dataline 11 (2014)

dataline 2 June 2014 1

datalineA bi-monthly digest of global and domestic industry trends and developments. Published bythe Trade and Industry Information Center, Department of Trade and Industry Manila, PhilippinesTel. (632) 895.3611 Fax (632) 895.6487 To subscribe, email: [email protected]: http://www.dti.gov.ph

02 June 2014Vol. 19, No. 11

In this issue

FocusPEZA-approved investments hit P2.63T

Inside DTI

PTTC attains Accreditation Level IIstatus from CSC-NCR

Good News, Philippines!1. Moody’s eyes 6.4-% growth

for PHL next year2. PHL moves up

in social progress index3. More Japanese auto parts makers

coming here4. Manila offers cheapest office sites

in Asia Pacific

MSMEs1. DTI releases loan

in Leyte’s typhoon-hit areas2. DTI trains Zambo SSF co-operators3. DTI serves more than 30,000 clients

through Diskwento Caravan4. DTI-Negros Oriental embarks

on discount caravans5. Diskwento Caravan-Balik Eskwela

Edition held in Region 9

Business Update1. PEZA cautions firms vs trafficking2. Go for exports, Dagupan milkfish

growers urged3. PHL to export more mango varieties

to U.S.

Consumers News1. PHL out of USTR watch list,

seizes P6B fake products in Q12. 9th ACCP pushes to improve consumer

rights for AEC 2015

FeatureSM Malls now provideBN registration services

Asian Watch1. APEC 2015 Meeting to be held in PHL2. IMF sees growth for Asian economies

Statwatch

What’s New?

NOTICE

Effective this issue, we are no longerprinting out hard copies for dissemination.However, we shall continue publishingthe digital version via www.dti.gov.ph/dti/index.php?p=144 and sending theelectronic copies via email.

Vol. 19, No. 11 2dataline

FocusPEZA-approvedinvestments hit P2.63T

Inside DTIPTTC attainsAccreditation Level IIstatus from CSC-NCR

Investments approvedby the Philippine Economic ZoneAuthority (PEZA) from 1995

to March 2014 have reachedP2.63T as the agency vowedto work harder to lure more investorsto put up and expand businessventures in the country.

PEZA Director General Lilia B.de Lima said 40.5% of theseinvestments, or over P1T,came in during the term of PresidentBenigno S. Aquino III.

De Lima said exports in 19 yearsof PEZA contributed USD 525.72Bto the country’s total exports value.

“Kindly note that 65% of totalPhilippine commodity exportscome from PEZA economic zones,”she said.

Direct employment in PEZA ecozonescreated 1,058,599 jobs while adding

indirect employment. PEZA ecozoneshave generated some 5.2M jobs.

“We do not receive any budget fromthe national government. As a goodcorporate citizen, PEZA religiouslypays taxes to the national governmentincluding the 30% regular corporateincome tax. This means that whilewe can give tax incentives,PEZA itself gets no tax incentivesat all,” De Lima said.

In 19 years, PEZA remitted a totalof P14.69M as taxes with 50%dividends to the national governmentand payments of previous loansincurred by predecessor agencyof PEZA.

To date, PEZA has 301 ecozonesnationwide from 16 ecozones in 1995which are composing of 3,240 locatorcompanies from the original331 locator companies in 1995.

The Philippine Trade TrainingCenter (PTTC) has achievedanother milestone with the

conferment from the Civil ServiceCommission–National CapitalRegion (CSC-NCR) of Level IICertificate of Accreditation.

Results of CSC-NCR’sComprehensive Human ResourceManagement Assistance, Reviewand Monitoring (CHARM) showedthat PTTC has compliedwith all the requirementsfor Level II-Accredited Statusunder Program to InstitutionalizeMeritocracy and Excellencein Human Resources Management(PRIME-HRM).

As such, PTTC has been giventhe full autonomy to approveappointments of its personnel,thereby accelerating and operatinga more effective and efficienthiring process.

Level II-Accredited Statusrequirements

• Appointments and personnel actionsin conformance with the Civil ServiceLaw Rules and Regulations

• Fully operational HR Plan coveringorganizational profile, HR systems,and employee health and wellness

• Sound HR management records• Human Resource Management Office/

Unit that meets the requiredcompetency level

Moody’s Investors Servicecontinues to see a robust6.4-% growth for

the Philippine economy for 2015.

