Dataline 23 (2013) by Department of Trade and Industry

dataline

November 18, 2013 1

November 18, 2013 Vol. 18, No. 23

dataline

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 Foreign investments grow by 126.9% Inside DTI 1. IPOPHL creates Bureau of Copyright 2. DTI-Cebu transfers to new location Good News, Philippines! 1. Garment exports seen rising 30% 2. Services seen to fuel export growth 3. Aquino cites semiconductor, electronics industry MSME News 1. OKB trade fair posts P29.4-M sales 2. MSMEs appeal for listing fee exemption Business Update 1. BOI open to lower vehicle output limit 2. DTI eyes safeguard duty on steel imports 3. DTI, BOI hold 3rd TID Updates

Consumer News 1. BPS upholds consumer right to safety via Product Certification Scheme 2. DTI holds international Roadshow on Balikbayan Boxes Features Pinoy handicrafts featured in Sikat Pinoy fair ASEAN Watch 1. PHL ready for agreements with EU 2. PHL seen as ASEAN design hub Statwatch What’s New?

dataline

Focus Foreign investments grow by 126.9%

Vol. 18, No. 23 2

oreign investments approved by the country’s investment promotion agencies (IPAs) rose by 126.9% to P93.4B in the first semester this year from the P41.2B recorded in the same period last year. “This promising investment trend is an indication and an encouragement as well that we, the government and private sector, are taking the right path with our Industry Development Program (IDP) which we started in 2012,” Department of Trade and Industry (DTI) Undersecretary for Industry Development and Trade Policy Group (IDTPG) Adrian S. Cristobal Jr. said. Foreign investments in the second quarter more than doubled to P59.8B from P22.7B in the comparative period in 2012. The Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA), both agencies attached to the DTI, led the IPAs in attracting foreign investments into the country. The manufacturing sector grew 10.3% in the second quarter while the construction sector posted 17.4%, contributing to the total industry growth of 10.3% in the period. Cristobal, who also sits as BOI Managing Head, said the BOI has been updating industry roadmaps to revive domestic manufacturing. “With the unified goal of building and enhancing competitiveness

Inside DTI 1. IPOPHL creates Bureau of Copyright

he Intellectual Property Office of the Philippines (IPOPHL) is creating a new bureau for the accreditation of organizations that collect royalties for copyrighted works used for commercial purposes in line with the amended Intellectual Property (IP) Code.

of Philippine industries, we have thus far completed 20 sectoral roadmaps and we expect more to be completed in the coming days particularly from the electronics industry, motorcycle parts, creative industries, and processed food,” he said. The latest completed roadmaps are on forest-based industries, specifically paper and rubber. The rubber industry roadmap aims to propel its products to become key contributors to the country’s economic development. For the long-term, the sector targets to upgrade manufacturing skills and technical and market standards to boost its links with local and export markets. Industry data show that the rubber industry produced 442,990 metric tons (MT) of rubber in 2012 and that it contributed P3.4B to the gross domestic product (GDP) in the same year. Meanwhile, the paper industry roadmap envisions serving all major pulp and papering requirements of the country and developing high-value and quality pulp and paper products in the long-term. The DTI and BOI launched the IDP last year to support the Philippine Development Plan’s (PDP) mandate to formulate a Comprehensive National Industrial Strategy (CNIS). (MAB 09/26)

IPOPHL Director General Ricardo R. Blancaflor said the IPOPHL could create the Bureau of Copyright under the amended IP Code signed by President Benigno S. Aquino III earlier this year.

dataline

November 18, 2013 3

The new bureau, which the IPOPHL expects to be in place by early next year, will be responsible for promoting awareness of IP rights and accrediting collective management organizations (CMO) or those that collect royalties of copyrighted works being used in public places. He noted that while the Filipino Society of Composers, Authors and Publishers (FILSCAP) already collects fees for the usage of works of composers, authors, and publishers, many establishments still want to pay royalties to CMOs accredited by the government.

2. DTI-Cebu transfers to new location

he Department of Trade and Industry (DTI)-Cebu Provincial Office has relocated to ensure uninterrupted service to its clients due to the recent earthquake that struck the province.

“What mall owners want is for the government to regulate the CMOs,” Blancaflor said. Performer’s Rights Society of the Philippines Corporate Secretary John Lesaca explained that while the FILSCAP has been collecting royalties for copyrighted works, collections have been small as many users are not yet aware of the need to pay for the use of such works. Lesaca said under the amended IP Code, even performers such as recording artists should be paid for the use of copyrighted works.

Research and Business Assistance Center (Nerbac) on Lapu-Lapu Street, Cebu City. They may be reached at (032) 255.3926 and (032) 255.6971.

