dataline Focus P187-B foreign investments approved by IPAS in 2014

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1 dataline March April 2015 Vol. 20, No. 07 A bi-monthly digest of global and domestic industry trends and developments. Published by the Knowledge Management and Information Service (KMIS) of the Department of Trade and Industry (DTI) Manila, Philippines Tel. (632) Fax (632) To subscribe, publications@dti.gov.ph Online: In this issue Focus P187-B foreign investments approved by IPAS in 2014 Inside DTI Sikat Pinoy Food Fair eyes sales growth Good News, Philippines! 1. 2 New ARMM investments hit P863M 2. More British firms expected to set up shop in PHL MSMEs Sarangani MSMEs to benefit from DTI s i-pmdp 2. DTI launches SSF for infant accesories production 3. DTI-Misamis Oriental conducts capability building trainings Business Update 1. Zambo exporters preparing for EU market 2. PHL set to ink WTO pact Consumer News 1. Consumer urged to buy BPSapproved construction materials only 2. Probe on Expanded Senior Citizens Act enforcement called 3. Bill enhancing consumers rights pushed 4. Special service campaign for Toyota FJ issued Feature Inclusive growth felt ASIA Watch 1. Stronger ties for APEC members 2. APEC economies to draw more PPP investments Statwatch What s New

2 Focus P187-B foreign investments approved by IPAs in 2014 Inside DTI Sikat Pinoy Food Fair eyes 10% sales growth Seven of the 13 government investment promotion agencies (IPAs) generated P187B worth of foreign investments in 2014, the Philippine Statistics Authority (PSA) reported. Investments generated by IPAs in 2014 (In Billion Pesos) Investment Promotion Agencies (IPAs) Amount Philippine Economic Zone Authority (PEZA) Board of Investments (BOI) Subic Bay Metropolitan Authority (SBMA) Clark Development 8.97 Corporation (CDC) BOI-Autonomous Region 0.57 of Muslim Mindanao (BOI-ARMM) Authority of the Freeport 0.41 Area of Bataan (AFAB) Cagayan Economic Zone 0.34 Authority (CEZA) The Philippine Economic Zone Authority (PEZA) and the Board Some 160 food entrepreneurs from different parts of the country showcased their products in Sikat Pinoy Food Fair 2015 at the Megatrade Halls of SM Megamall in Mandaluyong City on March. The fair earned a total of P10.55M in cash and booked sales while the negotiation deals amount to 1.22M. In this fair, DTI was more stringent in selecting exhibitors, requiring participants, among other criteria, to have certificates from the Food and Drug Administration (FDA). Thus, fewer food producers were able to participate in this year s event compared to last year but Bureau of Domestic Trade Promotion (BDTP) Director Rhodora M. Leaño was optimistic that the sales target could nevertheless be attained. Vol. 20, No of Investments (BOI), both attached to the Department of Trade and Industry (DTI), accounted for 89.7% of the total amount of foreign investments hauled by the seven IPAs. Moreover, the PSA said Japan stood as the top source of the country s foreign investments followed by the Netherlands. PHL s Top 5 sources of foreign investments in 2014 (In Billion Pesos) Country Amount Japan Netherlands United States of America Cayman Islands Singapore Bulk of the foreign ventures went into manufacturing with investments worth P109B, followed by administrative and support service, including information technologybusiness process management (IT-BPM) activities with P29.76B, and real estate with P15.58B. DTI-Industry Promotion Group (IPG) Undersecretary Ponciano C. Manalo Jr. noted the high quality of product lines offered in Sikat Pinoy The event is a preparation for the International Food Exhibition (IFEX) Philippines which is scheduled to be held this May in Pasay City, Manalo added. "We would like to prepare them for the IFEX this year where our local producers will be exposed to foreign participants also and, of course, to international buyers," he said. IFEX Philippines is considered as Asia's largest food and ingredients exhibition. Other products under the Sikat Pinoy branding are furniture, arts, fashion accessories, and handicrafts.

