Trade department budgets P800 million for shared-service facilities

THE Department of Trade and Industry (DTI) said that up to P800 million has been budgeted for shared service facilities (SSF) projects this year.

Trade Secretary Ma. Cristina A. Roque made the remarks on the sidelines of the opening ceremony of Propak Philippines 2025, adding: “Some of the funds have already been used to buy machinery. So now, there is P600 million worth of machinery that needs to be purchased,” she added. 

The SSF program is the DTI’s flagship project to improve the productivity of micro, small and medium enterprises (MSMEs) by giving them access to mechanization and related technology.

“Usually these include packaging, printing, bottling, and so many other machinery,” she added.

Ms. Roque said that Propak Philippines exhibits packaging equipment that its organizers hope will advance industrialization.

She cited concerns about after-sales services and training that need to accompany machinery new to the market.

“For us to be able to buy machinery for shared service facilities, they must have repair and after-sales services.”

“We also need to constantly train the people that will use these machines,” she added.

Asian Packaging Federation President Joseph Ross A. Jocson said: “Sustainability is no longer a trend in packaging; it is a necessity. Consumers are increasingly demanding eco-friendly choices, and businesses are (under) growing pressure to reduce their environmental footprint.”

“This means embracing sustainable packaging solutions that minimize waste, use recycled materials, and are designed for circularity,” he added.

According to Ms. Roque, the Philippine packaging industry is lagging its ASEAN peers.

“If you put (Philippine products and their products) side by side, their packaging is better, but ours taste better,” she said. 

“But since the packaging of our counterparts is nicer, their products are the ones being bought,” she added.

This year’s Propak event is called “Investing in the Future of Sustainable Packaging and Processing through Technology, Innovation, and Thought Leadership.”

Due to run between Feb. 12 and 14, the event is expected to attract 12,000 trade buyers. — Justine Irish D. Tabile