Dataline 03 (2012)

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30 January 2012 1

30 January 2012 Vol. 16, No. 03

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A bi-monthly digest of global and domestic industry trends and developments. Published by the Trade and Industry Information Center, Department of Trade and Industry  Manila, Philippines Tel. (632) 895.3611  Fax (632) 895.6487  To subscribe, email: publications@dti.gov.ph Online: http://www.dti.gov.ph

In this issue Focus Domingo sees robust 2012 Inside DTI DTI to revive PhilTrade Center Good News, Philippines! 1. EV’s MSMEs earn more 2. Shipping sector optimistic MSME/OTOP News Tawid Ken Partuat 2011 Business Alert 1. One-stop-shop business center in Parañaque launched 2. DTI seeks way to ease power rate hike in ecozones

Consumer News New ISO standard established for emergency management Policy 1. DOF readies incentives bill 2. BOI re-crafts auto program Feature How to register a business name ASEAN Watch 1. Manila to host APEC-SME confab 2. ARMM-Malaysia barter trade starts Statwatch What’s New


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Focus Domingo sees robust 2012

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epartment of Trade and Industry (DTI) Secretary Gregory L. Domingo said the Philippine economy this year could exceed the 7.6% GDP of 2010 saying “all pistols will be fired,” referring to sound economic steps that are working favorably toward ensuring strong growth. “I am very bullish this year. Definitely, 2012 is a much stronger growth than 2011 and we have a very good chance to be above 6% and a decent chance to exceed the 2010 level of 7.6%,” Domingo said. Domingo also cited the favorable factors that would push for higher growth this year including “the robust services sector, improving tourism, government spending, and the PPP (Public-Private Partnership) projects that are starting to pick up speed.” The Aquino government is expected to roll out eight to 16 PPP projects worth P80B to P142B under the PPP program. In addition, there is an investment pipeline being put up both by foreign

Inside DTI DTI to revive PhilTrade

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he Department of Trade and Industry (DTI) plans to revive the PhilTrade Center as a permanent venue for exporters to showcase their world-class products. Department of Trade and Industry (DTI) Undersecretary for Trade and Investment Promotions Group (TIPG)CristinoPanlilio, in an interview with DTI-Public Relations Office Director Thelma Dumpit Murillo over DZRB, said talks are underway between the DTI and owners of the property, Social Security System (SSS) and Philippine National Bank (PNB).

and domestic investors including the electronics sector. The Board of Investments (BOI) has registered a total of P368.9-B investments in 2011 or 22% higher than 2010 while the Philippine Economic Zone Authority (PEZA) approved a total of P288.3B or 41% more than the P204.4-B investments haul in 2010. On the same note, Malacañang is confident that the DTI could meet its US$120-B export-revenue target by 2016 despite the prevailing global economic uncertainty, citing measures being undertaken by the Department to meet this goal. “Secretary Domingo has a good plan. We, of course, should give it a chance and we are fully supportive of the DTI’s efforts to help our exporters,” Deputy Presidential Spokesman Abigail Valte said. She said Malacañang shares Domingo’s optimism in meeting the export-revenue target of US$120 billion by 2016 as the DTI plans “to exhaust other means of providing assistance to the export industry given the downturn that we’ve seen in 2011.”

Once re-established, PhilTrade Center will be a permanent exhibition site open year-round for buyers of products such as garments, housewares, furniture, Christmas decors and others. It will also serve as a venue for micro, small and medium enterprises (MSMEs) to exhibit their goods as well as to assist the buyers in finding local products. Another strategy to boost exports and investments is the reorganization of the Foreign Trade Service Corps (FTSC), DTI’s trade and investments


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30 January 2012 3

promotion arm abroad, which will focus on specific markets by geographic location such as Europe, North America, India-Pakistan-Sri Lanka-Nepal market, and others, Panlilio said. Each market will be served by a team of experts in the area of export, importation, investments, commercial intelligence and data gathering. This move is expected to make the FTSC more efficient and deliver results. DTI constantly hold talks with export groups to seek their suggestions on how the government can improve the Department’s programs and services. Panlilio said one of the current initiatives of the Department was the establishment of shared services facilities in various regions in the country.

