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May 06, 2013 1
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May 06, 2013 Vol. 17, 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 13 DTI offices among top performers in red tape test
Business Update DTI, DCOM to grant seal on online selling sites
Inside DTI 60 MSMEs showcase best Capiz products
Consumer News 1. Dilapidated LPG tanks endanger public 2. Mitsubishi recalls 1,420 cars
Good News, Philippines! 1. PHL food sells P2B in Dubai 2. Dutch firm to put up coco peat plant in Mindanao 3. BPO firm bullish on PHL, eyes 35% hike in workforce
Features Daylight breaking?
MSME/OTOP News 1. GFIs lend P30.4B in 2012 2. Incentives for banks lending to MSMEs pushed 3. PCCI calls for MSME property rights protection
Statwatch
ASEAN Watch Davao expects benefits from ASEAN RORO
What’s New?
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Focus 13 DTI offices among top performers in red tape test
Vol. 17, No. 09 2
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hirteen Department of Trade and Industry (DTI) offices – notably all from the regions – have earned “excellent” ratings to emerge among the top 50 performers in the Anti-Red Tape Act (ARTA) Report Card Survey (RCS) 2012 conducted by the Civil Service Commission (CSC). The CSC listed 449 government offices that passed, with the DTI, Philippine Health Insurance Corp. (PhilHealth), Bureau of Internal Revenue (BIR), Social Security System (SSS), and Land Transportation Office (LTO) leading the list. Another 29 DTI offices have garnered “good” ratings, affirming the highly decent ranking of DTI as among the top-performing government agencies in terms of anti-red tape campaigns. CSC Chairman Francisco Duque III said 50 offices in the whole bureaucracy obtained an “excellent” rating, the highest in the scale with scores between 90 and 100. Some 308 government agencies got a rating of “good” for scores ranging between 80 to 90, while 90 others received an “acceptable” rating for scores ranging from 70 to 79. The CSC surveyed the government offices based on their frontline services delivery, service quality, physical working condition, and overall client satisfaction.
Also checked were the following: • Observance of the “No Noon Break” policy • Presence of a public assistance desk/center • Availability of basic facilities such as comfortable waiting areas and comfort rooms, and • Presence of special lane for persons with disabilities, pregnant women, and the elderly. Government employees found accepting money, favors or gifts from clients – even if clients willingly give these – would still be violating ARTA. Violators face imprisonment not exceeding six years or a fine of not less than P20,000 but not more than P200,000, or both fine and imprisonment, at the court’s decision. ARTA also requires all government agencies to set-up service standards known as Citizen's Charter. It contains information on how to avail oneself of a particular service, time it would take to conclude the process, fees to be paid, documents to be presented, and procedures for filing complaints. It should be posted at the main entrance of office or at the most conspicuous places. From January to December 2012, CSC administered the RCS to 599 agencies nationwide. Of these agencies, 345 were national government agencies, two local government units, 251 government corporations, and only one local water district. (TPS 04/16)
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DTI Anti-Red Tape Act (ARTA) Compliance Report Card Survey 2012 Results Total of 599 Government Offices Nationwide
Agency Department of Trade and Industry
Branch
Adjectival Rating
Bayombong Malolos City, Bulacan San Fernando, Pampanga Cabanatuan City, Nueva Ecija Calamba City Catanduanes Field Office (FO) Iloilo Provincial Office (PO) Roxas City Bacolod City, Negros Occ. Siquijor Davao del Sur FO, Digos City Davao Oriental FO, Mati City Tabuk, Kalinga
Excellent Excellent Excellent Excellent Excellent Excellent Excellent Excellent Excellent Excellent Excellent Excellent Excellent
Vigan, Ilocos Sur FO La Union Cagayan Isabela Olongapo City, Zambales Tarlac City, Tarlac Balanga City, Bataan Antipolo City Cavite PO Occidental Mindoro PO Calapan, Oriental Mindoro Palawan Lucena City Aklan Antique Jordan, Guimaras Dipolog City Pagadian City Zamboanga PO Camiguin PO Davao del Norte FO, Tagum City Nabunturan PO Kidapawan City, North Cotabato NERBAC 12, Gen. Santos City Baguio, Benguet Bangued, Abra Bontoc, Mt. Province Luna, Apayao Lagawe, Ifugao
Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good
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Inside DTI 60 MSMEs showcase best Capiz products
Good News, Philippines! 1. PHL food sells P2B in Dubai
Vol. 17, No. 09 4
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ome 60 micro, small, and medium enterprises (MSMEs) joined the “Capiztahan Trade Fair 2013” at the Capiz Provincial Park on April 13-15, 2013 to highlight the annual celebration of the Capiztahan Festival.
