Republic of the Philippines
House of Representatives
Quezon City, Metro Manila
Nineteenth Congress
Second Regular Session
HoUSEBILLNo.  8949
Introduced by Rep. Ferdinand Alexander A. Marcos
1 st District, Ilocos Norte
EXPLANATORY NOTE
This bill aims to promote the Filipino brand to be recognized as a world-
class brand that offers high quality products and services.
The  transformation  of  the  Philippine  economy  to  become  globally-
competitive  entails  the  modemization  and  increase  of  productivity  of  our
agriculture,  the  development  of  the  manufacturing  sector  for  a  substantial
increase  of  its  share  in  our  economy,  and  the  growing  diversification  and
sophistication  of  our  products  and  services.  A  whole-of-nation  approach  is
necessary  that  would  prioritize  our  local  industries  and  provide  them  with
adequate support.
A  rczfczfr Pz.73oj/  Strategy  shall  include  plans  and programs  and  shall  be
organized   according   to   the   following   pillars:    manpower,   infrastructure,
technology  and  innovation,  investments,  and  public  fiscal  management  and
government procurement.
To elicit pride in Philippine-made goods, products and services, we need
to  develop  adequate  and  skilled  manpower  and  for  this  purpose  we  should
institutionalize upskilling, reskilling and lifelong leaming for our workers. It is
also   necessary   that   we   coordinate,   integrate   and   accelerate   infrastructure


development across the country to fulfill national priorities and strategic goals
and  support  target  sectors  and  economic  activities.  Technology  transfer  and
innovation through research and development are also vital between and among
firms,  the  academe  and  government  institutions.  Investment  targets  that  will
enable our industries to transition to the production of diversified, sophisticated
and quality goods and services, whether for domestic or foreign consumption,
must be set and implemented.  Finally,  in government   procurement   activities,
preference    should    be    given    to  domestically-produced  and  manufactured
goods,  supplies  and materials which meet the  specified or desired quality but
this   strategy   should   be   implemented   in   a   manner   consistent   with   our
intemational agreements.
In view of the foregoing, the early passage of this bill is earnestly sought.
FHRDINAND ALEXANDER A. MARCOS


Republic of the Philippines
House of Representatives
Quezon City, Metro Manila
Nineteenth Congress
Second Regular Session
HOUSEBILLNo.    8949
Introduced by Rep. Ferdinand Alexander A. Marcos
1 st District, Ilocos Norte
ANACT
MANDATING             THE             FORMULATION,             FINANCING,
IMPLEMENTATI0N,   MONITORING,   AND   EVALUATION   0F   A
COMPREHENSIVE AND MULTI-YEAR ''TATAK PINOY" (PROUDLY
FILIPINO) STRATEGY, ESTABLISHING A TATAK PINOY COUNCIL,
AND APPROPRIATING FUNDS THEREFOR
Be it enacted by  the Senate and House  of Representatives  of the Philippines in
Congress assembled..
SECTION 1. Sfoorf Ti.i/c. -This Act shall be known as the "Tatak Pinoy (Proudly
Filipino) Act."
