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July 01, 2013 1
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July 01, 2013 Vol. 17, No. 13
A bi-monthly digest of global and domestic industry trends and developments. Published by the Trade and Industry Information Center, Department of Trade and Industry Manila, Philippines Tel. (632) 895.3611 Fax (632) 895.6487 To subscribe, email: publications@dti.gov.ph Online: http://www.dti.gov.ph
In this issue Focus PHL, 2nd brightest in Southeast Asia
Inside DTI 1. Diskwento Caravans yield P137.2-M sales 2. PHL’s good ratings to boost exports 3. DTI urges businesses to excel Good News, Philippines! 1. Q1 growth better than expected 2. Barclays increases PHL growth projection 3. BSP survey shows bright employment outlook in Q3 MSME News 1. PLDT, Samsung collaborate for SME business solutions 2. Puregold, Metrobank launch credit card for sari-sari stores
Business Update Preferential tariffs certification in Canada made easier for PHL exporters Consumer News 1. Inflation projected to hit 3%-3.5% this year 2. DA, BOC monitor rice and rice-based food from China Features Be a responsible consumer ASEAN Watch 1. PHL woos American firms during ASEAN meet in U.S. 2. PCCI, other groups study more inter-Asian RORO routes Statwatch What’s New?
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Focus PHL, 2nd brightest in Southeast Asia
Vol. 17, No. 13 2
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he Philippines is growing as the second fastest economy among the five biggest economies of the Association of Southeast Asian Nations (ASEAN-5) on the back of robust government spending and increased business confidence, the Institute of Chartered Accountants in England and Wales (ICAEW) reported. The ICAEW touted the country as one of the “brightest sparks in the ASEAN region,” noting that “booming household expenditures have also contributed to the glowing picture.” ICAEW’s projections of a 5.1-% gross domestic product (GDP) growth for the Philippine economy this year and 5.4% for 2014 are well above the 4.9-% target for ASEAN-5 which groups Indonesia, Malaysia, the Philippines, Singapore, and Thailand.
Inside DTI 1. Diskwento Caravans yield P137.2-M sales
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ICAEW’s GDP growth outlook for ASEAN-5 in % Indonesia Philippines Thailand Malaysia Singapore
2013 5.7 5.1 4.8 4.4 2.3
2014 5.5 5.4 4.4 4.2 3.6
Titled “Economic Insight: South East Asia,” ICAEW’s recent quarterly review cited the Philippines’ significant contributions to the glowing Southeast Asian region. ICAEW said the "very positive" outlook for the country can be attributed to strong exports and the government's heavy infrastructure investments. (TPS 05/29; MAT 05/29)
ales generated from Diskwento Caravans nationwide had reached P137.2M as of May 17, 2013, the Department of Trade and Industry (DTI) reported.
DTI-National Capital Region (NCR) Officer-in-Charge (OIC) Ferdinand L. Manfoste said the government has so far organized 390 Diskwento Caravans.
For the years 2011-2013 alone, the program benefited 331,734 consumers. It kicked off in 2008 and was initially offered only in Metro Manila as a non-wage benefit. The government decided to transform it into a national program in 2011.
This figure, he said, includes the Balik-Eskwela edition where school supplies sold to the public have discounts ranging from 15%-70%.
The biggest sales were recorded last year when the government rolled out 240 Diskwento Caravans where P97.41M worth of prime and basic commodities, school supplies, and Noche Buena products were sold.
Aside from school supplies such as notebooks and pads, the Balik-Eskwela edition also include bags, shoes, and pambaon items.
