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2 June 2014 1


02 June 2014 Vol. 19, No. 11

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: Online:

In this issue Focus PEZA-approved investments hit P2.63T Inside DTI PTTC attains Accreditation Level II status from CSC-NCR

Business Update 1. PEZA cautions firms vs trafficking 2. Go for exports, Dagupan milkfish growers urged 3. PHL to export more mango varieties to U.S.

Good News, Philippines! 1. Moody’s eyes 6.4-% growth for PHL next year 2. PHL moves up in social progress index 3. More Japanese auto parts makers coming here 4. Manila offers cheapest office sites in Asia Pacific

Consumers News 1. PHL out of USTR watch list, seizes P6B fake products in Q1 2. 9th ACCP pushes to improve consumer rights for AEC 2015

MSMEs 1. DTI releases loan in Leyte’s typhoon-hit areas 2. DTI trains Zambo SSF co-operators 3. DTI serves more than 30,000 clients through Diskwento Caravan 4. DTI-Negros Oriental embarks on discount caravans 5. Diskwento Caravan-Balik Eskwela Edition held in Region 9

Asian Watch 1. APEC 2015 Meeting to be held in PHL 2. IMF sees growth for Asian economies

Feature SM Malls now provide BN registration services

Statwatch What’s New?

NOTICE Effective this issue, we are no longer printing out hard copies for dissemination. However, we shall continue publishing the digital version via dti/index.php?p=144 and sending the electronic copies via email.


Focus PEZA-approved investments hit P2.63T

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nvestments approved by the Philippine Economic Zone Authority (PEZA) from 1995 to March 2014 have reached P2.63T as the agency vowed to work harder to lure more investors to put up and expand business ventures in the country. PEZA Director General Lilia B. de Lima said 40.5% of these investments, or over P1T, came in during the term of President Benigno S. Aquino III. De Lima said exports in 19 years of PEZA contributed USD 525.72B to the country’s total exports value. “Kindly note that 65% of total Philippine commodity exports come from PEZA economic zones,” she said. Direct employment in PEZA ecozones created 1,058,599 jobs while adding

Inside DTI PTTC attains Accreditation Level II status from CSC-NCR


he Philippine Trade Training Center (PTTC) has achieved another milestone with the conferment from the Civil Service Commission–National Capital Region (CSC-NCR) of Level II Certificate of Accreditation. Results of CSC-NCR’s Comprehensive Human Resource Management Assistance, Review and Monitoring (CHARM) showed that PTTC has complied with all the requirements for Level II-Accredited Status under Program to Institutionalize Meritocracy and Excellence in Human Resources Management (PRIME-HRM).

Good News, Philippines! 1. Moody’s eyes 6.4-% growth for PHL next year


oody’s Investors Service continues to see a robust 6.4-% growth for the Philippine economy for 2015. Last year, the domestic economy surpassed expectations after posting a growth of 7.2%, higher than the government’s 6.0%-7.0%.

indirect employment. PEZA ecozones have generated some 5.2M jobs. “We do not receive any budget from the national government. As a good corporate citizen, PEZA religiously pays taxes to the national government including the 30% regular corporate income tax. This means that while we can give tax incentives, PEZA itself gets no tax incentives at all,” De Lima said. In 19 years, PEZA remitted a total of P14.69M as taxes with 50% dividends to the national government and payments of previous loans incurred by predecessor agency of PEZA. To date, PEZA has 301 ecozones nationwide from 16 ecozones in 1995 which are composing of 3,240 locator companies from the original 331 locator companies in 1995.

As such, PTTC has been given the full autonomy to approve appointments of its personnel, thereby accelerating and operating a more effective and efficient hiring process. Level II-Accredited Status requirements

• • • •

Appointments and personnel actions in conformance with the Civil Service Law Rules and Regulations Fully operational HR Plan covering organizational profile, HR systems, and employee health and wellness Sound HR management records Human Resource Management Office/ Unit that meets the required competency level

Currently, the country holds an investment grade rating from the three major debt watchers, with a recent notch credit upgrade to BBB from Standard & Poor’s (S&P). Moody’s gave the Philippines an investment grade rating of Baa with positive outlook in October 2013,


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the third for the country last year after Fitch Ratings did the same in March and Standard & Poor’s (S&P) in May. The country achieved investment grade rating due to strong economic

