dataline
14 July 2014 1
dataline
14 July 2014 Vol. 19, No. 14
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 DTI plan may reduce cost of doing business in PHL Inside DTI 1. GREAT Women to promote competitiveness in PHL female-led enterprises 2. DTI-Davao del Norte promotes ICT sector Good News, Philippines! 1. PHL sees gains from improving global economy 2. PEZA investments rise 37% 3. 6.8% growth in Q2 likely 4. US, other countries eye Mindanao, other areas MSMEs 1. Domingo bats for broader approach to SME and trade integration 2. P1.88-M SSF projects turned over to Ifugao 3. Hot chili businesses in DavaoOr to register with FDA soon
Business Update PHL beverage makers urged to seize opportunities in Canada Consumers News 1. FDA warns public on bottled stem cell booster 2. DSWD warns against 4Ps text scams Feature DTI banks on growing fashion industry ASEAN Watch PHL to remain top market for cloud computing in SEA Statwatch What’s New?
dataline
Focus DTI plan may reduce cost of doing business in PHL
Vol. 19, No. 14 2
T
he Department of Trade and Industry (DTI) is pushing for the creation of a “national trade repository” that will ensure a more transparent environment for trading and help reduce the cost of doing business in the Philippines. At the same time, the development of the Philippine National Trade Repository (PNTR) will also support the country’s compliance with its international commitments, such as the Trade Facilitation Agreement under the Bali Package, which was adopted by the World Trade Organization (WTO) in December last year. DTI Undersecretary for Industry Development Group (IDG) Adrian S. Cristobal Jr. said the proposed PNTR would be a web-based portal that would provide a single source of comprehensive, accurate, and current information on all trade matters. “The establishment of the PNTR is an important component of the government’s trade facilitation strategy. It provides businesses easier access to information and facilitates their compliance with prescribed regulations. The PNTR will create a more
Inside DTI 1. GREAT Women to promote competitiveness in PHL female-led enterprises
D
epartment of Trade and Industry-Management Services Group (DTI-MSG) Undersecretary and Chief of Staff Nora K. Terrado expressed in her ministerial statement at the 2014 Asia-Pacific Economic Cooperation Women and the Economy Forum (APEC-WEF) that the second phase of the Gender Responsive Economic Actions for the Transformation of Women (GREAT Women) program is set to be undertaken by the Philippines. The phase two of the GREAT Women program aims to improve
transparent environment for trading and will help reduce the amount of transaction time and costs,” he said. The PNTR is also envisioned to connect and interoperate with the national trade repositories of other ASEAN member-states to create the ASEAN Trade Repository (ATR) under the ASEAN Trade in Goods Agreement (ATIGA). The PNTR is expected to be launched in 2015, as part of the country’s preparation for the forthcoming establishment of the ASEAN Economic Community. The ATR will serve as a gateway of regulatory information at regional and national levels. It will carry, among others, information on tariff nomenclature; preferential tariffs offered under the ATIGA; rules of origin; nontariff measures; national trade and customs laws and rules; documentary requirements; and list of authorized traders of the 10 ASEAN member-states. Once the ATR is fully functioning, businessmen, as well as government agencies and researchers, may access the information through the Internet, the ASEAN said.
competitiveness of female-led enterprises by enjoining and aligning stakeholders to induce a gender-responsive environment of better governance and enterprise value chain. The Canadian International Development Agency provides technical and financial support for the GREAT Women program. Undersecretary Terrado also reported significant actions the country has taken in pursuance of the APEC Women Agenda, as well as the advantage of employing Public-
dataline
14 July 2014 3
Private Partnerships and multi-sectoral collaborations taken-up by the APEC-WEF. “While the Philippines had fully closed the gender gaps in the education and health categories, we still have room to improve in the areas of economic and political empowerment. Thus, our plan is to continue with our GREAT Women Program,” Terrado said. The country placed fifth out of 136 economies in the World Economic Forum’s 2013 Global Gender Gap Report which looks at four fundamental categories. “We will work with APEC economies in gathering relevant data needed to form the baselines and analyses. We support information sharing for more substantive moves to advance the Women Agenda. We believe in developing useful knowledge base to help gain greater stakeholder engagement,” the Terrado added.
