dataline no. 04 feb 24 2014

8/12/2019 Dataline No. 04 Feb 24 2014

1/10

dataline February 24, 20141

datalineA bi-monthly digest of global and domestic industry trends and developments. Published by

the Trade and Industry Information Center, Department of Trade and IndustryManila, PhilippinesTel. (632) 895.3611Fax (632) 895.6487To subscribe, email: [email protected]: http://www.dti.gov.ph

February 24, 2014

Vol. 19, No. 04

In this issue

Focus

PHL excels in 7 out of 8

competitiveness indices

Inside DTI

1. DTI launches e-payment

for BN registration

2. 10-% growth in BOI approvals seen

3. DTI to organize more trade fairs

in 2014

Good News, Philippines!

1. Exports grow 18.9% in Nov 2013

2. Real estate investment destinations:

MM 4thin Asia

3. Robust economy predicted for 2014

MSME News

1. China looks to source seaweeds

from PHL

2. DTI eyes honey industry expansion

in La Union

Business Update

Furniture firms profit to expand by 10%

in 2014; PHL to take part in more

international trade fairs

Consumers News

KSA, UAE top countries with undelivered

balikbayanboxes

Statwatch

Whats New?

8/12/2019 Dataline No. 04 Feb 24 2014

2/10

Vol. 19, No. 042dataline

FocusPHL excels in 7 out of 8


The Philippines improved

in seven out of eight global


for 2013, the National Competitiveness

Council (NCC) reported.

Out of eight major competitivenessreports released last year,

we recorded gains in seven of them

and held ground in one. This is

the first year this has been done,

NCC Private Sector Co-Chairman

Guillermo M. Luz said.

Among the seven competitiveness

rankings where the Philippines

improved, it was in the Ease

of Doing Business Report, producedannually by the World Bank (WB)

and International Finance Corp.

(IFC), where the country advanced

the most last year.

From 138thplace, the country

improved by 30 spots to 108th

out of 189 economies on the list,

which tracks changes in regulations

on domestic small and

medium-sized companies.

The country, WB Philippines

Country Director Motoo Konishi

said, had accomplished

more than any other country

measuredlast year.

This is the first major improvement

for the Philippines in the Doing

Business ranking since the report

started 11 years ago,Konishi said.

The other competitiveness rankings

where the Philippines clinched

higher positions were:

World Economic Forums (WEF)Global Competitiveness Index

(up six places to 59thout of 148

economies);

International Institute for

Management and Developments

2013 World Competitiveness

Yearbook (up six places

to 38thout of 60);

Transparency InternationalsCorruption Perception Index(up 11 places to 94thout of 177);

Heritage Foundations Indexof Economic Freedom

(up five places to 97thout of 177);

WEFs Travel and TourismCompetitiveness Report

(up 12 places to 82ndout of 140); and

World Intellectual PropertyOrganizations Global Innovation

Index (up five places to 90thout of 142).

Luz said much of the gains

were the result of joint effortsby the public and private sector over

the last three years.

With the jumps in the rankings,

Department of Trade and Industry

(DTI) Secretary Gregory

L. Domingosaid the goal to be

in the top third by 2016 is something

that is not a stretch target anymore.

This target has become quiteachievable, and we may even surpass

this target significantly. We are now

in a position to take off because

of our infrastructure, business

procedures, and legal system.

We are still behind developed

countries, but we are significantly

ahead of many of our peers,

Domingo said.

The Philippine economy

has so far expanded above its 6%-7%

target, averaging 7.4% in the first three

quarters of 2013. For 2014 and 2015,

the government is targeting gross

domestic product (GDP) growth rates

of 6.5%-7.5% and 7%-8%, respectively.

Domingo said higher competitiveness

rankings will also place

the Philippines in a better position

come the planned economic

integration of the 10-member

Association of Southeast Asian

Nations (ASEAN) in 2015 since

the country is already more competitive

now than some of its neighbors.

8/12/2019 Dataline No. 04 Feb 24 2014

3/10


2. 10-% growth in BOI

approvals seen

Inside DTI1. DTI launches

e-payment

for BN registration

The Department of Trade

and Industry (DTI)

has launched the electronic

payment (e-payment) facility

for business name (BN) registration

to make it easier for entrepreneurs

to start a business in the country.

Through this e-payment facility,

entrepreneurs may register

their BN without the need

to visit the DTI office.

Currently, the DTI has enlisted

both Globes GCash and Bancnet

for this e-Payment facility.

In assuring entrepreneurs

of an enabling business environment,the government is gathering

institutions and partners from the

private sector to work on key reform

areas in line with President Benigno

S. Aquino IIIs policy thrust anchored

on good governance and

transparency,DTI Secretary

Gregory L. Domingosaid.

The e-payment facility for BN

registration is one of the projectsthat the DTI is implementing

to simplify the process of dealing

with the government as entrepreneurs

start and run their businesses,

Domingo added.

He said the DTI aims to create

a favorable environment

for both foreign and local businesses

to flourish.

DTI Undersecretary for

Management Services Group

(MSG) Nora K. Terradosaid

after migrating the Enhanced

Business Name Registration System

(eBNRS) and Philippine Business

Registry System (PBRS) to the cloud

environment in 2013, the DTI

enhanced these systems

to make them robust for additional

functionalities and services

such as the e-payment facility.

With this e-payment facility in place,

entrepreneurs can apply and renew

their BN without going to the DTI

offices, and enjoy the convenience

of paying the applicable fees online

through their computers or mobile

phones, Terrado said.

