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September 24, 2012 1
September 24, 2012 Vol. 16, No. 20
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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 PHL economy grows 6.1% in H1 Inside DTI 1. CMDF transfers to new home 2. DTI looking for overseas representatives
Consumer News 1. ConsumerNet Caraga prepares for Consumer Welfare Month 2. DTI-Romblon conducts consumer education Features Transparency inspires investors
Good News, Philippines! 1. Businesspeople more upbeat for Q4 ASEAN Watch 2. Filipinos score high 1. PHL is economic bright spot in Asia in financial quotient 2. ASEAN braces for regulatory reforms MSME/OTOP News 1. Expanded industry clusters favor MSMEs 2. DTI supports Negros Occidental showroom 3. Kahimunan Trade Fair earnings up 76% 4. DTI trains entrepreneurs Business Alert 1. BOI rolls out IPP roadshows 2. More perks pushed for autoparts investments 3. BPA/P to set up workers’ safety plan during calamities 4. PHL may get zero duty for selected imports to EU
Statwatch What’s New?
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Focus PHL economy grows 6.1% in H1
Vol. 16, No. 202
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he country’s gross domestic product (GDP) grew by 6.1% in the first semester on the back of increased business confidence, strong employment creation, and accelerated government spending. Boosted by a strong 5.9-% economic expansion in the second quarter, the Philippine economy in the first six months of the year remained among the fastest-growing in Asia, outperforming most of its neighbors.
Inside DTI CMDF transfers to new home CMDF training/orientation courses Construction management Construction safety Orientation seminar for students Skills development and livelihood Skills testing and certification Supervisory development
(4.2%), Viet Nam (4.4%), Singapore (2%), but lower than Indonesia (6.4%). “We are optimistic that the resiliency of our economy, as reflected by the strong real GDP performance in the two quarters of 2012, will not dissipate in the succeeding quarters despite the uncertainties,” he said. Balisacan said risks in external trade for the country have increased, but they could be cushioned by further diversifying exports.
Socioeconomic Planning Secretary Arsenio M. Balisacan said the domestic economy’s acceleration was well above the 5.3% average market forecast, growing from a moderate 3.6% recorded the previous year and boosting the first semester growth from the 4.2% achieved in the same period last year.
“The government stands ready to support growth as the economy remains cushioned and resilient with sound macroeconomic fundamentals. The government will continue to accelerate spending particularly on critical infrastructure projects,” he said.
Balisacan said strong domestic demand and an improving export sector would stimulate the economy’s production sectors, particularly agriculture and industry, in the next two quarters.
Household consumption is expected to stay high largely because of robust remittances in the coming quarters and the surge in tourist arrivals, which reached 2.1M in the first half of 2012, up 11.68% from last year’s figure.
The Philippine economic growth performance was above the preliminary average growth (4.7%) in the Association of Southeast Asian Nations (ASEAN) region, growing faster than Malaysia (5.4%), Thailand
On the demand side, the National Statistical Coordination Board (NSCB) reported that growth was spurred by consumer spending and improved external trade.
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he Construction Manpower Development Foundation Inc. (CMDF), the Department of Trade and Industry’s (DTI) training arm for the skills development of construction industry workers, has relocated to a new site to better serve its stakeholders. Previously housed at the DTI Main Bldg., CMDF is now located at 5F Executive Center Bldg., 369 Sen. Gil J. Puyat Ave., corner Makati Ave., Makati City. The transfer has positioned CMDF adjacent to the Construction Industry
(TPS 08/31; 08/30)
Authority of the Philippines (CIAP) in the same building, putting into one place the services for the country’s construction industry. Headed by CIAP Executive Director Jesus L. Motoomull, CMDF oversees the development of a globally competitive construction industry workforce. It offers a variety of specialized trainings for craftsmen, engineers, supervisors, and project managers of construction companies, which are geared toward improving productivity, construction safety, and skills and supervisory development.
