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May 05, 2014 1
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05 May 2014 Vol. 19, No. 09
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 5 more DTI offices certified to ISO 9001 Inside DTI DTI leads post-Yolanda livelihood efforts Good News, Philippines! 1. PHL improves rank in WEF Global Enabling Trade Report 2. More Japanese firms to invest in PHL 3. PHL removing barriers to doing business to attract more job-creating investments MSMEs 1. DTI-Antique conducts financing forum 2. DTI-11 eyes 52 projects under SSF 3. DTI-Isabela provides SME assistance Business Update 1. BOI sees delay in IPP 2014 release 2. Identify perk beneficiaries first--DTI 3. Every 3rd week of November eyed as Nat’l Entrepreneurs Week
Consumers News 1. Solons seek to set up ‘Emergency Warehouse’ in calamity areas 2. Shops told to go for Bagwis Seal of Excellence 3. Seniors can use gov’t-issued IDs to avail discounts Feature PTTC gets BERDE award Asian Watch Asia Pacific-based American CEOs urged to invest in PHL Statwatch What’s New?
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Focus 5 more DTI offices certified to ISO 9001
Vol. 19, No. 09 2
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ive more Department of Trade and Industry (DTI) offices have been awarded ISO certifications, bringing to 28 the total number of DTI offices now certified to ISO 9001:2008 Quality Management System (QMS). In addition, 18 more offices are currently working on their certifications and the Department aims to have the Head Office, including the regional offices, 100% certified to ISO 9001:2008 by end-2015. DTI Offices certified to ISO 9001
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Human Resource Development and Personnel Service (HRDPS) Financial Management Service (FMS) Management Information Service (MIS) Office of Legal Affairs (OLA) Bureau of Trade Regulation and Consumer Protection (BTRCP)
“I commend every member of the DTI Family who has imbibed the habit of constant improvement – of always bettering themselves – and instilled the culture of quality management: Quality in our work, in our systems, in our dealings with clients, in our interaction with colleagues, in how we spend our time, and in our overall way of life,” DTI Secretary Gregory L. Domingo said. Domingo challenged the 18 offices that are now working on their ISO certifications to do so with passion and commitment and urged them to draw inspiration from the success of certified offices as they go through the exercise. “I am eagerly looking forward to seeing all DTI offices and attached agencies certified to ISO in the very near future,” he said. “ISO is a very important part of our quest to raise the standards
in government. Let us all remember to leave an imprint on our work, a mark of quality, excellence, and having made a difference,” he added. Certification International Philippines, Inc. (CIPI) Managing Director Renato V. Navarette congratulated the awardees for being able to establish their own QMS. “At the end of the day, it can help them see to it that what they do remain focused on their targets, and that these targets are always aligned with what their external stakeholders expect of them. In other words, achieving desired outcomes,” Navarette said. He said though many strive for quality, without a system like ISO 9001:2008, it is very hard to achieve. Meanwhile, DTI Management Services Group (MSG) Undersecretary Nora K. Terrado presented to the DTI officials and employees the Certificate of Accreditation awarded to the Department by the Civil Service Commission (CSC) for having met all the requirements for Level 2 of the program to institutionalize meritocracy and excellence in Human Resource Management. “We are one of the few agencies that have received this accreditation ahead of many. This is a very important milestone because this is an assurance that we are making progress in beefing up our performance management system. People and process will help achieve our aspiration in becoming the Agency of Choice,” she said.