Good News, Philippines! 1. EV’s MSMEs earn more

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xport sales of micro, small and medium enterprises (MSMEs) in Region 8 or Eastern Visayas, assisted by the Department of Trade and Industry (DTI), reached US$21.3M in 2011, 18% more than the US$18.2M target.

This project, which is under the Regional Operations Development Group headed by DTI Undersecretary for Regional Operations Development Group (RODG) Merly Cruz, aims to provide MSMEs affordable means to package their products and eventually turn these enterprises into world-class exporters. On investment promotions, Panlilio said good governance under the Aquino administration encouraged investors to put up their business in the Philippines. One of DTI’s priority sectors is the revival of the garments industry. Murillo said DTI is hoping for the passage of the Save Our Industries Act, which will provide preferential duty treatment to certain Philippinemade garments exported to U.S.

“For 2011, we monitor export sales of MSMEs with direct and full assistance from our office. The actual export data of the region’s MSMEs is higher but we do not include performance of other firms that received only some form of assistance from DTI,” Nierras said.

DTI-8 Regional Director Cynthia R. Nierras said they were able to surpass their target last year although sales is significantly lower than in 2010 since they only included performance of MSMEs that received full assistance from DTI.

She said many MSMEs assisted under the Export Pathway Program (EPP) were able to penetrate the international market in 2011 either through direct sales or through exporters based in Cebu and Metro Manila.

In 2010, the DTI-8 recorded a US$55.6M export sales of MSMEs. Sales were generated through national and international fairs which link firms to foreign buyers.

The six EPP stages cover MSME capability building on start-up, export awareness, export readiness, market readiness, market entry, and export sustainability.


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2. Shipping sector optimistic

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ccreditations of domestic shipping business increased 16% year-on-year in JanuaryNovember 2011 compared to the same period in 2010, reflecting a strong investor confidence in the country’s shipping industry.

The Marina reported that vessel acquisition intended for domestic utilization rose 47% over those acquired in 2010, noting that the strength of the Philippine peso stirred demand for ships for domestic deployment.

The Maritime Industry Authority (Marina) accredited 618 business enterprises in January-November 2011, up from 531 in 2010.

The agency said a total of 150 vessels were acquired through importation compared with 114 in 2010. Bareboat chartering showed an increase of 89%.

Investors expect a bright future in the country’s economic position brought about by the government’s drive against graft and corruption, the improving peace and order situation, and other internal concerns. There were 297 new entrants in the period, up 58% from the previous year’s data of 188.

MSME/OTOP News Tawid Ken Partuat 2011

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he 9th Tawid Ken Partuat of Ilocos Sur held last 14-20 December 2011 at Metrowalk Commercial Complex in Pasig City recorded P2.5-M sales. Tawid Ken Partuat was held last 14-20 December 2011 at Metrowalk Commercial Complex Pasig City, showcased various products from different municipalities of Ilocos Sur.

Business Alert 1. One-stop-shop business center in Parañaque launched

It said 40 applications were processed, seven of which were for tax exemption and 33 for VAT exemption which were endorsed either to the Board of Investments (BOI) under the Investment Priorities Plan (IPP) or to the Department of Finance (DOF) for the grant of incentives. (MBI 01/05)

included chichacorn, kalamay, bibingka, bagnet, longanisa, tagapulot, balikutsa, banana and camote chips, fresh fruits and vegetables, calamansi juice, local wines, vinegar, furniture, and abel iloko.

Some 43 booths represented the province’s pride with products that

“We are proud to show Ilocos Sur here in the Metropolis and at the same time, we are helping our MSMEs in promoting their crafts,” Ilocos Sur Governor Chavit Singson said.

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and responsibility of managing the satellite office as part of their “one-stop-shop system” in business permit processing.

