dataline
February 11, 2012 1
February 11, 2013 Vol. 17, No. 03
dataline
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 BOI and PEZA investments hit P672.3B in 2012
Business Alert 1. EVAP prepares e-vehicles roadmap 2. Taguig extends BOSS operations
Inside DTI DTI launches Metro Festival 2013
Consumer News 1. DTI warns public against fake ICC stickers 2. Freight forwarders to face charges 3. Be a wise consumer
Good News, Philippines! 1. PHL jumps 10 notches in economic freedom 2. PHL at the cusp of investment-driven growth 3. Barclays sees solid growth for PHL this year 4. Taiwanese investments relocate here MSME/OTOP News 1. DTI to focus on MSMEs, manufacturing 2. DTI opens facility for CAR coffee growers and processors 3. Netherlands offers matchmaking facility for MSMEs 4. APEC bats for MSME innovation
Features PEZA firms produce 75% of PHL exports ASEAN Watch 1. PHL pushes efforts for ASEAN integration 2. Asia seen resilient to global headwinds Statwatch DTI Direct What’s New?
dataline
Focus BOI and PEZA investments hit P672.3B in 2012
Vol. 17, No. 032
C
ombined investments approved by the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) rose by 2.3% to P672.3B in 2012 from P657.2B in 2011 on the back of sustained optimism on the country’s economic growth. Of the total amount, the BOI generated P360.35-B investments while PEZA shared P311.9B.
Entitlements to incentives are carefully studied to ensure these are granted only to quality projects.
Notably, PEZA-registered investments in 2012 grew by 8.2% over the previous year’s P288.3-B approvals. The BOI said some investments applied for in 2012 were only recently approved, which means they will be counted in the investment commitments for 2013.
Meanwhile, PEZA Director-General Lilia B. De Lima said investments in the country’s economic zones grew last year on the back of reinvestments and expansions of electronics firms.
BOI Executive Director Lucita P. Reyes said the BOI no longer accepts power projects except those utilizing renewable energy (RE) resources. She added that the issuance of Executive Order (E.O.) 79 or the new mining policy has put mining firms on a wait-and-see mode.
“Last year, the base was already very high. Growth drivers are still the same. Majority of the growth are still on the electronics sector and most of them are reinvestments or expansions and we are happy about that,” De Lima said.
Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said BOI would rather concentrate on registering projects based on LVA to ensure that the tax
DTI launches Metro Festival 2013
Last year, the agency already started using a stringent set of new criteria in the evaluation of projects seeking incentives with the BOI.
These criteria are a project’s net value added (NVA), job generation, multiplier effect, and measured capacity.
Reyes, however, said the BOI was able to register quality investments with high local value added (LVA) in 2012.
Inside DTI
incentives granted trickle down to the economy.
She said there is a lot of interest from investors to set up shop in the Philippines, noting that the agency is working hard to promote the country. She added that the country continues to have a distinct competitive advantage against its neighbors because of competent Filipino workers and low costs.
he Department of Trade and Industry (DTI) has launched Metro Festival 2013 at the Bureau of Domestic Trade (BDT) Showroom in the DTI Main Building in Makati City.
T
health and wellness products (February), and wearables (March).
The festival will run until March 2013 and features each month products that include food items (January),
Over 40 micro, small, and medium enterprises (MSMEs) from the National Capital Region (NCR)
About 20%-50% discount will be offered in selected items during the trade fair.
dataline
February 11, 2012 3
joined the event to promote their finest products and to reach a wider market. “We invited to the Metro Festival MSMEs that don’t have the capability to promote their products and those that cannot compete in the supermarkets,” DTI-NCR Officer-in-Charge Ferdinand L. Manfoste said. Manfoste said the Metro Festival serves as a venue for consumers to see products made from Metro Manila cities that they could patronize and truly be proud of. Products on sale are made by MSMEs that were supported by DTI through product development programs, product packaging and design, technical assistance, and marketing support.
Good News, Philippines! 1. PHL jumps 10 notches in economic freedom
T
he Philippines jumped 10 notches in The Heritage Foundation’s 2013 Index of Economic Freedom, from 107th to 97th place, the highest improvement among Southeast Asian nations. “We are encouraged by the country’s improvement, which is proof of the country’s continued development,” Presidential Spokesperson Edwin Lacierda said. The country posted an economic freedom score of 58.2 points for 2013, or 1.1 points better than the previous year’s 57.1 points.
2. PHL at the cusp of investment-driven growth
T
he Philippines is at the cusp of investment-driven growth with the contribution of real investments now at 20% or so for the past couple of quarters, international banking firm Citi reported. Citi Country Officer Sanjiv Vohra explained that a better fiscal health is enabling the government to be more proactive in stimulating the economy.
