Domestic producers are calling on the government to accelerate the implementation of the New Government Procurement Reform Act (NGPA) or RA 12009, expressing concern that the three-year transition period for full compliance may be too lengthy.
John Reinier Dizon, president of the Federation of Philippine Industries (FPI), emphasized this during a press conference for the Manufacturing Summit on October 8, 2025. He explained that the NGPA provides for a three-year transitional phase, beginning from the approval of the standard procurement forms by the Government Procurement Policy Board (GPPB) on May 14, 2025. This arrangement gives government agencies until May 2028 to fully transition from the old law, RA 9184, to the new requirements outlined in RA 12009.
Dizon expressed his concerns about the length of this transition. “I think three years is a little bit long for a transition,” he noted.
However, he mentioned recent discussions with the Department of Trade and Industry (DTI) aimed at fast-tracking enforcement. As a representative of the GPPB, Dizon shared that he has conveyed his concerns about how to accelerate the law’s implementation. “Three years is a long time. And there’s a new administration by then after three years, so we’re following it up,” he said.
He also emphasized the need for the government to begin implementing local procurement, at least for certain departments, to support domestic industries.
The NGPA aims to enhance transparency, modernize procurement processes through technology and innovation, ensure fit-for-purpose procurement to attain better value, and mandate the disclosure of beneficial ownership information to prevent collusion. The law also encourages pooled procurement to achieve economies of scale and promote sustainable practices that consider environmental and social impacts.
Tatak Pinoy
In addition to the NGPA, another law designed to boost domestic manufacturing is the Tatak Pinoy (Proudly Filipino) Act, or Republic Act No. 11981, which was signed into law by President Marcos on February 26, 2024. Authored by Senator Sonny Angara, the law promotes stronger collaboration between the government and the private sector.
Under the Tatak Pinoy Act, Philippine industries are encouraged to produce high-value, sophisticated goods and services, enhancing their competitiveness both locally and globally. The legislation aims to foster innovation and technology transfer, leading to faster economic growth and higher incomes for Filipinos, ultimately creating more opportunities within the country.
The Tatak Pinoy Act complements the Philippine Development Plan’s objectives by targeting specific sectors with growth potential. A Tatak Pinoy Strategy will be developed as a roadmap for government agencies and the private sector to achieve the act’s goals.
Economies of scale
Dizon highlighted that enforcing local procurement, particularly in his industry—cement—could help local manufacturers achieve economies of scale. As president of Republic Cement and Building Materials Inc., one of the country’s leading cement producers, he explained the industry’s capacity and current demand.
“The cement industry has a total capacity of 51 million tons, but last year, demand was only about 35 million metric tons. It’s likely the same this year, with imported cement estimated at around 7 million MT—40 to 50 percent of which was used in government projects. If these imports were sourced locally, it could significantly benefit our local cement manufacturers,” Dizon said.
He pointed out that the industry’s utilization rate is only 53 percent, which impacts profitability. “Heavy industries with such low utilization are not making money, given fixed costs like labor, property taxes, insurance, and maintenance. To be profitable, an industrial firm should aim for at least a 65-70 percent utilization rate. At 53 percent, you’re just able to cover your interest expenses, but you’re not really making much profit,” he explained.
He echoed the call of Chairman Emeritus Arranza, saying, “The government has to lead by example by patronizing locally made products, whether it be rice, food, or building materials. We follow Philippine national standards, and as Filipinos, that should be our battle cry.”