2. PHL moves up in social progress index


he Philippines ranked 56th out of 132 countries in the Social Progress Index (SPI) 2014 released by the Social Progress Imperative. The country improved from an SPI score of 49.41 in 2013 to 65.86 in 2014. The SPI ranks countries by their social and environmental performance. Despite having a much smaller gross domestic product (GDP) per capita compared to its neighbor countries, the Philippines’ good performance placed it ahead of Thailand (59) and Indonesia (88) , the survey said. It is also ahead of economic powerhouses like Russia (80), China (90), and India (102) in the overall rankings.

performance, ongoing fiscal and debt consolidation, and political stability and improved governance. Notably, the Philippines is the sole country in Asia given a positive outlook by Moody's. to 15 other countries with a similar level of economic development (based on GDP per capita). The Philippines’ economic peers (similar GDP per capita) in the SPI are the Republic of Congo, Iraq, Honduras, Nicaragua, India, Indonesia, Guatemala, Uzbekistan, Swaziland, Bolivia, Morocco, Moldova, Guyana, Mongolia, and Laos. Remarkably, the Philippines managed to outperform all 15 of them to have the best SPI performance in this sub-group, the report said. Compared to this peer group of 15 countries, the Philippines has performed strongly on the underlying measures of opportunity, doing well in areas of access to advanced education, and personal freedom and choice. (TPS 04/29)

For the first time, each country’s performance was also compared

3. More Japanese auto parts makers coming here


apanese automotive parts manufacturers are aggressively expanding operations in the country to address huge demand globally, Philippine Economic Zone Authority (PEZA) Director-General Lilia B. De Lima said.

employ 800 people on top of the current 4,500 workers at its three factories.

The latest to expand operation is Japanese firm Mitsuba Corp., one of the pioneer auto parts manufacturers registered with PEZA.

De Lima also cited Mitsuba for bringing in its suppliers.

The company has recently inaugurated its 1.1-ha. gross floor area building in Lima Industrial Park in Batangas. This fourth building will

Mitsuba has an existing plant in Lima Industrial Estate and two other factories in the First Cavite Industrial Estate.

“Japanese auto parts manufacturer are rapidly expanding in the country,” she said. De Lima said auto parts suppliers of Toyota are also expanding


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capacities to meet strong demand for Toyota, United States (U.S.), Japan, and Southeast Asian

4. Manila offers cheapest office sites in Asia Pacific


anila is the “cheapest” place to set up an office in Asia Pacific or anywhere in the world, Jones Lang LaSalle Philippines Inc. (JLL) reported. “The Philippines is one of the cheapest markets in the region, maybe in the world, and that’s not because demand is slow. The demand is very high. It’s just that the supply is also meeting the demand so much,” JLL Country Head and International Director David Leechiu said.

countries, citing the expansion of Tokai Rika and Yamashita. (MAB 04/26)

wants to go there, but there is not enough supply,” he said. The company said total space committed as of end-2013 was 470,750 sqm. of which 185,520 sqm. was for lease. (TMT 29/04) Q1 2014 office rates in Asia (In USD per square floor per annum) City Manila New Delhi Sydney Seoul Tokyo Shanghai Singapore Hong Kong

“The reason why, for example, Hong Kong and Singapore are so expensive is because everyone

MSME News 1. DTI releases loan in Leyte’s typhoon-hit areas


he Department of Trade and Industry (DTI) released P204.31M in loan assistance to 98 micro, small, and medium enterprises (MSMEs) in Leyte province, following the typhoon Yolanda onslaught. The DTI has introduced credit brokering to assist affected MSMEs in finding access to finance with softer terms for them to be able to bounce back. The DTI had also conducted financing forum in partnership

2. DTI trains Zambo SSF co-operators


he Department of Trade and Industry (DTI) recently conducted a two-day project management training for its shared service facility (SSF) project co-operators in Zamboanga City. The training aimed to ensure that the SSF projects will be properly managed and also to assure the projects’ operation sustainability, DTI-9 Officer-in-Charge – Assistant Regional Director Sitti Amina M. Jain said.