Chief Executive Officer (CEO) of One Capiz Foundation Melanie R. Arancillo, and DTI-6 Regional Director Dominic P. Abad.
The participants represented agriculture and fishery, horticulture, tourism, processed food, and handicraft sectors, with their products ranging from fresh and processed seafood, fruits and vegetables, cut foliage, furniture and furnishings, fashion accessories, handicrafts, and other agricultural products.
DTI-Capiz Provincial Director Ermelinda P. Pollentes said product development consultancies were facilitated last year to produce at least 50 new designs by 10 handicraft producers and five new food variants with improved packaging and label designs from 15 processed food MSME exhibitors.
Department of Trade and Industry (DTI) Secretary Gregory L. Domingo graced the event as keynote speaker, together with Mrs. Judy A. Roxas, mother of Department of the Interior and Local Government (DILG) Secretary Mar Roxas, First Lady of the First District Suzette I. Del Rosario, First Lady of the Province Fatima L. Tanco,
Pollentes said the Office of the Provincial Agriculturist (OPA), through its Municipal Agricultural Officers, monitored the supply to ensure availability of fresh and good quality agriculture and seafood products.
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he Philippine food companies that participated in Gulfood 2013 in Dubai, United Arab Emirates (UAE) recorded USD 53.4M (P2.2B) in sales, the Center for International Trade Expositions and Missions (CITEM) said.
Domingo also visited some MSMEs in the province.
Meanwhile, the Capiz Multi-Purpose Cooperative highlighted the show with cut foliages for export and various landscape materials.
CITEM, an attached agency of the Department of Trade and Industry (DTI), said 19 local companies participated in the recently concluded fair.
Among the best-selling Filipino products were Pampanga’s Best halal-certified marinated meat items such as tocino and longganisa; AgriNurture’s fresh and frozen fruits and vegetables; Pixcel’s Florence brand food preserves; Gemfoods’ Dani’s Buko Salad; Celebes’ organic halal-certified coconut water, coconut milk and desiccated coconut; and Brandexports Philippines’ consolidated ethnic food.
Immediate sales orders throughout the four-day trade fair reached USD 11M, while the projected value of sales orders following the show is expected to reach over USD 42M.
The agency said the local food firms’ participation in the 18th Gulfood was part of the government’s continuing efforts to promote Philippine food in the Middle East.