Manfoste added that trade fairs such as this encourage MSMEs to expand their businesses and entice people to start their own business. “MSMEs are important in employment generation in the communities. They contribute to the development of communities,” he said. Metro Festival is open to the public, Mondays to Fridays, from 9:00 a.m. to 7:00 p.m. at the BDT Showroom. Interested buyers may also purchase in bulk. Metro Festival is spearheaded by the DTI-NCR, in cooperation with the BDT, Bureau of Micro, Small and Medium Enterprise Development (BMSMED); and Philippine Chamber of Commerce and Industry (PCCI).
In Southeast Asia, the Philippines recorded the highest score improvement of 1.1 points, setting a trend of continuous growth over the past two years. This brought the country even closer to the world average score of 59.6 and above the Asia Pacific regional average of 57.4. Notably, the Washington-based think tank said the Philippine economy had been on a “steady path of economic expansion,” growing at an average annual rate above 4.5% over the past five years, weathering the global economic slowdown with a “high degree of resilience.” (PDI 01/15) Growth drivers in 2013 Accelerated government spending Election campaign spending Fiscal spending Improving exports Infrastructure spending Peso appreciation Resilient Overseas Filipinos’ (OFs) remittances • Stable domestic demand • Start of public-private partnership (PPP) project implementation • Upgrades in gross domestic product (GDP) forecasts • • • • • • •
dataline
Vol. 17, No. 034
“Aside from the public-private partnership (PPP) infrastructure agenda, the government is embarking on a P325-B multi-year flood works and drainage program, a spending larger than the P233-B cost of the PPP projects. We believe this may lift the country’s investment-
3. Barclays sees solid growth for PHL this year
B
ritish banking and financial services firm Barclays raised its growth outlook for the Philippines this year as external headwinds mellowed and election-related spending is expected to kick in. Barclays likewise maintained its projection that the country could snag its first investment grade rating by the second half of 2013 given a reform-focused government and solid external balances.
4. Taiwanese investments relocate here
gross domestic product (GDP) ratio that will eventually accelerate economic growth,” Vohra said. He said Citi sees more pronounced 2012’s growth drivers in 2013 that will sustain the positive momentum. (MAL 01/17)
growth forecasts for the Philippines to 6.5% for 2012 and 5.9% for 2013. The bank earlier projected Philippine growth to settle at 6.2% in 2012 and 5.6% in 2013. The higher growth projection for 2013 hinges on expectations of a recovery in exports as demands pick up in markets abroad and a spending boost from the midterm elections.
With external demand also gradually improving, Barclays is revising its
Also, export performance is gradually improving in line with external demand, it said. (MAL 01/15)
T
has become the beneficiary of Taiwanese firms relocating from China because of the increasing cost of doing business there.
MECO President and Chief Executive Officer (CEO) Amadeo R. Perez Jr. said the Philippines
At least 16 Taiwanese firms had transferred their operations to the Philippines in 2012, most of which were locating in economic zones in Clark, Batangas, Cavite, and Laguna.
aiwanese investments in the Philippines rose to USD 400M in 2012 from USD 300M in 2011 as more investors migrated into the country, the Manila Economic and Cultural Office (MECO) reported.
(MAB 01/13)
MSME/OTOP News 1. DTI to focus on MSMEs, manufacturing
T
he Department of Trade and Industry (DTI) is focusing on helping micro, small, and medium enterprises (MSMEs) and manufacturing to take advantage of the current sweet spot for the country and to make growth more inclusive. DTI Secretary Gregory L. Domingo said DTI has made great strides in balancing the consumer welfare and trade and investments assistance in the country.
“The thrust of this government is inclusive growth. Everybody has to benefit from the growth. This is why the government’s top two priority sectors are tourism and agriculture because they translate more benefits to the poor,” said Domingo. Domingo said DTI is helping MSMEs to take advantage of healthy consumption spending. People had to be taught to be entrepreneurs, he said.
dataline
2. DTI opens facility for CAR coffee growers and processors
February 11, 2012 5
The DTI is enabling MSMEs to export or be part of the supply chain of exporters. They offer seminars to inform MSMEs on how they can
avail themselves of the benefits of the free trade agreements (FTAs) the Philippines has signed up with other countries.
