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June 18, 2012 1
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June 18, 2012 Vol. 16, No. 13
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 Top firms to invest P2T in next 5 years Inside DTI 1. Aklan trade fair earns P4.6M 2. ‘Diskwento Caravan’ goes to the provinces Good News, Philippines! 1. Business optimism continues to pick up 2. 30 BPO firms post over P1-B revenues 3. UK firms to invest in PPP projects
Consumer News 1. ASEAN website for consumers launched 2. Mediation to cover consumer complaints Features DTI helps MSMEs upgrade their business ASEAN Watch 1. PHL, Malaysia hold business partnership forum 2. WB urges PHL to capitalize on East Asia
MSME/OTOP News Statwatch 1. APEC to improve SME opportunities 2. SMEs urged to take “cloud” DTI Direct 3. CBA-CPLA undergo business training What’s New? Business Alert 1. PFA warns of bogus franchises 2. Automated export paper processing starts June 01
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Focus Top firms to invest P2T in next 5 years
Vol. 16, No. 132
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resident Benigno S. Aquino III said the country’s major corporations had committed to invest over P2T over the next five years as his administration’s governance has been gaining concrete results for the economy. “The business sector is making a big bet on the economy and on our people. In so doing, they are creating opportunities for our countrymen,” Aquino said in a speech before various clubs during the Business Forum of Joint Philippine Alumni Clubs in Makati City recently. The Philippine Economic Zone Authority (PEZA) has generated P2.03T in cumulative investments for the past 17 years, notably of which about a fourth of these cumulative investments, or P465B, were registered during the past 22 months of the Aquino administration. Aquino said he was bent on continuing the reforms and that he was happy the Philippines was starting to achieve its potentials. “You’ve seen the countless times our stock market has breached heights that were previously thought of as impossible. You’ve heard it from international groups and organizations, and from the credit rating agencies that have already given us six positive ratings actions to the study by the JETRO [Japan
Inside DTI 1. Aklan trade fair earns P4.6M
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he Aklan Piña and Fiber Festival organized by the Department of Trade and Industry (DTI) has generated P4.6M in sales this year. DTI-Aklan Provincial Director Diosdado P. Cadena Jr. said the festival is being considered as a model of public and private partnership.
Now on its 13th year, the festival was held in cooperation with the Fiber
External Trade Organization] Survey which named the Philippines as the number one ideal destination of businessmen in Asia, whether in the manufacturing or service sectors,” he said. He also bared two major shipbuilding companies and two steel manufacturing that would come into the country. “We’re the fourth largest shipbuilding country already. There’s a lot of movement of other businesses that are coming in or expanding their operations here,” he said. He said there was no room for complacency and “we’re working even harder to make sure that the confidence of the world — and indeed of our countrymen — does not waver, and continues to strengthen.” Aquino said aside from attracting investors, the government could invest in social services and infrastructure projects more because corruption was beginning to be curbed. “We’ve fixed the way we spend our money—making sure we get the best results at the best price while adhering to the principles of transparency and accountability. And already, the results have been tremendous,” he said. (TPS 05/18)
Top sellers Sector
Value (in P million) Food processing 2.5 Indigenous fibers and crafts 1.6 Furniture and furnishing 0.4 Gifts and housewares 0.1
Industry Development Authority (FIDA), Aklan Piña Manufacturers
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June 18, 2012 3
and Traders Association Incorporated, Hugod Aklanon Producers Association Inc., and the Philippine Chamber of Commerce and Industry (PCCI).
2. ‘Diskwento Caravan’ goes to the provinces
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ollowing the orders of President Benigno S. Aquino III, the Department of Trade and Industry (DTI) is expanding its “Diskwento Caravan” in more provinces to bring cheaper goods, including school supplies, to more Filipinos. More caravans were already held in Bataan and Rizal (Cainta and Antipolo) and in the cities of Tacloban, San Fernando, Catbalogan, Sorsogon, Iloilo, Malaybalay, Butuan, Roxas, Koronadal, Capiz, Tarlac, to ease the people’s burden amid high prices of oil and other commodities.