Rate 20 35 35 50 70 75 85 135

with the Development Bank of the Philippines (DBP) and the Small Business Corporation (SB Corp.) benefiting 293 individuals. MSME loan beneficiaries (in million pesos) Expected Area Tacloban City Ormoc City Palo Tanauan Dulag Tolosa

No. of MSMES 67 15 10 4 1 1

Amount released 154.35 22.70 16.75 7.05 2.00 1.50

The qualified co-operators or project partners include small farmers associations, cooperatives, and foundations especially those belonging to the Region 9 priority industry clusters. Region 9 priority industry clusters

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Seaweeds Coconut Rubber Abaca Mango Fish and Fish products


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“We take it upon ourselves to ensure the project is managed and operated at the optimum. This is done through technical support, consultancy,

3. DTI serves more than 30,000 clients through Diskwento Caravan


ore than 30,000 consumers from Leyte availed themselves of the Diskwento Caravan organized by the Department of Trade and Industry (DTI) after typhoon Yolanda. “So many of outlet stores were damaged and closed even until now, especially the big ones,” DTI-Leyte Provincial Director Desiderio P. Belas Jr. said.

4. DTI-Negros Oriental embarks on discount caravans

5. Diskwento CaravanBalik Eskwela Edition held in Region 9


and capability building training such as this on project management,” Jain said.

Since Yolanda, DTI has organized 15 Diskwento Caravans with 26 distributors from outside the region joining the activity. The biggest sale was generated in January amounting to P3.82M. Sale in February and March amounted to P2.77M and P0.81M, respectively.

he Department of Trade and Industry (DTI)-Negros Oriental embarked on its yearly discount caravans to allow consumers to avail themselves of lower prices of basic commodities.

The DTI carried out a three-day “Bagsak Presyo” caravan in Sta. Catalina on 21-23 April 2014 and held its “Balik Eskwela” discount caravan in Bayawan City on 15-17 May.

For this year, there will be three runs of the discount caravans or “Bagsak Presyo” and “Balik Eskwela” in pre-selected areas in the province, DTI-Negros Oriental Consumer Welfare and Business Regulation Division Chief Angeline Gonzalez said.

Meanwhile, a “Fiesta Galore and Noche Buena” diskwento caravan is scheduled on 2-3 October in Manjuyod town as part of its fiesta celebration.


n preparation for the resumption of classes this school year, the Department of Trade and Industry (DTI) conducted a Balik-Eskwela Edition of its Diskwento Caravan program in Zamboanga Peninsula.

activity on 26 to 27 June for Ramadan to be dubbed Diskwento Ramadan.

It aims to provide products at lower prices, including school supplies, to residents of the area, particularly parents and students.

DTI’s Diskwento Caravan is conducted with participation from manufacturers, distributors, and wholesalers that sell their products at factory prices.

DTI-9 Regional Office is also planning to have a corresponding

The program would offer halal foodstuffs at a discount among products to be on sale.


Business Update 1. PEZA cautions firms vs trafficking

2.Go for exports, Dagupan milkfish growers urged

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he Philippine Economic Zone Authority (PEZA) warned that registered enterprises found engaging in human trafficking will lose their registration and face charges. “We hold them liable and if found guilty, we can strip them of their

Last April, a raid on an upscale entertainment club in Pasay City suspected of being a prostitution den led to the rescue of 19 women, which include 13 Filipinos and six others from Russia and Ukraine.(MAB 26/4)


Trade Agreements (FTAs), which provide opportunities to those who are ready while a threat to those who are not.

agupan milkfish growers must tap the export market as it is the only way to solve the pricing problem and the oversupply of milkfish in the province. Dagupan City Mayor Belen T. Fernandez urged her constituents during the Department of Trade and Industry’s (DTI) and the Bureau of Fisheries and Aquatic Resources’ (BFAR) jointly sponsored Regional Bangus Summit last 23 April. Belen said she is happy that the summit is geared towards Free

3. PHL to export more mango varieties to U.S.


he Department of Agriculture (DA) expects to seal a bilateral trade agreement with the United States (U.S.) that allows the entry of more Philippine mango varieties into the U.S. market. DA Secretary Proceso J. Alcala said the U.S. Department of Agriculture (USDA) currently allows only the exportation of mangoes from Guimaras, but with the new agreement, the country will likely be allowed to ship mango varieties from all over the Philippines except Palawan. Alcala noted the sanitary and phytosanitary (SPS)

