November 05, 2012 1
November 05, 2012 Vol. 16, No. 23
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: firstname.lastname@example.org Online: http://www.dti.gov.ph
In this issue Focus To remain most promising in SEA PHL business confidence up amid global uncertainties
Business Alert 1. DTI vows to revive manufacturing sector 2. PHL handicrafts go upscale
Inside DTI PITC PHARMA officials named
Consumer News 1. Get organized, DTI urges consumer groupd 2. DTI enforcement team seized uncertified helmets in Sta. Rosa 3. DTI warns freight forwarders over undelivered cargoes 4. Auto LPG may trigger illnesses
Good News, Philippines! 1. Contact center industry remains bullish 2. Coco water exports up 80% in H1 3. Handicraft exporters hit target 4. European investors upbeat in PHL MSME/OTOP News 1. DTI plans OTOP franchising 2. DTI-Leyte assists 29 Bahandi exhibitors 3. DTI promotes agri-business opportunities 4. DTI-Quezon holds workshop for buri producers
Features Investments seen to pour into Mindanao ASEAN Watch APEC economies improve ease of doing business Statwatch DTI Direct What’s New?
Focus To remain most promising in SEA
PHL business confidence up amid global uncertainties
Vol. 16, No. 232
lobal business may face continued volatility for some months to come, but the Philippines is bucking the trend with confidence levels climbing ten points from 136 to 146 in the latest Regus Business Confidence Index (BCI) report. The survey’s key findings and statistics showed that the proportion of Filipino companies reporting revenue increases rose from 56% in April 2012 to 67% in October. Also, some 75% of Filipino respondents reported that they were satisfied with their government’s support strategies for business. Notably, the major challenges to small businesses and start-ups were cashflow (40%), sales (39%), cost of marketing and promotion (36%). Respondents also identified key measures for governments to introduce that would substantially help small businesses and start-ups. These were tax exemptions (62%), information services (53%), and low interest loans (52%).
Inside DTI PITC PHARMA officials named
Good News, Philippines! 1. Contact center industry remains bullish
resident Benigno S. Aquino III appointed the Members of the Board of Directors of the Philippine International Trading Corporation PHARMA, Inc. (PPI) under the Department of Trade and Industry (DTI).
oice services remain to be the largest sector in the country’s business process outsourcing (BPO) industry, with contact centers expected to create 800,000 jobs and haul in USD 14.7B in revenues by 2016.
Survey result were based on the views of more than 24,000 senior business people from 92 countries. Meanwhile, financial services firm UBS Securities said the Philippines is expected to remain the most promising economy in Southeast Asia as the country performs better than the regional average. UBS said the Association of Southeast Asian Nations (ASEAN) appeared to operate in a “different dynamic” as effort to build single economy progressed. “Of the larger economies, we think the Philippines will continue to prove to be the most surprisingly impressive,” UBS said, citing the analysis from Economist Edward Teather. The Philippines is clearly surpassing the 10-year average growth rate, recording a gross domestic product (GDP) of 5.9% for the first semester. “That context is important because global and Asian growth is expected to be more modest in the coming years that before the global financial crisis,” the report added. (PDI 10/18)
The appointees were Maria Lourdes T. Baua, Ma. Lourdes F. Rebueno, Bienvenido S. Bautista, and Aurora Ma. F. Timbol. Their appointment papers were signed last October 8. They will be serving from July 1, 2012 until June 30, 2013.
Voice still makes up 64% of the industry’s total number of direct employees, with 493,000, and over 67% of total revenues, or USD 9B, to date. In 2011, the sector grew 21%.
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Job opportunities in the voice industry will continue to double in the coming years, Contact Center Association of the Philippines (CCAP) and Business Processing Association
2. Coco water exports up 80% in H1
he country’s coconut water exports surged by 81% in terms of volume in the first semester of 2012 to 10.25M liters from 5.66M liters in the same period last year. The Philippine Coconut Authority (PCA) also reported a 100.54-% rise in export value to USD 11.8M from USD 5.6M in the previous year. Earlier, the PCA expressed confidence that the 2012 coconut
3. Handicraft exporters hit target
4. European investors upbeat in PHL
of the Philippines (BPA/P) President and Chief Executive Officer (CEO) Benedict C. Hernandez said. (MAB 10/18)
water production would exceed the 2011 level. The rise in coconut water exports can be attributed to the growing health consciousness of the market. The next frontier in consumer availability for coconut water is in packaging, which can meet increasing demand in exports and local consumers. (PDI 10/18)
the USD 100-M mark,” Philippine Chamber of Handicraft Industries, Inc. (PCHI) President Dennis A. Orlina said.
