Dataline 16 (2014) by Department of Trade and Industry

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11 August 2014 1

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11 August 2014 Vol. 19, No. 16

A bi-monthly digest of global and domestic industry trends and developments. Published by the Knowledge Managment and Information Service of the 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 up 6 notches in world ranking Good News, Philippines! 1. PHL exports up 6.9% in May 2. PEZA registers P27-B investments in agro-industrial sector Inside DTI 1. DTI: PHL electronics to grow by 8%-10% this year 2. DTI showcases PHL creative services in US 3. BOI to streamline IT-BPM incentives 4. Usec. Terrado lands in Global FWN100™

Business Update 1. NCC stresses e-services’ importance in boosting competitiveness 2. DTI urge importers to hasten goods’ flow to & from Manila ports 3. DTI confers Gold Seal of Excellence to SM Supermarket in Baguio Consumer News 1. Notification of product safety issue on Remington Rifles 2. DTI advises consumers to be vigilant Feature PBR joins NSTW 2014 Exhibition Statwatch

MSMEs What’s New? 1. DTI turns over SSFs in Kalinga, Zamboanga 2. Dagupan sea food industry development gets GPB 3. MSMEs enabled through coop loans 4. DTI offers free biz trainings for SMEs

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Focus PHL up 6 notches in world ranking

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he Philippines improved by six notches from 65th to 59th spot out of 148 economies in "The Global Competitiveness Report 2013-2014" released by the World Economic Forum (WEF). Improvements in government efficiency and the fight against corruption supported the country’s progress in competitiveness, the WEF said. The Philippines received a total score of 4.29 from the three sub-indexes of "basic requirements, efficiency enhancers, and innovation and sophistication factors." "The trends are positive across most dimensions of the Index. In the institutions pillar (79th), the Philippines has leapfrogged over the past years. The current government, which came into power in 2010, has made the fight against corruption an absolute priority; corruption had historically

Good News, Philippines! 1. PHL exports up 6.9% in May

hilippine exports grew by 6.9% in May 2014 as the overall outlook for the rest of the year continues to be upbeat, the National Economic and Development Authority (NEDA) reported. The country’s total export revenues rose to USD 5.5B in May this year from USD 5.1B in the same month last year, the Philippine Statistics Authority (PSA) announced. Stronger sales in minerals, manufactures, total agro-based, and forest products propelled the growth in merchandise exports. Revenues from mineral products grew by 58% from USD 395.6M in May 2013 to USD 625M in May 2014 mainly due to increased shipments to China, Japan, and Switzerland. Similarly, overseas sales of manufactured goods expanded

been one of the country's biggest drags on competitiveness," the report said. Notably, the WEF said the campaign against corruption boosted the Philippines' standing in the ethics and corruption strategy, up from 135th in 2010 to 87th this year. "A similar trend has been observed in the government efficiency index," the WEF said. However, the report said the Philippines still needs to improve its transport infrastructure (84th), particularly its airport (113th) and seaport (116th) facilities. "The recent successes of the government in tackling some of the most pressing structural issues are encouraging and proof that bold reforms and measures can yield positive results," the report said. (TPS 07/14) by 3.3% to USD 4.2B in May 2014 from USD 4.1B in May 2013. To attain the Philippine Development Plan (PDP) Midterm Update FY 2014 target of USD 69B, policies should remain supportive of higher exports growth, NEDA Deputy Director-General Emmanuel F. Esguerra said. “In the short-term, efforts must be intensified to help the areas vulnerable to the adverse impact of a prolonged dry spell. In the long term, to ensure the sustainability of manufacturing exports, the government needs to intensify the Industry Roadmapping Project. This includes the on-going Manufacturing Resurgence Program, complemented by continuing measures to improve the country’s business climate, as well as to increase overall productivity and innovative capacity,” Esguerra said.

