Develop Ship Building and Repair Sector

Executive Order No. 588 is anchored on the State’s industrial development agenda under the President’s Ten-Point Agenda and job creation commitments under the President’s Ten-Point Legacy Program.
Executive Order No. 588 expressly recognizes that Republic Act No. 9295 encourages the development of a viable ship building and ship repair sector supportive of the shipping industry.
Executive Order No. 588 cites Republic Act No. 8042, requiring the State to continuously create local employment opportunities and promote the equitable distribution of wealth and benefits of development.
Executive Order No. 588 references Section 3, Article XIII of the Constitution recognizing business enterprises’ right to adopt and enforce policies necessary to protect reasonable returns on investments and to support expansion and growth.

Executive Order No. 588 provides that the growth and development of the Philippine ship building and ship repair sector is a key component of the government’s continuing industrial development program. (Section 1)
Executive Order No. 588 provides that the ship building and ship repair sector must support employment generation, modernization, and improved productivity through new technological and managerial know-how. (Section 1)
Executive Order No. 588 provides that investment—both foreign and local—in the ship building and ship repair sector must enjoy full government support. (Section 1)
Executive Order No. 588 provides a training and employment policy aimed at promoting Filipino workforce development toward a world-class and competitive industry. (Section 2)
Executive Order No. 588 establishes supportive institutional cooperation to ensure timely and effective implementation. (Section 5)

Executive Order No. 588 applies to foreign and local investment entering and being maintained in the Philippine ship building and ship repair sector. (Section 1)
Executive Order No. 588 applies to duly registered entities engaged in ship building and ship repair within the country for training, employment, and incentive-related measures. (Section 2)
Executive Order No. 588 applies to duly registered entities in relation to adopting reasonable employment policies to guard trade secrets and other confidential programs and information. (Section 3)
Executive Order No. 588 covers government agencies and instrumentalities that must assist and provide cooperation to duly registered entities and their Filipino trainees and employees. (Section 5)

Section 1 provides that the Philippine ship building and ship repair sector’s growth and development shall be a key component of the government’s continuing industrial development program in accordance with the President’s Ten-Point Agenda.
Section 1 provides that the entry and maintenance of foreign and local investment in the sector shall enjoy the government’s full support.
Section 1 directs the basis for full support as the sector’s capability to generate employment opportunities, modernize the industrial sector, and improve productivity through new technological and managerial know-how. (Section 1)
Section 5 provides that government agencies shall assist in availing applicable fiscal and non-fiscal incentives, including registration as a preferred pioneer industry under the Board of Investments (BOI), to the extent permitted by law. (Section 5)

Section 2 requires that the training, development, and continuing employment of Filipino citizens in duly registered entities engaged in ship building and ship repair within the country form part of the government’s investment promotion effort.
Section 2 launches the “FILIPINO INVESTING IN THE PHILIPPINES” Program effective immediately and lasting for five (5) years thereafter. (Section 2)
Under Section 2, duly registered entities are encouraged and promoted to conduct free skills-training and development for Filipino citizens in consideration of the latter’s continued and exclusive employment in those entities, in accordance with existing laws, rules, and regulations.
Section 2 recognizes that Filipino workers who participate in the free skills-training and development are encouraged to faithfully adhere to their contractual commitments with the entities under the program.
Section 2 provides that overseas deployment or changes in employment in breach of contract by Filipino workers under the program shall be considered acts inimical and greatly prejudicial to the national interest.
Section 2 provides that Filipino workers who participate in the free-skills training and development and are subsequently employed by duly registered entities engaged in ship building and ship repair in the Philippines are entitled to incentives as may be provided by law. (Section 2)

Section 3 recognizes the right of duly registered entities engaged in ship building and ship repair to adopt reasonable employment policies.
Section 3 allows such reasonable employment policies to effectively guard trade secrets, manufacturing formulas, strategies, and other confidential programs and information from competitors, both local and foreign.
Section 3 conditions the right on compliance with the provisions of existing laws.

Section 4 establishes an Ad Hoc Committee to immediately formulate a comprehensive development plan for the ship building and ship repair sector.
Section 4 requires the Ad Hoc Committee’s development plan to be formulated under terms and conditions that stimulate and remain consistent with the progressive development of the sector.
Section 4 provides that the Committee is chaired by the MARINA Administrator.
Section 4 provides that the Committee’s members include representatives from: NEDA, DOF, DOJ, DTI, DOLE, DPWH, DENR, PEZA, SBMA, and PCG.
Section 4 directs the Committee to submit its program within sixty (60) days from the effectivity of the Executive Order.

Section 5 requires that, to the extent permitted by law, concerned government agencies, bureaus, and instrumentalities shall assist duly registered entities in availing applicable incentives, including BOI preferred pioneer industry registration.
Section 5 names the agencies directed to provide cooperation and support as: NEDA, DOF, DOJ, DTI, DOLE, DPWH, DENR, MARINA, PEZA, SBMA, PCG, and all other concerned government agencies, bureaus, and instrumentalities.
Section 5 directs these agencies to provide appropriate administrative and institutional assistance to ensure the timely and effective implementation of Executive Order No. 588.
Section 5 includes assistance specifically for duly registered entities’ Filipino trainees and employees.

Section 6 provides a separability rule: any portion or provision declared unconstitutional shall not nullify other portions and provisions as long as remaining portions can still subsist and be given effect.
Section 7 provides a repeal rule: all presidential issuances, administrative rules and regulation, or parts thereof, inconsistent with Executive Order No. 588 are revoked or modified accordingly.
Section 8 provides immediate effectivity: the Executive Order takes effect immediately.