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2. Dutch firm to put up coco peat plant in Mindanao
May 06, 2013 5
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etherlands-based Van der Knaap Group of Companies is expanding to the Philippines by investing USD 1M-1.5M to form a company in Mati, Davao Oriental for the processing and marketing of coco peat. Euro Substrates (Pvt) Ltd. Managing Director for Sri Lanka Dinesh Fernando said the plan is to explore business opportunities in Laguna and Quezon. “We can work with the Department of Trade and Industry (DTI). The DTI
3. BPO firm bullish on PHL, eyes 35% hike in workforce
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ranscom Philippines, a unit of Luxemburg-based Transcom Worldwide S.A., is bullish about the prospects of the local information technologybusiness process outsourcing (IT-BPO) industry and is set to increase its workforce by 35%. Transcom Philippines Asia-Pacific Country Manager and Head of Sales Siva Subramaniam said the country’s IT-BPO industry has continued to expand since 2009, prompting the company to expand its presence here by beefing up its current workforce of 10,000. The latest quarterly survey by the Business Process Association of the Philippines (BPA/P), now known as Information Technology and Business Process Association of the Philippines (IBPAP), revealed a sustained, high level of optimism for the industry in the next 12 months
can support a selected number of producers with the required machines to produce; we give the technology for them to process it and ensure the market. We kick-start from there,” Fernando said. Coco peat is made from coconut husks. Raw coco peat is currently being sold in the local market as soil conditioner. Through processing, coco peat can be turned into a high-value planting medium which can be exported. (TPS 04/09)
despite heightened concern over the availability of an adequate and dependable supply of knowledge workers. The survey covered 179 executives across more than 20 IT-BPO and shared services sectors, which also signaled a continued shift from mostly voice-based process services to more diverse and high-value knowledge-based services. Data showed that IT-BPO companies generated USD 13.5B in revenues, exceeding the USD 13-B target last year and 22% more than the previous year’s USD 11-B projection. “We are, therefore, able to surmise that stability for BPO revenues are indeed consistently going higher with employment record of 720,000 entering 2013. This momentum is good for the country,” Subramaniam stressed. (TPS 04/15)
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MSME/OTOP News 1. GFIs lend P30.4B in 2012
Vol. 17, No. 09 6
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overnment-owned financial institutions (GFIs) had released a total of P30.4B under the Access of Small Enterprises to Sound Lending Opportunities (ASENSO) program in 2012. The ASENSO program is a revitalized government-led micro, small, and medium enterprise (MSME) financing program which builds on the gains of the previous SME Unified Lending Opportunities for National Growth (SULONG) initiative. Dubbed as the government’s flagship program for the MSME sector, ASENSO had released a total of P272.6B since its inception as SULONG in 2004. The amount was released to 325,132 SMEs and had helped sustain employment for 3.9M Filipinos. ASENSO is an initiative of nine GFIs and three line agencies aimed at creating an MSME-friendly lending environment.
2. Incentives for banks lending to MSMEs pushed
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Under the program, government financial institutions extend loans to MSMEs providing them with manageable terms to help them expand and grow their businesses.
ASENSO partner agencies • Department of Trade and Industry (DTI) • Department of Social Welfare and Development (DSWD) • Land Bank of the Philippines (LBP) • Development Bank of the Philippines (DBP) • Small Business Corporation (SB Corp) • People’s Credit and Finance Corporation (PCFC) • National Livelihood Development Corporation (NLDC) • Philippine Export-Import Credit Agency (PhilEXIM) • Government Service Insurance System (GSIS) • Social Security System (SSS) • Quedan and Rural Credit Guarantee Corporation (QUEDANCOR) • National Anti-Poverty Commission (NAPC)
he country’s export sector is pushing incentives that will encourage banks to lend more to micro, small, and medium enterprises (MSMEs).
an initiative of the Department Trade and Industry (DTI) on the creation of a Portfolio Guarantee Support Fund that will give rewards to banks who can develop new lending portfolios.
The Philippine Exporters Confederation, Inc. (PHILEXPORT) said giving incentives to banks to make them comply with the Magna Carta for MSMEs is one of the measures identified by the Export Development Council (EDC) and its executive committee and other industry leaders during their recent meeting on how the government can help mitigate the peso appreciation’s impact on the export sector.
Such rewards will also be given to banks that can lend to the MSME sector in compliance with the Magna Carta.
The Small Business Corporation (SB Corp) recommended pursuing
The Magna Carta for MSMEs mandates all lending institutions to set aside 8% of their total loan portfolio for micro and small enterprises and 2% for medium firms. It also stipulates that the BSP imposes penalties for banks not complying with its mandatory lending provisions for MSMEs. (TRB 04/15)
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3. PCCI calls for MSME property rights protection
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he Philippine Chamber of Commerce and Industry (PCCI) is calling for harmonizing the government agencies’ processes and for ratifying the Land Administration Reform Act (LARA), Valuation Reform, and National Land Use Act (NLUA) to protect the property rights of micro, small, and medium enterprises (MSMEs). “We note that these bills will provide harmonized and standardized process of promoting real property
Business Update DTI, DCOM to grant seal on online selling sites
Consumer News
1. Dilapidated LPG tanks endanger public
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he Department of Trade and Industry (DTI) and the Digital Commerce Association of the Philippines (DCOM) have discussed the granting of a seal on online selling sites that comply with certain rules.
