DOMESTIC manufacturers see their hurting businesses getting a new lease on life with the order of President Arroyo requiring government instrumentalities to prioritize locally made products in their procurement.

Jesus Arranza, president of the Federation of Philippine Industries (FPI), said this is a big boost for them considering the government is the biggest market, particularly in infrastructure-related products.

“It will expand the market of local manufacturers and encourage them to expand,” Arranza told the BusinessMirror.

President Arroyo, during the launch of the “Buy Pinoy, Buy Local” campaign of the FPI and the Federation of Filipino-Chinese Chamber of Commerce and Industry Friday, directed Executive Secretary Eduardo Ermita to prepare the executive order (EO) reviving an old directive compelling government agencies to prioritize purchase of locally made products.

Arranza said with a budget of over P1 trillion, they are just hoping to capture at least 20 percent of the government’s spending and the local industries will be in better shape.

He said even those that are currently experiencing low utilization rate due to stiff competition from imported items will be expanding their production capacity.

More important, Arranza said by blocking government’s procurement of imported items, smuggling will also be curbed.

“If the government, which is the biggest consumer, stops buying imported items, smuggling will also stop,” he said.

Once the EO has been signed, Arranza said they will work with Trade Secretary Peter Favila for the crafting of the implementing rules and regulations (IRR).

Favila, Arranza said, already promised full cooperation in putting together the IRR when he arrives from Indonesia.

The FPI, on the other hand, will be organizing a committee that will oversee the implementation of the EO on the private sector side.

The group will also come up with a massive information campaign in support of the program, Arranza said.

The President said the purchase of locally made products will reinforce the government’s crackdown on smuggling.

“When the buying stops, smuggling stops. So the move to ‘Buy Pinoy’ is a market-based solution to smuggling,” she said.

DOMESTIC manufacturers see their hurting businesses getting a new lease on life with the order of President Arroyo requiring government instrumentalities to prioritize locally made products in their procurement.

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