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2. PHL’s good ratings to boost exports
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ore upbeat export opportunities are expected with investment grade ratings recently received by the Philippines, the Department of Trade and Industry (DTI) announced. “These will put the Philippines in the radar screen of investments destination particularly for investment-led exports,” Bureau of Export Trade Promotion (BETP) Director Senen M. Perlada said. Perlada said export sectors that can get a boost include electronics, garments and textiles, and other wearables. He is hoping that sectors engaged in agro-processing and shipbuilding
3. DTI urges businesses to excel
PQA level of awards PQA for Performance Excellence Organizations with the highest level of excellence and serves as a model both globally and nationally Recognition for Mastery in Quality Management Organizations whose practices demonstrate superior results in management systems that other Philippine organizations can emulate Recognition for Proficiency in Quality Management Organizations that demonstrate significant development in building stable and notable processes through application of quality and productivity management principles Recognition for Commitment to Quality Management Organizations that show great dedication to quality management
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epartment of Trade and Industry (DTI) Secretary Gregory L. Domingo challenged businesses to excel during the 15th Philippine Quality Award (PQA) Forum held on May 31, 2013 at the Philippine Trade Training Center (PTTC). During the Forum, DTI awarded five firms for their quality management. Domingo exemplified the importance of the PQA and its benefits to organizations, pointing out that it creates a benchmark out of the best practices of distinguished companies. He also explained that it serves as an instrument to attune organizational processes
will also benefit from investment grades given by Fitch Ratings, Standard & Poor’s (S&P), and Japan Credit Agency Ltd. (JCR) to the country. “The Philippines is a very good platform for the ASEAN market because the country is one of the original members of the ASEAN,” he said. Perlada said the Philippines would be the best platform for possible foreign buyers and investors eyeing to penetrate the region. The Philippines is targeting to double its exports to USD 120B by 2016 from USD 52B in 2012.
and integrating systems to bring about more customers and improved earnings. “PQA is about business excellence. It’s about making your organization perform better, produce better profits, improve quality, deliver your organization’s aims, and achieve success, taking into consideration your corporate, social, and environmental responsibilities,” said Domingo, also the PQA Committee Chairman and Award Manager. Since its inception, the PQA for Performance Excellence has been given only once to United Laboratories, Inc. (UNILAB) in 2008.
15th PQA Awardees • •
Recognition for Proficiency in Quality Management - San Miguel Yamamura Asia Recognition for Commitment to Quality Management: - Don Bosco Technical College (DBTC) - Lyceum of the Philippines University (LPU) Batangas - Optodev Inc. - Thomson Reuters Corporation Pte. Ltd. Philippine Branch
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Good News, Philippines! 1. Q1 growth better than expected
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he Philippines’ gross domestic product (GDP) posted a record high 7.8% growth in the first quarter of the year compared to last year’s 6.5%, leading other Association of Southeast Asian Nations (ASEAN) economies and better than the government’s 6%-7% target for the year. Besting those of Vietnam (4.9%), Thailand (5.3%), Indonesia (6%), and even China (7.7%), the Q1 growth rate also exceeded market and government expectations.
Jose Ramon G. Albert cited the strong performance of the manufacturing and construction sectors as one of the main factors that drove the GDP growth though it was also broad-based and all sectors had a positive contribution. “Business confidence and consumer optimism fuelled this growth, putting to rest doubts cast on the 2012 figures as being due to base effects only,” said Socioeconomic Planning Secretary Arsenio M. Balisacan. (BMI, Rappler 05/30)
National Statistical Coordination Board (NSCB) Secretary General 1Q Growth Rates of Gross National Income (GNI) and Gross Domestic Product (GDP) by Industrial Origin (at constant 2000 prices)
Industry
1st Quarter 2012-2013 2013-2014
1. Agriculture, Hunting, Forestry, & Fishing a. Agriculture & Forestry b. Fishing 2. Industry Sector a. Mining & Quarrying b. Manufacturing c. Construction d. Electrical, Gas, & Water Supply 3. Service Sector a. Transport, Storage & Communication b. Trade & Repair of Motor Vehicles, Motorcycles, Personal & Household Goods c. Financial Intermediation d. Real Estate, Renting & Business Activities e. Public Administration & Defense Compulsory Social Security f. Other Services GDP GNI
2. Barclays increases PHL growth projection
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ondon-based international financial services firm Barclays raised its projected growth of the Philippines from 5.9%-6.2% for 2013, well within the government’s target of 6%-7% this year, and 6.3% for 2014.