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2. DTI looking for overseas representatives
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he Foreign Trade Service Corps (FTSC) of the Department of Trade and Industry (DTI) is in the process of recruiting Foreign Trade Service Officers (FTSOs) who will articulate, develop, and promote Philippine trade and investment interests abroad. FTSOs’ critical functions include but are not limited to trade policy negotiations, business matching, market intelligence, trade and investment counseling, event organization, and commercial diplomacy advocacy and support.
Good News, Philippines! 1. Businesspeople more upbeat for Q4
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verall business confidence index for the next quarter soared to a record high 59.6%, the latest Business Expectations Survey (BES) conducted by the Bangko Sentral ng Pilipinas (BSP) showed. The positive outlook banked on the expected increase in orders, higher production rates, expansion of businesses, and new product lines during the Christmas season.
The recruitment process involves a series of competitive oral and written examinations. Application forms are available at the DTI’s Human Resource Development and Personnel Services (HRDPS) located at 4F DTI Main Building, 361 Sen. Gil J. Puyat Avenue, Makati City. Application forms are also downloadable at www.dti.gov.ph. For more inquiries, please call (+632) 751.3132 or 751.0384 loc. 2412. The deadline for submission of applications is on October 10, 2012. business process outsourcing (BPO) services receipts, foreign investments, and the recovery of export demand. (MAB 08/30) Business confidence booster for Q4 Low interest rates Manageable inflation Steady growth of overseas Filipinos’
(OFs) remittances Positive credit rating action by Moody’s Stronger peso Higher government infrastructure
spending
The peso is seen to continue appreciating up to the fourth quarter due to steady remittances, growing
2. Filipinos score high in financial quotient
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ilipinos scored an all-time high of 52.6 out of possible 100 points in the latest Citi Financial Quotient (Fin-Q) Survey, passing the 50-point mark for the first time since the survey was launched in 2007. The Filipinos’ high Fin-Q score can be credited to a better understanding of money management, the survey noted. Some 59% feel they have a “good” or “very good” understanding about money management and personal finances. This also explains why 94% reported attempting
The Holiday/Christmas season Anticipatory spending for next year’s
elections
a monthly budget, the highest number across all countries participating in the research. The Citi Fin-Q Survey is an annual consumers survey designed to measure the Financial Quotient or financial well-being. All respondents were over 18 years of age with either a bank account or a major credit card. The survey covered 4,000 people where 500 interviews were held in each of the participating countries that include Australia, India,
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Indonesia, Korea, the Philippines, Singapore, Taiwan, and Thailand. The questionnaire consisted of over 50 questions and covered a range of topics closely related to financial decision-making and smart financial habits.
MSME/OTOP News 1. Expanded industry clusters favor MSMEs
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he government is expanding the industry cluster project dubbed as the National Industry Cluster Capacity Enhancement Project (NICCEP). More than 100 rural-based companies, mostly engaged in agriculture, are expected to benefit from the project. Export Development Council (EDC) Deputy Executive Director Emmarita Z. Mijares said more clusters were developed under the three-year NICCEP. These are the biotechnology and machinery parts and engineered products cluster of Cebu, chicharon of Ilocos Norte, processed food of Bohol, ginger ale of Rizal and fiber looming of Aklan. Five model clusters are the ISDA (In-Glass Sardines of Dipolog Association) Cluster of Dipolog City, Zamboanga del Norte; Furniture
2. DTI supports Negros Occidental showroom
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he Department of Trade and Industry (DTI) is supporting the plan of micro, small, and medium enterprises (MSMEs) from Negros Occidental in establishing a permanent showroom in Manila to expand business and tap new markets. “In six months, we hope to study the market even better with the view of establishing a permanent showroom here in Manila
With better access to financial education, Filipinos are able to manage their current finances and have become even more conscious about saving for the future. (MAB 08/28)
Cluster of Cebu and of Northern Mindanao; Davao Industry Clusters; and CrEATe Food Cluster of Caraga. She said the project is designed not only to spur exports but also to develop the micro, small, and medium enterprises (MSMEs). The project entails setting up of common service facilities or production centers for certain processes to give MSMEs access to better technology. This aims to help them graduate to a next level where they could tap a better and wider market and be integrated in the global supply chain. Through collaboration, companies will have negotiating leverage particularly in seeking industry level assistance from the government. The Japan International Cooperation Agency (JICA) is funding the NICCEP.
in collaboration of course with our partner, the DTI,” Association of Negros Producers (ANP) President Josephine T. Locsin said. Meanwhile, the DTI-Bureau of Domestic Trade (BDT) Showroom currently hosts 117 ANP MSMEs for the display of their products which include food, housewares, fashion accessories, and organic and natural products.
