Trade Secretary Cristina Roque ceded on Wednesday that the local packaging industry lags behind its ASEAN counterparts.

To bridge this gap, the Department of Trade and Industry (DTI) is ramping up efforts through the Shared Service Facility (SSF) project, aimed at supporting the industry and boosting Filipino businesses, particularly micro, small, and medium enterprises (MSMEs).

“We need to invest in upgraded machines for the industry, but my basic requirement for purchasing equipment through the SSF is that they must come with repair and after-sales service. Sometimes, these machines break down, and there are no available parts in the country,” Roque said on the sidelines of the 5th edition of ProPak Philippines in Pasay City, an event showcasing the latest innovations in processing and packaging technologies crucial for the country’s economic growth.

Recognizing that MSMEs struggle to access innovative techniques and advanced technology — hindering their ability to reach their full potential, expand into larger domestic or international markets, and compete effectively — the DTI launched the Shared Service Facility (SSF) Project. This initiative aims to enhance MSME productivity and efficiency by providing better access to modern technology.

“We also need to constantly train MSMEs and the people who use these machines. The DTI has a budget for SSFs to buy machines under the GAA 2025, which is around P600 to P800 million,” Roque disclosed.

She said exhibitions like PROPAK are a great avenue to showcase advanced machinery for the packaging industry that is lagging compared to tougher neighboring countries such as Thailand, Malaysia, Indonesia and Vietnam.

Beyond machines

“Even if we have the machines, but there are no after-service providers, then the business will be stalled. So, the machines being bought under the SSF should have after-sales service located in the country, as importing machine parts takes time and is very costly. That is why we are lagging,” according to Roque.

Earlier, Joseph Ross Jocson, president of the Asia Packaging Federation, clamored for government support for their industry, a missing link for their industry to move further.

The DTI said as of November 2024, the government has put in place a total of P3.7 billion since 2013 and funded the establishment of 3,611 facilities with over 700,000 MSMEs and other users assisted, with 300,000 employment generated nationwide.

The SSF has served key industry clusters such as processed food, coffee, cacao, dairy, coconut, abaca, bamboo, GDH, metal and rubber, among others, and is present in all 17 regions, according to the DTI.

ProPak 2025, with the theme “Investing in the Future of Sustainable Packaging and Processing through Technology, Innovation, and Thought Leadership,” underscores the critical role of government and private sector in driving economic growth and sustainability.

The event has attracted over 250 exhibiting companies from 25 countries, including international pavilions from Italy and Taiwan.

These exhibitors showcased cutting-edge innovations in processing and packaging technologies and were expected to engage with over 12,000 trade buyers throughout the three-day event.

ProPak Philippines emphasizes knowledge sharing and networking, featuring over 40 industry-focused conference and seminar sessions in collaboration with esteemed organizations such as the Australasian Institute of Packaging, Philippine Alliance for Recycling and Materials Sustainability, and Prestige Paper Products, among others.