dataline
16 June 2014 1
dataline
16 June 2014 Vol. 19, No. 12
A bi-monthly digest of global and domestic industry trends and developments. Published by the Knowledge Managment and Information Service of the 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 eyed for more investments Inside DTI DTI’s Diskwento Caravan Balik Eskwela edition held in NCR, Tacloban, and Bataan Good News, Philippines! 1. FDIs to grow at least 20% in 2014 2. DTI sees better investment climate 3. Exports up 6.5% in Q1 MSMEs 1. DTI gives seaweed dryer facilities to Zambo farmers’ groups 2. DTI earmarks P11M for GPB projects 3. DTI gives P1.26-M SSF to Bohol weavers Business Update 1. BOI unveils 2014 IPP framework 2. DTI, DILG to help Zamboanga LGUs improve biz permit systems
Consumers News 1. School supplies SRP issued 2. LGUs informed on product standards Feature P-Noy leads Bohol’s 1st FabLab’s launch ASEAN Watch 1. PEZA assures biz industry to spur investments 2. PHL positions as IP champion in ASEAN 3. APEC ministers agree to push integration Statwatch What’s New?
dataline
Focus PHL eyed for more investments
Vol. 19, No. 12 2
F
oreign companies and local government officials expected more investments and increased business exposure in the Philippines based on the recently concluded 23rd World Economic Forum (WEF) on East Asia held in Manila.
Domingo said the Philippines succeeded in attracting interests of foreign visitors through the WEF.
“Obviously, there is a huge opportunity for more investments in the Philippines. We’re committed to be as helpful as we can in enabling that investment,” United States (U.S.)-based Overseas Private Investment Corp. (OPIC) Vice President Michael S. Whalen said.
“A lot of them have never been to the Philippines. Many of them have been here long ago. They are surprised, positively surprised on what they see here,” he said.
Whalen said OPIC, which has supported more than USD 200B worth of investment in over 4,000 projects through investment guarantees and project loans to U.S. firms, is encouraged by the strong economic growth in the Philippines. On the same note, Du Pont Co. Pte. Ltd. Group Managing Director for Association of Southeast Asian Nations (ASEAN) Ho Hsing-Chan said the robust economic growth provides an opportunity to boost the firm’s agriculture and food ingredients business here. Department of Trade and Industry (DTI) Secretary Gregory L.
Inside DTI DTI’s Diskwento Caravan Balik Eskwela edition held in NCR, Tacloban, and Bataan
I
n time for the opening of school year this month, the Department of Trade and Industry-National Capital Region (DTI-NCR) staged a “Balik Eskwela” edition of its Diskwento Caravan last 21 to 22 May 2014 at the DTI Main Office in Makati City. During this two-day activity, participating companies offered school supplies, bags, uniforms and shoes at discounted prices.
Domingo said holding WEF on East Asia in the country for the very first time “will change a lot of negative perceptions about the Philippines.”
“The quality of people — they are quite sophisticated. Infrastructure is more advanced than what they’ve thought. It’s more modern than they thought, and you can see the way the services are provided, the way how people interact with them. It’s a higher level of sophistication than what they were expecting,” he said. Domingo said WEF participants witnessed the development of the country’s economy. “Seeing is believing. Obviously, there were lot of high level businessmen and officials that were here. There were lots of interactions among business people as well as with the government. I think as a result of this, a lot of movements are going in terms of business,” Domingo noted. Exhibitors also offered discounted necessities and prime commodities such as bread, sardines, cooking oils, processed meat, and detergent bars. Massage services were offered by the Technical Education and Skills Development Authority (TESDA). Other participating agencies were the National Food Authority (NFA) and Bureau of Plant Industry (BPI).