3 23 March In 2014, the Sikat Pinoy national trade fairs for the five featured products generated a total revenue of P80M. At least one fair is conducted per year for each of these product groups branding. Good News, Philippines! 1. 2 New ARMM investments hit P863M 2. More British firms expected to set up shop in PHL MSME News Sarangani MSMEs to benefit from DTI s i-pmdp Two projects worth P863M in the province of Tawi-Tawi opened the investment year for the Autonomous Region in Muslim Mindanao (ARMM), the P741.8M nickel ore mining and the P121.21M petroleum depot projects. The projects approved by the Regional Board of Investments (RBOI)-ARMM were by Chan C Mining Incorporated and Tawi-Tawian Petroleum Trading Corporation, and are seen to generate 553 employment opportunities to residents of the area. Chan C Mining is engaged in mining and quarrying of nickel ore to be and Industry (DTI) and the Public-Private Partnership (PPP) Center are organizing a roadshow in the United Kingdom (UK) in June to promote opportunities in the infrastructure sector. A steady flow of investments are being made by British companies in the country with the opportunities in the infrastructure and retail sectors, UK Ambassador to the Philippines Asif Anwar Ahmad said. and Industry (DTI)-Sarangani is rolling out its enhanced business development program called Integrated Product and Market Development Project (i-pmdp) among local micro, small, and medium enterprises (MSMEs) engaged in food processing. The processed food sector, through the i-pmdp, will be developed by DTI under a clustering strategy. exported to China. The company s operation is located at Barangays Karaha and Dungon with a capacity of 1,000,000 wet metric tons (WMT) per year. Tawi-Tawian Petroleum s importation and distribution of petroleum project will operate at Barangay Garing Baunoh where the three oil tanks depots are currently being constructed with a capacity of 7.6M liters per annum. RBOI-ARMM earlier said they are expecting to reach the P1B mark for investments in (BWD 02/09, MAB 02/13) In the roadshow, British companies will be matched with Philippine investors and contractors, Ahmad added. In addition, British brands are coming to the country due to strong local consumption, among them Costa Coffee which is set to open its first outlet in the country this year. Local supermarkets are likewise forging partnerships with UK retailers to bring in British brands, Ahmad added. (TPS 03/02) We will be identifying common products and harmonize market development interventions for diverse sectors of our processed food industry, DTI Provincial Director Nenita Barroso said. Barroso said local processed food products have big potential in the Association of Southeast Asian Nations (ASEAN) market for being compliant with food preparation, handling, and manufacturing

4 Vol. 20, No standards and other necessary export requirements. The i-pmdp, which has five phases and runs for six months, will prepare entrepreneurs in positioning their businesses to move up to the higher stages or levels of the export process. Processed food cluster i-pmdp key strategies Product referral to certified food technologist for business and product diagnosis and capacity training Product submission for nutrient fact study to the Food and Nutrient Research Institute (FNRI) of the Department of Science and Technology (DOST) MSMEs preparation and evaluation by the Food and Drug Administration (FDA) as provided for under its New Implementing Rules and Regulation (IRR) for FDA-LTO (License-to-Operate) accreditation 2. DTI launches SSF for infant accesories production and Industry (DTI) delivered a shared service facility (SSF) to Dynamix Business Resource Center for its infant accessories production in Sto. Rosario, Aliaga, Nueva Ecija last February It is expected that the facility will increase Dynamix production volume by 100%. It will also create 20 new jobs and generate total gross monthly income of P 700,000 to P1.4M. Dynamix Business Resource Center is a sub-contractor for the Manila-based exporter Stardust Infant Wear, Inc. DTI s SSF program is expected to boost the supply chain in the gifts, décor, and handicraft (GDH) sector in the province. 3. DTI-Misamis Oriental conducts capability building trainings and Industry (DTI) conducted capability building seminars for its shared service facility (SSF) co-operators to make the eight Bamboo Node facilities in Misamis Oriental fully operational. DTI-Misamis Oriental s five-day seminar was designed to address industry gaps and support the quest of enterprising Misamisnons to produce engineered bamboo products. The course is comprised of lectures, demonstrations, and workshops which cover the following topics, among others: Understanding the Bamboo Industry Value Chain Harvesting and Material Selection Bamboo Processing and Preservation Techniques Proper way to operate and maintain the machines and equipment Quality Control and Safety Measures and Standards Capability Building Seminars Conducted Attendees Location Date Lapad Agrarian Reform Farmers Lapad, Laguindingan, February 2015 Cooperative (LARFACO) Misamis Oriental Sipaca Resources and Management Talisayan, Misamis Oriental February 2015 Services, Inc. and bamboo growers and processors Kapunungan sa Bato Upland Tribal Iba, Dansolohon, Cagayan March 2015 Tillers KAB-UTT), Inc. de Oro City