Good News, Philippines! 1. Business optimism continues to pick up
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or the fourth straight quarter, local businessmen remained optimistic of economic prospects amid growth concerns in the United States (US) and the sovereign debt crisis in Europe, a Bangko Sentral ng Pilipinas (BSP) survey showed. BSP’s Business Expectation Survey (BES) for the second quarter of 2012 revealed that the business confidence index (BCI) improved to 44.5% in the second quarter of the year from 40.5% in the first quarter. BSP Assistant Governor Cyd Tuano-Amador said this was the fourth consecutive quarter that the BCI improved. The confidence index is computed as the percentage of firms that answered in the affirmative less the percentage of firms that answered in the negative with respect to their views on a given indicator. BSP-Department of Economic Statistics (DES) Acting Deputy
“The objective of the fiber festival is to showcase the premium quality products of Aklan such as piña, abaca, and raffia,” said Cadena.
He said the DTI has increased the day-long caravans from nine last year to 60 in the last few weeks before the start of classes this month. In the Diskwento Caravan, DTI Secretary Gregory L. Domingo said the DTI has coordinated with manufacturers to sell basic and prime commodities at “factory prices” to consumers. “The discounts range from 5% to 75% depending on the goods. We offer huge discounts in medicines,” he said.
*BES results Year
Quarter
BCI*
2010 2011
4Q 1Q 2Q 3Q 4Q 1Q 2Q
50.6% 47.5% 31.8% 34.1% 38.7% 40.5% 44.5%
2012
*Business Confidence Index
Director Teresita B. Deveza attributed the businessmen’s continued optimism to the increase in orders and new contracts leading to higher volume of production as well as expansion in businesses and new product lines. Deveza also cited higher government spending, seasonal uptick in demand during the summer, enrollment, harvest seasons, and favorable macroeconomic fundamentals. (TPS 05/25)
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2. 30 BPO firms post over P1-B revenues
Vol. 16, No. 134
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t least 30 business process outsourcing (BPO) companies in the Philippines are generating annual revenues ranging from P1B-P17B, House Deputy Majority Leader Roman T. Romulo said. “The 30 firms are the faces of our BPO industry. They each directly employ anywhere from 5,000-25,000 mostly college-educated, fluent English-speaking and tech-savvy Filipino professionals,” Romulo said. Romulo is confident that the BPO industry would be able to achieve
its target to increase both earnings and jobs by 20% every year until 2016. The industry is projected to produce USD27B in revenues and fully engage some 1.3M Filipino workers by 2016, based on a recently upgraded roadmap. This year, the sector hopes to produce 126,000 new jobs and generate USD2B in extra earnings, according to the Business Processing Association of the Philippines (BPA/P). The industry posted USD11B in revenues on a labor force of 638,000 in 2011. (TPS 05/20)
30 largest BPO firms in 2010 BPO firm Accenture Inc. Convergys Phils. Services Corp. TeleTech Customer Care Management Phils. Inc. JPMorgan Chase Bank N.A.-Philippine Global Service Center Stream International Global Services Phils. Inc. Aegis PeopleSupport Inc. Sykes Asia Inc. Sitel Phils. Corp. Telephilippines Inc. Telus International Phils. Inc. Deutsche Knowledge Services Pte. Ltd. HSBC Electronic Data Processing Phils. Inc. IBM Daksh Business Process Services Phils. Inc. IBM Business Services Inc. Shell Shared Services Asia B.V. SPi CRM Inc. APAC Customer Services Inc. 24/7 Customer Phils. Inc. Genpact Services LLC IBM Solutions Delivery Inc. SPI Technologies Inc. Lexmark Research & Development Corp. ePLDT Inc. Kgb Phils. Inc. Advanced Contact Solutions Inc. Chartis Technology & Operations Management Corp. Phils. ePerformax Contact Centers Corp. Synnex-Concentrix Corp.-Philippine Branch Citigroup Business Process Solutions Pte. Ltd. Cyber City Teleservices Inc.
Gross revenues (in P billion) 17.4 11.9 9.4 8.9 6.9 6.6 6.2 5.9 5.6 5.2 5.2 4.7 4.2 4.0 3.7 2.9 2.6 2.4 2.3 2.2 2.0 1.9 1.8 1.8 1.7 1.4 1.4 1.2 1.2 1.1
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3. UK firms to invest in PPP projects
June 18, 2012 5
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isiting Lord Mayor of London Alderman David Wootton said three British companies engaged in mass transport systems are eyeing investments in the Philippines particularly in major infrastructure projects such as railways, airports, and seaports across the country. Wooton identified the three business firms as Balfour Beatty, Halcrow, and SKM-Colin Buchanan, which are interested in joining the public-private partnership (PPP) program of President Benigno S. Aquino III’s administration. Accompanied by a business delegation to explore investments opportunities in the Philippines, the British official met with Aquino and key Cabinet officials including Departments of Trade and Industry (DTI) Secretary Gregory L. Domingo, Foreign Affairs (DFA)
MSME/OTOP News 1. APEC to improve SME opportunities
2. SMEs urged to take “cloud”
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he Asia Pacific Economic Cooperation (APEC) is working on improving business opportunities for small and medium enterprises (SMEs) to ensure the region’s economic stability.