dataline
16 June 2014 3
Meanwhile, DTI also conducted a Diskwento Caravan in Tacloban City, Leyte, and a Balik Eskwela Edition in Balanga City, Bataan last May. Despite decline in sales generated, the Diskwento Caravan in Tacloban last 9 May, which provided products at a discount of 10% and up, will be followed by several more to ensure steady supply in the area and will serve as reliever until businesses are able to fully recover from the effects of Typhoon Yolanda. Last 14 to 16 May, Balanga City, Bataan had the annual Balik Eskwela Diskwento Caravan with 30 enterprises participating, making school supplies
Good News, Philippines! 1. FDIs to grow at least 20% in 2014
F
oreign direct investments (FDIs) to the Philippines are expected to grow 20% this year compared to a year ago given the country’s improving competitiveness and workforce, Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said. “We expect at least a 20-% growth in FDIs this year to be driven by the increasing competitiveness of the Philippines, in particular the increasing capability of our workforce,” Domingo said. “The increase is to be led by a resurgence in manufacturing as well as continuing fast growth of the services sector and the information technology-business process outsourcing (IT-BPO) sector,” he said.
2. DTI sees better investment climate
T
he Department of Trade and Industry (DTI) sees the Philippines improving on its investment climate after the United States Trade Representative (USTR) reviewed the labor practice in the country and the removal of the country in the Special 301 Watch List or piracy watch list.
and needs along with local foodstuff and products available. Other government agencies also participated with the Department of Agriculture (DA) handing-out seedlings, the Technical Education and Skills Development Authority (TESDA) providing free massage, and the Provincial Health Office conducting free medical consultations. Tacloban Diskwento Caravan sales generated for 2014
• • •
January February March
P3.82M P2.77M P819K
FDIs reached USD 3.9B last year, up from the USD 3.2B in 2012. Domingo said the government has been working on reforms to make the country a more attractive place to do business. He said the government has also been spending more on health and education to improve the quality of the Filipino workforce, the country’s biggest competitive advantage. Aside from government efforts, he said more FDIs are expected this year as the Philippines benefits from the rising labor and inflationary costs in neighboring countries.
The USTR has also recognized the country’s progress on worker rights issues. According to DTI, this will “allow the U.S. government to the Generalized System of Preferences (GSP) review without any changes to the Philippine GSP trade benefits”
dataline
Vol. 19, No. 12 4
and will eliminate the threat that the country might no longer be eligible for the U.S. GSP program. Since 2007, the Philippines has been under the GSP-related country for labor practices. The Philippine government has continued its effort to address this issue identified by the U.S. until it recognized that labor practices here level with the international standard. Likewise, USTR announced that the country was lifted from the intellectual property rights watch list in time for the state visit of U.S. President Barack Obama. The USTR also recognized the commitment of the government to fight against influx of counterfeited goods in the domestic market.
3. Exports up 6.5% in Q1
M
erchandise exports in the first quarter of the year had increased by 6.5% to USD 14.3B from the same period of last year’s USD 13.4B, the Philippine Statistics Authority (PSA) reported. Positive performance of exports of goods in the first quarter was manifested by increase in four out of seven commodity groups. Meanwhile, exports of goods for the month of March alone had an increment of 11.2% reaching USD 5.2B from USD 4.7B of the same month last year. Top export destination of Philippine products in March was Japan with exports value of USD 1.3B, an increase of 51% from its
DTI Secretary Gregory L. Domingo said these recognitions will signal better investment climate in the country and will also facilitate trade here. “We expect heightened investor interest, particularly in industries fueled by innovation, technology, creativity, and design with the recent removal of the Philippines from the USTR Watchlist as well as the United States’ recognition that our labor practices are at par with international standards,” said Domingo. “The Philippines maintains a favorable investment climate where labor remains productive and motivated, Intellectual Property Rights (IPR) are protected and laws are enforced,” he said.
March 2013’s export amount of USD 846.9M. Q1 2014 top commodity groups (% increase year-on-year)
• • • •
Forest products Mineral products Manufactures Agro-based products
Top PHL export markets Q1 2014
• • • • •
Japan United States China Hong Kong Singapore
21.6 14.2 7.9 2.1
dataline
MSME News 1. DTI gives seaweed dryer facilities to Zambo farmers’ groups
2. DTI earmarks P11M for GPB projects
16 June 2014 5
T
he Department of Trade and Industry’s (DTI) implementation of shared service facility (SSF) projects benefits two seaweed farmers’ associations in Barangays Dita and Manicahan in Zamboanga.
City Provincial Director Rolando G. Acuña said.