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Japan remains as the country’s top export market with a total value of USD 1.12B accounting for 20.4%

2. PEZA registers P27-B investments in agroindustrial sector

he Philippine Economic Zone Authority (PEZA) has registered P27.52B worth of investments in agro-industrial activities since the agency started registering this type of ecozones in 2008.

De Lima said some of the agro-industrial investments are located in Lanao, South Cotabato, Davao, Zamboanga, and General Santos City in Mindanao and Negros, Cebu, and Leyte in the Visayas.

PEZA Director-General Lilia B. de Lima said the investments are poured into 18 projects that employ 45,643.

Of the total investments of P27.52B, ecozone locators poured P21.63B while ecozone developers put in P5.89B.

PEZA promotes investments in the agro-industrial sector as they generate the most number of employment even for those with lower educational attainment in remote areas. Agro-industrial export manufacturing is an activity eligible for incentives under PEZA. Enterprises in this category are involved in processing and or manufacturing of agricultural products for export. “Agro-industrial investments will help us attain inclusive growth,” De Lima said, noting that majority of these agro-industrial investments are located in Mindanao.

Inside DTI 1. DTI: PHL electronics to grow by 8%-10% this year

he Department of Trade and Industry (DTI) expects Philippine electronics exports to grow by as much as 8%-10% this year as the sector continues to recover. DTI Secretary Gregory L. Domingo said the projection was an improvement from the 5%-7% forecast announced

2. DTI showcases PHL creative services in US

of Philippine total revenues from merchandise exports during the period.

he Department of Trade and Industry (DTI) conducted a road show in the United States (U.S.) to push for creative services, as the Philippines targets to capture at least 10% or roughly USD 24B of the USD 243-B global animation and gaming industry.

De Lima said the figures do not include the expansion programs of developers and their locators. PEZA data showed that banana grower Sumifru (Philippines) Corp. in Davao City employs the most number of people with 24,464 employees in agro-industrial sector todate. The biggest investor, however, is Green Future Innovations Inc. in Isabela for its P6-B manufacturing/ production of bioethanol registered in 2010. (MAL 07/07)

by the Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI). According to Domingo, the DTI’s higher projection may be attributed to the recovery of global demand for electronic goods and the new facilities being put up, which will shore up production in the country.

DTI Industry Promotions Group Undersecretary Ponciano C. Manalo Jr. said government officials went to New York, San Francisco, and Los Angeles to talk to some of the biggest players in gaming, animation, and software development.

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“We will talk to specific companies and convince them to come here to the Philippines and set up high technology facilities for animation and gaming because the value of technology transfer would be huge,” Manalo said.

3. BOI to streamline IT-BPM incentives

he Board of Investments (BOI) will streamline incentives granted to the information technology-business process management (IT-BPM) sector to focus on nurturing those in the supply chain and sub-segments that have yet to reach maturity. BOI-Industrial Policy Department Director Corazon Dichosa-Halili said the latest draft of the proposed 2014 Investment Priorities Plan (IPP) seeks to unbundle the different segments of the IT-BPM industry where only deserving sectors would be given incentives. For a time, IT-BPM was listed as priority activity in the IPP but since 2013, the BOI has slowly moved certain segments, such as contact center, into the export-oriented listing.

4. Usec. Terrado lands in Global FWN100™

epartment of Trade and Industry (DTI) Management Services Group (MSG) Undersecretary Nora K. Terrado was counted by the Filipina Women’s Network among its 100 Most Influential Filipina Women in the World (Global FWN100)™ Awards. Terrado has been in public service only a little over a year, but this did not prevent the FWN from recognizing her under the Builder category in the annual awarding. Buildership is defined by the organization as acts that build improved organizations and guiding organizations to correct, repair, and re-align.

The move to tap potential investments from the creative industry was part of the Philippines’ strategy to penetrate the three biggest global players in creative services, namely, U.S., Japan, and Korea, Manalo said.

