Strong businesses thrive not by reigning over other businesses but by collaborating and making an ecosystem that works interdependently. This is the business system that the Clark Development Corporation (CDC) strives to introduce to its locators at the Clark Freeport Zone.
This is in cognizance with President Ferdinand Marcos Jr.’s Philippine Development Plan 2023-2028 or the master plan for deep economic and social transformation to reinvigorate job creation and accelerate poverty reduction by steering the economy back on a high-growth path.
President Marcos has been reiterating that growth must be inclusive, building an environment that provides equal opportunities to all Filipinos, and equipping them with skills to participate fully in an innovative and globally competitive economy.
In compliance with the Marcos administration’s goal, the CDC has launched in 2024 its Business Interdependence Program, providing an avenue for locators to exchange valuable information that would help their businesses expand and possibly have cheaper production and marketing costs.
Officials and personnel of the Clark Development Corporation take a pose with business executives and locators inside Clark Freeport Zone during the first Business Interdependece Forum.
CDC President and CEO Agnes VST Devanadera said that this will help manufacturers in scoring lower production costs if they connect with local producers of their raw materials, giving them opportunities to explore new revenue streams.
“Nakita namin na yung ibang produkto ng ibang locators ay kailangan din ng ibang locators na ini-import pa nila. Yun naman pala dito na ginagawa (We found out that some locators that used to import raw materials they needed are available in other locators. They import raw materials, but it turned out these materials are locally produced),” she said.
“So, posible nga na ang nangyari, dito ginawa, in-export, tapos may nangailangan, in-import. So, to cut the process short and para rin yung supply chain na tinatawag natin ay mapatibay natin (Materials are being manufactured here for export and some locators imported these raw materials. So, we cut short the process and to further strengthen the supply chain),” she added.
Devanadera thanked President Marcos for always reminding government agencies to be inclusive and sustainable in exercising their mandates to benefit not only the stakeholders but the communities as well.
CDC President and CEO Atty. Agnes Devanadera encourages entrepreneurs to connect among themselves and find suitable partners for their respective businesses to thrive while operating inside the Clark Freeport Zone during the maiden Business Interdependence Forum held September last year.
According to Devanadera, the program was one of the lessons they applied from the negative impacts of the COVID-19 pandemic, where many enterprises were forced to shut down because of challenges in inventory and logistics operations.
“Kung natatandaan ninyo noong pandemic, maraming factories nahinto ang kanilang production dahil kailangan nilang mag-import. Ngayon, ang tinitignan natin pwede bang dito sa mga locators ay mag-negosyo sila among themselves (If you can recall, during the pandemic, a lot of factories ceased operations because they needed to import. Now we are finding ways for locators to transact business among themselves),” she said.
Export enterprises that do business with another export enterprise within the Clark Freeport Zone under the said program are considered as constructive exports, Devanadera noted.
Constructive export is the sale of raw materials, semi-finished, or finished products to a bonded warehouse, economic zone, or freeport. It can also refer to the sale of goods or services to special entities that are entitled to import goods tax and duty free.
Devanadera also highlighted CDC’s goal for locators to have more product innovations and revenues from the initiative.
“Dumadami yung nag-order dito sa ating mga locators at nagkakaroon pa sila ng mga bagong products na kailangan pala ng ibang locators. So, dito mismo parang ito na yung buong mundo kasi nagpapalitan sila [ng produkto] at tumataas ang revenue. Ang mahalaga sa mga investors ay kumikita sila (More orders were placed by a locator to another locator. So within their circle, they are buying each other’s products for a higher revenue. It is important for investors to gain profit,” she said.
Locators who are interested in the program need to register with the CDC to ensure compliance and reduce the risk of smuggled goods.
LSG Industrial & Office Products, Inc., a distributor of office products, business solutions, and industrial products located within the Clark Freeport Zone, has been servicing for 24 years in industries including aviation, manufacturing, electronics, and semiconductor.
LSG Industrial President Florante Sunga Jr. emphasized how Clark’s business atmosphere has been a good location for them. Let alone the presence of an international airport that allows easy transportation of their products and the “highly attractive incentives” given by the government.
“This prime location enables us to streamline operations, invest in innovation, and consistently deliver exceptional service and quality products to our customers. The Clark Freeport Zone fosters a dynamic business environment that supports our growth and allows us to maintain a competitive edge,” he said.
LSG Industrial was one of the exhibitors of the first-ever Business Interdependence Conference conducted in September last year.
“Isa pong malaking karangalan sa amin na maimbita sa kauna-unahang [business] interdependence forum,” Sunga said.
Sunga noted that the confab was an opportunity for them to connect and explore potential collaborations as it was a conducive platform for networking and relationship-building among Clark Freeport Zone locators.
“Our participation in the forum underscores our commitment to contributing to the growth and success of the Clark Freeport Zone,” he added.
CDC, a key player in the country’s economic landscape, is actively contributing to this vision through several strategic projects, which demonstrate a strong alignment with the Marcos administration’s priorities, specifically transforming Clark into a globally competitive hub for various sectors.