“I think we have already breached the aggressive target and now stand at
PCHI had set a conservative 4-% to 5-% growth target and an aggressive target of 10-% in sales growth for this year. (BWD 10/17)
andicraft exporters have already breached their 10-% growth target for 2012 as Unites States’ (U.S.) demand stayed strong despite tepid growth in the world’s largest economy.
uropean businesspeople are showing fresh interest in the Philippines, infusing USD 200-M aviation equipment supply investment from a French firm. “The visit of the French Prime minister changes the equation. The perception of business is optimistic,” said European Chamber of Commerce of the Philippines (ECCP) President Michael Raeuber, referring to the recent country visit of French Prime Minister Jean-Marc Ayrault,the first European leader to come to the country in a long time. European companies in the Philippines, such as Continental
Temic, STEAG, Lufthansa Technik, and Nestlè, are expanding their investments here. ECCP Vice President Henry Schumacher said a lot of European companies are also keen on participating in private-public partnership (PPP) programs on a transparent and level playing field. Raeuber said the eurozone crisis is an opportunity for European businesses to look at Asia and the Philippines not only as a production base but also as a market for their products. (MAB 10/17)
MSME/OTOP News 1. DTI plans OTOP franchising
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he Department of Trade and Industry (DTI) is eyeing at converting One Town, One Product (OTOP) stores into franchises to upscale the program not just as a product but also as a brand.
DTI Undersecretary for Regional Operations and Development Group (RODG) Merly M. Cruz said the Department is partnering with the Association of Filipino Franchisers Inc. (AFFI) to replicate and expand successful business models to spread to other parts of the country. DTI Secretary Gregory L. Domingo has instructed the group to help micro, small, and medium enterprises (MSMEs) to explore opportunities in franchising to boost their feasibility.
2. DTI-Leyte assists 29 Bahandi exhibitors
he Department of Trade and Industry (DTI)-Leyte has held a product development support for the Bahandi Trade Fair exhibitors. There were 29 beneficiaries, nine of which come from Rural Micro Enterprise Promotion Program (Rumepp), 14 from One Town, One Product (OTOP), and six from
3. DTI promotes agri-business opportunities
he Department of Trade and Industry (DTI) has embarked on aggressive promotions of agri-business opportunities in Aurora. DTI-Aurora Provincial Director Edna Dizon said the DTI has been conducting forums and meetings with key stakeholders and existing industry players to identify issues and concerns affecting the priority industries’ development .
The DTI has aligned the OTOP with various industry clusters to develop innovative and globally competitive enterprises, and make them contribute significantly to employment generation and inclusive growth. Strategic development plans for target industry clusters were drafted using the value chain framework during the series of industry cluster development planning workshops held in Central Visayas, Northern Luzon, Southern Luzon, and Southern Mindanao. Another support program is the establishment of shared services facilities (SSF) that provide free equipment or technology to the different priority clusters. Comprehensive Agrarian Reform Program (CARP). DTI-Leyte has been extending assistance to these exhibitors to come up with better packaging and labelling and in marketing their products. (MAT 10/20)
She said the Department also included gifts, decors and housewares, processed foods, tourism, health and wellness, and wearables and homestyles in the priority plan. The DTI also initiated a series of Value Chain Analysis and Mapping for the province’s industry clusters to determine the extent of gaps within the industry chains functional stages. (MAT 10/25)
Dizon said the priority areas of investments are activities related to banana, coffee, coconut, and Pangasius.
