Inclusive and Green Approach Eyed for the DTI Shared Service Facilities Program

On 27 July 2018, a team from the Global Green Growth Institute (GGGI) and the Department of Trade and Industry (DTI) visited the Shared Service Facility (SSF) operated by the Philippine Footwear Federation, Inc. (PFFI) in Marikina City to explore areas where “green and inclusive approaches” could be introduced to enhance its contribution to the development of Micro-Small and Medium Enterprises (MSMEs) while employing operational processes that are environmentally friendly and sustainable.

The DTI pursues a seven-point strategic framework to help MSMEs start up, sustain, expand, and internationalize their own businesses, and thereby become starter entrepreneurs.   The 7Ms, namely Mindset, Mastery, Mentoring, Markets, Money, Machines, and Models holistically equip MSMEs to make headway in increasingly competitive markets, while contributing to the larger cause of sustaining the entrepreneurial revolution.

In support to one of the 7Ms:  Machine, the DTI has been implementing the Shared Service Facilities (SSF) Project as one of the strategies to achieve its goal of inclusive growth and jobs generation.  Specifically, SSF is aimed at increasing the productivity and improving the competitiveness of MSMEs by providing them with machinery, equipment, tools, systems, accessories and other auxiliary items, skills, and knowledge under a shared system.  The objectives of the SSF Project are: a.) increasing MSME productivity; b.) accelerating MSME competitiveness through access to energy efficient technologies; c.) promoting MSME graduation to access wider and global markets; d.) converging and pooling government resources; and e.) addressing gaps in the value chain of priority industry clusters.  As of July 2018, the DTI-SSF Program has supported the establishment of 2,240 shared service facilities nationwide, which created 122,135 jobs and served 241,813 beneficiaries.

According to DTI Assistant Secretary Blesila Lantayona, who oversees the DTI-SSF Program, “the initiative to introduce inclusive and green growth lens in the DTI-SSF Program supports the thrust of the DTI to improve the productivity and income of our MSMEs and aligns with the development direction of the Government to pursue inclusive growth in an environmentally responsible manner.”

The PFFI-run SSF in Marikina City, one of 9 facilities in the National Capital Region, aims to revitalize the local shoe industry by providing MSMEs engaged in the footwear industry access to technology and machinery that introduce economy and efficiency in selected stages of shoe production, such as 3D modelling, computerized shoe-last fabrication, automated leather stitching, and laser-aided engraving, among others. A facility orientation was provided by Mr. Paul Lardizabal, PFFI Deputy Managing Director.  “Initiatives to enhance the SSF Program, such as the DTI-GGGI collaboration on inclusive green growth, is most welcome and we will be glad to cooperate towards this shared objective”, said DTI-NCRO Regional Director Anacleto C. Blanco Jr.

Ms. Inhee Chung, GGGI Manager for Sustainability and Safeguards, also noted the significant potential of the DTI-SSF Program is, “through the introduction of more efficient and green technologies, coupled with better safety and health standards for workers as well as appropriate skills training, women, indigenous peoples and even persons who are differently abled will have the opportunity to gain employment and enhance their livelihoods”, she said.

The DTI-GGGI team was composed of Ms. Rosanna Aligaya (Division Chief, Planning and Programs Division, DTI-NCRO); Ms. Ma. Gloria J. Tandoc (Trade and Industry Development Specialist, DTI-BSMED); Ms. Eralyn Buenafrancisca (Trade and Industry Development Specialist, DTI-RGMS); Mr. Rhoel Bernardo (Climate Resilient Green Growth Project Lead, GGGI); Ms. Inhee Chung (SPRSI Manager, GGGI); Ms. Doreen Erfe (Capacity Development Officer, GGGI); Ms Bulganmurun Tsevegjav (Integration Lead, GGGI) and Ms. Mae Valdez (Climate Resilient Green Growth Project Associate, GGGI).