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August 27, 2012 1
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August 27, 2012 Vol. 16, No. 18
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 tracks P100-B investments Inside DTI DTI opens PhilTrade Center in September Good News, Philippines! 1. PHL under PNoy is Asia’s next tiger economy 2. Filipino women lead financial literacy 3. BPO industry expects more dramatic growth MSME/OTOP News 1. Breadfruit industry takes off in Marinduque 2. One Cebu Expo showcases over 100 OTOP products
Business Alert 1. DTI, DILG, DOST promote e-BPLS 2. Packaging industry urged to improve Consumer News 1. Gov’t extends helmet accreditation 2. DTI intensifies monitoring price discounts for the disabled Features PHL now a “break-out nation” ASEAN Watch 1. FTA info campaign done in Samar 2. ASEAN Investment Area Council focuses on FDI Statwatch What’s New?
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Focus DTI tracks P100-B investments
Vol. 16, No. 182
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he Department of Trade and Industry (DTI) is pursuing multisectoral investments worth P100B, stressing the need to have competitive incentive schemes. New investments in the energy, mining, agribusiness, manufacturing, and business process outsourcing (BPO) sectors are currently trailed by the DTI. “We are pursuing many investment leads. There is easily a P100 B worth of investment leads that we are pursuing,” DTI Undersecretary for Trade and Investment Promotions Group (TIPG) Cristino L. Panlilio said. Panlilio earlier said the DTI targets to generate P870-B investments for 2012, pointing out that the Philippines needs incentive schemes competitive with the neighboring countries to attract investments. He said a proposed bill regarding the rationalization of incentives
Inside DTI DTI opens PhilTrade Center in September
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he Department of Trade and Industry (DTI) expects to open the PhilTrade Center, which is being eyed as a permanent venue to showcase the country’s exports, in September following the completion of its renovation this month.
“It [PhilTrade Center] is undergoing renovation. It should be finished by this month so that we can inaugurate it. And therefore our exports, our non-traditional exports in particular, will now have a permanent showroom,” DTI Undersecretary for Trade and Investment Promotions Group (TIPG) Cristino L. Panlilio said. PhilTrade Center will be open year-round with products to be featured in different shows every month.
which the DTI is drafting, together with the Department of Finance (DOF), aims to synchronize the 13 incentive promotion agencies (IPAs) to provide better understanding and appreciation of incentive programs to interested investors. “Some of these agencies work for cross purposes. We have to make sure that all 13 agencies have a synchronized complementary incentives system,” he said. He said business proposals, particularly on the mining and BPO sectors, are being readied for the state visit of President Benigno S. Aquino III to Australia and New Zealand slated on October 22 to 28. Among the issues to be discussed during the presidential visit is the USD 625-M fund which Australia’s Macquarie Group and the Asian Development Bank (ADB) have allotted for the Philippines for infrastructure improvement. (TMT 08/02)
For instance, one month can be dedicated for the garments industry, while the next could be for furniture, and the following month for Christmas decors. Panlilio said those taking part in the shows need not pay rent but would have to shoulder the operating costs for maintenance such as electricity costs and janitorial services. The PhilTrade Center, consisting of nine pavilions, was a venue for export promotions in the 1980s. Of the nine pavilions, two are owned by the DTI, five are sitting on the property of the Philippine National Bank (PNB), while the rest are held by the Social Security System (SSS).
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Panlilio said the DTI allotted P10M for the renovation of the two pavilions. Another P3M has also been allocated to cover the costs for air conditioning and other fixtures.
and South Korea have their own exhibition halls, so it would be beneficial for the Philippines to have its own permanent exhibition center to promote its exports as well.