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3. Kahimunan Trade Fair earnings up 76%
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The ANP aims to hit monthly sales of P200,000 for the first two months, increasing by 30% from the third month onward.
The BDT Showroom is located at the G/F DTI Main Building, 361 Sen. Gil Puyat Avenue, Makati City.
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from Camiguin, Bukidnon, Misamis Oriental, Misamis Occidental, and Lanao del Norte.
he seven-day Kahimunan Trade Fair of Northern Mindanao that ran in August generated P838,025 in sales, 76% higher than last year’s P638,743. Organized by the Department of Trade and Industry (DTI)-Northern Mindanao, the trade fair showcased wood-based crafts, processed food, and other finished products
4. DTI trains entrepreneurs
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he Department of Trade and Industry (DTI) offered free training for micro, small, and medium enterprises (MSMEs), with the aim of broadening their entrepreneurial knowledge and skills. Organized by the Bureau of Micro, Small, and Medium Enterprise Development (BMSMED), the training sessions, which started running from August 4, end on September 25, 2012.
Business Alert 1. BOI rolls out IPP roadshows
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he Board of Investments (BOI) has rolled out the 2012 Investment Priorities Plan (IPP) to regions and started conducting roadshows across the country to motivate stakeholders to participate. “It is our way of conducting a personalized and harmonized interaction with our stakeholders in light of the usual bureaucratic approach,” Department of Trade and Industry Undersecretary for Industry Development and Trade Policy Group (IDTPG) Adrian S. Cristobal Jr. said.
The trade fair was in partnership with Departments of Agrarian Reform (DAR), Environment and Natural Resources (DENR), Education (DepEd), Labor and Employment (DOLE), and Science and Technology (DOST).
Training modules How to Start a Business Integrated Business Licensing Orientation on Starting a Salon Business Orientation on Starting a Spa Business Food Cart Business Opportunities How to Prepare a Business Plan Managing Your Finances Packaging Design Awareness How to be a Halal-certified Company How to Start a Water Refilling Station Business How to Start a Laundry Shop Business How to Make Dishwashing Liquid, Soap, Perfume, and Cologne
2012 IPP list Agriculture/agribusiness and fishery Creative industries/
knowledge-based services Disaster prevention Energy Green projects Hospital and medical Infrastructure and public-private partnership (PPP) Iron and steel Mass housing Mitigation and recovery projects Motor vehicles Research and development (R&D) Shipbuilding Strategic projects
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Cristobal, who also sits as BOI Managing Head, said the roadshow will be an opportunity for BOI to rally other key partners and agencies to be an integral part of IPP. Signed by President Benigno S. Aquino III, the IPP is strategically calibrated to beef up the previous year’s investment generation
2. More perks pushed for autoparts investments
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he Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) is pushing for a roadmap that calls for new and additional tax incentives – including more than eight-year income tax holiday (ITH) – to encourage investments and export activities in automotive parts. The roadmap calls for new incentives such as additional tax deductions, export market development, innovation and research and development (R&D), construction costs, tax incentives for periodic increases in exports, and exemption from internal taxes levied on domestic products manufactured outside economic zones.
3. BPA/P to set up workers’ safety plan during calamities
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he Business Processing Association of the Philippines (BPA/P), in partnership with the government, will set up an industry-wide response system to ensure workers’ safety during calamities. “We’ll continue to work closely with the government to ensure employee safety, enhance disaster preparedness, and mitigate service disruption,” BPA/P President and Chief Executive Officer (CEO) Benedict C. Hernandez said after a large part of Luzon was devastated
by presenting new initiatives that will address the existing environment and challenges. It is premised on four critical areas, namely job generation, enhanced delivery of social services, international competitiveness, and climate change mitigation and adaptation.