5 Business Update 1. Zambo exporters preparing for EU market 2. PHL set to ink WTO pact Exporters in the Zamboanga Peninsula (Region 9) are gearing up to take advantage of the European Union's Generalized System of Preferences Plus (EU GSP+). We ve already had initial discussions with businesses who plan to expand their operations in the region, DTI-Industry Development Group (DTI-IDG) Assistant Secretary Ceferino S. Rodolfo said. About 80 exporters, small businesses, and members of the academe from Region 9 or the Zamboanga Peninsula as well The Philippines is ready to approve the World Trade Organization (WTO) Trade Facilitation Agreement (TFA), which is expected to boost the country s trade with the rest of the world by up to 8% once implemented. We are aiming to send our acceptance for [the agreement] in July 2015, and [it is] currently undergoing domestic processes, DTI-Industry Development Group (IDG) Undersecretary Adrian S. Cristobal Jr. said. The deadline for the membereconomies acceptance of the protocol of amendment inserting the TFA into the WTO agreement is on 31 July The TFA includes: Provisions expediting the movement, release, and clearance of goods, including goods in transit 23 March as those from Tawi-tawi participated in the Doing Business with the EU using the GSP+ information session held in Zamboanga City last 24 February. The region's fishery and coconut products are expected to benefit the most from the GSP+ scheme. Marine products, which were previously levied as much as 24% tariff, are eligible for duty free export to the trade bloc under the scheme. The EU GSP+ scheme allows beneficiary countries to export 6,274 products to any of the 28 members of the EU bloc at zero tariff for a period of 10 years. Measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues Provisions on technical assistance and capacity building by the WTO. The TFA is deemed important as this allows reduction in trade costs and enhancement of trade flows between countries. The WTO estimates that the TFA could increase total world trade to USD 23T from the current estimate of USD2T. For the TFA to come into full force, two-thirds of the WTO membership must ratify the agreement through the submission of its letters of acceptance to the WTO. Only then will the TFA apply to those who have agreed to it. To date, only Hong Kong, the United States (U.S.), and Singapore have sent their letters of acceptance for the agreement.

6 Consumer News 1. Consumers urged to buy BPS-approved construction materials only 2. Probe on Expanded Senior Citizens Act enforcement called 3. Bill enhancing consumers rights pushed and Industry (DTI) advises consumers to purchase only construction materials approved by the Bureau of Philippine Standards (BPS) with corresponding PS mark. The manufacturers and importers with the Philippine Standard (PS) license or Import Commodity Clearance (ICC) certificate are authorized to distribute and sell with the printed PS mark or the ICC sticker affixed to their products. These required labels convey to the consumers that the products have passed the safety and performance tests and will guide them in distinguishing reliable and safe goods from uncertified ones, which could be inferior or substandard, BPS Director-in-Charge Atty. Ann Claire C. Cabochan said. As of 28 January 2015, the following construction materials are under Philippine National Standards (PNS) mandatory certification and must bear Acting on the complaints of businesses circumventing Republic Act No or the Expanded Senior Citizens Act, the House Committee on Trade and Industry, through House Resolution No. 1892, has called for an inquiry to determine whether there is a need for new legislation to strengthen the implementation of the act. Among the benefits for senior citizens under RA No is the granting and Industry (DTI) has submitted An Act Granting Broader Protection for Consumers Adding New Provisions and Amending Certain Provisions for the Purpose of Republic Act No. 7394, otherwise known as the Consumer Act of the Philippines to the Congress last 3 March Included in the proposed amendments are the Vol. 20, No the PS mark: Black iron (BI) and galvanized iron (GI) steel pipes Ceramic tiles Deformed steel bars Equal leg steel angle bars Flat glass, polybutylene (PB) pipes Low-carbon steel wires Plywood Polyethylene (PE) pipes for potable water supply Portland cement Pozzolan cement PVC-U pipes for drain waste and vent Rerolled steel bars Sanitary wares Steel sheets for roofing Unplasticized polyvinyl chloride (upvc) pipes for potable water supply upvc rigid electrical conduitwire nails. For more information, please visit of a 20% discount and value-added tax (VAT) exemption on availed goods and services used exclusively by senior citizens. and Industry (DTI) has maintained that despite double discounts being prohibited, the purchase or use of privilege cards should not be obligatory on the part of the consumer. inclusion of two new articles which enumerates and defines consumer rights and consumer responsibilities. Under the proposal, the term mass media was redefined, among others, to include advertisements through modern communication methods. The amendments shall require manufacturers, distributors, and sellers to immediately issue a product