4. DTI-Quezon holds workshop for buri producers
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he Department of Trade and Industry (DTI)-Quezon has held product development workshop for Quezon buri producers as part of continuing program to assist micro, small, and medium enterprises (MSMEs) in the province. The participants, who are members of Sampalok Weavers Association, Sariayanas, Pagbilao Weavers, Unique Weavers Association of
Business Alert 1. DTI vows to revive manufacturing sector
he Department of Trade and Industry (DTI) will come up with a comprehensive industrial development master plan by first quarter next year to revitalize the country’s manufacturing sector. Over 50 industry roadmaps are in their various development stages while some sectors are still catching up with the deadline, said DTI Undersecretary for Industry Development and Trade Policy Group (IDTPG) Adrian S. Cristobal Jr. said.
2. PHL handicrafts go upscale
Unisan, and Kalipunan ng Liping Pilipino of Tagkawayan, were briefed on the latest trends and designs on buri bags. They were also given a one-on-one workshop on the designs specific to the municipality’s need. The design consultant from Manila gave each group eight to ten designs to be developed into prototypes. (MAT 10/04)
The completion of the comprehensive manufacturing plan is in time for the updating of the Philippine Development Plan (PDP) and the Philippine Exports Development Plan (PEDP) next year. It will be the basis in the formulation of the 2013 Investment Priorities Plan (IPP), an annual list of preferred economic activities that would be eligible to a package of government incentives.
the October edition of Manila FAME (Furnishings and Apparel Merchandise Exchange) 2012 recently.
“We are not competing anymore with the Chinese and Vietnamese, we are competing with the Italians,” Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said.
Manila FAME has raised its product standards to ensure that only quality products are showcased at the fair. The exhibit size has remained the same, but the quality of the products was topnotch and the show staging was given a more world-class appeal than the previous events.
Competing in the high-end category is more profitable than in the low-end category because producers can price their products at a higher level, said Domingo during the staging of
“The high-end products have higher margin unlike the mass-produced handicrafts or for any other mass-based consumer goods, which margin is very small,” he said.
hilippine handicrafts are no longer competing against the mass-based products but are already catering to the upscale market competing in terms of quality, innovation, and craftsmanship.
Consumer News 1. Get organized, DTI urges consumer groups
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he Department of Trade and Industry (DTI) is still urging the public to form more consumer groups that will actively help the agency in its campaign to resolve consumer complaints even if the department by far, resolves nine of ten consumer complaints. From 2009 to 2011, 90% of the more than 60,000 reports and concerns regarding products and services purchases were resolved by the Department in favor of the consumers, DTI Undersecretary for Consumer Welfare and Business Regulation Group (CWBRG) Zenaida C. Maglaya said. The big number of complaints and high resolution rate showed the government’s resolve to protect the consumers welfare and make them
2. DTI enforcement team seized uncertified helmets in Sta. Rosa
he Department of Trade and Industry (DTI) Standards Enforcement team in Region -4A Calabarzon seized uncertified motorcycle protective helmets from vendors in Sta. Rosa, Laguna. Three stores were found violating DTI’s Department Administrative Order (DAO) No. 2, Series of 2007 among 12 firms selling motorcycle protective helmets in the cities of Sta. Rosa, Biñan, and Calamba in Laguna. A notice of violation was served on these stores. DTI's DAO 02:2007 requires importers and sellers of helmets to secure an import commodity clearance (ICC) and ICC stickers prior to selling to the
aware of their rights, Maglaya said. The DTI has been, for many years, focusing on consumer awareness on programs and activities designed and implemented for them. “The DTI has been aggressive in promoting the government’s stance that the Filipino consumers are in the forefront of its priorities,” she said. Maglaya challenges the Filipino consumers to get organized and act as one and help the Department and other government offices to increase the relevance of consumerism in the country. The DTI used the theme “Get Organized. Be Heard. Be Empowered” in this year’s celebration of Consumer Welfare Month (CWM). public. Since August, DTI-Calabarzon conducted enforcement activities on products under mandatory certification with priority on motorcycle protective helmets. DTI-4A Regional Director MarilouQuinco-Toledo warned that any seller and/or dealer found selling motorcycle helmets without the ICC mark shall be penalized with a fine ranging from P17,500 to P300,000 and the destruction of the seized products in accordance to DAO 02:2007. The DTI appeals to motorcycle riders and concerned citizens to report those who are selling the ICC stickers to the nearest DTI office, or to DTI Direct 751.3330.