These new incentives are on top of the current three- to eight-year ITH, tax and duty exemption on capital equipment, spare parts and materials, additional tax deductions on labor expense, and 5% tax on gross income in lieu of local and national taxes after the ITH has been exhausted. Based on the roadmap, such incentives should be made available to new and critical parts, alternative fuel vehicles, electric vehicles, sub-assembly systems, and export activities. At present, a total of 256 auto parts manufacturers are producing 300 parts, of which 60% are original equipment manufacturers and 40% supplying for the replacement markets. (MAB 09/12) by the monsoon rains recently affecting information technology and business process outsourcing (IT-BPO) companies. During the height of the monsoon rains, IT-BPOs implemented business continuity plans (BCP), which included provision of shuttle transportation to employees. BPA/P encouraged member companies to ensure that affected employees will not risk their safety when reporting for work during calamities. (TPS 08/20)
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4. PHL may get zero duty for selected imports to EU
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he European Union (EU) has updated its generalized system of preferences or “GSP+” to take effect on January 1, 2014, which will make more apparel, leather, and fish exports from the Philippines possible. “The Philippines has been added to the GSP+ for the first time,” Department of Trade and Industry (DTI) Undersecretary for Industry Development and Trade Policy Group (IDTPG) Adrian S. Cristobal Jr. said.
Consumer News 1. ConsumerNet-Caraga prepares for Consumer Welfare Month
2. DTI-Romblon conducts consumer education
EU data showed that the European bloc has become the Philippines’ largest single export market in the five years to 2011, accounting for 17% of the country’s total exports. Philippine exports to the EU grew 40% to £5.4B in 2010 from about £3.8B in 2009. Philippine imports from the EU grew by more than 26% in 2010 to over £3.7B from £2.9B in 2009. (PDI 08/27)
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signing at the D&V Building grounds in Butuan City with the participation of the local city government and media.
Also, a two-day Diskwento Caravan is slated to be held after the MOA
The celebration will end with a public forum dubbed as “ConsumerNet Meets Public” on October 31 at the Luciana Convention Center, Butuan City.
onsumer Network (ConsumerNet)-CARAGA is set to forge a memorandum of agreement (MOA) with the Department of Trade and Industry (DTI) to strengthen the DTI’s role in implementing consumer laws.
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he Department of Trade and Industry (DTI)-Romblon held a consumer education in three schools in Odiongan, Romblon recently to educate the public on consumer rights and responsibilities. Topics discussed Administrative orders as a prelude
to DTI’s functions and regulations “No return, no exchange” policy Proper handling of consumer
complaints Basic and prime commodities monitored
A total of 501 participants composed of students and faculty staff of Guinbiyaran National High School, Alcantara National High School, and Don Esteban Madrona National High School attended the said event. The DTI-Romblon is slated to conduct a Consumers Congress on September 26 and a Provincial Consumer Quiz bee on October 4, 2012 at Tugdan National High School.
by DTI
Features Transparency inspires investors
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he Philippine Chamber of Commerce and Industry (PCCI) is projecting a gross domestic product (GDP) growth of more than 6% for 2012 owing to the strengthened investors’ confidence on the government. PCCI President Miguel B. Varela said there are several positive
developments happening for the Philippine economy: • Strong remittances from overseas Filipinos (OFs) • Expansion of the services sector • Strong banking sector • Productive government spending in infrastructure and pro-poor economic enhancement programs
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• • •
ASEAN Watch 1. PHL is economic bright spot in Asia
Export diversification that support growth expansion Significant growth of agriculture exports Government’s transparent policies encouraging foreign
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he Philippines was cited as an “economic bright spot in Asia” by The New York Times citing a young, growing population, and improvements in the government and efficiencies as forces driving growth amid a backdrop of tentativeness in the rest of the world.