He said other neighboring countries like Singapore, Taiwan, Hong Kong
Good News, Philippines! 1. PHL under PNoy is Asia’s next tiger economy
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he Philippines under President Benigno S. Aquino III has the “best chance” of becoming a tiger economy in Asia as emerging markets have started slowing down while the debt crisis in the euro zone and the faltering United States (U.S.) economy continue to affect the markets, George Mason University Professors Tyler Cowen and John Nye said. “The Philippines has strong economic fundamentals,” Cowen said, citing
2. Filipino women lead financial literacy
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ilipino women lead financial literacy in emerging markets, the MasterCard Worldwide Index of Financial Literacy survey showed. People in mature markets may prove to be better financial planners overall but it is women in emerging markets who remain dominant when it comes to basic money management. Women showed slightly better scores than men in Asia-Pacific’s emerging
3. BPO industry expects more dramatic growth
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he business process outsourcing (BPO) industry in the Philippines will soon be the powerhouse of the economy since it continues to remit millions of dollars to the country without having to send workers abroad. Australian BPO Association President Martin Conboy said these remittances are expected to continue to grow in the near to midterm.
the economic gains of the two-yearold Aquino administration, English proficiency, and the Filipinos’ belief in education as the key ingredients for economic liberation. Nye cited the “hot money flowing into the Philippines” and the rapid transformation of the country’s telecommunications industry—from very few telephone landlines in the 1980s to almost 80%-90% of Filipinos owning cellular phones today. (PDI 08/05)
markets, with the Philippines leading the region with financial literacy scores that were 9% better than men’s, followed by Viet Nam (6%), and Malaysia (5%). The MasterCard Worldwide Index of Financial Literacy is based on a survey conducted from April 24June 10, 2012 with 6,904 respondents aged 18-64 in 14 Asia-Pacific countries. (MAB 07/28)
“Through BPO, the Philippines will be the powerhouse of the global economy in few years because it is a magnificent place to supply people who are great workers when it comes to software,” Conboy said. While BPO includes service support, sales and marketing, technical support, and front and back office operations, the biggest money earner remains to be the inbound and outbound calls.
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Calls to and from customers are the bread and butter accounts of BPO companies, and it is the primary reason the Philippines was able to become the world’s dominant player, Conboy said.
MSME/OTOP News 1. Breadfruit industry takes off in Marinduque
2. One Cebu Expo showcases over 100 OTOP products
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he Philippine Center for Postharvest Development and Mechanization (PhilMech) and the Marinduque State College (MSC) have successfully established the use of breadfruit as flour source. “This successful undertaking of PhilMech, in partnership with MSC, can pave the way for the establishment of more breadfruitbased small to medium enterprises (SMEs) in various parts of the Philippines,” PhilMech Executive Director Rex L. Bingabing said.
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ver 100 locally-made Cebu products under the Department of Trade and Industry’s (DTI) One Town, One Product (OTOP) flagship program were showcased in the staging of the One Cebu Expo 2012. DTI-Cebu Provincial Director Nelia V.F. Navarro said 50 OTOPs were supported by their respective local government units (LGUs).
Business Alert 1. DTI, DILG, DOST promote e-BPLS
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he Departments of Trade and Industry (DTI), the Interior and Local Government (DILG), and Science and Technology (DOST) have signed a memorandum of agreement (MOA) for the automation of business permit and licensing system (BPLS). The MOA, aimed at promoting electronic or e-BPLS and assisting
In general, he said, Filipinos speak English better. And since the United States (U.S.) is the biggest call center market in the world, it was inevitable that American companies would transfer their business to the country. (TMT 08/05)
PhilMech and MSC have started an enterprise in Marinduque to process breadfruit and a laboratory to conduct research on the process. The breadfruit tree or rimas is largely unutilized and is viable in making food products. Breadfruit Propagation Head Dr. Carlos J. Andam said that breadfruit has become part of the United Nations (UN) program to fight poverty. (TMT 08/01)
One Cebu Expo began five years ago with only about 188 exhibitors on its first trade fair. Last year, it had 360 exhibitors, which this year grew to 450 exhibitors. The event boasted of its “three firsts,” which were the participation of Portrait Artist Society of the Philippines, Inc. (PASP) and different universities and chambers of commerce, and free film showing of Visayan movies.
local government units (LGUs) in setting-up business offices compliant with standards for processing business permits, was signed last July 24, 2012 by DTI Secretary Gregory L. Domingo, the late DILG Secretary Jesse M. Robredo, and DOST Secretary Mario G. Montejo.