2. DTI warns freight forwarders over undelivered cargoes
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he Department of Trade and Industry (DTI) included several freight forwarders and consolidators in a warning list over complaints of undelivered parcels. “With low rates, these firms do not have enough funds to bear the cost of transporting cargoes, and they fail to remit delivery funds to their
Philippine freight forwarders, causing the shipments to be abandoned at the ports and not being delivered to consignees,” said DTI-Philippine Shippers Bureau (PSB) Director-In-Charge Victorio Mario A. Dimagiba. The DTI-PSB accredits freight forwarders.
DTI-unaccredited freight forwarders issued formal charges by PSB 1. ABS-CBN Global Cargo Corporation JJM Building 2, Ninoy Aquino Avenue, Brgy. Sto. Niño, Parañaque City 2. Aerosend Blk. 2 Unit 7, 584 Tenorio Lopez St. Tondo, Manila 3. Associated Consolidation Express (ACE) 505 Quirino Avenue Tambo, Parañaque City 4. Dausan International Forwarder 1933 A. Francisco Street Sta. Ana, Manila 5. FACF Parcel Delivery 8410 Gomburza Street Brgy. Sto Niño, Parañaque City 6. FRS Philippine Freight Services, Inc. Unit 104 Cecile Ville Bldg. 1211 Quezon Avenue, Quezon City 7. Gen Ex Cargo No. 11 J.G. San Victores St. SEACOM Compound San Antonio, Parañaque City 8. International Cargo Forwarder 503 Quirino Avenue Tambo, Parañaque City 9. J.J. Transglobal Brokerage 3909/3911 Dahlia Street Sto Niño, Parañaque City 10. JAR Cargo Forwarders 503 Quirino Avenue Tambo, Parañaque City 11. Jonar Cargo Stall 213 Building 2, FTI Complex Western Bicutan, Taguig City 12. Joseph Glenn L Galo Unit 12 Residences North Road Poblacion, Liloan, Cebu City 13. Mail Plus Cargo Carriers Golden Homes Subdivision SA #3 Sandoval Avenue Pinagbuhatan, Pasig City 14. Manila Broker 503 Quirino Avenue Tambo, Parañaque City
15. MARU Cargo Logistics Philippines 15016-A Fast Track Avenue San Agustin Village, Paranaque City 16. Nets & Knicks Logistics Corp. Blk. 17 Lot 4 Jerusalem St. BF Martinville Subdivision Las Pinas City 17. Pacific Logistics International Cargo 567 Gen. Luna St., Dinayang San Mateo, Rizal 18. Pentfast Km. 17 Cervantes St. West Service Rd., Parañaque City 19. R&M Cargo Services STIL Building Sta. Agueda cor. Delbros Ave., Pascor Drive Sto. Nino, Parañaque City 20. REN International Services 36 Laura Drive, Brgy. Bagumbayan, Taguig City 21. RDN Marketing & Cargo Forwarder Pension House, Zamora St. Ozamis City 22. Rodah Cargo Manila Block 9, Lot 16, Road 6-A St., United Parañaque Subdivision 5 (UPS-5) Sucat, Parañaque City 23. South Atlantic Cargo, Inc. 4 Elm St., West Fairview, Quezon City 24. Trico International Forwarding (Phils) Inc. L62D Building 2, Mangosteen Road FTI Complex, Taguig City 25. Vanwil Cargo Forwarder Inc. B17 L2, Martinville, Canaynay Ave. Manuyo Dos Malaya St. Evacom, Las Piñas City 26. VCG Customs Brokerage Guzmar Compound 8178 Dr. A. Santos Avenue Sucat, Parañaque City 27. Yasasa International Cargo Services Philippines Lot 10 Blk 12, BF Martinville Subd. Manuyo Dos, Las Piñas City
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Foreign principals and consolidators in other countries blacklisted by the DTI Australia 1. Dausan International Forwarder Bahrain 1. Dreamsworld Travel Tourism & Cargo Co. W.L.L. Cyprus 1. Trico International Hong Kong 1. Ford Cargo International (FCI) Ireland 1. Maharlika Enterprise Cargo Services 2. SCRL Cargo Kingdom of Saudi Arabia (KSA) 1. Cargo Net Worldwide Services formerly FAL-World Express Cargo 2. Fil Asia Cargo Forwarders Philippines 3. Global Cargo 4. RJM Freight Cargo Forwarders 5. WRJ Freight Forwarders (A Division of AI-Zagel Cargo) 6. North and South Express Cargo 7. Jasim Yaseen AI-Delam Air Cargo Services Kuwait 1. Pacific Logistics International Cargo
Malaysia 1. Bayanihan Express Singapore 1. Hagibis Express Pte. Ltd. 2. Maru Cargo Logistics (s) LLP United Arab Emirates (UAE) 1. AI Rodah Marine Cargo 2. Cityline Cargo 3. Dagupan Cargo Packaging Services 4. Express Link Cargo Services 5. Smooth Express United Kingdom 1. Philand Ynterlink Ltd. United States of America (USA) 1. AAA Cargo Express Inc. 2. Aerosend 3. Associated Consolidations Express (ACE Cargo) 4. FRS Philippine Freight Services, Inc. 5. Shipping Express 6. South Atlantic Cargo 7. Pentagon Cargo, Inc. 8. REN International 9. Star Xpress Forwarders