2. DTI-Davao del Norte promotes ICT sector
M
embers of the Information and Communications Technology (ICT) industry in Davao Del Norte as well as representatives from the academe, call center agencies, internet cafes, and local government units participated in the Focus Group Discussion conducted by the Department of Trade and Industry (DTI). The forum gathered 36 participants that discussed the possibilities of the ICT sector in the area and aimed to develop capabilities of the members to join the ICT loop in Davao. ICT Davao, Inc. Chairperson Samuel Matunog noted that Davao del Norte
Successful programs espoused by APEC-WEF Department of Labor and
Employment (DOLE) Kabuhayan Program DTI-Shared Service Facilities (SSF) Technical Education and Skills Development Authority (TESDA) and Coca-Cola Philippines’ partnership training programs, microfinance, and business management mentoring Global Gender Gap Report categories Economic participation
and opportunity Educational attainment Health and survival Political empowerment
Areas for relevant action Green growth Health and education Information and communications
technology (ICT) Innovation
provides skilful talents to Davao City’s business process outsourcing (BPO) sectors but can become a hub for ICT investors. Areas that need improvement are internet connection and power supply. Agriculture-based ICTs are seen as the most applicable for the province. The turn-out of the discussion was the conception of an 11-member ad-hoc committee that would evaluate the capabilities of the industry and formulate a development plan.
dataline
Good News, Philippines! 1. PHL sees gains from improving global economy
Vol. 19, No. 14 4
T
he Philippines should take advantage of the improving global economy to support the country’s economic growth in the coming quarters, Socioeconomic Planning Secretary Arsenio M. Balisacan said.
during the period with a growth of 6.8%, followed by the industry sector with 5.5%.
“The country is now benefiting from the sustained growth in the global manufacturing industry,” Balisacan said.
“Given recent performance, it is clear that the country needs to diversify the economy, develop resiliency, and maximize benefits from the improving global economy,” he said.
He said exports of goods and services expanded by 12.6% in January to March, a strong growth from the 10.6-% contraction in the same period in 2013. The country’s gross domestic product (GDP) expanded at a slower rate of 5.7% in the first quarter from 6.3% the previous quarter due to the lingering impact of natural disasters, notably Super Typhoon “Yolanda.” On the supply side, the services sector mainly propelled the economy
2. PEZA investments rise 37% ECOZONE Growth Sectors 2014 Agro-industrial Electronics (automotive electronics,
consumer electronics and printing equipment) Garments, bags and shoes IT services Transport (aerospace, car parts and shipbuilding)
I
nvestments approved by the Philippine Economic Zone Authority (PEZA) rose by 37% in the first five months of the year as more manufacturing companies established operations within the country’s export zones. PEZA-approved projects reached P101.48B in the January-May period this year from P74B in the same period last year. PEZA Director General Lilia B. de Lima said foreign investors keep on coming to the country because of the improving investment climate. She said the bulk of the new investments was in manufacturing, particularly electronics. PEZA Promotions and Public Relations Manager Elmer H. San
Balisacan believed that the economy would continue to grow at an increasing pace in the succeeding three quarters despite the slowdown.
Balisacan said the implementation of key reforms and strategies in the Updated Philippine Development Plan would definitely provide a boost to growth prospects. He said speeding up the reconstruction and rehabilitation efforts in the disaster-stricken areas is crucial, noting that “reconstruction efforts will rebuild assets and restore supply chains.” (TPS 06/02)
Pascual said ecozone development projects were also on the rise. San Pascual said a number of economic zones have been expanding their areas, while many new buildings were also constructed for information technology (IT) locators outside Metro Manila, especially in the Visayas. Latest PEZA data showed that ecozone exports inched up 2.6% to USD 10.33B from USD 10.10B, while direct employment rose by 14.06% to 1.07M. This year, PEZA targets to grow investments, exports and employment by 10%, 8% and 12%, respectively. (PDI 06/04)
dataline
3. 6.8% growth in Q2 likely
14 July 2014 5
A
6.8-% gross domestic product (GDP) growth in the second quarter is possible, given the reconstruction efforts being undertaken and the recovery from the disasters that hit the country late last year, Socioeconomic Planning Secretary Arsenio M. Balisacan said. Balisacan said hitting 6.8% from the second quarter onward is possible given that an efficient system can be put in place to mitigate the effects of the truck ban and with the acceleration of the post-Yolanda reconstruction, coupled with the continuous growth of manufacturing. “Our country has grown faster than 6.8%; so it’s possible for us to reach that, especially considering the recovery and reconstruction efforts we are undertaking,” he said. Balisacan also assured concerned business groups that the prevailing truck ban in Manila will not be a major factor on the second-quarter
4. US, other countries eye Mindanao, other areas
T
he United States (U.S.) and other countries are eyeing various areas, including Mindanao for their next investment ventures.
