DTI on competitiveness decline: Philippines still facing challenges

The Philippines continues to face challenges in infrastructure development and business efficiency, Trade Secretary Alfredo Pascual told GMA News Online on Wednesday.

Pascual thus remarked after the Philippines saw its competitiveness ranking in the world by the Switzerland-based Institute of Management Development (IMD) drop by four places amid inflation, public health crises, and geopolitical issues.

In its 2023 World Competitiveness Yearbook, the IMD ranked the Philippines 52nd out of the 64 economies it ranked all over the world.

The country fell four notches from 48th in 2022.

The IMD’s World Competitiveness Yearbook, first published in 1989, “analyzes and ranks countries according to how they manage their competencies to achieve long-term value creation.”

Pascual said that while the Philippines has shown strengths in economic performance, “we continue to face challenges in important areas such as infrastructure development, government efficiency, and business efficiency, which led to a deterioration of our competitiveness ranking from 48 in 2022 to 52 in 2023.”

Pascual said that it was important to diversify and expand the country’s exports and trading partners.

“It is important to focus on improving our weaknesses to enhance our overall competitiveness. DTI is currently implementing a new industrial strategy that is driven by science, technology, and innovation to grow globally competitive and innovative industries,” the Trade chief said.

Pascual cited the six major pillars of the DTI’s industrial strategy:

• Embracing new technologies as tools to improve the competitiveness and productivity of industries and to enable industries to become more innovative by creating new products and services
• Developing more innovative MSMEs and startups
• Integrating our trade, investment, and industrial policies to diversify our production and deepen our participation in global value chains
• Pursuing regional development through innovation and entrepreneurship
• Human resource development, capacity building, and skills training
• Creating an enabling environment to attract more investments

“The above are crucial in order to improve our competitiveness and achieve inclusive and sustainable growth and development,” Pascual said. —NB, GMA Integrated News