Last year, the domestic economysurpassed expectations after postinga growth of 7.2%, higher thanthe government’s 6.0%-7.0%.

Good News,Philippines!1. Moody’s eyes 6.4-%

growth for PHLnext year

Currently, the country holdsan investment grade ratingfrom the three major debt watchers,with a recent notch credit upgradeto BBB from Standard & Poor’s (S&P).

Moody’s gave the Philippinesan investment grade rating of Baawith positive outlook in October 2013,


2. PHL moves upin social progressindex

the third for the country last yearafter Fitch Ratings did the samein March and Standard & Poor’s(S&P) in May.

The country achieved investmentgrade rating due to strong economic

performance, ongoing fiscal and debtconsolidation, and political stabilityand improved governance.

Notably, the Philippinesis the sole country in Asia givena positive outlook by Moody's.

The Philippines ranked 56th outof 132 countries in the SocialProgress Index (SPI) 2014

released by the Social ProgressImperative.

The country improvedfrom an SPI score of 49.41in 2013 to 65.86 in 2014.

The SPI ranks countriesby their social and environmentalperformance.

Despite having a much smaller grossdomestic product (GDP) per capitacompared to its neighbor countries,the Philippines’ good performanceplaced it ahead of Thailand (59)and Indonesia (88) , the survey said.

It is also ahead of economicpowerhouses like Russia (80),China (90), and India (102)in the overall rankings.

For the first time, each country’sperformance was also compared

to 15 other countries with a similarlevel of economic development(based on GDP per capita).

The Philippines’ economic peers(similar GDP per capita) in the SPIare the Republic of Congo, Iraq,Honduras, Nicaragua, India,Indonesia, Guatemala, Uzbekistan,Swaziland, Bolivia, Morocco,Moldova, Guyana, Mongolia,and Laos.

Remarkably, the Philippinesmanaged to outperformall 15 of them to have the best SPIperformance in this sub-group,the report said.

Compared to this peer groupof 15 countries, the Philippineshas performed strongly on theunderlying measures of opportunity,doing well in areas of accessto advanced education, and personalfreedom and choice. (TPS 04/29)

3. More Japaneseauto parts makerscoming here

Japanese automotive partsmanufacturers are aggressivelyexpanding operations

in the country to address hugedemand globally, PhilippineEconomic Zone Authority (PEZA)Director-General Lilia B.De Lima said.

The latest to expand operationis Japanese firm Mitsuba Corp.,one of the pioneer auto partsmanufacturers registered with PEZA.

The company has recentlyinaugurated its 1.1-ha. gross floorarea building in Lima Industrial Parkin Batangas. This fourth building will

employ 800 people on topof the current 4,500 workersat its three factories.

Mitsuba has an existing plantin Lima Industrial Estateand two other factories in the FirstCavite Industrial Estate.

De Lima also cited Mitsubafor bringing in its suppliers.

“Japanese auto parts manufacturerare rapidly expanding in the country,”she said.

De Lima said auto parts suppliersof Toyota are also expanding


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

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

4. Manila offerscheapest office sitesin Asia Pacific

Manila is the “cheapest” placeto set up an office in AsiaPacific or anywhere

in the world, Jones Lang LaSallePhilippines Inc. (JLL) reported.

“The Philippines is oneof the cheapest markets in the region,maybe in the world, and that’s notbecause demand is slow.The demand is very high. It’s justthat the supply is also meetingthe demand so much,” JLL CountryHead and International DirectorDavid Leechiu said.

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

wants to go there, but there is notenough supply,” he said.

The company said total spacecommitted as of end-2013was 470,750 sqm. of which 185,520sqm. was for lease. (TMT 29/04)

Q1 2014 office rates in Asia(In USD per square floor per annum)

City RateManila 20New Delhi 35Sydney 35Seoul 50Tokyo 70Shanghai 75Singapore 85Hong Kong 135

1. DTI releases loanin Leyte’s typhoon-hitareas

MSME News The Department of Tradeand Industry (DTI) releasedP204.31M in loan assistance

to 98 micro, small, and mediumenterprises (MSMEs) in Leyteprovince, following the typhoonYolanda onslaught.

The DTI has introduced creditbrokering to assist affected MSMEsin finding access to financewith softer terms for them to be ableto bounce back.

