector Outcome: Increased STI application in agriculture, industry, services, and health sectors

Proportion of intellectual property products expenditures 0.5

Increasing Increasing Increasing Increasing
to GDP increased (%) b/ (2016)*

Number of Filipino patents granted increased 31

38** 30*** 38*** 38***
(incremental) a/ (2016)

Number of Filipino utility models registered increased 555

727** 584*** 750*** 750***
(incremental) a/ (2016)

Number of Filipino industrial designs registered 516

627** 494*** 622*** 622***
increased (incremental) a/ (2016)

284
Number of Filipino patents filed increased b/ 348** 353*** 394*** 394***
(2017)

1,325
Number of Filipino utility models filed increased b/ 1,862** 1,380*** 1,848*** 1,848***
(2017)

875
Number of Filipino industrial designs filed increased b/ 910** 675*** 873*** 873***
(2018)

Number of Filipino patents filed under Patent 2

3 3 4 4
Cooperation Treaty (PCT) increased b/ (2018)

Chapter 14 Vigorously Advancing Science, Technology, and Innovation | 237

 BASELINE VALUE TARGETS
INDICATOR
(YEAR) 2020 2021 2022 EOP

Subsector Outcome: Increased investments in STI-based startups, enterprises, and spin-offs

Global Innovation Index (GII) – Investment Index 17

22 24 25 25
percentile rank improved d/ (2016)

Number of TBI graduates increased (i.e., enterprises and 41

Increasing** 230*** 270*** 1,000***
spin-offs) a/ (2016)

Number of innovation hubs increased (e.g., TBIs, 41

63 108*** 128*** 128***
innovation centers, niche centers, etc.) (incremental) a/ (2016)

Sector Outcome 2: Accelerate Innovation

Subsector Outcome: Enhanced creative capacity for knowledge and technology generation, acquisition, and adoption

Top 58%
Overall Global Innovation Index (GII) rank improved c/ Top 38%** Top 35% Top 33% Top 33%
(2016)

GII - Knowledge and Technology Outputs percentile 66

Top 33% Top 33% Top 33% Top 33%
rank improved d/ (2016)

R&D expenditure as a proportion of GDP increased 0.16

0.35 0.40 0.50 0.50
(in percent, incremental) a/ (2015)*

Number of RSEs per million population Increased 200

290 295 300 300
(incremental) a/ (2015)*

Number of STEM enrollees in HEIs increased 1.29

1.7 1.59 2.03 2.03
(in million, incremental) a/ (AY 2015-2016)

1.29
Number of STEM graduates in HEIs increased a/ 50,000 113,000 318,000 318,000
(AY 2015-2016)

Number of Balik Scientists engaged increased 1.29

46** 101*** 151*** 151***
(incremental) a/ (AY 2015-2016)

Subsector Outcome: Strengthened open collaboration among actors in the STI ecosystem

GII University-Industry Collaboration percentile 52.5

Top 49% Top 49% Top 49% Top 49%
rank improved d/ (2016)

Number of collaborations between HEIs and industries 70

120 130 150 150
increased (incremental) a/ (2014)

Number of collaborations between HEIs and government 300

450 480 500 500
increased (NGAs and LGUs) (incremental) a/ (2015)

Number of STI-related international cooperations of HEIs 40

80 95*** 100 100
increased (incremental) a/ (2015)

a/ original indicators set/approved in 2016 (https://www.neda.gov.ph/pdp-results-matrices/2017-2022/).

b/ indicators set/approved before the pandemic (abridged version as of March 2020)
c/ new indicators set/approved after the March 2020 version
d/ original indicators set/approved in 2016 but with the terms corrected
* Revision in baseline data
**2020 original targets set/approved in 2016/prior to the pandemic retained
*** Revisions in targets for the remaining years of the Plan period

238 | Updated Philippine Development Plan 2017-2022

Strategic Framework
Many of the strategies under this Chapter were new normal. To scale-up technology adoption, STI
refined to address the problems posed by the application in the agriculture, industry, services,
pandemic and also considered the existing and and health sectors, as well as investments in STI-
anticipated problems of the STI sector. As such, based startups, enterprises and spin-offs, will be
STI is deemed to contribute to the achievement increased. These applications primarily cut across
of the overall PDP goal of “Healthy and Resilient PDP Chapters 8, 9, and 10. To accelerate innovation,
Philippines” by increasing the country’s growth the creative capacity for knowledge and technology
potential. This will be done by scaling-up generation, acquisition, and adoption will be
technology adoption and accelerating innovation to enhanced, and open collaboration among actors in
address the potential challenges ushered in by the the STI ecosystem will be strengthened.

Figure 14.1 Strategic Framework to Vigorously Advance Science, Technology, and Innovation

Chapter 14 Vigorously Advancing Science, Technology, and Innovation | 239

Strategies
Scaling-up technology Chamber of Commerce and Industry), SUCs and
HEIs offering business/entrepreneurial courses,
adoption offices of LGUs (e.g., city/barangay halls issuing
business permits/licenses), and others, as venues to
Increasing STI application in agriculture, introduce research outputs of the government and
industry, services, and health sectors the academe that are ready for adoption as well as
the different support services of the government to
Promote commercialization and utilization of startups and MSMEs to help them become more
technologies from publicly-funded R&D. innovative.

Intensify the rollout of available technologies that Formulate public procurement guidelines for
can be used during pandemic, state of calamities, STI PPAs consistent with the Government
emergencies, and the transition to the new normal. Procurement Reform Act (RA 9184). The National
The government will conduct an inventory for Innovation Council (NIC), in coordination with the
possible scale-up, promotion, and dissemination, Government Procurement Policy Board (GPPB),
of available technologies (e.g., technologies for will review and identify the problems in the current
prolonged food shelf-life, possible alternative procurement process for STI PPAs and suggest
materials for personal protective equipment, solutions on how to resolve these constraints. This
e-vehicles, renewable energy technologies, will entail the issuance of procurement guidelines
digital technologies, information-sharing mobile consistent with RA 9184 that will ensure efficiency,
applications and portals, IT facilities, telemedicine transparency, timeliness, and relevance in the
technologies, COVID-19 tracking and monitoring procurement process for STI PPAs (e.g., creation
technologies, contract tracing report system, and of special/separate procurement process for certain
disease spread modeling technologies, among STI projects). This strategy will be prioritized and
others). Shared service facilities and other existing implemented with urgency in light of the current
STI support infrastructure will be utilized for pandemic and possible occurrences of disasters,
mass production. Moreover, the government will epidemics, and other emergencies.
incentivize, subsidize, and support researchers and  
research institutions that will engage in R&D related Operationalize the Filipinnovation Portal.4 The
to development of test kits, medical equipment, government will fast-track the establishment of
vaccines (e.g., COVID-19 vaccine), medicine, and the Filipinnovation portal which will serve as a
others. repository of government and academic research
and innovation outputs. These research outputs in
Utilize innovation hubs, business support the portal will be segregated by sector/areas (e.g.,
mechanisms, state universities and colleges (SUCs), farming, fisheries, industrial applications, energy,
private HEIs, and LGUs to promote technologies services, health, construction, food production,
and government support to innovation activities. digital technologies, and national security and
The government will actively use innovation defense, among others) for easier reference. The
hubs, online platforms, support mechanisms to portal will also contain government programs and
businesses/entrepreneurs (e.g., Negosyo Centers), projects that can be availed to obtain support on
entrepreneurial organizations (e.g., Philippine innovation activities and scholarship programs.

4
  The preparation of the Innovation Portal is being supported by the Global Innovation Policy Accelerator. The Global Policy Accelerator program
is funded through the United Kingdom government’s Newton Fund and delivers executive development to national cohorts of senior policymakers
from the main innovation institutions, while strengthening the implementation capabilities of their teams (Source: https://www.nesta.org.uk/
project/global-innovation-policy-accelerator/).

240 | Updated Philippine Development Plan 2017-2022

Access to the portal will be free for all Filipinos. Develop a vibrant intellectual property rights
Once operational, it will be aggressively promoted culture.
to the public and will be regularly monitored and
updated as needed. It will also be integrated and Expand the network of Innovation and Technology
harmonized with the other existing innovation Support Offices (ITSOs) and enhance and develop
websites of the government such as the Startup its capacities to do online transactions. The
Philippines website. Intellectual Property Office of the Philippines
(IPOPHL) will continue to establish more ITSOs
Alongside this, the government will launch an throughout the country and further enhance the
interactive communication strategy or platform capacities of existing ITSOs to guide innovators/
where STI results, initiatives, and efforts are inventors -- from IP creation, protection, to
highlighted and communicated to Filipinos for commercialization, thus, improving patent
their feedback. applications’ performance. In addition, the IPOPHL
will capacitate the ITSOs to do their transactions/
Increase public awareness on R&D activities. services online to assist clients (e.g. inventors)
To become more effective in communicating remotely.
and raising awareness on R&D, investments in
promotions and communications will be increased. Streamline and rationalize administrative
The government will maximize the use of ICT/online and registration procedures to remove several
platforms in the conduct of technology transfer barriers to innovation. To encourage and improve
and commercialization programs such as science innovation, the IPOPHL, in coordination with
fairs, exhibits, invention contests, and technology the National Innovation Council (NIC), will
transfer days, among others, to help publicize and streamline and rationalize administrative and
commercialize the existing technologies from the registration procedures. It will also undertake
government, academe, and the industry. Technology programs to assist MSMEs in the registration of
promotions under these initiatives will be conducted patents, layout designs, registration of trademarks,
by sector/area (e.g., agriculture, industry, services, and geographical indications and other marks of
farming, fisheries, industrial applications, energy, ownership, industrial designs, utility models, and
services, health, construction, food production, deposit of copyrights. The IPOPHL will develop
digital technologies, national security, and defense, and provide the necessary IT infrastructure so that
among others). Face-to-face/physical technology bulk of its services, processes, and procedures can
transfer and commercialization programs will still be done online. Reforms on these initiatives will
be continued but in accordance with appropriate be reported to the NIC for effective monitoring
social distancing measures. and tracking of results. Under the new normal,
e-commerce platforms are expected to be on the
Ensure that the transfer or distribution of rise, thus, the IPOPHL will also strengthen IP
technologies as a public good will be on a non- enforcement on virtual platforms.
exclusive and non-competitive basis. To ensure
greater access to technologies generated from Increase the public’s awareness of the National
publicly-funded R&D, the transfer or distribution Intellectual Property Strategy (NIPS) and steer
of these technologies as a public good will be its adoption. The NIPS is the government’s
encouraged. These technologies will be transferred main action plan in creating a robust intellectual
in a non-exclusive and non-competitive manner property regime, with strategies proposed for
where no licensing fees, technology fees, and/or regulation, administration, and enforcement of
royalty will be charged or collected. The provision IP. The envisioned IP system under the NIPS is
of free technologies to target users such as farmers, seen to be more systematic, comprehensive, and
fisherfolk, and small-scale industries, among others effective in delivering reliable service for Philippine
intends to upgrade their processes and operations creators and innovators. Hence, the IPOPHL, in
for improved productivity. coordination with the NIC, will conduct various

Chapter 14 Vigorously Advancing Science, Technology, and Innovation | 241

awareness campaigns/programs to promote the the Innovative Startup Act. The government will
NIPS. Furthermore, the IP process (e.g., from invest in the growth and development of startup
application to commercialization) will also be made enterprises and partner with the private sector
part of the curriculum in science and engineering to ensure availability of financing for startups.
courses to increase awareness and encourage The Startup Venture Fund and Startup Grant
participation. Fund under the Innovative Startup Act as well as
the Innovation Fund, Innovation Development
Increasing investments in STI-based Credit and Financing, and Credit Quota under the
startups, enterprises, and spin-offs Philippine Innovation Act will be operationalized
towards ease of access by startups and MSMEs. The
Encourage more innovative financing government will also require financial institutions
mechanisms and private sector investments. to dedicate four percent of their available credit
for startups and MSMEs as promulgated under the
Institutionalize the implementation of the Science Philippine Innovation Act. Thus, the formulation of
for Change Program (S4CP). The government guidelines on both legislation will be fast-tracked.
will institutionalize the implementation of the
S4CP to advance the proliferation of demand- Provide support mechanisms for startups and
driven innovation activities that will respond to MSMEs in the regions.
the demand of the users of technologies. The S4CP
seeks to accelerate and expand STI programs in Fast-track the implementation of the newly-
the country and will promote development and enacted “Innovative Startup Act” (RA 11337). The
industrial competitiveness in the regions through Philippine Startup Development Program will be
the establishment of R&D centers under the formulated to provide monetary and operational
Niche Centers in the Regions for R&D (NICER) support to innovative and technology startups. The
program. The R&D Leadership (RDLead) program program will also provide capacity building and
supports the NICER program through engaging exchange programs, as well as links to potential
Filipino experts to lead in strengthening research investors, collaborators, and customers in the
capabilities of HEIs and research and development Philippines and abroad. In addition, the MSME
institutions (RDIs). It is also expected to boost Innovation Development Program will be mobilized
academe-industry collaborations and industrial to enable government agencies to work hand in
competitiveness through the Collaborative R&D hand with private organizations and academic
to Leverage Philippine Economy (CRADLE) and institutions to provide technical and/or financial
Business Innovation through S&T (BIST) Programs. support programs for the development training of
The Department of Science and Technology entrepreneurs. A regulatory sandbox6 approach
(DOST) recently launched the CRADLE Challenge will be used by the government for unimpeded roll
2020 inviting HEIs/RDIs to partner with Filipino out of startup technologies.
private companies to formulate solutions that can
aid our industries in overcoming the challenge of Bolster government support to MSMEs and
the new normal.5 startups to enhance their innovation activities.
This will be done through programs such as the
Establish and expand the funding mechanisms Small Enterprise Technology Upgrading Program
provided under the Philippine Innovation Act and (SETUP) 2.0; OneExpert; OneLab; Shared Services

5
  The CRADLE Challenge has four thematic areas: (a) sustainable supply and logistics, (b) products for the new normal, (c) reinventing
the workplace, and (d) services that transcend boundaries. The developed research outputs are aimed to advance the innovativeness and
competitiveness of local Filipino companies and ultimately help jumpstart the Philippine economy.
6
  A regulatory approach, typically summarized in writing and published, that allows live, time-bound testing of innovations under a regulator’s
oversight. Novel financial products, technologies, and business models can be tested under a set of rules, supervision requirements, and
appropriate safeguards. A regulatory sandbox also creates a conducive and contained space where incumbents and challengers experiment with
innovations at the edge or even outside of the existing regulatory framework. (Briefing on Regulatory Sandboxes. United Nations Secretary-
General’s Special Advocate for Inclusive Finance for Development).

242 | Updated Philippine Development Plan 2017-2022

Facilities; Kapatid Mentor Me; One Town, One Accelerating innovation
Product; and Technology Business Incubation
4.0. To advance innovation and facilitate efficient Enhancing creative capacity for knowledge
operation of MSMEs, the services of the Food and technology generation, acquisition, and
Innovation Centers (FICs) will be upgraded from adoption
product prototyping or pilot-scale processing into
toll processing. Pending the operationalization of Support research and development agenda.
the Filipinnovation portal, the Startup Philippines
website will provide a centralized platform for Formulate the National Innovation Agenda
news and information on government startup Strategy Document (NIASD). The government,
support programs and networking and learning through the NIC, will craft the NIASD that will
opportunities, as well as a one-stop-shop for startup establish the country’s vision and long-term goals
registration and support program applications. for innovation, consistent with global and regional
commitments and with AmBisyon Natin 2040
Continue reconfiguring the Department of Trade and the PDP. This document will also provide
and Industry’s (DTI) lineup of programs and a roadmap consisting of strategies and action
projects available for startups and MSMEs in plans for improving innovation governance (e.g.,
response to the COVID-19 pandemic. In response identifying and addressing the absorptive capacities
to the pandemic, DTI will reconfigure its lineup of of government agencies doing R&D).
projects and programs to make it compatible to the
minimum public health standards under the new The NIASD will contain innovation priority
normal. The establishment of Regional Inclusive areas (e.g., food security, sustainable agriculture
Innovation Centers (RIICs) will be continued and and natural resources, blue economy, education,
replicated in other key areas around the country vocational training, health, renewable energy,
(e.g., Batangas City [Region 4A], Iloilo [Region climate change and disaster resilience, resource
6], and Zamboanga [Region 9]). These programs efficiencies, traditional knowledge, traditional
include, but are not limited to, capacity-building cultural expressions, genetic resources,
activities for eligible and qualified startups or infrastructure, governance, human capital, digital
MSMEs affected by the pandemic, funding economy, transportation services, security and
assistance/credit programs, and matching needs of defense, and others as may be deemed relevant by
MSMEs with startup solutions providers. the NIC), the strategies to be used to realize these
priorities, and for which resources and budget will
Expand innovation/business support mechanisms be provided.
to include online presence. Some services of the
innovation hubs and TBIs, innovation centers, In relation, the government will support the conduct
among others, will be conducted online (e.g., of long-term STI foresight studies and development
mentoring, training, and consultancy services), of evidenced-based planning framework to
if applicable, to comply with social distancing complement the NIASD, taking into consideration
measures. Furthermore, these innovation support the whole STI ecosystem. Increasing capacities on
mechanisms will also promote their services online planning tools such as foresight techniques will also
to entice beneficiaries. Government agencies be pursued.
with existing online portals on business support
mechanisms will be enhanced and strengthened. Establish relevance criteria and Research,
Development, and Extension (RD&E) themes
The IPOPHL will also conduct training online under the new normal. The government, guided by
through webinars such as the LEAP IP Webinar the country’s innovation agenda and development
Project and expand its online payment options for goals, will develop RD&E themes. These themes will
clients. be adopted in the RD&E programs of concerned

Chapter 14 Vigorously Advancing Science, Technology, and Innovation | 243

agencies which will ensure that a higher level of financial and procurement issues, and allow inflows
mission orientation in publicly-funded research is of complementary private sector resources and
observed. A “relevance criteria” will also be applied expertise.
by the agencies concerned in the selection of RD&E
programs or projects for funding. The relevance Strengthen monitoring and evaluation system for
criteria will take into consideration the development all STI-related programs and projects. Monitoring
thrusts and priorities of various regions in the and evaluation mechanisms for RD&E, including
country to ensure alignment (e.g., research areas impact assessment, will be enhanced to ensure
needed to cope with the COVID-19 pandemic and the attainment of targeted outputs and intended
the new normal). The government will likewise outcomes as well as improve process performance.
conduct an inventory of academic or educational Adoption of the M&E Protocol prepared by
and RD&E institutions, as well as their resources the DOST for the STI community will also be
and capacities to undertake RD&E programs and encouraged.
projects. The inventory will serve as a reference
when deciding the allocation of public funds for Operationalize the Philippine Space Agency and
these purposes. The research areas under the implement the Philippine Space Development and
Harmonized National Research and Development Utilization Policy. With the signing into law of the
Agenda 2017-2022 will be expanded and aligned Philippine Space Act (RA 11363), the government
with RD&E themes of the government. This will be has established the Philippine Space Agency and
complemented by sustained and aggressive capacity- the Philippine Space Development and Utilization
building activities particularly for R&D institutions Policy to enable the country to reap the benefits of
in the regions to spur regional R&D that addresses the development and use of space technologies (e.g.,
local concerns, expands opportunities for growth, agribusiness, environmental conservation, national
and brings about significant changes in the regional security and defense, telemedicine, infrastructure
STI landscape. Additional sources of funding for monitoring, urban planning, transportation and
RD&E will also be identified (e.g., DOE unutilized communication, and disaster management).
fund and Malampaya). This will also provide the Philippines a wider
platform to contribute to regional efforts on hazard
Conduct R&D studies on renewable energy management and climate studies, space research
technologies. The government will explore and and development, space industry capacity building,
conduct R&D studies on renewable energy space education and awareness, and international
technologies, including the viability of new cooperation.
technologies to expand the share of renewables
in the energy supply mix to fuel the country’s Formulate a Human Resource Development
industrialization and urbanization, while Plan for Researchers in Higher Education. This
simultaneously being mindful of its environmental is to ensure that policies in HEIs especially in
responsibility. Moreover, the government will government-funded institutions provide incentives
promote an innovation culture that supports new for research and mentoring. This will entail
and emerging renewable technologies, as well as providing opportunities for aspiring researchers to
innovative business models in the renewable energy get startup support, setting policies to make research
industry (see also Chapter 19). rewarding (e.g., deloading, compensation, and peer
recognition), and ensuring that research outputs
Intensify the conduct of R&D through public- are supported for patenting and commercialization
private partnership (PPP). The NIC will intensify within the institution. The plan will be inclusive,
the undertaking of PPP on R&D, including allowing small niche institutions to participate and
innovation, to encourage the private sector to develop their capability to ensure that research
deepen their R&D activities while at the same time capacity is distributed not just in major urban
accelerating the public sector’s efforts. This will centers of the country. In addition, the plan will
help the government tap more resources, avoid also take into consideration the needs of the regions

244 | Updated Philippine Development Plan 2017-2022

and ensure that research manpower is responsive to curriculum8 and include life-long learning skills
those needs. development to enable workers to respond to the
requirements of the FIRe. This will be complemented
Moreover, the national budget circular guidelines by an intensive information drive to further increase
for promoting faculty members in SUCs and the number of scholarship applicants. Government
institutions supervised by the Technical Education officials’ leadership capacities for innovation will
and Skills Development Authority (TESDA) will also be enhanced by conducting regular training
be revisited regularly to ensure that those who programs / management seminars that will enable
are engaged in RD&E and innovation under the the government to lead relevant stakeholders
Philippine Innovation Act are given the proper (e.g., industries and academe) towards becoming
recognition and commensurate points. innovative (see also Chapter 10).

Accelerate efforts to prepare for the emerging Expand the implementation of entrepreneurship-
Fourth Industrial Revolution (FIRe) landscape. related courses to engineering and the other
The government, through the NIC, will identify the allied disciplines. Technopreneurship courses
priority frontier technologies7 that are relevant to (e.g., Technopreneurship 101) will be scaled up to
the country’s development setting and incorporate expose undergraduate engineering students to the
these in the RD&E themes that will be developed by entrepreneurial mindset and the fundamentals of
the government. The NIC will also provide support entrepreneurship. As such, it will be spread out to
(e.g., training programs to build new skills) to those more HEIs throughout the country to increase their
that will be adversely affected (e.g., workers) by the appreciation of STI and entrepreneurship, thereby
emergence of the FIRe. Accelerating curriculum increasing the utilization of technologies and
development related to FIRe and its approval by innovation. Development of support programs will
the Commission on Higher Education (CHED) also be provided to ensure engineering graduates
will also be critical. The DTI - Competitiveness and take on entrepreneurship as a career option.
Innovation Group will continue the implementation
of its programs related to the absorption of industry Expand digital skills development programs
4.0 technologies and startup development. for government employees and public school
teachers. The Department of Information and
Increase funding for human resource Communications Technology (DICT), in support
development. of the Department of Education (DepEd), CHED,
and TESDA, will assist in the provision of teacher
Expand the provision of scholarship programs. training opportunities related to digital literacy,
The government will continue and expand cybersecurity, and other digital skills. The DICT
the provision of scholarship programs such as will also contribute to the government’s efforts
the Expanded Specialized Science Secondary towards digital transformation through the
Education Scholarships, Expanded Undergraduate conduct of digital skills development programs
S&T Scholarships for Inclusive Development, for government employees and the deployment
and Expanded S&T Graduate (Masters/Ph.D.) of Chief Information Officers (CIOs) to various
Scholarships, among others to further encourage government agencies. Government employees will
students to pursue STI courses. Moreover, the be provided with professional training to effectively
government will implement changes to the STEM use digital tools and efficiently perform tasks even

7
  There is no universally-agreed definition for frontier technology. However, there is a recurring common feature across the different technological
advances and that they all “have the potential to disrupt the status quo, alter the way people live and work, rearrange value pools, and lead to
entirely new products and services." (Frontier Technologies for Sustainable Development in Asia and the Pacific. 2018. United Nations Economic
and Social Commission for Asia and the Pacific). Some examples of frontier technologies are nanotechnology, artificial intelligence, internet-of-
things, bioprinting, big data, blockchain, robotics, neurotechnology, synthetic biology, and others.
8
  CHED will lead the updating of the curriculum.

Chapter 14 Vigorously Advancing Science, Technology, and Innovation | 245

in alternative work setups. Government plans, (RFINL). The government will support and pursue
policies, and processes will also be advanced through initiatives to remove restrictions on the practice
the deployment of trained CIOs in government of professions by foreign experts (e.g., engineers)
agencies, assigned to lead in the development listed in the RFINL. Pending the amendments to
of internal digital transformation strategies and the relevant national laws which restrict foreign
business continuity plans. professionals from entering the country, the
government will consider crafting procedures and
The Digital Workforce program of the DICT will measures in granting of temporary permits (see also
also be launched as a capacity building program Chapter 9).
to enable the broader use of digital technologies in
critical sectors such as education, finance, health, Promote more participation of scientists in the
agriculture, and logistics (see also Chapter 10). Balik Scientist Program. The government will
aggressively promote the enhanced benefits and
Pursue adult learning through online, distance, incentives under the Balik Scientist Act to encourage
and/or blended learning. This will involve the wider participation, particularly in sectors and areas
promotion of more open online courses (MOOCs) where expertise is lacking.
and flexible training arrangements through blended
programs that will reduce face-to-face contact. Promote startup visas and other benefits and
Education agencies will also collaborate with the incentives under the Innovative Startup Act (RA
private sector and professional organizations to 11337). The government will strategically market
increase the number of online courses accredited the country’s startup ecosystem to experienced
for Continuing Professional Development. startup founders, investors, and other enablers.
Curricular adjustments will be done to adapt to the
new teaching-learning mode. Strengthen STI infrastructure.

Strengthening formal and informal education on Establish STI facilities and innovation hubs. The
health, food, and well-being will also be pursued to government will engage with the academe and
equip Filipinos with the fundamental education and industry to build more makerspace, innovation hubs,
preparedness on sound practices in staying healthy innovation centers, FabLabs, laboratory facilities,
and well. R&D centers, and prototyping facilities, as well as
science and technology parks in strategic locations
Increase the number of HEIs offering quality throughout the country to support the innovation
programs in STI-aligned fields, especially in and technology requirements of the MSMEs
engineering and the sciences. SUCs will invest in and startups. Moreover, the OneLab Network,
the enhancement of quality of program offerings a platform which integrates DOST analytical
and will explore offering engineering and science and testing laboratories and other laboratories
programs to increase the number of scientists and in the Philippines and ASEAN countries, will be
engineers. This can be achieved through sustained strengthened to provide easy access to testing and
investments in facilities and faculty development calibration services. The capabilities of existing and
coupled with proactive outreach to potential feeder new STI facilities and innovation hubs to execute
high schools that could be assisted to provide some of their services online will also be developed.
students for the SUCs. STI human resource
development will get a boost from the free higher Strengthen infrastructure for and regulation of
education provided through SUCs. digital transactions. Given the increased demand
for digital transactions (e.g., digital payments,
Tap foreign and overseas Filipino expertise. online delivery, digital tax payments, and online
financial services, among others), relevant digital
Support the liberalization of certain professions infrastructure and regulatory oversight will be
in the Regular Foreign Investment Negative List strengthened, including closer monitoring of

246 | Updated Philippine Development Plan 2017-2022

cybersecurity plans. The implementation of DICT’s Scientific findings and projections on the virus,
National Broadband Program will be fast-tracked however frightening, shed light on how extensive it
to provide the national ICT backbone to support is. Scientists are being relied on to minimize fear,
government services delivery, including the use as such, accurate and effective communication by
of digital transactions and the linking of digital scientists will be used to reduce the anxiety of the
transformation and research laboratories as part of populace.
the STI ecosystem.
Better appreciation of STI by Filipinos could also be
Foster STI culture. achieved by communicating tangible results. Several
tools have been used to address the challenges
Harmonize/consolidate the communication caused by the crisis. For instance, the Baguio City
advocacy of the government on STI. Government LGU used a predictive analytics tool to understand
will consolidate all its existing communication the transmission of the virus in the locality and has
advocacy and campaigns and turn it into a contributed to the goal of containing the virus. A
comprehensive/harmonized advocacy plan to group of UP researchers has correctly estimated the
promote better public appreciation and number of people to be affected by the virus should
understanding of STI. Privately-owned mass media the government implement relaxed quarantine
networks will be incentivized to undertake mass guidelines. The UP National Institute of Health
education and promotion of science-responsive (UP-NIH) has successfully developed test kits9 that
communities. helped expand the testing capacity of the country.

Aggressively promote to the public the importance To help enhance the long-term capabilities of
and benefits of science in helping resolve national the country’s workforce to generate new ideas for
issues. The government will use new and traditional innovation and at the same time produce an agile
media to inform the public of the benefits, workforce, creativity will be strongly nurtured as a
importance, and potential of science to address vital skill of students at all levels and will also be
various challenges and move the country forward. integrated into all disciplines (e.g., science and
Public trust in science is important for science- engineering courses). The transformation of the
based policy to succeed. Highly-technical data and DepEd’s STEM Program to science, technology,
information will be conveyed in a manner that can engineering, arts, and math (STEAM) will serve as
be easily understood by the public. In the case of a starting point (see also Chapter 7).
the COVID-19 pandemic, the massive information
campaign and institution of control measures have Strengthening open collaboration among
helped in the reduction of virus transmission. As actors in the STI ecosystem
an example, altering public behavior to lower virus
transmission depends on how scientific data are Strengthen multisectoral collaboration.
imparted to the populace. “Flattening the curve” for
ordinary citizens was unknown before the pandemic, Establish and operationalize the National
but through the communication efforts executed by Innovation Council (NIC). In line with the
doctors and scientists in several platforms, people Philippine Innovation Act (RA 11293),10 the
were encouraged to remain indoors to minimize government will establish the NIC, an inter-agency
transmission. Misinformation about COVID-19 committee that will adopt a “whole-of-government
continually spread, leading to fear of the unknown. approach” in steering the direction of STI

9
  Source: https://www.msn.com/en-ph/news/national/up-developed-covid-19-test-kits-now-being-used-at-nih/ar-BB12THgF.
10
  The law establishes the NIC which will develop the country’s innovation goals, priorities, and long-term national strategy. Said Council will
also formulate a National Innovation Agenda and Strategy Document that establishes the country’s vision and long-term goals for innovation and
provides a roadmap and the strategies for improving innovation governance through clear-cut delineation and complementation of innovation
efforts across agencies, deepening and accelerating innovation efforts, and integrating and fostering public-private partnerships, among others.

Chapter 14 Vigorously Advancing Science, Technology, and Innovation | 247

development in the country. This will also identify technology, artificial intelligence, security and
and eliminate the areas of fragmentation/gaps in defense, etc.). The government will also intensify its
the governance framework of the STI sector leading efforts in improving the country’s STI standing in
to the lack of coherence in the policies, plans, and the international community through information
programs. Moreover, the NIC will strengthen dissemination on potential STI partners in the
and deepen interactions and partnerships among Philippines, promoting international activities
different actors from the public and private sector, related to STI, and fostering exchanges on STI
academe, MSMEs, RDIs, and communities towards activities. Further, strategic partnerships will be
promoting inclusive growth and improving the built with other countries through activities such
quality of life through innovation. as joint research and development, exchange of
scientists, building researchers' networks, joint
Pending the creation of a secretariat and a unit of seminars/workshops, technology transfer, and
personnel that will help carry out the activities of the capacity building. Bilateral and multilateral
NIC, NEDA will constitute an interim Secretariat partnerships will also be used to acquire new and
through the temporary detail of personnel from the existing foreign technologies (e.g., those that may
NIC member agencies, pursuant to RA 11293. be used to address the COVID-19 pandemic and
adapt to the new normal).
Intensify international cooperation in STI.
Implement the recommendations of the Scoping
Encourage open science and collaboration to Study on STI Statistics.
combat public health issues and emerging diseases
such as COVID-19. International collaboration in The results of the scoping study on STI statistics will
scientific research and innovation has accelerated feed into the work of and will be implemented by the
in the past months. The Philippines has taken Inter-Agency Committee (IAC) on STI Statistics.
advantage of this opportunity to improve the The IAC will aim to resolve the issues and concerns
country’s knowledge and scientific social capital. being encountered by various government agencies
At the onset of the COVID-19 pandemic, scientific in producing STI statistics. The government will also
journals were made accessible to the public free of identify indicators with available regional data to
charge. Several digital platforms have also provided enable the concerned regional offices to effectively
opportunities for a more sustained STI international monitor their STI sector. This will allow the regions
collaboration, as the pandemic pushed global to provide their regional baselines, targets, and
scientific communication. These seem to be proving actual data on certain STI indicators.
helpful for the advancement of the STI ecosystem in
developing countries such as the Philippines. The government will also require various
stakeholders (e.g., SUCs) to submit data that will
Intensify international STI collaboration. The be recommended under the scoping study (e.g.,
Philippines will continue to actively participate R&D data) and encourage private corporations
and figure more prominently in regional and to participate voluntarily in sharing relevant data.
international discussions on STI. As a member of These data will also serve as the country’s inputs
a global scientific community, the Philippines will to various global indices. The DBM and the DOST
showcase Filipino ingenuity and innovations as will work closely to develop the Unified Accounts
possible solutions to common global problems and Code Structure (UACS) for the R&D spending in
concerns. In addition, it will continue to explore the public sector. This will contribute significantly
new and emerging areas of scientific cooperation to the data collection and generation of the sector
where the country and its partner governments that will substantially aid the development planning
and institutions may mutually benefit from cycle.
(e.g., vaccine development, space and satellite

248 | Updated Philippine Development Plan 2017-2022

Legislative Agenda

Table 14.2 Legislative Agenda to Vigorously Advance Science, Technology, and Innovation

LEGISLATIVE AGENDA RATIONALE

Increased STI application in agriculture, industry, services, and health sectors

This seeks to strengthen the IPOPHIL as the lead government agency in IP. It intends to improve its
organizational structure to maintain and implement effective, efficient, economical, responsive,
Amendments to the Intellectual Property (IP) technology-driven, and sustainable services and programs; protect, enforce, and adjudicate;
Code promote and steer creativity, innovation, development, utilization, and commercialization that
would benefit MSMEs; enhance learning, advocacy; and support the enhancement of digital
infrastructure and interconnectivity.

Increased investments in STI based startups, enterprises, and spin-offs

This aims to expand various S&T programs of the DOST (e.g., R&D programs, technology
business incubation, foreign scholarships) and prescribes the R&D areas to be considered under
Science for Change (S4C) Act
the S4C Program. The bill also seeks to require NGAs, LGUs, and SUCs to adopt publicly-funded
and generated technologies whenever feasible and practicable.

Enhanced creative capacity for knowledge and technology generation, acquisition, and adoption

This will establish a Research Institute that will delve into the study of viruses. The country needs
Philippine Virology Science and Technology diagnostics to detect and limit the spread of the existing viruses; vaccines to provide long-term
Institute protection; treatments to save lives in the shorter term; and social science to understand their
behavioral and societal implications.

An Act Creating the Center for Disease

This proposed legislation aims to establish a center that will be the principal agency tasked
Control and Prevention, Providing
with developing and applying communicable disease control and prevention initiatives. It will be
Mechanisms for Epidemic Control, and for
responsible for controlling the introduction and spread of infectious diseases.
Other Purposes

This proposed measure aims to legislate an independent regulatory framework that will decide
Comprehensive Philippine Atomic
on issues affecting public health and safety, protection of the environment, and nuclear security
Regulation Act
and safeguards, that is beyond the reach of entities with self-motivated interests.

Strengthening the National Measurement This seeks to establish the National Metrology Institute under the DOST as well as provide
Infrastructure System (NMIS), Amending RA capacity building programs through competency training to strengthen the local metrology
9236 also known as the National Metrology authorities at the local level and foster a metrology culture that will instill a keen appreciation of
Act of 2003 the importance of metrology.

This seeks to strengthen the existing Provincial Centers for Science and Technology (PSTCs)
Provincial Science and Technology Office Act under RA 6959 by converting them into an Office so that the development and transfer of
technologies in the rural areas can be vigorously pursued and implemented.

This aims to establish, institutionalize, and regulate a coherent, coordinated, and collaborative
eHealth System and Services Act
National eHealth System, guided by a national policy and strategic framework.

This aims to adopt a whole-of-government approach in promoting digital innovation and

Digital Philippines Act
transformation in business and government.

This intends to provide the required policy environment for the development of a national defense
industry through the strengthening and revitalizing of the self-reliant defense posture program,
Philippine Defense Industry Development Act incentivizing in-country enterprises, rationalizing defense acquisition, and institutionalizing
a functional office for defense technology research and industry development under the
Department of National Defense.