SEC.  2. DecJ¢ro#.o#  a/Po/I.c}r.  -It is  hereby  declared the policy of the  State  to
encourage,  support,  and promote the production and offering of Philippine-made products,
goods,  and  services  of increasing  diversity,  sophistication,  and  quality by  local  enterprises
that   are   globally   competitive.   Pursuant  to   Article   XII,   Section   1   of  the   Constitution
emphasizing  the  promotion  of  "industrialization  and  full   employment  based  on  sound
agricultural development and agrarian reform, through industries that make full and efficient
use of human and natural resources, and which are competitive in both domestic and foreign
markets," the State hereby adopts the following policies:
(a)  In  collaboration  with  the  private  sector,  the  State  shall  endeavor  to  transform  the
Philippine  economy  to  such  degree  that  local  enterprises  produce  and  offer more


sophisticated   products,    goods,    and    services    that   are   not   ubiquitous,   widely
manufactured, or commonly available across the world;
® The State shall encourage the continuous improvement, expansion, and diversification
of the productive  capabilities  of local  enterprises  and  their linkages  with  domestic,
regional, and global value chains;
(c)  The State shall ensure that its initiatives to support local enterprises are market-driven
or are in anticipation of future market demand;
(d) The State shall identify business sectors, market segments, and product opportunities
for local  enterprises to target and gain comparative advantage in.  Towards this  end,
the  State  shall  employ  scientifically rigorous methods  including,  but not limited to,
analysis  of the  country's  product  space,  and  of rankings  in  economic  complexity
indices;
(e)  To  elicit  pride  for  Philippine-made  products,  goods,  and  services,  the  State  shall
encourage and promote the skill, ingenuity, creativity, and innovativeness of Filipino
workers, craftsmen, laborers, and professionals;
(I)  The State shall support local enterprises through its regular functions, such as, but not
limited to, the procurement of products, goods, and services manufactured or offered
by local stakeholders. Towards this end, all government agencies and instrumentalities
shall formulate metrics on how, within their respective spheres, they can help support
local Philippine-made products, goods, and services;
(g) The  State  recognizes  the  complementary  roles  of  the  public  and  private  sector,
including  the  academe  and  civil  society,  in  generating  high-paying jobs;  pursuing
economic development;  and co-creating solutions to the country's biggest challenges.
As  such,  the  State shall  actively seek out close partnerships with the private sector,
and  endeavor  to jointly  develop,  finance,  implement,  and  continuously  improve  a
nationwide strategy for supporting local enterprises;
(h) The State recognizes the crucial role scientific and technological innovation plays in
economic  growth  and  development.   As   such,   the   State   shall   implement  plans,
programs,  and  projects  that  continuously  improve  the  country's  education  system;
ensure  better   technology   transfer   among   firms,   the   academe,   and   goverrment
institutions;   and,   encourage   the   generation   and   sharing   of  new   scientific   and
technological knowledge through research and development (R&D); and,
(i)  In pursuit of inclusive economic growth and development, the State shall ensure that
public  expenditures  to   support  local  enterprises  are  equitably  spread  across  the
country, particularly among fourth, fifth, and sixth class provinces and municipalities,
and  directed  to  disadvantaged  sectors  such  as,  but  not  limited  to,  the  urban  poor,
subsistence  farmers  and  fisherfolk,  indigenous  communities  and  micro,  small  and
medium-sized enterprises (MSMEs).
SEC.  3. De'Hi.froH  a/ Terms.  - For purposes of this Act, the following terms
shall mean:
(a)  Economic complexity refers to the economic measurement which is calculated based
on  the  diversity  of  products,  goods,  and  services  a  country  produces  and  their
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ubiquity,  or the number of the countries  able to produce them (and those countries'
complexity);
(b) Infant industries refer to an industry that is in its early stages, where it experiences
relative  difficulty  in  competing  with  established  competitors  abroad  and/or  is  less
productive than global benchmarks or best practices;
(c)  Product space refers to a type of visualization that depicts the connectedness between
products  based  on the  similarities  of the know-how  required  to  produce  them.  The
product space visualizes the paths that countries can diversify. Products are linked by
their proximity to each other, based on the probability of co-export of both of the two
products;
(d) Sophisticated refers to the state when a product, good, or service requires a high level
of technology,  human  capital,  competencies  or  knowhow,  and  infrastructure  to  be
produced or offered;
(e)  Sophistication  refers  to  the  level  of technology,  human  capital,  competencies  or
know-how,  and infrastructure required  for a product or service to be offered by an
economy like that of the Philippines;
(I)  Structural  Transformation  refers  to  the  process  in  which  the  composition  and
distribution of activities within an economy,  as measured by such factors as output,
employment,      and     trade,      changes      and      shifts     from    low-productivity    to
high-productivity;
(g) Technology  Transfer  refers  to  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 (IPRs).