T
Operations and Development Group (RODG) Merly M. Cruz said.
he Department of Trade and Industry (DTI) has opened a shared service facility (SSF) in Kalinga to assist coffee growers and processors in the Cordillera Administrative Region (CAR). “The coffee industry’s access to the facility will be complemented by other strategies of the DTI for the big push for micro, small, and medium enterprises (MSMEs). These strategies are industry clustering, product development, market promotion, credit and financing, and microenterprise development assistance and support,” DTI Undersecretary for Regional
3. Netherlands offers matchmaking facility for MSMEs
T
he Netherlands is offering a matchmaking facility for micro, small, and medium enterprises (MSMEs) in exploring trade opportunities, the Philippine Exporters Confederation Inc. (Philexport) said. “The matchmaking facility puts those companies in touch with Dutch business. The goal is to stimulate joint business relations that will strengthen the private sector in developing countries and upcoming markets,” Netherlands Embassy
4. APEC bats for MSME innovation
T
he recently concluded Asia Pacific Economic Cooperation (APEC) SME Summit 2013 urged Filipino entrepreneurs, particularly micro, small, and medium enterprises (MSMEs), to innovate to meet the global market demands. Conducted by the Makati Business Club (MBC), the summit presented successful business innovators in the APEC region to inspire MSMEs in recreating the way they do
CAR’s coffee sector is included in the first 24 industry clusters that will enjoy assistance under the DTI’s National Industry Cluster Capacity Enhancement Project (NICCEP). The coffee facility is the first of 25 such facilities to be opened in the first quarter of 2013. The DTI plans to establish 1,000 SSFs. The DTI began the three-year NICCEP in 2012 with funding from the Japan International Cooperation Agency (JICA). (BMI 01/14) Economic Affairs Section Senior Commercial Officer Patricia S. Alvendia said. Alvendia said Philippine companies are welcome to establish joint ventures with Dutch firms by applying at the Netherlands Embassy in Manila, noting that interested companies must be operating for at least two years. The program will focus on agriculture, food, garments, machinery, and medicine. (BWD 01/13) business and break into local and international markets. With the theme “Breaking Barriers Through Innovation,” the summit hoped to challenge Filipinos to innovate their products, services, and business operations to compete in the global market. Department of Trade and Industry (DTI) Secretary Gregory L. Domingo praised APEC for its
dataline
Vol. 17, No. 036
aggressive support for MSMEs, adding that APEC Business Advisory Council’s (ABAC) extensive support
Business Alert 1. EVAP prepares e-vehicles roadmap
T
he Electric Vehicle Association of the Philippines (EVAP) is preparing a roadmap for the EV in the country. EVAP President Rommel T. Juan said the roadmap dubbed as “The Electric Vehicle Industry Growth Agenda 2013 to 2021” will be presented to Department of Trade and Industry (DTI) Secretary Gregory L. Domingo. The roadmap presents solutions and programs encouraging the EV industry’s development.
2. Taguig extends BOSS operations
T
he City of Taguig has extended its Business One-Stop Shop (BOSS) operations during weekends to accommodate more business registrations and renewal especially for those who have not much time to register during weekdays. “We know that business owners, especially those who are personally processing their documents, have limited time to register during weekdays which is why the BOSS will be open during weekends,” Taguig City Mayor Laarni L. Cayetano said.
Consumer News 1. DTI warns public against fake ICC stickers
T
he Department of Trade and Industry (DTI) has urged the public to be vigilant of fake Import Commodity Clearance (ICC) stickers being sold for P150 to motorcycle riders who failed to meet the deadline for helmet inspections. DTI Undersecretary for Consumer Welfare and Business Regulations Group (CWBRG)
will promote inclusive growth and greater acceptability of MSMEs’ economic role. The roadmap also forecasts the EV industry’s growth in the country, particularly the improved sales prospects for electric four-wheel vehicles, electric tricycles, and bicycles. The document predicted that 20% of new vehicles in 2015 would be electric. It covers a three-phase development period, with the first phase growth agenda unfolding from 2013 to 2015 the second phase from 2016 to 2018, and the third phase from 2019 to 2021. (MAB 01/17)
Cayetano, however, encouraged entrepreneurs to register during weekdays to avoid queues particularly during the last day of registration. Business Permits and Licensing Office (BPLO) Officer-in-Charge Atty. Fanella Panga-Cruz said BOSS puts in one place all requirements needed by business owners for registration such as barangay clearance, sanitary permit, and Bureau of Fire Protection (BFP) permit. (MAB 01/16) Zenaida C. Maglaya said Land Transportation Office (LTO) enforcers know the difference between the genuine and fake ICC stickers. Maglaya said offending sellers and buyers of fake ICC stickers will be charged with the Helmet Law violation aside from the P20,000 penalty.
dataline
2. Freight forwarders to face charges
February 11, 2012 7
T
he Department of Trade and Industry (DTI) has endorsed the filing of criminal charges against three freight forwarders to the Department of Justice (DOJ). Forwarders Al Rodah Marine Services, Rodah Cargo Services, and D’Winner Logistics Philippines, Inc. allegedly failed to deliver balikbayan boxes from abroad. “The DTI is seeking the DOJ’s assistance to conduct proper investigation on these foreign and local freight forwarders for swindling or estafa,” Philippine Shippers Bureau (PSB) Director-in-Charge Victorio Mario A. Dimagiba said.