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Inside DTI DTI leads post-Yolanda livelihood efforts
May 05, 2014 3
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he Department of Trade and Industry (DTI) has been designated as the lead agency in the Livelihood Cluster under the recovery framework of the government’s post-Yolanda recovery program. Under the Yolanda Rehabilitation and Recovery Plan, five clusters were established to facilitate the formulation of plans and programs for the Yolandaaffected areas including an overall strategic vision and integrated short-term, medium-term, and long-term programs. 5 Clusters under the Yolanda Rehabilitation and Recovery Plan
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Infrastructure Livelihood Resettlement Social Services Support
The DTI is also a member of the Infrastructure Cluster which is headed by the Department of Public Works and Highways (DPWH). The Office of the Presidential Assistant for Rehabilitation
Good News, Philippines! 1. PHL improves rank in WEF Global Enabling Trade Report
2. More Japanese firms to invest in PHL
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and Recovery (OPARR) is mandated to unify government efforts in rehabilitating typhoon Yolandaaffected areas. Yolanda Rehabilitation and Recovery Plan Livelihood Cluster Lead Agency • DTI Members Department of Labor and Employment (DOLE) • Department of Social Welfare and Development (DSWD) • Department of Tourism (DOT) • Department of Agriculture (DA) • Department of Environment and Natural Resources (DENR) • Department of Science and Technology (DOST) • Department of Agrarian Reform (DAR) • National Anti-Poverty Commission (NAPC) • Housing and Urban Development Coordinating Council (HUDCC) • National Commission on Indigenous Peoples (NCIP) • National Housing Authority (NHA) • Office of Civil Defense (OCD) • Office of the Presidential Adviser on the Peace Process (OPAPP) • Government Financial Institutions (GFIs)
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he Philippines now ranks 64th out of 138 countries in the World Economic Forum (WEF) Global Enabling Trade Report (GETR).
Singapore ranked the highest in ASEAN and the world, followed by Malaysia at the 25th spot, Thailand at 57th, and Indonesia at 58th.
The report said the Philippines showed significant improvements in enabling trade, rising from 92nd place out of 125 economies in 2010 and 72nd out of 132 economies in 2012. The Philippines also ranked 5th among the nine Association of Southeast Asian Nations (ASEAN) countries included in the WEF trade index.
The report said the Philippines “does well” on the domestic and foreign market access pillars. However, it needs improvement with respect to the other five pillars of the index. (MAB 04/02)
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ore Japanese investors are set to invest in the Philippines while companies already in operations are firming up expansion programs here, Philippine embassy officials said.
The Mindanao peace accord opens up the South for agribusiness and mining investments even as Japanese firms venture into creative content and game development, outsourcing
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and infrastructure projects, they pointed out. Second Secretary and Consul of the Philippine Embassy in Japan Hans Siriban said Viet Nam, Indonesia, and the Philippines are on the radar map of Japanese businesspeople. “We are the closest Association of Southeast Asian Nations (ASEAN) economy to Japan and is probably the cheapest,” said Ambassador Manuel M. Lopez.
3. PHL removing barriers to doing business to attract more job-creating investments
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he government is working further to remove barriers to doing business in the country to attract and expand investments that provide more job opportunities.
“We are creating the enabling environment so that there will be more jobs,” National Economic and Development Authority (NEDA) Assistant DirectorGeneral Rosemarie Edillon said. Edillon said the country is further simplifying business processes by cutting the number of signatures required for getting the business
MSME News 1. DTI-Antique conducts financing forum
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he Department of Trade and Industry (DTI)-Antique recently conducted a financing forum for micro, small, and medium enterprises (MSMEs) affected by the super typhoon Yolanda. The activity was an offshoot of a Post Disaster Needs and Assessment (PDNA) initiated by the Office of Civil Defense (OCD), with the DTI as partner.
2. DTI-11 eyes 52 projects under SSF
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he Department of Trade and Industry (DTI)-11 is looking at 52 projects under the Shared Service Facility (SSF) program with a P39-M budget allotted by the government this year.
He said Japanese companies are interested in setting up business process outsourcing (BPO) operations in the Philippines due to tax perks for export-oriented businesses, Lopez said. “We have major conglomerates looking already at investments in the infrastructure and transportation base in the country,” Commercial Counselor of the Philippine Embassy in Japan Dita Angara-Mathay said. (TPS 04/03)
permit and reducing processing time for licensing and registration. “There are a lot of other processes that we want transacted online that would really speed up the business procedure. We also have the National Single Window (NSW) which will prepare the country for the Association of Southeast Asian Nations (ASEAN) 2015,” she said. Edillon said these are some of the initiatives identified in the original Philippine Development Plan (PDP) which were pipelined for implementation this year.
