Dataline 04 (2012) by Department of Trade and Industry

dataline

13 February 2012 1

13 February 2012 Vol. 16, No. 04

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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 DTI keeps US$80.2-B exports target Inside DTI DTI, SM renew partnership on BN registration Good News, Philippines! 1. Clark exports breach US$2-B level 2. Power discount benefits 514 locators MSME/OTOP News DTI-11 recognizes outstanding MSMEs Business Alert Bicol pili to be registered with IPOPHL Consumer News The case of shortchanging

Policy Benefits to outweight loss from duty-free EO Feature Naga City formalizes shift to eco-friendly vehicle ASEAN Watch 1. Aquino shares optimism of HSBC study on PHL economy 2. ASEAN touted as single destination for tourist travel Statwatch DTI Direct Call Center Report What’s New?

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Focus DTI keeps US$80.2-B exports target

Vol. 16, No. 042

he Department of Trade and Industry (DTI) has maintained its US$80.2-B exports target this year, counting on the expected robust growth of the services sector.

The Department of Tourism’s (DOT) slogan “It’s more fun in the Philippines,” he said, would include the promotion of trade and investment, not just tourism.

“The private sector and the DTI will keep the absolute target for 2012,” said Bureau of Export Trade Promotion (BETP) Director Senen M. Perlada, who is also the Export Development Council (EDC) Executive Director.

“With the help of our tourism and commercial attachés abroad, we see a ramp in tourism investment in the Philippines,” he said.

Perlada said services exports must be increased to compensate for the loss of revenues from merchandise exports. Services exports, which include information technology-business process outsourcing (IT-BPO) sector, presently account for 20% of Philippine total exports. Electronics exports account for almost half of the country’s total exports revenue. “This trend in the services exports will cushion the decline in export receipts and help us meet our targets in 2012,” he said. While the passage of House Bill 3596 or “Call Center and Consumers Protection Bill” in the US Congress is seen as a threat in the country’s BPO industry, Perlada said “it will ultimately be a business decision on the part of the companies.” “What we can do is to improve on the attractiveness of the Philippines as a BPO destination,” he added.

Inside DTI DTI, SM renew partnership on BN registration

he Department of Trade and Industry (DTI) and SM Department Store renewed their tie-up for offering online processing of business name (BN) registration. The business centers of SM City Marilao and SM City Baliwag were

He mentioned that DTI has recently organized the so-called Global Marketing Intelligence Teams (GMITs), which are composed of eight teams like America, South Asia, North Asia, Middle East, and North Africa. The teams do not just include DTI but also the DOT, Departments of Foreign Affairs (DFA), and Agriculture (DA), and other agencies and stakeholders involved in international business. As composite teams, the GMITs will work together to harmonize programs to make the most of resources. Likewise, countries where the Philippines has free trade agreements (FTAs) such as Japan, Taiwan, Korea, Australia, and New Zealand were cited strategic markets for Philippine exports. Perlada said 57% of the country’s merchandise exports now go to these countries. At present, utilization of exporters of these FTAs with partner countries has reached 30%.

the newest SM branches to provide the services. The tie-up was recently formalized in a memorandum of agreement (MOA) with DTI Undersecretary for Regional Operations and Development Group (RODG) Merly M. Cruz, DTI-3 Regional

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Good News, Philippines! 1. Clark exports breach US$2-B level

13 February 2012 3

Director Blesila A. Lantayona, DTI-9 Regional Director Nazrullah B. Manzur, and SM Senior VicePresident for Controllership Ricky A. Lim, and SM Assistant Vice-President for Controllership Meynard Mendoza at SM Megamall Megatrade Hall in Mandaluyong City.

businessmen’s registered BN certificates in 15 minutes.