Export activities are subject to certain equity and sales cap rules. IT-BPM companies that cater purely to the domestic market are thus no longer entitled to incentives. These include customer relations management services and help desks for local firms. To qualify under export activities, the IT-BPM company must export 50% of the registered company’s output if Filipino-owned, or at least 70% if foreign-owned. Based on preliminary plans, the IT-BPM industry would be given other non-fiscal support such as skills training.

“The Global FWN100™ women are dynamic entrepreneurs, rising stars under age 35, practitioners, community leaders, and executives who have moved through the ranks in large organizations, nonprofits, and government agencies. They are powerful examples of women doing extraordinary work who will motivate our youth and future leaders,” said Global FWN100™ Worldwide Search and Selection Committee Chair Thelma Boac. Nominations for the Global FWN100™ Awards were received from 16 countries. “A number of Filipina women have migrated all over the world to seek some form of leadership

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and economic empowerment. The collective stories of how they disrupted their professional and personal lives will be the largest recorded diaspora in modern times,” said FWN’s Founder and Chief Executive Officer (CEO) Marily Mondejar. The Global FWN100™ Awards promotes the FWN’s Filipina Global Power 2020 Vision of creating a community of generations of qualified Filipina leaders that may one day hold positions of high power in all sectors of the international economy. Awardees of the Global FWN100™ will participate in the FEMtorship program where they will tutor a young Filipina, and join in the 11th Annual Filipina Leadership Global Summit. They will also grace the pages of a special issue of the FWN Magazine.

Criteria for Global FWN100 Builders category • Demonstrated exceptional business impact in a large workplace environment • Displayed deep passion for a cause through collaborative initiatives at a non-profit institution • High potential and skill with measurable results at a government agency or organization in any field FWN100 categories • Behind the Scenes Leaders • Builders • Emerging Leaders (Below Age 35) • Founders & Pioneers • Innovators & Thought Leaders • Keepers of the Flame • “Nicole” • Policymakers & Visionaries DTI FWN100 nominees • Management Services Group Undersecretary Nora K. Terrado— Builders, Founders & Pioneers, Policymakers & Visionaries Categories • Philippine Economic Zone Authority (PEZA) Director General Lilia B. De Lima—Builders Category • Washington, D.C., U.S.A. Commercial Counselor Maria Roseni Mendoza Alvero—Innovators & Thought Leaders, Keepers of the Flame Categories Source: Filipina Women’s Network

MSME News 1. DTI turns over SSFs in Kalinga, Zamboanga

hared Service Facilities (SSFs) have been given to producers in Kalinga and farmers in Zamboanga by the Department of Trade and Industry (DTI) to assist the groups in their trade. CKAPI SSF inclusions • Heavy duty juicer • One bar code printer and scanner • One computer unit with accessories • One continuous band sealer • One digital weighing scale • One filler and capping machine • One impulse sealer • One labelling gun • One stand-up pouch filler • Two units mini label printer MAPZACARA SSF inclusions • Four fabricated brick stoves • Stainless steel working tables and stove tops • Two liquefied petroleum gas (LPG)fired hobs

The SSF in Kalinga worth P1.1M was handed-over to the Chamber of Kalinga-Apayao Producers, Inc. (CKAPI) for its Toll Packaging Project. DTI provided P980,000 for the SSF while the remaining P120,000 came from the cooperator as working capital. The City Government of Tabuk, Kalinga, CKAPI, and DTI also inked a memorandum of agreement (MOA). In Zamboanga City, the SSF for coconut sugar production was received by the Malandi Patalon Zamboanga City Agrarian Reform Association (MAPZACARA). The SSF can process 160L of toddy or tuba to produce 20kg of cocosweetener daily, a great improvement

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to the association’s production which was only at 5kg per month due to lack of equipment.

2. Dagupan sea food industry development gets GPB Project objectives • Assistance for registration with the Intellectual Property Office (IPO) and accreditation with the Bureau of Fisheries Production Standard (BAFPS) and Hazard Analysis Critical Control Point (HACCP) • Product promotion assistance for local producers and processors • Standardize Dagupan bangus production and labeling Source: City Government of Dagupan

The equipment provided meets Food and Drug Administration’s (FDA) standards.

