MANILA, Philippines — A lawmaker is seeking to support and strengthen the car manufacturing industry to help drive economic development in the country.
During the hearing of the House committee on trade and industry on Tuesday, Cagayan de Oro City Rep. Rufus Rodriguez, who authors House Bill No. 1823 or the Philippine Motor Vehicle Manufacturing Industry Act, said that in many advanced countries such as the United States and Europe, the car manufacturing sector is “one of the drivers for fast economic development” in their areas.
Rodriguez said former President Ferdinand Marcos previously issued the Progressive Car Manufacturing Program Decree back in 1973 to support the car manufacturing industry in the country.
“There was development there but not as fast as the other countries that are really focused on supporting its car manufacturing program to be able to really increase the production of cars, increase employment, increase the livelihood of many other people,” Rodriguez said.
Then in 2015, former President Benigno Aquino III issued Executive Order 182 which sought to accelerate the car manufacturing program in the country, said Rodriguez.
Rodriguez said his measure seeks to institutionalize EO 182 and provide further improvements to support the car manufacturing industry.
Under the measure, the President shall approve a rolling three-year National Moor Vehicle Manufacturing Development Plan, prepared by the Board of Investments (BOI) and formulated in consultation with concerned stakeholders, and which shall be validated and updated annually.
The Plan shall define the car manufacturing industry’s annual and medium-term manufacturing and export targets, and programs and strategies to support manufacturing and export hubs.
The Plan shall also identify priority development products.
A Motor Vehicle Manufacturing Development Council shall also be created to serve as the central policy coordinating body and national advisory committee.
Enterprises engaged in the manufacture of motor vehicles duly registered with the BOI as participants under the Motor Vehicle Development Program shall be entitled to incentives such as income tax holiday, among others.
At the end of the hearing, a technical working group (TWG) was created to further smoothen the provisions of the bill.