Warned accredited freight forwarders that are subject to complaints 1. D' Winner logistics Philippines, Inc. 2. RRG Freight Services Room 516 FEMII Building Block 213 Lot 41 Yuan Street, Phase 8 A. Soriano Jr. Avenue North Fairview, Quezon City Intramuros, Manila
3. Auto LPG may trigger illnesses
xposure to vehicles that have faults in their conversion to Auto-Liquefied Petroleum Gas (ALPG) may cause illnesses and even lead to death, the Department of Health (DOH) warned. DOH was seeking help from the Department of Trade and Industry (DTI) as well as from operators and drivers of taxis/cabs converted to LPG to make sure that the conversion is precise. Based on their studies, DOH confirmed that a very minimal exposure to an insignificant amount
of gas from an ALPG tank may already severely damage health. Some of the complaints received by DOH-National Capital Region (NCR) included dizziness, throat dryness, and sudden light-headedness of passengers and drivers exposed to faultily converted LPG. Also, in their findings, it is said that exposure may result in pains in the head, back, nape, and chest; cough; fatigue; muscle pains; vomiting; difficulty of breath; and even death due to the decreased oxygen delivery in the vital body parts. (Abante 8/12)
Investments seen to pour into Mindanao
November 05, 2012 9
illion-dollar investments are expected to pour into Mindanao following the signing of a framework for a peace agreement between the Moro Islamic Liberation Front (MILF) and the Philippine government. “There is a significant improvement in the peace and order situation, and investments will start coming in,” Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said. Domingo said Davao, Cagayan de Oro City, General Santos City, Bukidnon, and some parts of Autonomous Region of Muslim Mindanao (ARMM) are expected to have investments in power, mining, manufacturing, and agriculture. He added that investors from Japan, France, India, and Malaysia had expressed interests for new investments while some are for expansions. President Benigno S. Aquino III said a Philippine Development Forum is scheduled in Davao City in January to discuss the assistance needed by the Bangsamoro that will replace the ARMM. Aquino said preliminary agreement precedes the final peace pact, stressing that the government will be funding development projects in Bangsamoro. (BWD 10/17)
STATWATCH USD 14.7B Revenues to be generated by the country’s voice contact center services by 2016 vs. USD 9B in 2011 USD 11.8M Exports value of PHL’s coconut water exports in H1 2012 vs. USD 5.57M in H1 2011 10.25M Volume in liters of PHL’s coconut water exports in H1 2012 vs. 5.66M in H1 2011 800,000 Jobs to be generated by the country’s voice contact center services by 2016
493,000 Direct employment in the country’s voice contact center services as of 2011 146 Business Confidence Index (BCI) points of Philippine business in the October 2012 report of the global services firm Regus 90% Resolution rate out of the 60,000 consumer plaints filed with the Department of Trade and Industry (DTI) from 2009 to 2011 75% Filipino respondents satisfied with their government’s support strategies for business based on the October 2012 BCI of Regus
67% Proportion of Filipino companies reporting revenue increases based on the October 2012 BCI of Regus
ASEAN Watch APEC economies improve ease of doing business
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conomies of the 21 memberstates of the Asia Pacific Economic Cooperation (APEC) have improved the ease of doing business by 8.2% between 2009 and 2011, exceeding their 5-% target for the period and paving the way for greater economic activity in the region. The findings were revealed in the new 2012 APEC Economic Policy Report, which evaluated member economies’ progress in implementing the APEC Ease of Doing Business Initiative adopted in 2009.