1.1 2.2 3.8 5.3 -1.7 6.0 1.5 8.5 8.4 9.7 7.8
3.3 2.9 5.5 10.9 -17.0 9.7 32.5 0.1 7.0 3.5 5.6
8.7 7.8
13.9 6.3
4.5
8.0
10.4 6.5 5.7
7.6 7.8 7.1
Barclays also sees the Philippines to have the third fastest growth rate among emerging economies in Asia, putting the country behind China, which they have predicted to grow by 7.9% in 2013 and 8.1% in 2014,
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and Indonesia that is seen to grow by 6.3% for 2013 and 6.4% for 2014. Two international credit-rating agencies have given the country its first investment grades prior to the elevated forecast. Fitch Ratings raised the Philippines’ grade on March 27, 2013 from BB+ to BBBwhich was the minimum investment
3. BSP survey shows bright employment outlook in Q3
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any Philippine companies are planning to create more jobs in line with the favorable business sentiment in the third quarter, a survey conducted by the Bangko Sentral ng Pilipinas (BSP) showed. The BSP said the employment outlook index increased to 24.1% from 23% in the previous quarter and 22.1% in the second quarter of 2012, indicating the business sector’s desire for operation expansion and workforce augmentation. The latest reading was recorded as second-highest, following the 27.4% in 2012’s third quarter. BSP Deputy Governor for Monetary Stability Sector
MSME News 1. PLDT, Samsung collaborate for SME business solutions
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hilippine Long Distance Telephone Co. (PLDT) and Samsung teamed up to deliver innovative business solutions for the country's expanding small and medium enterprise (SME) market. “To succeed, SMEs have to capitalize on given agility and speed advantages, again with the right
grade. This was followed by Standard & Poor’s (S&P) which gave the same grade on May 02, 2013. British bank Standard Chartered also gave the country a positive review, saying that its GDP could rise to 5.8% in 2013 and 6.1% in 2014 and its economic growth could surpass its 2003-2012 average of 5.2% in the coming years. (PDI 05/20; TPS 05/31)
Diwa C. Guinigundo said that with the higher index, companies are expecting business activity to pick up in the Q3, consistent with the economy’s growth. Companies intend to boost their workforce to meet the expected jump in the demand of their goods and services. Of the 1,554 firms included in the April 1-May 10, 2013 survey, 28.7% expressed their intention to hire additional workers to complement their expansion plans. The bright employment outlook came with the consensus that the country’s economy would continue to project a healthy pace of growth this year. (PDI 05/27)
information and communications technology (ICT) tools which must include highly reliable access networks and relevant business solutions which drive efficiencies and cost savings,” PLDT Executive Vice President and Head of Enterprise, International, and Carrier Business Eric Alberto said. (TPS 05/19)
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2. Puregold, Metrobank launch credit card for sari-sari stores
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upermarket chain Puregold Price Club Inc. has collaborated with Metropolitan Bank and Trust Co. to launch a special credit card for sari-sari store owners. Puregold Vice President for Operations Antonio de los Santos said the project is intended to help their primary customers, the sari-sari store owners, have access to credit. “It is a regular credit card they can use everywhere, but we are just
Business Update Preferential tariffs certification in Canada made easier for PHL exporters
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he Department of Foreign Affairs (DFA) informed local exporters that Canada released a memorandum that simplified the requests for preferential tariffs certification. The issuance will make it more manageable for exporters to file their certificate of origin or Form A when they claim the preferential tariffs on authorized products for export to Canada. According to the memorandum, Canada will not require the seals and signatures of the authorities to certify the Form A anymore. It will provide shippers amenable access to the preferential tariffs of their
Consumer News 1. Inflation projected to hit 3%-3.5% this year
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giving them the opportunity to get their own credit card,” he said. De los Santos cited how some people find it difficult to get their own credit cards as they are unable to meet the banks’ requirements. He said that credit card applications will still require evaluation of the sari-sari store owners' capacity to pay the bank, but the process will be made easier as Puregold can provide the bank the applicants’ credit history through the record of purchases made in their stores. (TPS 05/23) products and lessen the administrative burden. Exporters just have to complete the requirements and sign the certificate of origin that assures the goods are ready for preferential trade. Added to the change made by Canada, the exporters can also choose to use the Exporter’s Statement of Origin rather than the Form A. “Changes that have been made by Canada are favorable to exporters of goods eligible for preferential tariffs,” DFA Office of American Affairs Acting Assistant Secretary Gina A. Jamoralin said. (Balita, 5/26)
ank of Philippine Islands (BPI) Asset Management has revised its inflation forecasts downward for this year and the next on the back of stable oil and food prices.