DTI-Cebu employees are temporarily housed at the National Economic

Good News, Philippines! 1. Garment exports seen rising 30%

utlook for foreign demand for Philippine garments and hard goods is rosy next year, with the country’s revenues projected to grow 30% to USD 500M. There has been resurgence in demand for these products from the United States (U.S.), Europe, and some Asian countries, Foreign Buyers Association of the Philippines (FOBAP) President Robert M. Young said. “Next year’s 30-% increase in sales is very modest. The inquiries never came two to three years ago but now,

there are so many inquiries that are coming in. Inquiries are indicative of the increased business next year,” he said. Young added that they are now making product samples which will be sent to buyers for approval or to fix defects. He was hopeful that the Philippines would receive more orders due to the rising cost in China and as the U.S. suspended some of the trade benefits for Bangladesh over factory conditions. (TPS 10/21)

dataline

2. Services seen to fuel export growth

Vol. 18, No. 23 4

ervices and non-electronics exports are expected to boost the country’s total export receipts to USD 120B by 2016. “We have not changed our overarching goal of doubling exports by 2016. We’ll probably tweak some of our strategies to reach that goal under the Philippine Export Development Plan (PEDP). We will take a look especially at targets for the services sector, which is doing very well,” Department of Trade and Industry-Bureau of Export Trade Promotion (DTI-BETP) Director Senen M. Perlada said. Perlada explained that the new PEDP for 2014 to 2016, which might be released by the Export Development Council (EDC) early next year, will include a special section that would highlight the services sector. This sector refers not only to the business process outsourcing (BPO) sector but also services in the areas of tourism, health management, architecture, education, and engineering.

it is expected to account for 22% of the country’s total exports by 2016, up from only 9% in 2002. “At present, electronics exports comprise 40% of total exports. Non-electronics exports account for 60% and are what keep us afloat. Merchandise exports are expected to be positive driven by agriculture products, woodcraft and furniture, processed products, gifts, toys and housewares,” he said. The EDC, which is composed of representatives from the government and the private sector, has started to undertake initial steps toward the crafting of the PEDP 2014-2016. Consultations are expected to be held starting next month. For this year, the DTI has set an export target of USD 81.5B on the back of rising non-electronics shipments and a robust services sector. As previously reported, the country aims to post USD 61.1B in merchandise shipments and USD 20.4B in service exports for this year. (PDI 10/18)

Perlada said the services sector is performing really well and that

3. Aquino cites semiconductor, electronics industry

resident Benigno S. Aquino III cited the Philippine semiconductor and electronics industry for its contribution in helping the government revolutionize the country’s economic growth amid the global crisis. “Despite a year-on-year decline in the electronics industry’s share in total exports, I’m told an additional 31,000 Filipinos found employment with the industry in 2012,” Aquino said. He commended the semiconductor and electronics industry

for its impressive performance in the past years, bringing in more investments to the country. “There is also the 10-% increase in the investments the industry recorded, from USD 2.45B in 2011 to USD 2.7B in 2012,” he said. Electronics is acknowledged as the main driver of the Philippine economy, accounting for USD 22.56B of the country’s total exports for 2012.

dataline

MSME News 1. OKB trade fair posts P29.4-M sales

November 18, 2013 5

roduct exhibitors in the recently held 17thOrgullo Kan Bikol (OKB) Regional Trade Fair 2013 at SM Megamall registered P29.4M in total sales, 37% higher than last year’s P18.6M. “Bicolano products have really evolved and have become world-class,” Department of Trade and Industry (DTI)-5 Regional Director Jocelyn LB. Blanco said, adding that 129 new products were made available during the OKB fair. The fair, which has been institutionalized through the years, was a DTI joint project with the OKB Association, Inc., Philippine Exporters Confederation, Inc. (PHILEXPORT), Rural Micro-Enterprise Promotion

2. MSMEs appeal for listing fee exemption

he Filipino-Cebuano Business Club, Inc. (FCBI) has called on grocery store and supermarket owners to exempt them from paying listing fees to give them better chances of accessing a wider market. The fees imposed by grocery store operators are too high for small-scale manufacturers and suppliers, making it difficult for them to offer their products in large establishments, FCBI President Rey Calooy said.

Programme (RuMEPP), and Bicol local government units (LGUs). OKB Fair 2013 Special Awards Top 3 Sellers • DTI-Comprehensive Agrarian Reform Program (CARP) Camarines Sur • DTI-CARP Albay • Morin Crafts Best Dressed Booth J. Emmanuel Pastries Best Sellers • • • •

Ceramics Fine jewelry Furniture Homestyle

• Pottery • Processed foods • Wearables

government agencies representatives, and FCBI convened to discuss a resolution on the listing of products imposition for micro, small, and medium enterprises (MSMEs). The resolution shall possibly include the space provision for MSMEs in malls and supermarkets to promote their products, Department of Trade and Industry (DTI) Cebu Business Development Division Chief Elias Tecson said.