The Business Assistance Center (BAC) has a ready assistance package which includes business consultancy, credit facilitation, and other DTI-related services in the field accessible and nearer to MSMEs. Individual consultation was conducted and application forms were distributed to interested parties after the forum. “The SSF is a strategic complementary project that intends to balance off existing efforts and programs to achieve inclusive growth as envisioned by the current administration,” said DTI-11
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Officer-in-Charge Ma. Belenda Q. Ambi. The current SSF funding is an additional fund to last year’s allocation where some P10M funded several projects that were proposed
3. DTI-Isabela provides SME assistance
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he Department of Trade and Industry (DTI)-Isabela is continuously providing assistance to micro, small, and medium entrepreneurs (MSMEs) to boost their productivity and improve their marketing. Assistance is in the form of processing equipment and facilities through the DTI’s Shared Service Facility (SSF) program, said DTI-Isabela Provincial Director Ma. Salvacion Castillejos.
Business Update 1. BOI sees delay in IPP 2014 release
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he Board of Investments (BOI) expects a delay in the release of the Investments Priorities Plan (IPP) 2014. BOI had previously set the release of IPP 2014 in the first quarter of the year, but it has decided to move the schedule due to the thorough process being undertaken in crafting the blueprint. The blueprint will be different from the past IPPs, as it will be valid for three years but will be subject to an annual review. IPP is a list of promoted areas of investments entitled to government incentives based on value-added
2. Identify perk beneficiaries first--DTI
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o hasten fiscal incentives rationalization, the sectors that will receive incentives before setting the perks structure should be identified first, Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said.
by various micro, small, and medium entrepreneurs (MSMEs) in the region, Ambi said. This early, she said nine projects are ready to be launched and established for this year’s allocation. Castillejos said among the program beneficiaries are groups, associations, and cooperatives engaged in food processing and other activities. Recipients were selected MSMEs who possessed the necessary requirements to qualify under the program and will be responsible in the machine maintenance and operations.
activities to the industry, capacity, job generation, and its multiplier effect. Department of Trade and Industry -Industry Development and Trade Policy Group (DTI-IDTPG) Undersecretary and BOI Managing Head Adrian S. Cristobal Jr. said in this year's IPP, they had emphasized sectoral consultations in the industries so they can go in depth with their discussions in each industry. BOI had finalized the framework and draft presentation last March and it was put up for consultations in April.
Domingo emphasized that this must be done to highlight other segments of the economy that need government incentives for them to breakout and explore their potentials. “It is harder to create a law if you want to identify both beneficiaries
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and incentive structure at the same time because the debates will take too long,” he said.
3. Every 3rd week of November eyed as Nat’l Entrepreneurs Week
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House of Representatives member has filed House Bill 4022 or The National Entrepreneurship Week Act of 2014 to encourage the youth to be self-starters and innovators in entrepreneurship.
and the Commission on Higher Education (CHED) are directed to plan and implement activities for the observance of National Entrepreneurship Week, in coordination with the Department of Trade and Industry (DTI).
Quezon City Representative Alfredo D. Vargas III eyed November to introduce the youth to the possibilities of development and progress through entrepreneurship.
Vargas said the National Entrepreneurship Week can be observed through the holding of school trade fairs and seminarworkshops, thus serving as the perfect venue for young entrepreneurs to share their success stories to students. (TDT 23/03)
Under the measure, the Department of Education (DepEd)
Consumer News 1. Solons seek to set up ‘Emergency Warehouse’ in calamity areas
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ouse members have proposed House Bill 3781 or the "Emergency Warehouse Act," which aims to ensure the flow and availability of basic goods and protect consumers from undue increase of prices and possible hoarding or price manipulations by traders during disasters. Representative Victoria Noel (Party-list, An Waray) authored the Emergency Warehouse Act with Reps. Neil Benedict Montejo (Party-list, An Waray) and Josephine Veronique Lacson-Noel (Lone District, Malabon City). The bill refers to an emergency warehouse as any structure or vehicle with protected enclosure for storage of large volume of goods and stocks and at the same time serves as an outlet in selling such goods and stocks.
2. Shops told to go for Bagwis Seal of Excellence
He said there are sectors that no longer need fiscal incentives but are still enjoying the benefits.
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he Department of Trade and Industry (DTI) is urging shops to participate in the Department’s Bagwis Program and vie for the Bagwis Seal of Excellence.