Parañaque City Mayor Florencio Bernabe delegated to the Parañaque City Chamber of Commerce and Industry (PqCCI) the authority, function

In the forefront of the city’s annual processing of business permits are the Business Permit and Licensing Office (BPLO), City Treasurer’s Office, and the Electronic Data Processing Office (EDP).

he Department of Trade and Industry (DTI) opened a satellite office in Parañaque City to facilitate the business name registration for those intending to put up a business in the city.


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30 January 2012 5

The City Planning Office, City Assessor’s Office, Tourism Office, Office of the Building Official, and the City Health Office served as the support group. Also present in the “one-stop-shop system” are Parañaque Bureau of

2. DTI seeks way to ease power rate hike in ecozones

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he Department of Trade and Industry (DTI) said it will find ways to maintain the rates in economic zones. While the Power Sector Assets and Liabilities Management Corp. (PSALM) already announced the extension of the the Ecozone Rate Program (ERP), locators in ecozones are concerned over the lapse of the said program. “PSALM has always been on board. It’s just a matter of completing the Implementing Rules and Regulations,” Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said, assuring

Consumer News New ISO standard established for emergency management

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Fire Protection (BFP), PqCCI and local units of the Bureau. The one-stop-shop system is a local project of the city government to make the business permit processing easier and accessible. (MAB 05/01/12)

the industries that they are going to assist in this challenge. The ERP presently benefits 279 customers in industrial areas who provide more than 222,213 jobs and contribute 43% of the total Philippine manufacturing exports worth US$19B. DTI Undersecretary for Trade and Investments Promotions Group (TIPG) Cristino L. Panlilio said the solution should not entail any cost to the government. While the rates may not be as low as those provided under the ERP, they are still lower than commercial rates and are thus still competitive.

o minimize the impact of disasters, terrorist attacks, and other major emergency incidents, ISO 22320:2011, a new standard for management and incident response, was developed.

supplies, and electricity and fuel delivery. ISO 22320 is a valuable tool that all types of organizations can use to improve their capabilities in handling incident response in any crisis situation.

ISO 22320 outlines global best practice for establishing command and control organizational structures and procedures, decision support, traceability and information management.

It encourages community participation in the development and implementation of incident response measures to ensure a response that is appropriate to the needs of the affected population while remaining culturally acceptable. The developer also desires a maximal interoperability for communication, which in an emergency can be a key element for success or failure.

It aims to help save lives, mitigate harm and damage, and ensure continuity of basic services such as health and rescue, water and food


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Policy DOF readies incentives bill

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fiscal incentives bill approved by the House of Representatives is being streamlined by the Department of Finance (DOF) under a version being prepared for deliberations at the Senate as the issuance of tax exemptions is seen to be granted only to enterprises most in need of such. “We are looking at narrowing the benefits granted by the House bill and strategically focusing them. We want the concentration of the fiscal incentives bill to be chiefly for exporters, so they can be more competitive in the global markets,” DOF Assistant Secretary Ma. Teresa S. Habitan said.

2. BOI re-crafts auto program

they could just give other forms of assistance that are more direct and transparent to enterprises that aren’t export-oriented. “We can grant reduced tax rates instead, with built-in sunset provisions,” she said as DOF will also push for the abolition of income tax holidays that exempt businesses from the 30% income tax rate. Income tax holidays are a major component in the House’s version of the incentives bill. The measure grants tax holidays for export enterprises (six years), domestic enterprises (four years), strategic domestic enterprises (eight years) and domestic enterprises located in less developed areas (six years).

House Bill 4935, or the proposed Investment and Incentives Code of the Philippines, grants the most tax breaks to export-oriented enterprises or those with 70% of their production are for export.

House Bill 4935 also grants other fiscal perks such as a 50% corporate income tax reduction and a 5% tax on gross income earned in lieu of all national and local taxes.