Consumer News 1. PHL out of USTR watch list, seizes P6B fake products in Q1

registrations,” PEZA Director-General Lilia B. De Lima said.


he Philippines has been removed from the Watch List of the United States Trade Representative’s (USTR) latest Special 301 Report that assesses and classifies the United States of America’s (USA) trading partners

She also urged to maximize the full potential of the city’s own processing plant in Bonuan Binloc. “Right now, it is not yet operating 24/7, with only a hundred deboners working at the plant. If only we can make full use of it, we would be helping more people to work at the plant,” Fernandez said. (TPS 27/4)

requirements for Philippine mango exports have already been approved by the USDA. The Philippines, thus, is only waiting for the USDA to complete other regulatory requirements. (TPS 30/4) Major mango production areas in the Philippines

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Cebu Batangas Iloilo Ilocos Norte North Cotabato Pangasinan Zambales Zamboanga del Norte

which lack intellectual property rights (IPR) enforcement and protection. The country has been on the report for over two decades after first being included in the Watch List in 1989, then in the Priority Watch List in 1994.


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Efforts by the Philippine government to strengthen IPR enactment and safeguarding were recognized by the USTR, but also stressed the need to address problems faced by enterprises leaning on IPRs. Meanwhile, fake goods confiscated in the first quarter of the year were the highest in history, reaching a total worth of P6.24B, nearly exceeding 80% of the total worth of seized counterfeits for 2013 which was at P7.81B. The goods were snared by members of the interagency task force National

2. 9th ACCP pushes to improve consumer rights for AEC 2015


he 9th meeting of the Association of Southeast Asian Nations (ASEAN) Committee on Consumer Protection (ACCP), which aims to discuss ASEAN countries’ consumer protection laws in light of the ASEAN Economic Community (AEC) in 2015, was hosted for the first time by the Department of Trade and Industry-Consumer Protection Advocacy Bureau (DTI-CPAB). “The meeting will particularly confer on the current progress of the ASEAN member-states on their respective deliverables for the AEC in 2015, and the implementation of the AEC blueprint vis-à-vis their scorecard on consumer programs” DTI Consumer Protection Group (CPG) Undersecretary Victorio Mario A. Dimagiba said. Among the ACCP’s targets for AEC 2015 is to have consumer protection laws in all 10 ASEAN member states, eight of which already have existing consumer protection laws including the Philippines. For its part and to prepare for the AEC 2015, the DTI submitted amendments

Committee on Intellectual Property Rights (NCIPR) in individual and joint operations. Amount confiscated per NCIPR member/joint operation

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Bureau of Customs (BOC), IPOPHL, and National Bureau of Investigation (NBI) joint operation P1.6B BOC P9M Food and Drug Administration (FDA) P284M NBI P178.7M Optical Media Board (OMB) P23.2M Philippine National Police (PNP)

to Republic Act No 7394 or The Consumer Act of the Philippines, first enacted in 15 July 1992, to Senate Committee on Trade, Commerce, and Entrepreneurship Chairman Senator Paolo Benigno Aquino IV. The draft amendment hopes to increase the fines and imprisonment period of violators and better address consumer problems in e-commerce or online sales.

Consumer Act of the Philippines proposed amendments

• • •

Minimum fine-from P500 to P50,000 Maximum fine-from P300,000 to P1M Imprisonment period-from six months to two years

E-commerce issues to be addressed

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Deceptive sales Fraudulent websites Non-full disclosure on products Promotions without permit Unfair pricing


FEATURE SM Malls now provides BN registration services

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he Department of Trade and Industry (DTI) said 25 SM malls in Luzon have established Consumer Welfare Desks (CWDs) where entrepreneurs can register their businesses' names through SM’s Business Service Centers. “Partnering with SM makes it more accessible and convenient for applicants to register their business names,” the DTI said.

Last March, DTI Regional Operations Group (ROG) Undersecretary Zenaida Cuison-Maglaya and SM Mart Inc. Executive Vice-President for Controllership Ricky A. Lim signed a memorandum of agreement (MOA) between DTI and SM Group that established Business Service Centers in SM Malls to make it more accessible to applicants to register their business names. DTI- NCR Officer-in-Charge Regional Director Ferdinand

ASEAN Watch 1. APEC 2015 Meeting to be held in PHL


our economic areas were identified as priorities in the 2015 Asia-Pacific Economic Cooperation (APEC) Meeting in the Philippines.

