Law Summary

Introduction

Executive Order No. 588, issued on December 8, 2006, by President Gloria Macapagal-Arroyo, aims to enhance the ship building and ship repair sector in the Philippines. This initiative aligns with the government's objective to create millions of jobs and stimulate investment in sectors where the Philippines holds a comparative advantage.

SECTION 1: Development of the Philippine Ship Building and Ship Repair Sector

• Legal Principle/Provision: The growth of the ship building and ship repair sector is deemed crucial to the government’s industrial development agenda.
• Key Definitions:
  • "Duly registered entities": Businesses that are officially recognized to operate in the ship building and repair sector.
• Requirements/Procedures:
  • The government will support both foreign and local investments in the sector.
• Timeframes: No specific deadlines mentioned; the initiative is ongoing.
• Consequences: Investment in the sector is expected to generate employment and modernize the industrial landscape.

• Government support for investment in ship building and repair.
• Emphasis on employment generation and modernization of the industrial sector.

SECTION 2: Training, Development, and Employment of Filipinos

• Legal Principle/Provision: Establishes the "FILIPINO INVESTING IN THE PHILIPPINES" program aimed at training Filipino workers for employment in the sector.
• Key Definitions:
  • "FILIPINO INVESTING IN THE PHILIPPINES" Program: A program promoting skills training for Filipinos to enhance their employability in the ship building and repair industry.
• Requirements/Procedures:
  • Registered entities must conduct free skills training for Filipino citizens.
  • Workers must adhere to contractual commitments post-training; breach may lead to penalties.
• Timeframes: Program effective for five years from the issuance of this order.
• Consequences: Overseas deployment or employment changes that breach contracts will be viewed as detrimental to national interest.

• Free skills training for Filipino citizens.
• Employment commitment required post-training.
• Breach of contract viewed negatively.

SECTION 3: Right to Guard Trade Secrets

• Legal Principle/Provision: Acknowledges the right of registered entities to protect their trade secrets and confidential information.
• Key Definitions:
  • "Trade secrets": Confidential business information that provides competitive advantages.
• Requirements/Procedures: Entities may implement reasonable policies to protect their confidential information.
• Consequences: Protection of trade secrets is critical for maintaining competitive advantage.

• Entities can adopt policies to safeguard trade secrets.
• Recognition of the importance of confidentiality in business operations.

SECTION 4: Ad Hoc Committee

• Legal Principle/Provision: Establishes an Ad Hoc Committee to formulate a comprehensive development plan for the sector.
• Key Definitions:
  • "Ad Hoc Committee": A temporary committee created for a specific purpose.
• Requirements/Procedures:
  • The Committee will be chaired by the MARINA Administrator and include representatives from various government agencies.
  • A comprehensive plan must be submitted within 60 days.
• Timeframes: 60 days deadline for plan submission.

• Committee to formulate a development plan within 60 days.
• Chaired by MARINA with representatives from multiple agencies.

SECTION 5: Institutional Assistance and Support

• Legal Principle/Provision: Mandates government agencies to assist registered entities in availing fiscal and non-fiscal incentives.
• Key Definitions:
  • "Fiscal and non-fiscal incentives": Benefits provided by the government to promote investment.
• Requirements/Procedures: Agencies must cooperate to ensure compliance and implementation of the order.
• Consequences: Non-compliance by government agencies may hinder the effectiveness of the order.

• Government agencies directed to provide necessary support.
• Emphasis on cooperation among various departments.

SECTION 6: Separability Clause

• Legal Principle/Provision: Any unconstitutional provision within this order does not nullify the remaining provisions.
• Consequences: Ensures that the order remains in effect even if parts are invalidated.

• Unconstitutional provisions will not affect the validity of the remaining sections.

SECTION 7: Repeal

• Legal Principle/Provision: Repeals any previous issuances inconsistent with this Executive Order.
• Consequences: Ensures clarity and uniformity in the implementation of policies within the ship building and repair sector.

• Revocation of inconsistent presidential issuances and regulations.

SECTION 8: Effectivity

• Legal Principle/Provision: The order takes effect immediately upon issuance.
• Timeframes: Immediate effectivity from December 8, 2006.

• The Executive Order is effective immediately.

Key Takeaways

• The Executive Order aims to bolster the Philippine ship building and repair sector through investments and training.
• Establishment of the "FILIPINO INVESTING IN THE PHILIPPINES" program to facilitate skills development for local workers.
• Protection of trade secrets is recognized as essential for competitive business operations.
• An Ad Hoc Committee is tasked with developing a comprehensive plan within 60 days to support the sector’s growth.
• Comprehensive government support is mandated to ensure the success of initiatives outlined in the order.