Secretary Albert F. del Rosario, Finance (DOF) Secretary Cesar V. Purisima, and Transportation and Communications (DOTC) Secretary Manuel A. Roxas II. Potential areas for investments in the Philippines
Power plant Renewable-energy (RE) sources such as solar power and biofuels Sewage systems Waste disposal Water management
Britain was the largest investor in the Philippines in the last decade (1999-2009) with a combined net foreign direct and net portfolio investments worth USD9.7B in portfolio investments and USD930M in foreign direct investments (FDIs). (BMI 05/22)
of SMEs, play an outsized role in buoying the region’s economies,” APEC SME Working Group Chairman Dr. Robert Sun-Quae Lai said.
Policymakers and business representatives gathered at the recent APEC-SME meeting in Brunei Darussalam to drive future action plans in nurturing the sector.
Industry-specific companion measures topped the agenda, which included voluntary codes of business ethics for the medical device sector and a green workshop for sustainable, environmentallyresponsible business initiatives.
“SMEs are emerging force of productivity and business innovation in the APEC region. APEC member efforts to promote smart growth models, focusing on innovation and enhanced supply chain connectivity are among APEC’s 2012 priorities and in the case
APEC members further pledged to lift SME management capabilities, financing access and businessfriendly market policies, and expressed their commitment to improve SME cooperation.
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mall and medium enterprises (SMEs) were urged to take advantage of cloud computing to cut costs associated with traditional information technology (IT) infrastructure.
“An enterprise has an opportunity to have the best IT in the world by investing in the best IT in the world, but small businesses have no chance [to invest on these],” Microsoft Philippines, Inc. General Manager
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3. CBA-CPLA undergo business training
Vol. 16, No. 136
John Bessey said at the Asia CEO Forum recently.
to handle orders could cost less than maintaining a website.
Bessey said investments like document repositories and unified communication need to tap the cloud technology. The use of software
Bessey cited figures from International Data Corp. that said 70% of firm’s IT budget are allocated to maintain IT infrastructure.
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iming to be equipped with business skills to improve their lives, members of Cordillera Bodong AdministrationCordillera People’s Liberation Army (CBA-CPLA) have undergone Entrepreneurship Development Training recently. The project led by the Office of the Presidential Adviser on the Peace Process (OPAPP), in cooperation
Business Alert 1. PFA warns of bogus franchises
2. Automated export paper processing starts June 01
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with Department of Trade and Industry-Cordillera Administrative Region (DTI-CAR), held trainings in Abra, Mt. Province, Apayao, Kalinga, and Ifugao. The trainings include business management tools such as business planning, situation analysis, manpower distribution, and marketing.
he Philippine Franchise Association (PFA), the pioneer and largest franchise association in the country, has warned against the proliferation of bogus franchises and encouraged aspiring entrepreneurs to be properly informed.
PFA is a voluntary, self-regulating governing body for franchising in the Philippines. For its continuing educational campaign, Orbeta said the association has been conducting franchising-related seminars regularly every last Friday of the month.
PFA members are bound by the Fair Franchising Standards (FFS), the PFA Code of Ethics, which ensures fair set of provisions in the conduct of sale of their franchises, guaranteeing transparency in their business dealings, said PFA President Yvette Pardo-Orbeta.
Orbeta was optimistic that the local franchising sector will continue to be a main driver for national economic growth, citing record figures achieved by Franchise Asia 2011. (MAB 05/23)
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he Bureau of Customs (BOC) has automated its export documents processing effective June 01 this year. Under the implementation of the Automated Export Documentation System (AEDS), only customs brokers and exporters duly registered with the BOC’s Client Profile Registry System (CPRS) will be allowed to submit export declarations.
Forming a part in the Electronic to Mobile (E2M) Program, BOC’s automation covers only the processing of import papers, BOC Commissioner Ruffy Biazon said. The BOC earlier issued Customs Memorandum Order (CMO) No. 54, S.2010, which provides the implementing rules of AEDS, and CMO No. 49, S.2010, which implements the One-Stop Export Declaration Center.
