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December 31, 2012 Vol. 16, No. 27

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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 BOI to surpass 2011 investments Inside DTI IPOPHL launches fully automated system Good News, Philippines! 1. DTI sees exports hitting record USD 53B this year 2. Exports up 7.1% in first 10 months 3. Net FDI jumps 40% to USD 1.1B in 9 months 4. PHL to earn spot on investors’ map MSME/OTOP News Portal for MSMEs launched

Consumer News 1. DTI-PSB revokes accreditation 2. DTI, DOTC sign JAO No. 1 of 2012 3. Toxic chemical found on skin whitening products Features DTI supports launch of cheaper flour ASEAN Watch 1. PHL, Malaysia growths pull up Asian prospects 2. Preparations underway for Manila’s hosting of APEC 2015 Statwatch What’s New?

Business Alert 1. PEZA okays 3 industrial estates 2. ARMM offers land for rubber plant 3. DOST, BPA/P cite New Wave Cities 4. DTI urges exporters on designs, quality


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Focus BOI to surpass 2011 investments

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he Board of Investments (BOI) is targeting to exceed this year the P369-B investments it approved last year.

Department of Trade and Industry (DTI) Undersecretary for Trade and Investment Promotions Group (TIPG) Cristino L. Panlilio said, however, the BOI may not meet this year’s P400-B target coming from a high base in 2011. Panlilio also said it is hard to achieve this year’s target given the slowdown in registration of mining and energy projects. “These mining and energy projects are the big-ticket boys. With that slowdown, we have to temper our expectation for registration,” he said. A moratorium on approval of mining permits under the government’s new mining policy has stalled investments in the sector. Under Executive Order 79 Series 2012 released in July, the government

Inside DTI IPOPHL launches fully automated system

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he Intellectual Property of the Philippines (IPOPHL) has recently launched its Industrial Property Automation System (IPAS), an IP management system developed by the World Intellectual Property Organization (WIPO). For the first time in the IPOPHL history, a fully automated system will now be used to process utility model, industrial design, patent, and trademark applications from end-to-end.

will not grant mining permits until a law rationalizing the revenue-sharing scheme is put in place. Meanwhile, the approval of registration of energy projects has also been difficult amid opposition from environmentalists. But while the approved BOI investments this year may be lower than the target, Panlilio said the government is still optimistic the result would be higher than last year’s. He said approved investments by the BOI may reach P370B to P380B this year. “Hitting P370B is very doable because we have in the pipeline for registration a good number of big ticket projects,” he said. Panlilio noted that among the projects with pending applications for registration with the BOI are the Shell group’s modernization of its refinery in Batangas, a natural gas pipeline project, and a new depot in Mindanao.

IPOPHL patent and trademark examiners will use an advanced IT system that ensures the integrity, transparency, and accuracy of their work. IPAS is expected to result in a more efficient IPOPHL that will be able to better deliver timely and quality IP registration services. IPOPHL Director General Ricardo R. Blancaflor said the IPOPHL is the first IP Office in Asia to use the latest IPAS version for utility models and industrial designs, patents, and trademarks.


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Good News, Philippines! 1. DTI sees exports hitting record USD 53B this year

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epartment of Trade and Industry (DTI) Undersecretary for Trade and Investment Promotions Group (TIPG) Cristino L. Panlilio said the DTI expects merchandise exports to hit an all-time high USD 53B this year. Panlilio said December is the time of the year when a surge in exports of housewares, furniture, giftwares, and food is seen, with the continued growth in shipments of electronic products to help merchandise exports hit a record-high.

2. Exports up 7.1% in first 10 months

7.1% higher than last year’s (see related story). Panlilio said the country’s services exports, which include business process outsourcing (BPO), are also growing by around 20%. He said that if the growth in service exports is sustained, the country could end the year with USD 13B to USD 14B worth of services exports. Combined with merchandise exports, he said, total exports could reach USD 66B this year.

As of end-October, merchandise exports were valued at USD 44.5B,

As of the first half, services exports reached USD 8.1B.

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eight of the country’s top 10 export commodities recorded increments.

ith another respectable showing in October, the country’s export sector has now raked in USD 44.5B in revenues for a 7.1-% growth in the first 10 months of the year. For October alone, export receipts increased by 6.1% to USD 4.4B as

The National Economic and Development Authority (NEDA) said the Philippines was among the best performers in the region in the first 10 months of the year in terms of exports. (BMI 12/10)

Top 8 export commodities in October 2012 Industry Electronic Woodcrafts and furniture Cathodes and sections of cathodes of refined copper Metal components (excluding brakes and servo-brakes) Coconut oil including crude and refined Bananas (fresh) Petroleum products (include refined petroleum products and manufactures from crude petroleum oil imported on consignment basis) Tuna (includes fresh, frozen, prepared, or preserved in airtight containers)

Total value in USD

% change from previous month

1.9B 207.64M 149.63M

0.3 4.3 44.8

117.59M

40.7

102.02M

5.6

96.34M

101.9

82.43M

43.5

63.91M

294.4


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3. Net FDI jumps 40% to USD 1.1B in 9 months

4. PHL to earn spot on investors’ map

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et foreign direct investments (FDIs) went up by nearly 40% to USD 1.1B in the first nine months of the year from USD 782M a year ago, the Bangko Sentral ng Pilipinas (BSP) reported.