Presidential Spokesman Edwin Lacierda said U.S. Commerce Secretary Penny Pritzker paid a courtesy call on President Benigno S. Aquino III and brought with her a delegation of businessmen who wanted to see where they could invest. “They are looking at potential areas of investment, like car manufacturing, energy, infrastructure in Mindanao, infrastructure on mass transit and also tourism,” Lacierda said. Lacierda said the business climate in the country had also become more
growth as the government is now seeking a lasting solution to the truck ban. “There is an ongoing discussion with the City of Manila to find a more-permanent solution like increasing movement of cargo through Batangas. We have to develop further the facilities in Batangas so as to accommodate the volume from Manila. The truck ban may have an effect but it’s not going to be a major factor,” Balisacan said. Balisacan said the more significant variable is still the delayed effects of Supertyphoon Yolanda, which extended well beyond the ravaged areas and resulted in a disrupted supply chain in industry sectors. Despite the stalled supply chain, Balisacan assured that the “heavy effects” of Yolanda will diminish in the following quarters, especially if construction efforts are accelerated. (BMI 06/04)
favorable following the signing of the Comprehensive Agreement on the Bangsamoro (CAB) by representatives of the Moro Islamic Liberation Front (MILF) and the government. “Now that we have come to a peaceful agreement with the MILF, many countries have been looking at Mindanao as a potential area for investment. We’ve also seen Association of Southeast Nations (ASEAN) countries looking into Mindanao. And so, U.S. is also one of the countries interested in looking into investments in Mindanao,” Lacierda said. Washington is also seeking to strengthen trade partnership with the Philippines. (TPS 06/05)
dataline
MSME News 1. DTI-Aklan set to implement GPBP projects
Vol. 19, No. 14 6
T
he Department of Trade and Industry (DTI)-Aklan is ready to apply this year’s Grassroots Participatory Budgeting Program (GPBP) projects for municipalities in their area. Beneficiaries for the first issuance of the P3.15-M funding from the Department of Budget and Management (DBM) are the municipalities of Banga, Lezo, and Numancia.
DTI-Aklan has a total grant of P5.8M and 15 projects for nine municipalities under the GPBP and targets 498 beneficiaries and generation of 588 new jobs. Remaining municipalities Ibajay Kalibo Libacao
Malay Nabas Tangalan
Municipalities for first issuance
2. DTI turns over SSF, okays more proposals
Municipality Allocation Industry Banga P300K Blacksmith and metal handicraft project P300K Handicraft-making on buri and bamboo
Beneficiaries 20 participants
No. of Jobs 50 jobs
40 participants
100 jobs
Lezo
P1.6M
Abaca-craft, piñaweaving, pottery, food and fruit processing for skills training
230 participants
185 jobs
Numancia
P950K
Processed food, 204 participants meat and fish processing, confectionery, gifts, decors, and hardwares
250 jobs
T
he Department of Trade and Industry (DTI) is continually deploying the Shared Service
Facility (SSF) program to support various micro, small, and medium enterprises (MSMEs) nationwide.
Region Equipment DTI-Region 2 Cooking equipment and tools/utensils worth P103,000 DTI-Cordillera Fruit processing machinery Administrative worth P979,000 Region (CAR) Packaging machines worth P357,000 Machineries for the coop’s wearable and home style project worth P160,000 Rice wine brewing equipment worth P160,000 Organic products processing equipment worth P228,000 DTI-Region 9 5 Abaca stripping machines and one rope-making machine worth P785,000 5 sewing machines and one rope-making machine worth P179,000 5 Abaca spindle machines and one rope-making machine worth P784,000
Beneficiaries Darapidap Auto Savings Group Inc. (DASG Inc.) in Nueva Vizcaya Lamut Grassroots Savings Development Cooperative (Lagsadeco) Ifugao Federation of Development Cooperatives (Ifedeco) Lagawe Multipurpose Development Cooperative (LMDC) 4 Corners Association Tinoc Organic Product Multipurpose Cooperative (TOPMC) Sulo Agrarian Reform Beneficiaries Multi- Purpose Cooperative (SARBEMCO) in Barangay Sulo, Naga Katipunan ng mga May Kapansanan sa Ipil, Inc. (KAMPIL, Inc.) in Ipil Agrarian Reform Beneficiaries of Marcelo Multi-Purpose Cooperative (ARBEMCO) in Kalawit, Zamboanga del Norte
dataline
14 July 2014 7
The DTI has also approved SSF project proposals in the Davao Region amounting to P4.4M. The SSF program aims to help small businesses, particularly those in the
countryside, in their production of goods and allow them to compete with other businesses. The facilities and equipment are made available for the common use of several MSME groups or cooperatives.