trading across borders, and enforcing contracts. Between 2009 and 2011, the median time to start a business in the APEC region fell 56.5% from 23 to 10 days. By contrast, it fell only 12.5% for the rest of the world, from 20 to 18 days. Member economies have also made considerable inroads in making trading across borders more cost effective.
The Initiative’s goal is to foster a 25-% more favorable business environment in the Asia-Pacific region by 2015.
In 2011, the average cost to export a container in the APEC region was USD 835, 44% cheaper than the USD 1,486 amount for the rest of the world. Importing a container in the region was 49% cheaper at USD 896 compared to USD 1,768 elsewhere.
The ease of doing business initiative’s five priority areas include starting a business, dealing with construction permits, getting credit,
APEC’s ease of doing business performance was evaluated based on the World Bank’s Doing Business data set. (MAB 10/16)
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DTI Direct* Call Center Report SUMMARY OF CALLS Month-on-month CALL TYPE Business Name
Jan’12 Feb’12 Mar’12 April’12 May’12 June’12 July’12 Aug’12 Sept’12 Oct’12 3,665
CUMULATIVE CALL TYPE
% vs. Total
September 2012 % Increase/ Decrease
CALL RESOLUTION STATUS Jan-October 2012
Resolved 46,545 (100%)
Referred - 227, 0%
*The DTI Direct Call Center was established in November 2006 as part of the Department’s thrust to improve and simplify the delivery of its frontline services.
October 2012 Referred - 3, 0%
Resolved 4,491 (100%)
(A synopsis of selected book acquisitions at the DTI-TIIC library)
Title: Operating & Managing A Hotel & Restaurant Business Authors : SamsonRoldan, Amelia Call Number : 03.08/SAM/2007 This book provides practical principles and techniques for rational, cost-efficient management applied to the hospitality industry, with detailed texts, illustrative examples, tools and forms for sales forecasting, budgeting, sales analysis, marketing, menu planning, costing and pricing, cash and cost control, monitoring and inspection, performance management, and leadership and motivation. The given examples and illustrations are based on existing practices of some successful hospitality establishments. The author provided some diagnostic exercises for industry practitioners to objectively assess their own practices against the management model. The book also includes case studies and work sheets for skills practice.
Legend: BWD MAB MAT PDI Abante
Business World Manila Bulletin Manila Times Philippine Daily Inquirer
Title: How to Say It: Business to Business Selling Power Words and Strategies From the World’s Top Sales Experts Authors : James, Geoffrey Call Number : 06.01/JAM/2011 This book caters exclusively to B2B sales professionals, with short chapters providing tips and strategies tailored especially for the unique business to business selling process. It teaches how to motivate ones’ self to sell, craft an elevator pitch, find hot sales leads, make a cold call, use voicemail to sell, give a sales presentation, write a sales proposal, give a product demo, negotiate the best deal, close a sale, create a powerful sales process, sell to top executives, build sales partnerships, get a customer referral, and accelerate sales cycle.
Philippine Postal Permit No. PM-04-08
Vol. 16, No. 2312
Editor-in-Chief: Anne L. Sevilla Managing Editor: Vic S. Soriano Associate Editor: Resty P. Par Writers: Jam A. Hourani, Elaine M. Lazaro, Emman R. Caleon Design/Layout: Ren C. NeneriaCirculation: Myrna V. delos Reyes To subscribe, email: email@example.com