Coconut sugar has a glycemic index of as low as 35, while table sugar has glycemic index of 60, according to the Philippine Coconut Authority (PCA), as well as having high mineral content, making it a healthy alternative for diabetics.

Products by the city’s villages will be displayed and put on sale at the Product Center without additional charge to the producers.

he Department of Trade and Industry (DTI) handed over P800,000 to the local government of Dagupan City for its Dagupan’s Best Products Philippine Traceability for Revitalized Agricultural Competitiveness Enhancement (P-TRACE). Under DTI’s Grassroots Participatory Budgeting Program (GPBP), the amount was the first tranche of funding as another P2.8M will be provided for the city’s project of improving its seafood industry with focus on value added milkfish products. Part of the initial fund will be used to furnish a Product Center located beside the city hall with necessary equipment such as shelving freezers and chillers.

3. MSMEs enabled through coop loans

oans from cooperatives instead of banks is being suggested as a better alternative for start-up micro, small, and medium enterprises (MSMEs) looking for financing. Despite higher interest rates, loans from cooperatives is much more accessible than from banks which sometimes impose requirements that start-ups are unable to meet such as a three-year bank statement and income statement. Republic Act 9520 directs that cooperatives offer loans to MSMEs in their start-up phase.

Initial funding use • Accreditation of food products as “Proudly Dagupan’s Best Products” and other accreditations • Acquisition of shelving freezer, chillers, and smoked bangus equipment • Creation and organization of technical working group and management committee • Fish farm monitoring and evaluation for registration • Fish farm residue monitoring • Food processing plant database preparation • Information campaigns and consultations with prospective clients • Product clinics and regular capacity development • Promotion and marketing of accredited products

Meanwhile, the Department of Trade and Industry (DTI) assists MSMEs requiring financing through forums that provide a venue where MSMEs can meet financing institutions. These forums may be held at the department’s office or in convention centers. In Davao, the Davao City Chamber of Commerce and Industries Inc. (DCCCII) Small Business Development Center (SBDC) is also offering seminars to help MSMEs understand the thinking of bank analysts. (Sun Star Davao 07/01)

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4. DTI offers free biz trainings for SMEs

Business Update 1. NCC stresses e-services’ importance in boosting competitiveness

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Undersecretary Zenaida C. Maglaya said.

“In pursuing the development of micro, small, and medium enterprises (MSMEs) through the SMERA, we intend to fortify competitiveness and sustainability of these enterprises to make them competitive in the local and foreign markets,” DTI Regional Operations Group (ROG)

For the SMERA Training topics, visit http://www.dti.gov.ph/dti/index.php/ 2014-04-03-40-26/news-room/167dti-offers-free-businessmanagement-and-demo-skillstraining.

n celebration of Small and Medium Enterprise (SME) Week 2014 last July, the Department of Trade and Industry (DTI) held free business management and demo-skills training through its SME Roving Academy (SMERA) program.

he National Competitiveness Council (NCC) held forums on online services accross the country last July to emphasize the importance of E-Services in helping boost efficiency and ease in both public and private transactions. “Going online in our various transactions with government and in private business will boost the country’s competitiveness at least in the Association of Southeast Asian Nations (ASEAN) community in terms of delivering fast and efficient services,” said NCC Program Officer Marina N. Saldaña. While Saldaña lamented that the country is still trying to catch up with its ASEAN neighbors in terms

2. DTI urge importers to hasten goods’ flow to & from Manila ports

he Department of Trade and Industry (DTI) advised industries and warehouse owners/ operators to help in accelerating the flow of goods to and from Manila ports. “The DTI is involved in a government committee that develops plans in decongesting the ports in the city of Manila. Now that traffic of delivery