Area
Approved Project Proposals
Beneficiaries
Davao City
Abaca fiber processing project worth P490,000
Sinabadan Tribu Bawa Ancestral Domain Organization (Sitribado) in Toril Fatima Multipurpose Cooperative (FMPC) in Paquibato Upper Tamayong Multipurpose Cooperative (UTMPC) in Calinan Tawan-tawan Multipurpose Cooperative (TMC) in Baguio district Local government unit (LGU) of San Isidro LGU of Baganga
Corn milling facility worth P990,000 Meat processing facilities worth P587,000 Cacao tablea processing worth P782,000 Davao Oriental
Handicraft production facility worth P372,240 Hot chili processing facility worth P505,560 Cacao tablea processing project worth P500,000
Compostela Valley Abaca handicrafts production facility worth P165,000
3. Hot chili businesses in DavaoOr to register with FDA soon
T
he Department of Trade and Industry in Region 11 (DTI-11) is targeting to have all hot chili enterprises in Davao Oriental registered with the Food and Drug Administration (FDA). DTI-11 Officer-in-Charge (OIC) Ma. Belenda Q. Ambi said the enterprises must be FDA-registered in order to use the Intellectual Property Office (IPO)-approved Hot Pablo trademark. DTI-11 has been promoting hot chili production as a livelihood program for those in the areas affected by Typhoon Pablo.
Business Update 1. PHL beverage makers urged to seize opportunities in Canada
B
everage companies in the Philippines are encouraged to explore more business opportunities in Canada amid the growth of single-served coffee systems’ sales.
Kaginhawa-an Coconut Farmers Integrated Cooperative (Kacofinco) in the Municipality of Governor Generoso Cooperative of Handicraft Association of Nabuntaran, Inc. (Chain) in Nambuntaran
The Department will set up shared service facilities (SSF) in Boston, Cateel, and Bagangga to boost and improve the quality of the hot chili products. SSFs that will be set up include equipment for grinding, drying, and packaging. Enterprises to register with FDA Ayana's Siling Kinamayo Ziah Sam Chili El Tigre of M.A.M.A. Chili Trees
Farmers Association
Katumbaw Sili of the Food
Processors Association of Taytayan Subangon Dumang Makers Dory’s Dumang Products Edil's Dumang Products Delia's Chili Products
According to the market report of the Philippine Embassy in Ottawa, Filipino companies should tap into the growing craze among beverage enthusiasts to be able to have the satisfaction
dataline
Consumer News 1. FDA warns public on bottled stem cell booster
Vol. 19, No. 14 8
of brewing their own beverage with consistent results.
USD 1.8B in sales by end of 2017, the report said.
Canada’s single-serve coffee pods’ market is pegged at USD 725M a year and projected to grow to almost
Aside from coffee, single-brew systems also pertain to other beverages such as tea and cocoa.
T
unregistered Inner Power Stem Cell Booster,” Hartigan-Go said.
he public was alerted against a bottled stem cell booster being sold online.
In Food and Drug Administration (FDA) Advisory No. 2014-041, FDA Director General Kenneth Hartigan-Go mentioned that the Inner Power Stem Cell Booster is not registered with the agency and does not meet the requirements for stem cell products. “The public is hereby warned against buying and using the above-identified
2. DSWD warns against 4Ps text scams
T
he Department of Social Welfare and Development (DSWD) alerted the public regarding text scams using the name of its Pantawid Pamilyang Pilipino Program (4Ps). The 4Ps provides cash assistance to poor families to ensure their education, health, and nutrition needs.
FEATURE DTI banks on growing fashion industry
He added, “there are no scientific and clinical studies that would support or back up its health and therapeutic claims.” All FDA inspectors are ordered to seize and confiscate the aforementioned products when found being sold or offered for sale in outlets.
says “Congratulations, from President Noy-Noy Aquino Foundation 4Ps Pantawid Pamilyang Pilipino Program, your sim # won P950,000 as second prize winner in the Handog Pangkabuhayan raffle promo per DTI Permit No. 9513, series of 2013.”
There was a text message from a certain Lyka Ramirez with mobile number 0926.912.4816 that
DSWD does not have any such raffle draw promo. The agency advices all those who will receive this text message to immediately report this to the nearest DSWD office or text to the Pantawid Pamilya Grievance Text Hotline: 0918.9122813.