Chapter 14 Vigorously Advancing Science, Technology, and Innovation | 249

PART V

ENABLING AND
SUPPORTIVE
ECONOMIC
ENVIRONMENT
15
Ensuring
Sound
Macroeconomic
Policy
CHAPTER 15

Ensuring Sound
Macroeconomic Policy
The Philippine economy faced and overcame various headwinds in the first half of the Plan
period. Macroeconomic fundamentals remain strong and stable, resulting in a credit rating
upgrade for the country. The fiscal position also remains sustainable and supportive of growth
with the pursuit of tax reforms, improved spending efficiency, and prudent debt management.
Headline inflation rate was generally within target with the implementation of appropriate
monetary and non-monetary policy measures. The financial sector remains stable, with
significant strides in expanding inclusiveness by simplifying requirements for opening basic
bank deposit accounts and creating a legal framework for the use of non-traditional collateral.
Moreover, the external sector remains resilient, characterized by a manageable current account
deficit and modest trade growth despite disruptions in global markets.

This strong starting position to be complemented with strategic and responsive measures
will enable prompt recovery from the downturn caused by the COVID-19 pandemic. Towards a
healthy and resilient Philippines, fiscal policy will be made more responsive through enabling
budget and policies, enhanced local government units (LGUs) capacity, and improved private
sector participation. Targeted supervisory actions and reforms that address the impact of
the pandemic remain crucial in fostering the resilience of the country’s financial system.
Trade partnerships will be intensified, while products and markets will be diversified and
scaled up to take advantage of shifts in business processes and consumer preferences under
the “new normal.”

Assessment and Challenges

Assessment: Over the past three years, substantial reversed as the pandemic subdues economic
improvement in spending performance outpaced activities. Reduced revenues and increased
an increase in revenue collections, leading to an spending on pandemic recovery measures are seen
expansion of the government’s fiscal deficit to to further elevate the fiscal deficit and consequently,
3.4 percent of Gross Domestic Product (GDP) raise the country’s debt ratio. Inflationary
by 2019. Nevertheless, the ratio of government pressures of 2018 dissipated in 2019, with headline
outstanding debt to GDP declined as the expansion inflation averaging at 2.5 percent–well within the
of the economy outpaced the accumulation of government’s target, as appropriate monetary and
debt. However, this trajectory is expected to be non-monetary policy measures were implemented.

254 | Updated Philippine Development Plan 2017-2022

Meanwhile, the financial sector remains sound global trade seen to slow down (see Chapter 2).
and has become more inclusive, supported by Exports from North America and Asia are
various reforms such as the establishment of rules expected to be hardest hit with trade from sectors
on the introduction of Basic Deposit Accounts; the with complex value chains, such as electronics
expansion of low-cost financial touchpoints; and and automotive products, expected to decline.
legislation allowing the use of moveable collateral, Traders are also expected to rely more on online
and easier customer identification.1 These reforms processing of trade documents to facilitate
are complemented by an enabling regulatory seamless movement of cargo. Capital flows have
framework establishing a retail payment system. been increasingly volatile as risk aversion against
The outbreak of the pandemic drove up demand developing countries led to capital flight to
for digital financial services as people adhered to safe havens.
social distancing measures. There has been
an increased preference for doing basic Challenges: The budget strain in the near to
financial transactions online such as bills medium-term may impede planned public
payment and fund transfers. On the other investments. The implementation of the
hand, the possibility of increased demand Supreme Court ruling on the Mandanas Case
for insurance lingers with the increase in in 2022 further adds pressure on the tight fiscal
infections and fatalities caused by the pandemic. position. Institutional bottlenecks and inadequate
absorptive capacity also continue to pose risks to
For the external sector, merchandise goods, accelerating the implementation of much-needed
exports, and services posted modest growth infrastructure projects.
during the first half of the Plan period, boosted
by improved sales of major export products such Similarly, financial institutions that serve vulnerable
as electronic products and fruits and vegetables. sectors may lack the capability to respond to the
Thus, the sector was able to exceed the targets for increased need for digital financial services (DFS).
2017 to 2019, while the widening trade-in-goods On the other end, low-income households may
deficit was partially offset by the trade-in-services lack awareness of DFS available to them, as well
surplus. The current account deficit – recorded as the knowledge needed to make sound financial
at 0.9 percent of GDP in 2019 – is expected to decisions. Cybersecurity threats also pose a
reverse into a surplus in the near term amid a challenge. For the external sector, portfolio and
significant deceleration in goods imports mainly direct investments may further slow down as recent
due to the sharp decline in global crude oil prices, developments have led to an overall risk aversion
subdued domestic demand, and disruptions in of foreign investors to emerging markets as well
global supply chains. This is notwithstanding as an erosion of business confidence. In terms of
the expected lower receipts from goods exports, trade in goods and services, an overall weakening in
trade-in-services, and remittance inflows. The global trade in goods and services, including travel
pandemic is expected to reverse gains on trade and tourism is expected (see Chapter 2).
in goods and services performance with overall

1
Philippine Identification System Act (RA 11055) and the Personal Property Security Act of 2018 (RA 11057).

Chapter 15 Ensuring Sound Macroeconomic Policy | 255

Targets
The targets for revenue and tax effort were The ratio of the financial system’s assets to GDP
revised downwards, taking into account muted has been adopted to facilitate benchmarking of the
economic activity due to the COVID-19 pandemic. depth of the country’s financial system. Likewise,
The consequent changes in programmed equity market capitalization relative to GDP and
spending, as approved by the Development Budget size of the local currency bond market in percent
Coordination Committee (DBCC) in July 2020, of GDP replaced old indicators to provide a better
were reflected in the revised targets for the national measure of domestic capital market development.
government expenditure performance indicators.
These changes take into account the government’s On financial inclusion, Plan targets were revised
efforts to support the country’s economic recovery upward for the indicators on the number of access
and the transition to the New Normal. The higher points per 10,000 adults and the proportion of
Internal Revenue Allocation (IRA) in 2022 as adults (15 years and older) with an account at
provided under the Supreme Court’s decision on a bank or other financial institutions or with a
the Mandanas case is also reflected in the revised mobile-money-service provider, as the initial
targets. These changes, in turn, were reflected in end-of-plan targets have already been met.
the upward revision of the targets for the deficit, To gauge the extent to which digital technology
debt, and interest payments ratio. transforms financial inclusion and to
complement the indicator on account penetration
The revised targets for the ratio of locally-sourced which is only able to generate data every two years,
LGU income to total current operating income higher frequency indicators, such as the volume
reflect the aforementioned increase in IRA. of InstaPay transfers 2 and retail e-payments, were
The locally-sourced income of LGUs in absolute adopted. The updated targets for microinsurance
terms was included as an additional indicator to penetration include insured principal members
measure the capacity of LGUs to generate their and their dependents. The value of microfinance
sources of revenues. loans provided by microfinance non-government
organizations (NGOs) accredited under the
The following were included as additional Microfinance NGOs Act was added as a measure
indicators in light of the developments arising of financial inclusion, in line with the law’s
from the pandemic: (a) VAT revenues from passage and policy.
the digital economy to capture the increase in
e-commerce activities (see Chapter 9); (b) share The targets for exports of goods and services were
of health sector spending on account of the revised downwards to account for the effects of
government’s shift in focus towards improving COVID-19. Likewise, targets were recalibrated to
health systems (see Chapter 10); (c) utilization of the reflect the projected current account surplus due to
local development fund; and (d) utilization of the the narrower trade-in-goods deficit, offsetting the
Special Education Fund 2 to measure the capacity lower receipts from trade-in-services.
of LGUs to implement their programs, activities,
and projects.

2
Targets for the indicator are reflected in Chapter 15 of the PDP Results Matrices.

256 | Updated Philippine Development Plan 2017-2022

Table 15.1 Revised Plan Targets to Sustain a Sound, Stable, and Supportive Macroeconomic
Environment

BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020* 2021 2022 End of Plan

Sub-Sector Outcome 1.1. Responsive, strategic, supportive, and sustainable fiscal sector

15.2
Government Revenue to GDP ratio improved (%)1/ 17.0 13.2 13.3 13.3
(2016)

13.7
Tax revenue to GDP ratio improved (%)1/ 16.2 12.3 12.5 12.5
(2016)

Primary expenditure to GDP ratio maintained 15.5

18.1 19.1 17.9 17.9
above baseline (%)1/ 2/ (2016)

Percentage share of interest payments in the total 11.9

9.7 11.0-14.0 12.0-15.0 12.0-15.0
disbursements managed (%)1/3/ (2016)

Economic service sector expenditure to GDP 5.7

5.7 6.55/ 5.75/ 5.7
maintained above 5.0 percent (%)1/ 4/ (2016)

Social service sector expenditure to GDP maintained 6.7

7.3 8.15/ 7.95/ 7.9
above 7.0 percent (%)1/ 4/ (2016)

Ratio of discretionary expenditure to total budget 42.7 41.2

40.15/ 32.45/ 32.4
maintained above 30.0 percent (%)1/ 4/ 6/ (2016) (Actual)

Ratio of Health Sector expenditure to 4.4

4.5 4.68/ 4.18/ 4.1
total budget increased (%)4/ (2016)7/

92.6
Utilization of current year’s budget increasing9/ increasing increasing increasing increasing
(2018) 10/

Manageable NG fiscal deficit to GDP ratio 2.4

3.0 8.5 7.2 7.2
maintained (%)1/ 11/ (2016)

Manageable outstanding NG debt stock to 42.1

36.8 58.0-61.0 60.0-63.0 60.0-63.0
GDP ratio maintained (%)1/12/ (2016)

Manageable consolidated public sector balance -0.1

-1.0 -5.8 n.a.13/ n.a. 13/
as a share of GDP maintained (%)1/ (2016)

Sustained Sustained Sustained

Stable/ At least
investment- investment- investment-
Investment-grade credit rating sustained Positive Stable/
grade credit grade credit grade credit
(2016) Positive
rating rating rating

Ratio of locally-sourced LGU income to total current 33.0

36.2 21.0 15.0 15.0
operating income maintained at or above 15.0 percent (%) 14/ (2016)

179.8
Locally-sourced LGU income increased (PHP, billions) 15/ 256.5 144.9 159.4 159.4
(2016)

Chapter 15 Ensuring Sound Macroeconomic Policy | 257

 BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020* 2021 2022 End of Plan

80.0
Utilization of local development fund improved (%) 16/ 100.0 100.0 100.0 100.0
(2016)

Sub-Sector Outcome 1.2. Resilient and inclusive monetary and financial sector

1.3 (2012=100);
Low and stable inflation rate achieved (%) 2.0-4.0 2.0-4.0 2.0-4.0 2.0-4.0
1.8 (2006=100)

Ratio of Financial System's Total Assets to 123.4

130.0 120.0 125.0 125.0
GDP maintained (%) (2016)

95.4
Equity market capitalization relative to GDP (%) 107 73.3 78.5 78.5
(2016)

32.2
Size of local currency bond market in % of GDP 45 39.2 43.6 43.6
(2016)

Annual value of microfinance loans 52.7

>65.4 >95 >104.7 >104.7
increased (PHP billion)17/ (2016)

Number of access points per 10,000 adults 10.1

>10 >13 >14 >14
increased (cumulative)18/ (2016)

Proportion of adults (15 years and older)

22 Not a Not a
with an account at a bank or other financial institutions >40 >40
(2015) survey year survey year
or with a mobile-money-service provider

Volume of retail e-payments in the country 10.0

- - 40.0 40.0
(% of total payments)19/ (2018)

27.2
Microinsurance penetration (% of total population)20/ 34.0 40.8 44.8 44.8
(2016)

Sub-sector Outcome 1.3. Sustainable and resilient external sector

Exports of goods increased 42.7

54.8-56.9 46.1-47.1 47.9-49.4 47.9-49.4
(USD billion, cumulative) 1/ (2016)

Exports of services increased 31.2

47.2-49.0 37.0-37.8 40.0-41.2 40.0-41.2
(USD billion, cumulative) 1/ (2016)

Sustainable current account balance to -0.4

0.01 0.821/ NA NA
GDP ratio achieved (2016)
*
2020 original targets set/approved in 2016/prior to the pandemic retained.
1/
Targets for 2021-2022 are based on the macroeconomic assumptions and fiscal program approved by the DBCC on July 28,
2020 via Ad Referendum.
2/
Albeit the downward trajectory of the 2021 and 2022 projections for the ratio of primary expenditure to GDP due to higher
interest payments, these projections will remain above the actual 2016 baseline value. Thus, the consequent re-statement and
revision of targets of the indicator.
3/
Figures are projections on the ratio of interest payments to total disbursements, which is foreseen to increase over the medium-
term even when compared to the baseline in view of the government’s effort to borrow prudently to support the country’s
economic recovery
4/
Targets are based on the emerging proposed FY 2021 budget level, and consistent with the macroeconomic assumptions and

258 | Updated Philippine Development Plan 2017-2022

fiscal program approved by the DBCC on July 28, 2020 via Ad Referendum. Subject to further refinements based on the FY
2021 National Expenditure Program (NEP) and/or Budget of Expenditures and Sources of Financing (BESF).
5/
Targets for 2021 and 2022 for selected fiscal indicators will be on a downward trajectory due to limited fiscal space arising
from the combined impact of lower revenue projections and SC’s ruling on the Mandanas Case. Subject to further refinements
based on the FY 2021 National Expenditure Program (NEP) and/or Budget of Expenditures and Sources of Financing (BESF).
6/
Discretionary expenditure and total budget pertain to cash-based appropriations level. Annual Plan targets for 2021-2022
and actual accomplishments for 2019-2020 are lower compared to actual accomplishments in 2016-2018 due to the transition
from obligation-based to cash-based budgeting system in 2019.
7/
Actual 2016 baseline value is in obligation-based appropriations level while medium-term targets for 2020-2022 are in cash-
based appropriations level.
8/
Lower target for 2022 relative to the rest of the annual Plan targets reflects the impact of lower revenue projections and SC’s
ruling on the Mandanas Case. Likewise, health is a devolved function. Subject to further refinements based on the FY 2021
National Expenditure Program (NEP) and/or Budget of Expenditures and Sources of Financing (BESF).
9/
The indicator measures how fast implementing agencies can obligate/contract out their funds budgeted for the current year.
The current year’s budget pertains to the cash-based appropriations level.
10/
The 2018 actual accomplishment will serve as the baseline value for the indicator to reflect the introduction of the
Department of Budget and Management transitional reforms to cash-based budgeting system. The updated 2019-2022 targets
are in cash-based appropriations level.
11/
Albeit the upward revision of the targets for 2021 and 2022 due to the combined impact of lower revenue projections
and higher disbursements in line with the government’s response to address the socio-economic impact of COVID-19, fiscal
consolidation (as seen in the downward trajectory of the deficit by the end of the Plan period) will take place to ensure prudent
fiscal management.
12/
Targets for 2021 and 2022 were revised upwards due to higher deficit assumption and borrowing requirement. Despite this,
the revised targets cluster along the 60% emerging economy threshold indicated in most literature.
13/
Target for 2022 is not available as some components of the indicator could only be projected until 2021.
14/
Downward revision of the target for 2021 is due to expected slower economic activity (versus original target), complemented
with higher Internal Revenue Allocation for 2021 resulting from the implementation of TRAIN in 2018; while the lower target
for 2022 relative to the rest of the annual Plan targets reflects the impact of the SC’s ruling on the Mandanas case, which will
significantly increase IRA.
15/
It is estimated that LGUs would miss around 30% to 50% of their original targets for FY2020 to FY2022 due to the financial
hardship and economic impact brought about by the COVID-19 pandemic.
16/
Figures are based on Bureau of Local Government Finance’s projections.
17/
Microfinance figures include banks and microfinance NGOs. Data with the Securities and Exchange Commission is only
based on the Microfinance NGOs accredited by the MicroFinance NGO Regulatory Council.
18/
Access points are the regulated entities where both cash-in and cash-out transactions can be performed. These include banks,
non-stock savings and loan associations, cooperatives with financial services, microfinance NGOs, pawnshops, money service
businesses, e-money agents, cash agents, and other non-bank financial institutions.
19/
Share of retail e-payments to total number of retail payments.
20/
Number of people with microinsurance coverage consists of insured principal members and dependents.
21/
Figures are Bangko Sentral ng Pilipinas (BSP) projections approved by the Monetary Board on October 08, 2020.

Strategic Framework
To achieve the targets above and consequently Amidst the challenges brought about by the
sustain a sound, stable, and supportive pandemic and the transition to the new normal
macroeconomic environment, the following and the increasing pressure on the national
sub-sector outcomes will be pursued: (a) responsive, government’s fiscal position, responsiveness, and
strategic, supportive, and sustainable fiscal sustainability were included in the sub-sector
sector; (b) resilient and inclusive monetary and outcome under the fiscal sector, while the third
financial sectors; and (c) sustainable and resilient sub-sector outcome was expanded to cover the
external sector. entire external sector (from external trade sector
only previously). The figure below shows the
updated framework.

Chapter 15 Ensuring Sound Macroeconomic Policy | 259

Figure 15.1. Strategic Framework to Sustain a Sound, Stable, and Supportive Macroeconomic
Environment

Strategies
Sustaining sound, stable, and risk management, food security, digital economy/
government, and growth-inducing expenditures
supportive macroeconomic such as crucial and shovel-ready infrastructure
environment projects, among others.

Pursue institutional reforms to ensure

Responsive, strategic, supportive, and timely execution of projects. To complement
sustainable fiscal sector administrative improvements in budget execution
such as the implementation of the Budget and
Realign expenditure priorities and implement Treasury Management System, institutional
expenditure management reforms. reforms will be introduced to address persistent
bottlenecks. These include the revision of the
Strategically realign and reprioritize expenditure. guidelines on the release of funds for foreign-
To facilitate transition and adjustment to the new assisted projects and its alignment with the cash-
normal, the government will implement strategic based budgeting system. Existing Commission on
realignment of its budget and reprioritize its Audit (COA) issuances will be consolidated and
expenditures over the near-term. Priority will be codified to resolve ambiguities and inconsistencies.
given to health-related expenditures, disaster- The 1976 Government Auditing Code of the

260 | Updated Philippine Development Plan 2017-2022

Philippines3 will also be updated. Furthermore, Implement strategic revenue policy and
the implementing rules and regulations of the administrative measures.
Government Procurement Reform Act will be
further reviewed to address procurement delays. Fast-track the implementation of priority
To minimize undue delay in the implementation tax reform measures. Amid muted economic
of crucial infrastructure projects during election activity, the passage of growth-enhancing revenue
periods, amendments to the exemption provisions measures, such as the Corporate Recovery and
under the Omnibus Election Code will be pursued. Tax Incentives for Enterprise Act (CREATE),
Moreover, to make the budget more responsive to will provide immediate relief to businesses and
crises and other unprecedented events, institutional encourage investments that will aid the economy’s
reforms to increase flexibility in the emergency use recovery. To further promote crucial investment
of funds, such as the LGU development fund, will and innovation, it is important for the government
be considered. to utilize a regulatory sandbox approach to help
develop supportive regulatory frameworks for
Implement transition plans for fully emerging industries under the new normal (see
devolved functions to LGUs, including capacity Chapters 5 and 16). Subsequently, the pursuit of
development and intensive public information the digital transformation agenda, especially the
campaign. To ease pressure coming from establishment and institutionalization of a digital
the implementation of the SC ruling on the taxation framework, will help the government
Mandanas case, concerned agencies will fast- manage the challenges and reap the benefits of
track the preparation4 and implementation of the digital economy. Meanwhile, once recovery is
the transition plans, which provide well-defined underway, the passage of the remaining packages
parameters for functions and services that are of the tax reform program will help sustain
fully devolved to LGUs. The transition plans growth by correcting inefficiencies and leveling
include the definition of standards for the the playing field. These policy reforms will be
delivery of devolved services, clear delineation complemented by tax administration measures,
of responsibilities between the national particularly the fuel marking and Electronic
government and the LGUs, and the strategy Receipt and Invoice System, which will enable the
for capacity development of LGUs, which will government to recoup needed revenues.
involve training for LGUs on development
planning. The implementation of the transition Increase local sources of revenue by introducing
plans will be coupled with intensive public legislated and non-legislated measures.
information campaigns on the shift in Despite the higher IRA under the SC ruling on
responsibilities in the delivery of basic services the Mandanas case, the need to pursue measures
which will help increase LGU accountability. that will improve the collection of locally-sourced
Cost-sharing schemes between the national revenues remains. Foremost is the passage of
government and LGUs for projects that are local the Real Property Valuation reform, which can
in nature but benefit multiple LGUs, will also help augment property tax collection of LGUs.
be explored. Legislative measures will also be supplemented
with capacity building activities to enable LGUs to
access other sources of financing, such as official
development grants.

3
Presidential Decree No. 1445.
4
The crafting of these transition plans will be guided by the framework being developed by the Core Technical Working Group (TWG) on Full
Devolution Efforts. The members of the TWG are DBM, National Economic and Development Authority, Department of Interior and Local
Government, Department of Finance, and Civil Service Commission.

Chapter 15 Ensuring Sound Macroeconomic Policy | 261

Explore optimal financing schemes including the domestic capital market (see Monetary and
multilateral and market financing. Financial Sectors) and building safeguards against
external risks (see External Sector) will complement
Encourage greater private sector involvement the strategies mentioned above.
to compensate for the narrower fiscal space.
Private sector participation through various Communicate the recovery plan and the
public-private partnership (PPP) modalities will temporary nature of deviation from fiscal
be tapped to ease pressure on the national program to calm markets. To manage market
government’s fiscal position. PPP can also expectations and ensure stability, the national
supplement the limited capacities in project government will carefully and clearly communicate
implementation at the LGU level. its recovery plan, as well as the temporary nature
of deviation from the medium-term fiscal program.
Explore optimal financing schemes including It is important to highlight that the deviation from
multilateral and market financing portfolio. the medium-term fiscal program is the result of the
The national government will explore various national government’s effort to mitigate the impact
financing schemes, including multilateral of the COVID-19 pandemic on the economy.
institutions to ensure sufficient resources are
available to support the economic recovery plan.
Resilient and inclusive monetary and
Furthermore, the Bureau of the Treasury will tap
financial sectors
the local market through local bonds issuance
and the offshore commercial markets through
Maintain a flexible inflation targeting framework
issuance of dollar-denominated debt papers,
for monetary policy formulation. The BSP
“panda” bonds, and “samurai” bonds for additional
will continue to refine its monetary operations,
funding sources.
including through the interest rate corridor system,
to enhance its capacity in guiding short-term
Recalibrate medium-term debt and contingent
market interest rates to move closely with the
liability management strategy.
policy rate. The amendments to the BSP’s charter
– particularly on allowing it to issue its own
Recalibrate debt and contingent liability
securities – will further expand its policy toolkit
management by: (a) continuing to adopt a
and give it more flexibility in determining the size
strategic and sustainable financing mix in favor of
and timing of its monetary operations. The BSP is
domestic sources and optimization of Official
ready to ease monetary policy settings further and
Development Assistance resource; (b) further
to deploy regulatory relief measures as needed,
diversifying funding sources and instruments;
especially amid the sustained uncertainty brought
and (c) improving the liquidity of the government
about by the COVID-19 pandemic. It will continue
securities market. These strategies can be
to vigilantly monitor domestic and international
supported by the Local Currency Debt Market
developments for any emerging risks to the outlook
Development Roadmap–a reform package
for both inflation and economic activity.
that focuses on deepening market liquidity,
improving price discovery, and enhancing
Pursue financial stability through macro-
regulatory oversight and surveillance.5 In addition,
prudential measures. Systemic risks have become
ensuring that risks related to contingent liabilities
more prevalent, given the increasing complexity
are well-managed could safeguard resilience of
of financial transactions. The Financial Stability
the country’s fiscal position to future shocks, such
Agenda is thus necessarily pre-emptive and will
as pandemics. Overall, continuously developing
be geared towards containing systemic risks

5
Bureau of the Treasury (2017). The Philippine Roadmap: Local Currency Debt Market Development. (Source: http://www.treasury.gov.ph/wp-
content/uploads/2017/10/Local-Currency-Debt-Market-Development-Roadmap_ppt-1.pdf)

262 | Updated Philippine Development Plan 2017-2022

such as the COVID-19 crisis within prudent Foster capital market development.
levels. Conducting macro-prudential stress test
exercises is essential in quantifying how risks Foster capital market development to secure
in the financial markets can be amplified a well-functioning financial market that is
and can create adverse implications for the real critical to financial stability. Developing the
economy, and vice-versa. The recently approved domestic capital market and increasing the
Macroprudential Policy Strategy Framework by efficiency in trading of securities will be facilitated
the Financial Stability Coordination Council by policies such as the use of forwards in lieu
(FSCC) and the Systemic Crisis Management of spot prices, consolidation of the current
Framework currently underway will provide exposures into fewer but deeper benchmark
guidance on how financial authorities will tenors, transparent and accessible pricing, and
execute the financial stability agenda and handle expansion of local investment options. Increased
systemic risks in the Philippine financial system. transparency such as through a timely disclosure
of delayed payments and contracts with cross-
Develop a more inclusive digital finance default provisions will help boost investor
ecosystem. To ensure the benefits of financial confidence. Passage of the Collective Investment
digitalization are optimized, particularly by Schemes (CIS) Act, will harmonize its tax and
vulnerable sectors and MSMEs, the country’s regulatory framework, provide an even playing
digital financial infrastructure will be developed, field, and the same level of protection to the
including the regulatory frameworks and investing public. The SEC is drafting the rules
platforms that facilitate the scope, scale and on Corporate Debt Funds, which will invest
reach of DFS. Among others, the Philippine primarily in debt papers of large corporations
Identification System (PhilSys), QR Ph, digital and medium-sized enterprises that need liquidity
banking,6 and open banking are essential pieces to support their capital and operating costs to
in improving this infrastructure. The widespread sustain their businesses, especially those affected
adoption of formal financial services remains a by the pandemic. On the other hand, the
priority and will be promoted by leveraging on passage of the proposed Package 4 of the
compelling use cases for digital payments (e.g., Comprehensive Tax Reform Program (CTRP)
bills payment, receipt of wages, social transfers, can level the playing field and remove tax
payment of government fees, etc.). This will be arbitrage between subsectors of finance by
complemented by consumer empowerment reducing and harmonizing withholding taxes
through digital financial literacy and consumer across instruments and minimizing friction costs
protection policies, including for OFs and their by eliminating the Initial Public Offering tax.
families (see Chapter 21).
Foster growth of green and sustainable finance
Encourage efficiency and innovation in market. The SEC has issued regulations and
microfinance and microinsurance for the guidelines on the issuance of green, social, and
domestic market. The ability of microfinance sustainable bonds that are aligned with ASEAN
institutions to provide digital financial services standards. Further, it has collaborated with
will be enhanced. Private insurance providers multinational corporations such as the Asian
will be encouraged to engage in the delivery of Development Bank (ADB) to seek assistance
microinsurance for agriculture, in addition to in developing the market. With the increasing
the existing micro-health and pre-need services. uptake of green bonds in the country, the agency
is currently studying the possible publication of

6
The Monetary Board approved the Digital Banking Framework which recognizes digital bank as a new bank category that is separate and distinct
from the existing bank classification. Digital bank is defined as a bank that offers financial products and services that are processed end-to-end
through a digital platform and/or electronic channels with no physical branches. (Source: https://www.bsp.gov.ph/SitePages/MediaAndResearch/
MediaDisp.aspx?ItemId=5617)

Chapter 15 Ensuring Sound Macroeconomic Policy | 263

guidance for issuing transition and sustainability- Use micro-prudential measures to promote
linked bonds to provide direction for issuers and financial institution soundness and nurture
assurance for both domestic and foreign investors. consumer protection. The resilience of financial
systems depends on sound regulations and
Support reforms and initiatives that aim to supervision from monetary authorities. Amid the
develop the domestic financial market and COVID-19 crisis, regulatory relief measures have
expand consumer protection. The proposed been implemented to support financial institutions
Financial Consumer Protection Law will provide and ensure liquidity flow into the economy.7
a comprehensive financial consumer protection Among others, these include the use of capital
regime and empower financial regulators to conservation and liquidity buffers to absorb
implement specific enforcement actions. The losses and support financing requirements of
establishment of digital supply chain financing, the overall economy and authorizing banks
credit risk database, and online collateral registry to book their allowance for credit losses on a
will enhance MSME access to finance. To implement staggered basis for a maximum period of five
the Personal Property Security Act, a personal years.8 Consistent with BSP’s prudential
property security registry will be developed by framework, requests for the extension of eligibility
the Land Registration Authority. The amendments period for these measures will be evaluated
to the Warehouse Receipts Law of 1912 seek and handled on a case-by-case basis. In this
to establish an online registry system where all manner, targeted and temporary supervisory
electronic warehouse receipts can be lodged and actions will be taken and blanket reduction or
accessed. Lastly, agriculture insurance, guarantee suspension of micro-prudential measures will be
programs, and other mechanisms that address avoided in dealing with the temporary impacts of
risks in the agriculture sector will be put in place the pandemic. Communication and transparency
to strengthen agricultural financing (see Chapter 8). between the financial institutions, regulators, and
the public will remain essential to provide a true
Develop the regulatory framework on Islamic picture of the financial position of an institution and
banking and finance. The Regulation and guide regulators in designing appropriate policy
Organization of Islamic Banks Act was signed responses.9
into law in 2019. There were also provisions on
Islamic banking contained in the Bangsamoro Strengthen monitoring of insurance sector and
Organic Law. The BSP has issued drafted circulars expand information campaigns on available
on the guidelines on the establishment of products and services. The economic impact of
Islamic banks and Islamic banking units, and COVID-19 outbreak on the insurance sector is
the guidelines on the Shari’ah Governance significant and multi-faceted. As the COVID-19
Framework. In addition, there is an ongoing pandemic accentuated the need for insurance
technical assistance from the ADB to expand services and products, intensified informational
Islamic financial services in the Philippines, campaigns on available products and services
which include capacity building programs to will be necessary to reach the public. Improved
discuss Islamic finance. insurance literacy will help protect consumer
interest and enable them to make sound and
well-informed financial decisions. The rise in
insurance claims,10 coupled with the possibility

7
Memorandum No. M-2020-039 dated 4 May 2020. (Source: http://www.bsp.gov.ph/downloads/regulations/attachments/2020/m039.pdf)
8
Memorandum No. M-2020-008 dated 14 March 2020. (Source: http://www.bsp.gov.ph/downloads/regulations/attachments/2020/m008.pdf)
9
International Monetary Fund. (May 13, 2020). Banking Sector Regulatory and Supervisory Response to Deal with Coronavirus Impact (with Q
and A). (Source: https://www.imf.org/en/Publications/SPROLLs/covid19-special-notes#mfp)
10
Insurance Commission Press Release (June 4, 2020). Based on the survey conducted by the Insurance Commission, total COVID-19 related
payouts amounted to PHP 326.95 million, of which PHP 19.68 million were ex-gratia payments. The survey was conducted from April 16 to May
8, 2020.

264 | Updated Philippine Development Plan 2017-2022

of insurance companies including pandemics in merchandise exports and imports are expected
the coverage of their future policies, will likely to decline in 2020 by 16 percent and 18 percent,
result in an increase in insurance premiums in respectively. The pandemic has also highlighted
the near-term. The possible surge in demand for the significance of diversifying products and
insurance products may give rise to insurance markets to reduce vulnerability to supply
frauds, which will affect both consumers and constraints and shifts in production chains.
insurers. As such, there is a need to strengthen
the monitoring of the insurance sector to avoid To ensure that utilization of existing preferential
capital and liquidity problems that could lead to market access is enhanced and facilitated, the
insolvency of insurance companies and to ensure reach of advocacy programs will be expanded
consumer protection. through information sessions and greater use of
data-driven analytics. This will be complemented
by the development of a database for utilization of
Sustainable and resilient external sector
FTA agreements and an assessment tool to
identify gaps and formulate initiatives to enhance
Maintain adequate foreign exchange reserves and
utilization. The compliance of partner countries
market-determined exchange rate. The country’s
with their FTA commitments will be closely
flexible exchange rate policy should provide
monitored. The government will pursue
macroeconomic stability amid external headwinds.
negotiations to expand or lock-in current
In addition, the BSP implements measures to
preferential concessions, such as the review of
cushion the impact of sharp peso movements
the Philippines-Japan Economic Partnership
such as maintaining a healthy level of forex (FX)
Agreement and ASEAN+1 Free Trade Agreement.
reserves as a buffer, reviewing and adjusting
In addition, active negotiations will be carried
macro-prudential measures, and using liquidity-
out with existing trading partners, such as in the
enhancing and management tools such as the
proposed Regional Comprehensive Partnership
United States (US) dollar repo facility, exporter’s
Agreement, the Philippines-Korea Free Trade
dollar and yen rediscounting facilities, and
Agreement, the Philippines-EU Free Trade
the enhanced Currency Rate Risk Protection
Agreement, and the proposed agreements with
Program, among others. Lastly, amid the
the USA.
COVID-19 pandemic, the BSP implemented
operational relief measures for FX transactions
The existing governance structure on negotiations
to help stabilize market conditions and restore
for international trade agreements will be
confidence. These relief measures, which aim to
strengthened. Effective coordination among
facilitate the public’s access to FX resources of
different interagency bodies involved in
the banking system to finance legitimate
international trade agreements, timely monitoring
transactions, are effective only for the duration
and assessment of gains and challenges, and
of the declaration of any form of “community
capacity building activities to develop a continuing
quarantine” by the Office of the President,
pool of trade negotiators, will enhance the
or as may be extended by the BSP.
country’s capacity to forge strategic
trade agreements.
Scale up and diversify products and markets.
The government is presenting the Philippines
Strategically participate in bilateral, regional, as a complementary host country for the
and global integration, and optimize the production of health products, electrical
utilization of existing free trade agreements equipment and appliances, metal products,
(FTAs). Trade tensions between major trading automotive and auto parts, machinery and
partners US and China exacerbated by mobility equipment, optical lenses, and furniture to firms
restrictions to stem the rise in COVID-19 has that were either affected by the COVID-19
dampened trade (see Chapter 2). Philippine pandemic in China or the trade tension between

Chapter 15 Ensuring Sound Macroeconomic Policy | 265

China and the USA. The government will also DTI and DFA will likewise bolster a feedback
leverage the country’s preferential access to the mechanism with diplomatic posts, trade,
US and EU (through the Generalized System of and agricultural attaches to obtain accurate
Preferences [GSP] scheme). information on market access opportunities,
especially in non-traditional but strategic
Enhance economic and technical cooperation markets, and provide market relevant and timely
with trading partners and pursue strategic information in a single website. Platforms such as
partnerships with other non-traditional the Philippine Trade Repository and the TradeLine
trading partners. Enhancing existing will be made more user-friendly and refocused on
cooperation with major partners while forging practical content for exporters and potential buyers.
new partnerships and engaging non-traditional
but strategic partners are vital approaches Consistent national branding strategies will be
to strengthen the country’s position in these utilized across goods, services, and investment
markets and open up new opportunities for our sectors to ensure maximum recall and effectivity.
exporters. Fragmentation of global trade Design-centric and quality-driven products will
and supply linkages and the trade measures be promoted in niche markets. For instance,
implemented by various countries during the sustainable and eco-friendly indigenous materials
pandemic (see Chapter 2) also point to the need (such as bamboo) can be used for market segments
to expand cooperation with traditional and with a specific preference for these types of
non-traditional trade partners. Regional products. Moreover, green certification among
stockpiling and operationalizing of a logistics MSMEs will be aggressively promoted by the
scheme to ensure supply of essential goods DTI. Green-trepreneurs will also be encouraged
will be explored. The country will also engage to become global by supporting the conduct
non-traditional partners in Eastern Europe, of the Green Business Forum, among others.
Northern and Central Asia, Middle East, Green certification provides an opportunity for
Latin America, and Africa through dialogue MSMEs to gain competitive advantage against
mechanisms or possible trade agreements. large companies as global demand for green
products are steadily on the rise.11 Support for the
Intensify promotion of Philippine exports in use of green certification among MSMEs will be
digital platforms and targeted marketing efforts provided.
for international leads. As digital transactions
become the new norm, firms must be able to harness Participation in investment promotion events
the potential of the internet in conducting their or high-level outbound missions to Korea,
businesses. Local exporters will be capacitated to Japan, China, Taiwan, and the US may be timed
increase their online presence and be sensitized to with bilateral FTA negotiations or meetings.
potential changes in market preferences (e.g., shift
in demand to comfort wear, electronics, protective
Improve overall climate for export development.
equipment). In lieu of physical trade missions and
fairs, online business to business (b2b) matching
Continuous structural reforms will serve as the
events and realistic virtual trade fairs with improved
backbone of ongoing efforts to develop a better
visual content and detailed product descriptions
business environment and create development
will be considered as avenues for trade promotion.
opportunities.