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e-BPLS is expected tol cut the red tape and attract more businesses. This can also make LGUs more competitive and business friendly.
will be the co-chair. The DTI, on the other hand, will harness and mobilize the support of the private sector and other stakeholders.
The DOST will chair the Technical Working Group (TWG) and the DILG
2. Packaging industry urged to improve
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he local packaging industry was urged to improve product packaging to strengthen competitiveness in the international markets. Experts at the 2012 Global Pack International Packaging Conference and Exhibition said the packaging industry must meet international standards by continuously monitoring trends, seeking out new technologies, and trying new designs. Philippine Center for Packaging Engineering and Technology (PC-PET) Coordinator Bernie Cangrejo said they are calling for a new roadmap for export packaging that will identify opportunities, track market trends, and take advantage of the upswing in Asian economies.
Consumer News 1. Gov’t extends helmet accreditation
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he Land Transportation Office (LTO) has deferred the implementation of Republic Act (R.A.) 10054 or the Motorcycle Helmet Act of 2009 until yearend in line with Department of Trade and Industry’s (DTI) request to give them more time to complete inspection of helmets nationwide. The Department wants to ensure that all the helmets bear the Import Commodity Clearance (ICC) mark issued by the DTI-Bureau of Product Standards (BPS).
National Statistics Office (NSO) data showed that export packaging has been growing since 2009, reaching P163.2M at the end of 2011. Bureau of Customs (BOC) Commissioner Rozzano Rufino B. Biazon said the packaging sector plays an important role in the improvement of the economy, particularly in exports. The Department of Trade and Industry (DTI) has been placing more importance on packaging of products manufactured by micro, small, and medium enterprises (MSMEs). The DTI said the international marketability of local products can be boosted by improving packaging and shipping methods.
The helmet law went into effect on August 1 this year. On the same date until yearend, LTO enforcers were instructed to remind motorcycle drivers on the issue, but not to make punitive measures such as the issuance of citation tickets. The LTO is set to conduct aggressive public information and education campaigns on the matter as the helmet law is slated to be implemented strictly starting January 1, 2013.
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2. DTI intensifies monitoring price discounts for the disabled
Vol. 16, No. 186
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he Department of Trade and Industry (DTI) has intensified monitoring the special 5-% discount of the regular retail price on all basic necessities and prime commodities sold to Persons with Disabilities (PWDs). Following Republic Act (R.A.) 9442 or the Amended Magna Carta for Disabled Persons, the DTI, together with the Department of Agriculture (DA), issued joint Administrative Order No. 02, series of 2008, granting special discounts to all PWDs. The discounts can be availed on any retail store including supermarkets, groceries, convenience stores, and sari-sari stores. To enjoy this privilege, a PWD must present his or her PWD ID and Purchase Booklet both issued by their respective local government.
carnivals, and in domestic land, air, and sea transportation except in promotional fares. Basic necessities with discounts
Aside from the said discount, PWDs are entitled to a 20-% discount on movie houses, sports centers, and public vehicles. The privilege is also applicable in concert halls, circuses,
Features PHL now a “break-out nation”
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Bread Candles Charcoal Coffee Cooking oil Corn Detergents Firewood Fresh and processed milk Fresh, dried, and canned fish and other marine products Fresh eggs Fresh pork, beef, and poultry meat Fresh vegetables Infant formulas Laundry soap Root crops Rice Salt Sugar Other commodities as may be classified by both the DTI and DA
ositive labels now given to the Philippines are testimonies to the long way that the country has gone through in improving economic resilience.
improvements in business registration to encourage entrepreneurship and create more micro, small and medium-sized enterprise (MSMEs).
Labels such as “break-out nation,” “the NEXT-11” and “in the economic sweet spot” are testaments to this growing confidence in the country’s economy, said Department of Foreign Affairs (DFA) Secretary Albert F. del Rosario.
Del Rosario also pointed out that tourism arrivals are increasing, consumption spending is robust, government debt is shrinking, unemployment rate is steadily declining and government spending remains manageable.