The DTI had also conductedfinancing forum in partnership

MSME loan beneficiaries(in million pesos)

Expected No. of AmountArea MSMES released

Tacloban City 67 154.35Ormoc City 15 22.70Palo 10 16.75Tanauan 4 7.05Dulag 1 2.00Tolosa 1 1.50

with the Development Bankof the Philippines (DBP)and the Small Business Corporation(SB Corp.) benefiting 293 individuals.

2. DTI trains ZamboSSF co-operators T

he Department of Tradeand Industry (DTI) recentlyconducted a two-day project

management training for its sharedservice facility (SSF) projectco-operators in Zamboanga City.

The training aimed to ensurethat the SSF projects will be properlymanaged and also to assurethe projects’ operation sustainability,DTI-9 Officer-in-Charge –Assistant Regional Director SittiAmina M. Jain said.

The qualified co-operators or projectpartners include small farmersassociations, cooperatives,and foundations especially thosebelonging to the Region 9 priorityindustry clusters.

Region 9 priority industry clusters

• Seaweeds• Coconut• Rubber• Abaca• Mango• Fish and Fish products


“We take it upon ourselves to ensurethe project is managed and operatedat the optimum. This is done throughtechnical support, consultancy,

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

3. DTI serves more than30,000 clients throughDiskwento Caravan

More than 30,000 consumersfrom Leyte availedthemselves of the Diskwento

Caravan organized by the Departmentof Trade and Industry (DTI)after typhoon Yolanda.

“So many of outlet storeswere damaged and closed evenuntil now, especially the big ones,”DTI-Leyte Provincial DirectorDesiderio P. Belas Jr. said.

Since Yolanda, DTI has organized15 Diskwento Caravanswith 26 distributors from outsidethe region joining the activity.

The biggest sale was generatedin January amounting to P3.82M.Sale in February and Marchamounted to P2.77M and P0.81M,respectively.

4. DTI-Negros Orientalembarks on discountcaravans

The Department of Tradeand Industry (DTI)-NegrosOriental embarked on its yearly

discount caravans to allowconsumers to avail themselvesof lower prices of basic commodities.

For this year, there will be three runsof the discount caravans or “BagsakPresyo” and “Balik Eskwela”in pre-selected areas in the province,DTI-Negros Oriental ConsumerWelfare and Business RegulationDivision Chief AngelineGonzalez said.

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

Meanwhile, a “Fiesta Galore andNoche Buena” diskwento caravanis scheduled on 2-3 Octoberin Manjuyod town as partof its fiesta celebration.

5. Diskwento Caravan-Balik Eskwela Editionheld in Region 9

In preparation for the resumptionof classes this school year,the Department of Trade

and Industry (DTI) conducteda Balik-Eskwela Edition of itsDiskwento Caravan programin Zamboanga Peninsula.

It aims to provide products at lowerprices, including school supplies,to residents of the area, particularlyparents and students.

DTI-9 Regional Office is alsoplanning to have a corresponding

activity on 26 to 27 Junefor Ramadan to be dubbedDiskwento Ramadan.

The program would offer halalfoodstuffs at a discount amongproducts to be on sale.

DTI’s Diskwento Caravanis conducted with participationfrom manufacturers, distributors,and wholesalers that sell theirproducts at factory prices.


3. PHL to exportmore mango varietiesto U.S.

The Department of Agriculture(DA) expects to seal a bilateraltrade agreement with the

United States (U.S.) that allowsthe entry of more Philippine mangovarieties into the U.S. market.

DA Secretary Proceso J. Alcalasaid the U.S. Departmentof Agriculture (USDA) currentlyallows only the exportationof mangoes from Guimaras,but with the new agreement,the country will likely be allowedto ship mango varieties from allover the Philippines except Palawan.

Alcala noted the sanitaryand phytosanitary (SPS)

Major mango production areasin the Philippines

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

requirements for Philippine mangoexports have already been approvedby the USDA.

The Philippines, thus, is only waitingfor the USDA to complete otherregulatory requirements. (TPS 30/4)

Business Update1. PEZA cautions firms

vs trafficking

The Philippine Economic ZoneAuthority (PEZA) warnedthat registered enterprises

found engaging in human traffickingwill lose their registrationand face charges.

