Title
Amendment and expansion of National Competitiveness Council
Law
Executive Order No. 44
Decision Date
Jun 3, 2011
President Benigno S. Aquino III establishes the National Competitiveness Council (NCC) to enhance the Philippines' international competitiveness by promoting strategic collaboration between the government and private sector, while expanding its membership and defining its mandate.

Legal basis, amendment, and predecessor

  • Executive Order No. 44 is issued by the President under the authority to reorganize the administrative structure of the Office of the President.
  • Executive Order No. 44 amends Executive Order No. 571 (s. 2006) by renaming the Public-Private Sector Task Force on Philippine Competitiveness as the National Competitiveness Council (NCC) (Section 1).
  • All other issuances or parts inconsistent with Executive Order No. 44 are repealed or amended accordingly (Section 9).

Policy intent and strategic direction

  • The NCC is established to jointly address competitiveness indicators that affect the country’s competitiveness ranking and to strengthen industry, agriculture, and service sectors.
  • The NCC is tasked to contribute to job creation and increased income as the country moves up the value chain (preamble).
  • The NCC is required to promote and develop national competitiveness strategies and link its work to the Philippine Development Plan (PDP) (Section 2).

NCC attachment and mandate

  • The renamed NCC is attached to the Department of Trade and Industry (DTI) and reports to the Economic Development Cluster (Section 1).
  • The NCC must promote and develop national competitiveness strategies (Section 2).
  • The NCC must push for the implementation of the Action Agenda for Competitiveness (Action Agenda) (Section 2).
  • The NCC must link its work to the Philippine Development Plan (PDP) (Section 2).

Composition and meeting cadence

  • The NCC consists of:
    • Secretary of Trade and Industry—Chairperson (Section 3).
    • Private Sector Representative—Co-Chairperson (Section 3).
    • Secretary of Finance (Section 3).
    • Secretary of Energy (Section 3).
    • Secretary of Tourism (Section 3).
    • Secretary of Education (Section 3).
    • Director General, National Economic Development Authority (NEDA) (Section 3).
    • Five (5) Private Sector Representatives (Section 3).
  • The Co-Chairperson is appointed by the President for a term of two (2) years, and the Co-Chairperson may be reappointed for another term (Section 3).
  • The five (5) Private Sector Representatives are likewise appointed by the President (Section 3).
  • The NCC must meet once every two (2) months or whenever the Chairperson convenes the meeting (Section 3).

Powers, functions, and coordination roles

  • The NCC serves as the primary collection point of investor issues that must be addressed to improve international competitiveness in industry, services, and agricultural sectors (Section 4(a)).
  • The NCC advises the President on policy matters affecting the competitiveness of the business sector (Section 4(b)).
  • The NCC provides inputs to the PDP, the Philippine Investments Priority Plan (PIPP), and the Philippine Exports Priority Plan (PEPP) (Section 4(c)).
  • The NCC coordinates, monitors, and ensures implementation of key policy improvement processes closely associated with international competitiveness (Section 4(d)).
  • The NCC recommends proposed legislations to Congress—through the Economic Development Cluster—that may contribute to competitiveness (Section 4(e)).
  • The NCC coordinates with Local Government Units (LGUs) through local government leagues to ensure that LGU policies, standards, plans, and budgets support the thrusts of the Action Agenda (Section 4(f)).
  • The NCC coordinates with concerned agencies for generation of resources—governmental and non-governmental; local, national, and international—to support the Action Agenda (Section 4(g)).
  • The NCC acts as the primary body to strategize and execute steps to improve the country’s international competitiveness ranking (Section 4(h)).
  • The NCC performs other powers and functions necessary or as assigned by the President (Section 4(i)).
  • The NCC must regularly coordinate with industry/trade associations and local and foreign chambers of commerce to ensure the competitiveness of Philippine industries (Section 6).
  • The NCC may invite industry/trade associations and chambers of commerce as resource institutions while carrying out its mandate (Section 6).

Secretariat and operational support

  • The DTI-Center for Industrial Competitiveness (DTI-CIC) serves as the NCC Secretariat (Section 5).
  • The Secretariat is headed by the Executive Director of DTI-CIC (Section 5).
  • The Secretariat receives support from a private sector staff headed by an Operations Director (Section 5).

Funding and allocation framework

  • For operating expenses of the NCC, PHP 5,000,000.00 is allocated from the Contingent Fund of the Office of the President (OP) (Section 7).
  • After the initial allocation, the NCC’s annual budget is incorporated into the regular budget of the DTI subject to existing accounting and auditing laws and procedures (Section 7).
  • The private sector must provide funding for its own activities (Section 7).

Separability, repeals, and effectivity

  • If any part of Executive Order No. 44 is declared invalid or unconstitutional, the remaining provisions continue in full force and effect (Section 8).
  • Issuances or parts inconsistent with Executive Order No. 44 are repealed or amended accordingly (Section 9).
  • The Order takes effect immediately upon publication in a newspaper of general circulation (Section 10).

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