Del Rosario said investments in the Philippines are on the rise, and investors are increasingly confident of the government’s ability to deliver its commitment to improve the business climate and infrastructure.
“The result is an unprecedented increase in world trade, increasing the profitability of business entities and corporations, fueling global growth, global job creation, and global poverty reduction more than at any time in history. And the Philippines has certainly benefited from this,” he said. (TPS 08/05)
The Department of Trade and Industry (DTI) has created
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ASEAN Watch 1. FTA info campaign done in Samar
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he Department of Trade and Industry (DTI) recently conducted a Free Trade Agreement (FTA) information campaign in Catbalogan City, Samar to help guide exporters. Speakers from the Bureau of Export Trade Promotion (BETP) and Philippine Export Development Plan (PEDP) conducted basic FTA information sessions. FTA is an agreement between two or more countries to eliminate or reduce tariffs and other requirements of commerce that restrict trade activities between and among countries. BETP Food and Preparation Division Chief Rose Marie Castillo said the Philippines is participating in FTAs to maintain competitiveness, promote crossborder complementation, sustain inflow of investments, promote mutual support on issues of common interest, and to benefit consumers. FTAs bring more opportunities to the Filipinos and provide broader market access and opportunities for Filipino professionals and skilled workers.
2. ASEAN Investment Area Council focuses on FDI
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he 15th Assocation of Southeast Asian Nations (ASEAN) Investment Area (AIA) Council recently met in Cambodia to review developments in the AIA and to discuss ways in attracting more foreign direct investment (FDI) into the ASEAN region. The AIA Council comprises of ASEAN ministers responsible for investment. The ministers had agreed to do more in terms of rules and regulations to present ASEAN as “one investment area,” said ASEAN SecretaryGeneral Dr. Surin Pitsuwan.
STATWATCH USD 90B Foreign direct investments (FDIs) attracted by members of the Association of Southeast Asian Nations (ASEAN) in 2011 P870B Investment target for 2012 by the Department of Trade and Industry (DTI)
P163.2M
Export packaging revenue in 2011
450 Exhibitors in One Cebu Expo 2012 Over 100 Cebu products under the One Town, One Product (OTOP) program showcased in One Cebu Expo 2012
80%-90% Percentage of Filipinos owning cellular phones today
65%
Overall Financial Literacy Index of Filipinas in H1 2012
“We need to do more to increase the confidence of external potential investment coming into ASEAN,” Surin said, adding that last year, the bloc attracted a large amount of investment worth USD 90B. “We also agreed to work closely with dialogue partners and wanted their participation within the ASEAN investment area,” he said. The ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam. (TPS 08/28)
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(A synopsis of selected book acquisitions at the DTI-TIIC library)
Title : One Village One Brand Project: Strategic Use of IP for SMEs in Developing Economies Publisher : APEC Call Number : 02 000/08.04/APEC/ 2012 The material aims to improve skills and knowledge in utilizing legal tools for intellectual property rights (IPR) and the strategies within local communities. The guideline focuses on cooperation between a developing economy and a developed economy in the context of brand development and its management. It contains information on brand and its related IPR tools; small and medium enterprise (SME) branding; guidelines for strategic branding in developing economies; and pilot projects.
Legend: MAB TMT PDI TPS
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Manila Bulletin The Manila Times Philippine Daily Inquirer The Philippine Star
Title : International Economy Report 2011: ICTs as an Enabler for Private Sector Development Publisher : UNCTAD Call Number : 13.06/UNCTAD/2011 This report highlights the role of information and communications technologies (ICTs) in enabling private-sector development (PSD) and seeks to establish a bridge between ICT and PSD policymakers. The publication identifies four areas in which the ICT-PSD interface is especially promising: strengthening the private sector’s role in extending ICT infrastructure and services; enhancing ICT use in enterprises; promoting the ICT sector itself; and making more efficient use of ICTs in various public interventions aimed at promoting PSD.
Philippine Postal Permit No. PM-04-08
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Vol. 16, No. 188
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