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26 March 2012 1
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26 March 2012 Vol. 16, No. 07
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 PHL is key investment site in the region
Business Alert BIR to set up Internet cafe-like facilities
Inside DTI 1. IPOPHL to launch patent research network 2. DTI prods attachés on exports, investments targets
Consumer News 1. DTI watches building materials’ prices, supplies 2. CALABARZON consumer mediation officers fine-tune process, skills
Good News, Philippines! 1. Electronics investments hit record US$2.5B 2. BOI investments up 15% in January
ASEAN Watch 1. PHL urges ASEAN to relax air policies to boost regional economy 2. Group pushes for global recognition of Asian coffee blend
MSME/OTOP News 1. Rodeo Masbateño Festival promotes OTOP 2. Policy promotes investments in Mindanao
Statwatch What’s New?
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Focus PHL is key investment site in the region
Vol. 16, No. 072
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he P1.9-T collective earnings of the Philippine Economic Zone Authority (PEZA) from 1995 up to 2011 and the favorable outlook of the Japan External Trade Organization (JETRO) showed that the Philippines is the “primary investment destination” in the region, President Benigno S. Aquino III said. He said 22%, or P413B of the total PEZA earnings, was earned by PEZA in the last 18 months since he assumed office in 2010.
Inside DTI 1. IPOPHL to launch patent research network
“Among the results, when it comes to the availability and cost of land to set up their factories, the least problematic is the Philippines among our neighboring countries. When it comes to retention of employees, we have the highest rating. When it comes to the quantity and quality of labor that can be hired, again, we have the least problems in our country,” he said.
Moreover, Aquino reported that JETRO had conducted a survey on the problems encountered by countries in the region in doing
The report said the Philippines is the least problematic of our neighboring competitive countries and therefore there is an assurance that we are looked upon as the primary investment destination. (PNA 2/29)
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IPOPHL said the network is expected to strengthen the capacity of the local industry to access patent information and make use of the patent system.
he Intellectual Property Office of the Philippines (IPOPHL) has launched the first patent research network in the country that can be accessed in 33 universities nationwide. The so-called Innovation and Technology Support Offices (ITSO), which are also considered as patent libraries, will contain information on global patents.
2. DTI prods attachés on exports, investments targets
business with each other and found the Philippines as having the least.
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he Department of Trade and Industry (DTI) has rallied its trade attachés to underpin the attainment of the P1.1-T investments target and the US$120-B exports goal by 2016. “The big industries are mostly located in the big cities. We need a component that will allow us to achieve the inclusive growth trust of the government. The means for that is the development of small and medium enterprises (SMEs), in particular the tourism and agribusiness enterprises,” DTI Secretary Gregory L. Domingo
A memorandum of agreement (MOA) was recently signed between IPOPHL Director General Ricardo R. Blancaflor and National Competitiveness Council Private Sector Co-chairman Guillermo Luz for the establishment of the patent research network.
said during the Foreign Trade Service Corps (FTSC) Annual Consultative Conference. During the occasion, Domingo urged the Department’s global marketing teams to renew focus on key priority sectors to support the government’s trust of inclusive economic growth. The DTI’s Trade and Investment Promotion Group (TIPG) created the Global Marketing Intelligence System (GMIS) to enhance the government’s exports and investments promotion to achieve the set targets. (MAB 02/28)
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Good News, Philippines! 1. Electronics investments hit record US$2.5B
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lectronics investments in 2011 hit a record level of US$2.5B driven by the 178 companies that registered their new and expansion projects in the country with direct jobs generation of 35,358, the Semiconductor and Electronics Industry of the Philippines, Inc. (SEIPI) reported.
investments of Canon and Murata of Japan. The Philippine Economic Zone Authority (PEZA) has already registered Canon Business Machine (Philippines) Inc.’s printer manufacturing facility with an investment of P20.6B.The Philippine Manufacturing Co. of Murata, Inc. is investing P2.9B.
SEIPI President Ernesto B. Santiago said the 2011 investments hit only US$570M during the first 10 months of the year but the bulk of US$1.9B were registered during its last two months last year.
The bulk of the investments came from the 147 companies which are undertaking expansion programs or putting up new export projects.