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he country may have already earned for itself a unique spot in investors’ map as President Benigno S. Aquino III’s administration highlights claims that the Philippines is much less vulnerable than other emerging economies to external shocks, the Investor Relations Office (IRO) reported. The Philippines’ minimal exposure to external economic threats, the government said, is one of the factors that allow it to have an edge over its counterparts. In its report, the IRO said the Philippines fared better than many of its competitor countries in terms of ability to withstand shocks. Citing data from the International Monetary Fund (IMF), the IRO reported that the Philippines’ trade openness level stands at about 38%, much less than that of many other developing and emerging economies.

MSME/OTOP News Portal for MSMEs launched

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A net inflow indicates more investments that entered the country than left. The year-to-date tally was almost 73% of this year’s revised forecast of USD 1.5B. (TPS 12/11) Trade openness is the value of a country’s current account transactions, composed mostly of imports and exports, with the rest of the world as a percentage of its gross domestic product (GDP). Trade openness levels of Taiwan, Thailand, and Malaysia, for instance, stand at much higher levels of 78%, 81%, and 92%, respectively, the IRO said. Economists said a high trade openness level could be good when the global economy appeared healthy, since it could help generate more export revenue for a country. But in tough times, or when the global economy is slowing down, a high trade openness level could significantly dampen a country’s growth potential. The Philippines has a much smaller trade openness level than its counterparts because its economy is being driven largely by domestic demand, led by household spending rather than exports. (PDI 12/10)

icro, small, and medium enterprises (MSMEs) that are in need of loans can now start utilizing the newly activated Finex SMEplus Loan Portal where they can immediately get in touch with possible banks and financing institutions and also get advice from financial experts.

put www.finex-sme.org.ph into operation on December 10, 2012.

The Financial Executives Institute of the Philippines (Finex), Finex Foundation for Entrepreneurship Inc. (FFEI), Department of Trade and Industry (DTI), and Eastern Communications officially

The DTI’s Bureau of Micro, Small, and Medium Enterprise Development (BMSMED) and FFEI conceptualized and worked closely to develop the portal.

SMEplus was conceptualized to address the needs of MSMEs for easier access to financing. It bridges the entrepreneurs who are in need of securing loans to lending institutions.


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Through this Internet-based portal, MSMEs can easily post their loan requests while lenders may view and directly communicate with borrowers regarding loan provision. They can also conduct a search for fellow entrepreneurs, service providers, lenders, consultants, and other capacity-building programs for MSMEs, the FFEI said. Eastern Communications is hosting the SMEplus website as part of its advocacy to help in the MSMEs’ growth. FFEI, which will manage and operate the web portal, will provide the financial consultants who will assist and mentor MSME owners in loan application, documentary

Business Alert 1. PEZA okays 3 industrial estates

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he Philippine Economic Zone Authority (PEZA) has approved three industrial estates worth P3.68B to beef up inventory properties that could accommodate the influx of manufacturing firms relocating in the country. PEZA Director-General Lilia B. De Lima said they have approved various economic zone projects nationwide of which some are still trying to comply with the requirements. 3 New Ecozones Firm

Amount Area/Location

AG&P

P1.78B 46-hectare (ha)/Batangas Suntrust P1.1B 250-ha/Cavite Manila Newtown P800M 30-ha/Bulacan Development Corp.

2. ARMM offers land for rubber plant

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he Autonomous Region in Muslim Mindanao (ARMM) has offered thousands of hectares of vast fertile lands for rubber plantation.

preparation, financial advisory, and other business services. (BMI 12/11, MAB 12/10)

Financial institutions supporting the program            

BPI Family Bank Citibank EastWest Bank GM Bank Land Bank of the Philippines Orix Metro Leasing Philippine Business Bank Philippine National Bank Philippine Savings Bank Plantersbank Security Bank Small Business Corp.

