DTI eyes more investments in aerospace manufacturing

By Justine Irish D. Tabile, Senior Reporter

THE Department of Trade and Industry (DTI) is looking to attract investments in aerospace manufacturing and services as well as sustainable aviation fuel, an official said.

“The Philippines has strong capabilities in areas of parts manufacturing and MROs (maintenance, repair, overhaul),” Trade Undersecretary and Board of Investments (BoI) Managing Head Ceferino S. Rodolfo told BusinessWorld. “These include machining, plastic injection, assembly, packaging, and delivery,” he added.

Mr. Rodolfo said the Philippines can take advantage of opportunities as the industry pursues decarbonization.

“With more than 140 nations pledging for the target of Net Zero by 2050, the Philippines also recognizes the significance of sustainable aviation fuel in the global aviation industry’s decarbonization,” he added.

Mr. Rodolfo noted the Philippines has more than 15 million metric tons of biomass, which can be used for sustainable fuel. These are from rice, corn, coconut, and cassava, among others.

The country also has abundant feedstock concentrated in Central Luzon, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon), Western Visayas, Northern Mindanao, and Davao.

Mr. Rodolfo’s statement follows the participation of the country at the Singapore Airshow 2026 earlier this month, where the department facilitated business matching and target introductions with foreign investors, buyers, and attendees.

“DTI’s engagement at the airshow focuses on positioning the Philippines as a competitive location for aerospace manufacturing and services, including parts production, sub-assemblies, and MRO,” the Philippine Trade and Investment Center (PTIC)-Singapore said in a statement.

The DTI also advanced direct commercial discussions between Philippine firms and international aerospace companies.

“Singapore plays a central role in regional investment decision-making, with many Asia-Pacific manufacturing, MRO, and supply chain decisions taken by regional headquarters of global aerospace and aviation firms based here,” said PTIC-Singapore Commercial Counsellor Carla Regina P. Grepo.

During the event, she said that the PTIC-Singapore briefed aerospace and aviation companies on opportunities in aircraft parts manufacturing, sub-assemblies, and MRO in the Philippines.

“While some firms also referenced defense-related programs as part of their long-term outlook, the core discussions centered on commercial aerospace supply chains, procurement diversification, and expansion of MRO capabilities in Asia,” she added.

Citing data from the BoI, PTIC Singapore said that Philippine aerospace exports stood at $590.2 million in 2024, rising to $603.1 million in the first nine months of 2025. Major export markets included the US, Singapore, France, and China.

Although the country currently hosts Tier 1 and Tier 2 aerospace parts suppliers to Boeing and Airbus across industrial zones and airport-linked developments, the Philippines still face a lack of skilled workers.

To address this, Mr. Rodolfo said that the department has been working with human resource (HR) firms and relevant universities to explore potential areas of collaboration.

“The BoI is continuously engaging HR firms and workforce providers and has supported similar key players in the aerospace parts manufacturing sector, including Tier-1 companies like Collins Aerospace,” he said.

The BoI is also spearheading the Academe-Industry Matching (AIM!) Program, which aims to bridge the gap between education and industry needs.

“Through the AIM! campus roadshows, industry partners are able to increase awareness of the industries’ skills requirements and competencies, enabling high school students to have career options related to the featured industries,” Mr. Rodolfo said.

Apart from aerospace, the program also featured industries like information technology and business process management and electronics, among others.

Mr. Rodolfo also cited the role of Administrative Order No. 31 in advancing the aviation sector.

Issued in March last year, the order created the Philippine Semiconductor and Electronics Industry Roadmap as well as the Semiconductor and Electronics Advisory Council.

“Growing semiconductors and electronics through continued skills development will have a positive impact on the aviation sector,” he added.

Bases Conversion and Development Authority (BCDA), which was among the sponsors of the Philippine Pavilion at the Singapore Airshow, recently announced investment pledges from Lufthansa Technik Philippines.

BCDA President and Chief Executive Officer Joshua M. Bingcang earlier said that it received a proposal from the company for a $400-million MRO facility at the Clark Aviation Capital in Pampanga.

The company already operates an MRO facility at Ninoy Aquino International Airport.