“Given this, total electronics investments for 2011 amounts to US$2.5B – the highest that was recorded in our industry’s history and the 8th time we have hit an investments figure of over US$1B in one given year,” Santiago said. The next highest investment year for SEIPI was registered in 1995 with US$2.2-B inflow. Of the 178 companies, Santiago said 31 are new entrants or new investors. These new entrants have combined investments of US$721M or 30% of total inflows. Santiago further said the new projects were driven by the huge
2. BOI investments up 15% in January
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otal investment commitments registered with the Board of Investments (BOI) for January this year grew 14.6% to P3.7B over P3.3B recorded in the same period last year, showing increased investor confidence at the start of the year. The 18 projects approved are expected to generate 3,026 jobs. Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said the investments showed dispersion of capital in the
These companies have combined investments of US$1.7B or 70% of total inflow. These projects are powered by the expansion programs of SEIPI members such as Amkor Technology Philippines Inc. with P12.9B; TI Philippines Inc., P12.7B; American Power Conversion Corp.; P6.4B; Ibiden Philippines Inc.; P3.8B; Nidec Philippines Corp., P3.4B; SunpowerPhilippines Manufacturing Ltd., P3.3B; Analog Devices Gen. Trias Inc., P3.2B; and Samsung Electro-Mechanics Philippines Corp., P2.2B. “Those investments are PEZA locators which only show that PEZA provides a conducive environment for electronics business to grow,” Santiago said. (MAB 02/22)
countryside and among key sectors, signaling that economic activities in the country are becoming more widespread. “We see strategic investments specifically in the sectors of tourism, energy, and agriculture – priority areas that the government has identified to boost income and create more jobs in the rural areas,” Domingo said. Region 3 accounted for 38.2% of total investments, generating P1.4B;
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Vol. 16, No. 074
Region 10, 18.8%; and Region 7, 17.4%, as the regions that drew a large portion of the approved investments. 92% of investment commitments came from domestic investors. Among foreign investors, Japan ranked highest with P190.4-M investments, following the gradual strengthening of its economy and the mid-term impact of brisk trade under the Japan-Philippines Economic Partnership Agreement (JPEPA).
MSME/OTOP News 1. Rodeo Masbateño Festival promotes OTOP
2. Policy promotes investments in Mindanao
Business Alert BIR to set up Internet cafe-like facilities
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he 19th Rodeo Masbateño Festival will feature livestock shows, animal health seminars, and agro-industrial fair that support the province’s One Town, One Product (OTOP) industry.
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Among the top investors for the month next to Japan are China, Australia, Malaysia, and Russia. Leading investment projects approved were on real estate, P1.7B, followed by accommodation and food service, P875M; manufacturing, P496.4M; electricity, gas, steam, and air conditioning supply, P340.3M; and agriculture, P228M. Manufacturing investments are led by motor vehicles at P368.4M. (MAB 02/18)
The festival is seen as an avenue to showcase the province’s unique and world-class OTOP products on 09-15 April 2012 aside from the colorful parade of horse riders, rodeo competitions, and country carnival.
he Mindanao Development Authority (MinDa) and the Philippine Chamber of Commerce and Industry (PCCI) signed a Memorandum of Agreement (MOA) formulating the Mindanao Business Policy Agenda to promote investments in the region.
develop economic competitiveness of Mindanao on energy, mineral development, agriculture and fishery, transport and logistics, human resource and development, micro, small, and medium enterprises (MSMEs), tourism, and peace and order.
The policy seeks to address immediate and recurring issues of the business sector in the island-region to enhance its competitiveness and ensure a more conducive environment for business which will
The policy agenda is in collaboration with U.S. Agency of International Development (USAID) through the Growth with Equity in Mindanao (GEM) Program.
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o ease the taxpayers’ transactions with the agency, the Bureau of Internal Revenue (BIR) was to set up an Internet cafélike facility in roughly 30 revenue district offices in Metro Manila last month. The so-called eLounge, which the taxpayers can use to settle their payments with the agency, aims to
ease the long queues at the different revenue district offices especially during tax filing season every April. With its facility at Pasig recently opened, the BIR hopes to put an eLounge facility in all of its revenue district offices nationwide by June. The move is in response to requests from taxpayers who do not have
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computers access to transact with the BIR electronically, BIR Commissioner Kim J. Henares said. They aim to improve service rendered to the taxpayers through the utilization of information and communications technology (ICT) and to encourage taxpayers to take a more serious look at the BIR eServices and avail them to speed up their transactions with the agency. “Through the eLounge, the Elecronic Filing and Payment System (EFPS)
Consumer News 1. DTI watches building materials’ prices, supplies
2. CALABARZON consumer mediation officers fine-tune process, skills
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n time for the construction activities peak during the summer season, the Department of Trade and Industry (DTI) urges manufacturers and distributors of building materials to inquire on the price and supply situation of their products.
will be easily accessible to taxpayers who want to transact business online. They can file returns electronically and pay their taxes through the Internet banking facility,” Henares said. With at least three desktop computer units in every eLounge, the facility will operate like an Internet café but free of charge. Taxpayers can also use the eLounge to access information related to tax compliance such as registration, filing of returns, and payment of taxes. (TPS 02/25)
In the 13-17 February 2012 market monitoring conducted by the DTI, most of the prices of construction materials remained unchanged from a month ago.