“The establishment of the projects addresses not only the concerns of the seaweed growers for drying facilities but also meant to ensure that the raw dried seaweeds they produce are free from dirt and impurities,” DTI Zamboanga
The SSF projects in the form of stilt dryers were turned over in simple ceremonies witnessed by officials of the two barangays and the City Agriculturist’s Office representatives.
T
he Department of Trade and Industry (DTI) earmarked P11M for the implementation of 10 projects in Region 9 under the grassroots participatory budgeting (GPB) scheme. The projects to be implemented have been approved by the National Poverty Reduction Action Team (NPRAT) DTI-9 Officer-in-Charge – Assistant Regional Director Sitti Amina M. Jain said.
The seaweed dryers’ locations are easily accessible to the farmers and not prone to destructive storm or tidal surges, said Acuña.
The GPB implementation areas are the local government units (LGUs) that submitted project proposals to the DTI in 2013 which were subsequently approved by NPRAT for funding and implementation under the DTI’s menu of GPB programs and projects this year, said Jain.
GPB implementation Areas
Projects
Programs
• Salug, Zamboanga
Mini-oil mill
• Shared service facility
del Norte
(SSF)
• Piñan and Sindangan
Business permits in Zamboanga del Norte and licensing system (BPLS) computerization
• Kumalarang,
Handicraft production and mat weaving
• Ramon Magsaysay,
Bamboocraft development, mini-oil mill, handicraft production, and One town One Product (OTOP) store
• Malangas, Zamboanga
Livelihood training on soap making
Zamboanga del Sur
Zamboanga del Sur
Sibugay
• Local and Regional
Economic Development (LRED)
• YamanPinoy • Rural Micro-Enterprise • • •
Development Programme (RuMEPP) OTOP store express Industry clustering program Philippine Traceability for Revitalized Agricultural Competitiveness Enhancement (P-TRACE) project
dataline
3. DTI gives P1.26-M SSF to Bohol weavers
Vol. 19, No. 12 6
T
he Department of Trade and Industry (DTI) transferred a shared service facility (SSF) consisting of 15 handlooms, laboratory equipment, and dying facility to the Tubigon Loomweavers Multi-Purpose Cooperative in Bohol. The DTI said the transfers are intended to improve the quality of bleached and dyed raffia fibers that will recover Bohol’s weaving industry.
Business Update 1. BOI unveils 2014 IPP framework
T
he Board of Investments (BOI) has discussed the strategic framework for 2014 Investment Priorities Plan (IPP) which will identify incentives or non-incentive policy response for particular economic activities. Supply chain gaps will be distinguished following the sector’s potentials in the four areas. BOI will then decide whether these supply chain gaps can be addressed through incentives; if not, it should be identified how the sector will maintain its competitiveness through other policies without incentives.
2. DTI, DILG to help Zamboanga LGUs improve biz permit systems
T
he Department of Trade and Industry (DTI) Zamboanga City Regional Office, in partnership with the Department of the Interior and Local Government (DILG), will assist Zamboanga Peninsula local government units (LGUs) in re-engineering their old permit systems. DTI Regional Institutional Development Division Chief Grace C. Aduca said the business permits system of LGUs will be made more efficient, transparent, and investor-friendly. The initiative aims to improve business competitiveness,
An amount of P1.26M was granted for the provision of upgraded handlooms designed to develop bigger and wider woven fabrics. Meanwhile, the Tubigon project already received visits from major buyers such as Issey Miyake of Japan and Hermes of Paris and was presented to other known expensive European brands.
For sectors eligible for government incentives, most binding constraints on putting up investments should be identified. This ends with policy response of giving incentives to a specific economic activity. BOI’s criteria for an economic activity to be included in the 2014 IPP list
• • • •
Potential to create employment Potential to move up in the value chain Potential to create spillover effects Potential to create a competitive market
both at the local and at the national levels, by reducing the cost of doing business as well as minimizing the avenues for graft. “As soon as we have finished streamlining, we are going to guide local government offices on the second phase, which will be the automation of the system to make it more efficient,” Aduca said. The two agencies are expected to complete streamlining standards on all 72 LGUs in the region by 2016.