transactions in the Philippines, therefore ensuring a friendlier and competitive business environment for our MSMEs and other enterprises to flourish and grow,” PCCI President Miguel Varela said. The PCCI will enter into a Memorandum of Understanding (MOU) with the Department of Trade and Industry (DTI) to strengthen the coordination between national and local government agencies as well as local chambers in facilitating policy reforms. (TPS 04/12) Maglaya said the partnership being eyed with the DCOM is similar to DTI’s partnership with the Ad Standards Council (ASC) in which the latter conducts the screening and evaluation of advertisements based on a Code of Ethics which have been approved by the DTI.
DTI Undersecretary for Consumer Welfare and Business Regulation Group (CWBRG) Zenaida C. Maglaya said DTI and DCOM intend to come up with a seal for online sites that comply with certain set of rules when it comes to dealing with consumers.
DCOM President Jack Madrid earlier said the group is ready to present the proposed seal and criteria that will assure consumers that the online selling sites they transact with are compliant with certain standards.
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“These tanks may be substandard or defective already. Yet they are still being sold to and used by consumers,” Ty said.
onsumers are advised to be cautious of old and dilapidated liquefied petroleum gas (LPG) tanks numbering to 60M that are presently being circulated in the market. “There’s no question these worn-out LPG cylinders, which are at least 10 years old, have contributed in a big way to the rash of deadly accidental fires in homes and commercial establishments,” said LPG Marketers Association (LPGMA) Representative Arnel Ty.
The Bureau of Product Standards (BPS) said all LPG cylinders should undergo requalification 10 years after first use, then every five years subsequently. This process can only be executed by Department of Trade and Industry (DTI)-accredited requalifiers who perform proper inspection, testing and restoration, or scrapping of tanks. (PSN 04/12; TPS 04/11; RMT 04/11)
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2. Mitsubishi recalls 1,420 cars
Vol. 17, No. 09 8
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itsubishi Motors Philippines Corporation (MMPC) has called for a recall of 1,420 units of Thailand-made Mitsubishi Mirage GLS for faulty waterproofing in the front wheel speed sensors. MMPC notified the Department of Trade and Industry (DTI) about the recall of both automatic and manual transmission versions-of this model equipped with an anti-lock brake system (ABS). The recall of the units sold from November 2012 to March 2013 aims to replace the faulty part which can be encroached with water from rain or during car wash, and may cause the ABS to malfunction.
Features Daylight breaking?
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r. Gary Olivar in his column, titled “Daylight breaking?” that was published in the Manila Standard Today on April 16, 2013. The column As an inveterate critic of the President, the self-appointed “daylight bringer” to our country, I’m bemused by a number of recent stories indicating that some shafts of sunlight may indeed be breaking through . . . The first noteworthy development was a recent statement by DTI Secretary Greg Domingo that he’s been seeing an unprecedented level of investor interest in the country during his roadshow trips abroad, especially after the recent rating upgrade of
“Although there has been no reported accident as a consequence of this problem, MMPC was directed by its principal, Mitsubishi Motors Corp. Japan to voluntarily conduct this safety recall as its proactive commitment to quality and consumer safety,” it said. The replacement procedure may take about an hour and is free. The Vehicle Identification Numbers (VIN) of these cars will be posted on MMPC’s website. Affected owners may enter their VIN to check if their cars are included. (MST, BWD, PDI 04/06)
commended the effective performance of Department of Trade and Industry (DTI) Secretary Gregory L. Domingo. Below are excerpts from the column: our sovereign debt. Sec Greg is a former investment banker from New York, and I have no problem relying on statements like these from him... The administration seems to have the wind at its back among foreign investors . . . Go get ‘em, Greg! The second noteworthy development is another instance where . . . the example of his better subordinates like Secretary Domingo—in this case, by trying to go beyond mere press statements and actually delivering.