11
Green products are those that are considered as natural, healthy, eco-friendly, and socially responsible. These also include products that carry
eco-labels confirming that the products meet voluntary sustainability standards or international private standards through third-party certification
such as organic-certified, fair-trade-certified, culture-based certified (i.e., Halal, Kosher, vegan), environmentally-sustainable (i.e., cruelty-free,
dolphin safe, UTZ certified, Forest Stewardship Council-certified, Scientific Certification Systems, Inc.-certified), and have natural content.

266 | Updated Philippine Development Plan 2017-2022

Strengthen supply side interventions to improve While Information Technology and Business
the quality of Philippine exports. The issuance Process Management (IT-BPM) continues to
of a National Quality Infrastructure Law will be lead the services exports sector, it needs to
pursued to establish the country as a provider innovate to stay ahead.12 The government will
of quality products (see Chapter 9). To ensure encourage investments in skills development to
supply chain resilience, better business continuity tap into higher-value services like animation, data
planning in the export sector will be supported. analytics, and cloud computing by strengthening
Logistics reforms such as strategic warehousing its industry-academe linkages. The country needs
as well as cold chain systems will be prioritized. to harness its comparative advantage in emerging
An integrated website tracking real-time creative industries (i.e., heirloom and furniture
information on cargo release, availability of production, weaving, advertising, architecture,
supply, production, and inventory is useful for the culinary arts, film, performing and visual arts,
national government and LGUs, as well as the private animation, and game development), given
sector to avoid disruptions and uncoordinated these areas (see Chapter 9). The Shared Service
supply flow. A registry or database of importers Facilities Project of the DTI will improve the
and traders will also be developed for seamless competitiveness of MSMEs (see Chapter 9).
issuance of permits and necessary travel
documents to ensure a steady supply and keep Engaging the private sector to invest and set up
track of inventories particularly during more agri-based industries will also help in
emergencies. The present warehouse receipt developing agricultural products for exports
system will be overhauled to include the creation (see Chapter 8). Programs that link MSMEs to
of an online electronic warehouse receipts large companies that are part of or operate their
registry system. own global supply and/or value chains will be
sustained (see Chapter 9).
Upgrading of production processes will be
pursued to integrate automation of operations The government will prioritize logistics reforms
as well as put in place innovative and alternative that will rationalize the freight system and establish
business processes that will become the new strategic warehousing, as well as cold chain
standard on engaging clients, buyers, and suppliers. systems. Enterprises will be encouraged to
The digitalization of these operations will enable rethink and adjust production and storage
the Philippines to increase the reach of its products, facilities to ensure optimum access with the least
develop product lines that respond to consumer disruptions. Development of partnerships with
demand, promote trade through virtual tours, local suppliers to reduce vulnerabilities will be
discover better marketing leads, and reallocate supported. The formation of a Supply Chain and
other resources to diversify and develop Logistics Committee which will be responsible
non-traditional exports. for identifying and implementing programs that
will improve the flow of goods will be considered.
Through the Inclusive Innovation Industrial
Strategy (i3S), a competition-innovation- Amendments to the Customs Modernization and
productivity relationship will be pursued to Tariff Act (RA 10863) to allow for the expeditious
address a highly-liberalized market environment process of tariff modifications in times of crises
by growing innovative and globally-competitive will be considered to augment local supply.
manufacturing, agriculture, and services sectors Likewise, amendments to the Special Economic
to combat challenges as a result not only of Zone Act of 1995 (RA 7916) may be considered to
globalization but also of rising regional economic relax export requirements pertaining to threshold
integration. values for domestic sales in cases of emergency

12
IT-BPM covers multiple information technology and business process activities while Business Process Outsourcing (BPO) only covers contact
centers (i.e. voice and non-voice) outsourcing services.

Chapter 15 Ensuring Sound Macroeconomic Policy | 267

as declared by the President and subject to Full implementation of the Ease of Doing Business
applicable laws, rules, or regulations. Further, and Efficient Government Service Delivery Act
incorporating amendments related to provisions will be pursued to streamline processes or
that will address alternative work arrangements regulations that impede exports. The Public
may also be considered. Currently, issuances from Service Act will also be pushed, which will
the DOLE13 and Memorandum Circulars14 issued allow foreign investments in transport and
by the PEZA enable work from home arrangements communication. This, in turn, can help reduce
given the current situation. shipping costs (see Chapter 9). Other legislations
that will allow foreign competition and improve
Develop a holistic communication management the competitive environment such as the
system and increase market intelligence Foreign Investments Act and the Retail Trade
responsive to dynamic consumer preferences. Liberalization shall also be pursued.
The DTI, DA, and BOC, will work together with
the DILG, in establishing a crisis communication Development of mechanisms to track initiatives
management system which shall be primarily related to regulations will enable the country
designed to facilitate the release and enhance to align regulations with other countries and
monitoring of shipments and transport of basic identity necessary capacity building initiatives
and critical goods from ports to LGUs. The and norm-setting. The enforcement of science-
joint undertaking will strengthen the lines of based sanitary and phytosanitary (SPS) protocols
communication between the national government, will be strengthened to guard against various
LGUs, and the private sector enabling the diseases that may be brought in through imports.
immediate dissemination of critical information Relevant agencies such as the Bureau of
regarding supply and logistical concerns on basic Quarantine and other regulatory agencies shall be
necessities and critical goods during emergencies. equipped with detection equipment and the hiring
The development of a compendium of standard of properly trained personnel.
operating procedures in times of crisis shall also
be among the group’s primary outputs as it shall The government will also provide adequate
serve as a useful resource for future emergency Information and Communications Technology
situations. and logistics infrastructure to achieve connectivity
and facilitate the movement of traded goods
Pursue full implementation of enabling laws, (see Chapter 9). This will allow for the use of
support amendments to investment-related electronic Certificates of Origin and electronic SPS
laws, and ensure timely implementation of trade Certificates under the ASEAN Single Window to
facilitative platforms. Implementation of the reduce trade costs.
TradeNet will be accelerated to ensure efficient
government services and a robust monitoring The Philippine Trade Facilitation Committee will
and evaluation framework that will facilitate the also be established to improve coordination of
movement of cargo through the digitalization of trade facilitation regulations and procedures in
processes and payments. The new system shall line with the country’s WTO commitments.15
also curb trade costs and create ease in securing
trade documents.

13
DOLE Labor Advisory 2020-17 issued 16 May 2020, “Guidelines on the Employment Preservation upon the Resumption of Business Operation”.
14
PEZA Memorandum Circular 2020-011 dated 5 March 2020, “PEZA Assistance to Ecozone I.T. Enterprises in Responding to COVID-19
(Coronavirus Disease).”
15
This is a commitment under Article 23.2 of the World Trade Organization Trade Facilitation Agreement.

268 | Updated Philippine Development Plan 2017-2022

Accelerate provision of targeted, focused and The DTI under the Regional Interactive Platform
comprehensive packages of support for specific for the Philippine Exporters Plus (RIPPLES Plus)
products and services sectors. and Philippine Halal Export Development and
Promotion Program (PHEDPP) shall likewise
Target support to specific sectors that have continue to coordinate with other trade promotion
great potential to improve the country’s external agencies and the private sector to undertake
position. A comprehensive package of support export development and marketing activities to
measures related to product development, address the need to expand the supply base of
research, capacity building, and marketing internationally-competitive Philippine export
approaches will be provided to assist exporters products and services and to provide intensified,
in restarting operations in a calibrated manner purposive, and practical assistance.
while maintaining minimum health standards.
To improve the response to product demand shifts
in the long-term, capacity-building programs
through education and training activities for
exporters shall be implemented to fully tap
technology-enabled business-to-business (B2B)/
e-commerce platforms and engage in trade
marketing activities despite the pandemic.
These would include tapping the technology-
enabled platforms in the conduct of webinars,
web conferences, and online media
advertisements, and the creation of website
and visual content on online trade
promotion activities. Among the priority sectors
will be electronics, food (including urban
farming), IT-BPM, tourism, education, healthcare,
logistics, construction, personal protective
equipment (PPE), solo mobility solutions/
transport-related products and services, and
creative industries.16

Industry roadmaps that will include the

development of business continuity plans for
promising export-oriented industries will
be developed to better prepare firms for the
challenges of the new normal. The Board of
Investments will continue to work with the
industry, specifically for export-oriented and
priority industries, in coming up with recovery
plans and preparing/updating of industry
roadmaps to prepare and assist firms for changes
brought about by the new normal.

16
Includes film, animation, game development, graphic arts and design, and advertising,

Chapter 15 Ensuring Sound Macroeconomic Policy | 269

Legislative Agenda
Table 15.2 Updated Legislative Agenda to Sustain a Sound, Stable, and Supportive Macroeconomic
Environment

LEGISLATIVE AGENDA RATIONALE

Fiscal Sector

This seeks to amend the National Internal Revenue Code of 1997 to achieve a simpler, fairer, and more
efficient tax system.
Passage of the remaining packages
of the Comprehensive Tax Reform Among the packages, Package 2 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE)
Program1/ is a priority. The measure aims to institute reforms in the corporate tax system (e.g., reduce corporate
income tax rate) and the fiscal incentives system, directing them toward strategic growth industries, to
attract greater foreign investment and generate more jobs.

This will ensure a level playing field between traditional industries and the digital economy given the
Digital Taxation Framework
expected shift of the private sector to online transactions amid the new normal.

The bill aims to introduce reforms in the Military and Uniformed Personnel (MUP)’s pension system, which,
Unified Pension Reform Bill among others, include (a) mandatory contribution scheme; and (b) increase in the compulsory retirement
age, to curb the ballooning pension costs and to ensure fiscal sustainability.

The proposed legislation aims to institute sound Public Financial Management (PFM) practices to promote
Budget Modernization Bill
transparency, accountability, and efficiency in the use of public resources.

Amendment to the This will allow the exemption of key priority infrastructure projects from the ban during the election period
Omnibus Election Code in order to ensure the timely implementation of these projects.

Update the 1976 Government This measure seeks to revise the outdated provisions of the Government Auditing Code considering
Auditing Code of the Philippines the technological advancements, innovations, and other changes in the conduct of government auditing
(Presidential Decree 1445) across the globe.

The proposed bill aims to institute the income classification of provinces, cities, and municipalities,
LGU Income Classification Bill to make it reflective of LGUs’ financial capability, particularly their ability to generate locally-sourced
revenues.

Key legislative measures that will improve local government finance such LGU Property Insurance Bill (see Chapter 19) and Amendment to the
Local Government Code of 1991 (see Chapter 5).

Monetary and Financial Sector

This will empower financial regulators to formulate and implement rules and regulations, conduct
Enactment of the Financial Consumer
surveillance and examination, monitor supervised entities, and have enforcement powers relative
Protection Law
to financial consumer protection.

Amendments to the This will make financial institutions comply with international standards on transparency and help
Bank Secrecy Law facilitate investigations on tax evasion, money laundering and other financial crimes.

270 | Updated Philippine Development Plan 2017-2022

 LEGISLATIVE AGENDA RATIONALE

The proposed amendments will enable SEC to enforce its rules and regulations relative to
Amendments to the
its supervision over the corporate sector, the capital market participants, the securities and
Securities Regulation Code
investment instruments market, and the investing public.

The bill will provide a comprehensive regulatory and legal framework for Collective Investment
Collective Investment Schemes Bill
Schemes.

Amendments to the This will overhaul the present warehouse receipt system and provide an online registry system
Warehouse Receipts Law where all electronic warehouse receipts can be registered and accessed.

This seeks to amend the Agri-Agra Reform Credit Act of 2009 (RA 10000) to strengthen rural
Amendments to the Agri-Agra Law development by providing for a holistic approach that takes into account the broader agriculture
financing ecosystem and rural community development requirements.

Financial Institutions The bill aims to maintain the financial health of banks and other financial institutions in order to
Strategic Transfer Bill cushion the adverse economic impact of the COVID-19 pandemic.

Government Financial Institutions

Unified Initiatives to Distressed GUIDE will provide financial assistance to firms that are strategically important to economic
Enterprises for Economic Recovery recovery, in view of their role in providing employment and supporting the Philippine economy.
(GUIDE) Bill

External Sector

Amendment of the Customs

This will allow for the expeditious process of tariff modifications in times of crisis in order to
Modernization and Tariff Act
augment local supply and ensure that essential medical supplies are stable.
(RA 10863)

The proposed amendments aim to consider relaxing export requirements and incorporate
Amendments to the Special
provisions which will address telecommuting and work from home arrangements as a response
Economic Zone Act of 1995
to the pandemic

Key legislative measures that will promote a sustainable and resilient external sector include measures listed under Chapter 9 such as National
Quality Infrastructure Bill, Amendment to the Foreign Investment Act, and Amendment to the Retail Trade Liberalization Act.

1/
Also includes Package 2+: Mining Fiscal Regime, Package 3: Real Property Valuation, and Package 4: Passive Income and
Financial Intermediary Taxation

Chapter 15 Ensuring Sound Macroeconomic Policy | 271

16
Promoting
Competition
CHAPTER 16

Promoting Competition
Competition makes markets perform better and promotes inclusive economic growth. It
induces producers to reduce costs, innovate, and widen the range of goods and services
available to consumers. It allows a level playing field where small entrepreneurs and firms,
apart from larger players, may operate and grow. Competition raises productivity, expands
economic opportunities, increases people’s real incomes, and improves overall welfare. It
especially benefits the poor through job creation and lower prices made possible by the entry,
growth, and expansion of efficient firms and through greater variety and higher quality of
goods and services.

The Philippine Development Plan (PDP) 2017-2022 reinforces the Philippine Competition Act
(PCA) through strategies that aim to foster an environment that penalizes anti-competitive
practices, facilitates entry of players, supports regulatory reforms, and improves trade policies
to stimulate investments and innovation and boost competitiveness.

As the country reels from the economic consequences of the COVID-19 pandemic, there is a
need to refocus the government’s strategies and interventions towards a healthy and resilient
Philippines. Hence, this chapter outlines strategies and interventions that stimulate economic
recovery and restore market efficiency to ensure a more resilient, inclusive, and competitive
market.

Assessment and Challenges

Assessment: The unrelenting efforts of the difficulty in covering overhead costs, and supply
government and its proactive interventions to chain interruptions. While work-from-home
sustain healthy competition in the market have arrangements and digitalization made it possible
yielded positive results. The performance of the for business operations to continue, these worked
Philippines in terms of the Global Competitiveness for only a small percentage of firms in the country.
Index (GCI) from 2016 to 2018 recorded an Hence, in our transition to the new normal, the
improvement, although with a slight drop in 2019. government needs to refocus its interventions to
This notwithstanding, the country’s performance in fast-track economic recovery to ensure that markets
terms of product market efficiency and market size are resilient, inclusive, and competitive. Financial
as well as business dynamism vis-à-vis the annual and technical support should be provided to firms
plan target for 2019 posted notable improvements. especially MSMEs to help them recover from the
However, in the face of the COVID-19 pandemic, adverse effects of the pandemic and be able to
micro, small, and medium enterprises (MSMEs) thrive in the market. Government interventions
had to temporarily close due to community should be carefully considered to ensure a level
quarantine restrictions, and their cash flow playing field and avoid market distortions. The
constraints have resulted in increased debt, current regulatory framework should be reviewed

274 | Updated Philippine Development Plan 2017-2022

to ensure that government regulations do not pose Memorandum Circular on the NCP that was
a barrier for firms to enter and re-enter the market signed by the National Economic and Development
and hamper competition. Similarly, potentially Authority (NEDA) and the Philippine Competition
anti-competitive agreements should be examined Commission (PCC). Considering the economic
to prohibit price fixing, output limitation, market consequences of the pandemic, improving the
sharing, and activities that abuse dominant position. regulatory environment becomes even more crucial
to help MSMEs enter or re-enter the market and
Challenges: Advancing pro-competitive policies thrive. Strong enforcement against cartels and
remains one of the challenges in leveling the other anti-competitive practices is also essential to
playing field. The implementation of the National ensure consumer welfare protection. Awareness of
Competition Policy (NCP) requires a whole-of- competition, especially in the regions remains low,
government effort to ensure that government thus continuous advocacy of the PCA should be
responses and interventions follow competition pursued to increase public awareness not only of the
principles to address market failures and PCA but also of the vital role of PCC in promoting
distortions especially those arising from the competition.
COVID-19 pandemic. To this end, the issuance
of an Administrative Order by the President is
being sought to lend more strength to the Joint

Targets
The remaining plan period is geared towards addressing the gaps and challenges in promoting and enforcing
competition while taking into consideration the challenges arising from the new normal.

Table 16.1 presents the baseline values (2016) for each core indicator as well as the plan targets (in percentile
rank) for 2020 up to the end-of-plan targets in 2022.

Table 16.1 Updated Plan Targets to Promote Competition

BASELINE VALUE TARGETS

INDICATOR
(YEAR) 2020a 2021 2022 EOP

59
63 63 64 64
Global Competitiveness Index (GCI) ranking improved (Top 41%)
(Top 37%) (Top 37%) (Top 36%) (Top 36%)
2016

62
69 70 71 71
Business Dynamism improved b (Top 38%)
(Top 31%) (Top 30%) (Top 29%) (Top 29%)
2016

28
63 62 65 65
Product Market Efficiency improved (Top 72%)
(Top 37%) (Top 38%) (Top 35%) (Top 35%)
2016

17
20 21 22 22
Extent of Market Dominance improved c (Top 83%)
(Top 80%) (Top 79%) (Top 78%) (Top 78%)
2016

Chapter 16 Promoting Competition | 275

 BASELINE VALUE TARGETS
INDICATOR
(YEAR) 2020 a
2021 2022 EOP

78
80 78 80 80
Market Size improved (Top 22%)
(Top 20%) (Top 22%) (Top 20%) (Top 20%)
2016

15
29 32 35 35
Burden of Government Regulation improved d (Top 85%)
(Top 71%) (Top 68%) (Top 65%) (Top 65%)
2016

68.56
Starting a Business Score improved e 83 100 100 100
2016

a
2020 targets were set prior to onset of the COVID-19 pandemic; 2021, 2022, and end-of-plan targets were adjusted to take into
consideration the ill effects of the pandemic.
b
Business Dynamism is one of the 12 pillars of the GCI under "innovation and sophistication" sub index measured in terms of
supplier quality and quantity and value chain breadth, among other indicators.
c
Extent of Market Dominance is an additional indicator which the Planning Committee for Chapter 16 deems contributory in
ensuring healthy competition in the country. Extent of market dominance is an index under product market efficiency pillar that
captures the characteristics of corporate activity in a country: either dominated by few business groups or spread among many
firms.
d
Burden of Government Regulation is a substitute for the old indicator, “Product Market Regulation,” which has been removed
due to the issue in the regularity of its release. It measures government performance vis-à-vis existing regulations for businesses
in complying with government administrative requirements (e.g., permits, regulations, reporting).
e
Starting a Business is a substitute indicator for “Regulatory compliance costs incurred by firms reduced (PHP)” which
has been removed due to the absence of a standard methodology in measuring regulatory compliance cost. It is one of the
World Bank’s ease of doing business indicators and is deemed more appropriate in measuring the reduction of limits to
entrepreneurship.

276 | Updated Philippine Development Plan 2017-2022

Strategic Framework
In light of the ill effects of the COVID-19 pandemic, playing field where small business players alongside
the revised strategic framework presents strategies larger ones may operate and thrive. Improving
aimed at hastening economic recovery. Specifically, the regulatory environment to reduce barriers to
it focuses on sustaining promotion of competition entry and facilitate the re-entry of firms that may
and implementation of the PCA and other have closed down as a result of the community
competition-related issuances to create a level quarantine restrictions will likewise be pursued.

Figure 16.1 Strategic Framework to Promote Competition

Chapter 16 Promoting Competition | 277

Strategies
Improving consumer welfare Improving market efficiency
Diminishing anti-competitive practices Reducing barriers to entry and re-entry

Strengthen investigation, detection, and Conduct market scoping studies in priority

prosecution of conducts and agreements that sectors to facilitate competition among MSMEs.
may substantially prevent, restrict, or lessen Considering the economic consequences of the
competition. The investigation of potentially COVID-19 pandemic, government will provide
anti-competitive behavior while maintaining an financial and technical support to MSMEs to
environment where businesses and GOCCs can enable them to thrive in a market participated
compete on a level playing field will be pursued. in by larger and more established foreign and
The impact of the actions of firms on market domestic players. For MSMEs to better respond to
efficiency, competition, and consumer welfare will increasing customer expectations and competition
be quantified. This information will be useful to the in the market, digitalization of business processes,
public as well as policymakers in understanding the capacity building on formulating and implementing
seriousness of the competition problems in certain business continuity plans, and upskilling and
sectors and of the benefits that could be derived retooling of the workforce should be adopted. PCC,
from inhibiting anti-competitive practices. NEDA, and DTI will continue to conduct market
scoping studies in priority sectors that will provide
Noting the likelihood of firms forming cartels in comprehensive market analysis and identify
the guise of corporate re-structuring and forming concerns that need to be addressed. Other strategies
monopolies by way of mergers or acquisitions to ensure the welfare and development of MSMEs
during the pandemic, PCC will strictly monitor the are cross-referenced in Chapter 9.
prevalence of acts in violation of the PCA and other
competition-related laws and issuances to protect Improve the regulatory environment by
the welfare of firms and consumers. It will heighten addressing restrictive laws and regulations that
efforts in addressing anti-competitive practices in hamper competition. To increase the number
the new normal to ensure that firms do not engage of business players in the market and facilitate
in cartelistic agreements, abuse of dominance, and their entry and re-entry, especially MSMEs, the
other anti-competitive conduct. government will address barriers to entry that stem
from government regulation, patent protection,
On the other hand, collaborative efforts among start-up costs, education, licensing requirements,
competing firms to ensure more effective and or technological challenges.
efficient delivery of essential services and articles
of prime necessity in the new normal may In the services sector, the government will open
be considered, subject to the PCA and other sectors to foreign players and consider the enactment
competition-related laws and issuances. of legislation that will ease requirements for the
practice of professions in the country to not only
OFC will gear towards a virtual platform for the increase competition but also push local players to
conduct of training for prosecutors, investigators, further improve their goods and services. Opening
and staff to better enhance institutional capacity. the telecommunications sector, for instance, will
OFC will fully implement the recently issued Rules ensure more reliable internet services in the country
Implementing the Criminal Provisions of the PCA, and digitalization of businesses, especially of small
which includes provisions for electronic filing of business players and MSMEs in the new normal.
complaints and applications for criminal leniency.

278 | Updated Philippine Development Plan 2017-2022

In the construction sector, the government will implementation of the Central Business Portal
address public restraints by reviewing regulations (CBP) as mandated by the Ease of Doing Business
that hinder competition such as the nationality- and Efficient Government Service Delivery Act of
based distinction, which creates an uneven playing 2018 (EODB-EGSD Act). The CBP will facilitate
field between local and foreign contractors. The faster and more convenient ways of registering as
subsequent strengthening of regulatory quality well as securing and submitting other business-
within the industry will effectively reduce the related permits. It will promote interconnectivity,
formal and informal costs of doing business that integration, and linkage of the systems developed
held back sector efficiency and performance far by national government agencies and LGUs.
below its inherent potential for so long.
ARTA will be strengthened in terms of regulatory
To address other technological challenges, the management practices to include reducing
government will continue to support research and unnecessary regulatory burdens and requirements.
development efforts to further pursue technological To achieve this, ARTA will continue coordinating
advancements in the country. with relevant government agencies for the
  implementation of Program NEHEMIA (National
Institutionalize the use of the Competition Effort for the Harmonization of Efficient Measures
Assessment Manual/Toolkit. PCC will adopt of Inter-related Agencies), which commenced
the Competition Assessment Manual/Toolkit in the first quarter of 2020. NEHEMIA is an
in identifying and reviewing potentially anti- interagency program that aims to streamline and
competitive laws and regulations that address reengineer inter-agency processes affecting priority
several development objectives but have sectors of economic and social significance. The
unwarranted consequences on market competition. priority sectors for the 2020 cycle of Program
This manual/toolkit will be a capacity-building NEHEMIA are: (a) food and pharmaceuticals, (b)
tool for government agencies to enhance their telecommunication towers, (c) power/energy, (d)
understanding of pro-competition interventions. housing and construction, and (e) logistics.
It will enable government agencies to determine
the impact of these laws and regulations on market Establish the Philippine Business Databank
competition, and possibly develop alternative (PBD). PBD will be established pursuant to the
regulations that are able to achieve development EODB-EGSD Act to provide the government a
goals with the least harm to competition. To ensure single point of access to data and information
improvement of the quality of regulations, the of registered business entities to verify their
principles and steps under the manual/toolkit will existence, validity, and other relevant information.
be integrated into the RIA Manual being formulated It will include the Philippine Standard Industrial
by the Anti-Red Tape Authority (ARTA). Classification, a detailed classification of industries
prevailing in the country according to the kind of
Reducing limits to entrepreneurship productive activities undertaken by establishments.
With this in place, PBD will serve as a medium in
Streamline business registration and permitting implementing a more streamlined and uniform
processes. To minimize the number of transactions procedure for the issuance of business-related
and physical contact with various government licenses, clearances, permits, certifications, or
agencies during business registration and authorizations. It will facilitate online submission
submission of business-related requirements, ARTA of documentary requirements and processing of
will continue to promote the establishment and requests. This arrangement will facilitate ease of
implementation of One-Stop Shops and adoption of doing business, enticing more firms to participate
online registration system across the government. in the market at the local level. It also enhances
ARTA will continue to coordinate with the the zero-contact policy, curbing corruption and
Department of Information and Communications ensuring public health and safety in view of the
Technology and monitor the development and COVID-19 pandemic.

Chapter 16 Promoting Competition | 279

Cross-cutting Strategies continue to review the mandates of GOCCs within
their respective jurisdictions and make appropriate
Issue and implement the NCP. A Joint recommendations to the President to ensure, among
Memorandum Circular embodying the NCP has others, the separation of proprietary and regulatory
been issued by NEDA and PCC. However, to ensure activities. Moreover, GCG and DBM will lead in
a whole-government effort and support to promote the drafting of guidelines on the grant of subsidies
competition, the issuance of an Administrative in favor of GOCCs based on an assessment of the
Order by the President will be sought. nature, form, extent, and costs and benefits of these
government subsidies and interventions and their
The NCP prescribes guidelines to steer regulations impact on the business environment. They will also
and administrative procedures of government implement regulatory and non-regulatory measures
agencies to level the economic playing field. It will to neutralize any advantage or disadvantage that
direct and guide all national government agencies, may accrue due to public sector ownership.
government-owned and controlled corporations
(GOCCs), and local governments to ensure that Lastly, under Enforcement of Competition-related
all policies, rules and regulations, actions, and Laws and Issuances, the government will uphold
interventions are not anti-competitive. the original and primary jurisdiction of PCC
over issues involving cartel agreements, abuse of
The NCP highlights three key elements: Pro- dominance by firms, anti-competitive mergers and
competitive Policies and Government Interventions; acquisitions, and other anti-competitive behaviors.
Competitive Neutrality; and Enforcement of In support of the mandate of PCC, all government
Competition-related Laws and Issuances. agencies will identify specific actions within their
areas of responsibility to promote competition and
Under Pro-Competitive Policies and Government eliminate anti-competitive behavior and undue
Interventions, the government will ensure that all regulatory burdens on competition.
policies, laws, rules and regulations, issuances,  
and other interventions do not unnecessarily Strengthen capacity of relevant agencies to foster
distort competition. It will amend or repeal anti- competition. PCC and the Office for Competition
competitive laws and regulations and factor in (OFC) under the Department of Justice will
market competition in the formulation of new continue to implement capacity-building programs
policies. The adoption of this element in the design aimed at strengthening the technical competencies
of government interventions will reduce barriers of the government in developing interventions
to entry and re-entry as well as reduce limits and measures to address anti-competitive and
to entrepreneurship. This will be beneficial in other pernicious practices affecting the supply,
facilitating the market participation of more firms, distribution, and movement of goods and services,
especially MSMEs, which are among the most especially during emergencies. These programs
affected by the COVID-19 pandemic. will be made available through in-person training
and classes (subject to strict physical distancing
Under Competitive Neutrality, the government will protocols) or through distance learning such as
ensure that GOCCs and private sector businesses online courses and webinars.
compete on a level playing field. Unless it can be
clearly demonstrated that greater public interest will Increase understanding and awareness of market
be served and the undertaking lacks commercial competition, the PCA and PCC. Household
viability, GOCCs will not enjoy net competitive surveys show there is still low appreciation and
advantages or disadvantages over private sector awareness of market competition, including the
businesses simply because of public sector PCA and PCC. While it has conducted regional
ownership. To promote competitive neutrality, the roadshows before the COVID-19 pandemic, PCC
Governance Commission for GOCCs (GCG) and will sustain its grassroots campaign. It will form
Department of Budget and Management (DBM) will strategic partnerships with education institutions,

280 | Updated Philippine Development Plan 2017-2022

among others, and utilize traditional as well as social reduction of administrative fines to any entity that
media to conduct advocacy initiatives that can help participates in an anti-competitive agreement1 but
increase awareness on market competition and its offers to provide information and full cooperation
benefits to the public. Through these campaigns and during the investigation and prosecution of the
advocacy initiatives, PCC will also engage citizens violation. As one of the tools used by competition
to play an active role in monitoring and reporting agencies in detecting cartels, this program facilitates
anti-competitive practices through a complaint the reporting of cartel members of their anti-
desk via trunkline and online platform. competitive conduct to aid PCC and OFC in the
investigations and prosecution. Citizens will also be
Expand the mechanism for various sectors to encouraged to report violations of competition to
report potential violations of competition. PCC the said agencies.
will sustain its implementation of the Leniency
Program, which offers immunity from suit or

Legislative Agenda
To strengthen the country’s promotion of market competition, the government will work towards the
passage of the following key legislation:

Table 16.2 Legislative Agenda to Promote Competition

LEGISLATIVE AGENDA RATIONALE

The measure will define “public services” and “public utilities,” which have been used
interchangeably, to distinguish the former from the latter. The 1987 Philippine Constitution limits
the operation of a public utility to citizens of the Philippines or to corporations or associations,
Amendment of the Public Service Act at least sixty percent of whose capital is owned by Filipinos.
(Commonwealth Act No. 146)
It will also lift foreign equity restrictions in certain sectors that offer services not under the scope
of public utilities such as those engaged in the telecommunication services. This will encourage
potential investors to participate, reducing the market power of incumbent firms.

The proposed amendments will ease restrictive provisions in the Foreign Investment Act to
Amendment of the Foreign Investments Act address procurement restrictions and lengthy procedures that hamper foreign investment and
of 1991 (RA 7042) participation of foreign bidders in local procurement. It will also include provisions to ease
restrictions on the practice of professions in the Foreign Investment Negative List.

This measure will facilitate the growth of e-commerce and ensure that firms respond to the
requirements in the new normal and thrive in the digital economy. It will regulate ecommerce to
Amendment of the Consumer Act of the protect both firms and consumers from fraudulent schemes.
Philippines (RA 7394)
E-commerce will play a big role in the new normal as businesses and consumers increase the
use of online transactions. (See Chapter 9)

The proposed measure will promote the growth and development of MSMEs by addressing
Amendment of the Magna Carta for Micro,
challenges such as limits to entrepreneurship and lack of access to finance and markets, among
Small and Medium Enterprises (MSMEs) (RA
others. It will also increase access of MSMEs to financing such as extending credit window to
9501, amending RA 6977)
recover from the economic consequences of the COVID-19 pandemic.

1
  Rules of the Leniency Program of the Philippine Competition Commission. (Source: https://phcc.gov.ph/wp-content/uploads/2018/12/Leniency-
Rules-Clean-Version.pdf)

Chapter 16 Promoting Competition | 281

PART VI

FOUNDATIONS
FOR SUSTAINABLE
DEVELOPMENT
17
Attaining
Just and Lasting
Peace
 CHAPTER 17

Attaining Just and Lasting Peace

A society where there is just and lasting peace is critical to the realization of AmBisyon
Natin 2040 or the Filipino people’s collective aspiration of a matatag, maginhawa, at panatag
na buhay (strong family and community ties, a comfortable and secure life). Peaceful
communities can harness the fruits of economic growth through improved access to social
services and financial opportunities and increased overall human development, without
fear or threat to their lives and livelihood. Conversely, economic development can diminish
the likelihood of armed conflict, especially if socioeconomic interventions are inclusive,
participatory, and sustainable.

In the first three years of the current administration, significant strides have been made
resulting in the successful negotiation and implementation of peace agreements with internal
armed conflict groups. Complementary interventions for the continuous protection and
development of conflict-affected and conflict-vulnerable communities were also pursued
along with the implementation of other peacebuilding initiatives.

For the remainder of the Plan period, interventions in conflict-affected and conflict-vulnerable
areas will be sustained while being mindful of the new health protocols. This is to ensure
that the socioeconomic impact of the COVID-19 pandemic will not aggravate the fragile
situation in such areas and that peace building efforts would contribute towards a
healthy and resilient Philippines.

Assessment and Challenges

Assessment: The first half of the Plan period of the Moro National Liberation Front (MNLF)
marked significant milestones in the peace to ensure the implementation of the remaining
process. The enactment and ratification of the commitments under the 1996 Final Peace
Bangsamoro Organic Law (RA 11054) paved the Agreement (FPA). Efforts to complete the
way for the establishment of a new political entity implementation of the peace agreements with
in the Bangsamoro, ending the decades-long the Rebolusyonaryong Partido ng Manggagawa–
armed conflict with the Moro Islamic Liberation Pilipinas – Revolutionary Proletarian Army-Alex
Front (MILF). The Bangsamoro normalization Boncayao Brigade (RPMP-RPA-ABB) and the
process was fast-tracked through the issuance of Cordillera Bodong Administration-Cordillera
Executive Order No. 79, s. 2019.1 The government People’s Liberation Army (CBA-CPLA) were
has likewise continuously engaged the two groups also actively pursued. These were complemented

1
Implementing the Annex on Normalization under the Comprehensive Agreement on the Bangsamoro (CAB).

286 | Updated Philippine Development Plan 2017-2022

by the institutionalization of a whole-of-nation isolated, conflict-affected communities can
approach to end local communist armed limit government in implementing alternative
conflict through the issuance of EO 70 in 2018. mechanisms to deliver socioeconomic and
Socioeconomic interventions, reintegration peacebuilding initiatives. New policies such as
programs for former rebels and former violent health protocols and quarantine restrictions also
extremists, and other various peacebuilding pose hurdles in the implementation of peace
initiatives to create an enabling environment for building programs particularly those requiring
peace and development were also implemented. face-to-face interactions in affected communities.