“We will set a meeting with them so we can get the needed information on the supply side and if there will be The DTI-Bureau of Trade Regulation spikes in prices,” DTI and Consumer Protection (BTRCP) is Undersecretary for Consumer Welfare and Business Regulation set to circulate the notices to the construction materials manufacturers, Group (CWBRG) Zenaida C. Maglaya said. distributors, and retailers. Critical products that they need to monitor include cement, steel bars, and galvanized iron sheets.
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he mediation officers of the regional and provincial offices of the Department of Trade and Industry (DTI) in Calabarzon finetuned their mediation processes and skills by taking a refresher on the Department Administrative Order (DAO) 7:2006. Mediation is a first-step intervention by the DTI to resolve, achieve, and oversee agreements on complaints by consumers on defective or deceitful products and services. DAO 7:2006 deals on simplified and uniform rules of procedure
for administrative cases filed with DTI for violations of the Consumer Act of the Philippines a law that safeguards and protects consumers from hazards to health and safety, against deceptive, unfair and unconscionable sales acts and practices, and other trade and industry laws. DTI-4A Counseling & Litigation Division Chief Marimel D. Porciuncula elaborated pointers and best practices to employ in a mediation process in a simulation.
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ASEAN Watch 1. PHL urges ASEAN to relax air policies to boost regional economy
Vol. 16, No. 076
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he Philippines has urged Southeast Asian neighbors to relax their air rights policies to encourage air travel and boost the region’s economy. Department of Transportation and Communications (DOTC) Secretary Manuel A. Roxas II reiterated the Aquino administration’s support for liberalization and deregulation to exploit the growing air passenger traffic “One of DOTC’s missions is to ensure that passengers are safe as they move to and from the Philippines,” Roxas said.
STATWATCH P1.9-T Investments registered with the Philippine Economic Zone Authority (PEZA) from 1995 up to 2011
P1.1-T Investments target by the Department of Trade and Industry (DTI) by 2016
P413B PEZA-registered
He said the government supports the goal of the Asia-Pacific Economic Cooperation (APEC) Tourism Charter of 2000, which seeks free and open trade in the Asia Pacific region through the provision of convenient, safe, and reliable transportation of goods and people.
investments since President Benigno S. Aquino assumed office
The APEC Tourism Charter of 2000 is a key group that promotes the efficient regional economic integration through policy alignment and structural reforms.
US$2.5B Electronics investments in the Philippines in 2011
In 2010, the Philippine government enacted a “pocket open skies” air rights regime that opened up all airports outside the alreadycongested Ninoy Aquino International Airport (NAIA) in Manila.
registered with the Board of Investments (BOI) in January 2012 vs. P3.3B in January 2011
The 10-member Association of Southeast Asian Nations (ASEAN) is also working on a multilateral deal that would significantly liberalize air rights in the region. (TPS 02/28)
US$ 120B DTI’s exports target by 2016
P3.7B Investments
35,358 Jobs generated by electronics investments in PHL in 2011
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2. Group pushes for global recognition of Asian coffee blend
ASEAN Coffee Federation members Indonesia
Philippines
Laos
Singapore
Malaysia
Thailand
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he Association of Southeast Asian Nations (ASEAN) Coffee Federation (ACF) stresses the difference of drinking Asian coffee to promote an Asian coffee blend all over the world. “The idea is to always push for the promotion of Asian coffee all over the world,” Philippine Coffee Board Inc. President Pacita U. Juan said. Juan said the group sees a strong union of coffee-producing countries
in the region which would result in making Asia a major source of the crop. In the Philippines, coffee farmers are taught to pick only red cherries which indicate that the beans are ripe for harvest. Another aim of the federation is to work like a support group among coffee players in the region wherein members can help each other in terms of market and sharing of expertise. (TPS 02/27)
Title : Trade and Development Report 2011
What’s New? (A synopsis of selected book acquisitions at the DTI-TIIC library)
Title: Technology and Innovation Report 2011: Powering Development with Renewable Energy Technologies
Publisher: UNCTAD
Philippine Postal Permit No. PM-04-08
Call Number : 00 000/03/ UNCTAD/2011
Publisher : UNCTAD
This report discusses the current trends and issues in the world economy, namely fiscal aspects of the financial crisis and its impact on public debt; fiscal space, debt sustainability, and economic growth; financial re-regulation and restructuring; financialized commodity markets (recent developments and policy issues); and the global monetary order and international trading system.
Call Number : SITC 3/02 000/ UNCTAD/2011 The report analyzes the important role of technology and innovation policies in expanding the application and wider acceptance of renewable energy (RE) technologies, particularly in the context of developing countries. It identifies key capacity issues and proposes concrete recommendations for the wider use of RE technologies to promote sustainable development and poverty reduction.
Legend: MAB - Manila Bulletin PNA - Philippine News Agency TPS - The Philppine Star
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. NeneriaCirculation: Myrna V. delos Reyes To subscribe, email: publications@dti.gov.ph