Salient Provisions of the Emergency Warehouse Act
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In the event of calamities and disasters, the Department of Trade and Industry (DTI) shall immediately set up and deploy emergency warehouses in calamity areas to sell basic necessities or prime commodities to affected consumers at discounted and tax-free prices. The affected consumers may avail of the discounted and tax-free prices subject to the limitations and conditions set by the DTI. The DTI shall, in consultation with the National Disaster Risk Reduction and Management Council (NDRRMC), determine the period of deployment of the emergency warehouse in a particular calamity area. All goods to be sold in emergency warehouses shall be exempt from the VAT and other sales taxes.
DTI’s Bagwis Program, a Certified Establishment Program recognized by the Association of Southeast Asian Nations (ASEAN) Committee on Consumer Protection (ACCP)
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as among the best systems of consumer protection in the Philippines, commends businesses that observe consumer rights and interests and fair trade.
and gold —is a certification granted under the program to qualifying establishments that will receive the level of award in accordance to the criteria it meets.
Its goals are to encourage excellent practice of business ethics and sustain an impartial and honest marketplace via spontaneous self-regulation and exceptional service.
It is conducted nationwide through DTI regional and provincial offices. Candidates are filtered by DTI in cooperation with groups and organizations from the private sector.
The Bagwis Seal of Excellence — categorized into bronze, silver, Bagwis Seal of Excellence categories and criteria Category
Criteria
Bronze
Compliance with fair trade laws (e.g. consumer act, price act, price tag law), presence of a consumer welfare desks or recognized customer service counter
Silver
Criteria for Bronze plus adherence to social responsibilities (e.g. participation in national and local government activities like livelihood programs and price stabilization, and sound purchasing policy)
Gold
Criteria for Silver plus observation of ISO 9001 Quality Management System (QMS)
Private sector groups that assist in screening candidates
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3. Seniors can use gov’t-issued IDs to avail discounts
Federation of Filipino Chinese Chamber of Commerce & Industry (FFCCCI) Federation of Philippine Industries (FPI) Nationwide Association of Consumers, Inc. (NACI) Philippine Product Safety & Quality Foundation (PPSQF)
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he Department of Social Welfare and Development (DSWD) maintained that government-issued identification (ID) may be used in place of Senior Citizen ID (SC ID) issued by the Office for Senior Citizens Affairs (OSCA) to avail of discounts and privileges under the Republic Act (RA) No. 9994, or the Expanded Senior Citizens Act of 2010. This is in accordance to provisions of Rule III, Article 5.5 of the Implementing
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Philippine Retailers Association (PRA) Philippine Amalgamated Supermarkets Association (PAGASA) Philippine Association of Supermarkets, Inc. (PASI) Philippine Chamber of Commerce & Industry (PCCI)
Rules and Regulations (IRR) of RA 9994, saying Philippine passport or other valid documents that reflect the owners’ nationality, age or birthdate, proving that the holder is a Filipino senior citizen, may be presented as proof to avail of the benefits and privileges. Rule IV, Article 6 of the IRR states that the OSCA-issued SC ID shall be used as proof of a person's’ eligibility, without reference to the provision of Rule III, Article 5.
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The interagency committee, National Coordinating and Monitoring Board (NCMB), chaired by DSWD, justifies this provision as a way to avoid abuse of the benefits under RA 9994 and to enable the record of senior citizens who are able to avail of the privileges. The NCMB, which has the responsibility of monitoring the promulgation of RA 9994, further clarified the provision as an agreement by the stakeholders while creating the IRR in 2010, that the general rule for availment of the privileges will require the use of the SC ID. In failure to present the SC ID, other government-issued IDs may be used, which should be honored by business establishments.
FEATURE PTTC gets BERDE award
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he Philippine Trade Training Center (PTTC) was given a Building for Ecologically Responsive Design Excellence (BERDE) Award for Efficient Lighting Certification Program by the Department of Energy (DOE) and the Philippine Green Building Council (PHILGBC). The award came after the DOE and PHILGBC appraised and checked the potential energy savings of the PTTC building under the Efficient Lighting Certification program of the Philippine Energy Efficiency Project-Efficiency Building Initiative (PEEP-EBI). Lighting fixtures in the PTTC building underwent retrofitting where the T12 lights with standard magnetic ballasts of 40 watts (W) and 20W were replaced with T5 lights with electronic ballasts of 28W and 14W, while its 250W and 400W metal halide lamps were replaced with 135 light-emitting diode (LED) lamps.