Challenges: While the government remains The pandemic has increased the vulnerabilities
committed to build on and sustain the gains of and further limited the capacities of poor and
the peace process, the current pandemic conflict-affected communities to respond to other
introduced new challenges in the implementation economic, social, and environmental shocks.
of peace agreements. Refocusing of budget Moreover, violent extremists and terror groups
priorities to address the impact of the pandemic may take advantage of the crisis to ramp up
can affect or delay the implementation of some terrorist activities. The gains from the peace
components of peace agreements and of various process that have been achieved thus far could
socioeconomic interventions for conflict- take a setback due to this situation. Hence, it
affected and conflict-vulnerable communities. is imperative to find alternative and innovative
Both the physical and virtual inaccessibility approaches to sustain the gains of the peace
(e.g., lack of internet access, low level of capacity processes amidst the pandemic.
to use technology) particularly in geographically-

Strategic Framework
The government remains committed in pursuing peace and development interventions in
efforts to attain just and lasting peace for the conflict-affected and conflict-vulnerable areas.
remainder of the Plan period. These include These will be undertaken despite the challenges
the effective implementation of signed peace posed by the current pandemic.
agreements and continuous delivery of various

Chapter 17 Attaining Just and Lasting Peace | 287

Figure 17.1 Strategic Framework to Attain Just and Lasting Peace

Strategies
To achieve these outcomes, the following strategies during the transition period from 2019 to 2022,
will be implemented in line with the President’s it is critical for the BTA to lay down the
Six-Point Peace and Development Agenda: foundations for the establishment of a fully-
functioning BARMM government in 2022
or beyond, as may be provided by Congress.
Successfully negotiating Foremost are the enactment of priority legislations,
and implementing peace the determination of parliamentary districts
for the first regular elections of the Parliament
agreements with all internal members, the organization of its own civilian
armed conflict groups bureaucracy, and the full transfer of powers and
properties of the dissolved ARMM regional
government to the BARMM. These activities are
Support the Bangsamoro Transition Authority guided by the BTA’s priority pillars: education,
(BTA) as the interim government of the health, economic development, strategic
Bangsamoro Autonomous Region in Muslim infrastructure, and moral leadership. A critical
Mindanao (BARMM). As the interim government component in the implementation of the peace

288 | Updated Philippine Development Plan 2017-2022

agreement is the immediate organization of all will comply with the required health-related
mechanisms under the National Government– guidelines, protocols, and restrictions.
Bangsamoro Government Intergovernmental
Relations Body (IGRB), which resolves all Complete the implementation of the
potential issues and concerns, ensuring smooth remaining commitments under the 1996 Final
relationship and coordination through continuous Peace Agreement between the Government
engagements and consultations. Aside from of the Philippines (GPH) and the MNLF.
the Intergovernmental Fiscal Policy Board and The government will further pursue the completion
the Intergovernmental Energy Board, other of its remaining commitments under the 1996
intergovernmental relations mechanisms that FPA with the MNLF through the coordinating
will be organized are: (a) Philippine Congress- committees created in 2019 with the Misuari and
Bangsamoro Parliament Forum; (b) Joint Body Jikiri groups. These include the establishment
for the Zones of Joint Cooperation (Sulu Sea and of the Bangsamoro Development Assistance
Moro Gulf); (c) Intergovernmental Infrastructure Fund (BDAF) intended to uplift the conditions
Development Board; (d) Bangsamoro of the MNLF and the operationalization of
Sustainable Development Board, and the a monitoring mechanism anchored on the
(e) Council of Leaders. results of the Tripartite Review Process (TRP)
between the GPH, MNLF, and the Organization
Intensify the implementation of the of Islamic Cooperation (OIC). The full
normalization program for the Bangsamoro. implementation of the 1996 FPA will contribute to
The Inter-Cabinet Cluster Mechanism on sustainable and durable peace, development, and
Normalization (ICCMN), along with other joint security in Mindanao and ensure inclusivity of
bodies (Joint Normalization Committee, Joint peace dividends.
Peace and Security Committee, and Joint Peace
and Security Teams), is tasked to guarantee Implement a transformation program for the
the completion of the components of the MNLF combatants. A transformation program
normalization program. These include (a) timely for the MNLF combatants, their families, and
decommissioning of MILF forces and their communities will be implemented through
weapons particularly for the Bangsamoro Islamic the coordinating committees, beginning in the
Armed Forces (MILF’s forces); (b) implementation Province of Sulu. It shall mirror the Normalization
of socioeconomic development efforts for MILF Program of the Moro Islamic Liberation Front
decommissioned combatants; (c) transformation (MILF) and intends to deter disgruntled MNLF
of identified MILF camps into villages with combatants from joining the Abu Sayyaf Group
increased access to economic opportunities; and and other violent extremist groups in the
(d) implementation of interventions towards Southern Philippines, thereby contributing to the
social healing, reconciliation, and cultural enduring peace and stability in the Bangsamoro.
harmony to address the legitimate grievances
of the Bangsamoro people. The ICCMN also Effectively implement the National Plan to End
includes the creation of a technical working group Local Communist Armed Conflict 2019-2022
that will assess the propriety of grant of amnesty, that will operationalize the whole-of-nation
pardon, or other available processes towards the approach to address local communist and other
resolution of cases of persons charged with or armed conflicts. The National Task Force to End
convicted of crimes and offenses connected to the Local Communist Armed Conflict (NTF-ELCAC),2
armed conflicts in Mindanao. The implementation together with the Cabinet Officers for Regional
of these components during the pandemic Development and Security, will oversee the

2
The NTF-ELCAC is headed by the President as Chair and the National Security Adviser as the Vice-Chair.

Chapter 17 Attaining Just and Lasting Peace | 289

implementation of the whole-of-nation approach interactions are important in building and
through the regional 3 and local task forces and rebuilding confidence with the communities
the 12 lines of efforts (LOEs)/clusters.4 The NTF- especially in providing a safe democratic space
ELCAC will ensure inter-cluster convergence for communities to raise issues and concerns that
of efforts in addressing community armed- are at the root of, resulting from, or further
conflict issues. In addition, these task forces and aggravating the armed conflict. It also provides
LOEs will support and complement action plans a platform for constructive engagement among
to address the impact of the pandemic at the the community, the government, and other
national, regional, and local levels, including the stakeholders, and provides opportunities for
localization of interventions through the strengthening capacities for peace. Alternative
Barangay Development Program (BDP).5 Referral mechanisms such as the use of digital platforms
protocols for monitoring and response will also will be utilized only when necessary and feasible.
be streamlined to improve vertical and horizontal
connectivity of various cluster mechanisms. Fast-track the completion of remaining
commitments under the signed agreements with
Effectively undertake localized peace the Rebolusyonaryong Partidong Manggagawa–
engagements through community consultations Pilipinas-Revolutionary Proletarian Army-Alex
and problem-solving sessions, and local peace Boncayao Brigade (RPMP-RPA-ABB) and the
dialogues with local insurgent groups. The Cordillera Bodong Administration-Cordillera
Lakbay Kapayapaan Roadmap for Peace and People’s Liberation Army (CBA-CPLA). The
Development6 will be mainstreamed as the primary government remains committed to complete the
mechanism to support localized peace dialogues implementation of the remaining commitments
in communities based on mutual confidence and under these agreements by 2022. The completion
trust. In connection to this, the government will strategy for the RPMP-RPA-ABB involves
prioritize the enhancement of capacities of local engagements with the Tabara-Paduano Group
chief executives and the strengthening of the role (TPG) and the Nilo de la Cruz Group (NDCG).
of local government units (LGUs) in carrying The 2019 Clarificatory Implementing Document
out peace dialogues, and the complementation (CID) lays down the commitments towards the
and convergence of socioeconomic packages to absolute and final settlement of the 2000 Peace
communities and individual former rebels and Agreement with the RPMP-RPA-ABB between
their families. the government and the TPG. These include the
full transformation of the TPG from an armed
While the current pandemic calls for alternative group into a civilian organization through a
mechanisms in carrying out engagement activities three-year normalization plan that will facilitate
with communities, face-to-face interactions will development assistance to its members, their
still be undertaken especially in local community families, and identified communities. Engagement
dialogues, consultations, and problem-solving with the NDCG is also being pursued within
sessions, albeit in strict compliance with public the bounds of the 2000 Peace Agreement, with
health standards and protocols. Face-to-face full observance of the ceasefire agreement.

3
The regional task forces are created through the convergence of the Regional Peace and Order Councils and the Regional Development Councils,
and are headed by the Cabinet Officers for Regional Development and Security.
4
These are: (1) local government empowerment; (2) international engagement; (3) legal cooperation; (4) strategic communication;
(5) basic services; (6) infrastructure and resource management; (7) poverty reduction, livelihood, and employment; (8) peace, law enforcement,
and development support; (9) situational awareness and knowledge management; (10) localized peace engagement; (11) Enhanced Comprehensive
Local Integration Program (E-CLIP) and amnesty; and (12) sectoral unification, capacity building, empowerment, and mobilization.
5
The BDP is a peace and development convergence initiative of the NTF-ELCAC which provides socioeconomic interventions, (e.g., farm to
market roads, school buildings, health stations, livelihood support, etc.) to communist terrorist groups-cleared barangays.
6
The Lakbay Kapayapaan Roadmap aims to institutionalize and champion sustainable peace and development agenda at the grassroots by
continuously building strong and capable institutions, strategic partnership of government and non-government organizations, and heightened
citizen participation through whole-of-nation approach to establish and sustain peaceful, progressive, and resilient communities.

290 | Updated Philippine Development Plan 2017-2022

Meanwhile, the completion strategy for the of the ELCAC will be further strengthened as
CBA-CPLA focuses on the implementation and a mechanism for national and regional
sustainability of socioeconomic reintegration coordination to address key issues and concerns
programs for former CPLA members, their affecting peace, security, and socioeconomic
families, and communities. Multi-stakeholder development.
convergence to support regional peace and
development advocacies and interventions towards Inter-agency programming and agency-level
the Cordillera autonomy will also be pursued. budget prioritization need to be strengthened in
light of foreseen priorities towards addressing
To this end, collaboration and partnerships the impact of the COVID-19 pandemic.
through existing peace process mechanisms This is to ensure that the aforementioned
need to be sustained especially in recalibrating peace and development interventions will still
specific strategies in light of the new normal. be effectively implemented amidst this crisis.
Digital communications infrastructure is also
needed in the conduct of critical activities Empower communities by increasing their
such as monitoring of project implementation, capacity to address conflicts and reducing their
consultation meetings with various stakeholders, vulnerabilities. Strengthening local capacities
and capacity building and skills development for addressing peace, conflict, and security issues
programs for beneficiaries. remains central in sustaining the government’s
community-based support and peacebuilding
programs. The government will continue
its engagements with severely affected and
Protecting and developing vulnerable groups in armed conflicts (i.e., women,
communities in conflict- indigenous peoples, children, elderly, internally
displaced peoples [IDPs]) and pursue the
affected and conflict- application of inclusive and participatory
vulnerable areas approaches to empower these groups. Moreover,
partnerships with women and youth sectors and
the local civil society organizations (CSOs) will
Strengthen convergence and complementation be strengthened in recognition of their significant
in the implementation of peace and role in advancing the peace education and
development interventions. Convergence of peace advocacy agenda. In this regard, the
all government efforts and mechanisms at the government will sustain its efforts for various
national, regional, and local levels will be critical capacity development and advocacy initiatives on
in advancing the protection and development conflict-sensitive and peace-promoting (CSPP)
of conflict-affected areas. These include the approaches, providing avenues for dialogues with
Payapa at Masaganang Pamayanan (PAMANA) vulnerable groups and their communities. Face-
Program, the Retooled Community Support to-face peace conversations will still be conducted,
Program (RCSP), the E-CLIP, 7 programs and albeit in strict compliance with public health
projects under the NTF-ELCAC, and crisis and standards and protocols. Use of alternative digital
contingency planning activities as provided platforms and other forms of mass media such as
under EO 82 s. 2012.8 The Regional Task Forces local radio and television, will also be considered.

7
E-CLIP’s coverage was expanded through Administrative Order 25, s. 2020: Amending AO 10, s. 2018 “Centralizing All Government Efforts for
the Reintegration of Former Rebels and Creating for the purpose an Inter-agency Task Force.” This provides for a comprehensive, integrated, and
community-based national program that is locally implemented to address the economic, social, psychological rehabilitation needs, legal status
and security of Former Rebels (FRs) who are members of the CPP-NPA-NDF, former violent extremists, their immediate family members and
communities through the E-CLIP. The Task Force Balik Loob (TFBL) oversees the implementation of the E-CLIP.
8
EO 82, s. 2012: Operationalizing the Practical Guide for National Crisis Managers and the National Crisis Management Core Manual, and
Establishing National and Local Crisis Management Organizations.

Chapter 17 Attaining Just and Lasting Peace | 291

Strengthen government peace and development Plan on Youth, Peace and Security (NAP-YPS);
institutions and mechanisms to increase their the program framework and work plan for the
accountability and responsiveness to peace implementation of the Special Protection of
and human security issues. Strengthening Children in Situations of Armed Conflict Act (RA
institutions to effectively ensure security, restore 11188); and the National Action Plan to Prevent/
public confidence, and provide economic Counter Violent Extremism (NAP-PCVE).
opportunities is critical, particularly in light of Priority interventions under these plans will
emerging multi-dimensional risks arising from complement the national, regional, and local
armed conflicts, disasters, and health-related efforts to address the impact of the COVID-19
hazards. Establishing accountability mechanisms pandemic, and will be aligned with the
will enable the government to appropriately rule of law, international human rights law, and
respond to various threats to communities in international humanitarian law.
conflict-affected and conflict-vulnerable areas.
NAP-WPS. A major goal of the NAP-WPS is
Planning, implementation, and monitoring and to ensure the meaningful participation and
evaluation of peace and development programs leadership of women and girls as active change
will likewise be undertaken to ensure streamlined agents in conflict transformation and post-
and harmonized government response to various conflict development. It seeks to protect women
peace and security issues. Mainstreaming of and girls’ human rights at all times–before,
CSPP approaches in the plans and programs of during, and after various conflict situations–
government and various stakeholders will be and prevent all forms of violence against them.
institutionalized. This includes mainstreaming It also embodies the government’s commitment
CSPP in the Comprehensive Development to implement United Nations Security Council
Plans (CDPs) to highlight the important role Resolutions (UNSCR) 1325 and 1820,9 and other
of LGUs and local special bodies in conflict related resolutions. For the remainder of the
prevention and peacebuilding. The Office of the Plan period, the National Steering Committee
Presidential Adviser on the Peace Process, with the on Women, Peace, and Security, through its
Department of the Interior and Local Government member agencies and local stakeholders,
will develop various online knowledge will target the implementation of the action
products, including the facilitators’ manuals and points identified in the Agency Strategic Action
guidebooks on mainstreaming CSPP in the Plans. These include mainstreaming of the
CDPs of conflict-affected and conflict-vulnerable WPS agenda in policies, plans, and programs
LGUs. As part of the new normal, LGUs will at the national, regional, and local levels;
explore online schemes of reporting their CSPP the localization of the NAP-WPS through the
mainstreaming and coaching efforts to the crafting of respective regional action plans;
national government. the development and implementation of
programs to address gender-based violence in
The government will develop and continuously emergencies (e.g., those affected by the Marawi
implement action plans to ensure the protection crisis); and ensuring that former women rebels
and promotion of rights of women, youth, and violent extremists can benefit from
and children in conflict situations and against normalization and reintegration programs.
radicalization and violent extremism. These
include the National Action Plan on Women,
Peace, and Security (NAP-WPS); National Action

9
UNSCR 1325 was adopted in October 2000, affirming that “peace and security efforts are more sustainable when women are equal partners
in the prevention of violent conflict, the delivery of relief and recovery efforts, and in the forging of lasting peace.” UNSCR 1820 was adopted in
June 2008, recognizing sexual violence as a tactic of war that “can significantly exacerbate situations of armed conflict and may impede the
restoration of international peace and security.”

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NAP-YPS. The crafting of the NAP-YPS is in These activities include policy advocacy and
compliance with the UNSCR 2250 10 on the dissemination, risk communications, and
YPS agenda. The NAP-YPS will outline the community engagements through online
country’s YPS agenda based on the platforms; conduct of regular online coordination
recommendations from the Youth Peace Tables, meetings to enhance and finalize the work plan;
which serve as a platform for young peace and increasing partnerships with NGAs and
advocates to further strengthen their capacities international development partners particularly
in building a culture of peace and conflict in updating and enhancing CSAC protocols on
sensitivity and mobilize a youth constituency to the handling and management of children
support the peace processes. The NAP-YPS also involved in armed conflict.
aims to guide both policymakers and service-
providers in integrating and adopting the action NAP-PCVE. The NAP-PCVE will continuously
points in the formulation and implementation be implemented to address the various factors of
of policies and programs that will address or radicalization which lead to violent extremism.
contribute to addressing the needs articulated This is to ensure that recurrence of armed conflict
by the youth. Other related efforts on the NAP-YPS will be avoided, and public order and safety is
include capacity-building for national government ensured particularly at the grassroots level (see
agencies (NGAs) on UNSCR 2250, and mapping Chapter 18).
of different youth-related programs and projects
of the government and non-government Continue to build on the gains of the peace
organizations. processes through education, social healing, and
reconciliation. Instilling a culture of peace (COP)
Implementation of RA 11188. The Special and non-violence will sustain the gains of the
Protection of Children in Situations of Armed peace process and ensure that legitimate
Conflict Act seeks to strengthen protection grievances can be raised without resorting to
mechanisms for children involved in, affected, armed conflict and violent extremism.
and displaced by armed conflict situations, The government will continue and expand the
including guaranteeing their rights in mainstreaming of peace education and promote
situations of armed conflict and providing a culture of peace and non-violence in both
preventive measures against recruitment, use, formal and non-formal settings. These include
and grave child rights violations, prosecution, the integration of peace education in basic,
and rehabilitation and reintegration. higher, and technical and vocational education
and integration of Mindanaoan narratives from
The law declares children as “zones of peace” – indigenous peoples, Bangsamoro Filipinos, and
hence, treatment will extend beyond territorial Filipino Christian migrants into the Philippine
and geographical boundaries and will focus on Educational System. This will be coupled with
the promotion and protection of their rights at advocacy programs, capacity building for
all times. An Inter-Agency Committee on faculty, and development of syllabi and training
Children in Situations of Armed Conflict materials for peace studies in higher education.
(IAC-CSAC) was created to oversee the Development of online learning materials and
implementation of this law. For the remainder of capacity building modules for COP and peace
the Plan period, all activities for the development education mainstreaming will also be pursued
of a work plan for this law will proceed, as part of the new normal situations. Other COP
utilizing alternative strategies in consideration sessions will be conducted, firmly adhering
of the current public health situation. to prescribed health standards and protocols.

10
UNSCR 2250 was adopted in December 2015, recognizing that “young people play an important and positive role in the maintenance and
promotion of international peace and security.”

Chapter 17 Attaining Just and Lasting Peace | 293

The government will actively undertake social families of survivors and victims of conflict-related
healing, reconciliation, and peacebuilding violence, and the communities. Furthermore,
programs. For example, the implementation of the building and rebuilding of relationships of
reintegration and rehabilitation programs for the IDPs with their community leaders, sectoral
former violent extremists (FVEs) through the representatives, NGAs, LGUs, CSOs, and all
Task Force Balik Loob (TFBL) will be conflict-, stakeholders is expected to build social cohesion,
gender-, and culture-sensitive. These will resilience, and sustainable peace towards the
also include various programs and projects recovery and rehabilitation of Marawi and its
such as provision of safe spaces for healing nearby municipalities.
and reconciliation of SVEs and their families,

Legislative Agenda
To achieve the desired outcomes discussed above, the following legislative agenda will be pursued in the
remainder of the Plan period.

Table 17.1 Legislative Agenda to Attain Just and Lasting Peace

LEGISLATIVE AGENDA RATIONALE

Separate amnesty proclamations

The proposed presidential proclamations on amnesty for various groups aim to accept former
for the Bangsamoro, RPMP/RPA/ABB,
combatants back into the fold of the law and eventually provide them access to the government’s
and former rebels of the communist
socioeconomic services as a means to attain peace, reconciliation, and unity in the country.
terrorist groups

This aims to establish a political entity and provide the structure of its government in recognition
Enabling law creating an
of the justness and cause of the Cordillerans and to secure their identity and posterity and allow for
autonomous region in the Cordilleras
meaningful governance.

Enabling law creating the The proposed law will create the NTJRCB which shall design and supervise the implementation of
National Transitional Justice a TJR program. The program shall be guided by the Dealing with the Past Framework that respects,
and Reconciliation Commission protects, and fulfills the victims’ right to truth, right to justice, and right to reparation, and ensures the
for the Bangsamoro (NTJRB) State’s obligation to provide guarantees of non-recurrence.

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18
Ensuring Security,
Public Order, and
Safety
CHAPTER 18

Ensuring Security, Public Order,

and Safety

The realization of the Filipino people’s long-term vision of a matatag, maginhawa, at panatag
na buhay para sa lahat rests upon an environment that is safe, secure, and orderly. It is the
government’s duty to ensure that all Filipinos feel secure to walk and travel around all places
in the country, without fear of harm to themselves and their property, and are able to go about
their business, economic, and social pursuits. Moreover, as the country pursues greater
economic development, it is imperative that the government safeguards national interests,
territory, and sovereignty.

In the first three years of the Duterte Administration, efforts towards building a safe, secure,
and orderly Philippines were intensified. While significant strides have been made in terms of
putting in place structural reforms and various mechanisms in the security sector, recurring
challenges persist and new threats to public safety have emerged. The protection of our
country’s entitlements, not only in the West Philippine Sea, has been one of the most pressing
security concerns facing the country. Criminality and illegal drugs remain a prevalent threat to
public safety, along with the increased frequency of natural disasters, isolated occurrences of
human-induced disasters, and outbreak of diseases.

For the remainder of the Plan implementation, the government will maintain its independent
and principled foreign policy. The government will strengthen the capabilities of its security
forces to ensure that Philippine territories and sovereignty is defended. It will also remain
committed in its campaign against all forms of criminality, illegal drugs, transnational crimes,
trafficking-in-persons, and violent extremism. During times of health emergencies, the whole
of the security sector will be mobilized to adequately respond to the needs of the people,
including the provision of support to sectors that bring food, basic necessities, and essential
services to them. Furthermore, the government will upgrade its systems and operations to
conform to the new normal in keeping public order and safety. The protection of human rights,
as enshrined in the Constitution, will be ensured, especially during the implementation of
policies and measures in times of crisis and emergencies.

Chapter 18 Ensuring Security, Public Order, and Safety | 297

Assessment and Challenges
Assessment: Successful negotiations for the Challenges: Managing conflict and reducing
formulation of the “ASEAN-China Code of Conduct tensions among claimant states of the South China
in the South China Sea” have been pursued to ensure Sea continue to be the main challenge to external
security and stability in the region. Various efforts security. Various emerging and non-traditional
have been exerted to engage claimant states and to threats such as radicalization, violent extremism,
promote a rules-based regime in the “South China and increasing risks to disasters and health hazards
Sea,” including the Single Draft Code of Conduct continue to threaten the safety of Filipinos.
(COC) Negotiating Text, which will inform the
formulation of the COC. The crime situation has The outbreak of COVID-19 has posed another
generally improved with the reduction of average challenge to ensuring security and safety of
monthly index crime rate and the improvement of the people. Despite the continued reduction in
index crime solution efficiency rate from 2016 to reports of criminal incidents even during the
2018. A holistic approach, involving community implementation of the community quarantine,
and civil society groups, to the campaign against law enforcement operations are stifled by the need
illegal drugs was introduced through the issuance of to observe strict health protocols amidst limited
Executive Order 66, s. 2018, which institutionalized supply of personal protective equipment (PPE),
the Philippine Anti-Illegal Drugs Strategy. exposing law enforcers to risk. On the other
hand, incidence of cybercrimes is on the rise with
the increased digital dependency of the public
for financial and government transactions. The
imposition of quarantine protocols also demands
greater accountability from the government to
ensure that human rights are protected and upheld.

298 | Updated Philippine Development Plan 2017-2022

Strategic Framework
Ensuring security, safety, and public order is one Achieving this goal will entail pursuing the following
of the foundational strategies in the Philippine strategic outcomes taking into consideration the new
Development Plan 2017-2022, hence it is accorded normal situation brought about by the COVID-19
high priority by the current administration. pandemic, as shown in Figure 18.1 below.

Figure 18.1 Strategic Framework to Ensure Security, Public Order, and Safety

Note: Refer to Migration on Chapter 21 for strategies relating to overseas Filipinos (OFs).

Chapter 18 Ensuring Security, Public Order, and Safety | 299

Strategies
Ensuring public safety The Philippine Public Safety College and PNP
will continue to institutionalize a highly efficient,
competent, credible, and professionalized corps
The government will continue to exert efforts in
of peace and order and public safety personnel
building the capabilities of public safety institutions
through the conduct of mandatory courses,
to respond to all hazards, including pandemics,
specialized and in-service training, and continuing
that pose risks to the safety of the people. This will
quality education and training to PNP uniformed
include interventions in preventing the spread of
personnel. Online training programs and digital
radicalization resulting in violent extremism. The
platforms will form integral parts of the learning
following strategies will be implemented to raise the
process during this pandemic situation.
standards for public safety.
Being at the frontline of the pandemic and other
Increase police presence, professionalize the
crisis situations, the police force will be equipped
police ranks, and conduct internal cleansing in
with adequate logistical support for its operations
law enforcement. Efforts to enhance police presence
and be provided with sufficient PPE. This is to
to maintain peace and order is primordial. As such,
ensure the safety and protection of the police forces
the PNP will strive to meet the standard police-to-
while performing their duty of upholding the rule
population ratio of 1:500 to greatly improve public
of law to maintain peace and order and public safety
safety. In addition, the government will pursue the
in the middle of a public health crisis.
construction of additional police stations in every
community to further strengthen and expand
Strengthen the partnership between law
their presence. To enhance policing presence in
enforcement agencies, local peace and order
communities, various programs and activities, such
institutions, and communities. LGUs will
as Pulis Nyo Po sa Barangay, Barangay Peacekeeping
continuously strengthen local peace and order
Action Teams, and Barangay Information Networks,
institutions to effectively address criminality and
will be organized and empowered as force multipliers
illegal drugs within communities. Maintaining
for the PNP. Moreover, the Community and Service-
peace and order and discipline in communities is
Oriented Policing System will be strengthened to
of utmost importance as quarantine restrictions
help build ties between the PNP and communities
adversely affect the economy and people’s livelihood
and to strengthen the involvement of the latter in
and income. To this end, the government will
addressing public safety issues such as crime, social
capacitate LGU officials, especially those at the
disorder, and fear of crime.
barangay level, as force multipliers and frontliners
in the fight against COVID-19. Capacity-building
The PNP will continue its efforts in sustaining
interventions will include developing protocols
internal discipline within their ranks through
on checkpoints and enforcement of community
the implementation of the Revitalized Internal
quarantine guidelines. The PNP will support other
Cleansing Strategy, with particular focus on getting
sectors, particularly those involved in supply chains,
rid of incompetent and corrupt police personnel.
to ensure unhampered distribution of food and
Reporting platforms such as the Integrity
other essential goods, including medical supplies
Monitoring and Enforcement Group Hotline aimed
and equipment. Together with the DILG, the PNP
at receiving complaints and information from
will also develop a concise rules of engagement with
the public about erring police officers will also be
their civilian counterparts.
sustained. Disciplinary actions and sanctions will
be strictly imposed on those involved in corruption
Sustain and expand systems for responding to
and other unlawful activities.
crime and emergencies. The implementation of the
911 Emergency Hotline Service, which serves as the

300 | Updated Philippine Development Plan 2017-2022

direct access of the people to the government, will services to enable and intensify the conduct of
be sustained. The DILG will expand its coverage contact tracing and early detection.
to better serve and respond to emergencies in
the countryside. Moreover, training programs In line with the implementation of the NAP WPS
for telecommunicators and responders will be 2017-2022, which acknowledges the vulnerability
provided. of women in emergency situations, the government
will strengthen the coordination and harmonization
In response to challenges arising from the new of protection and rehabilitation initiatives for
normal, the DILG, the DOH, and other relevant women and girls in various emergencies. It will
security sector agencies will expand the utilization also develop comprehensive gender- and culturally-
of internet and mobile-based reporting channels. sensitive disaster risk reduction and management
This will enable frontliners to respond in a timely programs that specifically highlight the context
manner to the information and security needs of and vulnerabilities of women during emergencies,
the public under the new normal. including women in frontline agencies.

Enhance the capability of the security sector Furthermore, the passage of the bill to establish the
for humanitarian assistance and disaster Department of Disaster Resilience will be actively
response. To enable security sector agencies to pursued in Congress. The bill will strengthen
effectively respond to natural and human-induced the coordination among agencies in providing
disasters, the National Disaster Risk Reduction response during emergencies and disasters. The
and Management Council (NDRRMC) through bill should also be revisited to explicitly specify
the Office of Civil Defense (OCD), will continue public health emergencies such as pandemics as
to provide capacity-building programs for disaster disaster events, and identify measures that will
responders such as the National Urban Search enable the government to mitigate the impacts
and Rescue Capacity Building. In support of this, of such emergencies and to respond effectively.
the DILG is expected to implement by the fourth Meanwhile, the National Disaster Risk Reduction
quarter of 2020 the Safe Philippines Project Phase I and Management Plan will be revisited to reflect the
which will provide police, public safety institutions, aforementioned aspects, among others.
and emergency response units with the latest
technologies and equipment on surveillance and Improve capability of the fire protection services
monitoring, with its own integrated operations and to respond to fire and other related emergencies.
command center, and a remote back-up center. Capability of the BFP to safeguard life and
This will allow them to predict, detect, prepare for property, as well as the country’s vital and critical
and quickly respond to incidents, and mitigate and infrastructure, will be strengthened. This includes
respond to disasters promptly. The security sector fast-tracking the modernization of fire protection
shall also continue to build its capacities to qualify services and the implementation of the BFP service
for International Search and Rescue Advisory upgrade and capability upgrade programs. This
Group’s (INSARAG’s) external classification, to be will include the hiring of additional personnel,
recognized for international response support. procurement of firefighting and communication
equipment and fire trucks to service communities.
In view of the new normal, the OCD will augment The modernization programs of the BFP will
the Human Resources for Health through the likewise cover the procurement of PPE and other
establishment and mobilization of a pool of medical safety equipment for fire fighters during operations,
and allied health professionals and volunteers especially those at the frontline providing assistance
from the security sector. These personnel will during pandemic response and other emergency
provide support in the implementation of social situations. Strict compliance with health protocols
support programs, especially during public health and standards will be observed during operations
emergencies. Duty bearers in the security sector to ensure not only the safety of the public, but also
will be capacitated on providing medical/paramedic of the firefighters.

Chapter 18 Ensuring Security, Public Order, and Safety | 301

The capacity of the BFP to enforce the Fire Code Significantly reducing all forms
and respond to fire and other related emergencies
will be further strengthened. Priority will be of criminality and illegal drugs
given to urban areas with low firefighter-to-
population ratio and to LGUs with inadequate fire The government remains committed to its campaign
protection services. Moreover, pursuant to DILG against all forms of criminality and illegal drugs.
Memorandum Circular 2019-121, roads will be Likewise, the government recognizes the need to
cleared of obstructions to ensure the smooth and address the spread of radicalization and violent
quick access of responders. extremism that leads to terrorism, transnational
crimes, and other non-traditional threats that
Establish a secure and resilient Philippine pose risks to public safety. The conduct of law
cyberspace. The Department of Information enforcement operations will need to consider new
and Communications Technology will ensure challenges brought about by the current pandemic.
the successful implementation of the National The following strategies will be pursued.
Cybersecurity Plan (NCSP) 2022 which aims to  
protect the critical information infrastructure, Sustain the intensified law enforcement
government networks, supply chains, and operations, including military support, to fight
individuals and establish programs and platforms criminality, trafficking, and terrorism. The
for local and international cooperation in PNP will sustain its efforts in reducing all forms
cybersecurity. The strategic initiatives of the NCSP of criminality and intensified crime prevention
will include enhancing security resilience of critical measures even amidst the pandemic. This will
information infrastructure, and government, public, involve updating of existing and/or developing
and military networks to deal with sophisticated new policies, manuals, and procedures to ensure
attacks, promoting the adoption of cybersecurity compliance with pertinent laws and human rights
measures among individuals and businesses, standards, particularly on crime investigations
and enhancing and expanding the pool of local including those for missing persons, case
cybersecurity experts. documentation and filing, and harmonization of
inter-agency procedures. Coordination between law
To better address the challenges to cybersecurity enforcers and military, especially during conduct of
arising from the new normal, a strategic defensive operations, will also be enhanced.
posture within the Office of the President will be
established. This will be complemented by the To address the challenges under the new normal,
strengthening of the country’s capability to protect standard procedures for law enforcement and anti-
the National Critical Information Infrastructures illegal drug operations will be revised and updated.
and improve its cyber resiliency through Health protocols and measures will be incorporated
cybersecurity assessment and compliance and in the procedures to ensure that both law enforcers
national drill exercises. The government will build and criminal personalities are protected from
the skills and capabilities of local cybersecurity getting infected by the virus. The PNP will also
experts; strengthen cooperation between law consider using non-lethal weapons and other police
enforcement, cybersecurity experts, academe, equipment in the conduct of police operations,
and the private sector; and improve cybersecurity delivery of public safety services, and other law
awareness through the conduct of National enforcement functions while strictly adhering to
Cybersecurity Awareness Month, engagements the minimum health standards provided by the
with non-government organizations and other Department of Health (DOH).
stakeholders, and employing social media as means
for disseminating information. Rollout of the Core Competency-Based Training
Program for investigators will strengthen the
PNP’s investigative capability and contribute to the
success of law enforcement operations. Capabilities

302 | Updated Philippine Development Plan 2017-2022

of police personnel in case recording and tracking, law enforcement agencies will be strengthened to
case filing and arrest, operational readiness, and ensure that they are responsive in addressing such
disaster and emergency response will also be threats. Online trainings may be utilized as the
enhanced. Moreover, the current pandemic brought primary mode in implementing capacity-building
the need to utilize advanced information and programs for personnel.
communications technology in the performance  
of PNP's mandate, such as the adoption of secured, Protection of our porous borders will be
mobile, artificial intelligence-driven, and real-time ensured through the enhanced interdiction and
policing. This will harmonize information systems strengthened presence and capability of the Bureau
and improve data sharing and coordination within of Immigration, Bureau of Customs, and other
the criminal justice system. agencies mandated to enforce border security.
The PCG and BFAR will intensify the conduct of
Law enforcement capability on cybercrime maritime security law enforcement patrols within
detection and investigation will be improved and Philippine territory. The PCG will also pursue
modernized. This also calls for efforts to increase the development of maritime detection systems
the general public’s awareness on the detection of and operationalize the Vessel Traffic Management
cybercrimes to protect themselves and avoid being System to secure the country’s maritime jurisdiction.
a victim, especially at the height of a pandemic and
other crisis situations. Moreover, the DILG will lay The threat of global pandemics calls for intensified
down policies to protect and rehabilitate children air and maritime border security and strict
at risk and children in conflict with the law. This imposition of health protocols and quarantine
will include developing a manual on handling and procedures for arriving passengers and visitors.
treatment of children at risk, as well as on preventing This will be carried out through the installation of
trafficking in persons, especially of women and modern e-gates and other border control systems,
children. which will also efficiently prevent human trafficking
and entry of terrorists, especially in major ports of
The PNP will ensure timely and accurate crime entry.
monitoring and reporting through information
technology solutions and initiatives. The conduct of Strengthen commitment to a holistic campaign
a periodic nationwide Crime Victimization Survey against the use of illegal drugs and the abuse of
will be pursued to augment administrative-based dangerous drugs. The government will continue
data. In addition, a survey on the perception of to strengthen the conduct of its intensive and
criminality and law enforcement will be carried out. unrelenting campaign against the trafficking
and use of dangerous drugs1 and other similar
Enhance the capability of police, coast guard, substances through an integrated system of
military, and other law enforcers to address planning, implementation, and enforcement of
internal security threats. Development and full anti-drug abuse policies, programs, and projects.
implementation of the modernization programs In doing so, the government will aim to achieve a
of the PNP, AFP, Philippine Coast Guard (PCG), balance in its national drug control program so that
Bureau of Fisheries and Aquatic Resources people with legitimate medical needs will still have
(BFAR), and other law enforcement agencies are access to dangerous but licit drugs, subject to the
critical in addressing threats posed by local and prescription of appropriate medication.
transnational terrorists and criminal groups, and
emerging security threats such as cybercrimes. Central to the government’s campaign is to address
Information and communications capabilities of the country’s illegal drug use problem through the

1
  Dangerous drugs include those listed in the schedules annexed to the 1961 Single Convention on Narcotic Drugs, as amended by the 1972
Protocol, and in the schedules annexed to the 1971 Convention on Psychotropic Substances as enumerated in the annex, which is an integral part
of the Comprehensive Dangerous Drugs Act of 2002 (RA 9165).