L. Manfoste said the e-business name registration system is now enhanced and accepts online payment through G-Cash and Bancnet. SM malls with Business Name Registration Services

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SM Aura SM Bacoor SM BF Homes Parañaque SM Bicutan SM Calamba SM Cubao SM Dasmariñas SM Fairview SM Harrison SM Makati SM Mall of Asia SM Manila SM Marikina SM Megamall SM North EDSA SM Novaliches SM Quiapo SM Marilao SM Masinag SM San Lazaro SM Sta. rosa SM Sta. Mesa Southmall SM Sucat SM Taytay

In the APEC meeting, they aim to advance the Free Trade Area of the Asia-Pacific (FTAAP). They also want to tackle how to create an open and transparent business environment for small and medium enterprises (SMEs).

Top 4 agenda for APEC 2015 Meeting • Enhancing the regional economic agenda • Fostering small and medium enterprises’ (SMEs) participation in regional and global markets • Supporting and investing in human resources • Building sustainable and resilient communities

The APEC 2015 targets to promote inclusive growth through sustainable and resilient SMEs. The regional meeting also targets to promote knowledge-based economies through enhancing cross-border education, facilitating the movement of workers, and developing an APEC-wide qualification referencing framework.


2. IMF sees growth for Asian economies

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sia's economic recovery this year will deepen due to exports pick up and domestic demand, the International Monetary Fund (IMF) said. In IMF's Regional Economic Outlook report, weaker Asian currencies and stronger growth in advanced economies will likely help underpin expansion in Asia. The IMF foresees an average 6.8% in 2014 and 6.7% in 2015 for East Asian economies while Southeast Asian economies will have an average 5% growth this year.

STATWATCH P2.63T Investments approved by the Philippine Economic Zone Authority (PEZA) from 1995 to March 2014. Over P1T came in during the term of President Benigno S. Aquino III

USD 525.72B

Exports generated by PEZA since 1995

P6.24B Fake goods confiscated in 2014 Q1, nearly exceeding 80% of the total worth of seized counterfeits for 2013 which was at P7.81B

P14.69M PEZA’s tax remittance to the government, with 50% dividends to the national government and payments of previous loans incurred by predecessor agency of PEZA


Direct employment generated by PEZA ecozones. Together with indirect employment, PEZA ecozones have generated some 5.2M jobs

301 Ecozones in the country which are occupied by 3,240 companies from the original 331 companies in 1995

56th PHL’s ranking out of 132 countries in the Social Progress Index (SPI) 2014 released by the Social Progress Imperative


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

Vol. 19, No. 11 10

Title : ASEAN SME Policy Index 2014

Publisher : Economic Research Institute for ASEAN and East Asia (ERIA) Call Number : 45 000/03.08.05/ERIA/ 2014 This report presents the small and medium enterprise (SME) development policies and actions implemented by the Association of Southeast Asian Nations (ASEAN) countries and helps identify strengths and weaknesses in policy design and implementation. It compares the experience and performance of the ten ASEAN member countries, measures convergence towards the policy guidelines of their strategic plan for SME development (2010-15), and recommends priority reforms. It also provides methodology based on a tool developed by the Organization for Economic Cooperation and Development (OECD) to assess policy development across countries sharing a common SME policy platform. 272p.

Title : Connecting to Global Markets Challenges and Opportunities

Publisher : World Trade Organization Call Number : 02 000/08.09/WTO/ 2014 This book presents four sections: export-diversification, the role of nontariff measures, the role of law in connection to global markets, and the role of the aid for trade initiative in building trade capacity and overcoming supply side constraints. It focuses on major challenges developing countries face to achieve a sustainable growth path in the context of open markets, non-tariff measures for export performance and policy-making, and how international economic law may restrict developing countries’ ability to overcome the supply-side constraints they face when trying to address climate change. 236p.

Legend: MAB TPS

- Manila Bulletin - The Philippine Star

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/Ren C. Neñeria Circulation/Al AquinoTo subscribe, email:

Dataline 11 (2014)