3. Be a wise consumer
W
ith the wide array of products in the market, consumers might be confused of what is good for them. The Department of Trade and Industry (DTI) offers some basic reminders:
•
•
•
You have the “right to information” – one of the eight basic consumer rights. This is the right to be protected against dishonest or misleading advertising, labelling, and promotion. Information you need to know about a consumer product or service before making a purchase includes a product’s use, content, chemical and/or natural ingredients, net weight, number product care, manufacturer’s contact information, precautions, limitations, and expiration.
The DTI recommended to the DOJ that the firms be criminally charged to prevent them from victimizing other consumers. The Department has already revoked the registration and license to operate of D’Winner Logistics. Also, Rodah Cargo Services was issued a cease and desist order for continued operations without a license. Al Rodah Marine Services was the principal forwarder which then consigned the packages to the two other firms.
•
Before purchasing a product, read the label carefully to be informed of its use, content, ingredients, weight, and instructions on product care.
•
Before signing any document like warranties or guarantees, credit items or service contracts, read and understand all the provisions in the documents especially the fine prints.
•
Read newspapers, guides, or magazines before buying a product. Also, consult friends who you know have bought a similar product or availed themselves of the same service.
•
Look for the name, address, and other contact information of the manufacturer/distributor of the product or service. This would tell you who to contact in case you have queries or complaints about what they are selling.
•
To clarify something regarding the use of any product, do not hesitate to write or contact the manufacturer.
When a product is imported and its label is printed in a different language, it should have a direct translation to either English or Filipino.
dataline
Features PEZA firms produce 75% of PHL exports
Vol. 17, No. 038
M
ore than 75% of Philippine commodity exports are produced by 2,864 companies operating inside the 331 economic zones scattered in many parts of the country.
The companies have created about 915,000 jobs. Investments last year totalled P312B, up 8.19% from the previous year’s P288B.
Philippine Economic Zone Authority (PEZA) Director General Lilia B. De Lima said about 80% of the locators or investors in the zones are foreigners, dominated by Japanese firms.
Value of exports as of November last year was recorded at USD 36.83B, 4.79% lower than the USD 38.68B posted the year before. (MAL 01/15) 2012 Foreign investments that located in PEZA Country
% Share
Japan United States Netherlands United Kingdom Korea Singapore Germany Switzerland Others
De Lima said electronics/ semiconductors appear to have the biggest investments accounting for 42.52% of total investments from the time PEZA started operations in 1995 up to the end of last year. Total investments during the period stood at over P2T.
33.58 18.32 7.80 6.35 3.86 2.52 1.50 1.29 3.89
PEZA Performance Performance Indicators
2011
2012
Investments (in P billion) Direct employment Exports (in USD billion)
288.34 837,136 38.68
311.95 914,113* 36.83**
Growth (in %) 8.19 9.19 -4.79
*as of November 30, 2012 **January to November 2012
ASEAN Watch 1. PHL pushes efforts for ASEAN integration
T
he Association of Southeast Asian Nations (ASEAN) member states have formulated their respective national communication plans towards the goal of One ASEAN Community by 2015.
During the 47th Meeting of the ASEAN Committee on Culture and Information in Ha Noi, Viet Nam in December last year, the Philippines reported that all the ASEAN member states are ready to implement communication activities in support of ASEAN Community building following the approval and submission of their country communication plans.