7 23 March recall to the buyers of a product the moment it is found to be defective. It also mandates the product labels to be written either in English or Filipino only. To further ensure fair trade, the bill proposes that instruments of weights and measure used in transactions are calibrated and sealed on a bi-annual basis. In a related development, DTI has already dispatched 19 of 200 Timbangan ng Bayan weighing scales to markets in Marikina. The DTI also looks to increase administrative fines from the current P500-P300,000 to P50,000-P10M. Meanwhile, DTI also looks to give implementing agencies such as the Department of Agriculture (DA) and Department of Health (DOH) the power to shut down businesses that violate the consumer act. Consumer rights Right to basic needs the consumer shall have access to food, clothing, shelter, health care, education and sanitation in accordance with his economic status. Right to choose the consumer shall have access to choose products at competitive prices with an assurance of satisfactory quality. Right to representation the consumer shall be entitled to express consumer interests and be involved in the making and execution of government policies. Right to redress the consumer shall have access to the appropriate remedies for misrepresentation, substandard or defective goods or unsatisfactory services. Right to consumer education the consumer shall have access to acquire the knowledge and skills necessary to make an informed choice. Right to safety protection against the marketing of goods or provision of services that are hazardous to health and life. Right to a healthy environment. access to live and work in an environment which is neither threatening nor dangerous and which permits a life of dignity and well-being. Right to information access to protection against dishonest or misleading advertising or labeling and should be provided with the facts and information needed to make an informed choice. Critical awareness alert and inquisitive about the use of, the price and quality of goods and services; Action assert and act to ensure that consumers will always get a fair deal taking into consideration that as long as a consumer remains passive, consumers will continue to be exploited; Social concern aware of the impact of one s consumption on other citizens, especially disadvantaged or powerless groups, whether Consumer responsibilities in the local, national, or international community; Environmental awareness understand the environmental consequences of one s consumption. The consumer should recognize individual and social responsibility to conserve natural resources and protect the earth for future generations; and Solidarity organize into an association to develop their strength and influence the promotion and protection of their interests. Source: DTI-CPG

8 4. Special service campaign for Toyota FJ issued Feature Inclusive growth felt Top 3 regions business name registration percentage Region New business Renewed name business registration name registration Region 4A 8,728 (18%) 1,392 (16%) NCR 5,453 (12%) 771 (9%) Region 3 4,175 (9%) 963 (11%) Toyota Motor Philippines Corporation (TMPC) informed the Department of Trade and Industry (DTI), through a letter, of its special service campaign to fix six FJ Cruiser models sold in the Philippines. The auto recall aims to replace the intermediate shaft of the vehicles steering system at no cost to buyers. It was determined that these shafts may have been welded inadequately For the first time since the establishment of the Business Name Registration System (BNRS) in the country, business name registrations and renewals from the National Capital Region (NCR) were surpassed by those from another region. In Region 4A, composed of the provinces of Cavite, Laguna, Batangas, Rizal, and Quezon (CALABARZON), a total of 8,728 new business name registrations were made or 18% of the total national registrations, while 16% or 1,392 were renewals. NCR contributed the second biggest number of new registrations with 5,453 and renewals with 771. Rounding the top three regions was Central Luzon or Region 3, comprising the provinces of Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, and Zambales, with 4,175 new registrations and 963 renewals. Notably, business name registrations by women composed 54% of the national total for the month or 29,854 in January Ranking for the number of femaleowned businesses registered was Vol. 20, No which, if broken, may cause loss in steering control. Covered by the parts replacement service are those manufactured in Japan for the period 1 to 23 August Owners of the affected vehicles were also sent notification letters by TMPC. Customers may also contact or visit DTI offices for any clarifications and concerns regarding the special service campaign. at 6,332 or 21% from Region 4A, 3,530 or 12% from NCR, and 2,782 or 9% from Region 3. The DTI launched the online early renewal of business name registration through the BNRS on 24 November 2014, allowing for renewals in as early as three months prior to the expiration, as well as free online updating of business profiles. Before the online early renewal, a fee of P65 per transaction was charged for the updating of business name information under the manual system. From the time of the launch, 4,757 online early renewals were processed with 475 in December 2014, 3,003 in January 2015, and 1,279 in February DTI intends to rollout further online initiatives that would integrate business registrationrelated processes across business registration agencies to facilitate ease of doing business,promote transparency, curb corruption, and reduce red tape in the bureaucracy, DTI-Management Services Group (MSG) Undersecretary Nora K. Terrado said.