“We hold them liable and if foundguilty, we can strip them of their

registrations,” PEZA Director-GeneralLilia B. De Lima said.

Last April, a raid on an upscaleentertainment club in Pasay Citysuspected of being a prostitution denled to the rescue of 19 women,which include 13 Filipinos and six othersfrom Russia and Ukraine.(MAB 26/4)

2.Go for exports,Dagupan milkfishgrowers urged

Dagupan milkfish growersmust tap the export marketas it is the only way to solve

the pricing problem and theoversupply of milkfish in the province.

Dagupan City Mayor Belen T.Fernandez urged her constituentsduring the Department of Tradeand Industry’s (DTI) and the Bureauof Fisheries and Aquatic Resources’(BFAR) jointly sponsored RegionalBangus Summit last 23 April.

Belen said she is happy thatthe summit is geared towards Free

Trade Agreements (FTAs), whichprovide opportunities to those whoare ready while a threat to thosewho are not.

She also urged to maximizethe full potential of the city’s ownprocessing plant in Bonuan Binloc.

“Right now, it is not yet operating24/7, with only a hundred debonersworking at the plant. If only wecan make full use of it, we would behelping more people to workat the plant,” Fernandez said. (TPS 27/4)

Consumer News1. PHL out of USTR

watch list,seizes P6B fakeproducts in Q1

The Philippines has beenremoved from the Watch Listof the United States Trade

Representative’s (USTR) latestSpecial 301 Report that assessesand classifies the United Statesof America’s (USA) trading partners

which lack intellectual property rights(IPR) enforcement and protection.

The country has been on the reportfor over two decades after first beingincluded in the Watch List in 1989,then in the Priority Watch List in 1994.


2. 9th ACCP pushesto improve consumerrights for AEC 2015

Efforts by the Philippine governmentto strengthen IPR enactmentand safeguarding were recognizedby the USTR, but also stressedthe need to address problems facedby enterprises leaning on IPRs.

Meanwhile, fake goods confiscatedin the first quarter of the year werethe highest in history, reachinga total worth of P6.24B, nearlyexceeding 80% of the total worthof seized counterfeits for 2013which was at P7.81B.

The goods were snared by membersof the interagency task force National

Committee on Intellectual PropertyRights (NCIPR) in individualand joint operations.

Amount confiscated per NCIPRmember/joint operation

• P4.14B Bureau of Customs(BOC), IPOPHL, andNational Bureau ofInvestigation (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)

The 9th meeting of theAssociation of Southeast AsianNations (ASEAN) Committee

on Consumer Protection (ACCP),which aims to discuss ASEANcountries’ consumer protectionlaws in light of the ASEAN EconomicCommunity (AEC) in 2015,was hosted for the first timeby the Department of Tradeand Industry-Consumer ProtectionAdvocacy Bureau (DTI-CPAB).

“The meeting will particularly conferon the current progress of the ASEANmember-states on their respectivedeliverables for the AEC in 2015,and the implementation of the AECblueprint vis-à-vis their scorecardon consumer programs”DTI Consumer Protection Group(CPG) Undersecretary VictorioMario A. Dimagiba said.

Among the ACCP’s targets for AEC2015 is to have consumer protectionlaws in all 10 ASEAN member states,eight of which already have existingconsumer protection laws includingthe Philippines.

For its part and to prepare for the AEC2015, the DTI submitted amendments

Consumer Act of the Philippinesproposed amendments

• Minimum fine-from P500to P50,000

• Maximum fine-from P300,000to P1M

• Imprisonment period-from sixmonths to two years

E-commerce issues to be addressed

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

to Republic Act No 7394 orThe Consumer Act of the Philippines,first enacted in 15 July 1992,to Senate Committee on Trade,Commerce, and EntrepreneurshipChairman Senator Paolo BenignoAquino IV.

The draft amendment hopesto increase the fines andimprisonment period of violatorsand better address consumerproblems in e-commerceor online sales.


FEATURESM Malls now providesBN registration services

1. APEC 2015 Meetingto be held in PHL

ASEAN Watch

The Department of Tradeand Industry (DTI) said25 SM malls in Luzon have

established Consumer WelfareDesks (CWDs) where entrepreneurscan register their businesses' namesthrough SM’s Business ServiceCenters.

“Partnering with SM makes it moreaccessible and convenient forapplicants to register their businessnames,” the DTI said.