SEC. 4. r¢fw* Pi.#o}r Stra[fegi;. -To achieve the objectives of this Act, a rcz/czfr Pz.#o);
Strategy  (TPS)   shall  be  formulated,   financed,   implemented,  monitored,   evaluated,   and
continuously  improved  upon  by  the  rczfczfr  Pz.7co};  Council,  hereinafter  referred  to  as  'the
Council'  as  prescribed  by  Section  10  of this  Act.  The  TPS  shall  outline  the  plan  for  the
country to incrementally and systematically expand and diversify the productive capabilities
of  local  enterprises,  and  empower  them  to  produce  and  offer  increasingly  diverse  and
sophisticated products, goods, and services, and compete in the global market.
(a)  Development and Coverage. - The development of the TPS shall coincide with that
of the  Philippine  Development  Plan  (PDP)  at  the  beginning  of every  Presidential
administration. The TPS shall cover a period of at least six (6) years and shall provide
for mid-term updates every three (3) years.
(b) Identification   of  National  Priorities   and   Strategic   Goals.   -   As   part   of  the
development of the TPS, the country's national priorities and strategic goals shall be
identified and consolidated through a consultative process that substantially involves
both the public and private sectors.
(c)  Target  Sectors  and/or  Economic  Activities.  -  The  TPS  shall  list  sectors  and/or
economic  activities,  including  but  not  limited  to  creative  industries  as  defined  by
Republic  Act  No.   11904,  otherwise  known  as  the  Philippine  Creative  Industries


Development  Act.   The  list  shall   include  targets   for  the  short-term  (3   years),
medium-term (6 to 9 years), and long-term (12 years and beyond).
SEC.  5. Pi.J/a!rs a/ £fec  r¢/w4 PI.#o}J Str¢ft7gy.  - The TPS  shall  include plans  and
programs,  and  shall  be  organized  according  to  the  following  pillars:  (1)  manpower;  (2)
infrastructure;   (3)   technology   and   innovation;   (4)   investments;   and   (5)   public   fiscal
management and government procurement.
The Council may establish technical clusters and working groups under each pillar to
formulate objectives and targets, conduct the necessary stakeholder consultations, and ensure
proper  implementation  of  the  TPS.   Under  each  pillar,  the  TPS   shall  identify  relevant
public-private initiatives and the government support or assistance to be provided per targeted
sector  or  economic  activity.  Each  cluster  shall  be  headed  by  a  government  agency,  as
determined by the Council, and include relevant private sector representatives.
(a)  Manpower  -  The Department  of Labor and  Employment  (DOLE),  in  coordination
with the Council, the Department of Education (DepEd), the Commission on Higher
Education (CHED),  and the Technical  Education and  Skills Development Authority
(TESDA),   shall   develop   a  National   Upskilling   and   Manpower  Competitiveness
Agenda;  Provz.did,  That  said  agenda  shall  be  a roadmap  for ensuring  that there  is
adequate  and  skilled manpower to  realize  the national  priorities  and  strategic  goals
and support the target sectors and economic activities identified in the TPS; Provz.did,
/wrffeer,   That   the   Agenda   shall   include   different   modalities   for  training,   skills
development, upskilling, reskilling,  and lifelong leaming to be implemented by both
public and private stakeholders;
(b) Infrastructure  -  The  Department  of  Public  Works  and  Highways  (DPWH),  in
coordination with the Council  and other relevant government instrumentalities  such
as,  but  not  limited  to,  the  Department  of Budget  and  Management  (DBM),  the
Department    of   Finance    (DOF),    and    the    Department    of   Information    and
Communications Technology (DICT), the Department of Transportation (DOTr), the
Department  of Trade  and  Industry  (DTI),  the  Department  of Energy  (DOE),  the
Department of Agriculture (DA), the Department of Health (DOH), the Department of
Tourism  (DOT),  the  Department  of  Education  (DepEd),  and  the  Department  of
National  Defense  (DND),  shall  lead in the  formulation of a National  Infrastructure
Development   Strategy:   Provz.c7ec7,   That   the   Strategy   shall   provide   the  basis   for
