ELECTRIC public utility vehicles (E-PUVs) to modernize the jeepney fleet need to be largely domestically made to create jobs, the Board of Investments (BoI) said, adding that it intends to offer “solutions” for manufacturers planning to do so.

In an online briefing, Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo called the outlook for domestic manufacturing “a unique opportunity.”

“The demand is here, so it will be better if we are going to support those that are locally made so more Filipinos can benefit from this, and also so we can complete our electric vehicle (EV) ecosystem,” he added.

He said the modernization of the jeepney fleet is only a first step, and that the government should target a full shift to domestically manufactured EVs order to spur industrialization.

“If you just shift to EV, and then fulfill this massive demand in the Philippines through imports, then we will just go back to (out current situation) where we are dependent on imported internal combustion engines, oil, and petroleum,” he added.

He cited the need to subsidize initial investment, tax breaks, and the availability of charging stations and spare parts as the issues brought up by potential investors.

“From the very beginning, the industry has been asking for subsidies for their initial investments. Because, as we all know, especially in a nascent industry, income will come a bit later as we develop the market,” Mr. Rodolfo said.

“Unfortunately, that is what we are grappling with in the government. The tools, mechanisms, and resources that we have currently only allow us to provide income tax-based support, which happens only after they start earning income,” he added.

St. Baker Group’s Jose Montaño said his problems as a supplier of e-tricycles is the 12% value-added tax (VAT) and 2% surcharge.

“If the government really is serious about supporting EV manufacturing here in the Philippines, they should seriously look at this issue of VAT,” he said.

“In contrast, completely built-up units imported from China… are exempt from such taxes. So, I think (the government) should take a look at that. There’s a little imbalance there,” he added.

Alliance of Concerned Transport Organizations National President Liberty Deluna said it fully supports the PUV modernization program but noted the need for more charging stations.

“We recognize the benefits of using EVs … what we are only asking for is the availability of charging infrastructure in the parking areas,” she said.

“Another worry of our operators is the availability of spare parts; we need to have after sales service,” she added. — Justine Irish D. Tabile

THE PHILIPPINES will need to establish testing laboratories and reform its policies to boost domestic manufacturing of pharmaceuticals, the Board of Investments (BoI) said.

In a statement, the BoI said it participated in a US Agency for International Development (USAID) program studying the pharmaceutical ecosystem.

The BoI, USAID, other National Government agencies, and the private sector are collaborating in the Promoting the Quality of Medicines Plus (PQM+) Program to identify industry shortcomings.

“We believe that with the right support, the pharmaceutical industry of the Philippines will flourish,” PQM+ Asia Region Director Mehmood Anwar said.

He added that the “establishment of a testing laboratory is crucial for priority essential medicines in the public and private sectors.”

Under this collaboration, scoping meetings were conducted to understand the local pharmaceutical industry’s capabilities and challenges.

According to the BoI, Mr. Anwar said that consultations with stakeholders revealed the need to prioritize tuberculosis treatments.

“Despite the sizeable domestic market for tuberculosis medicines, there is limited local manufacturing of tuberculosis products,” the BoI, citing Mr. Anwar, said.

“He also underscored that policy coherence is key to an effective policy framework that increases local manufacturing of pharmaceutical products,” it added.

BoI Industry Development Services Executive Director Ma. Corazon Halili-Dichosa said that the PQM+ Program supports the government’s efforts in making medicines available and ensuring that they meet international standards.

“The Philippine market is relatively a big market that domestic industry should be able to serve,” Ms. Halili-Dichosa said.

In 2023, the Philippine pharmaceutical market generated $2.1 billion in revenue and is estimated to remain at around $2 billion this year, with an annual growth rate of 2.4% to $2.33 billion by 2029.

“The market has largely been served by imports, primarily from the US, India, China, and Germany, which exposes the country to global supply chain vulnerabilities, as highlighted during the COVID-19 pandemic,” she said.

In 2023, the Philippines imported $2.35 billion worth of pharmaceutical products. — Justine Irish D. Tabile