However, domestic enterprises, strategic domestic enterprises identified under the annual Investments Priorities Plan (IPP) and those located in Mindanao, and the 30 poorest provinces in the country are also granted perks. Habitan said

Under the proposed bill, DOF will assign incentive-granting functions solely to the Board of Investments (BOI). Other bodies that previously issued their own fiscal incentives will be turned to investment promotion agencies instead. (BWD 01/09)

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he Board of Investments (BOI) is re-crafting the motor vehicle development program (MVDP) to come up with a new roadmap on how to grow the industry. Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said the new MVDP is now being discussed among industry players. “The aspiration is to become a regional player and not a domestic player. Thailand and Indonesia are

ahead (of the Philippines in being) regional players. We are at the state where we are discussing a new approach. We have to be creative. We will get it out sooner,” Domingo said. The MVDP or Executive Order 877-A, which was one of the last few EOs issued by the past administration in June 2010, aims to increase investments in the automotive industry through a set of policies that would make the country an attractive investment destination. (MAL 01/11)


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Feature How to register a business name

30 January 2012 7

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or any business to suceed, it has to be identified. Aside from the nature of a business, its name will set it apart from the rest. For single proprietorships, applicants are required to apply for business

name with the Department of Trade and Industry (DTI). For partnerships, corporations, and cooperatives, they are to register with the Securities and Exchange Commission (SEC).

Basic information on business name (BN) registration 1. What are the documentary requirements for BN Registration? · Filled-out application form with at least three (3) proposed business names · Original copy of identification card/ document 2. What identification cards are acceptable for BN registration? Original copy of any of the following is acceptable for presentation to the DTI Field Office concerned: · Passport · Valid Driver’s license · Professional Regulation Commission (PRC) ID · National Bureau of Investigation (NBI) Clearance · Police Clearance · Postal ID · Voter’s ID · Government Service insurance System (GSIS) Unified Multi-Purpose ID · Social Security System (SSS) ID · Tax Identification Number (TIN) ID · Overseas Workers Welfare Administration (OWWA) ID · Seaman’s Book · Government Office and GOCC-issued ID (e.g. AFP, HDMF, Phil Health) · Integrated Bar of the Philippines ID · Senior Citizen ID · Person with Disability (PWD) ID 3. How much does one pay for the BN registration? The registration fee varies depending on the territorial scope of your BN.

4. What is the territorial scope/applicability of BN registration? Territorial scope/applicability of BNregistrationrefers to an area within which the applicant’s right to use the registered BN shall be confined. It may be within a barangay, a city or municipality, a region, or nationwide in coverage. 5. How do I get my BN registered? The following are three (3) options: · Over-the-counter transaction. You may file your application with any DTI Field Office offering BN registration; pay the appropriate fees online (www.bnrs.dti.gov.ph) and print the Certificate of Registration. Payment of fees may be made through any of the available online payment facility. · For new registration, you are required to proceed to any DTI Field Office to present the required ID within ten (10) working days from the time the online BN registration is completed. · Combination of online and over-the-counter transaction. You can also file your application online and pay over-the-counter at any DTI Field Office. 6. What is the internet address to access the online application for BN of DTI? The URL address is http: www.bnrs.dti.gov.ph bnrspub/ 7. How long is the validity of my BN registration?

The fees are as follows: · · · ·

P200 for barangay only registration P500 for city/municipality only registration P1,000 for regional only registration P2,000 for national registration

In addition, a P15 documentary stamp tax is also assessed once the BN registration is approved and a certificate is issued.

The BN registraion is valid for five (5) years from the date of issuance, unless voluntarily revoked or cancelled prior to its expiration. 8. When is the renewal period of a BN? Renewal of registration should be made within six (6) months immediately following its expiration date.

For further queries on BN registration, consumers may contact DTI Direct at 751.3330. You may also visit the DTI website at www.dti.gov.ph.