With the agreement, entrepreneurs can have their applications processed through the new DTI eBNRS (Enhanced Business Name Registration System), which allows SM Business Centers to process online and print out the

The SM Business Centers have been a one-stop shop for government services to its shoppers and have been offering DTI Consumer Welfare Desks and DTI BN Registration services in 12 SM branches in Metro Manila since 2007.

xports revenue generated by the Clark Development Corporation (CDC) hit US$2.3B in 2011, up 55% over the US$1.6-B recorded in 2010, notably breaching the US$2-B target three years earlier than the target date. CDC President Felipe Antonio B. Remollo said the US$1.6-B exports from Clark’s electronic sector had helped propel this record surge. This was followed by tire exports at US$298M and garments at US$226M. Manufacturing firms contributed US$131M while aviation-related companies completed the top five exporting sectors with US$13M. “The country’s export performance may not be altogether bleak as exports of the Clark Freeport Zone exceeded the US$2-B mark, a good three years earlier than the target date set by the CDC,” Remollo revealed.

Entrepreneurs only need to ensure they have filed the necessary forms, submitted all requirements, and paid the necessary fee to avail of the service.

The 2011 record exports volume puts CDC on track in attaining the three major performance targets dubbed “3-2-1 Development Roadmap” for Clark where US$3B is in investments, US$2B in exports, and 100,000 jobs, which must be achieved by the staterun corporation by 2014. Clark’s perennial top exporter Nanox Philippines, Inc. remains at the top of the CDC’s list with exports of over US$791M in custom-designed products such as Liquid Crystal Display (LCD) panels, LCD modules, and monochrome LCDs. Next is Phoenix Semiconductor Philippines Corp. (PSPC), a company established only in January 2010 by one of Korea’s leading providers of semiconductor packaging. PSPC exported more than US$566M in electronic parts with Double Data Rate 3 (DDR3), NAND flash cards, and solid-state disk (SSD), as well as memory modules for portable computers (PCs) and notebooks. (MAB 01/19)

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2. Power discount benefits 514 locators

Vol. 16, No. 044

he Philippine Economic Zone Authority (PEZA) has presented to the Cabinet economic cluster P1.2B in power assistance to some 514 export-oriented firms to boost their global competitiveness. PEZA Director-General Lilia B. De Lima said the proposed extension of the Ecozone Rate Program (ERP), which grants discounted power rate to ecozone locators, would go through Malacañang and the Energy Regulatory Commission (ERC) for approval. Under the previous power assistance program, which expired on 25 December 2011, PEZA-registered firms enjoyed a P-1 discount per kilowatt-hour in their power consumption. This time, however, they are planning for a 25-centavo price difference depending on a “time of use” formula that is being firmed up.

MSME/OTOP News DTI-11recognizes outstanding MSMEs

he Department of Trade and Industry (DTI)-Region 11 recognized the outstanding micro, small and medium enterprises (MSMEs) in the region for 2011 through the SME Star Program, a competency initiative that supports and recognizes SMEs that persevere to improve their growth both in the domestic and international markets. DTI-11 Regional Director Marizon S. Loreto said the SME Star Program provides opportunities for sustainable growth. Under the program, businesses undergo capability

The special rate for ecozones was agreed between Manila Electric Company (MERALCO) and National Power Corp. (Napocor) and assigned to Power Sector Assets and Liabilities Management Corp. (PSALM) following the company’s privatization. The discounted rate will lapse on 25 December 2012. It was meant to help businesses wade through high cost of operations, especially for those in the power-intensive sectors. De Lima has pressed for the extension of the discounted power rate to ecozone locators. If the ERP will not be extended, she said, it will definitely increase electricity cost for ecozone investors. “High power rates are driving away potential investors because electricity costs account for 40-50% of exporters’ total operating expenses,” she said.

building activities to hone their skills in marketing, production, and financial management as well as their managerial and technical capabilities. The program features SME Star Awards that are grouped into two categories: the SME Rising Star (city/provincial level) and the SME Star Elite (regional level). “..., we look forward to a bright future for SMEs in Southern Mindanao,” Loreto said.

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Business Alert Bicol pili to be registered with IPOPHL

13 February 2012 5

he Bicol pili nut will soon be included in the list of Philippine food products registered with the Intellectual Property Office of the Philippines (IPOPHL), the Department of Trade and Industry (DTI)-Region 5 announced.

wines in the Champagne province of France.

The registration of “Bicol Pili” is part of the agency’s developmental approach in the use of industrial property for the total development of the pili nut industry in the region.

