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(NAR) VOL. 15 NOS. 3-4 / OCTOBER - DECEMBER 2004

[ EXECUTIVE ORDER NO. 372, October 18, 2004 ]


WHEREAS, the government has embarked on the implementation of a 10-point agenda to uplift the economy;

WHEREAS, the government recognizes the need to develop the potential of the country's globally-competitive service industries in order to generate employment and earn foreign exchange;

WHEREAS, the role of government is to provide an enabling environment for the private sector to invest in these service industries and thereby create the capacity and the competitiveness for global markets;

WHEREAS, the government recognizes that developing these service industries requires a market-based, private sector driven approach;

WHEREAS, there is a need to create a mechanism to harness the synergy of the public and private sectors in order to formulate integrated master plans for the development of these service industries;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Creation of a Public-Private Sector Task Force for the Development of Globally Competitive Philippine Service Industries. - There is hereby created the Public-Private Sector Task Force for the Development of Globally competitive Philippine Service Industries, hereinafter referred to as the Task Force.

SECTION 2. Functions. - The Task Force shall have the following functions:

  1.  Identify service industries which the Philippines has the potential to be globally competitive, including, but not limited to health and wellness; retirement and leisure; information technology; and logistics;

  2. Formulate development plans in service industries that are identified where the Philippines has the potential to be globally competitive.  Such plans shall provide for public-private sector partnership models in the development of these sectors;

  3. Ensure the effective and timely implementation of the development plans;

  4. Initiate action and mobilize the concerned agencies of the government and the private sector to implement the development plans;

  5. Monitor and evaluate the implementation of the development plans; and

  6. Submit monthly report to the President, through the Executive Secretary, on the status of the development plans.

The Task Force may accept donations, contributions, grants, requests or gifts, in cash or in kind, from various sources, domestic or foreign, for purposes relevant to its functions: provided, that in cases of donations from foreign governments, acceptance thereof shall be subject to the prior clearance and approval of the President of the Philippines upon recommendation of the Secretary of the Department of Foreign Affairs, pursuant to Republic Act No. 9206.

Receipts from donations shall be accounted in the books of the Task Force in accordance with pertinent accounting and auditing rules and regulations.  Such donations, whether in cash or in kind, shall be deemed automatically appropriated for purposes specified by the donor.  The receipts from cash donations and proceeds from sale of donated commodities shall be remitted to the National Treasury and recorded as a Special Account in the General Fund and shall be available through a Special Budget pursuant to Section 35, chapter 5, Book VI of Executive Order No. 292.  The Task Force shall submit to the Department of Budget and Management, the Senate Committee on Finance, the House Committee on Appropriations, and the Commission on Audit a quarterly report of all donations whether in cash or in kind, and a quarterly report of expenditures or disbursements of the amount released.

SECTION 3. Composition. - The Task Force shall be composed of the Secretary of Trade and Industry, the Secretary of Foreign Affairs, the Chairman of Clark Development Corporation, the Chairman of Subic Bay Metropolitan Authority and five (5) representatives from the private sector who shall be appointed by the President.

The Secretary of Trade and Industry and one (1) representative from the private sector shall be Co-Chairs of the Task Force.

The Task Force may call on any heads of departments, agencies, bureaus, or offices to provide assistance and cooperation to the Task Force as may be required.

Resource persons from trade associations and local and foreign chambers of commerce may be invited during meetings of the Task Force to carry out its mandate.

SECTION 4. Coordination with the Senior Adviser on International Competitiveness. - The Task Force shall closely coordinate its development plans with the Senior Adviser on International Competitiveness who shall continue to perform his functions in advising the President in areas concerning the development of the country's global competitiveness.  The Senior Adviser on International Competitiveness shall ensure that the President's directives relative to the development of globally competitive Philippine service industries are efficiently and effectively implemented by the Task Force.

SECTION 5. Funding. - The funding for the operational requirements of the Task Force shall be drawn from the President's Contingent Fund.

The private sector entities shall fund their own participation in the work of the Task Force, including operational and promotional activities, feasibility studies and the like.  They are encouraged to secure their own funding through grants and other contributions from foreign and local private sector counterpart, subject to applicable laws, rules and regulations.

SECTION 6. Repealing Clause. - All executive issuances, rules and regulations or parts thereof which are inconsistent with the provisions of this Executive Order are hereby repealed, amended or modified accordingly.

SECTION 7. Effectivity. - This Executive Order shall take effect immediately.

Adopted: 18 Oct. 2004


By the President:

Executive Secretary
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