Chapter 18 Ensuring Security, Public Order, and Safety | 303

Philippine Anti-Illegal Drugs Strategy (PADS). Prevent and counter terrorism and the rise of
The PADS recognizes the need for a holistic, radicalization leading to violent extremism. To
human rights-based approach in addressing the address communist terrorist groups, the National
problem on illegal drugs production, trafficking, Task Force to End Local Communist Armed
and use. The strategy entails a comprehensive Conflict will intensify the implementation of the
and balanced approach to drug demand and drug whole-of-nation approach at the regional and local
supply reduction. This involves the suppression of levels. This will require strong coordination between
the flow of illegal drugs supply through sustained regional and local development and peace and order
law enforcement operations; and the reduction councils, as well as the commitment and support of
of consumer demand for drugs and other illegal local chief executives and the communities.
substances through drug rehabilitation and massive
preventive education and awareness programs. Following the adoption of the National Action Plan
on Preventing and Countering Violent Extremism
In support of the implementation of the PADS (NAP PCVE),2 various national government
pursuant to EO 66, s. 2018, all government agencies will be capacitated particularly on the
agencies, including government-owned and formulation of their respective agency’s PCVE plans
controlled corporations and state universities and that are aligned with the NAP. In the same manner,
colleges, are mandated to formulate their respective LGUs will be capacitated on the preparation of their
implementing and operational plans. This will local plans that will adopt and translate national
include programs and activities to ensure a drug-free strategies into concrete action at the grassroots
workplace, including those in the private sector. The level, taking into consideration the current health
strategy also calls for the support of LGUs through crisis and other emerging threats to peace and order
the strengthening of Anti-Drug Abuse Councils, and public safety. These plans will include programs
conducting barangay drug clearing operations, aimed at addressing the political, economic, cultural,
and appropriating funds for anti-illegal drugs psychosocial, and religious factors of radicalization
programs and projects. The EO also prescribes the that lead to violent extremism. The government
conduct of a nationwide survey to determine the will pursue a comprehensive and people-centered
extent and magnitude of drug abuse prevalence in approach in addressing drivers of radicalization
the country. In addition, the establishment of an and ensure that such plans are conflict-, culture-,
age- and sex-disaggregated database and secure and gender-sensitive, uphold the rule of law, and are
database for dangerous drugs operations will ensure compliant with international human rights law and
transparency and enable an effective monitoring international humanitarian law.
of the implementation of the government’s fight
against dangerous drugs. The government’s efforts to prevent violent
  extremism and terrorism will be further intensified
The Philippine Drug Enforcement Agency (PDEA) to maintain community resilience, especially during
will also intensify the random drug testing in the pandemics and other public health emergencies. The
transportation sector as a preventive effort against cooperation of the citizens, private sector, and non-
drug-related road traffic accidents. It will enjoin government organizations with the government’s
all government agencies through the Inter-Agency efforts on PCVE will build a strong and solid front
Committee on Anti-Illegal Drugs, as created against violent extremists, which may lead to their
through EO 15, s. 2017, to ensure that the anti-illegal possible containment and neutralization.
drugs campaign is implemented in an integrated
and synchronized manner. The government will continue to deepen
partnerships with the international community
through multilateral and bilateral mechanisms

  Adoption of the NAP-PCVE is pursuant to the Anti-Terrorism Council’s Resolution No. 38, s. 2019.
2

304 | Updated Philippine Development Plan 2017-2022

such as mutual legal assistance agreements, global Upholding and protecting
cooperation, and international law enforcement
arrangements (e.g., International Criminal Police territorial integrity and
and joint law enforcement operations). This will also sovereignty
include intensified government and multisectoral
efforts against domestic and transnational trafficking Deescalating tension and resolving disputes in the
in persons through international partnerships and South China Sea (SCS) continue to be the main
the Inter-Agency Council Against Trafficking. challenges in sustaining stability and security in the
region. To uphold and protect territorial integrity
Intensify investigation and resolution of human and sovereignty, the following strategies will be
rights violations cases. Investigation strategies implemented:
and approaches to strengthen case build-up will
be further strengthened to ensure successful Promote respect for a rules-based regime in
prosecution of human rights violation cases. The Philippine seas and territories. The government
Commission on Human Rights will pursue efforts will sustain efforts that promote respect for legal
to empower the poor, marginalized, vulnerable, and and diplomatic processes in clarifying issues and
disadvantaged to seek response and remedies for resolving disputes on maritime jurisdictions, in
injustice through the development of client-based accordance with international law, particularly the
education and training programs. These will include 1982 United Nations Convention on the Law of
developing learning modules, teaching aids, and the Sea (UNCLOS). Central to this is the push for
education materials and organizing and mobilizing an effective and substantive ASEAN-China COC
a network of public support for the conduct of that will guide actions of claimant-states to avoid
human rights events, utilizing primarily digital activities that raise tension or threaten security
platforms and mechanisms during the pandemic. and stability in the SCS. On the other hand, the
Partnerships with state and non-state duty bearers Philippines remains committed to taking necessary
in addressing human rights violations cases will also diplomatic interventions against actions that
be pursued. Furthermore, the National Action Plan run counter to international laws and principles,
on Women, Peace, and Security (NAP-WPS) will including the UN Charter, the 1982 UNCLOS, and
pursue the protection of human rights of women the 2002 ASEAN-China Declaration on the Conduct
and girls at all times and the prevention of gender- of Parties in the South China Sea, to preserve
based violence. national security and maintain peace and stability
in the region. The government will continue to
In line with the international human rights law, enhance its relations with other claimant countries
which mandates that duty-bearers not derogate such as China, but with the consciousness of the
from their obligation to respect, protect, and need to protect the country’s rights and interests
fulfill human rights even in times of emergencies, in the WPS, as recognized under the foregoing
a human-rights based approach will be followed international instruments and the 2016 Award
in the implementation of relevant laws, policies, of the Arbitral Tribunal on the South China Sea
protocols, and guidelines. The government will arbitration case.
ensure that Constitutionally-enshrined human
rights are upheld and protected, and that violators In addition, the government will pursue negotiations
will be treated humanely in the enforcement of of maritime boundary delimitation agreements
community quarantine procedures and protocols with countries the Philippines shares borders with.
amidst the pandemic situation. Updating of standard Further, dispute settlement mechanisms consistent
procedures for law enforcement operations must with international law will be pursued for the
adhere to human rights standards while ensuring settlement of maritime border delineation and
health protocols to protect both the suspects and outstanding territorial claims.
the law enforcers from getting infected by the virus.

Chapter 18 Ensuring Security, Public Order, and Safety | 305

Promote greater amity and cooperation with all resource protection, information gathering, and
nations. The country will continue to enhance and civilian purposes will be established to strengthen
strengthen existing bilateral relations, alliances, the AFP’s presence in Philippine-owned islands
strategic partnerships, and defense cooperation, and features. Moreover, the AFP will strengthen the
while expanding our bilateral diplomatic Reserved Forces and the Reserved Officers Training
engagements. The government will maximize Corps (ROTC) Program to augment its numbers,
existing platforms and pursue alternative platforms especially during crisis situations.
to maintain diplomatic engagements with its
bilateral and multilateral partners to strengthen Pursue declaration of some parts of the West
cooperation towards addressing the impact of Philippine Sea as marine protected areas (MPAs).
public health emergencies such as pandemics. The government will pursue this strategy to
address environmental degradation and to ensure
Expand and enhance diplomatic engagements food security and the livelihood of fisherfolk who
and cooperation in regional and international depend on the area. Pursuant to existing domestic
fora. The country will strengthen relationships laws, specifically the Expanded National Integrated
at the regional level. Aside from the existing Protected Areas System Act of 2018 (RA 11038),
Trilateral Cooperative Agreement with Indonesia the management and enforcement of MPAs will be
and Malaysia, which contributed to the enhanced the mandate of the military and relevant civilian
stability in the Sulu-Celebes Seas, the Philippines national government agencies, local communities,
will continue to engage ASEAN through its and non-government organizations. Towards
various platforms towards promoting joint patrols, this end, the government will acquire sea vessels
maritime exercises, intelligence cooperation, to aid navigation, construct and maintain bases,
regional security, and stability. It will also strengthen support organization and operations of bantay-
cooperation to effectively manage the current and dagat, and conduct marine scientific research in
avoid future pandemic situations. these areas. While MPAs are considered national
initiatives, the Philippines will also pursue cross-
Pursue and sustain modernization programs for border and multilateral or regional cooperation
a credible and self-reliant defense posture. The with neighboring countries for more effective
establishment of a credible, self-reliant defense administration and management of the oceans.
posture is critical to the protection and preservation
of the country’s territorial integrity, sovereignty,
and sovereign rights. Thus, the government
Ensuring security and safety of
will fully implement the Armed Forces of the overseas Filipinos
Philippines (AFP) Modernization Program and
the AFP Capability Upgrade Program by ensuring Armed conflicts, economic instabilities, and
continued budgetary support to these programs. social tensions in other countries continue to put
Air and maritime domain awareness will likewise be the welfare and safety of all Filipinos overseas at
intensified through the conduct of law enforcement risk. Strategies to ensure the security and safety
patrols and operations in Philippine maritime of overseas Filipinos are discussed thoroughly in
jurisdiction, as well as the establishment of domain Chapter 21.
awareness platforms. Various structures that can
be used for territorial defense operations, marine

306 | Updated Philippine Development Plan 2017-2022

Legislative Agenda
To support the implementation and effectiveness of the strategies, legislative action is needed on the
following:

Table 18.1 Legislative Agenda to Ensure Security, Public Order, and Safety

LEGISLATIVE AGENDA RATIONALE

Territorial integrity and sovereignty upheld and protected

This will update and define key national defense policies, principles, and concepts. It will
codify the various issuances concerning national defense, the AFP, and the civilian bureaus in
the DND with the aim of streamlining and professionalizing the defense bureaucracy through
the institutionalization of reforms. It will prohibit the sale of defense real properties; redefine
National Defense Act
the minimum and maximum tenure in key positions to provide stability in the AFP leadership;
implement mandatory military service for all natural-born or naturalized Filipino citizens for a
minimum of two years; and transform the National Defense College of the Philippines into the
National Defense University of the Philippines, among others.

This proposed legislation will exempt all acquisition of defense equipment, materiel, ordinance
and integrated military systems of the Department of National Defense and its attached bureaus
Defense Acquisition Act
from the regular procurement process bounded by the Government Procurement and Reform
Act.

This measure seeks to institutionalize the national security planning process. This aims to
National Security Code address the required regular preparation of a National Security Policy and a National Security
Strategy; and identify how the government will implement the policy and strategy.

This bill will promote and stimulate the local defense industry, as in-country enterprises will
be entitled to avail incentives under the Omnibus Investments Code (EO 226, s. 1987). The
proposed law places premium in encouraging local industry players to invest in developing
in-country defense capabilities. The industry players may avail of credit and other financial
Philippine Defense Industry Development Act
products extended by government financial institutions and enjoy exemption from customs
duties and national internal revenue taxes that are payable on the importation of raw materials
and critical components. The government will promote the export of locally made defense
materiel and the in-country enterprises to other countries.

This will serve as a general declaration of the maritime zones under the sovereignty and
jurisdiction of the Philippines. It will also provide the necessary foundation and framework for
Philippine Maritime Zones Act
the enactment of subsequent laws pertinent to the rights and obligations of the Philippines over
its maritime zones.

The proposed law will establish archipelagic sea lanes in Philippine archipelagic waters and
the adjacent territorial sea. It will likewise prescribe the rights and obligations of foreign ships
and aircraft that exercise the right of passage through the established archipelagic sea lanes.
Philippine Archipelagic Sea Lanes Act
The bill will also determine and put in place appropriate measures for the protection of areas
along said sea lanes in accordance with international conventions and agreements to which the
Philippines is a party.

All forms of criminality and illegal drugs reduced

PNP Revitalization and Capability This will enhance the capabilities of the PNP through infrastructure and facilities development
Enhancement Act as well as equipment acquisition and upgrading.

Chapter 18 Ensuring Security, Public Order, and Safety | 307

LEGISLATIVE AGENDA RATIONALE

The bill will give way for the establishment of a DNA database system for the collection, storage,
Forensic DNA Database Act
and maintenance of genetic identification information for law enforcement purposes.

This will institutionalize the creation of Anti-Drug Abuse Councils in every local government unit.
Anti-Drug Abuse Council Law It provides for the corresponding budget allocation for the operations of the Councils and the
conduct of other anti-illegal drug activities, among others.

This will allow for the mandatory drug testing of students in the secondary and tertiary level and
the forfeiture of properties involved in drug cases in favor of PDEA. The amendment will also
Amendment of the Comprehensive prescribe stronger penalties to those found guilty of trafficking dangerous drugs; provide for the
Dangerous Drugs Act of 2002 destruction of seized dangerous drugs and controlled precursors and essential chemicals; and
restore plea bargaining and probation laws. It will also strengthen the PDEA as an organization,
including the provision of benefits for personnel, among others.

Public safety ensured

This intends to modernize the BFP and enable it to become a fire and emergency medical and
rescue services agency capable of responding to hazards such as destructive fires, accidents,
BFP Modernization Act and other natural and human-induced disasters. It will strengthen the ongoing modernization
of the BFP and give BFP the power to investigate all causes of fire, and if necessary, file proper
complaints.

This aims to amend certain provisions of the Revised Fire Code of the Philippines of 2008 (RA
9514) and clarify the respective authorities and jurisdictions of the BFP, the Philippine Economic
Zone Authority, and other similar entities on the enforcement of the law within economic zones.
Amendment of the Fire Code It will give the BFP the sole responsibility to administer and enforce the Fire Code. It also
expands the utilization of the Fire Code Fees collections for the acquisition of properties of fire
stations. It also provides more stringent penalties for every act that compromises fire safety and
endangers the lives and limbs of Filipinos.

This proposed measure seeks to establish a Department of Disaster Resilience with sufficiently
high level of authority to lead the coordination, monitoring, oversight, and implementation of
disaster risk reduction and management efforts. The proposed Department will be equipped with
the necessary competency and resources to engage new actors, particularly in the field of risk
Disaster Resilience Bill
transfer and insurance, and built with the necessary structure to manage broader governance
programs. The current version of the bill should also be revisited to explicitly specify public
health emergencies such as pandemics as disaster events and to identify measures that will
enable the government to mitigate the impact of such emergencies and respond effectively.

This will address the decline in the number of students taking up ROTC, which resulted in the
insufficient number of reserve officers and personnel for the AFP that may be tapped in times of
need. The proposed law seeks to revive the mandatory nature of the ROTC.

The re-establishment of mandatory basic ROTC Program will form part of the basic curricula
Mandatory ROTC Program
for Senior High School (Grades 11 and 12) in public and private schools and a requisite for
graduation. The program aims to enhance the students’ consciousness in the ethics of service,
patriotism, and nationalism; military training for national defense preparedness and civil military
operations; and civic training for disaster risk reduction and management, human and civil
rights awareness, and law enforcement.

308 | Updated Philippine Development Plan 2017-2022

19
Accelerating
Infrastructure
Development
CHAPTER 19

Accelerating Infrastructure
Development
The Build, Build, Build (BBB) Program managed to overcome several implementation
challenges in the first half of Plan period, having increased infrastructure spending to
more than five percent of the gross domestic product (GDP) in 2018, twice more than the
average spending over the past five decades. The progress of the Program is a confirmation
of the government’s strong resolve to strategically and decisively improve the country’s
infrastructure through the development of a robust pipeline of massive capital investments,
including priority high-impact projects, and the implementation of game-changing reforms.

The unprecedented challenges brought by the COVID-19 pandemic, however, is expected

to alter the overall infrastructure development agenda. The resource requirements of
the response to the pandemic is expected to reduce the fiscal space initially allotted for
the portfolio of investments and could slow down the movement and implementation
of programs and projects. On the other hand, government is also keen in using
BBB as an instrument for socioeconomic recovery.

The resumption of rollout of activities under the BBB Program and the continuous
investment in infrastructure are vital to stimulating the economy and facilitating
recovery with their potential multiplier effects on creating jobs and stimulating growth.
Bolstering infrastructure is instrumental in ensuring business continuity, development of
agglomeration economies, creation of new urban centers, delivery of essential government
services, and transitioning into the digital economy. Accordingly, the government
reassessed its strategies and targets for the remaining Plan period to ensure
that these remain relevant and achievable in the face of the “new normal” and in pursuit
of a healthy and resilient Philippines. Even while facing constraints brought about
by the pandemic, government will remain mindful of the longer-term development goals
requiring early interventions.

Assessment and Challenges

Assessment: During the first half of Plan implementing rules and regulations; streamlining
implementation, frameworks, laws, and policies of regulatory procedures for energy projects;
were introduced for various infrastructure formulation of the framework for use of energy-
sub-sectors: National Transport Policy and its efficient technologies; enactment of the means to

Chapter 19 Accelerating Infrastructure Development | 311

lower electricity costs; adoption of the framework therefore appetite of investors, particularly in
for the Public School of the Future; Philippine public-private partnership (PPP) projects. In
Health Facility Development Plan to guide and addition, increase in costs of infrastructure
ensure the rational allocation of investments for projects may be expected due to requirements for
public health facilities, upgrading and development, social distancing and other health precautionary
including the Health Facilities Enhancement measures and protocols.
Program; and government-initiated investments
in the enhancement of the digital infrastructure Amidst the challenges of the pandemic and
through the National Broadband Program. transitioning to the “new normal,” the government
will have to continue and step up efforts to
Challenges: The COVID-19 pandemic has posed address increasing demand for infrastructure,
serious challenges to resource mobilization and especially health and water facilities, which have
implementation of the BBB Program, particularly been and continue to be critical in the fight
in terms of: (a) availability of fiscal space for the against COVID-19; right-of-way issues; lack
target infrastructure program; (b) conceivable of updated and integrated infrastructure data;
delays in project preparation, procurement, and/ and regulatory environment issues. At the
or implementation due to disruption of work same time, the remainder of the reform agenda
of contractors, professionals/experts/engineers, will still be pursued -- creation of an apex body
and workers/laborers involved in the projects; for water resources and an independent
(c) possible interruption of importation of economic regulator for water supply and
construction materials due to disruption sanitation; and amendments to the National
to labor and materials supply; and Economic and Development Authority (NEDA)
(d) change in demand for infrastructure services, Joint Venture (JV) Guidelines.
which could affect the financial viability and

Targets
The plan targets for FY 2020-2022 were revisited and emerging from the COVID-19 pandemic and
updated considering infrastructure development transitioning further into the path of recovery and
as a pivotal strategy to pump-prime the economy resiliency. Table 19.1 shows the success indicators
and with the strong recognition that each sector and updated targets for infrastructure development.
of the economy essentially requires infrastructure

312 | Updated Philippine Development Plan 2017-2022

Table 19.1 Updated Targets to Accelerate Infrastructure Development

BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

Public infrastructure spending increased 4.12

4.20 5.40 4.50 4.50
(in % share in GDP)1 (2016)

Transport Infrastructure

Road Transport

Travel time (decreased) via land per key corridor (in hours)

2.97
Metro Manila 3.12 3.11 3.11 3.11
(2016)

61.12
N1/Pan-Philippine Highway (Laoag-Zamboanga) 50.94 48.39 45.84 45.84
(2016)

7.04
Manila – Baguio 5.86 5.57 5.28 5.28
(2016)

13.36
Manila – Pagudpud 11.13 10.58 10.02 10.02
(2016)

12.11
Manila – Cagayan 10.09 9.59 9.08 9.08
(2016)

2.80
Manila – Clark 2.34 2.22 2.10 2.10
(2016)

2.09
Clark – Subic 1.75 1.66 1.57 1.57
(2016)

3.46
Manila – Batangas 2.88 2.74 2.60 2.60
(2016)

2.62
Iloilo – Capiz 2.18 2.07 1.96 1.96
(2016)

7.10
Surigao – Davao 5.92 5.62 5.33 5.33
(2016)

5.80
Butuan – Iligan City 4.83 4.59 4.35 4.35
(2016)

5.70
Cagayan De Oro – Davao City 4.75 4.51 4.27 4.27
(2016)

8.46
Bacolod – Dumaguete – Bayawan 7.05 6.70 6.35 6.35
(2016)

1
On July 28, 2020, the Development Budget Coordination Committee (DBCC) adopted via Ad Referendum the revised macroeconomic
assumptions and fiscal targets for FY 2020 to FY 2022 in line with the fiscal impact of the COVID-19 pandemic. Accordingly, the government’s
programmed spending on infrastructure were revised.
2
Actual disbursement based on the Department of Budget and Management’s 2019 Budget of Expenditure and Sources of Financing.

Chapter 19 Accelerating Infrastructure Development | 313

 BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

4.61
Danao – Cebu – Santander 3.85 3.65 3.46 3.46
(2016)

Road traffic accident rate reduced (in number of incidents 10.7

10.00 10.00 10.00 10.00
per 100,000 population) - incidents of accidents (2016)

Air Transport

Air passenger movement increased 71.54M

29.42M 32.65M 38.33M 38.33M
(in number of passengers, cumulative) (2016)

Cargo shipped via air increased

285.86M
(international and domestic) 165.54M 277.92M 328.93M 328.93M
(2016)
(in metric tons [MT], cumulative)

Water Transport

Passengers transported by sea increased 89.16M

90.11M 91.66M 93.27M 93.27M
(in number of passengers, cumulative) (2016)

Cargo shipped increased

302.68M
(international and domestic) 317.92M 325.12M 332.06M 332.06M
(2016)
(in MT, cumulative)

Number of vehicles carried by 5.50M

6.70M 6.77M 6.84M 6.84M
RORO vessels increased (2016)

Rail Transport

Passenger trips via rail in Metro Manila increased 11

16 17 19 19
(in % share to total passenger trips via rail, cumulative) (2014)

Energy/Power

Power requirements met 144

148 147 139 139
(in % available capacity over peak demand) (2016)

140
Luzon 143 144 137 137
(2016)

149
Visayas 150 146 137 137
(2016)

162
Mindanao 172 161 150 150
(2016)

Energy intensity (primary energy) reduced 6.71

5.82 5.66 5.56 5.56
(in tons of oil equivalent per million peso) (2016)

Energy intensity (electricity consumption) reduced 11.18

10.96 10.83 10.84 10.84
(in kWh per million peso) (2016)

314 | Updated Philippine Development Plan 2017-2022

 BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

Proportion of households (HHs) with electricity to 90.70

96 98 100 100
total number of HHs increased (in %, cumulative) (2016)

Electricity consumption per capita increased 879.461

1,043.52 1,095.91 1,163.54 1,163.54
(kWh per capita) (2016)

Water Resources

Water Supply and Sanitation

Proportion of HHs with access to safe water supply 87.60

93.11 94.49 95.87 95.87
to total number of HHs increased (in %, cumulative) (2016)

Proportion of cities/municipalities served by water districts 84.00

86.00 88.00 90.00 90.00
with 24/7 water supply increased (%, cumulative) (2016)

Proportion of HHs with access to improved sanitation 91.90

94.60 95.28 95.95 95.95
to total number of HHs increased (in %, cumulative) (2016)

Irrigation

Cropping intensity increased 143.00

164.37 165.50 166.36 166.36
(in %, cumulative) (2016)

Ratio of actual irrigated area to the total potential 59.32

63.10 65.33 66.73 66.73
irrigable area increased (in %, cumulative) (2016)

Flood Management

Ratio of flood-protected areas to the total flood-susceptible

TBD TBD TBD TBD TBD
areas increased (in %, cumulative)

Information and Communications Technology

4.30
Average broadband download speed increased (in Mbps) 25.00 30.00 35.00 35.00
(2016)

Social Infrastructure

Health

Proportion of barangays with barangay health stations, rural

70.64
health units, or urban health centers to the total number of TBD TBD 72.18 72.18
(2017)
barangays (42,036 as of 2016) increased (in %, cumulative)

Solid Waste Management

13,149
Number of barangays served by materials recovery facilities 21,018 23,119 25,221 25,221
(2016)

Number of local government units (LGUs) 248

434 456 479 479
served by sanitary landfills (1,634 LGUs) (2016)

Chapter 19 Accelerating Infrastructure Development | 315

Strategic Framework
Infrastructure development is an important post-pandemic with the BBB Program as a major
bedrock strategy that contributes to enhancing growth lever to hasten the country’s recovery and
the social fabric, reducing inequality, and provide a more solid foundation for resiliency.
increasing the country’s growth potential, The outcomes and major strategies for the rest of
enabling all other development strategies to the Plan period were carefully revisited and updated
work effectively. The aspiration of a healthy to better facilitate the transition and adaptation
and resilient Philippines entails envisioning the to the new normal, propel economic activities,
country’s strategic infrastructure development and lay the foundation for extended growth.

Figure 19.1 Strategic Framework to Accelerate Infrastructure Development

Strategies
With the continuous reopening of the domestic subsectors; (c) ensure asset preservation; and
markets and gradual lifting of restrictions, (d) intensify infrastructure-related research and
the government will prioritize the continuous development (R&D) on technologies, including
resumption of the BBB Program, which is monitoring and evaluation of critical outcome
envisaged as a key element in bringing the much- indicators.
needed impetus to help the country emerge from
the COVID-19 pandemic and bounce back to Recognizing that resources are limited as the
recovery. With this, the major strategies aimed at country deals with the COVID-19 pandemic, the
accelerating infrastructure development have been government was constrained in the rollout and
updated as: (a) re-program activities and projects implementation of the infrastructure program in
for the new normal; (b) implement strategic 2020. Nonetheless, the rollout of infrastructure
infrastructure for the various infrastructure projects is expected to bounce back in 2021 and

316 | Updated Philippine Development Plan 2017-2022

be a major driver of economic growth through job The government has an ambitious infrastructure
generation, among others. The government will development program in place that has undergone
thus continue to closely monitor progress and make review and reprioritization. As the country
adjustments on an annual basis or as necessary. continues to address the COVID-19 pandemic,
Project proponents or implementing agencies the government has prioritized development
will also have to be mindful of the project planning interventions that will have the most impact on
and implementation phases such that mobilization the economy, guided by recovery and resiliency
of resources are properly timed. Important measures. This initiative involved assessing the
projects that form part of master plans and available fiscal space for the infrastructure sector
are expected to yield significant benefits in due to the pandemic, firming up budgetary
the long-term will still be pursued by starting requirements, and adjusting carefully the
pre-procurement activities, capacity building, infrastructure spending strategy such that
social preparation, coordination among agencies additional fiscal space for pressing health and
and LGUs, anticipating and resolving right of way social recovery programs may be better supported.
problems and other regulatory issues, which are
common and recurring causes of implementation Thus, the government has carefully revisited the
delays. Addressing such issues will pave the way BBB Program and the Infrastructure Flagship
for smoother and faster implementation of projects Projects (IFPs) to take into account emerging
in the future. Thus, while the pandemic may have priorities under the new normal and prioritize
slowed down and disrupted the implementation projects with high economic impact with
of projects, with the right policies, financial due consideration for project readiness,
instruments, and our whole-of-government implementation capacity of line agencies, job-
approach, the resumption of the BBB Program is generation potential, and interest and risk level
intended to put the Philippines in a good position of the private sector. Accelerating infrastructure
to drive its recovery and resiliency program. investment is seen to drive economic and
productive activities across industries towards
creating employment opportunities to support
Sustaining operations and direct and indirect jobs that, in turn, have
accelerating infrastructure multiplier effects that can help trigger and regain
consumer spending and business confidence.
development
Besides infrastructure being crucial to support
Re-programming activities and projects recovery, it is also a key strategy to strengthen
for the new normal the country’s resilience given the changing
global economic landscape and to be better
Invest in necessary infrastructure under the new positioned in dealing with future pandemics
normal. Accelerating infrastructure development and their socioeconomic implications. Thus,
has gained increased urgency and relevance as the government recognizes that a shift in
a result of the COVID-19 pandemic. To rise investment priorities under the new normal is
from the economic downturn and build lasting necessary with greater focus on resiliency that
gains, the government will need to stimulate can build a better foundation for lasting growth.
optimism and confidence in the general economy
and investing in the necessary infrastructure The shifts in focus in infrastructure investments
under the normal is a crucial strategy to support involve development interventions in various
recovery by creating stimulus for economic infrastructure facilities and services that have
growth through employment opportunities gained imperative value and urgency in
and aiming for renewed investor appetite transitioning into the new normal and unleashing
and confidence. economic opportunities in a post-pandemic
world. The changing patterns in the way people

Chapter 19 Accelerating Infrastructure Development | 317

work and do business provide an impetus for the Continue to push for reforms and convergence
government to fast-track its efforts in shifting programs. With less than three years remaining
into the digital economy and contactless society, in the Plan period, convergence programs and
which require enhancing the country’s digital inter-agency collaborations will be further
infrastructure and broadband internet. Additional intensified, such that the needed reforms that
investments will be pursued in affording new the government has initiated can be finally
priorities for social infrastructure services under realized and implemented.
the new normal, particularly given the heightened
importance of advancing our healthcare systems To smoothly carry out the BBB Program, NEDA
and the capacities of our healthcare facilities; will work closely with DBM and other member
to continue the delivery of quality education agencies of the NEDA Board Committees to
through blended learning and improvement of strengthen the alignment and synergy among
our education facilities; and to provide appropriate planning, programming, and budgeting.
housing and resettlement in support of the Balik Moreover, the government will continue to
Probinsya, Bagong Pag-asa Program. Access to safe champion the timely movement and completion
and adequate water supply and sanitation will be of priority programs, activities, and projects by
given priority with ever increasing water demand identifying operational issues hampering project
and consumption, especially to help mitigate the implementation under the new normal and
spread of COVID-19 and other diseases through aiming for the early resolution of bottlenecks.
proper hygiene. The development and maintenance To minimize road disruptions in the rollout of
of irrigation facilities will also be necessary to infrastructure, the government (e.g., DWPH,
support the food security goals of the country. DOTr, DICT, among others) will form convergence
Moreover, the electrification efforts will be programs and agreements for coordination of
accelerated, particularly in off-grid areas, to planning permission and civil works, and in the
support the energy requirements under the digital process, to also work towards transparency and
economy and contribute to providing security better coordination with utility service providers.
and promoting lasting peace. With all these,
continued investments in infrastructure come
Implementing strategic infrastructure
with exercising fiscal prudence and enhanced
capacity to efficiently utilize the available resources.
Public investment will be focused on transport,
water resources, energy, information and
Pursue PPPs in infrastructure development.
communications technology (ICT), and
The private sector will play an important role
social infrastructure, which are strategic
in supplementing government efforts and
and crucial in achieving development goals,
augmenting public resources as the latter can
especially in transitioning into the new normal.
mobilize the former’s capital to fully or partially
finance infrastructure projects and tap their
efficiency and expertise in project delivery Transport
and management. Through PPPs, government
resources may be freed up for urgently The government will further enhance the efficiency
needed health and social recovery programs. of the transport sector to sustain economic
growth and increase competitiveness by providing
Along this line, the government will continue to adequate, accessible, reliable, efficient, seamless,
enhance the regulatory framework for PPP to and safe movement of people and goods across the
address various issues and challenges and fast- country, neighboring regions, and the world.
track the implementation of priority projects and
programs. In this regard, the government intends
to amend the NEDA JV Guidelines in the
immediate term.

318 | Updated Philippine Development Plan 2017-2022

Enforce the National Transport Policy (NTP) and Land Transportation Franchising and
and strengthen it through legislation. Following Regulatory Board, together with LGUs will be
the adoption of the policy by the NEDA Board, responsible for collecting traffic flow data across
a law adopting it and creating independent different transport modes, which will be shared
regulatory bodies for the railways, airports, and with the central transport database.
seaports, among others, will establish a more
streamlined transport sector that is able to Adopt an integrated approach to transport
efficiently and effectively carry out the identified planning, in line with the NTP and the
development strategies. National Spatial Strategy (NSS). National
transport agencies and LGUs will implement
Pending legislative action on the NTP, the an integrated approach to land use and
NEDA Board Committee on Infrastructure transport planning in the provision of transport
(INFRACOM) and the Inter-Agency Technical infrastructure and services. This approach aims
Committee on Transport Planning will to improve the capacity of transport facilities to
continuously ensure that the NTP and its adequately serve the demand for movement of
implementing rules and regulations (IRR) passengers and goods to, from, and within the
will be adhered to in planning, programming, centers of socioeconomic activities identified
implementing, operating, and maintaining in the NSS. LGUs will be required to prepare
transport projects and in operationalizing local transport sector plans such as the Local
strategies and intended policy reforms. Public Transport Route Plan as part of their
Comprehensive Development Plans (CDPs).
In accordance with the principle of local The CDPs will be regularly updated to account
autonomy, local government units (LGUs) will for new and significant developments in land use
be made responsible for mobility outcomes in and transport networks. Critical infrastructure
their jurisdictions. To this end, the Department in times of disasters, calamities, and future
of Transportation (DOTr) and the Department pandemics will be required in the Comprehensive
of Public Works and Highways (DPWH) will Land Use Plans (CLUPs) of LGUs.
extend technical assistance to LGUs in the field
of transport planning, transport and land use Develop efficient and resilient national supply
integration, program and project implementation chain network system. Transport agencies will
and monitoring, and traffic engineering and continue to formulate convergence programs
management. Consistent with the NTP, the closer with concerned agencies to ensure that economic
engagement between national and regional sectors are provided with adequate transport
transportation planning offices and LGUs infrastructure support and services. Agricultural
will ensure that local mobility initiatives are areas will continue to be supported through the
guided by master plans and evidence-based provision of farm-to-market and farm-to-mill
studies from an overall network perspective, roads in accordance with the standards set for
aligned with national and regional development both design and construction. Transport
plans, and based on financial and economic infrastructure supporting tourist destinations
viability, comparative advantages, and linkages will continuously be developed to boost tourism
with other transport modes, which in turn will activities that were affected by the COVID-19
guide the rational development of an intermodal pandemic.
transport infrastructure network.
To support development in Mindanao, road
Relatedly, baseline transport data and projects under the Mindanao Logistics
information will have to be consolidated and a Infrastructure Network will be pursued along with
unified database and transport model will be the implementation of the Improving National
maintained. At the local level, regional agencies Roads for Inclusive Growth in Mindanao Projects
of DOTr, DPWH, Land Transportation Office, in Western Mindanao. The capacity of the Brunei

Chapter 19 Accelerating Infrastructure Development | 319

Darussalam-Indonesia-Malaysia-Philippines East Ensure the universal accessibility of transport
ASEAN Growth Area (BIMP-EAGA) road network facilities. As part of the government’s vision to
will also be increased. improve the quality of life of the people through
eased access, universal accessibility design
With an emphasis on improved connectivity and principles will be considered in the
and enhanced mobility, multimodal transport implementation of all transport infrastructure
terminals complete with ancillary facilities will facilities and services to ensure an inclusive
be established to provide smooth transition for and people-oriented national transport system.
passengers and freight from one mode to another. The Task Force on Accessibility created in 2007
will be revived to develop initiatives that will
In terms of securing the backbone of transport address the unique needs of persons with
planning activities in vulnerable areas, priority disabilities, elderly, women, and children in
will be on the development and enhancement of terms of mobility within the transport network,
critical transport infrastructure (i.e., transport particularly in public transport systems.
facilities that are critical in ensuring continued
economic activities during disaster operations Land-based Transport
and health crisis response) and mitigating
pandemic impacts. These efforts will be Prioritize mobility of people and goods over
complemented and supported by a resilient private vehicles by improving land-based
energy and communications infrastructure transport network through engineering,
development. Critical transport infrastructure enforcement, and education. The land-based
will be made climate- and pandemic-resilient to transport network is slated for road widening
provide continuity in the movement of people and integration with mass-transit facilities
and goods, contribute in containing the spread through the implementation of multimodal
of contagion, and ensure last-mile operation for transport terminals. For a more efficient use of
humanitarian logistics. Logistics estates and hubs road infrastructure, high-quality public transport
will be developed at critical locations nationwide modes will be pursued, such as public transport
to support not only regional economic activities, reform, fleet modernization, route rationalization,
but also humanitarian logistics in times of and environmentally-sustainable urban transport
pandemics and disasters. Applicable standards systems, among others, so that commuters will
and best practices on the adoption of resilient, prefer public over private vehicles and more
efficient, and environment-friendly designs and people can be moved with less road space,
technologies will be adopted. thereby addressing traffic congestion. In high
passenger density corridors, high capacity mass
Ensure the upkeep of existing infrastructure transit systems such as rail will be prioritized over
while expanding the transport network. To buses and jeepneys.
ensure that the transport sector is able to support
economic development, the physical state of On the modernization of public transportation and
existing infrastructure will be maintained at a level in transitioning to the new normal, the DOTr and
that generates the optimal economic outcomes. its attached agencies will adopt the Philippine
This strategy will be coupled with the expansion Standard for Accessible Public Utility Vehicles
of the transport network to reach the rest of formulated by the Department of Trade and
the country and the world. Projects that are Industry – Bureau of Philippine Standards.
implemented, especially those identified as
flagship projects, will be monitored closely to
ensure the quality and timely delivery of output.