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Consumer News 1. ASEAN website for consumers launched
June 18, 2012 7
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he Association of Southeast Asian Nations (ASEAN) Committee on Consumer Protection (ACCP) has launched a comprehensive website on cross border consumer redress for the ASEAN region.
Accessible at www.aseanconsumer.org, the ASEAN website was presented during the recent ACCP 5th Meeting in Bali, Indonesia. The website serves as the main reference point for matters pertaining to consumer redress, including: • information on basic cross border redress mechanism (handling complaints); • information on focal point for consumer redress in each ASEAN Member State (AMS) • information on online/hotline access to cross border redress mechanism (handling complaints); and • information related to ACCP.
2. Mediation to cover consumer complaints
The website also serves as a notification and information exchange mechanism on unsafe products in AMS covering all consumer products with the exceptions of foodstuffs, pharmaceuticals, health supplements, traditional medicines, cosmetics products, and medical equipment. Indonesia, which chairs the Working Group on Rapid Alert System and Information Exchange, completed the first compilation of recalled/banned products in ASEAN for the period November 01, 2011 to April 30, 2012 as posted on the ACCP website. The Philippines, through the Department of Trade and Industry (DTI), is the ACCP chair for 2012 to 2013.
s part of the Department of Trade and Industry’s (DTI) streamlining of its procedures to provide faster and improved quality service to Filipino consumers, the DTI held a mediation seminar last month.
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Business Regulation Group (CWBRG) Zenaida C. Maglaya said.
Some 20 mediators from Ilocos, Cagayan Valley, Bicol, Eastern Visayas, Zamboanga Peninsula, Caraga, Cordillera Administrative Region (CAR), and National Capital Region (NCR) joined the Alternative Dispute Resolution TrainingWorkshop on how to streamline proceedings, DTI Undersecretary for Consumer Welfare and
The DTI takes up cases on deceptive, unfair, and unconscionable sales acts and practices, liability for products and services, product quality and safety, consumer product and service warranties, advertising and sales promotion, labeling and fair packaging, and price tag law, among others.
Mediation facilitates negotiation between disputing parties to reach a voluntary and mutually satisfactory outcome.
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Feature DTI helps MSMEs upgrade their business
Vol. 16, No. 138
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he Department of Trade and Industry (DTI)-Tarlac conducted a Small and Medium Enterprises (SMEs) Summit at the convention hall of Tarlac Events Place last May 25, 2012. “The one-day activity, which was attended by around 350 existing and potential SMEs, was meant to kindle the entrepreneurial spirit in the province to stimulate the local economy and generate jobs,” DTI Provincial Director Agnes B. Ramirez said. Apart from plenary and break-out sessions, there was also a packaging materials exhibit and one-on-one design clinic.
ASEAN Watch 1. PHL, Malaysia hold business partnership forum
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he first Philippines-Malaysia Investment Partnership Forum was held in Kuala Lumpur on May 01, 2012, aimed at strengthening the bilateral economic and investment relations between the two countries and re-launching the Malaysia-Philippines Business Council (MPBC). “The revitalization of the MPBC has never been more pressing and relevant. As next-door neighbors, we should be helping each other,” Vice President Jejomar C. Binay said.