The plans include communication activities in support of ASEAN’s three pillars, namely political-security community, economic community, and socio-cultural community. These national communication plans were drafted during a Technical Working Group (TWG) Meeting held in the Philippines in June last year under the direction of the ASEAN Ministers Responsible for Information. Member states agreed on common communication objectives, target audiences, and messages for each of the three pillars. The draft plans were then referred for approval
dataline
February 11, 2012 9
by the respective information ministries of the member states. With these plans in place, the ASEAN hopes to promote a secure and peaceful environment in the region, support equitable economic development among all members, and promote ASEAN as one caring and sharing community. ASEAN member states • • • • •
2. Asia seen resilient to global headwinds
Brunei Cambodia Indonesia Lao PDR Malaysia
• • • • •
Myanmar Philippines Singapore Thailand Viet Nam
S
overeign credit fundamentals in the Philippines and the rest of the Asia-Pacific region are to remain resilient to both global headwinds during 2013, credit rating agency Moody’s Investors Service said. Last year, the credit ratings of AsiaPacific countries Korea, Indonesia, and the Philippines were upgraded while Viet Nam and Pakistan were downgraded by one notch each. “Nevertheless, Asia-Pacific will maintain its top position in terms of total reserves, which are projected at USD 7T by end-2013,” Moody’s said. (MAL 1/15)
STATWATCH P672.3B Combined investments approved by the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) in 2012 vs. P657.2B in 2011
P360.35B
BOI-registered investments in 2012 vs. P368B in 2011
P311.9B PEZA-registered investments in 2012 vs. P288.3-B in 2011
USD 400M Taiwanese investments in PHL in 2012 vs. USD 300M in 2011 915,000
Jobs generated in economic zones from 1995 to November 2012
2,864 Companies located in PHL economic zones as of December 2012
31 PHL economic zones as of December 2012
97th Ranking of the PHL
in The Heritage Foundation’s 2013 Index of Economic Freedom v.s. 107th in 2012
dataline
Vol. 17, No. 0310
DTI Direct* Call Center Report SUMMARY OF CALLS Month-on-month CALL TYPE
Jan’12 Feb’12 Mar’12 April’12 May’12 June’12 July’12 Aug’12 Sept’12 Oct’12 Nov’12 Dec’12 Jan’ 13
Business Name
3,665
2,741 2,784
2,182
2514
2,243
1,889
1,606
1,419
1,493 1,515
761
1,877
1,917 1,496
2,370
2,017
42
860
653
670
895
990
2,629
2,128
2,235
Exports
4
7
6
7
4
5
12
3
4
2
3
4
8
Investments
0
1
0
6
3
0
2
2
1
3
1
0
1
MSMEs
2
10
5
19
18
8
14
13
30
29
19
9
19
1,050
529
438
504
4,494 3,027
3,582
4,426
Consumer Welfare
Others
1,157
1,179 1,251
878
1,080
1,023
920
858
891
TOTAL
5,580
4,798 4,699
3,762
4,514
4,269
5,466
4,610
4,580
CUMULATIVE CALL TYPE
January 2013
% vs. Total
Business Name
1,877
42.41
Consumer Welfare
2,017
Exports Investments
Janunary 2013
December 2012
% Increase/ Decrease
1,877
761
146.65
45.57
2,017
2,370
-14.89
8
0.18
8
4
100
1
0.02
1
0
N/A
MSMEs
19
0.43
19
9
111.11
Others
504
11.39
504
438
15.07
TOTAL
4,426
100.00
4,426
3,582
CALL RESOLUTION STATUS Total 2013
Resolved 4,422 (100%)
Referred 4, ( 0%)
*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.
For the Month of January 2013
Resolved 4,422 (100%)
Referred 4, ( 0%)
dataline
What’s New? (A synopsis of selected book acquisitions at the DTI-TIIC library)
February 11, 2012 11
Title : Scale Up Your Internet Startup: How to Start a Business While Working a Full Time Job
Title : Start Your Own Import/Export Business Your Step-byStep Guide to Success
Author : Dr. Larry Gamboa
Author : Krista Turner
Publisher : Shepherd’s Voice Publications, Inc.
Publisher : Entrepreneur Press
Call Number : 06.08/GAM/2012 Learn to monetize your passion. In this book, you will discover the best practices on how to earn from your passion, combining Internet marketing with a chosen topic like real estate investing or financial literacy or health and fitness. Also includes success stories of some entrepreneurs.
Call Number : 07/TUR/2010 Make the world your market without leaving home. This book gives valuable insights and practical advice for tapping into lucrative global markets, including overviews of the top foreign markets. It covers every aspect of the start-up process, including choosing the most profitable goods to buy and sell, setting up and maintaining a trade route, using the Internet to simplify transactions, getting government assistance to find products and customers; knowing essential trade law information to keep business in compliance, choosing customs broker; getting updated with the latest government policies, and discovering proven methods for finding contacts abroad.
Legend: BMI BWD MAB MAL PDI
-
Business Mirror Business World Manila Bulletin Malaya Philippine Daily Inquirer
Editor-in-Chief: Anne L. Sevilla Managing Editor: Vic S. Soriano Associate Editor: Resty P. Par Writers: Jam A. Hourani, Elaine M. Lazaro, Emman R. Caleon Design/Layout: Ren C. Neneria To subscribe, email: publications@dti.gov.ph