Themed as “Strengthening Competitiveness and Sustainability of MSMEs,” the SMERA Business Training was held from 11-12 July at the Philippine Trade Training Center (PTTC) in Pasay City.

of online or e-services, she said the government is actively taking actions as they help cities to enter the era of electronic facilities and services. “The improvement and expansion of our E-Services is even urgent with the ASEAN integration in 2015,” she said, adding that foreign investors must be assured that they can do business in the country conveniently. (The Daily Guardian 04/07) Cities outside the National Capital Region (NCR) where NCC launched the E-Services program

• • •

Batangas Cagayan de Oro Iloilo

trucks and vans in Manila City is easing, it is essential that the transport of products to and from the ports and their distributors is fast and frequent to decongest the ports and to provide supplies in the markets for consumers’ purchases,” DTI Consumer Protection Group (CPG) Undersecretary Victorio Mario A. Dimagiba said.

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The department pushed operators to cooperate and ensure that their businesses and warehouses are open at night time and weekends to accept deliveries. Manila already allowed a 24-hour express trade lane for containerized trailer trucks at the innermost lane of Roxas Boulevard bound south and north to Anda Circle; and at the

3. DTI confers Gold Seal of Excellence to SM Supermarket in Baguio

he Department of Trade and Industry-Cordillera conferred the first Gold Bagwis Seal of Excellence Award for supermarkets in the Cordillera Region to SM Supermarket. SM Supermarket Assistant Vice President for Operations Janna Servillejo, Store Manager Princess Baniaga, and Operations Manager Lilibeth Sayo accepted the award from DTI-CAR Regional Director Myrna Pablo and DTI Baguio-Benguet Provincial Head Freda Gawisan. Pablo commended the SM Supermarket mostly the employees in the frontline of services for being the first Gold awardee in the Supermarkets category in the region.

Consumer News 1. Notification of product safety issue on Remington Rifles

2. DTI advises consumers to be vigilant

outermost lane bound south and north from Anda Circle to R-10. “We anticipate for the flow of goods in the market to normalize in several weeks as truckers manage their deliveries with industries through the express trade lane; and as container owners and operators bring the products out the ports,” Dimagiba said. “The DTI Bagwis Awards program aims to promote and foster the highest level of business ethics and uphold a fair and honest marketplace through voluntary self-regulation and service excellence,” Gawisan said. In line with this, DTI also awarded the Consumer Welfare Desk (CWD) Seal to SM Supermarket. Servillejo thanked DTI for recognizing the efforts of SM in providing the best service to their consumers in Baguio City. “The Bagwis award is not just an award but more as a responsibility that we have to live up to the excellence expected from us,” Servillejo said.

he Romulo Mabanta Buenaventura Sayoc & De Los Angeles law firm, on behalf of Remington Arms Company LLC, sent a notification of product safety issue to the Department of Trade and Industry (DTI).

As a request, consumers are enjoined to cease using Remington Model 700 and Model Seven Rifles manufactured from 1 May 2006 to 9 April 2014, as any unintended discharge has the potential to cause injury or death.

Remington does admit that the rifles either have a defect or can become a substantial product hazard.

Remington proposes to replace X-Mark Pro (XMP) triggers in all affected rifles free of charge.

he Department of Trade and Industry (DTI) in the provinces once again warned the public from text scams and unscrupulous traders.

"Do not believe in text messages that you receive from ordinary cellphone numbers and never give out any amount in cash or in kind to anyone or to any bank account

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that your texter is demanding from you," DTI Abra Provincial Director Arell F. Bañez said. Consumers are also advised to patronize DTI-accredited establishments who have adequate and appropriate tools needed in the repair of vehicles, electrical appliances, and electronic gadgets.