coordinating,   integrating,   and   accelerating  infrastructure   development   across  the
country  to  fulfill  the  national  priorities  and  strategic  goals  and  support  the  target
sectors and economic activities identified in the TPS;
(c)  Technology and Innovation - The Department of Science and Technology (DOST)
and  its   attached   agencies,   in  coordination  with  the   Council   and  other  relevant
government  instrumentalities  such  as  but  not  limited  to  the  National  Innovation
Council (NIC), the Department of National Defense (DND), the Amed Forces of the
Philippines (AFP), the Philippine Space Agency (PhilsA), the Commission on Higher
Education  (CHED),  state  universities  and  colleges  (SUCs),  and  private  universities
with reputable track record in scientific and technological research, shall ensure that
5


the TPS is harmonized with the National Innovation Agenda and Strategy Document
(NIASD),  in  accordance  with  Republic  Act  No.11293  otherwise  known  as  "the
Philippine Innovation Act";
(d) Investments -The Department of Trade and Industry (DTI), in coordination with the
Council and Investment Promotion Agencies shall formulate a rcz/cz4 Pz.#o}; Strategic
Investment Priority Plan, which shall at the minimum identify sectors and/or activities
and  set  investment  targets  that  will  enable  Philippine  industries  to  transition  to  the
production of diversifled and sophisticated goods and services whether for domestic
or foreign consumption. For this purpose, existing industry roadmaps may be used as
reference. The DTI, through the Board of Investments, shall ensure that the identified
sectors  and/or  activities  shall  be  included  in  the  Strategic  Investment  Priority  Plan
(SIPP);
(e)  Public  Fiscal  Management  and  Government  Procurement  -  The  Development
Budget Coordination Committee (DBCC) shall ensure that prograns and projects that
result in the enhancement of the capabilities of local enterprises to produce and offer
increasingly  sophisticated  products,  goods,  and  services  shall  be  included  in  the
expenditure priorities and the national government fiscal program.
In     government     procurement     activities,     preference     shall     be     given     to
domestically-produced  and manufactured goods,  supplies  and materials which meet
the specified or desired quality; Provz.c7ec7, That in order to claim preference, the DTI
shall   certify   that   such   goods,   supplies   and   materials   are   grown,   produced   or
manufactured in the Philippines; Provz.did, /#rffecr, That domestic preference shall be
applied  in  a  manner  consistent  with  the  Philippine  obligations  under  international
agreements;
SEC.  6. PJa!#Hc.#g  C¢J[  - The Council  shall  issue in a timely manner a Planning
Call  for  the  TPS  to  government  agencies  and  relevant  private  sector  stakeholders.  Such
Planning Call shall include the standards and guidelines for preparing the TPS. The Planning
Call shall commence parallel to the formulation of the Philippine Development Plan by the
NEDA. National government agencies shall submit to the Council their respective plans and
programs and report relevant issues and implementation gaps.
SEC.  7.  Ir¢rmo#i.z¢#.o#  a/ P/¢#s.  -  The  Council  shall  direct  the  goverrment's
planning  cycle to  ensure the harmonization and  coherence of national,  sectoral,  and  spatial
plans  and  programs  by  prescribing  standards,  guidelines,  compliance,  and  accountability
mechanisms.  The Council  shall  also  review  and  approve the short-term,  medium-temi  and
long-term development plans submitted by the agencies as stipulated in Section 6 of this Act,
in order to recommend appropriate action.
SEC.   8. j4wfom¢de Revi.cw ¢#d  Updrft7.  - The NEDA,  in  coordination  with  the
Council, shall perform an annual review of the implementation of the TPS as provided under
this  Act,  in  accordance  with  the  monitoring  and  evaluation  policies  and  guidelines  of the
agency.  To  ensure  responsiveness  to  market  conditions,  the  TPS  shall  be  subject  to


amendment or revision every three (3) years unless there are supervening events that require
an earlier amendment or modification.