The Cebu City local government officials, supermarket owners,

Business Update 1. BOI open to lower vehicle output limit

he Board of Investments (BOI) is willing to reduce the minimum volume of production for automotive firms to qualify for incentives under a proposed roadmap. Department of Trade and Industry (DTI) Undersecretary for Industry Development and Trade Policy Group (IDTPG) Adrian S. Cristobal Jr. said the minimum

production volume that automotive firms have to meet to qualify for incentives being eyed under the industry roadmap can be less than 40,000. Cristobal, who also sits as BOI Managing Head, said setting the minimum volume of production for incentives qualification is dependent on the automotive market’s rate of growth and the existing capacity.

dataline

2. DTI eyes safeguard duty on steel imports

Vol. 18, No. 23 6

he Department of Trade and Industry (DTI) may impose preliminary safeguard duty on galvanized steel iron and pre-painted sheets and coil imports after it completes its initial investigation of a petition filed by Puyat Steel Corp. Department of Trade and Industry (DTI) Undersecretary for Industry Development and Trade Policy Group (IDTPG) Adrian S. Cristobal Jr. said that if the preliminary investigation would show that increased imports threaten the local industry, the DTI may forward the case to the Tariff Commission which would then conduct its formal investigation.

Consumer News 1. BPS upholds consumer right to safety via Product Certification Scheme

2. DTI holds international Roadshow on Balikbayan Boxes

he Bureau of Product Standards (BPS) safeguards consumer welfare through its various programs and services such as the BPS Product Certification Scheme. Under this program, the DTI-BPS issues the Philippine Standard (PS) license and the Import Commodity Clearance (ICC) certificate to a manufacturer or importer of products that are under the BPS’ list of Philippine National Standards (PNS) for mandatory certification.

he Department of Trade and Industry-Philippine Shippers’ Bureau (DTI-PSB) recently conducted a roadshow on Balikbayan Boxes for overseas Filipinos (OFs) and freight forwarders. “Through the roadshow, we intend to bring it loud to Filipinos abroad that they need to be vigilant consumers to avoid untoward incidents regarding their balikbayan boxes,” DTI Secretary Gregory L. Domingo said.

The DTI has extended the deadline for the concerned parties’ comments on the issue for 15-20 days when they have failed to do so in the five-day period given to them after the issuance of notice of investigation. Increased imports’ injuries to domestic industry as cited by Puyat Steel Group in their petition • • • • • • •

Declining market share Decreasing production sales Decreasing capacity utilization Declining productivity Declining profitability Price suppression Undercutting

Home appliances required to undergo BPS certification scheme • Air conditioners • Audio and video products such as TV sets and CD,VCD, and DVD players • Electric fans • Flat irons • Kitchen machines such as blenders, microwave ovens, rice cookers, airpots, and coffee makers • Refrigerators • Toasters, electric stoves, and hot plates • Washing machines

The roadshow was held in countries with the most number of complaints regarding mishandled or undelivered balikbayan boxes. Tally of complaints regarding naval shipment of balikbayan boxes reached 208 in 2011 and 150 in 2012. “Although most of the complainants are the consignees or recipients of the balikbayan boxes here in our country. The DTI needs to educate OFs who have sent the balikbayan

dataline

November 18, 2013 7

boxes here,” DTI-Consumer Welfare and Business Regulation Group (CWBRG) Officer-inRoadshow activities: • Awareness sessions • Dialogues and consultations o Problem at hand o Fraudulent activities o Actual and resolved cases • Assistance programs Dialogue participants: • OF individuals, associations, and organizations • Embassy and consular offices • Foreign service officers • Overseas welfare officers • Legitimate freight forwarders

Features Pinoy handicrafts featured in Sikat Pinoy fair

xceptional creations by crafters from different regions in the country were showcased in the second installment of the Sikat Pinoy fairs spearheaded by the Department of Trade and Industry-Bureau of Domestic Trade (DTI-BDT). The Sikat Pinoy National Handicrafts Fair, with the theme “Piling-piling Produktong Pilipino,” was held on September 19-23, 2013 at the Megatrade Hall, SM Megamall, Mandaluyong City. Awards were given to outstanding works such as the Most Innovative Product under the furniture

ASEAN Watch 1. PHL ready for agreements with EU

he Philippines, through the Department of Trade and Industry (DTI), is reviewing the benefits of free trade agreements (FTAs) with the four members of the European Free Trade Association (EFTA) composed of Switzerland, Liechtenstein, Iceland, and Norway. The talks about the possible trade agreement started in 2011 during the World Trade Organization (WTO)

Charge Atty. Victorio Mario A. Dimagiba said.