9 ASIA Watch 1. Stronger ties for APEC members 2. APEC economies to draw more PPP investments The Philippines has urged other Asia-Pacific Economic Cooperation (APEC) member economies to strengthen efforts in intensifying trade and investments in the region. The region s economy is expected to grow from 3.9% in 2014 to 4.3% this year. The conditions are supportive for the region to maintain its growth path. Economic activity remains dynamic buoyed by robust consumer demand, particularly among emerging markets. Exports have been rising, as some economies move up the value chain, National Treasurer Roberto B. Tan said. As host to the APEC Finance Ministers Process (FMP) 2015, The Philippines, together with the other member economies of the Asia-Pacific Economic Cooperation (APEC), are expected to draw more investments from the private sectors for public-private partnership (PPP) projects, particularly in urban infrastructure. Some of the recent major PPP projects approved include the Daang Hari-SLEX link road Project and NAIA Expressway Phase II Project. APEC Business Advisory Council Alternate Member Guillermo M. Luz said the infrastructure funding across the region is growing due to urbanization. To the extent that there is some form of predictability behind the projects, predictability will give investors a sense of the viability of the projects, Luz said. He said, however, that PPP projects should be purposely planned to gain more private sector investments. 23 March the Philippines has created the Cebu Action Plan (CAP) which aims to Building Inclusive Economies, the Road to Financial Resilience. The CAP is the main agenda of the APEC FMP wherein the member economies committed to strengthen coordination on policies, rules, and practices in which it can qualify and help free cross-border investments free trade and flow. Also, it can access to financial services by low-income households, micro small and medium enterprises (MSMEs) and the unbanked, and good governance which can enable sustainable and inclusive economic growth. STATWATCH P187B Foreign investments generated by seven government investment promotion agencies (IPAs) in 2014 P80M Sales generated by the five events of Sikat Pinoy national trade fairs in ,757 Early business name renewals made from December 2014 to February % Share of the Philippine Economic Zone Authority (PEZA) and the Board of Investments (BOI), both attached to the Department of Trade and Industry (DTI), in the total amount of foreign investments generated by seven of the 13 government investment promotion agencies (IPAs)

10 Vol. 20, No Title : 50 Leading Companies for Women in APEC Title : Geoeconomics; seven challenges to globalization A synopsis of selected book acquisitions at the DTI-Library Unless otherwise indicated with a URL address, copies are available for loan to DTI employees and for research purpose only to external clients. For inquiries/reservation, please call local 2130 or dti.elibrary@dti.gov.ph Publisher : Asia-Pacific Economic Cooperation Secretariat Singapore, November 2014 Call Number : apec.org/publication-detail.php?pub_ id=1586 Features 50 exemplary companies and organizations from APEC economies. Shares their best practices and efforts in increasing career and economic opportunities for women in the APEC region and beyond. 84 pages Publisher : World Economic Forum Geneva, 2015 Call Number : org/docs/wef_geo-economics_7_ Challenges_Globalization_2015_ report.pdf Presents seven geo-economic trends and challenges identified by the World Economic Forum s Global Agenda Council on Geoeconomics that could decelerate or even reverse globalization. These trends include the rise in economic warfare, new-generation state capitalism, and a rise in infrastructure-driven alliances among others. Outlines five lessons that offer guidance for countries on how to navigate the geo-economic landscape. 16 pages Legend BWD MAB TPS - Business World - Manila Bulletin - The Philippine Star Editor-in-Chief/Patricia May M. Abejo Managing Editor/Alfonso M. Valenzuela Associate Editor/Resty P. Par Writers/Baby M. Reposo, Jam H. Raposon, Joanna D. Cruz, Airiz A. Casta, Kit S. Andaya Design/Layout/Ren C. Neñeria To subscribe, publications@dti.gov.ph