320 | Updated Philippine Development Plan 2017-2022

Non-motorized transport (e.g., bicycle and interoperable contactless toll collection systems
pedestrian infrastructure) will be integrated for greater mobility and limiting person-to-person
into the existing network through retrofitting. contact.
The design of new projects will also consider
features to encourage more walking and cycling To complement the level of service being delivered
trips. Standardized designs for bicycle and by the national road network, local roads
pedestrian infrastructure will be mainstreamed will continuously be improved by upgrading,
in projects of national transport agencies and expanding, and providing adequate maintenance.
LGUs. Existing and future transportation facilities Road capacity should be optimized while
will have infrastructure supporting non- maximizing the design speed in the road
motorized transport modes (e.g., bicycle racks, network. Innovative designs of intersections and
adequate pedestrian lighting) to promote interchanges will also be adopted and temporary
multimodal mobility. bridges will be made permanent. Design standards
that ensure the safety of users and resiliency of
Appropriate traffic management measures will roads and bridges will be strictly enforced noting
also be enforced and updated to be responsive to the road network should remain functional for
prevailing situations. Traffic engineering solutions, humanitarian logistics.
such as the use of intelligent transport systems
(e.g., signalized intersections, advanced detection Decongest local and national transport
systems, incident detection), will be installed corridors. On the matter of encroachment along
particularly in urban areas. transport corridors, the Department of the Interior
and Local Government (DILG), together with the
Anti-overloading measures, including penalties, Philippine National Police (PNP) and respective
will be strictly enforced and strengthened LGUs, will sustain directives for all concerned
to prevent the rapid deterioration of roads. units to clear all roads of illegal structures and
Additional weighbridges and portable weighing abandoned construction materials, and rehabilitate
devices will be set up to broaden the scope of damaged road facilities. To complement the
implementation. To ensure compliance with ongoing inventory of national roads by the
international standards on vehicle safety and DPWH and to establish a complete database
environmental impact, the Motor Vehicle Type and monitoring of the Philippine road network,
Approval System and Motor Vehicle Inspection LGUs will also be required to prepare an inventory
System will be implemented. of all roads within their jurisdiction as part
of their geographic information system-based
Training of drivers and traffic enforcers will be Local Roads Network Development Plan and their
continued to ensure that investments in transport respective Local Public Transport Route Plans as
facilities and other assets are preserved through part of their CLUPs.
proper use.
Expand the rail network and other mass
Sustain the expansion and enhancement of transit systems and ensure their accessibility,
strategic corridors. Future developments will be affordability, convenience, and reliability.
pursued for the national road network with the The rail network will be expanded by developing
planned implementation of the Philippine High new lines in high-density corridors, taking into
Standard Highway Network Program Phase II, consideration the plans for road-based transport
which will add about 1,044.6 kilometers (km) of infrastructure, especially in cases where projects
high-standard national roads and expressways will utilize the same right-of-way. Consistent
across metropolitan areas (884.7 km in Luzon, with the objective of moving more people and
73.8 km in Metro Cebu, and 86.1 km in Metro cargos rather than vehicles, priority on the
Davao). Toll expressways will be equipped with right-of-way will be accorded to rail-based
transport over road-based transport.

Chapter 19 Accelerating Infrastructure Development | 321

Tourism, trade, and commerce will be supported Air Transport
through enhanced interconnectivity of passenger
and freight railway transport development to Improve the operational efficiency of airports
generate opportunities for local area development, and address constraints to optimal capacity
as well as expansion of local markets to promote utilization. All possible means to achieve
productivity and trade competitiveness. operational efficiency and the optimal capacity
utilization of airports will be explored.
Noting the significance of railway in transit- In particular, strategies will focus on decongesting
oriented development strategies, the completion of air traffic serving the Greater Capital Region,
planned interregional railway projects will be such as building a new international airport,
prioritized to facilitate greater interregional guided by an optimal airport strategy. In the
accessibility, linkages, and seamless multimodal interim, movements in both land and air
transport network and to increase opportunities facilities at the Ninoy Aquino International
for economic activities. The establishment of Airport will be optimized through procedural
rail-based connection to seaports, dry ports, measures, which involve airspace management
inland container depots, and airports will also and adoption of collaborative decision-making
be pursued for faster movement of freight and among the air traffic control, airlines, and ground
to decongest traffic along road networks to/from handlers (e.g., by using ground movement radar
said terminals. and other technologies). Runway capacity will be
optimized by cutting aircrafts’ occupancy times.
Transport network operators, both private Development plans for the Clark International
and public, will continue to forge convergence Airport (CRK) will be continued, including
undertakings to achieve integrated fare collection the establishment of a fast and direct access to
systems. Stored value cards or similar electronic Manila through a rail system providing non-stop
media will be used to ensure maximum and commuter services.
convenience for passengers and enable easy
transfer between modes. While non-contact Implement an optimal airports system strategy
fare system is already being used in LRT/MRT, to expand airport capacities at pace with
migration from physical stored value cards to growing demand. Existing provincial airports
mobile, contactless payment will be expanded to will be rehabilitated, while smaller or community
other public transport modes to reduce the risk airports will be upgraded to standard Principal
of spreading diseases as part of health and safety Class 2 classification to cater to commercial
protocol in the public transport sector. flights for better connectivity with various tourist
destinations. On the other hand, Aeronautical
Policies and guidelines on procurement activities Lighting System and Instrument Landing System,
in the railway sector will be customized to ensure can be installed in airports with appropriate
the availability of highly-specialized spare parts facilities complying with the existing civil aviation
and supplies. regulations to enable night-time operations
and improve accessibility, especially for those
To ensure that the quality of rail and mass transit identified to readily accommodate said technology.
systems are up to standards, capacities of skilled The remaining regional airports will be assessed
workers in mass transit systems, especially rail, to determine night-landing viability. Appropriate
will be upgraded. In view of the forecasted need design and operation measures will be identified
for skilled workers manning the planned public to address limitations and achieve the goal of 100
mass transit projects, the Philippine Railway percent coverage for all regional airports catering to
Training Center will continue to provide commercial flights.
comprehensive technical training for train drivers
and other rail professionals.

322 | Updated Philippine Development Plan 2017-2022

Facilities and equipment will be modernized the government’s resources in the initial
(e.g., night-rating) in compliance with International development and construction of airport
Civil Aviation Organization (ICAO) and infrastructure to deliver an enhanced passenger
International Air Transport Association standards, experience. In view of these, regulatory functions
especially those that serve island provinces in of air transport agencies will be strengthened.
Visayas and Mindanao. Security features/aspects
should be integrated in the planning and design To reduce the impact of interruptions in airport
stages of development and/or rehabilitation of operations during natural and human-induced
air transport facilities, to ensure allotment disasters, existing intervention protocols between
of sufficient space for security equipment airlines and airport authorities will be reviewed.
(technology), processes (passenger and baggage Equipment inventory will be modernized and
throughput), and personnel (ergonomics). airport training modules will be further enhanced.
New investments will be made to service future To ensure that passengers receive appropriate
destinations corresponding to the spatial and compensation or accommodation in case of
socioeconomic context and passenger demand. flight cancellations pursuant to the Air Passengers
Bill of Rights, more public assistance officers
Support the role of airports in spurring local will also be deployed.
tourism development and new growth centers.
To provide stimulus to local tourism development, Consider environmental impacts of airport
especially in island provinces, tourism clusters operations. The Civil Aviation Authority of
identified by the Department of Tourism will be the Philippines and other airport authorities
served by a primary airport. Airport development (e.g., Manila International Airport Authority,
in regional areas and island provinces will follow Mactan-Cebu International Airport Authority,
a hub-and-spoke model, where the gateway etc.) will ensure that airports will be ready for the
airport will connect to feeder airports providing implementation of the Second Phase of Carbon
access to areas of destination with natural and Offsetting and Reduction Scheme for International
cultural tourism sites. Aviation (CORSIA).3 The Second Phase, which
will be implemented from 2027 through 2035,
The role of airports as a catalyst for new growth will require the cooperation of airlines. As such,
centers and smart cities will be explored, taking the groundwork on the necessary policy and
off from the experience in CRK where demand infrastructure should be undertaken to ensure
growth complements and is reinforced by various seamless implementation.
ongoing mixed-use developments in Northern
and Central Luzon (e.g., the New Clark City). Maritime Transport

Strengthen and rationalize air transport Improve port facilities to ensure that inter-island
regulations, policies, and protocols and shipping, including a stronger roll-on/roll-off
modernize facilities to enhance air passenger (RORO) network, will remain a viable option
experience. The private sector will play an for transporting people and cargo. Breakwater
important role in the operations and maintenance facilities will be constructed for wave protection
and future upgrading of airport facilities. in order to prevent ports from deteriorating.
Leveraging on its financial capacity, operational International standards will be followed in the
efficiency, and technological advantage, expansion of port facilities. In addition, navigation
the private sector will be tapped to complement channels to accommodate larger vessels will be

3
The CORSIA, an initiative of ICAO, will be implemented in three phases: pilot phase (2021-2023); followed by a first phase (2024-2026); and a
second phase (2027-2035). Participation in the pilot phase and first phase is voluntary (until 2026), after which, more stringent requirements from
the scheme would be mandated to all member states. The Philippines has voluntarily applied to take part in the CORSIA and has submitted an
action plan to ICAO.

Chapter 19 Accelerating Infrastructure Development | 323

installed to ensure the sustainability and efficiency when road infrastructure in urban centers are
of ports. These approaches will yield economic damaged. Support for low-income LGUs and coastal
gains through lower transport cost, increased and island communities in establishing their own
lifespan of products, and more profits and job seaports will be continued to promote local trade,
opportunities, especially for fishing communities. tourism, livelihood, and disaster preparedness.

Sustain the optimal utilization of existing and Implement the Maritime Industry Development
additional port capacities. The government Plan (MIDP). To accelerate the integrated and
commits to optimize the utilization of existing rational development of the country’s maritime
ports. Among the precursory measures for industry, eight priority programs, as well as
container ports are the development of a freight other strategies espoused in the MIDP, have
rail service between Clark and Subic, promotion commenced implementation. These include
of the use of inland container terminals, the Nautical Highway Development Program,
optimization of port container yard utilization, Maritime Tourism Program, and National Fishery
and integration of port management plans in Industry Development Program to improve
the intermodal and multimodal approaches in the capacity, efficiency, safety, and security of
the logistics network development. These efforts shipping, as well as ship building and ship repair
will be sustained with the implementation of services (SBSRs).
additional plans, programs, and projects that
facilitate efficient flow of goods and services A global maritime hub for SBSRs and related
(e.g., dry ports, freight rail, and construction or ancillary businesses with a world-class research
expansion of regional ports). and training center in the country will be
developed to bring together all maritime-related
The direct connection between Manila and companies in one eco-maritime industrial park.
Batangas Ports, through the Cavite Gateway This will provide comprehensive services to
Terminal, will be further enhanced, and domestic and international passengers and crew,
co-loading (modified cabotage) will be promoted and cruise and cargo ships plying the Philippine
to encourage shipment between domestic ports. waters for maintenance and other related services.
Existing dry ports will be improved and new ones
will be built to provide support to manufacturers, Safety and Security
importers, and exporters. Logistics hubs will
be developed, where applicable, to connect Adopt a universally-accepted security structure
industrial and manufacturing zones and agro- to improve safety and security of the public
industrial areas to major port areas. Further, the transport system. An independent body will
capacity of the BIMP-EAGA Transit Transport be created to investigate transport accidents
Route in Mindanao will be improved to facilitate and provide transport safety recommendations
swift intra-EAGA transport. to minimize activities that may cause injury,
death, loss, or damage to property. In the interim,
Promote maritime transport as an alternative the Office of Transportation Security (OTS) will
sustainable mode. Taking off from the continue to conduct compliance monitoring
initiatives on the revival of the Pasig Ferry activities (CMA) such as security audit,
System as a sustainable alternative to road-based inspection, and test in public and private transport
transport, the government will develop the terminals to ensure that the security measures
Coastal and Inland Waterways Transport System and procedures are implemented and in
to further reduce urban traffic congestion and compliance with the standard presented in their
pollution, expand the intermodal transport respective security plans. Similarly, concerned
network, increase regional connectivity, and create agencies will ensure that projects are designed
new business opportunities. The same system can with appropriate safety standards. Advanced
also be utilized for disaster response, especially security systems for land-based terminals, airports,

324 | Updated Philippine Development Plan 2017-2022

and seaports will be procured and installed. and boarding checks that can be conducted
The Philippine Coast Guard (PCG) will continue electronically will be automated and self-service
its capability-building programs to ensure options will be provided to minimize person-to-
presence and control over the country’s vast person contact. High-end temperature scanners
maritime domain. To ensure safety in marine and sanitation facilities in major international and
navigation, the PCG will continue the installation domestic airports and ports will be set up and
of aids to navigation such as buoyage systems, mandatory temperature screening will be imposed
lighthouses, and other related facilities. on inbound and outbound passengers. Passenger
New floating and air assets will be procured and movement during boarding and disembarkation
a sufficient well-trained personnel complement inside the cabin may be limited to smaller batches
will be provided. To serve the growing tourism to maintain physical distancing. Additional
and maritime industry, new bases or stations cleaning and sanitization schedules by the crew
will be developed in strategic locations. before boarding and after disembarkation should
be implemented.
Strictly implement road safety measures.
In modernizing traditional public utility
Water Resources
vehicles and implementing new public mass
transit systems, the following safety features will
Pursue water supply and sanitation (WSS)
be incorporated: side entry/exits that can be
policies, plans, and programs in accordance
easily opened from either side, emergency exits,
with the key reform agenda identified in the
speed limiting technologies, dashboard camera,
Philippine Water Supply and Sanitation Master
closed-circuit television, and global positioning
Plan. With the amplified importance of WSS
system, among others. To reduce road crash
during the COVID-19 pandemic and moving
incidents, street crossings for school zones and
forward, the reform agenda will focus on the
other public spaces along national roads should
following areas, which are ultimately aimed at
be replaced with pedestrian overpass/underpass,
making water services adequately accessible for all:
if applicable, and low-speed vehicles, such as
(a) establishing effective WSS sector institutions;
tricycles and pedicabs, must be restricted in
(b) strengthening regulatory environment;
plying national highways. Other road safety
(c) creating and ensuring effective WSS services;
laws and ordinances will be strictly implemented
(d) balancing water supply and demand; (e) building
including the use of dedicated bus lanes,
climate resiliency; (f) enabling access to funding
motorcycle lanes, and loading/unloading
and financing; (g) managing data and information;
areas; Land Transportation and Traffic Code
and (h) driving R&D.
(RA 4136); Anti-Distracted Driving Act (RA
10913); Children’s Safety on Motorcycles Act (RA
The creation of an apex body for water resources
10666); and Road Speed Limiter Act (RA 10916).
and the establishment of an independent
economic regulatory body for WSS will remain as
Mainstream risk-based health protocols at the
priority reforms in the sector. As envisioned, the
country’s gateways. Considering that airports
apex body will be primarily responsible for the
and ports are the country’s gateways and
formulation and implementation of a comprehensive
frontline against the entry and transmission
water development and management plan for
of pandemic diseases, there is a need to adopt
the Philippines in accordance with the principles
operational measures that will minimize the
of integrated water resources management
risk of transmission at the terminals and
(IWRM) and integrated coastal management.
onboard aircrafts and vessels or cruise ships.
The independent water regulatory body, on the
Health declaration forms of passengers will be
other hand, will harmonize regulatory practices,
administered and collected in electronic form
processes, and fees, among others, to facilitate
and in advance prior to passenger departure.
and rationalize the expansion, improvement, and
Procedures such as check-in, immigration,
efficient provision of WSS services in the country.

Chapter 19 Accelerating Infrastructure Development | 325

In the interim, the government will also continue to With the reactivation and reconstitution of the
push for an executive issuance that will strengthen El Niño Task Force 4 pursuant to Memorandum
the National Water Resources Board (NWRB) Order No. 38, s. 2019, NEDA, as overall head,
to address fragmentation in the water sector will revise and update the Roadmap for Addressing
and provide the overarching framework for an the Impacts of El Niño. NEDA will also facilitate
integrated and coordinated policy-making, action on the pertinent recommendations
planning, and implementation of programs emanating from the National Roadmap for Water
and projects. Security currently being prepared by NWRB.
Said roadmap will incorporate the possible
To ensure access to safe and adequate water to cope impacts of future epidemics, pandemics,
with the inevitable increase in water demand and and climate change or variability to address the
consumption for the precautionary or mitigating impending water crisis.
measures for COVID-19 and other diseases, the
government will fast-track the implementation Adopt a common/unified framework for resource
and expansion of WSS infrastructure and services. allocation for WSS and review the National
As a complement, a water demand management Sewerage and Septage Management Program
program will likewise be implemented through: (NSSMP) to accelerate the provision of
(a) conduct of intensive public education campaign WSS services. Under the common/unified
on water demand management; (b) formulation framework for resource allocation, the national
of policies and strategies for efficient water supply government will ensure the availability of the
system; and (c) conduct of researches on water required budget allocation for WSS projects
storage and collection systems. across the country, which will include funding
for project preparation, development activities,
Pursue initiatives on attaining water security. and capacity-building interventions on the
Increase in water demand arising from an operation and maintenance of facilities.
expected rise in individual hygiene practices and Likewise, in accordance with the Clean Water Act
disinfection of public spaces due to COVID-19, (RA 9275), sewerage and septage management
as well as rising support to urban/community projects will be implemented. Given this,
farming practices, would call for new water the government will explore the expansion
sources to ensure that demand is met, especially or restructuring of the NSSMP, in line with
in areas suffering from water scarcity. Thus, principles of the common/unified framework
the government will continue to support for resource allocation for WSS to accommodate
the development of new water sources and more beneficiaries other than sewerage or septage
prioritization of surface water development, management systems in highly-urbanized cities
where feasible. Groundwater recharge system and first-class cities or municipalities. Such
in the development of the surface water source expansion and restructuring of the NSSMP may
for critical areas will be incorporated, wherever include the review and restructuring of the cost-
possible, in accordance with prescribed standards. sharing scheme with the LGUs on the basis of
Measures on efficient water utilization and absorptive capacities and performance, as well as
conservation, as well as the use of eco-efficient technical assistance and revision of cost-sharing
water infrastructure such as, but not limited to, schemes in the preparation of feasibility studies.
rainwater harvesting, water reuse, proper
agricultural and agronomic planning for irrigation,
and other emerging technologies on WSS will
continue to be promoted to avert water shortage.

4
Created pursuant to Executive Order No. 16, s. 2001.

326 | Updated Philippine Development Plan 2017-2022

Optimize funds for irrigation development floodwaters as “disaster to be prevented” into
and strengthen technical capacities for the a “resource to be managed” is a necessary
development and maintenance of irrigation step in attaining the objectives of the IWRM
facilities guided by the National Irrigation framework. In this regard, storage of excess
Master Plan. Water allocation for irrigation floodwaters will be prioritized in the context
will have to be managed efficiently to offset the of water conservation and efficiency measures:
imminent increase in domestic or municipal flood management infrastructure that will also
water consumption to combat COVID-19. serve as potential source for domestic water
With the passage of the Free Irrigation Service supply, irrigation, and/or hydropower generation,
Act (RA 10969) in 2018, funds for the restoration among other possible uses, will be implemented,
and rehabilitation of irrigation infrastructure and where feasible. Meanwhile, in anticipation of the
facilities will be optimized in accordance with completion of flood control master plans and
the recommendations of the National Irrigation studies for the major river basins, timely
Master Plan, which is currently being finalized, financial support for the full implementation and
to ensure food security amidst the pandemic. maintenance of flood management and mitigation
Specifically, the government will shift its focus in measures under said master plans will be provided
the short term towards funding the operation and through the inclusion of the priority projects
maintenance, rehabilitation, and/or restoration in the investment program of the national
of existing irrigation systems across the regions, government. Under the proposed creation of
instead of funding for the construction of an apex body for the water sector, a comprehensive
multi-year large irrigation systems. database of all water-related data including
flood-related information, will be established
Other developments in the agricultural sector, and regularly updated.
such as RCEF and support for diversified,
non-traditional, and high-value crop farming,
Energy
will also be taken into consideration in setting
the direction for the irrigation sector under the
Integrate and enhance the energy plans. The
said master plan. Likewise, to ensure effective
Philippine Energy Plan (PEP) will be enhanced by
and sustainable operations and maintenance of
adding a spatial dimension that informs investors
irrigation facilities, there will be capacity-
on where to invest their energy projects.
building activities to improve the technical skills
The PEP will integrate the inventory of traditional
and workforce of LGUs, National Irrigation
and renewable upstream resources with the
Administration, Department of Agriculture-
downstream and the Power Development Plan.
Regional Field Offices, Bureau of Soils and Water
Renewable energy (RE) zones will continue to be
Management, Irrigators’ Associations, and Small
identified and developed to facilitate connection
Water Irrigation System Associations.
to the transmission and distribution facilities.
Other fuel resources and existing logistical
Improve coordination between flood
facilities will be supplied to encourage the
management efforts and undertakings in other
investments that will improve the operations
sectors. Pending the creation of an apex body
of the energy service and goods providers.
for the water sector, DPWH, as the de facto
lead agency for flood control and management,
Implement policy reforms to promote
and other relevant agencies will intensify
competition and encourage investment in the
coordination between flood management efforts
energy sector. The Department of Energy (DOE)
and undertakings in other sectors, such as solid
continues to pursue the policy reforms under the
waste management, reforestation, and housing,
Electric Power Industry Reform Act (EPIRA)
among others, under the general framework
of 2001 (RA 9136) and the Renewable Energy
of IWRM and river basin and land-use planning.
Act of 2008 (RA 9513). Policy issuances will be
Likewise, a paradigm shift from looking at
implemented to enhance the consumers’ power

Chapter 19 Accelerating Infrastructure Development | 327

of choice (i.e., Amended Policy on the Retail Under the context of economic recovery and
Competition and Open Access and the Green spurring growth, more choices and more
Energy Option), the reduction of costs (i.e., affordable electricity are crucial for industrial,
abolition of the Universal Charges – Missionary commercial, and residential customers.
Electrification for new contracts and the Uniform To encourage the entry of more power generation
Billing Policy), and the enhancement of benefits investors, the government enacted the Energy
of host communities of power generation Virtual One-Stop Shop (EVOSS) Act (RA
facilities and energy resource developers. 11234), Executive Order No. 30, s. 2017, and the
LGU Energy Code (DOE-DILG Joint
As an enabling mechanism for host communities Memorandum Circular 01-2020), which
to respond to the ongoing COVID-19 streamline the permitting processes for energy
pandemic, the DOE Department Circular (DC) projects. Phase 1 of the enhanced EVOSS system
2020-04-0008 5 issued on April 6, 2020, is targeted to be carried out by end of third
authorizing host LGUs to utilize the Energy quarter of 2020 in an effort to promote faster
Regulation (ER) 1-94 Funds for COVID-19 related and simplified permitting process of power
response mechanisms. projects. This will involve online submissions
of all the needed applications, documentary
The strengthened Competitive Selection Process requirements, and online payment for charges
(CSP) in securing power supply contracts of and fees. Moreover, the EVOSS will consider the
all distribution utilities’ (DU) procurement of expansion of its coverage to all the other
power supply agreements for their captive non-power energy projects, which will also be
market will also be sustained. Implementation of implemented in phases.
the CSP has already resulted in the reduction of
generation rates for the Manila Electric Company, To meet the increasing energy demand,
which covers around 50 percent of the consumers. DOE will continue to explore the development
of all the available energy resources, including
The full commercialization of the Wholesale nuclear energy option. The National Smart Grid
Electricity Spot Market (WESM) in Mindanao Policy Framework and Roadmap for distribution
will be pursued to provide a competitive market utilities (DOE DC 2020-02-0003) will likewise
for buying and selling of electricity that is be implemented. Smart grid uses innovative
not covered by bilateral contracts, and at the technologies to modernize electric infrastructure
same time, promote efficiency in the scheduling towards empowering consumers, ensuring
and dispatch of generation capacities in the energy supply flexibility and security, improving
region. Meanwhile, new market features and electric grid performance and asset utilization,
enhancements to systems and procedures will and protecting the environment (e.g., through the
be introduced to improve the existing WESM use of smart meters).
in Luzon and Visayas, including the transition
into the five-minute WESM replacing the current Further, the privatization of power plant assets,
one-hour trading interval. The WESM in which include the capacity of government-owned
Mindanao and the enhanced WESM in Luzon and generating plants and contracted capacity of
Visayas are expected to operationalize once the independent power producer (IPP) contracts,
ERC approves the price determination will be accelerated. To ensure the success of
methodology (PDM) adopting the five-minute asset privatization, the Power Sector Assets and
dispatch interval and certification of market Liabilities Management (PSALM) Corporation
readiness (for Mindanao). will engage third-party advisors to conduct
an extensive study that will serve as basis for

5
Rationalizing the Utilization of ER 1-94 Fund by Host Local Government Units in Response to COVID-19 Public Health Emergency.

328 | Updated Philippine Development Plan 2017-2022

formulating options and structures for the in farming and crop processing methods and
privatization of IPP-contracted capacity and machineries, such as, but not limited to, pump
real estate assets. Options include the sale or drip irrigation, rice hulling, and milling.
through public bidding of the power plant,
together with the underlying land owned by Moreover, the use of RE systems in the health and
PSALM or the government PSALM will also education sectors is being considered, such as the
streamline and simplify bidding procedures to use of off-grid powered health and educational
attract more bidders. Further, it will observe facilities using RE and energy storage systems.
protocols and make use of applicable virtual
and blended platforms in the privatization or In implementing the net metering policy, 6 the
disposal process to ensure that public bidding government will review the current pricing
schedules will push through under the new normal. methodology and financing mechanisms that
will help in the adoption of PhotoVoltaic (PV)
As structural reliability is important in the new in the country. DOE will continue to conduct
normal, major hydroelectric power plants under policy studies to accelerate the positioning of RE
government ownership will be rehabilitated and in the country.
uprated. Electricity generated from undisposed
power assets throughout the country will In line with the thrust of promoting more
continue to be provided to distribution utilities robust regional and local development, creating
and other power customers at regulated rates. livelihood opportunities, and promoting
inclusive growth, the Electric Cooperative-owned
Expedite the implementation of remaining policy Distributed Generation Facility Program will
mechanisms under the Renewable Energy Act be implemented. This program will develop
of 2008 (RA 9513) to further encourage RE distribution generation facilities using various
development in the country. Policy issuances RE sources to be owned by the 121 electric
on the Renewable Portfolio Standards and the cooperatives. In support of the Balik Probinsiya,
Green Energy Option will be implemented Bagong Pag-asa Program, it will provide
to require mandated electric power industry additional power sources that can stimulate
participants to source a certain percentage of investors to relocate investments and cater to
their power mix from eligible RE sources such the requirements of the people in the provinces.
as biomass, geothermal, solar hydropower,
ocean, and wind. Establishment of the Continue to develop transmission and
RE market will facilitate the trading of RE distribution facilities, and projects that will
Certificates. To strengthen R&D in the transmit electricity efficiently to various load
RE sector, Affiliated Renewable Energy centers and interconnect the entire grid and
Centers will continue to be established. other areas. The country’s power transmission
network will be unified to allow flexibility in
The water-energy-food nexus will be incorporated the power grid system. Under the One Grid
in the design and facilitation of all the energy Philippines, the three major grids will be able
projects to conserve water, ensure energy to share excess supply. This program optimizes
security, and maximize food production. Instead the use of available energy resources and
of competing with the water and food sectors, additional generation capacities. To further
complementation will be targeted through the improve the delivery of power services,
introduction of RE and energy storage technologies the government will harmonize the Power
Development Plan by integrating the

6
Net-metering is a consumer-based renewable energy incentive scheme that allows consumers to produce their own power generation using
eligible renewable energy facilities and to deliver excess electricity supply back to the electric grid to offset their electricity consumption at 100 kW
maximum.

Chapter 19 Accelerating Infrastructure Development | 329

Transmission Development Plan, Distribution the Mini/Micro-Grid System will be allowed
Development Plan, and the Missionary and encouraged through Qualified Third Party
Electrification Development Plan with the (QTP) schemes, joint ventures, and the National
corresponding RE targets under the National Power Corporation-Small Power Utilities Group
Renewable Energy Program. It will also support Mini-Grid Scheme. Further, RE-diesel hybrid
the development of the Philippine Smart Grid. power systems will also be developed to provide
The National Transmission Corporation, its reliable electricity services at more affordable rates
concessionaire, the National Grid Corporation in off-grid areas.
of the Philippines, and the DUs will coordinate
with concerned agencies (e.g., DPWH) to To facilitate private sector participation in the
explore the possibility of including the future achievement of the total electrification target
installation of power transmission or distribution of the government, existing guidelines on the
lines to connect island grids and other areas participation of QTPs will be further streamlined
in the design of proposed inter-island bridges. and enhanced.

Ensure timely implementation of electrification Promote the utilization of alternative fuels and
programs, especially for remaining unelectrified new advanced energy technologies to diversify
off-grid islands, geographically-isolated and the country’s energy resources and mitigate the
depressed areas, and last-mile communities. adverse impact of energy use on the
DOE is closely monitoring the implementation of environment. The Alternative Fuel Roadmap
the three major forms of electrification programs will be implemented to promote a technology-
— household electrification, grid electrification, responsive energy sector. For one, electric
and off-grid electrification — with the aim of fast- vehicles, where viable, will be supported to
tracking the programs to achieve total household reduce dependence on conventional fuels.
electrification by 2022. These are especially This involves the development of policy guidelines
critical in supporting regional development and regulatory framework for Electric Vehicle
under the new normal, where the need for Charging Stations, as well as the development
physical movement to the biggest economic of Minimum Energy Performance for Electric
areas in the country would be tempered by the Vehicle Charging Stations.
practicality of online connectivity and productivity.
Implement the Energy Efficiency and
As part of the electrification strategies under the Conservation (EE&C) Act (RA 11285) and the
Household and Grid Electrification Programs, Energy Efficiency and Conservation Roadmap.
house-wiring subsidy will be provided for In April 2019, the EE&C Law was enacted to
unenergized households in areas with distribution institutionalize energy efficiency and conservation
facilities through the DOE’s Nationwide as a national way of life for energy consumers.
Intensification of Household Electrification. The law promotes the efficient and judicious
Distribution line facilities will also be extended utilization of energy and advocates the use of
to unserved areas through the National RE technologies.
Electrification Administration’s Expanded
Sitio Electrification Program, Barangay Line In line with this initiative, the government will
Enhancement Program, and Expanded Household take the lead through the Government Energy
Electrification Program. Management Program involving efficiency and
conservation measures in the government’s use of
Under the Off-grid Electrification Program, electricity and fuel.
individual PV Solar Home Systems will be
installed by DUs via DOE’s Access to Sustainable
Energy Program’s PV Mainstreaming Program.
In addition, the entry of the private sector in

330 | Updated Philippine Development Plan 2017-2022

To help LGUs reduce their energy consumption, infrastructures in accordance with the Build Back
the law also requires the development of Better principles. This measure will be facilitated
local energy efficiency and conservation plans for through the DOE Department Circular (DC) 2018-
incorporation in the local development plans. 01-0001 on the “Adoption of Energy Resiliency
With the law in place, additional power supply for in the Planning and Programming of the Energy
the country will come not just from new power Sector to Mitigate Potential Impacts of Disasters”
plants, but also from energy savings as a result of that was signed in 2018 to ensure an energy system
EE&C measures. that is resilient from risks and vulnerabilities
from both natural and human-induced hazards.
Encourage investments in the upstream energy
sector. To renew investor confidence in the
ICT Infrastructure
Philippine upstream energy sector, DOE will
continue to promote the Philippine Conventional
With the aim of transitioning into the digital
Energy Contracting Program, which offers 14
economy, the digital connectivity agenda, mainly
pre-determined areas for upstream development,
driven by the government, will be of utmost
with an option for investors to nominate their
importance under the new normal. Digital
own prospective exploration area.
infrastructure will need to be provided to address
the digital divide that has been heightened due
Pursue the development of the natural gas
to the pandemic. Policy reforms will also be
industry. The development of the natural gas
introduced to facilitate digital transformation.
industry will provide an additional alternative
for consumers. The Philippine Downstream
Fast-track the government’s digital connectivity
Natural Gas Regulation sets the policy direction
program. Investments in digital infrastructure
and guidance for interested investors on the
will need to be reviewed to support current
construction of natural gas facilities such as
demand for broadband internet access to
import receiving and regasification terminals,
enable telecommuting (work-from-home set-
network of transmission, and distribution
up), distance learning, telehealth, business
pipelines, under a regime of fair competition.
for micro, small, and medium enterprises,
online financial services, and as support to
Pursue the establishment of a strategic
the Balik Probinsya, Bagong Pag-asa Program.
petroleum reserve. A strategic petroleum reserve
will shield consumers from volatile international
The digital connectivity program, which
oil prices and secure the country’s petroleum
encompasses the National Broadband Program
requirement. In the short to medium term,
and the Free WiFi in Public Places Program,
the project envisions to cover the immediate
will be prioritized and fast-tracked to accelerate
importation of oil products and the construction
the deployment of the needed digital infrastructure
of additional oil storage facilities and small-
that can serve the government, businesses and
scale refinery. This will serve the dual purpose
industries, and the public, especially those in
of generating profit for the government and
the countryside. The program embodies the
augmenting the production and supply of refined
government’s efforts in enhancing internet
petroleum products in response to the rising
accessibility to bridge the growing digital divide.
conflicts in oil-producing countries.
The physical infrastructure that will interconnect
government offices via the Government Network
Adoption of the Energy Resiliency Policy.
(GovNet) can facilitate communication, address
The government will institutionalize the
data gaps in various infrastructure subsectors,
development, promotion, and implementation of
and allow better sharing and collaboration
a comprehensive Resiliency Plan (RCP), as well
of the different units of government for
as incorporation of mitigation improvements into
coherence of initiatives. This aims to enable more
the reconstruction and rehabilitation of damaged
LGUs to offer ICT-enabled government services to

Chapter 19 Accelerating Infrastructure Development | 331

the public. Alongside this are cyber resiliency and Social Infrastructure
security measures for the protection of government
data and infrastructure. Social infrastructure is fundamental in the
provision of adequate basic social services to
Towards building our digital society and digital achieve the human capital development objectives
workforce, the broadband connection will also of the country. The implementation of social
be provided to public segments of the country infrastructure projects will have to be ramped up to
including public hospitals, rural health units, make up for the slow progress in the first three years
public schools, state universities and colleges, of the Plan implementation.
and other public places. This will support digital
education, distance learning, and telemedicine Importantly, in line with the whole-of-government
towards developing an ICT-based knowledge approach, LGUs must also be able to step up
base and extending social services to far-flung in the provision of devolved social services,
or last-mile areas. Under the new normal, including education, health, and sanitation.
the government will prioritize the provision
of free WiFi in other public places including Education
community quarantine sites, plazas, transport
terminals, airports, and seaports, among others. The Department of Education (DepEd), in
coordination with DPWH, will endeavor to
Pursue ICT policy reforms to support the complete by 2022 all programmed school projects
digital connectivity agenda. To complement under the Basic Educational Facilities Fund which
the program initiatives, the government will have been abandoned or unfinished since 2014.
need to pursue the necessary policy reforms and Furthermore, to enhance its School Building
interventions in the ICT sector. Program, DepEd has included the following
strategies in its Public School of the Future for
• The open access policy removes barriers implementation in School Year (SY) 2020-2021:
to the entry of multiple, competing, and
independent players in various layers of the Prioritize alternative learning platforms for
broadband network. It aims to provide access formal education. Amidst the COVID-19
to the facilities of existing national backbone pandemic, education systems have largely shifted
network operators under terms that are away from traditional “face-to-face” forms of
nondiscriminatory and transparent. educational instruction. In this regard, the DepEd
has adopted the blended learning system starting
• Streamlining and harmonizing broadband- SY 2021-2022, which includes online distance
related permits, fees, and processes will hasten learning, television and radio-based instruction, and
the rollout of broadband infrastructure. distribution of printed learning modules to students,
Permitting processes, fees, and requirements to ensure that quality learning opportunities
across national government agencies and are made available to public school students.
LGUs need to be reduced, simplified, and Toward this end, universal access to reliable
harmonized to encourage players to enter the and affordable internet connection for the
market. LGUs may also establish online one- education sector will be prioritized. In addition,
stop-shops for these purposes. DepEd may consider providing its faculty and
students access to necessary ICT equipment
• Infrastructure sharing encourages the shared (both hardware and software) to enable them to
use of passive ICT infrastructure to reduce the access virtual classes and other online learning
associated costs in the broadband rollout. This modules. Given the foregoing, cooperation
will also expand wireless network coverage among concerned national government agencies
and enhance the quality of ICT services across and LGUs should be ensured for the successful
the country, including in underserved and implementation of the blended learning program.
unserved areas.

332 | Updated Philippine Development Plan 2017-2022

Efforts to address backlogs in the provision of Health
education facilities will resume. As the country
recovers from the pandemic and attendance Sustain strategic implementation of health
to physical classes are then deemed safe for facilities. With the strain on the capacities of
resumption, DepEd, in coordination with health facilities brought about by medical crises
DPWH, will continue to address its current such as the COVID-19 pandemic as well as the
backlog in education infrastructure, especially expected increase in demand for health services
in geographically isolated and conflict-affected post-pandemic, it is imperative for the national
areas. With the required physical distancing government to continue to invest in health
measures under the new normal, DepEd may service improvement. Construction of health
need to revisit its existing design standards and infrastructure facilities that are energy-efficient,
minimum specifications for education facilities disaster-resilient (e.g., hospitals and healthcare
(e.g., classroom size and class size). Nevertheless, facilities, including testing facilities, quarantine,
the following facilities will need to be and isolation facilities) and responsive to health
continuously provided or made accessible to and medical needs that have recently emerged
public schools: with the pandemic will have to be prioritized in
accordance with the existing standards to prepare
• Clean and potable water supply, comfort rooms, and ensure the sufficiency of the country’s health
wash, and other sanitation facilities; infrastructures not only during the path to
recovery from COVID-19 but more so in case of
• Electrification that considers utilization of any similar occurrence in the future. DOH will
renewable energy sources -- off-grid schools conduct a comprehensive needs assessment of
may be equipped with alternative sources of critical health facilities involved in service delivery
renewable energy through installation of solar networks, especially with respect to those that are
panels, among others; vital in dealing with COVID-19. The assessment
will form part of the basis for determining
• Clinics that will also serve as multi-service which facilities will be constructed (especially in
hubs catering to the various health, nutrition, underserved areas), upgraded, or expanded under
and medical needs of learners; and the Health Facilities Enhancement Program.