dataline
Consumer News 1. School supplies SRP issued
16 June 2014 7
I
n time for the return of classes, the Department of Trade and Industry (DTI) issued the suggested retail prices (SRPs) of school supplies for 2014. The SRPs serve as guide to sellers and consumers as to the maximum price of products and encourage fair market competition. Among considered in determining SRPs, which can be viewed on DTI’s website, are the cost of production and distribution, and profit margin. Meanwhile, the EcoWaste Coalition is calling for the recall and ban of Venus Commercial Co.’s Artex Fine Water Colors after laboratory analysis and examination revealed that it contains as much as 37,000 parts per million (ppm) of lead. Under the Department of Environment and Natural Resources (DENR) Department Administrative Order No. 24 Series of 2013 (DAO 24 S. 2013) or the Chemical Control
2. LGUs informed on product standards
T
he Department of Trade and Industry (DTI)-Iloilo held a seminar to enlighten local government units (LGUs) in the province regarding the Bureau of Philppine Standards’ (BPS) standards and certifications that their Bids and Awards Committee (BAC) should be aware of. “The seminar emphasized that BAC should not only focus on the price or the amount but also on the quality of the products they asked the suppliers to bid, for these are the materials that are utilized for government projects,” DTI-Iloilo Trade and Industry Development Specialist (TIDS) Demar Solinap said.
Order for Lead and Lead Compounds, the chemical should not be used in the production of items including school supplies. The environmental group already requested the company to pull-out their product and reported the findings to the Department of Health (DOH), DTI, and DENR following the company’s inaction. SRPs of select school supplies (in pesos)
• • • • • • • • •
80-leaf Notebook (Composition, Writing, and Spiral) 80-leaf Pad Paper (Grades 1-4) 80-leaf Intermediate Pad Paper 8-piece crayon set 16-piece crayon set 24-piece crayon set 3-piece regular size pencil pack 3-piece jumbo size pencil pack Ballpen
10.00 - 14.75 6.00 - 28.75 11.50 - 22.80 11.25 22.50 32.00 0.50
-
19.75 39.75 51.75 23.90
24.75 - 30.75 4.75 - 33.00
For the first batch of the seminar, held on 29 April, 52 representatives of LGUs from the 1st to 3rd districts of Iloilo attended, while the second, held on 27 May, had 59 representatives of LGUs from the 4th and 5th districts. Contractors, dealers and suppliers, and members of national government agencies also participated in the seminars. Some products requiring certification from BPS
• • •
Construction materials Electrical wiring devices Hardware
dataline
FEATURE P-Noy leads Bohol’s 1st FabLab’s launch
Vol. 19, No. 12 8
P
resident Benigno S. Aquino III headed the turnover of the country’s first Fabrication Laboratory (FabLab) shared service facility (SSF) in Bohol last month. The Department of Trade and Industry (DTI) led the project which aims to push local entrepreneurship and advance the province’s creative sector’s competitiveness. The P9.15-M Bohol FabLab project was funded by the DTI, Japan International Cooperation Agency (JICA), Bohol Island State University (BISU), and the Department of Science and Technology (DOST).
and mentoring of Japan’s Keio University. It will also be connected to the global FabLab network which gives local access to free coaching and mentoring from other more advanced FabLab sites. DTI Secretary Gregory L. Domingo, other DTI key officials, and some of Aquino’s Cabinet members were also present during the brief launching and turnover ceremony. Setting up a facility like the FabLab is an initiative meant to empower and strengthen the micro, small, and medium enterprises (MSMEs) in the country, Aquino said.
BISU will primarily manage the facility which will be under the guidance
ASEAN Watch 1. PEZA assures biz industry to spur investments
P
hilippine Economic Zone Authority (PEZA) Director General Lilia B. De Lima assured full government support to business leaders, captains of industry, investors, and small and medium entrepreneurs to spur more investments and capital flow into the country. “The Philippines now offers the best investment site in the region with our number one asset -- the skilled Filipino manpower with young age against the aging societies not only in Asia but also in Europe -- and the country’s strategic location about three to four hours flight to an Association of Southeast Asian Nations (ASEAN) neighbor makes it a perfect setting,” De Lima said. She added that the country needs to be competitive as one nation
2. PHL positions as IP champion in ASEAN
T
he Philippines reinforces its position as intellectual property (IP) champion in the Southeast Asian region as the United States Trade Representative (USTR) removed the country from its piracy watch list.