The New York Times’ Floyd Whaley wrote the article titled “A youthful populace helps make the Philippines an economic bright spot in Asia,” where he said a “high population growth rate, long considered a hindrance to prosperity, is now often seen as a driving force for economic growth.”
2. ASEAN braces for regulatory reforms
investors to take a closer look at the Philippines “Good governance is inspiring investors,” Varela said. (MAB 08/30)
STATWATCH 2.1M Tourist arrivals in H1 2012 59.6% Overall business confidence index for Q4 2012 52.6 Filipinos’ financial quotient (Fin-Q)
6.1%
PHL gross domestic product (GDP) growth in H1 2012 vs. 4.2% in H1 2011
5.9% PHL GDP growth in Q2 2012
About 61% of the population in the Philippines is of working age, between 15 and 64. That figure is expected to continue increasing, which is not the case for many of its Asian neighbors, whose populations are aging, the article reads.
It added that the Philippine economy is being sustained by a string of confidence votes from international ratings agencies, investors, and financial institutions. (BMI 08/28)
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related matters was convened recently to start some discussions as this would impact on the country’s trade and investments.
he Association of Southeast Asian Nations (ASEAN) is creating a template to establish regulatory reforms that will guide the region in its trade negotiations with other regional trade partners as part of the planned regional economic integration by 2015. Department of Trade and Industry (DTI) Undersecretary for Industry Development and Trade Policy Group (IDTPG) Adrian S. Cristobal Jr. said there have been initial discussions on this in ASEAN. As such, the Philippine government’s inter agency committee on tariff and
This template would serve as ASEAN’s guiding principles, which will not supplant existing ASEAN agreements but rather broaden the economic reach of ASEAN when they negotiate for other regional trade deals or the so-called ASEAN + 3. ASEAN has entered into regional free trade agreement (FTA) deals including China, European Union (EU), Japan, United States (U.S.), Australia-New Zealand, and India.
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On top of that, individual ASEAN members also conduct their own bilateral FTAs with other trading partners. These FTAs are no longer governed by ASEAN rules. In July this year, the Philippines hosted the first ASEAN Regulatory Reform Symposium (ARRS) for ASEAN integration in preparation
What’s New?
Philippine Postal Permit No. PM-04-08
(A synopsis of selected book acquisitions at the DTI-TIIC library)
Legend: BMI MAB PDI TPS
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Business Mirror Manila Bulletin Philippine Daily Inquirer The Philippine Star
Title : Marketing Plan: Building the Profitable Preferred Brand Author : Go, Josiah; GoEscareal, Chiqui
for the ASEAN full economic integration or the ASEAN Economic Community (AEC) by 2015. The AEC envisions a single market and production base, a competitive economic region, equitable economic development, and integration into the global economy by 2015. (MAB 08/28) Title : Make Your Website Sell: The Ultimate Guide to Increasing Your Online Profits Author : Wylie, Jed
Call Number : 06.01/GO/2012
Call Number : 06.01/WYL/2012
This book targets two groups of constituents: the marketing practitioners and senior college students taking advanced marketing and management courses. It was written as if it would be delivered as a live workshop and has at least ten features that make it unique: comprehensive marketing definition, user-friendly presentation, Philippine setting, ready-to-use forms or worksheets which are modifiable to suit specialized situations, exclusive material e.g. interviews with top marketers of the Philippines companies, relevant experience and international education of the authors themselves, the tried and tested marketing plan workbook which is continually being updated, endorsement by the Philippine Marketing Association and Association of Marketing Educators and the 120 contributors to make the case examples as diverse and more relevant.
This book tells you how to get more visitors to your website and turn them into customers, making your website an instant online success. The publication provides help that gets you to the top in Google using search engine optimization; shows you precisely how to profit from Google AdWords; teaches you the seven vital principles of internet marketing; shows you the unique thinking behind running a successful website; gives you a proven system for winning business through the power of email; tells you how to find the perfect web design partner; gives you a step-by-step project management guide to building a website; shows you the techniques for growing your business by analyzing your visitor; and finally gives you the proven strategy for success.
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