As a valuable marketing tool in today’s global economy, the Department’s move toward GI for “Bicol Pili” aims to promote and protect pili nut in the local and international markets.

The IPOPHL Geographical Indication (GI) identifies a product that originates from a given territory or a region. It serves as a sign used on goods that have a specific geographical origin and possess qualities or a reputation that are due to that place. A GI consists of the name of the goods origin. An instance is the famous Champagne, the wine product used exclusively for French

Consumer News The case of shortchanging

he Department of Trade and Industry-Bureau of Trade Regulation and Consumer Protection’s (DTI-BTRCP) Consumer Welfare Division urges consumers to keep their coins in circulation to help prevent short-changing by commercial establishments. Philippine Amalgamated Supermarkets Association (Pagasa) President Steven T. Cua said they have had talks with the Bangko Sentral ng Pilipinas (BSP) to resolve the shortage or misdistribution of coins.

GI is a powerful intellectual and economic asset not only of the region but also of the nation as it leverages products to compete globally.

This dynamic instrument leads to wider market reach including trade negotiations between and among economies. In a related news, the DTI, together with IPOPHL, conducted a forum on GI for “Bicol Pili” recently to give stakeholders and entrepreneurs vital inputs in the promotion, development, and protection of Bicol pili.

They plan to ask assistance in getting not only the coins, but also P20 bills back in circulation, Cua said. He reported that Pagasa members are taking measures to provide customers the exact change themselves. They encourage their employees to exchange their own coins and smaller bills or to collect loose change from gas stations and even in churches. He also said that BSP should raise consumer awareness regarding the value of coins as many seem to find them useless.

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Policy Benefits to outweigh loss from duty-free EO

Vol. 16, No. 046

he benefits of the proposed duty-free importation of capital equipment for the Board of Investments (BOI)-registered firms will outweigh any potential revenue loss arising from the measure, Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said. “There may be potential loss of revenues from zero duty but on the other hand, it will make our industries more competitive, which means there could be bigger economic growth. The bigger economic growth will lead to more tax revenues as well,” Domingo said. The proposed Executive Order (EO), which the government has approved in principle, will be an improvement on previous Executive issuances as it would tighten the controls on the kind of capital equipment covered by duty-free importation.

Feature Naga City formalizes shift to eco-friendly vehicles

he Naga City government has officially declared that air pollution-causing local public transport will eventually be phased out as ecologically-friendly vehicles will be promoted following the City Ordinance No. 2011-065, which allows e-trikes or electrically powered tricycles in the city. Once fully operational, this would pave the way for the fielding of 1,600 e-trikes within the city. The ordinance also stipulates the establishment of charging stations in strategic public places as such vehicles will be using electric charges and not the conventional petroleum like gasoline. The legislation aims to provide the community with an alternative means of transport that will promote

The absence of the measure would mean disadvantage to domestic industries in the country since they are competing with products by manufacturers abroad who are not paying duties on capital equipment. “We give them [manufacturers] the same conditions so they can compete with foreign manufacturers,” Domingo said. Domingo signed the recommendations on the proposed EO that would be forwarded to the Office of the President, which reflected the President’s input on how to strengthen it. He said the improved version from the prior versions of the EO on capital equipment took some time because they wanted to do it right.

a less polluted community and provide the drivers opportunity for higher income, Naga City Mayor John G. Bongat said. The city government received 10 units of e-bikes recently from a climate change adaptation program of the United Nations (UN), making Naga the first local government unit (LGU) to be a recipient of the donation in the country, free of cost and for use by selected LGU departments in the delivery of basic services to its constituents. In 2011, Naga City partnered with private firm Enzolutions, Inc. for the deployment of a fleet of e-vehicles to combat the worsening air pollution as 70% of some 3,000 passenger jeeps and tricycles are smoke belchers and are not following the Clean Air Act of 1999.

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13 February 2012 7

Under the partnership, 50 units of e-trikes will immediately be available in the city.

the city government will endorse drivers who will operate the units under a lease scheme to be entered with Enzolutions.