Meanwhile, in the recent Economic Cabinet Cluster report, the Department of Trade and Industry (DTI) said various manufacturing firms have migrated into the country with an estimated P16.7B combined investments. 10 foreign firms that migrated to PHL Firm Murata Manufacturing Co. Ltd. Luen Thai Canon Business Machine (Phils.) Inc. Charoen Pokphand Foods Philippines Molex Integrated Products Philippines New Kinpo/Cal-Comp Electronics Superi Fashion Focus Leader Electronics Shang-hai Zephyr International

Investment P7.15B P2.64B P2.50B P2.26B P1.15B P348.30M P139.90M P139.90M P88.80M P12M

The Department of Trade and Industry (DTI), in partnership with Japan International Cooperation Agency (JICA), in the recent workshop of National Industry Cluster


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Capacity Enhancement Project (NICCEP), is looking forward to ARMM’s potential in growing rubber plantations. The rubber industry cluster listed huge land areas for rubber as one

3. DOST, BPA/P cite New Wave Cities

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he Department of Science and Technology-Information and Communications Technology Office (DOST-ICTO) and the Business Processing Association of the Philippines (BPA/P) have identified some 40 New Wave Cities (NWC) to support the momentum of the country’s information technologybusiness process outsourcing (IT-BPO) sector. BPA/P Senior Executive Director Gillian Virata said NWCs are assessed based on the NWC Scorecard indicators selected by BPA/P and DOST-ICTO.

4. DTI urges exporters on designs, quality

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of the region’s strengths to increase rubber production given its fertile soil, typhoon-free location, existing nursery operators supplying rubber tree seedlings, skilled workers, and a stable rubber production system. “There is so much more untapped potential in areas outside Metro Manila. The NWCs are part of the solution in terms of providing talent,” Virata said. (MAL 12/10) Top 10 New Wave Cities • • • • • • • • • •

Bacolod Baguio City Cagayan de Oro Davao Dumaguete Iloilo Lipa, Batangas Malolos, Bulacan Metro Cavite Sta. Rosa, Laguna

he Department of Trade and Industry (DTI) has urged the country’s exporters to focus on product design and quality to strengthen their competitiveness in the global market.

also among our neighbors, and to a certain extent beyond our neighbors, that the Filipinos are creative. We are very good designers. We like to innovate,” Domingo said.

DTI Secretary Gregory L. Domingo said exporters should have to regularly come up with “products that excite.”

Philippine exports of non-electronic merchandise are achieving significant figures that help the country’s export increase by 7.1% in January-October 2012.

“Our biggest asset is the people. It is known not only in the Philippines but

Consumer News 1. DTI-PSB revokes accreditation

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he Department of Trade and Industry-Philippine Shippers Bureau (DTI-PSB) has revoked the accreditation of D’Winner Logistics Philippines Inc. and updated the list of PSB-unaccredited freight forwarding companies with consumer complaints as of December 21, 2012.

certain provisions of the Rules on Freight Forwarding under the PSB Administrative Order No. 6, series of 2005.

The agency advised Filipinos abroad as well as consignees in the country to refrain from doing business with the companies which have violated

For a complete list, please visit http:// dti.gov.ph/dti index.php?p=779 or call DTI Direct 751.3330 or 0917.8343330.

The agency has also warned the public to avoid dealing with unaccredited freight forwarders that have been issued formal charges.


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2. DTI, DOTC sign JAO No. 1 of 2012

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he Department of Trade and Industry (DTI) and the Department of Transportation and Communications (DOTC) have signed Joint Administrative Order No. 1 series 2012 that enforces Air Passenger Bill of Rights to protect all passengers of domestic and foreign airlines. The JAO has been approved after three public hearings attended by representatives of the various local and foreign airlines, consumer groups, and aviation regulatory agencies such as Civil Aeronautics Board (CAB), Civil Aviation Authority of the Philippines (CAAP), and Manila International Airport Authority (MIAA). The JAO obliges airline companies to provide passengers with compensation and amenities,

3. Toxic chemical found on skin whitening products

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he Food and Drug Administration (FDA), together with the EcoWaste Coalition’s AlerToxic Patrol, recently inspected several Chinese drugstores and beauty product stores in the cities of Parañaque and Pasay and found them selling skin whitening products laden with highly toxic chemical mercury. Both teams aimed to renew the drive to stop the illegal trade of mercurycontaining cosmetics, an explicit breach of Republic Act (RA) 9711 or the FDA Act of 2009, and RA 7394 or the Consumer Act of the Philippines.