• Efficient disaster response through a Improve epidemiological and surveillance

streamlined warehouse scheme for storage and capacities for COVID-19 and other infectious
inventory of supplies and for easier deployment diseases. In response to the pandemic and in
and delivery of materials and equipment, such preparation for the possible emergence of other
as temporary learning spaces or classroom highly infectious diseases, there is a need to
tents, to replace those damaged by calamities. establish an integrated health data management
system that tracks and links patient referrals
Further, DepEd will facilitate convergence and laboratory testing and monitors the supply
initiatives with the DPWH, Department of of available equipment, medicines, and blood,
Health (DOH), Department of Social Welfare among others. Further, there may be a need to
and Development, and other agencies in all construct and establish an operational Level 2
governance levels, including LGUs, to address Biosafety laboratory with adequate number of test
the broader needs of the education sector. kits in every region.

Chapter 19 Accelerating Infrastructure Development | 333

Solid Waste Management Protecting clean and healthy
Enhance technical and financial capacities of environment
LGUs in implementing solid waste management
(SWM) initiatives in compliance with the Ensuring asset preservation
Ecological Solid Waste Management Act of 2020
(RA 9003). The Department of Environment and With emphasis on sustainability, safety, and
Natural Resources-Environmental Management resilience of infrastructure, asset management
Bureau, together with the National Solid Waste planning and innovative maintenance strategies
Management Commission, DILG, and relevant will be implemented to improve the infrastructure
stakeholders, will work towards enabling LGUs system’s performance. The conduct of
to implement the following SWM strategies: comprehensive vulnerability and risk assessment
of critical infrastructure, particularly in areas
• Facilitate clustering or pooling of resources of considered as COVID-19 hot spots – including
LGUs for common SWM facilities and services buildings that may serve as isolation or treatment
for enhanced economies of scale; facilities – is deemed urgent and significant.

• Explore innovative financing and improve Strengthen technical and financial capabilities
access of LGUs to financing windows, such for operations and maintenance. Training
as those being provided by government facilities will be established for the upgrading
financing institutions and through PPP of the technical and managerial skills of the
arrangements, to finance SWM programs; country’s workforce and building their capacity
to innovate. National and local level planning
• Adopt alternative technologies, including
will be rationalized and processes will be
waste-to-energy, considering institutional,
streamlined to expedite program and project
legal, and technical limits;
implementation. To optimize the use of funds for
infrastructure development, value engineering
• Support knowledge management through
and value analysis techniques at different stages of
increased investments in SWM-related
project development will continue to be applied.
innovation and R&D of appropriate
technologies;
The country’s regions will be developed through
• Operationalize the National SWM Fund and better rationalization of the budget allocation
study the re-institutionalization of the national that takes into account the geographic location of
government-LGU cost-sharing scheme for infrastructure projects and programs. This effort
SWM; and will be guided by masterplans and roadmaps
being formulated, maintained, and updated by
• Revisit the SWM Act of 2020 and make pertinent agencies.
necessary amendments towards facilitating and
expediting the provision of SWM facilities. Incorporate climate change adaptation and
disaster resilience measures and ensure
the security of infrastructure facilities.
Given the country’s high vulnerability to disasters
and the effects of climate change, disaster risk
reduction and climate change adaptation strategies
will be employed. The Energy Resiliency Policy,
issued to institutionalize disaster resiliency efforts,
aims to strengthen energy systems and facilities
such that these can quickly restore power and
provide alternative sources of energy in times

334 | Updated Philippine Development Plan 2017-2022

of emergency. To mitigate risks that threaten meet the growing need for clean and affordable
essential infrastructure services, there will be energy; cost-efficient technologies for the
coordinated efforts to enhance the security of management of wastewater and solid, hazardous,
infrastructure facilities through the adoption and healthcare wastes to protect public health
of appropriate technologies (e.g., surveillance and the environment; new transportation
systems, satellite-based navigation systems, technologies; climate change- and disaster-resilient
among others). Existing data infrastructure in the infrastructure designs; and new methodologies
National Disaster Risk Reduction Management for gathering and managing science-based data.
Operations Center will be upgraded. Joint exercises In this regard, the establishment of R&D facilities
in disaster response protocols and engagement of will be supported.
stakeholders in disaster risk reduction and climate
change adaptation will be conducted with the Improve the collection, management, and
end view of meeting international sustainability utilization of infrastructure data across all
standard rating systems for construction. subsectors for planning, programming, and
Sustainability incentive programs will be promoted policy-making. Updated, integrated, and
and the comprehensive and integrated strategic comprehensive data for various subsectors of the
environmental assessment will be undertaken. infrastructure sectors will be made available to
decision-makers to serve as basis in planning,
programming, and policy-making. Towards
Intensifying infrastructure-related R&D
this end, resources will be mobilized to identify
vital data and statistics for the infrastructure sector,
Recognizing that R&D can foster a more
with the intent of establishing comprehensive
sustainable and efficient way of building
databases based on available technological
infrastructure, the government will pursue
applications and platforms.
R&D on renewable energy and technologies to

Legislative Agenda
The table below contains the various legislative agenda for the infrastructure sector.

Table 19.2. Legislative Agenda to Accelerate Infrastructure Development

LEGISLATIVE AGENDA RATIONALE

Transport

This aims to help achieve a safe, secure, efficient, competitive, dependable, integrated, environmentally
sustainable, and people-oriented Philippine transportation system by setting forth policies that will serve
as boundary conditions to guide all entities involved in the transportation sector in the exercise of their
functions.

Enactment of the This policy will provide the parameters for planning at the agency level, e.g., the formulation of the
National Transport Policy Philippine Transport System Master Plan.

The NTP was adopted by the NEDA Board on September 12, 2017 and its IRR was approved by the
INFRACOM on December 14, 2018.

The proposed law is for filing/endorsement to the 18th Congress.

Chapter 19 Accelerating Infrastructure Development | 335

 LEGISLATIVE AGENDA RATIONALE

This will address the weak and fragmented institutional setup of concerned transport agencies by
Enactment of a law creating creating respective independent regulatory bodies for the railway sector and maritime transport sector
independent regulatory bodies that is consistent with the NTP. The existing dual roles of some agencies acting as both operator and
for the railway and maritime regulator of transport facilities will be effectively eliminated.
transport sectors
The bill is for the adoption of the NEDA Board and subsequent filing /endorsement to the 18th Congress.

This seeks to place all transport safety and security matters under a single independent body that will,
among others, investigate transport accidents and provide transport safety recommendations, thereby
Enactment of a law creating an
eliminating conflicting and overlapping functions of existing agencies or entities.
independent body for transport
safety and security
Various Senate Bills (SBs) and House Bills (HBs) pertaining to the creation and establishment of a National
Transportation Safety Board were filed in the 18th Congress.

This aims to shift the role of bicycles and other forms of non-motorized and active transportation,
from being an “alternative mode” towards an institutionalized mode of transport that is integrated
Enactment of a law institutionalizing in the transportation network of the country. This will be done by providing the necessary
the use of bicycles and other infrastructure and support services, establishing safety and design standards, and increasing
active and sustainable modes public awareness on road safety and road sharing among motorists, cyclists, and pedestrians.
of transportation
Various SBs and HBs on the proposed measure were filed in the 18th Congress (SBs 66,
285, 319, 332, 948, and 1518, and HBs 1251, 1893, 2520, 4493, 5374, and 5435).

Water Resources

The apex body will act as the lead agency to oversee/coordinate overall policy and project/program
implementation to address the weak and fragmented institutional set-up of the water resources
subsector.

Enactment of a law creating an Meanwhile an independent economic regulator for the water supply and sanitation is envisioned to
apex body for the water resources harmonize the regulatory practices, processes, fees, and standards on water supply and sanitation
subsector; and independent economic while addressing the overlapping functions or jurisdictions of existing regulatory entities.
or financial regulator for WSS
A substitute HB creating the Department of Water Resources (DWR) and the Water
Regulatory Commission (WRC) was jointly approved by the HOR Committee on Government
Reorganization and Committee on Public Works and Highways on November 12, 2019. Said
HB was likewise approved by the House Committee on Appropriations on November 18, 2020.

Energy

The proposed amendments to the EPIRA aim to improve the implementation of the law’s provisions
and enhance its effectiveness to address high cost of electricity, alleged market collusion, and
Amendments to the Electric
insufficient power supply.
Power Industry Reform Act
(RA 9136)
The following relative draft bills were filed in 18th Congress: HB 466, HB 469, HB 2339, HB 2784,
HB 3802, HB 7059 and HB 7341.

336 | Updated Philippine Development Plan 2017-2022

 LEGISLATIVE AGENDA RATIONALE

This will provide an enabling legal and regulatory framework for the natural gas industry to guide
Enactment of an enabling law investments in the sector.
for the natural gas industry
The bill has been filed in the 18th Congress as HB 3031.

ICT

This measure aims to lower the barriers to entry and allow participation of more diverse set of
providers to compete in the various segments of the data transmission industry.

Enactment of the Open access is envisioned to pave the way for promoting physical infrastructure sharing among
Open Access in service providers and access network segments based on fair, reasonable, and nondiscriminatory
Data Transmission terms.

The bills have already been filed in the 18th Congress as HBs 57, 4109, and 5341 and are currently
pending with the Committee on ICT.

Social Infrastructure

The proposed amendments aim to address the weak administrative, organizational, and
institutional dynamics of LGUs in implementing SWM programs or projects.
Amendments to the
Ecological Solid Waste Filed in the 18th Congress as HB 1598 and currently pending with the Committee on Ecology, the
Management Act (RA 9003) proposed amendments include, among others, the mandatory creation of a local environment
and natural resources offices and identification of dedicated focal SWM units with corresponding
organization structure, powers, and functions.

Chapter 19 Accelerating Infrastructure Development | 337

20
Ensuring
Ecological Integrity,
Clean and Healthy
Environment
CHAPTER 20

Ensuring Ecological Integrity,

Clean and Healthy Environment
The COVID-19 pandemic and the mobility restrictions that were imposed have redirected our
attention to the most basic needs of air, water, and food and how these relate to human health.
In fact, encroachment into natural habitats caused the transmission of zoonotic diseases
such as COVID-19 from animals to humans, posing greater societal risk. The shift towards
sustainable development then becomes an urgent matter of survival.

Building on the reforms and accomplishments in the past three years of Plan implementation,
the government will continue to improve the state of the environment and natural resources
(ENR) and increase resilience of resource-dependent and vulnerable communities against the
converging risks arising from natural and biological hazards under a changing climate. The
sector’s goals and targets will be realized by addressing long-standing issues on governance
and monitoring and evaluation.

Assessment and Challenges

Assessment: For the first three years of Plan However, current experience on the COVID-19
implementation, stakeholders have increasingly pandemic and the consequent imposition of
been participating in transformative actions toward community quarantine resulted in both negative and
bringing back the benefits that Filipinos enjoy from positive impacts on the ENR sector, which clearly
environment and natural resources while improving manifested the interrelationship of environment
resilience to climate and disaster risks. The following and public health. On one hand, the restrictions
actions and reforms in the sector were put in place: on the movement of people during the quarantine
(a) demonstration effect of rehabilitation efforts and pandemic response measures and protocols
(e.g., Boracay and Manila Bay rehabilitation); (b) have (a) caused limited patrolling, policing,
institutionalization of sector reforms through and ground validation activities for wildlife and
policy issuances and implementation (e.g., National habitat protection, (b) generated more waste from
Integrated Protected Areas System [NIPAS] Act, healthcare facilities and households, (c) increased
as amended by RA 11038 [ENIPAS]), Guidelines pressure on resource extraction as raw materials for
on Protected Area Suitability Assessment (PASA); additional quarantine facilities, and (d) increased
(c) formulation of the Philippine Action Plan vulnerability of resource-dependent communities
for Sustainable Consumption and Production to the economic and social impacts of the pandemic
(PAP4SCP); and (d) development of local climate and natural hazards, especially with the onset of
change adaptation and mitigation / disaster risk rainy season, which may be exacerbated by climate
reduction and management (CCAM/DRRM) variability. On the other hand, the quarantine
plans and establishment of early warning systems. resulted in improvement in urban air quality and

340 | Updated Philippine Development Plan 2017-2022

allowed many ecotourism sites to start to recover many LGUs, and outdated land records and
their pristine state, thus encouraging behavior problems in land data capture pose challenges
towards preservation and ecological restoration. in: (i) achieving targets on issuance of residential
free patents; (ii) facilitating forestry-related
Challenges: In view of the new normal state arising investments; and (iii) supporting preferential
from the COVID-19 pandemic, managing pollution access of municipal fishers to coastal and
and sustainable use of natural resources vis-a-vis marine waters, among others. These zoning and
addressing the threat of future pandemics amid delineation issues stem primarily from the lack
climate change become even more challenging. In of national land and sea use, and permanent
particular, poor waste management and pollution forest limit policies.
control exacerbate decline in environmental
quality. Inadequate waste management facilities can (b) Weak and fragmented monitoring and
increase the volume of untreated healthcare wastes evaluation (M&E) system in the sector prevents
which pose a greater threat to public health. Also, timely and appropriate interventions. This
with the digitalization of most economic activities, stems from the lack of an integrated M&E
harmful substances from unmanaged electronic framework and inadequate capacity for the
wastes will contaminate land, air, and water – use of appropriate methodology, particularly
aggravating pollution and health risks. A lack of air for the collection and robust analysis of up-to-
and water pollution control measures can worsen the date ENR data. In fact, concerns on insufficient
situation and even negate the environmental gains data capture from environmental monitoring
generated during the quarantine period. Further, stations and limited habitat inventory make it
ineffectual ENR governance and institutional difficult to evaluate the effectiveness of ENR
arrangements undermine the effectiveness of management interventions. Moreover, the
protection, conservation, rehabilitation, and methodologies being used to generate, monitor,
resilience measures. The national and sub-national and report data/information, are still inadequate,
governments have had limited capacity to manage such as on (i) waste management (e.g. solid
multi-dimensional risks arising from natural and waste diversion rate, wastewater production
biological hazards, including climate change. This vs. treatment capacity), (ii) livelihood and
affects our response to mitigate the impacts and other economic opportunities provided by
implement recovery measures. The low adoption ecosystems (e.g. ecotourism and biodiversity-
of innovative technologies for enforcement and friendly enterprises), and (iii) resilience to the
monitoring of wildlife and habitats also limits efforts impacts of climate change and disasters (e.g. risk
to keep biodiversity intact and minimize zoonotic resilience index). Furthermore, existing review
disease risks. Compounding these are the following tools do not yet capture whether or not local
long-standing challenges in the sector that need to plans (i.e., Comprehensive Development Plans,
be addressed: Comprehensive Land Use Plan, Local Climate
Change Action Plans, and Local Disaster Risk
(a) Issues on zoning, boundary delineation, Reduction and Management Plan) are risk-
and overlapping claims constrain efforts on the informed and/or responsive to the vulnerability
rehabilitation of natural resources. The absence of a given locality.
of zoning, unresolved boundary conflicts in

Chapter 20 Ensuring Ecological Integrity, Clean and Healthy Environment | 341

Assessment and Challenges
Table 20.1 presents the medium-term targets corresponding to each of the major outcomes, namely: (1)
biodiversity and ecosystem services sustained, (2) environmental quality improved and, (3) resilience of
resource-dependent and vulnerable communities increased.

Table 20.1 Updated Plan Targets to Ensure Ecological Integrity, Clean and Healthy Environment

BASELINE TARGETS
INDICATOR
(YEAR) 2020 2021 2022 EOP

Chapter Outcome: Ecological integrity and socioeconomic resilience of resource-dependent communities improved

Subsector Outcome: Biodiversity and ecosystem services sustained

Forest cover increased (in million ha) 7.01 (2015) Increasing

Quality of coastal and marine habitats under NIPAS marine protected areas and other priority coastal and marine conservation areas improved

Percentage of hard coral cover (HCC) in MPAs (in number of MPAs):

No baseline data 2 (2018) 0 0 0 0

Poor (0-22%) 12 (2018) 14 9 6 6

Fair (>22%- 33%) 11 (2018) 11 10 12 12

Good (>33%-44%) 4 (2018) 4 10 10 10

Excellent (>44%) 7 (2018) 7 7 8 8

Percentage of seagrass cover in MPAs (in number of MPAs)

No baseline data 11 (2018) 0 0 0 0

Poor (0-25%) 11 (2018) 22 17 15 15

Fair (26-50%) 10 (2018) 10 12 11 11

Good (51-75%) 3 (2018) 3 5 7 7

Excellent (76-100%) 1 (2018) 1 2 3 3

Number of free patents issued 57,822 (2016) 62,000 67,000 72,000 360,000

Subsector Outcome: Environmental quality improved

Percentage of priority water bodies within water quality guidelines increased (e.g. BOD, DO, pH, temperature, P, TSS, fecal coliform)

Public Water Supply (%) 0 (2016) Increasing

Food Production (%) 20 (2016) Increasing

342 | Updated Philippine Development Plan 2017-2022

 BASELINE TARGETS
INDICATOR
(YEAR) 2020 2021 2022 EOP

Recreational (%) 87 (2016) Increasing

Percentage of highly urbanized and other major urban

centers within ambient air quality guideline value (i.e., 55 (2016) Increasing
PM10 and PM2.5) increased (%)

Metro Manila: 48;

Solid waste diversion rate increased (% ) Outside MM: 46 70 75 80 80
(2015)

Percentage of healthcare waste managed (%) 66 (2016) 100 100 100 100

Area assessed and mapped for soil fertility status and 1,000,000
450,000 450,000 450,000 2,700,000
soil fertility management increased (ha) (2016)

Area of land degradation hotspots decreased 2,300,000

2,100,000 2,050,000 2,000,000 2,000,000
(ha, cumulative) (2016)

Subsector Outcome: Resilience of communities and their livelihood increased

CLUP: 34
CDP: 0 Increasing
(2016)
Percentage of LGUs with climate change and disaster
risk-informed plans increased (%)
LDRRMP: 0 (2016) 100 100 100 100

LCCAP: 0 (2016) 74 75 100 100

Number of LGUs with operating early warning systems 1,180

Increasing
(EWS) in place increased (2016)

Permanent: 775
Increasing
(2016)
Number of fully-functional DRRM operations centers
increased
Temporary: 810
Increasing
(2016)

Employment from biodiversity-friendly enterprises and other sustainable resource-based industries increased (cumulative)

1,484
From NIPAS-PAs and ecotourism sites Increasing
(2016)

From reforestation and non-timber/agroforestry 114,584

Increasing
enterprises (i.e. NGP, CBFM) (2016)

Chapter 20 Ensuring Ecological Integrity, Clean and Healthy Environment | 343

Strategic Framework
For a healthy and resilient Philippines, the Innovative waste and pollution abatement measures
government will intensify the protection, will also be implemented to address the increasing
conservation, and rehabilitation of natural waste and other pollutants generated from
resources and accelerate the adoption of innovative COVID-19 response measures, among others. The
technologies for enforcement and monitoring resilience of resource-dependent communities and
of wildlife and habitat. Law enforcement will be their livelihood will be enhanced by strengthening
further strengthened to enhance compliance with capacities to undertake CCAM-DRRM actions and
environmental standards and safeguards and expanding sustainable economic opportunities
consequently improve environmental quality. from natural capital.

Figure 20.1. Strategic Framework to Ensure Ecological Integrity, Clean and Healthy Environment

344 | Updated Philippine Development Plan 2017-2022

Strategies
To achieve the Plan’s targets, sector-specific and science-based restoration approaches, such as forest
cross-cutting strategies will be implemented. landscape restoration, will be used to rehabilitate
the remaining unproductive, denuded, and
degraded forest areas, including critical watersheds.
Sustaining biodiversity and Local government units (LGUs), private sector,
ecosystem services and communities will, once more, be engaged
for community-based forest and watershed
To sustain biodiversity and the provision of management to ensure that the remaining natural
ecosystem services, demonstration effects from forests and reforested areas remain intact and
natural resources protection, conservation, and protected. These strategies are geared towards
rehabilitation efforts will be replicated and scaled ensuring uninterrupted supply of water to meet the
up by building on the increased multi-stakeholder country’s demand for domestic, agricultural, health
involvement and existing opportunities for inter- and sanitation, and industrial uses, and other forest
agency convergence. Capacities and competencies ecosystem services.
for data generation, assessment, and tracking of the
state of natural resources, including its ecosystem Enhance water conservation and efficiency measures
services, will be enhanced. Complementing these to avert water shortage. Nature-based solutions,
are the necessary investments for research and aside from or more than hard infrastructure,
development as well as innovative monitoring will be pursued to enhance water use efficiency
technologies that will support habitat and wildlife and conservation. Support will be given for the
protection and help safeguard the country from establishment of riparian buffer strips, restoration
zoonotic diseases arising from unsustainable and of natural floodplains, and aquifer recharge.
illegal wildlife consumption and trade.
Continue and scale up the conduct of comprehensive
Intensify protection, conservation and water resource assessment in groundwater critical
rehabilitation of natural resources. areas and major river basins for sustainable water
supply. This will support evidence-based planning
Ecosystem-based actions and area-based and guide sustainable allocation of water resources,
management will continue to be prioritized to protect assessment, and simulation of current and potential
terrestrial and coastal and marine ecosystems while future scenarios for surface and groundwater
supporting the natural and assisted rehabilitation resources.
of degraded habitats. Conservation and sustainable  
use of natural resources will also be strengthened to Delineate production and protection forests. The
ensure continuous provision of essential ecosystem areas within forestland that will be made available
goods and services to optimize their contribution to for development and private sector investment
the economy, food security, and overall well-being (production zones) and those reserved for
of people. protection and conservation activities (protection
zones) will be identified. This way, appropriate
Terrestrial Ecosystems management arrangements in the forestlands can
be established and protection and rehabilitation
Forest and critical watersheds including inland efforts for protected areas and ancestral lands can
wetlands and caves be harmonized.

Prioritize interventions and investments to accelerate Optimize the implementation of the NIPAS
and improve forest protection and reforestation Act, as amended, to improve the management
activities in critical watersheds. Integrated and of terrestrial protected areas. Specifically, the

Chapter 20 Ensuring Ecological Integrity, Clean and Healthy Environment | 345

Department of Environment and Natural Resources will hasten land survey and titling activities and
(DENR) will (a) conduct regular monitoring of address concerns on idle private lands for optimal
protected area management to gauge effectiveness, use, such as for agriculture and forestry purposes,
and (b) implement a biodiversity assessment and among others (see Chapter 8). LGUs will also be
management system starting with determining encouraged to adopt their zoning ordinances based
baseline conditions of habitats and species (e.g., on best-use assessment of land assets and enable
species richness and abundance). implementation of their Comprehensive Land Use
Plans (CLUPs).
Improve the management and sustainable use of
inland wetlands and their resources. The DENR Pursue the mapping of Indigenous Cultural
will (a) conduct biophysical and sociocultural Communities/Indigenous Peoples (ICCs/IPs)
assessments of inland wetlands to determine those to facilitate the recognition of ancestral lands/
for conservation and rehabilitation; (b) strengthen domains. The country’s various ICCs/IPs will
enforcement of legal easement, hazard zones, be identified and mapped with the issuance of
and other environmental regulations to ensure Certificate of Ancestral Domain Title (CADT) and
sustainable use of inland wetlands in coordination Certificate of Ancestral Land Title (CALT), and
with LGUs; and (c) continue to utilize market-based provided with assistance in the preparation of their
instruments to promote conservation and proper Ancestral Domain Sustainable Development and
management of inland wetlands. Protection Plan (ADSDPP). This will help address
overlaps, particularly in forestlands, protected
Scale up sustainable management of caves and cave areas, and ancestral domains/lands.
systems. The DENR cave survey, assessment, and
classification activities will be scaled up to identify Rationalize and enhance the free, prior, and
caves with high conservation value for protection. informed consent (FPIC) process for the protection
Policies to develop caves as ecotourism attractions of indigenous peoples’ rights and interests in their
and monitor/manage visitor impact, while ensuring ancestral domains. The National Commission on
compliance with safety and sanitation standards, Indigenous Peoples will rationalize the process for
will be formulated and implemented by the DENR, issuance of FPIC clearances to (a) promote genuine
Department of Tourism, and LGUs. protection of the rights of indigenous peoples and
indigenous cultural communities and (b) ensure
Conduct research on terrestrial ecological connectivity their active engagement in the governance of
to support biodiversity corridors. Research studies natural resources within their ancestral domain
that examine the ecological needs and natural based on their own plans and priorities.
behavior of wildlife species will be pursued to  
inform development of biodiversity corridors. The Improve compliance with environmental and social
corridors intend to link terrestrial protected areas safeguards for mineral resources development. The
to ensure uninterrupted areas of forest and other DENR will:
habitats, which support the entire life cycle of birds
and other important wildlife species. • Strengthen regulatory enforcement, monitoring
and evaluation (M&E), and reporting
Land and Mineral Resources mechanisms through the:

Complete Rapid Land Tenure Appraisal (RLTA) ■ conduct of objective, science-based, and
to identify patentable lands and facilitate issuance fact-finding reviews of large- and small-
of free patents (i.e., residential and agricultural). scale mining operations, including mineral
Partnership and coordination among land- processing plants;
related agencies and LGUs will be intensified and ■ enhancement of the participation of the
land titling processes will be streamlined. These mining industry in the Extractive Industries

346 | Updated Philippine Development Plan 2017-2022

 Transparency Initiative to ensure greater Coastal and Marine Ecosystems
transparency and accountability in the
management of natural resources; and Complete stocktaking of coastal and marine
habitats and species diversity. The extent and
■ development and adoption of a more condition of the country’s coastal and marine
stringent monitoring instrument (e.g., habitats such as coral reefs, mangroves, and seagrass
scorecard) for assessing compliance of beds, will be determined to support a more effective
mines under exploration, production, and planning and programming for the sector. The
care and maintenance. species and genus diversity of these habitats will
• Ensure that plans and programs for large-scale be assessed with the implementation of the Coastal
mining operations (e.g., Safety and Health and Marine Ecosystems Management Program
Program, Final Mine Rehabilitation and/or (CMEMP) and the NIPAS Act, as amended, among
Decommissioning Plan, Social Development others.
and Management Program and Environmental
Protection and Enhancement Program) Optimize the increased coverage of marine
and small-scale mining operations (e.g., protected areas (MPAs) as a habitat of biologically
Community Development and Management and economically important species through MPA
Plan and Potential Environmental Impact networking. In view of the declining performance
Management Plan) are aligned with the local of the fisheries sector (see Chapter 8), it is
land use and development plans; important to ensure that appropriate management
measures are established in the country’s MPAs,
• Continue research and development to based on ecological connectivity and biophysical
determine the appropriate strategies that assessments. To scale up MPA networking, more
will address the mercury contamination of ecological connectivity studies will be undertaken
Palawan Quicksilver Mine, Inc. as part of to effectively protect and conserve the entire life
the rehabilitation (i.e., bio-remediation), and cycle of fish and other marine species.
facilitate the smooth turnover of management
(i.e., protection and maintenance) to the LGU Pilot-test existing innovative technologies for
at the end of the project; rehabilitation of coastal habitats. Innovative
technologies will be pilot-tested to fast-track
• Strengthen the Minahang Bayan scheme to rehabilitation of degraded coastal and marine
avoid proliferation of illegal small-scale mining habitats (e.g., massive coral larval reseeding), and
activities and ensure that operations are support replication and scaling-up.
undertaken only under legitimate contracts/
permits and within legitimate/designated areas Complete delineation of municipal waters.
by: Continuous support and technical assistance from
■ Revisiting the implementation of the the National Mapping and Resource Information
People's Small-scale Mining Act of 1991 Authority (NAMRIA) will be provided to LGUs to
(RA 7076) particularly the definition and fast-track municipal water delineation, while the
coverage of small-scale mining; guidelines for delineation of municipal waters with
offshore islands will be finalized by the Bureau of
■ Easing the application requirement of Fisheries and Aquatic Resources of the Department
Minahang Bayan scheme; and of Agriculture (DA-BFAR). Spatial planning within
the delineated municipal waters will also be pursued
■ Increasing the penalty provisions to to determine the protection and multiple use zones.
approximate the value of environmental
and health damages and intensify the anti-
illegal mining efforts.

Chapter 20 Ensuring Ecological Integrity, Clean and Healthy Environment | 347

Enhance multi-stakeholder coordination and capacity cohesive participation of civil society organizations,
on coastal and marine resources management aligned given their vital role in raising public awareness on
with the country’s international commitments the benefits of keeping biodiversity intact.
and related sector initiatives (e.g., Coral Triangle Scale up adoption of innovative technologies
Initiative on Coral Reefs, Fisheries, and Food for enforcement and monitoring of wildlife and
Security). Program convergence budgeting and habitat integrity.
cooperation among DA, DENR, and Department of
the Interior and Local Government (DILG), as well Strengthen law enforcement and intensify the
as between and among LGUs, will be pursued to use of technological innovations for improved
ensure complementary actions within national and surveillance activities to combat illegal wildlife
locally-managed marine protected areas, fisheries trade, and deter illegal, unreported, unregulated
management areas, and fish sanctuaries within fishing (IUUF). The use of innovative technologies
municipal waters, and support ecosystem approach (e.g., unmanned aerial vehicles, Visible Infrared
to fisheries management (EAFM) (see Chapter 8). Imaging Radiometer Suite, satellite-based Vessel
Inventory and monitoring of locally-managed Monitoring System) will be intensified to help in
MPAs and other local coastal resource management patrolling and policing to protect wildlife, prevent
(CRM) interventions will be conducted through the habitat encroachment and emergence and spread
Fisheries Compliance Audit of the DILG. of zoonotic infectious diseases, and combat IUUF
This will be complemented with stricter inspection
Biodiversity and Genetic Resources protocols at checkpoints, airports, and seaports, to
combat illegal wildlife trade.
To sustainably harness the economic potential of
terrestrial, coastal, and marine biodiversity, and Modernize habitat monitoring and impact
genetic resources, especially their medicinal and evaluation of management interventions.
pharmaceutical properties for various zoonotic Available technologies and digital platforms (e.g.,
diseases, the following strategies will be pursued: satellite image-sharing platforms, remote sensing,
geospatial mapping) will be utilized for regular and
Develop a system for access and benefit sharing (ABS) real-time monitoring of terrestrial and coastal and
of wealth from genetic resources. The national policy marine habitats. This will facilitate modernized data
framework on ABS will be finalized and adopted to generation and analysis for more efficient evaluation
enhance regulatory measures and facilitate sharing of of impacts and assessment of effectiveness of various
economic benefits from the use of genetic resources management interventions implemented.
and traditional knowledge. Permitting protocols on
marine scientific research will also be strengthened.
Improving environmental
Develop a bioprospecting and biotechnology quality
program to facilitate discovery and development
of novel compounds and derivatives for The government, private sector, businesses, and
pharmaceutical purposes. Priority will be given to individuals will be enjoined to take collective and
studies on zoonosis in selected wildlife reservoirs concrete actions to achieve a clean and healthy
and natural resources with potential antibacterial/ environment. Strategies will focus on eliminating
antiviral properties and treatments that can be used the long-term impact of pollution on biodiversity,
for pharmaceutical applications. the ecosystem, and public health.
Establish a clear mechanism for encouraging private Strengthen enforcement, regulation, and
sector investment and civil society participation in monitoring of environmental compliance and
biodiversity conservation and sustainable use. The management interventions.
DENR will formulate clear guidance and systems for
facilitating private sector investment and promoting

348 | Updated Philippine Development Plan 2017-2022

The enforcement, regulation, and monitoring Industrial Emission Management Program
of compliance with existing environmental laws (IEMP).
and regulations will be intensified to implement
the necessary operational mechanisms to address • For area sources, the DENR will provide support
the impact of the COVID-19 pandemic, rapid to the LGUs to strengthen the implementation
urbanization, and climate change on environmental of environmental local ordinances (e.g., ban
quality. on smoking in public places and open burning
[“siga”]) especially within designated airsheds.
Air Quality Management
Modernize air quality monitoring systems of the
The air quality compliance monitoring activities of DENR-EMB
the DENR will be complemented by more aggressive
implementation of the vehicle emission-testing • Develop a more stringent air quality index for
program and no-contact apprehension policy of PM2.5, standard for regulating and monitoring
the Department of Transportation (DOTr) and black carbon (i.e., PM1), and ambient air quality
Land Transportation Office. The DENR will also standards/guideline values for Hazardous
designate attainment and non-attainment areas in Ambient Air Pollutants.
existing airsheds and implement necessary action
plans to comply with the National Ambient Air • Repair, upgrade, and increase the number of air
Quality Guidelines Values. quality monitoring stations and install backup
systems to ensure adequate data capture,
Upgrade air pollution control and emission including regular preventive maintenance to
regulatory systems lessen equipment breakdown.

• For mobile sources, prior to issuance of • Develop and utilize digital, modelling, and
Certificate of Conformity (COC) by the remote sensing technologies for air pollution
DENR, the actual inspection of new imported monitoring in partnership with the DOST.
motor vehicles will be strengthened to ensure • Develop and/or utilize locally-available
compliance with the EURO IV Emission technologies for ambient and indoor air
Limits requirement. The DENR, DOTr, pollution control.
and Department of Trade and Industry will
expedite the issuance of procedural guidelines
on the National Motor Vehicle Inspection and Water Quality Management
Maintenance Program (NMVIMP) for public
and private vehicles, and implement the public Strengthen the regulation of point sources (e.g.,
utility vehicle (PUV) modernization program. discharges from industries and treatment plants)
The Civil Aviation Authority of the Philippines, and nonpoint sources (e.g., agricultural farms and
in cooperation with the International Civil residential areas) of pollution by:
Aviation Organization, will implement the
Carbon Offsetting and Reduction Scheme for • Expediting the nationwide inventory and
International Aviation (CORSIA). classification of waterbodies, and establishment
of water management systems in priority
• For stationary sources, the DENR will review waterbodies;
the Emission Standards for Stationary Sources
in attaining cleaner air quality in industrial • Refining and expanding the Environmental
and commercial areas. Streamlining the stack User Fee System (EUFS) to cover all pollution
emission testing, installation of Continuous sources (i.e., domestic, industrial, commercial,
Emission Monitoring, System (CEMS), and agricultural), and to properly reflect the
permitting, and inspection of industries will value of environmental damages;
be reinforced through the implementation of

Chapter 20 Ensuring Ecological Integrity, Clean and Healthy Environment | 349

 • Designating the non-attainment areas1 for packaging materials in households, health care
waterbodies where pollutants exceed the water facilities, and other establishments, the LGUs
quality guidelines to prevent new sources of will need to prioritize the (a) approval and/or
effluent concentration and discharge from implementation of their approved 10-year solid
adversely affecting water quality; waste management plans; (b) closure of dumpsites;
and (c) clustering of waste management facilities
• Designating and operationalizing the required through inter-LGUs partnership.
number of Water Quality Management Areas
(WQMAs), including updating of its Action Fast-track the implementation of waste
Plans; and management measures for solid, toxic, and
• Strengthening marine pollution regulations and hazardous wastes, including electronic waste,
expanding shore reception facilities in seaports especially at the local level through:
for the collection and disposal services of wastes
generated from ships through collaboration • Engagement among solid waste management
among concerned agencies (e.g., DOTr, PCG, (SWM) regulators, users, service providers,
MARINA, PPA, and CPA). and intermediaries to ensure that cities,
municipalities, and barangays have fully-
Accelerate the establishment of domestic functional materials recovery facilities (MRFs)
wastewater treatment facilities and its conveyance by conducting regular onsite maintenance and
system. The DPWH, DENR, and DOH will continue operational trainings;
to enhance the institutional and technical capacities
of LGUs, water districts, and concerned entities to • Capacity development of LGUs to implement
implement sewerage and septage projects under the a proper monitoring and reporting scheme
NSSMP, and mobilize other financial support on on solid waste management, development of
wastewater treatment. methodology for estimation of waste diversion,
and strengthening the monitoring and
Modernize water quality monitoring systems by: evaluation of effectiveness of SWM programs
by the National Solid Waste Management
• Repairing, upgrading, and increasing the Commission (NSWMC);
number of fully-operational ambient water • Implementation of community-based
quality monitoring stations; and composting of food wastes and other
• Enhancing capacity for laboratory analysis and biodegradable materials and linking households
exploring the use of advanced remote sensing to composting market/industry for commercial
and UAV technologies in monitoring water viability;
quality. • Formulation of a policy on the management and
monitoring of e-wastes and institutionalization
Land Quality Management of extended producer responsibility (EPR);

• Streamlining the management of health

To manage the potential increase in volume of care and infectious wastes, especially at the
infectious waste materials (e.g., disposable masks community and household levels by:
and PPEs) and solid wastes from single-use

  Pursuant to the Philippine Clean Air Act of 1999, the DENR in coordination with the LGUs, shall designate these non-attainment areas of
1

waterbodies where pollutants have exceeded water quality guidelines to prevent new effluent concentration and discharges.