Last March, DTI RegionalOperations Group (ROG)Undersecretary ZenaidaCuison-Maglaya and SM Mart Inc.Executive Vice-President forControllership Ricky A. Limsigned a memorandum of agreement(MOA) between DTI and SM Groupthat established Business ServiceCenters in SM Malls to make it moreaccessible to applicants to registertheir business names.

DTI- NCR Officer-in-Charge -Regional Director Ferdinand

SM malls with Business NameRegistration Services

• 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

L. Manfoste said the e-businessname registration system is nowenhanced and accepts onlinepayment through G-Cash and Bancnet.

Four economic areaswere identified as prioritiesin the 2015 Asia-Pacific

Economic Cooperation (APEC)Meeting in the Philippines.

Top 4 agenda for APEC 2015 Meeting

• Enhancing the regional economicagenda

• Fostering small and mediumenterprises’ (SMEs) participationin regional and global markets

• Supporting and investing in humanresources

• Building sustainable and resilient

communities

In the APEC meeting, they aimto advance the Free Trade Areaof the Asia-Pacific (FTAAP).They also want to tackle howto create an open and transparentbusiness environment for smalland medium enterprises (SMEs).

The APEC 2015 targets to promoteinclusive growth through sustainableand resilient SMEs. The regionalmeeting also targets to promoteknowledge-based economiesthrough enhancing cross-bordereducation, facilitating the movementof workers, and developingan APEC-wide qualificationreferencing framework.


STATWATCHAsia's economic recoverythis year will deepen dueto exports pick up and

domestic demand, the InternationalMonetary Fund (IMF) said.

In IMF's Regional Economic Outlookreport, weaker Asian currenciesand stronger growth in advancedeconomies will likely help underpinexpansion in Asia.

The IMF foresees an average6.8% in 2014 and 6.7% in 2015for East Asian economies whileSoutheast Asian economies willhave an average 5% growth this year.

2. IMF sees growthfor Asian economies

P2.63T Investments approved

by the Philippine EconomicZone Authority (PEZA) from 1995

to March 2014. Over P1Tcame 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, nearlyexceeding 80% of the total worth

of seized counterfeits for 2013which was at P7.81B

P14.69M PEZA’s tax

remittance to the government,with 50% dividends to thenational government and

payments of previous loansincurred by predecessor agency

of PEZA

1,058,599 Direct

employment generated by PEZAecozones. Together with indirect

employment, PEZA ecozoneshave generated

some 5.2M jobs

301 Ecozones in the country

which are occupied by 3,240companies from the original

331 companies in 1995

56th PHL’s ranking out of 132countries in the Social Progress

Index (SPI) 2014 releasedby the Social

Progress Imperative


Legend:

MAB - Manila BulletinTPS - The Philippine Star

(A synopsis of selectedbook acquisitionsat the DTI-TIIC library)

What’s New?

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 AquinoTo subscribe, email: [email protected]

Publisher : Economic ResearchInstitute for ASEAN and East Asia (ERIA)

Call Number : 45 000/03.08.05/ERIA/2014

This report presents the small andmedium enterprise (SME)development policies and actionsimplemented by the Association ofSoutheast Asian Nations (ASEAN)countries and helps identify strengthsand weaknesses in policy designand implementation. It comparesthe experience and performanceof the ten ASEAN member countries,measures convergence towardsthe policy guidelines of their strategicplan for SME development (2010-15),and recommends priority reforms.It also provides methodology basedon a tool developed by theOrganization for EconomicCooperation and Development(OECD) to assess policydevelopment across countriessharing a common SMEpolicy platform. 272p.

Title : ASEANSME PolicyIndex 2014

Publisher : World Trade OrganizationCall Number : 02 000/08.09/WTO/2014

This book presents four sections:export-diversification, the roleof nontariff measures, the roleof law in connection to globalmarkets, and the role of the aid fortrade initiative in building tradecapacity and overcoming supply sideconstraints. It focuses on majorchallenges developing countriesface to achieve a sustainable growthpath in the context of open markets,non-tariff measures for exportperformance and policy-making,and how international economiclaw may restrict developing countries’ability to overcome the supply-sideconstraints they face when tryingto address climate change. 236p.

Title : Connectingto GlobalMarketsChallenges andOpportunities

dataline 11 (2014)

Documents