The price of Thai rice per metric ton, which is representative of most food prices, has also remained flat over the past four years, it said. Favorable weather conditions have boosted supply, allowing it to exceed demand.
Consumer prices are expected to increase by 3%-3.5% in 2013 and 2014 from the initial projection of 3.5%-4%, BPI reported.
While some sectors fear that the increase in money supply and the acceleration of economic growth could build inflationary pressures, BPI Asset Management said these risks could be tamed by the global slump.
Oil prices have exhibited only minor fluctuations in recent months and are actually expected to decline, it explained.
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The United States (U.S.) and Europe, it cited, have enjoyed slowing inflation for the same reasons, allowing them to cut their interest rates even more. The risk of a prolonged period of disinflation in the Philippines is high as global demand is expected to remain weak with China, the U.S., and the euro zone showing signs
2. DA, BOC monitor rice and rice-based food from China
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epartment of Agriculture (DA) and Bureau of Customs (BOC) closely monitor the rice products imported from China for a possibility of an excessive lead content. DA has traced 44.4-% cadmium content in some rice-based products like the rice noodles (bihon). Some of these said products came from Guangzhou City. DA Secretary Proceso J. Alcala said 25,000 metric tons (MT) of rice that will arrive in the Philippines will be tested for cadmium content in the BOC quarantine process. According to the Agency for Toxic Substances and Disease Registry (ATSDR) of the U.S. Department of Health, cadmium is a carcinogen which can cause lung damage and fragile bones.
Features Be a responsible consumer
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onsumers have the right to be protected and empowered. A consumer’s responsibilities, on the other hand, serve as guidance in asserting their rights. They are also an assurance that consumer rights are not abused. Generally speaking, the fundamental duty of every consumer is to know their rights, but responsibilities were defined to delve deeper into the role of a consumer in the society. When put into practice by the consuming public, they
of a weak economy in the medium-term, it said. Inflation fell to a 13-month low of 2.6% in April, taking down the year-to-date average to 3%. This figure is right at the low end of the Bangko Sentral ng Pilipinas’ (BSP) 3%-5% goal for this year and 2014. (BWD 05/21) Eating food or drinking water with very high cadmium levels severely irritates the stomach, leading to vomiting and diarrhea. Long-term exposure to lower levels of cadmium in air, food, or water leads to a buildup of cadmium in the kidneys and possible kidney disease, it said. National Rice Program Coordinator Dante S. Delima said the cadmium content may have come from the farms in Southern China. Delima advised Filipino consumers to stop patronizing rice and rice-based products if they do not know where it came from. (Balita 05/25; GMA News 05/24)
can greatly contribute in achieving the ideal state of consumer protection in the country. Critical awareness The consumer has the responsibility to be more alert and questioning about the use, price, and quality of products and services. Consumers are given the right to information and therefore have the responsibility to ask questions. How much is this product? What can it do? Is it safe to use? What are its hazards to my health? These are very
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basic questions and the answers to them are very important in guiding and assuring consumers to get the best value for their money.
Environmental awareness The consumer has the responsibility to understand the environmental consequences of consumption.
Action The consumer has the responsibility to assert themselves and act to ensure that they get a fair deal.
Consumers should recognize their individual and social responsibility to conserve natural resources and protect the Earth for future generations. Practice proper waste management and follow the three R's—reuse, reduce, and recycle. Choose and make use of environment friendly products.
Consumers have their rights so they can be empowered to seek what is due them. Social concern The consumer has the responsibility to be aware of the impact of personal consumption on other citizens, especially the less fortunate, exploited, or disadvantaged groups, whether in the local, national or international community. In today's difficult times where resources are scarce, it is the responsibility of consumers to think of the effect of their actions and choices on other people's lives. Make use of resources wisely and never be wasteful. Practice conservation and share to those who are in need.
ASEAN Watch 1. PHL woos American firms during ASEAN meet in U.S.
