THE Federation of Philippine Industries (FPI) said supply chain disruptions and the weak peso make it necessary to pursue a “buy-local”approach to boost domestic industrial production.
In a statement late Tuesday, FPI Chairperson Elizabeth H. Lee said domestic production and procurement will ‘better position” the economy by building “capacity…to withstand external pressures.”
Foreign exchange volatility and supply-chain disruptions caused by the fighting in Iran cuts across industries and the overall economy, Ms. Lee said.
The peso first weakened past the P60-to-the-dollar level on March 19, about three weeks after the outbreak of fighting in the Persian Gulf.
Ms. Lee cited Republic Act (RA) No. 11981 or the Tatak Pinoy Act, which provides a clear framework for upgrading domestic industries and moving up the value chain.
“Persistent global uncertainty reinforces the economic case for domestic production, with local spending generating broader multiplier effects across employment and supply chains,” Ms. Lee said.
She also noted that RA 9184 or the Government Procurement Reform Act provides a guide for domestic industry preference.
“Its current framework — still largely anchored on price-based evaluation — presents an opportunity for further alignment with industrial development goals,” she said.
Margins of preference for domestically-produced goods may be more strategically utilized to support local industries within established rules,” she said. — Beatriz Marie D. Cruz
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