Overseas with most complaints: 1. Dubai, United Arab Emirates (UAE)—156 2. Chicago, United States of America (USA)—53 3. Riyadh, Saudi Arabia—52 4. Kuwait—44 5. Jeddah, Saudi Arabia—26 6. Singapore—18 7. Hong Kong—13

and furnishings category which was won by Edmund Fajardo of the All ‘Bout Kawayan (ABK) 101 Corporation for their engineered bamboo high back chair. The group sought to enhance their knowledge of bamboo processing, and with government assistance, their business flourished. (Pilipino Mirror 10/22) Handicraft products exhibited • • • •

Accessories Décor Furnishings Wearables

Ministerial Conference in Geneva, Switzerland. Last June, DTI Secretary Gregory L. Domingo and Swiss State Secretary for Economic Affairs Marie Gabrielle Ineichein-Fleisch signed a memorandum of understanding (MOU) that started the discussions for a possible FTA between the Philippines and Switzerland.

dataline

Vol. 18, No. 23 8

If approved, the FTA will be the Philippines’ first approved agreement with a European country. The DTI is also expected to apply for the European Union’s (EU) new duty-free scheme after some indentified Philippine agencies have completed the necessary requirements. Philippine exports will enjoy expanded duty-free perks to the EU by next year, if the country’s application will be approved. Also, if the country qualifies for Generalized System of Preferences Plus (GSP+), 6,274 products would be slapped with zero tariff, allowing Philippine exports to the EU to grow by 12% alongside the creation of 270,000 new jobs.

2. PHL seen as ASEAN design hub

he Department of Trade and Industry (DTI) will try to position the Philippines as a design and craftsmanship hub. The DeXign Global was recently launched in preparation for the Association of Southeast Asian Nations’ (ASEAN) Economic Community (AEC) in 2015. Center for International Trade Expositions and Missions (CITEM) Executive Director Rosario Virginia C. Gaetos said the AEC would be established in two years’ time. “DeXign Global will be helpful especially to young designers because it introduces trends and innovations for home and fashion. The local design community has to prepare and learn how it can promote its products to the 600M potential customers in the region,” Gaetos said.

STATWATCH USD 120B PHL’s targeted total export receipts by 2016

USD 81.5B Export target set by the Department of Trade and Industry (DTI) for 2013, as the country aims to post

USD 61.1B in merchandise shipments and USD 20.4B in service exports this year

P93.4B Foreign investments approved by the country’s investment promotion agencies (IPAs) in the first semester this year, rising by 126.9% from the P41.2B recorded in the same period last year

USD 500M Targeted revenues from foreign demand for Philippine garments in 2014 USD 22.56B Electronics’ share in PHL’s total exports in 2012

442,990 MT Rubber produced in 2012, contributing P3.36B to the gross domestic product (GDP) in the same year

270,000 Jobs to be generated by PHL’s qualification to Generalized System of Preferences Plus (GSP+)

6,274 PHL products to have zero tariff once the country qualifies for the GSP+

dataline

November 18, 2013 9

What’s New? (A synopsis of selected book acquisitions at the DTI-TIIC library)

Creative Business

Title : Grow Your Handmade Business: How to Envision, Develop, and Sustain a Successful

Author : Kay, Ellie Call Number : 04/KAY/2010

It focuses on issues involved in turning creative hobby into a successful business, from mapping out a business plan to expanding production and distribution, finding funding, and addressing legal matters. With this definitive guide, one will discover how to grow business beyond the dining room table and finally quit the day job. 272p.

In this book, the author shares her one-hour-a-week program that has made it possible to take care of her family and do it all debt-free. Provides entertaining anecdotes, easy-to-follow charts, and practical advice, which is both fun and feasible. Also shows how one will be able to get out of debt and save for the kids’ college; have meaningful and debt-free vacations; pay cash for the cars; make a difference in the world by giving generously; find financial peace with the family; be contented with current circumstances; and latch onto hope for financial future. 213p.

Entered as Third-Class Mail at the Makati Central Post Office under Permit No. PM-04-08 valid until 31 December 2013

Philippine Postal Permit No. PM-04-08

Author : Chapin, Kari Call Number : 06.08/CHA/2012

Legend: MAB - Manila Bulletin PDI - Philippine Daily Inquirer TPS - The Philippine Star Pilipino Mirror

Title : The 60 Minute Money Workout

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: Kit S. Andaya/Ren C. Neneria Circulation: Myrna V. De Los ReyesTo subscribe, email: publications@dti.gov.ph