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Solidarity The consumer has the responsibility to organize together to develop the strength and influence to promote and protect the rights, welfare, and interests of the consuming public. Consumers can make their voices heard as a united consumer sector. Cooperate and collaborate with the government in ensuring consumer protection in the country. Organize yourselves to come up with better legislations in safeguarding your welfare and refining the way people do business in the Philippines.
epartment of Trade and Industry (DTI) Secretary Gregory L. Domingo urged American firms to invest and do business in the Philippines during the Association of Southeast Asian Nations (ASEAN) Economic Ministers Roadshow in the United States (U.S.) recently.
that total approved foreign investments for 2012 went up by 12% to P289.1B from the previous year’s P258.2B.
“Our weakness is in manufacturing so we would like to continue to attract investments in manufacturing, but for inclusive growth purposes, we want to attract tourism and agricultural activities, especially those which can provide jobs in provinces,” he said.
The economy expanded by 7.8% in the first quarter, higher than the 6.5% growth in the same period last year. So far, the first-quarter result was the highest growth posted in the Aquino administration.
The government is seeking to attract more investments to sustain the country’s strong economic growth.
(TPS 06/03)
Data from the National Statistical Coordination Board (NSCB) showed
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2. PCCI, other groups study more inter-Asian RORO routes
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he Philippine Chamber of Commerce and Industry (PCCI), the Association of Southeast Asian Nations Business Advisory Council (ASEANBAC) Philippines, and other business groups are in the process of looking at more inter-Asian routes which can be used for roll-on, roll-off (RORO) vessels. The Mindanao-North Sulawesi route was first identified last year and PCCI wants to finally develop this route to complement the existing Davao-Bitung, Indonesia route. “We want to develop the MindanaoNorth Sulawesi route and the Batangas-China-Hanoi one,” PCCI Vice Chairman Donald G. Dee said. Dee said PCCI’s counterparts in China are amenable to the idea. He also said inter-Asian RORO routes allow for greater integration and facilitate free flow of goods and people. (BWD 05/31)
STATWATCH P289.1B Total approved foreign investments for 2012, up 12% from 2011’s P258.2B
P137.2M Total sales from Diskwento Caravans as of May 17, 2013
720 Number of booths in the 9th IFEX vs. 300 in the 8th IFEX 24.1%
Employment outlook index in Q3, according to a BSP survey
7.8% PHL’s GDP growth for Q1 6.2% Barclay’s projected growth for PHL for 2013
3%-3.5% BPI’s expected increase in consumer prices for 2013
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What’s New? (A synopsis of selected book acquisitions at the DTI-TIIC library)
Vol. 17, No. 13 10
Title: Materyales: Catalogue and Directory of Construction & Building Paraphernalia Publisher: RADA Ventures Publishing Inc.
Title: Central Banking for Every Juan and Maria
Author: Ignacio R. Bunye Publisher: Tomir Books
The book is a compilation of various directories related to construction: associations, realty and developers, contractors and suppliers arranged alphabetically by category with contact details such as addresses, telephone and fax numbers, and product/line or services offered. Contains reading about the construction industry’s professional organizations, their thrust, goals, and program.
Legend: BMI - Business Mirror BWD - Business World MAT - The Manila Times PDI - Philippine Daily Inquirer TPS - The Philippine Star Balita GMA News Rappler
Entered as Third-Class Mail at the Makati Central Post Office under Permit No. PM-04-08 valid until 31 December 2013
Call Number: 45.608/04/BUN/2011 This book is for the person with zero to very little knowledge on banking and finance who would like to know more about central banking in the Philippines. Explains in everyday, easy-to-read language the operations/functions of the Bangko Sentral ng Pilipinas (BSP) and how it affects not only the national economy but also the lives of the Filipinos. It also contains helpful information on financial literacy.
Philippine Postal Permit No. PM-04-08
Call Number: SITC 66/00.07/ MAT/2013
Editor-in-Chief: Anne L. Sevilla Managing Editor: Vic S. Soriano Associate Editor: Resty P. Par Writers: Jam A. Hourani, Hazel S. Dizon, Joanna D. Cruz, Airiz A. Casta, Kit S. Andaya Design/Layout: Ren C. Neneria Circulation: Myrna V. De Los ReyesTo subscribe, email: publications@dti.gov.ph