DTI builds the future on yesterday’s budget

To follow up on my column last week, every year — as the national budget is debated in Congress — the lion’s share understandably goes to education, social services, infrastructure and defense.

Yet one agency that often receives less than it truly deserves is the Department of Trade and Industry (DTI). For this year, the DTI’s allocation is just 0.17 percent of the entire national budget. And this has been the case for several years now.

In a budget hearing when I was still with the DTI, I remember hearing a senator telling then DTI Secretary Mon Lopez that the DTI, despite its broad mandate, had the same budget as an attached agency of another national government agency.

At first glance, its mandate may not seem as urgent as health or education, but if the Philippines is to achieve inclusive growth and global competitiveness, then increasing the budget of the DTI is not just desirable — it is essential. We should not lose sight of the fact that it is the DTI which promotes employment for Filipinos, including support for our MSMEs, through foreign and local investments.

The DTI is the country’s frontline in shaping industries, protecting consumers, promoting investments, and supporting MSMEs (micro, small, and medium enterprises). These MSMEs make up 99.5 percent of all businesses in the Philippines and generate more than 60 percent of employment. However, most remain vulnerable to shocks, whether from digital disruptions, supply chain crises, or natural calamities.

With a larger budget, DTI can expand its programs on capacity-building, financing, and digitalization that would empower MSMEs to scale up and compete. In fact, every peso invested in strengthening MSMEs has a multiplying effect on jobs and income across communities.

Another critical role of DTI is attracting foreign and domestic investments. President Marcos has always emphasized the need for more investments starting in his first SoNA. The Philippines competes with its neighbors for investor confidence, but we often lag behind in incentives, infrastructure, and, unfortunately, in ease of doing business.

The DTI, through the Board of Investments (BoI), Philippine Economic Zone Authority, and related agencies, is tasked with marketing the country abroad, and ensuring that investment pledges materialize into actual jobs and factories.

Yet, how can it compete with the well-funded investment promotion arms of countries like Vietnam, Malaysia and Indonesia if it is operating with limited resources? A bigger budget would allow DTI to mount stronger campaigns, deepen partnerships, and open more Foreign Trade Service Corps (FTSC) posts. Currently, the FTSC has only 29 posts in 21 countries with some posts covering multiple countries in a region.

During our time, Philippine ambassadors always came to the DTI to request that commercial attachés be posted in their areas. Unfortunately, DTI had no budget for opening new posts in other countries.

Consumer protection is another area where DTI’s reach must grow, most especially now when Filipinos have to endure increasing prices of goods due to inflation. In an era of e-commerce and cross-border trade, consumers face new risks such as online fraud, counterfeit goods, and unfair practices. DTI’s regulatory and enforcement capability must keep up with the speed of digital trade. An increased budget would mean better monitoring systems, more efficient complaints resolution, and wider consumer education campaigns.

Moreover, global trade is rapidly changing with sustainability and green industries at the forefront. If the Philippines wants to ride this wave and not be left behind, the DTI must have the means to foster industries that are environmentally sound, technologically advanced, and globally competitive.

The budget is not just a matter of numbers; it is a reflection of our priorities. By allocating more resources to the DTI, government signals its seriousness in building a robust economy where Filipino enterprises can thrive, investments will flow, and consumers are protected. Ultimately, the DTI’s success will contribute directly to the revenues that fund health, education, and social programs.

A stronger DTI means a stronger Philippines. It’s time we gave trade and industry the budget it needs to unlock the country’s full economic potential, instead of wasting money on ghost and substandard infrastructure projects.

A congressman’s remark in one of the budget hearings, “ayoko sa DTI walang pera, dito ako sa DPWH maraming pera” (I don’t like it at the DTI there’s no money; I like it at the DPWH there’s a lot of money), while sad, is reflective of the honesty and integrity of the DTI as an institution.