Features DTI supports launch of cheaper flour

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onsumers can expect lower prices of the Pinoy tasty and Pinoy pan de sal this month as flour millers and the Department of Trade and Industry (DTI) have launched the cheaper Harinang Pinoy. Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said that the cheaper flour, to be used specifically for the

Major rights of an air passenger • Right to be provided with accurate information before purchase • Right to receive the full value of the service purchased • Right to compensation

hotel and accommodations, transportation to and from the airport, and communication in case of flight cancellation or delays. With the implementation of Air Passenger Bill of Rights, the airline passengers would be protected from unfair policies and practices of airline companies. For more details on the major rights of an air passenger, please visit http:// dti.gov.ph/dti/index.php?p=829. (TPS 12/12)

“Chronic use of these products reduces the skin’s normal resistance against bacterial and fungal infections,” said FDA Director Kenneth Hartigan-Go, adding that transfer of mercury to fetuses of pregnant women may manifest as neurodevelopment deficits later in life. “We appeal to all traders to abide by the FDA’s directive to prevent exposure and disease from mercury-containing cosmetics,” EcoWaste Coalition Project Protect Member Aileen Lucero said. (PDI 11/28) production of Pinoy tasty and Pinoy pan de sal, would be available for bakers at P750 per 25 kilogram (kg) bag, lower than other brands which are priced between P800 to P900. With Harinang Pinoy to be made available for bakers at a more affordable price, Domingo said the price of the 450-gram Pinoy tasty would also go down to P37.50 from P38.50. The 250-gram Pinoy


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pan de sal would likewise be sold at a lower P22.50 from its current price of P23. Domingo said the move to launch the more affordable flour is intended to help consumers. “We always want to help consumers as long as it can be sustained,” he said.

ASEAN Watch 1. PHL, Malaysia growths pull up Asian prospects

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he Asian Development Bank (ADB) is revising up growth outlook for Southeast Asian countries from 5.2% to 5.3% this year following the better-than-expected growths in the Philippines and Malaysia. Philippine economy grew 7.1% in the third quarter of the year, the highest growth in the Association of Southeast Asian Nations (ASEAN) region, while Malaysia’s economy expanded by 5.2%.

STATWATCH P370B-P380B Revised investments target set by the Board of Investments (BOI) for 2012 P369B BOI-registered investments in 2011

USD 53B Target merchandise exports for 2012

USD 44.5B Merchandise exports in January to October 2012

USD 4.78B Merchandise exports in September 2012

USD 4.4B Merchandise exports in October 2012

USD 1.1B Net foreign direct investments (FDIs) in January to September 2012

Both growths allowed the ADB to revise its growth outlook for the ASEAN 5 to 5.9% this year, from its previous outlook of 5.6%. The ASEAN 5 comprises Indonesia, Malaysia, the Philippines, Thailand, and Viet Nam.

2. Preparations underway for Manila’s hosting of APEC 2015

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resident Benigno S. Aquino III has created the National Organizing Council for the Philippines’ hosting of the AsiaPacific Economic Cooperation (APEC) meetings in 2015. Aquino said the Philippines remains committed to the continued growth and development of the Asia-Pacific region through close and meaningful cooperation with countries in the region and continues to be an active APEC member-economy. The Philippine Council for Regional Cooperation (PCRC) was created by

USD 782M FDIs in January to September 2011 The ASEAN 5’s economic growth forecast for 2013 was also revised to 5.8% from the ADB’s previous forecast of 5.7%. (MAL 12/9) Aquino under Administrative Order (AO) No. 20 to upgrade and reinforce inter-agency coordination in the formulation and consolidation of all positions and strategies of the Philippines as it participates in APEC and all other regional and interregional organizations and fora. The Philippines has agreed to host the 2015 APEC annual meetings, which include the APEC Senior Officials Meeting and related meetings, the APEC Ministerial and Sectoral Ministerial Meetings, and the APEC Economic Leaders Meeting. (TPS 12/9)


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(A synopsis of selected book acquisitions at the DTI-TIIC library)

Title : Regulations, Norms and Private Standards

Publisher : COLE-ACP Call Number : SITC 0A/09.01.01/ COLEACP/2011 This manual focuses on regulations and standards governing food safety with particular reference to horticultural products. It contains information on animal and plant health, commercial quality and labeling of fruits and vegetables, private standards, origin and categories of private voluntary standards, identification of the main private voluntary standards, implications of private voluntary standards for the African, Caribbean, and Pacific (ACP) fruit and vegetable sector, and pesticides and biocide regulations. It also includes bibliographic references and a list of useful websites.

Legend:

BMI MAB MAL PDI TPS

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Business Mirror Manila Bulletin Malaya Philippine Daily Inquirer The Philippine Star

Title : Connecting to Compete: Trade Logistics in the Global Economy 2010 Publisher : World Bank (WB) Call Number : 00 000/08.06/WB/2010 This book presents the 2010 logistics performance index (LPI) and a snapshot of selected performance indicators in 130 countries. The LPI is a comprehensive index created to help countries identify the challenges and opportunities they face in trade logistics performance. The publication provides expanding information on the time, cost, and reliability of import and export supply chains, infrastructure quality, performance of core services, and the friendliness of trade clearance procedures.

Philippine Postal Permit No. PM-04-08

What’s New?

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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. NeneriaCirculation: Myrna V. delos Reyes To subscribe, email: publications@dti.gov.ph

Dataline 27 (2012)  

A bi-monthly digest of global and domestic industry trends and developments