T
Undersecretary Ponciano C. Manalo Jr. said during the Sikat Pinoy National Fashion Fair opening ceremony.
he Department of Trade and Industry (DTI) is confident that the local fashion and garments industry will continue to grow and eventually go global with steadfast marketing support for promising local enterprises. “This industry is a growing and recovering industry. It is getting back on where it was in the early days of 2000. The fashion and garment industry is back on its feet,” DTI Trade and Investments Promotion Group (TIPG)
The fair, named Piling-Piling Pananamit Pilipino, the first national fashion event organized by the DTI, ran from 21-25 May 2014 at the SM Megatrade Halls 1-3, SM Megamall in Mandaluyong City. More than 150 exhibitors from 15 regions participated in the fair that showcased accessories, apparel,
dataline
14 July 2014 9
bags, footwear, health and wellness products, jewelry, and leather goods. “Trade fairs have been, by far, the most effective strategy, especially in industries that have potential to attract wholesale and retail buyers. Last year, we launched the Sikat Pinoy trade fairs,” Manalo said. For this year, it is the second of five national fairs under DTI’s Sikat Pinoy brand. The three upcoming fairs are the National Arts Fair in October, Furniture and Furnishings Fair in November, and the National Food Fair December Edition. Manalo noted that the fashion and textile and garment industry is in a competitive scenario for Philippine export and local and domestic markets. “The Filipino is the number one design expert in the whole world. The Philippine design is paramount in all that you have seen in Asia. We would like to showcase the ability of Filipino designers, dressmakers, and shoemakers, to be able to capture the wide global market,” Manalo added.
ASEAN Watch PHL to remain top market for cloud computing in SEA
STATWATCH P101.48B Worth of PEZA-approved projects in Jan-May 2014, up 37% from same period last year
P5.8M Total grant of DTI-Aklan for 15 projects in 9 municipalities under the GPBP
P4.4M Worth of SSF projects approved for the Davao Region
12.6% Growth of exports of goods and services in Q1 2014
6.8% Projected growth in Q2 GDP
5.7% GDP growth in Q1 2014 5th PHL’s ranking out of 136 economies in WEF’s 2013 Global Gender Gap Report
Manalo said that DTI’s job is to help and encourage micro, small, and medium enterprises (MSMEs) to participate competitively in the
domestic market and eventually go global.
T
in terms of public cloud spent in the last two years, Microsoft Philippines Lead for Office Tovia Va’aelua said.
he Philippines will likely remain as a major market for cloud computing in Southeast Asia as “double digit” growth in investments for this platform is seen to continue over the next two to three years. This is achievable given that this island nation already has edged out a lot of other markets in the region
“When we look at the growth of our business and the cloud adoption within the Philippines, we’re very confident and excited about the fact that both are going to grow tremendously in the future,” Va’aelua said. (BMI 06/02)
dataline
What’s New? (A synopsis of selected book acquisitions at the DTI-KMIS library)
Vol. 19, No. 14 10
Title : The Global Enabling Trade Report 2014
Title : Asia SME Finance Monitor 2013
Publisher : World Economic Forum Call Number : 00 000/07/WEF/2014
Publisher : Asian Development Bank Call Number : 45 000/03.08.05/ADB/ 2014
This study assesses the quality of institutions, policies, and services facilitating the free flow of goods over borders and to their destinations. It benchmarks the performance of 138 economies in four critical areas: market access; border administration; transport and communications infrastructure; and regulatory and business environment. As a widely used reference, the report helps economies integrate global value chains and companies into their investment decisions. It also provides a tool to monitor progress on certain aspects of global trade. 341p. http://www3.weforum.org/docs WEF_GlobalEnablingTrade_ Report_2014.pdf
This publication is a knowledge sharing product on SMEs in Asia and the Pacific, specially focusing on SME access to finance. It reviews various country aspects of SME finance covering the banking and nonbanking sector, and capital markets. It also helps to support evidence-based policy making and regulations on SME finance in the region. 160p. http://www.adb.org/sites/default/files/ pub/2014/asia-sme-finance-monitor2013.pdf
Legend BMI PDI TPS
- Bussines Mirror - Philippine Daily Inquirer - The Philippine Star
Editor-in-Chief/Patricia May M. AbejoManaging Editor/Anne L. Sevilla Associate Editor/Jam H. Raposon Writers/Resty P. Par, 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