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ASEAN Watch 1. Manila to host APEC-SME confab

Vol. 16, No. 038

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he Asia-Pacific Economic Cooperation (APEC) announced that the Philippines will be the venue of the 2012 APECSME Meeting and Conference on18-20 July. Taking the lead and playing host will be Plantersbank, the country’s bank for Small and Medium Enterprises (SMEs) and the financial institution that was invited to be a member of the APEC Financial Institutions Dealing with SMEs (APEC-SME). This will be the first time the Philippines is hosting this annual summit. “With SMEs playing a key role in building a healthy economy, this yearly gathering gives us the opportunity to share learnings and developments in SME finance which will help us in further improving our services and offerings for SMEs,” Plantersbank Chairman and Chief Executive Officer (CEO) Ambassador Jesus P. Tambunting said. (BWD 01/04)

2. ARMM-Malaysia barter trade starts

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he Autonomous Region in Muslim Mindanao (ARMM) officially started in January this year its barter enterprise with Malaysia as a result of the successful trading arrangement inked with the Sandakan-based group of entrepreneurs. Executive Director of the ARMM Economic Zone Authority Rosslani Alonto-Sinarimbo said a memorandum of understanding (MoU) has already been signed between ARMM and Malaysia.

STATWATCH 7.6%

Gross domestic product (GDP) growth in 2010

P80B-P142B Amount of projects under the Public-Private Partnership (PPP) program to be rolled out by the government this year P368.9-B

Investments approved by the Board of Investments (BOI) in 2011

P288.3B

Investments approved by the Philippine Economic Zone Authority (PEZA) in 2011

US$120B

Philippine export target by 2016

US$55.6M

Export sales of micro, small and medium enterprises (MSMEs) in Region 8 or Eastern Visayasin 2010

US$21.3M

Export sales of DTI-assisted MSMEsin Region 8 in 2011

618

Business enterprises accredited by the Maritime Industry Authority (Marina) in January-November 2011

“Expectedly, any day now our maiden voyage with Malaysia via the Sandakan Port would start,” Alonto-Sinarimbo said. ARMM composition 

Basilan

Lanao del Sur

Maguindanao

Marawi City

Sulu

Tawi-Tawi


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What’s New? (A synopsis of selected book acquisitions at the DTI-TIIC library)

30 January 2012 9

Publisher: Department of Trade and Industry – Office of Operational Planning Call Number: 45 608/03.01/DTI-OOP This roadmap is divided into two major components: the trade and industry agenda outlining the various initiatives necessary to achieve the Department of Trade and Industry’s objectives of increasing exports and investments, expanding entrepreneurship, and ensuring consumer welfare. The second part is the governance agenda, focusing on institutional reforms directed toward a more effective and efficient bureaucracy. This edition, being the 3rd of the 3-year rolling roadmap since its introduction in 2004, outlines the DTI’s response to changes in the operating environment and reflects the priorities of the Aquino administration. Philippine Postal Permit No. PM-04-08

Title: Selected Philippine Economic Indicators – August 2011

Title: DTI 20112013 Roadmap: Enabling Business, Empowering Consumers

Publisher: Bangko Sentral ng Pilipinas Call Number: 45 608/STAT/BSP/2011 The book contains statistical data on Philippine economic indicators: external accounts – trade exports and imports, balance of payment, investments, external debt, foreign exchange; financial system accounts – Bangko Sentral ng Pilipinas assets and liabilities, financial system, number of financial institutions, country’s loans; fiscal accounts – income and expenditures; and prices and other real sector accounts – value of production index of key manufacturing enterprises by industry. It also includes other Asian countries’ growth rates for the following: real and nominal GDP, inflation, and other indicators stated above. The report covers annual and monthly data for the period 2000 – 2011.

Legend: BWD MAB MAL

- Business World - Manila Bulletin - Malaya

Editor-in-Chief: Anne L. Sevilla Associate Editor: Vic S. Soriano Writers: Resty P. Par, Jam A. Hourani, Aye B. Salcedo, Elaine M. Lazaro, Emman R. Caleon Design/Layout: Ren C. NeneriaCirculation: Myrna V. delos Reyes To subscribe, email: publications@dti.gov.ph


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