With these activities, DTI hopes that MSME business owners will improve their standard and be more efficient in running their businesses by offering quality products and services. Topics discussed
Entrepreneurial mindset Putting your business online Effective selling and negotiation skills How to effectively prepare Bureau of Internal Revenue (BIR) reportorial requirements Packaging and labeling for food products as a marketing tool
Malaysian trade officials see agriculture, investment and finance, logistics, the halal industry, tourism, and education as potential areas for Philippines-Malaysia business collaboration. Last year, Malaysia ranked as the Philippines’ ninth largest trading partner, with total trade amounting to USD3.8B. The Philippines was Malaysia’s 11th largest export market and 8th largest import market, valued at USD1.4B and USD2.4B, respectively. (GMA News 05/29)
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2. WB urges PHL to capitalize on East Asia
June 18, 2012 9
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he World Bank (WB) urged the Philippine government to capitalize on East Asia’s growth momentum to drive the domestic economy in an expansion mode within three years. The Philippines must gear up its human resources and infrastructure and complete the agriculture development cycle, WB Lead Economist in the Poverty Reduction and Economic Management Department (PREM) of the East Asia and Pacific Region Rogier van den Brink said. Brink said external shocks may not cause much damage as the Philippines remains heavily reliant on private consumption, remittances from overseas Filipinos, and the services sector. “It is the right moment to invest in infrastructure project while there is still some interest in investments in this area,” he said. (TPS 05/24)
STATWATCH P2.03T Cumulative investments generated by the Philippine Economic Zone Authority (PEZA) for the past 17 years P2T Investment commitments by the biggest firms in the Philippines (PHL) in the next five years P465B PEZA-generated investments during the past 22 months of the Aquino administration USD27B Target revenues to be generated by PHL business process outsourcing (BPO) sector by 2016 USD11B Revenues generated by PHL’s BPO sector in 2011
USD3.8B Amount of trade between PHL and Malaysia in 2011
USD2B Extra earnings to be generated by PHL’s BPO sector this year P1B-P17B Range of annual revenues generated by the top 30 BPO companies in PHL P4.6M Sales generated by the Aklan Piña and Fiber Festival organized by the Department of Trade and Industry (DTI) this year
1.3M Target employment to be generated by PHL’s BPO sector by 2016 638,000 Jobs generated by PHL’s BPO sector in 2011
126,000 New jobs to be generated by PHL’s BPO sector this year
5,000-25,000 Range of jobs generated by the top 30 BPO companies in the PHL
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Vol. 16, No. 1310
DTI Direct* Call Center Report SUMMARY OF CALLS Month-on-month CALL TYPE
May
Jun
Business Name
2,229
2,054 2,020
Consumer Welfare
July
Aug
Sept
Oct
Nov
Dec
Jan’12 Feb’12
2,250
2,398
2,017
1,874
1,458
3,665
Mar’12 April’12 May’12
2,741 2,784
2,182
2514
732
715
637
741
812
712
670
966
742
860
653
670
895
Exports
9
9
9
9
9
1
5
5
4
7
6
7
4
Investments
4
5
5
4
2
0
3
0
0
1
0
6
3
15
21
20
26
27
23
20
15
12
10
5
19
18
Others
1,040
908
891
985
1,186
981
1,194
941
1,157
1,179 1,251
878
1,080
TOTAL
4,029
3,712 3,582
4,015
4,434
3,734
3,766
3,385
5,580
4,798 4,699
3,762
4,514
MSMEs
CUMULATIVE CALL TYPE
Jan-May 12
% vs. Total
May 2012
April 2012
13,886
59.46
2514
2,182
15.22
3,820
16.36
895
670
33.58
Exports
28
0.12
4
7
-42.86
Investments
10
0.04
3
6
-50.00
MSMEs
64
0.27
18
19
-5.26
Others
5,545
23.74
1,080
878
23.01
TOTAL
23,352
100.00
4,514
3,762
Business Name Consumer Welfare
% Increase/ Decrease
CALL RESOLUTION STATUS Jan-May 2012
Resolved 23,132, 99%
May 2012
Endorsed - 221, 1%
*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.
Resolved 4,511 99%
Endorsed - 3, 0%
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(A synopsis of selected book acquisitions at the DTI-TIIC library)
Legend: BMI MAB TPS
Title : 50 Steps to Business Success: Entrepreneurial Leadership in Manageable Bites
Title : What Makes a Winner: Principles from the Bible for Business and Life
Author : Ratnayake, Ravi et al Call Number : 06.08/CLE/2010
Author : Criswell, Whit Call Number : 05.03/CRI/1999
The book offers a systematic approach to leading a successful business. It is designed to bring order to a life that tends naturally toward chaos and, sometimes, even fear. Reaching deep into the experience of leaders of successful companies, it truly captures the heart and soul of every successful business. Each chapter reveals a series of sound business practices, or “manageable bites," each a stepping stone for the next and each dependent upon the other. The bites are proven truisms that guide the planning and leadership of a successful business, that when applied with patience, discipline, consistency, and ethics, pave the way to business success.
This publication is a collection of bite-sized reflections culled from the Bible and the author’s experiences, providing readers with Biblical wisdom for the daily challenges of business, life, and faith. It gives valuable insights and practical guides on management principles anchored on the Bible. This book provides clear guidance to businessmen and professionals, and provides inspiration to live life with focus and motivation.
Philippine Postal Permit No. PM-04-08
What’s New?
June 18, 2012 11
- Business Mirror - Manila Bulletin - The Philippine Star
Editor-in-Chief: Anne L. Sevilla Managing Editor: Vic S. Soriano Associate Editor: Resty P. Par Writers: 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