SEC.   9.   J[eporfor!.a/  Rcqwc.remc"f.   -  All   departments,   agencies,   goverrment
instrumentalities, and local goverrment units mandated to implement the TPS shall submit a
quarterly report to the Council.  Such reports  shall then be collated by the NEDA  acting as
rczfczfr Pz.#o); Council Secretariat, and then submitted to the Office of the President, the Senate
President, the  Speaker of the House of Representatives and the Chairpersons of the  Senate
Committees on Finance and Trade and Industry and House Committees  on Appropriations
and Trade and Industry.
SEC.  10.  r¢fwft PI.#o}7  CowHci./. - There is hereby created  a  rczfczk Pz.#o); Council,
herein referred to as 'the Council,' which shall be led by a tripartite partnership between the
Director  General  of the  National  Economic  and  Development  Authority  (NEDA),  as  the
Chairperson, and the Secretary of Trade and Industry and the Secretary of Finance, both as
Vice-Chairpersons.  The  Secretaries  of Agriculture,  Budget  and  Management,  Education,
Information  and Communications  Technology,  Labor and  Employment,  Public Works  and
Highways,   Science   and   Technology,   Tourism,   the   Director   General   of  the   Technical
Education and Skills Development Authority, the Chairperson of the Commission on Higher
Education,  and two (2) private sector representatives will also  serve as members: Provj.decJ,
That the respective heads  of agencies may designate their representatives  whose rank shall
not be less than an Undersecretary: Provz.ded, /wr/foer, That the private sector representatives
shall be appointed by the President of the Philippines for a term of three (3) years, and may
be  reappointed  only  once  from  the  nominees  submitted  by  reputable  business  groups,
academic  institutions,  or  associations:  Prov!.dec7, ¢#o//y,  That  the  President  shall  have  the
power to reconstitute the public sector members of the Council in order to fully achieve the
objectives of this Act.
The Council shall serve as the policy and advisory body to the President and shall, adopting a
whole-of-government  approach,  formulate  policies  and  programs  that  will  diversify  the
productive capabilities of local enterprises and increase the country's economic complexity.
Towards this end, the Council shall have the following powers and functions:
(a)   Formulate the multi-year rczfczfa Pj.#o); Strategy or TPS, in accordance with Sections 4
and 5 of this Act;
a) Ensure timely compliance of agencies with the Planning Call, as described in Section
6 of this Act;
(c)  Coordinate  with national  government  agencies  (NGAs)  and  local  government units
(LGUs) to ensure that their respective development plans, policies, and programs, are
harmonized     towards     promoting     the     diversiflcation     and     sophistication     of
Philippine-made products,  goods,  and  services offered by local  enterprises,  whether
exported or consumed locally;
(d) Ensure that plans under the TPS  are implemented well,  and in  accordance with the
objectives of this Act;
7


(e)  Audit   existing  policies,   programs   and   projects   of  government   and   require   the
implementing agencies to submit reports on industry performance and provide policy
recommendations to address industry gaps and other challenges;
(D  Monitor, evaluate, and periodically review and assess the TPS and its implementation
thereof;
(g) Recommend policies, processes, including reengineering of systems  and procedures,
in  order  to  attain  diversification  and  sophistication  of  Philippine-made  products,
goods, and services;
(h) Propose  legislation  or  amendments  to  Philippine  laws  and  regulations  related  to
industry  development  and  promotion  of the  sophistication  and  diversification  of
Philippine-made products, goods, and services;
(i)  Provide technical assistance and advisory opinions in the review of proposed national
or local legislation, regulations, or procedures; and,
¢)  Perform  such  other  functions  as  may  be  necessary,  or  as  may be  directed  by  the
President of the Philippines, for the attainment of the objectives of this Act.