and offered PEZA as an example in improving overall investment climate such as providing fiscal incentives, upping unmatched and quality service by another notch. She also advised businesses engaged in agro-based industries including real estate development to register with PEZA as economic zone developer, industrial estate and information technology (IT) parks. Moreover, De Lima proposed that Pinoy entrepreneurs should venture into food catering or service firms for the various industrial and economic zones. It is a challenge to produce better quality of goods with less cost as we salute our highly trained, most productive labor in the region and come up with the most innovative, she added. Intellectual Property Office of the Philippines (IPOPHL) Director General Ricardo R. Blancaflor said the country’s IP system has become a model system to other countries.
dataline
16 June 2014 9
Executive Order (E.O.) No. 736 created the National Committee on Intellectual Property Rights (NCIPR), a government body composed of different agencies that can enforce operation to seize counterfeited goods that entered the local market. The NCIPR has continuously done its enforcement operations to eliminate the influx of fake goods in the local market. “We are confident we are able to surpass last year’s amount with our intensified enforcement efforts,” Blancaflor said.
3. APEC ministers agree to push integration
A
sia Pacific’s Trade ministers have agreed to promote economic integration in the region that accounts for over half of the world’s growth, amidst rising tensions between some countries, according to the Asia-Pacific Economic Cooperation (APEC). “We emphasize our shared vision that regional economic integration should not create unnecessary barriers between economies and lead to fragmentation of trade and investment flows,” according to the statement released by the 21-member organization. “The Asia-Pacific has become the region where global value chains and supply chains are most closely knitted,” China Ministry of Commerce Minister Gao Hucheng said.
STATWATCH USD 14.3B PHL’s merchandise exports in 2014 Q1, up 6.5% from
USD 13.4B recorded in the same period last year
USD 3.9B
PHL’s foreign direct investments (FDIs) in 2013, up from
USD 3.2B in 2012 USD 5.2B PHL’s exports revenue in March 2014 up 12% from
USD 4.7B
in the same month in 2013
P11M Budget allotted by the Department of Trade and Industry (DTI) for the implementation of 10 projects in Region 9 under the grassroots participatory budgeting (GPB) scheme
P9.15M Value of the country’s first Fabrication Laboratory (FabLab) shared service facility which was launched in Bohol last month
P1.26M Financial assistance provided by the DTI to Bohol weavers under the SSF program
dataline
What’s New? (A synopsis of selected book acquisitions at the DTI-TIIC library)
Vol. 19, No. 12 10
Title : ASEAN Centrality and the ASEAN-US Economic Relationship
Author : Peter A. Petri and Michael G. Plummer Call Number : 45 000/01.03/EWC/ 2014 This study examines the quantitative details of the significance of the Association of Southeast Asian Nations (ASEAN)-US economic relationship and explores the concept of ASEAN centrality and its implications for intra-regional and extra-regional cooperation. It also analyzes how ASEAN seeks to strengthen assets through "centrality" in intra-regional and external policy decisions. It recommends a two-speed approach toward centrality to maximize regional incomes and benefit all member economies, namely: a) selective engagement by ASEAN members in productive external partnerships; and b) vigorous policies to share gains across the region. 82p.
Title : The Daily Carrot Principle 365 Ways to Enhance your Career and Life
Author : Gostick, Adrian and Elton, Chester Call Number : 05/GOS/2010 This book provides an inspiring and lively page-a-day guide to harnessing the remarkable power of the carrot -- taking self and the team to new heights of success in work and life. The authors share a wealth of wisdom about simple but amazingly effective ways to boost productivity and work satisfaction by setting clear goals, communicating effectively, building trust, and offering recognition in ways that make other feel appreciated and motivated. 384p
Editor-in-Chief/Anne L. Sevilla Managing Editor/Vic S. Soriano Associate Editor/Resty P. Par Writers/Jam H. Raposon, Hazel S. Dizon, Joanna D. Cruz, Airiz A. Casta, Kit S. Andaya Design/Layout/Ren C. Neñeria Circulation/Al AquinoTo subscribe, email: publications@dti.gov.ph