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ASEAN Watch Davao expects benefits from ASEAN RORO
May 06, 2013 9
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he Davao City Chamber of Commerce and Industry Incorporated (DCCCII) is optimistic that Davao City would strongly benefit from its active participation in the initial phase of the Association of Southeast Asian Nations Roll-on Roll-off (ASEAN RORO) project that would launch its first vessel from this city to the port of Bitung in Indonesia by the middle of the year. The establishment of the Davao-GenSan-Bitung route came after a memorandum of cooperation was signed during the Davao Investment Conference held in November last year. “We were able to push the realization of the ASEAN RORO project. Davao can certainly take advantage of this, with respect to the exchange of goods under ASEAN 2015,” former Davao Business Chamber President Ma. Lourdes G. Monteverde said. The project aims to improve ASEAN connectivity, extend trade, and boost tourism and investments specifically within the East ASEAN Growth Area (EAGA) sub-region that includes Brunei, Indonesia, Malaysia, and the Philippines. The ASEAN RORO project was established after the Philippine Chamber of Commerce and Industry (PCCI) and the ASEAN Business Advisory Council (ASEAN-BAC), in coordination with the Department of Trade and Industry (DTI), discussed an initiative that would formally link neighboring sea ports that have been traditional partners through informal trade that started centuries ago. (BWD 04/11)
STATWATCH USD 13.5B Revenues generated by Philippine-based information technology-business process outsourcing (IT-BPO) companies in 2012 P30.4B Loans released to micro, small, and medium enterprises (MSMEs) by government-owned financial institutions (GFIs) under the Access of Small Enterprises to Sound Lending Opportunities (ASENSO) Program in 2012
P2.2B Sales generated by the Philippine food companies that participated in Gulfood 2013 in Dubai, United Arab Emirates (UAE)
60M Liquefied petroleum gas (LPG) tanks that are already old and dilapidated and still being circulated in the market 599 Government offices surveyed from January to December 2012 by the Civil Service Commission (CSC) for the Anti-Red Tape Act (ARTA) Report Card Survey
29 Department of Trade and Industry (DTI) offices that have garnered “good” rating in the CSC’s ARTA Report Card Survey 2012 13 DTI offices that have earned “excellent” rating in the CSC’s ARTA Report Card Survey 2012
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(A synopsis of selected book acquisitions at the DTI-TIIC library)
Title : Coco Coir Industry Sourcebook
Publisher : Department of Trade and Industry. Bureau of Domestic Trade Call Number : SITC 265.91/00.07/ DTI-BDT/2013 This book presents an overview of the Philippine coco coir industry and lists sources of coco coir and coir products. It provides market matching and networking information to the stakeholders within the value chain of the industry. Aside from sources of raw materials and services offered by suppliers and manufacturers, other elements necessary for fostering the industry are included such as lists of exporters, machines and equipment suppliers, service providers, business organizations and other government services.
Legend: BWD MST PDI PSN TPS TRB
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Business World Manila Standard Today Philippine Daily Inquirer Pilipino Star Ngayon The Philippine Star Tribune
Entered as Third-Class Mail at the Makati Central Post Office under Permit No. 504 valid until 31 December 2013
Title : How to Pay Less for More: The Consumer’s Guide to Negotiating the Best Deals – Whatever You’re Buying Author : Marc Lockley Publisher : Rupa Publications India Pvt. Ltd. Call Number : 06.15/LOC/2010 This book teaches the readers to negotiate better deals in everyday life - whether buying or selling. It provides consumers with the tools, ideas and mindset to gain better deals in their purchases, emphasizing putting one’s own natural skills into action. It also offers practical guides and strategies in facilitating trade negotiations between consumers and business players.
Philippine Postal Permit No. PM-04-08
What’s New?
Vol. 17, No. 09 10
Editor-in-Chief: Anne L. Sevilla Managing Editor: Vic S. Soriano Associate Editor: Resty P. Par Writers: Jam A. Hourani, Emman R. Caleon, Hazel Maryam S. Dizon, Maria Joanna Angela D. Cruz Design/Layout: Ren C. Neneria Circulation: Myrna V. De Los ReyesTo subscribe, email: publications@dti.gov.ph