NCMB member agencies
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Department of Health (DOH) Department of the Interior and Local Government (DILG) Department of Justice (DOJ) Department of Trade and IndustryBureau of Trade Regulation and Consumer Protection (DTI-BTRCP) NCMB member non-government organizations (NGOs)
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Alliance of Retired Postal Employees and Senior Citizens (ARPES) Coalition of Services for the Elderly (COSE) Federation of Senior Citizens Association of the Philippines (FSCAP) Louise de Marillac Foundation St. Vincent Foundation for Children and Aging, Inc.
The building was found to potentially save 28,856.33kWh of energy, equal to P157,844.13 annual financial savings. Under the PHILGBC’s BERDE program, the BERDE Green Building Rating System measures the environmental performance of structures that surpass existing requisite building and environmental regulations and standards. Meanwhile, the award is under the BERDE Energy Category that includes other divisions. BERDE Energy Category divisions
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Energy efficiency improvement Energy simulation Improvement of operation and maintenance Integration of sustainable design Monitoring of energy consumption Use of automation Use of improving technologies and energy efficient equipment
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ASEAN Watch Asia Pacific-based American CEOs urged to invest in PHL
May 05, 2014 9
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sia Pacific region’s American chief executive officers (CEOs) were urged to invest in the Philippines as the country improves its business environment and the economy’s progress continues. Department of Trade and Industry -Trade and Investment Promotions Group (DTI-TIPG) Undersecretary Ponciano Manalo Jr. invited American business executives to expand and develop their ventures in the Philippines as the country continues to create economic momentum pushed by the current administration’s good governance policy and ease of doing business. “Our investment landscape has improved significantly. The fundamentals for growth are substantial. The Philippines is operating on a favorable economic backdrop,” Manalo said during the 2014 Asia-Pacific Council of American Chambers of Commerce (APCAC) Spring Summit City.
STATWATCH P39M Fund allotted by DTI-11 for the 52 projects under the Shared Service Facility (SSF) program this year
P157,844.13 Energy savings by the Philippine Trade Training Center (PTTC) every year due to its energy-saving practices, earning for them the Building for Ecologically Responsive Design Excellence (BERDE) Award
64th The Philippines’ ranking out of 138 countries in the World Economic Forum (WEF) Global Enabling Trade Report (GETR). PHL also ranked th among the nine Southeast Asian countries included in the WEF trade index
He also told the CEOs of the 7.2% gross domestic product (GDP) growth of the country last year which makes it the second fastest growing economy next to China. The 2013 GDP growth was higher than the previous year’s 6.8% growth rate.
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Furthermore, the country has been developing its trade policy through multilateral and regional fora such as the World Trade Organization (WTO), Asia-Pacific Economic Cooperation (APEC), and Association of Southeast Asian Nations (ASEAN).
bringing to the total number of DTI offices now certified to ISO 9001:2008 Quality Management System (QMS)
“I believe and we expect that trade and investment between the Philippines and ASEAN and between the Philippines and the United States (U.S.) will continue to grow as we open more areas of trade cooperation between the U.S. and the Philippines,” Manalo said.
product (GDP) growth rate in 2013, the second fastest growing economy next to China; higher than the previous year’s
5 more Department of Trade and Industry (DTI) offices awarded ISO certifications,
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7.2% PHL gross domestic
6.8% growth rate
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What’s New?
Title : The Report: The Philippines 2014
Title : SPEI (Selected Philippine Economic Indicators): 2010 Yearbook
Publisher : Oxford Business Group Call Number : 45 608/03/OXF/2013
Publisher : Bangko Sentral ng Pilipinas Call No. : 45 608/STAT/BSP/2013
This book presents country profile overview and analysis on the economy. Also discusses some analysis, regulations and development targets on trade and investments, banking, capital markets, energy, tourism, transport and infrastructure, business process outsourcing (BPO), telecommunications and information technology (IT), and some other industries, as well as health and education system of the country. 260p.
This publication provides statistical data on external accounts, financial system, fiscal accounts, income and expenditure, prices, and other real sector accounts which are presented in yearly basis. It also contains symbols and abbreviations, concepts and definitions of terms used in discussion and presentation of statistical tables. 136p.
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Vol. 19, No. 09 10
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