STATWATCH USD 24B PHL’s target slice of the USD 243-B global animation and gaming industry

USD 5.5B Worth of exports recorded in May 2014, up from USD 5.1B in the same period last year

Ways on how to be vigilant consumers

• • • • • • • • •

FEATURE PBR joins NSTW 2014 Exhibition Other MITHI projects for FY 2014

• • • • • • • • • •

Public Financial Management Cluster Citizen Frontline Delivery Services Higher Education Cluster Basic Education Cluster Health Cluster Justice, Peace and Order Utilities, Land Use and Climate Change iGov and Infrastructure Cluster Open Data Initiative MITHI CLuster

P27.52B PEZA-registered

Be mindful of quality and not just brands. Be observant on how consumer laws are being implemented. Be wary of special offers like free items. Canvass before buying. Check the product’s certification marks. Prioritize needs. Read warranty cards and documents before signing. Report unresponsive store on complaints with the appropriate agency. Take time to attend public hearing and consultations.

investments in agro-industrial activities since 2008

P1.1M Worth of SSF awarded to the Chamber of Kalinga-Apayao Producers, Inc. (CKAPI) for its Toll Packaging Project

59th PHL’s ranking out of 148 economies in the Global

he Department of Trade and Industry’s (DTI) Philippine Business Registry (PBR) joined the National Science and Technology Week (NSTW) 2014 Exhibition on 24-28 July 2014. The NSTW is the country’s biggest gathering of scientists, researchers, inventors, innovators, industry players, academicians, students, and Science and Technology (S&T) enthusiasts. It was held simultaneously with the National Invention Contest and Exhibits (NICE). The exhibition showcased technologies according to the sectoral interests of DOST 8 Outcomes. The PBR was showcased as a project under the Medium-Term Information and Communications Technology Harmonization Initiative (MITHI) Ease of Doing Business Cluster.

Competitiveness Report 2013-2014

8%-10%

DTI’s expected growth in the electronics sector this year

Meanwhile, MITHI is an e-Government and information and communications technology (ICT) support initiative that aims to harmonize ICT-related resources, programs, and projects in all agencies and on all bureaucracy levels. DOST 8 Outcomes 1. 2. 3. 4. 5. 6. 7. 8.

Agricultural Productivity Enterprise Development Industry Competitiveness IT Business Process Management Good Governance Quality Healthcare Education S&T Disaster Preparedness

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

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Title : Social Marketing for Small Business

Publisher : International Trade Centre Call Number : 13.06.02/ITC/2014 This publication explains how social media are profoundly transforming marketing practices and why this matters for small and medium sized enterprises (SMEs) in developing countries. It provides background information on the origins of social media, and reviews main tools and methods such as blogging, social networks including Facebook, Linkedin, Twitter, and Google, and content sharing methods. Also discusses the importance and benefits of social media by exporting SMEs, and suggests developing strategies and taking advantage of social media in the export-marketing context. It describes how to design such strategies; how to measure the impact that investment in social media has on the business. Also includes case studies from selected developing countries. 87p.

Title : WTO Trade Facilitation Agreement: A Business Guide for Developing Countries Publisher : International Trade Centre (ITC) Call Number : 02 000/09.07/ UNCTAD/2013 This guide helps businesses take advantage of the WTO trade facilitation agreement. It simplifies customs procedures which allow businesses to become more competitive. It explains the provisions with focus on what businesses need to know to take advantage of and also help policy makers identify their needs for technical assistance to implement and monitor the agreement. 23p. http://www.intracen.org/wto-tradefacilitation-agreement-businessguide-fordeveloping-countries #sthash.r6MKuZtg.dpuf

http://www.intracen.org/publication/Socialmarketing-for-smallbusinesses/ #sthash.u0c9Vbgd.dpuf

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Editor-in-Chief/Patricia May M. AbejoManaging Editor/Anne L. Sevilla Associate Editor/Jam H. Raposon Writers/Resty P. Par, Hazel S. Dizon, Joanna D. Cruz, Airiz A. Casta, Kit S. Andaya Design/Layout/Ren C. Neñeria Circulation/Al AquinoTo subscribe, email: publications@dti.gov.ph