Bongat said that under the electric passenger vehicle program,

ASEAN Watch 1. Aquino shares optimism of HSBC study on PHL economy

resident Benigno S. Aquino III is positive that the Philippines would gain much more prominence in the coming decades to become the world’s 16th largest economy by 2050 as shown by a recent Hong Kong and Shanghai Banking Corporation (HSBC) study. In the report entitled, “The World by 2050,” HSBC predicted that the Philippines would leapfrog to become the world’s 16th largest economy helped by demographics, rising education standards, and multi-decade growth. The country could conveniently achieve this feat because the skill, perseverance, and dedication of the Filipino to his work is world-class, said Aquino.

2. ASEAN touted as single destination for tourist travel

ndonesia formally introduced the Association of Southeast Asian Nations (ASEAN) as a single tourist destination during the region’s tourism forum in Manado of North Sulawesi province. The campaign was launched in Indonesia and would be fully implemented after problems involving issuing common visas to non-ASEAN residents and issuing free visas to ASEAN residents were settled, Tourism and Creative Economy Minister Mari Elka Pangestu of Indonesia said.

STATWATCH US$80.2B Exports target by the Department of Trade and Industry (DTI) this year US$2.3B Exports revenue generated by the Clark Development Corporation (CDC) in 2011 US$1.6B Exports revenue generated by the CDC in 2010 P1.2B

Government’s power assistance provided for Philippine Economic Zone Authority (PEZA) locators

514

PEZA locators benefitting from the government’s power assistance

currently finalizing the introduction of the visas. At the moment, Pangestu said they are still waiting for approval from Cambodia and Myanmar. The heads of ASEAN members agreed in principle to the introduction of common visas for non-ASEAN visitors and free visas for the residents of ASEAN member-nations. ASEAN composition    

Pangestu said the governments of ASEAN member-nations were



Brunei Cambodia Indonesia Laos Malaysia

    

Myanmar Philippines Singapore Thailand Viet Nam

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Vol. 16, No. 048

DTI Direct* Call Center Report SUMMARY OF CALLS Month-on-month CALL TYPE

Jan

Feb

Business Name

2,776

2,494 2,855

Consumer Welfare

Mar

Apr

May

Jun

July

Aug

Sept

1,980

2,229

2,054

2,020

2,250

2,398

Oct

Nov

Dec

2,017 1,874 1,458

Jan’12 3,665

697

546

724

532

732

715

637

741

812

712

670

966

742

Exports

Investments

MSMEs

Others

768

675

852

656

1,040

908

891

985

1,186

981 1,194

941

1,157

TOTAL

4,253

3,734 4,459

3,189

4,029

3,712

3,582

4,015

4,434

3,734 3,766 3,385

5,580

CUMULATIVE CALL TYPE Business Name

January 2012

% vs. Total

Jan 2012

Dec 2011

% Increase/ Decrease

3,665

65.68

3,665

1,458

151.37

742

13.3

742

966

-23.19

Exports

0.07

-20

Investments

0.22

-20

Others

1,157

20.73

1,157

941

22.95

TOTAL

5,580

3,385

Consumer Welfare

MSMEs

CALL RESOLUTION STATUS January 2012 Endorsed - 87, 2%

Resolved 5,493 98%

*The DTI Direct Call Center was established in November 2006 as part of the Department’s thrust to improve and simplify the delivery of its frontline services.

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13 February 2012 9

(A synopsis of selected book acquisitions at the DTI-TIIC library)

Publisher:

High Rise Rich Ventures, Inc.

Call Number: 45 608/00.07/HIG/2012 The book is a compilation of various directories related to construction industry associations; realty and developers; and contractors and suppliers. It provides a listing of companies with comprehensive contact details as well as an index of companies arranged by products/ services.

MAB

Author:

D. Y. Caparas

Call Number: 45 608/00.07/CAP/ 2012 The book lists foreign countries’ embassies, consulates, diplomatic offices, and international organizations in the Philippines with their contact details. It contains a directory of the Department of Foreign Affairs (DFA) consular offices throughout the country as well as Philippine embassies, consulates and consulates general abroad. It also provides steps on how to apply for a Philippine passport.

Philippine Postal Permit No. PM-04-08

What’s New?

Legend:

Title: 2012 Diplomatic and Consular Directory

Title: Builders Directory Philippines 2012

- Manila Bulletin

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