SEC. 11. rccfe#I.c¢/ ¢Hd Sccref¢ri.¢f Swpporf. -The NEDA is hereby designated to
provide overall technical and secretariat support for the r¢fczfr Pz.7co)/ Council. As the principal
secretariat, the NEDA shall have the following duties and responsibilities:
(a)  Determine and prepare the agenda of the Council meetings, and prepare the minutes
of each meeting;
(b)  Serve as venue for the initial processing and discussion of the work of the r¢/cz4 Pz.#o};
Council;
(c)  Receive and prepare communications pertinent to the work of the Council;
(d) Manage and maintain the official records of the Council;
(e)  Prepare the annual budget of the Council;
(I)  Prepare reports as required by the Council; and
(g) Perfomi other duties as may be assigned by the Council.
At least one (1) representative each from the DTI, DOF, DA, DBM, DepEd, DICT, DOLE,
DPWH, DOST, DOT, TESDA, and CHED shall be solely dedicated to serve as liaisons to the
Council  and  provide  technical  and/or  administrative  support  to  the  rcz/czfr Pz.7to)/  Council
Secretariat.
SIEic. T2. Inf ;ormedon Dissemination and Awareness Campaign. -To ens"re broad
buy-in and acceptance, the Council, in coordination with the Philippine Information Agency
(PIA),  shall  ensure that  the  goals  and  objectives  of the  TPS  are  communicated  through  a
nationwide   information   dissemination   and   awareness   campaign.   A   parallel   effort   to
communicate the TPS in an appropriate and effective manner to the rest of the world shall be
undertaken.
SE:C. 13. Implementing Rules and Regulations. - A co:mrn:ittee coaposed of one
(1)   representative   each   from   the  National   Economic   and  Development  Authority


0{EDA), the Department of Finance (DOF), the Department of Trade and Industry (DTI), the
Department  of  Budget  and  Management  (DBM),  the  Department  of  Agriculture  (DA),
Department   of  Education   (DepEd),   Department   of  Infomation   and   Communications
Technology (DICT), Department of Labor and Employment (DOLE), Department of Public
Works and Highways (DPWH), Department of Science and Technology (DOST), Department
of Tourism (DOT), the Technical Education and Skills Development Authority (TESDA), the
Commission on Higher Education (CHED),  and two (2) private sector representatives shall,
within sixty (60) days from the effectivity of this Act, formulate and prescribe, after public
hearing/s  and  publication,  as  required  by  law,  the  implementing  rules  and  regulations
including,  among others,  the criteria and guidelines  for evaluation of bid proposals,  list of
fiscal  and  non-fiscal  incentives  and  arrangements  that  the  government  may  provide  for
projects, in order to carry out the provisions of this Act in the most expeditious marmer.
This  committee shall be headed by the NEDA representative,  as the Chairperson,  with the
DTI  and  DOF  representatives  serving  as  Vice-Chairpersons.  The  Committee may conduct,
formulate,  and  prescribe  after  due  public  hearing/s  and  publication,  amendments  to  the
implementing rules and regulations, consistent with the provisions of this Act.
The  non-promulgation  of the  rules  and  regulations  provided  under  this  section  shall  not
prevent the immediate implementation of this Act upon effectivity.
SEC.   14.   4ppropri.¢rfo#s.   -   The   funds   necessary   to   cany   out   the   initial
implementation of this Act shall be charged against available appropriations of the agencies
concerned,   subject   to   existing   budgeting,   accounting,   and   auditing   laws,   rules,   and
regulations.  The  appropriations  necessary  for the  continued  implementation  of this  Act  in
succeeding years shall be prepared in accordance with regular government budget procedures
and  shall  be  included  in  the  budgets  of the  concerned  NGAs  under  the  annual  General
Appropriations Act.
SEC.  15.  Scpa!robJ./I.ty  C/¢wsc.   If any  provision  of this  Act  is  declared  invalid  or
unconstitutional,  the  other  provisions  not  affected  thereby  shall  remain  in  full  force  and
effect.
SEC.  16. Repe¢/I."g CJ¢wse.  All laws, decrees, orders, rules, and regulations or parts
thereof inconsistent with this Act are hereby repealed, amended, or modified accordingly.
SEC.17. EJj7ecfj.vtry.  This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.
Approved,
9