350 | Updated Philippine Development Plan 2017-2022

 ■ Ensuring compliance of healthcare and utilization of eco-friendly vehicles, as well as
facilities2 and 
treatment technologies3  the use of non-motorized transport through the
with the standards for hazardous waste establishment of bicycle lanes and replication of
management and handling new pathogens local bike-sharing systems (see Chapter 19).
or viruses;
Encourage development of walkable cities and
■ Modernizing and increasing the number major urban areas to improve built-up systems
of Treatment Storage and Disposal of urban environment, and expand green and
(TSD) facilities for handling infectious open urban spaces and green infrastructure to
healthcare wastes. Support will be given improve health and well-being of people and the
to mobilize public-private investments environment (e.g., reduce carbon emissions).
in the construction and accreditation of
additional TSD facilities; Support wastewater reclamation/recycling and reuse
■ Improving disposal of healthcare wastes at for next intended use (e.g., indoor use and irrigation
the household or barangay level, especially purposes); and promote other cleaner production
in areas with limited access and capacity to techniques to control the discharge of pollutants
transport to TSD facilities; (e.g., use of organic fertilizers and biopesticides).

■ Establishing partnerships between and Strengthen public-private partnerships to create

among LGUs and TSD-accredited facilities opportunities for low-cost pollution-control and
to ensure that untreated healthcare wastes treatment technologies. Capacity development
do not reach MRFs and SLFs. of the private sector and promotion of available
incentive mechanisms to adopt cleaner technologies
Promote sustainable land management (SLM) to in its operations (e.g., factories and power plants)
arrest land degradation. will be encouraged.

• Integrate SLM practices into national and local Establish synergies with research and development
development plans; institutions to undertake studies on technological
• Improve local capacities and skills for planning solutions and water pollution abatement measures.
and management of land resources, and
strengthen awareness and advocacy campaigns;
Increasing resilience of
• Scale up and promote SLM in production communities and their
landscapes and within multiple-use zones,
among others. livelihood
Strengthen national and local capacities for
Adopt and implement innovative pollution climate and disaster risk reduction and
abatement solutions. management.

Support reforms on mass transport system, including In partnership with research institutions and
the expansion of ride-sharing services to reduce development organizations, the government
proliferation of vehicles, and promote the production will prioritize the development and adoption of

2
  Based on the DOH Health Care Waste Management Manual and DENR Revised Procedures and Standards for the Management of Hazardous
Wastes.
3
  New and existing technologies need to undergo Environmental Technology Verification of the DOST-Industrial Technology Development
Institute and comply with the applicable environmental standards and the DOH-required level of microbial destruction or inactivation to
eliminate bacteria/virus.

Chapter 20 Ensuring Ecological Integrity, Clean and Healthy Environment | 351

appropriate baseline information and indicators to NDRRMC will prioritize and enhance climate budget
measure resilience of ecosystems and communities tagging to cover actual expenditures and establish a
(i.e., resilience index), and set up a systematic similar budget-tagging arrangement for DRRM.
database to regularly monitor sectoral emissions
reduction. To ensure the implementation and Enhance the capacity of the government to address
effectiveness of CCAM and DRRM initiatives the multidimensional risks arising from natural
vis-à-vis Sustainable Development Goals, Sendai hazard events, including biological hazards by:
Framework for Disaster Risk Reduction, and Paris
Agreement commitments, the following strategies • Updating the local disaster risk reduction
will be implemented: and management (DRRM) and local climate
change action (LCCAP) plans to include public
Enhance accessibility of climate and geospatial health emergencies, and climate and disaster
information and services by: risk parameters to ensure better preparedness
and response to pandemics while mitigating
• Developing a data protocol to facilitate access impacts of climate-related disasters;
and sharing of available scientific researches
and studies, geospatial information, climate • Sustaining support to promote business and
trends and projections, risk estimation models, public service continuity planning and ensuring
gender-related variables, and disaggregated loss the development of climate and disaster-
and damage datasets on vulnerable and affected resilient structures and designs following
groups. Technical support will be provided to established measures and standards;
LGUs on integrating these information in the • Providing technical assistance to NGAs, LGUs,
local planning databases; and private sector, and community organizations
• Establishing integrated knowledge management to: (a) maximize access to CCAM and DRRM
systems to serve as platforms for sharing, financing and risk transfer mechanisms; and
managing, and reporting CC/DRR-related (b) implement ecosystem-based adaptation
information. (EbA) measures that are risk-informed, gender-
responsive, and sensitive to the needs, benefits,
Integrate CCAM-DRR considerations in public and priorities of men and women, while taking
investment programming processes. NEDA and into account indigenous knowledge systems; and
other concerned implementing agencies will
ensure that climate and disaster risk parameters are • Undertaking gender analysis to identify gender
mainstreamed in the design and ex-ante evaluation issues related to capacity of both men and
of programs and projects toward ensuring their women, especially in vulnerable communities,
long-term sustainability. to engage in decision-making processes, project
development, implementation, and monitoring
Fast-track and prioritize the development of of CCAM and DRRM actions.
guidelines and standard quality assurance review
tools and streamline local planning and review Expand sustainable livelihood and economic
mechanisms (DILG for Comprehensive Development opportunities for resource-dependent and
Plans; DHSUD for Comprehensive Land Use Plans; vulnerable communities.
Office of Civil Defense-NDRRMC for Local DRRM
Plans; and Climate Change Commission for Local As upland and coastal communities remain among
Climate Change Action Plans). the poorest sectors of society, the development of
more sustainable livelihood and other economic
Strengthen existing mechanisms to harmonize the opportunities will be pursued in cooperation with
monitoring of CCAM and DRRM expenditures relevant agencies (e.g., DTI, DSWD) to increase
at the national and local levels. The Department their socioeconomic resilience.
of Budget and Management, CCC, and OCD-

352 | Updated Philippine Development Plan 2017-2022

Intensify agroforestry development and communities following proper safety and sanitation
establishment of commercial forest plantations. protocols; (c) conduct risk assessment necessary for
Commercial forest plantations within integrated developing health and safety plans and guidelines;
forest management agreement (IFMA), community- and (d) finalize the methodology to account for
based forest management agreements (CBFMA), employment generated from ecotourism.
and applicable areas in ancestral domains will
be developed based on comparative advantage. Fast track adoption and implementation of (a) green
There will be investment support packages to jobs assessment and certification criteria/guidelines,
encourage diversification especially towards fast- (b) green jobs human resource development plan,
growing native species that yield high-value timber. and (c) tools to monitor and account green jobs.
Community and family-based agroforestry farms,
and related biodiversity-friendly enterprises will be
established. Through these, traditional crop varieties Cross-cutting strategies
will be cultivated and products using indigenous
materials will be developed, such as eco-friendly Review, codify, and streamline existing ENR
personal protective equipment (PPEs). To ensure policies, rules, and regulations to improve
sustainability and international competitiveness of compliance, address conflicting provisions, and
the country’s forest-based products, registry and promote transparency and accountability. A
forest certification systems will be institutionalized. comprehensive assessment and review of existing
  ENR laws and policies, including governance
Pursue sustainable and resilient fish- and marine- arrangements, will be undertaken. This is deemed
based industries for blue economy development. necessary to address the overlaps and conflict in
Sustainable fish- and marine-based industries4 existing policies toward improving compliance,
will be developed and promoted using innovative transparency, and accountability across all levels of
technologies and practices and with proper governance. An institutional review and assessment
sanitary and safety protocols. Climate-resilient of the agencies' existing mandates vis-a-vis the
post-harvest facilities will be provided to support human resources, as well as technical and financial
value-adding activities in coastal communities. capacity required, will be conducted. Findings
Existing community fish landing centers will be from this assessment will help identify concrete
operationalized by the BFAR to cater to the needs recommendations to improve environmental
of coastal communities for cold storage and other governance and better address challenges in the
related support services. The overall economic sector.
contribution of the blue economy will be accounted
through the ocean economy satellite accounts of the Upscale natural capital accounting (NCA)
Philippine Statistics Authority. including valuation of ecosystem services in
national and local planning and programming.
Develop and promote ecotourism and cultural sites Natural capital accounting provides important
within ecological limits, and sanitary and safety data and information on the stock and status of
standards. The following will be pursued: (a) replicate the country’s ecosystems and resources. The NCA
and scale up carrying capacity studies to support as a tool (a) allows for more systematic collection,
the implementation of ecotourism activities and monitoring, and reporting of data from both
development of new ecotourism sites; (b) develop the national and local governments, including
ecotourism facilities and environment-friendly academic and research institutions; (b) facilitates
infrastructure, including ecotourism-related informed decision-making of political leaders
products and services to support livelihood of and local communities on conservation areas; (c)

4
  These industries include (a) sustainable fisheries and aquaculture; (b) ocean energy, offshore, and gas exploration; (c) shipping/marine
transportation and ship building; (d) coastal tourism; and (e) marine biotechnology, among others.

Chapter 20 Ensuring Ecological Integrity, Clean and Healthy Environment | 353

assesses trade-offs and provides better alternatives; Accelerate implementation of sustainable
(d) enables income and employment generation in consumption and production. In the remaining
the rural areas and creates wealth for the nation; Plan period, the Philippine Action Plan for
and (e) provides incentives for the management of Sustainable Consumption and Production
ENR (e.g., payments for ecosystem services). (PAP4SCP) will be rolled out to guide the
government and stakeholders’ programmatic
Streamline green and climate finance in the actions in the short term (2020-2022), medium
financial sector through the formulation of a term (2022-2030), and long term (2030-2040).
sustainable finance framework and roadmap that The goal is to influence behavioral change at
will support and accelerate the development of the national, community, and individual levels,
a green and sustainable economy. This includes especially in consuming and producing more green
the issuance of guidelines on green/climate finance goods and services, and practicing more sustainable
flows, including green finance taxonomy, and and climate-smart lifestyles. The PAP4SCP5 calls
protocol/processes for implementation, regulation, for (a) the valuation of economic, social, and
transparency, and institutional arrangements. environmental costs and benefits of production
Building capacities of regulators and market and consumption processes by accounting the
participants in the financial sector on internalizing stock of natural resources and flow of ecosystem
environmental and climate and disaster risks in the services, and (b) a set of interventions, schemes,
current government and private systems will also be and innovative technologies, as well as enhanced
prioritized. environmental education, to ensure efficient use
and equitable allocation of natural resources.

Legislative Agenda

Table 20.2 Legislative Agenda to Ensure Ecological Integrity, Clean and Healthy Environment

LEGISLATIVE AGENDA RATIONALE

The bill aims to provide an institutional mechanism for integrating existing sector-specific land
National Land Use Bill use laws and institutionalize land use planning as basis for the rationalization, management,
and development of the country's land resources.

The proposed measure aims to provide and institutionalize a policy framework on access and
Philippine Genetic Resources Access and
benefit sharing from the utilization of genetic resources aligned with the country’s commitments
Benefit-Sharing (PGRABS) Bill
to the Nagoya Protocol.

This seeks to adopt ICM as a national strategy to ensure the sustainable development of the
Integrated Coastal Management (ICM) Bill
coastal and marine environment and establish supporting mechanisms for its implementation.

This aims to strengthen the protection of the country's wildlife resources by (a) increasing the
fees and penalties for violators and (b) defining and implementing sanitary and phytosanitary
Amendment of the Wildlife Act
measures to address possible entry of zoonotic infectious disease into the country (e.g.,
standards and protocols for crops, livestock, fisheries, and wildlife).

The proposed bill intends to delineate the specific limits of forestlands for the conservation,
Forest Limit Bill
protection, and development of the country’s forest resources.

5
  Actions are categorized into the following: (a) policy and regulation; (b) research and development, innovation, and technology; (c)
infrastructure; and (d) promotion and education.

354 | Updated Philippine Development Plan 2017-2022

LEGISLATIVE AGENDA RATIONALE

This seeks to institutionalize the (a) development of sustainable forest management strategy
based on the allocation of forestland uses (i.e., production and protection zones), (b)
Sustainable Forest Management Bill
enhancement of private sector participation, and (c) forest certification, monitoring, assessment,
and reporting system.

This bill intends to define the limits of the different maritime zones over which the country can
exercise sovereignty (i.e., territorial sea) and sovereign rights (i.e., exclusive economic zone).
Maritime Zones Bill
This will support the implementation of measures to sustainably manage fisheries and other
resources in these maritime zones.

This intends to define the limits of Archipelagic Sea Lanes. Foreign ships will have to confine
Philippine Archipelagic Sea Lanes Bill their navigation within the sea-lanes to ensure that vessels will not pass through MPAs and
marine habitats are protected from shipping-related activities.

Proper Management of Electronic Wastes The proposed bill intends to institutionalize mechanisms and guidelines/standards for proper
(E-Wastes) Bill collection, handling/storage, and disposal of electronic wastes.

This bill aims to provide a clear operational framework to address the fragmented institutional
functions and actions among concerned agencies on climate change and disasters by
Department of Disaster Resilience Bill establishing a Department that will serve as the primary agency responsible for leading the
coordination, implementation, monitoring, and reporting on climate change and disaster risk
reduction and management.

The proposed measure aims to ensure that possible environmental consequences of policies,
Philippine Environmental Assessment
plans, and programs are fully accounted for at the earliest stage of decision-making consistent
System to cover Strategic Environmental
with economic and social considerations. This will also strengthen the use of the Environmental
Assessment (SEA) Bill
Impact Statement System as a planning and monitoring tool.

The proposed legislation seeks to provide higher penalties and stringent measures for
Amendment of the Ecological Solid Waste environmental protection. It also intends to bridge the policy gap between municipal waste
Management Act, Clean Water Act, Clean Air management and health care waste management by streamlining protocols on the management
Act, and Toxic Substances, Hazardous and of hazardous wastes, particularly infectious wastes, at the community and household
Nuclear Wastes Control Act levels. These bills will also contain better enforcement against mixed waste collection and
biodegradables in landfills and incentives for home composting as well as LGU support for at-
source segregation and composting.

This bill aims to strengthen green public procurement by enhancing compliance of procuring
Green Public Procurement Bill entities in integrating green criteria in the procurement guidelines, including bidding documents
and technical specifications, and in setting clear LGU involvement based on market readiness.

This aims to enhance product stewardship among producers/manufacturers nationwide, who

will be made responsible for the disposal and treatment of post-consumer products and help
Extended Producer Responsibility (EPR) Bill
minimize pollution, especially from packaging materials of the food and beverage sector at
source.

The proposed bill intends to provide safe and convenient pathways for pedestrians and
nonmotorized vehicles (e.g., walkways and bike lanes) and integrate these in the infrastructure
development agenda. The Bill intends to create a network of pop-up bicycle lanes to connect
Safe Pathways Bill
users to essential destinations (e.g., medical facilities), designate a network of people-oriented
emergency pathways, and mandate the provision of adequate parking spaces for bicycles and
other non-motorized vehicles, as far as practicable, among others.

This aims to provide a Maritime Code that will implement and enforce international maritime
Maritime Safety, Security and Prevention of
instruments, of which the country is a state-party. These include the International Convention
Ship-Sourced Pollution Bill
for the Prevention of Pollution from Ships, and its Protocols.

Chapter 20 Ensuring Ecological Integrity, Clean and Healthy Environment | 355

PART VII

PROTECTING
THE RIGHTS,
PROMOTING
THE WELFARE,
AND EXPANDING
OPPORTUNITIES
FOR OVERSEAS
FILIPINOS
21
Protecting
the Rights,
Promoting
the Welfare,
and Expanding
Opportunities
for Overseas
Filipinos
 CHAPTER 21

Protecting the Rights,

Promoting the Welfare, and
Expanding Opportunities for
Overseas Filipinos
International migration has been a significant aspect in the economic and social dynamics
of the Philippines over the last four decades. In recent years, about two million Filipinos
leave every year to temporarily work overseas, mainly in the Middle East and Asia.
Another 80-90 thousand choose to permanently transfer to another country, mainly to
the USA and Canada. Filipinos overseas send annual remittances equivalent to about
10 percent of Philippine GDP.1

With the outbreak of COVID-19, governments across the world have imposed
lockdowns, disrupting economic activities and employment, including that of
migrants. The pursuit of a healthy and resilient Philippines should consider the
particular challenges faced by overseas Filipinos (OF) in order to protect their rights,
promote their welfare, and sustain their contribution to the country’s development.
The government will continuously support and assist repatriated and displaced OFs
and seek to address the increased vulnerability of those who remain abroad. For those
who have decided to return to the Philippines permanently, their successful socioeconomic
reintegration will be prioritized. Financial inclusion initiatives for OFs and their families
will also be strengthened.

Assessment and Challenges

Assessment: The first half of the Plan period has overseas Filipino workers (OFW) through
seen significant developments in international the additional One-Stop Service Centers for
migration and development. An internationally- OFWs and OFW Helpdesks; onsite training
agreed framework for comprehensive international and competency assessments were conducted;
cooperation on migration was established; access measures to enhance the security and safety of
to government services was made easier for OFs were introduced; government initiatives

1
World Bank. Migration and Remittances. (Source: https://www.worldbank.org/en/topic/labormarkets/brief/migration-and-remittances)

360 | Updated Philippine Development Plan 2017-2022

enabling safe, efficient, and reliable fund transfers on DFA data. Among the ROFs, 4,904 were
have contributed to the decline in remittance cost; confirmed COVID-19 cases, among whom 5 have
and financial inclusion initiatives have channeled passed away.
more remittances into savings and investment.
Challenges: With the pandemic and the
The Universal Healthcare Act, Social Welfare subsequent global recession, the unprecedented
Attaché Act, Handbook for OFWs Act, and volume of OFs intending to return and those
the Social Security Act of 2018 were enacted to who have already returned will put pressure
enhance the social protection afforded to OFs. on the capacities of OF-serving agencies in
The first National Migration Survey was also providing assistance and reintegration programs.
conducted in 2018 to address the need for baseline Returning OFWs will face a weak labor market
data on the international mobility of Filipinos. in the country amidst social distancing measures
and an economic slowdown. Meanwhile, those
However, the pandemic has displaced migrant who will choose to continue to stay abroad
workers, including OFWs. As of early August 2020, face increased vulnerabilities as the pandemic
the Department of Labor and Employment (DOLE) transforms economies, resulting in shifts in
has received close to 600,000 applications for cash labor demand, aggravated by inadequate social
assistance from onsite and repatriated OFWs. protection. Demand for workers in the healthcare
Almost 230,000 returning overseas Filipinos sector and manufacturing of essential goods is
(ROFs) have arrived, of which over 120,000 had expected to remain strong, while it may decline
been repatriated by the DFA. In addition, there in other sectors such as tourism and retail.
are almost 9,800 confirmed COVID-19 cases Furthermore, the impact of lower remittances
(and more than 700 deaths) among OFWs based will be felt by many Filipino households.

Figure 21.1 Overseas Filipino Worker (OFW) Deployment, Land-based, 2011-2019

Source: Philippine Overseas Employment Administration (POEA)

Chapter 21 Protecting the rights, promoting the welfare, and expanding opportunities for Overseas Filipinos | 361
Figure 21.2 OFW Deployment by Destination Country, 2019

Source: POEA

Targets
Table 21.1 Updated Plan Targets to Protect the Rights, Promote the Welfare, and Expand Opportunities
for Overseas Filipinos to Contribute to the Country’s Development

BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

Sector Outcome: Protect the rights, promote the welfare, and expand opportunities for overseas Filipinos
to contribute to the country’s development

92.3
Percent share of documented to total OFs increased (%)* Increasingh Increasing h Increasing h Increasing h
(2019)

Philippine ranking on the US index on Trafficking in Tier 1

Tier 1 Tier 1 Tier 1 Tier 1
Persons maintained* (2019)

Percent share of active to total members of OWWA 28.9

tbc tbc tbc tbc
increased (%)** (2016)

31.3
Voter turnout increased (%)* N/A N/A 40.0 40.0
(2016)

362 | Updated Philippine Development Plan 2017-2022

 BASELINE TARGETS
INDICATOR VALUE
(YEAR) 2020 2021 2022 End of Plan

International remittance costs as a proportion 4.7

<4.0 <3.5 <3.0 <3.0
of the amount remitted reduced (%) (2016)

Percent of returnees successfully provided

tbc (2019) tbc tbc tbc tbc
re-employment or livelihood**

Notes: * new indicator; ** revised indicator; h –increasing from previous year; tbc – to be confirmed

Strategic Framework
During the formulation of the Philippine The framework used in 2017 focused on protecting
Development Plan (PDP) 2017-2022, international the rights and improving the well-being of OFs,
migration and development (IMD) issues were whether here or abroad; strengthening their
mainstreamed in 9 out of the 15 main chapters. engagement in governance; and facilitating their
These are the chapters dealing with governance, participation in the country’s development and
justice, culture, industry and services, human reintegration. For this update, the framework has
capital development, reducing vulnerabilities, been enhanced in line with the new normal and
science & technology, financial inclusion, and the commitments under the Global Compact for
security & safety. This reflects the crosscutting Safe, Orderly, and Regular Migration (GCM).
nature of migration and the need for a whole-of- Thus, the enhanced framework seeks to cover all
government approach. dimensions of migration, as well as both OFs and
foreign nationals in the Philippines.
For this Updated PDP, this chapter has been added
to ensure greater coherence and comprehensiveness
in discussing issues, relevant indicators, and
strategies in relation to migration and
development, towards a healthy and resilient
Philippines. In line with this, new indicators to
better monitor the government’s progress on
improving migration governance and harnessing
the full benefits of migration towards sustainable
development have been identified.

Chapter 21 Protecting the rights, promoting the welfare, and expanding opportunities for Overseas Filipinos | 363
Figure 21.3 Updated Plan Targets to Protect the Rights, Promote the Welfare, and Expand Opportunities
for Overseas Filipinos to Contribute to the Country’s Development

Strategies
In line with the enhanced framework on The absorptive capacity of OF-serving agencies
migration, the following strategies have been will be improved by streamlining agencies’
expanded to ensure that the Chapter’s objectives operations and enhancing their workforce
will be pursued accordingly. utilization to cater to OFs’ needs better.

Moreover, the government will explore hiring

repatriated OFs as healthcare workers, contact
Protecting OFs’ rights and tracers, personnel for the Build, Build, Build
improving their well-being projects, the National ID System (PhilSys), and
Community-Based Monitoring System (CBMS),
among others. Along with these initiatives, the
Enhance government support and assistance government will intensify the skills retooling
for repatriated and displaced OFWs. With the and upgrading programs for displaced and
unprecedented volume of repatriates and displaced repatriated OFWs (especially for telecommuting
migrant workers, the government must ensure and e-commerce-friendly jobs) to keep them
that all affected OFs, especially OFWs, are provided competitive whether in the domestic or
adequate assistance to overcome the crisis. international labor markets.

364 | Updated Philippine Development Plan 2017-2022

Concurrently, the government will facilitate Islands, and Switzerland, as well as Memoranda of
the movement of OFWs, especially essential Agreement/ Understanding on labor cooperation
workers needed by the global economy, without with Seychelles, Micronesia, and Turkey.
compromising the needs of the local economy. The joint conduct of post-arrival orientation
The government will also explore options to seminar (PAOS) will be explored in bilateral
support the recovery of the recruitment industry. labor negotiations. Further, the government will
continue its negotiations to create pathways to
Enhance health insurance and social security regularization for qualified but undocumented OFs.
for OFWs. Given the unprecedented volume
of migrants needing assistance due to the The Social Security Act of 2018 (RA 11199)
pandemic, the operating funds of migrant-serving also mandates the negotiation of BLAs with
agencies will be augmented to facilitate welfare host countries which do not cover OFWs under
and health-related (including mental health) their social security schemes, particularly for
programs and emergency response at posts. pension entitlement. In line with RA 11199, the
requirement for foreign employers of land-based
Information campaigns on the importance and OFWs to pay SSS contributions, similar to foreign
benefits of health insurance and social security principals of sea-based OFWs, and portability of
for OFWs and their families will be intensified. social security entitlements and earned benefits will
Among others, such information shall be be included in the bilateral labor agreements and
incorporated into orientation seminars across their implementing administrative arrangements.
all stages of migration. With the urgent need
for convenient and contactless transactions, Facilitate effective service delivery to OFs.
e-payment services for PhilHealth and Social Deploying mobile government representative
Security System (SSS) will be continuously offices overseas will improve the provision of basic
enhanced and expanded. Payment schemes for services to OFs. To help empower the OFs onsite,
PhilHealth premiums for departing OFWs will be scholarships, training assistance, and competency
enhanced to enable more flexible payment terms. assessments shall be provided. The Technical
Education and Skills Development Authority’s
Strengthen bilateral and regional ties. (TESDA) Onsite Assessment program and the
Negotiation of bilateral labor agreements Professional Regulation Commission’s (PRC)
(BLAs) with migrant-receiving countries will Special Professional Licensure Examinations will
be intensified, especially with those practicing be expanded. Moreover, government transactions
the Kafala system. BLAs with stringent welfare that cater to OFs will be simplified. This includes
and protection provisions, social security the full roll out of online transactions at the
agreements, and emergency response protocols Philippine Overseas Employment Administration
will be pursued, while the inclusion of health (POEA) 2. Further, the government will provide
insurance in BLAs and in the standard online platforms for psychosocial intervention
employment contract will be explored. BLAs will and psychological first aid to bring together
give particular attention to vulnerable groups, trained professionals to address the psychological
such as household service workers (See Chapter 10). needs of OFs. As an organized and well-defined
Programmed bilateral labor agreements for database on international migration would help
review in 2020 include those with Morocco, facilitate effective service delivery, expediting the
Russia, Thailand, Seychelles, Micronesia, operationalization of the international migration
Suriname, Romania, Saudi Arabia, Trinidad and statistics framework is necessary. To ensure
Tobago, Portugal, Canada, Taiwan, Solomon comparability, the data collection, processing,

2
This includes e-Registration of OFWs and Seafarers; Balik Manggagawa (BM) Online; POEA Online Processing System and further developing
Online Direct Hire; Online Continuing Agency Education Program (CAEP); and Online Licensing and Legal Assistance.

Chapter 21 Protecting the rights, promoting the welfare, and expanding opportunities for Overseas Filipinos | 365
and methodologies of migrant-serving agencies integrated as service providers in the conduct of
will be aligned with the framework. This will also pre-migration education training.
contribute to the operationalization of the Shared
Government Information System on Migration. Exploring other modes of dissemination will
An integrated inter-agency referral and also help enhance information delivery. The
case tracking system will also be introduced online presence of existing programs such as the
(see Chapter 5). BaLinkBayan may be expanded to reach a larger
audience (see Chapters 5 and 15). The conduct
Provide sufficient assistance-to-nationals (ATN) of mobile Pre-departure Orientation Seminars
services. Additional plantilla positions and (PDOS) in more areas as well as the expansion
Foreign Service Posts especially in high-risk of the Community Education Program and Peer
countries and in countries with high levels Counseling Program of the Commission on
of undocumented OFs will be prioritized. In Filipinos Overseas (CFO) would help prospective
addition, agencies’ capacity to provide assistance emigrants make informed decisions on working
to undocumented Filipino migrants who wish or settling abroad. The Handbook for OFWs
to be repatriated will be strengthened. Proper (RA 11227) will be completed and regularly
documentation before the deployment of OFWs distributed to serve as an important reference
will strengthen protection and lessen the risk of for migrants. Further, embassies will continue
OFWs becoming undocumented (see Chapter 18). to strengthen regular engagement of Filipinos
abroad by institutionalizing cultural initiatives
Enhance the capability of migrant-serving agencies (see Chapter 7).
and consular officers on crisis preparedness and
contingency planning. All Philippine Foreign Strengthen measures to protect OFs against
Service Posts will be enjoined to regularly update human trafficking and exploitation. Trafficking
their respective contingency plans. The One Country and illegal recruitment schemes will be abated
Team Approach, where overseas representatives of with effective use of technology-enabled platforms
various government agencies act together under for information dissemination. There is also a
the leadership of the Head of Post, will be strictly need to capacitate more LGUs to invest in anti-
observed. The Overseas Preparedness Response trafficking interventions. This includes seminars
Team (OPRT) will ensure that coordination with for duty bearers and stakeholders at the grassroots
relevant agencies is sustained and rapid response level on how, when, and where to report violations
and relief measures are implemented efficiently and other related laws. The Inter-Agency Council
(see Chapter 18). Against Trafficking’s referral and feedback system
among duty bearers and stakeholders will be
Enhance education of OFs on IMD. The pre- improved. Service directories will be regularly
employment, pre-departure, and post-arrival updated and effective referral pathways for
orientation seminars will be improved in terms of essential services (including healthcare, policing
conduct and content. Enriching the orientation and justice services, psychosocial support,
seminar modules to include cultural diversity, reporting and complaints mechanisms, and other
benefits and costs of migration, economic necessary support) will be made available and
and financial literacy, and overseas voting and accessible to all OFs. Moreover, coordination
reintegration would better prepare OFs throughout among local and international law enforcement
the migration cycle. Pre-migration orientation agencies will be strengthened. The government will
seminars that include not only the prospective continue to explore ways to cooperate with other
migrants but also the families left behind will countries on combatting trafficking in persons
also be implemented. Content will be standardized (see Chapter 18).
across agencies conducting the orientation
seminars. Further, local governments will be

366 | Updated Philippine Development Plan 2017-2022

Improve mechanisms to monitor the schemes, such as the SSS provident fund program,
socioeconomic and political conditions of OFs. and the recently-launched digital services of
Existing mechanisms to monitor the conditions the Overseas Filipino Bank among others.
of OFs, such as ATN Mappings and connections Furthermore, access to financial products
with Filipino communities will be complemented and services will be supported by the full
by mechanisms to facilitate regular gatherings operationalization of the PhilSys which will
to enable embassies to check the status of OFs, address issues on lack of identity documents for
particularly OFWs, on a regular basis (see Chapters opening bank accounts and verifying financial
5 and 18). The OPRT will also conduct threat transactions.
and environmental scanning regularly.
Ensure successful socioeconomic reintegration
Reduce pre-departure costs for OFs. Technology- of OFs and their families. The government
enabled platforms such as online payment will facilitate the smooth reintegration of
systems will be enhanced to address the issue of Filipino migrants into Philippine society. The
requiring payments in bulk. The burden of paying Comprehensive OFW Reintegration Program will
for placement and training fees will be removed be implemented fully and continuously to realize
from the OFW in observance of the “employer pays its objectives: (a) incorporation of a gender-
principle” in the recruitment process. To ensure responsive reintegration preparedness program
that OFWs are not charged more than the in all phases of migration, involving both OFWs
regulations allow, recruitment agencies will be and their families left behind; (b) initiation
strictly monitored. of reintegration pathways for different OFW
segments, particularly domestic workers, less-
skilled workers, sea-based workers, and
professionals; and (c) convergence of initiatives
Facilitating OFs’ participation and harmonization of reintegration programs
in the country’s development and services of all government agencies and
organizations to ensure a comprehensive approach
and reintegration in to reintegration.
Philippine society
The budget for the loan guarantee fund of the
Overseas Workers Welfare Administration
Strengthen financial inclusion initiatives for (OWWA) for the Enterprise Development and
OFs and their families. Faster, safer, and cheaper Loan Program (EDLP), which is administered
transfer of remittances will be promoted by by the agency in partnership with the Land Bank
advocating the use of technology-based banking of the Philippines and the Development Bank of
such as internet banking and mobile payment the Philippines, will be increased. All financial
applications. To complement the reduction in and livelihood assistance initiatives, including
costs, access to information on financial services grants and loans, will be promoted to reach a
must be enhanced through a multi-agency effort greater number of returning Filipinos. For those
to create a centralized portal related to various seeking local employment, the government will
financial transactions. In addition, economic and strengthen employment facilitation services
financial literacy programs catering specifically through proactive job matching, competency
to OFs and their families will continue to be assessment, and certification. The convergence
expanded while highlighting financial planning of DOLE’s enhanced National Skills Registration
and management. This will include the Pinansyal Program and the National Reintegration Center
na Talino at Kaalaman (PiTaKa) Program of the for OFWs’ OFW Skills Registry will facilitate
Bangko Sentral ng Pilipinas (BSP) and Overseas matching of employers and employees based
Workers Welfare Administration (OWWA), on the former’s needs and the latter’s background
information on existing government-managed and skills.

Chapter 21 Protecting the rights, promoting the welfare, and expanding opportunities for Overseas Filipinos | 367
Tap the knowledge and other resources of OFs. Protecting the rights and
Mechanisms through which overseas-based
experts are able to share their knowledge and improving the well-being of
specializations with the academe, industry, and foreign nationals in the country
government will be strengthened. Likewise,
institutional linkages will be fostered through
Filipino professionals and experts abroad to Establish clear policy direction as a migrant-
induce more collaborations in research and receiving country. The swift passage of
development and capacity-building activities. amendments to the Philippine Immigration Act
The potential of OF remittances will be to enhance the control and regulation of the
effectively harnessed and channeled into entry of foreign citizens into the Philippines is
productive investments, through localization of a crucial step towards improving immigration
the BaLinkBayan Portal and replication of the policy and management. While work permit
Overseas Filipino Remittances for Development 3 issuance by different agencies was harmonized
(OFReD) project. through Joint Memorandum Circular No. 001,
s. 2019, the government will look into the
eventual transition to a single provider of all
work permits for foreign nationals. Moreover,
Strengthening engagement in accordance with the GCM, the security and
safety of foreign nationals in the Philippines
of OFs, families, and other will be ensured by providing them with basic
stakeholders in governance services, protecting them against discrimination,
and upholding due process of law in cases of
litigation. Foremost, the government will uphold
Mainstream migration into local development international treaties on the rights of migrants
planning. The government will facilitate the and guarantee that foreign nationals in the
inclusion of programs/projects for repatriated Philippines are not denied basic services on the
OFWs in the Rehabilitation and Recovery Plans basis of their status as migrants. The legal
of local government units (LGUs). Committees, framework for the protection of asylum seekers,
subcommittees, or councils on IMD will be refugees, and stateless persons, including children,
created in key regions to provide a proper venue will be developed, including institutionalization of
to discuss migration issues at the local level. their access to social services.
It is necessary to include migrant representatives
in these committees to ensure that migrants’
concerns are addressed and to harness their full
potential in contributing to local development.

Increase overseas voter turnout. More strategic

locations of overseas registration centers abroad
will be explored. Massive information campaigns,
especially through social media, to encourage
OFs to register and vote will be also pursued.

3
The OF-RED project was launched by the United Nations Development Programme and the Western Union Foundation and implemented
by the CFO.

368 | Updated Philippine Development Plan 2017-2022

Legislative Agenda
For the rest of the Plan period, the following legislative agenda will be pursued:

Table 21.2 Legislative Agenda to Protect the Rights, Promote the Welfare, and Expand Opportunities
for Overseas Filipinos to Contribute to the Country’s Development

LEGISLATIVE AGENDA RATIONALE

Subsector Outcome 1: OFs’ rights protected and well-being improved

This will provide the legislative framework on the implementation of the standards set by
Magna Carta of Filipino Seafarers international conventions and agreements such as the Maritime Labor Convention 2006 on the
working and living conditions and occupational safety and health, among others, for seafarers.

Subsector Outcome 4: Rights protected and well-being improved for foreign nationals in the country

The proposed amendments aim to strengthen legal and institutional framework;

Amendments to the Philippine
border control at ports of entry; and regulation and registration of foreign nationals
Immigration Act of 1940
within the country.

Amendment to Articles 40, 41, and 42 of

This will enhance the country’s labor market test, taking into account best practices
Presidential Decree No. 442 or the Labor
in other countries.
Code of the Philippines

Chapter 21 Protecting the rights, promoting the welfare, and expanding opportunities for Overseas Filipinos | 369