The e-payment facility

was made possible in partnershipwith BancNet, Development Bank

of the Philippines (DBP), Globe

Xchange, Inc. (GXI), and Landbank

of the Philippines (LBP).

She also said that registering

a BN can also be done online

through the PBRS website at

www.business.gov.ph where

entrepreneurs can avail themselves

of other government-related servicessuch as Taxpayer Identification

Number (TIN) validation and/or

creation with the Bureau

of Internal Revenue (BIR)

and application of Employers

Registration Number (ERN)

with Pag-IBIG Fund, PhilHealth,

and Social Security System (SSS)

in less than 40 minutes.

Last year, the DTI registered 335,266

new and renewing BNs.

Of this, a total of 41,658 new

and existing BNs registered

through the PBRS.

The Board of Investments (BOI)

is eyeing at least a 10-% hike

in project approvals this year

to reach P443B as it expects more

robust activities from localand foreign firms.

Last year, BOI-approved projects

amounted to P403.17B largely

due to the rise in the number of

capital-intensive power generation

projects.

A 10-% growth is a reasonablegrowth projection for approved

investments. What we aim

for, however, is its impact in terms

of stable and decent jobs for a more

8/12/2019 Dataline No. 04 Feb 24 2014

4/10


3. DTI to organize more

trade fairs in 2014

inclusive growth,Department

of Trade and Industry (DTI)

Undersecretary for Industry

Development and Trade Policy

Group (IDTPG) Adrian S.

Cristobal Jr. said.

The momentum could be attributed

to the strong domestic consumption

coming from the sheer size of the

domestic market, reconstruction

spending, and the expected increase

in infrastructure spending; and to the

countrys stable macroeconomic

condition, Cristobal said .

He added the global economys

expected modest growth,the United States (U.S.) improving

economic performance, Japans

continued recovery due to the

so-called Abenomics, China

and South Koreas strong growth,

and the fast growth expected

in Southeast Asia could boost

investment growth in the country.

In terms of sectors, the growth drivers

will most likely be the construction,business process outsourcing (BPO),

telecommunications, wholesale

and retail trade, consumer durables,

housing, tourism, and the whole

manufacturing sector,he said.

Foreign direct investments (FDIs)

are also expected to continue

to increase, while exports are seen

to recover.

DTI Secretary Gregory L.

Domingo said he expectedthe countrys FDIs to grow by

as much as 20% this year to USD

4.8B on the back of foreign investors

increased interest in the Philippines.

Wherever we go, there is such

a huge interest in the Philippines

from foreign investors. We went

to Europe earlier and just came

back from Japan, where we met

with representatives of variouscompanies. There was evidently

overwhelming interest.

It was almost too good

to be true,Domingo said.

For 2013, Domingo is confident

that the Philippines could surpass

the FDI target of about USD 4B,

43% higher than the actual FDIs

in 2012 of USD 2.8B. As of end-

September 2013, FDI flows stoodat USD 3.1B, which was 10% higher

than the year-ago level.

To boost domestic trade

for the countrys micro, small,

and medium enterprises

(MSMEs), the Department of Trade

and Industry-Bureau of DomesticTrade (DTI-BDT) is planning

to organize more domestic trade

fairs this year.

DTI Undersecretary for Trade

and Investment Promotions

Group (TIPG) Ponciano C. Manalo

Jr.said the DTI intends to have six

domestic trade fairs in priority sectors

such as food, fashion, arts,

and furniture and furnishings for 2014.

Last year, we organized two

domestic trade fairs to provide

opportunities for our MSMEs

to sell their products in the domestic

market and eventually make their way

in the international market,

Manalo said.

Through national food

and handicrafts fairs under its new

Sikat Pinoybrand, the DTI brought

together 577 MSMEs

from the countrys 16 regions.

To encourage market expansion

of thriving MSMEs supported by the

BDT, we will continue to facilitate their

participation in international trade

fairs such as the International FoodExhibition (IFEX) and the Manila

Furnishings and Apparel

Manufacturers Exchange (FAME),

Manalo said.

8/12/2019 Dataline No. 04 Feb 24 2014

5/10


Good News,

Philippines!

1. Exports grow 18.9%in Nov 2013

Manalo added that aside

from promoting their products

in these fairs, fair participants

will also be provided with product

design and development services.

We will also continue to organizeproduct-sourcing missions

to facilitate trade between MSMEs

and buyers from big trading houses

and consolidators. These missions

were also designed to provide

MSMEs with useful information

to improve their product

marketability,Manalo said.

Select 2013 trade fairs

and sales generated

Trade Fair Sales

(in million pesos)

Manila FAME (March edition) 72.2

Sikat PinoyNational 51.3

Handicrafts Fair

IFEX 46.7

Manila FAME (October edition) 33.9

Sikat PinoyNational Food Fair 13.8

Bohol SandugoTrade Fair 1.6

Aklan Fiber Festival 1.4

Quezon Trade Fair 0.9

He also mentioned that DTI will carry

on its merchandise consultancy or

clinics wherein trade experts advise

micro and small enterprises on

product quality, competitiveness,

and promotion. In 2013, these

marketing clinics were organized

for enterprises in the Cordilleras

and community-based associations

from Sulu, Sultan Kudarat,Maguindanao, and Palawan.

To further promote homegrown

products, the BDT will continue

to provide its direct matching

services and organize workshops

and seminars on marketing

for MSMEs. It will also operate

the new Domestic Trade Exchange

Portlet (DTEx) to provide trade fair

information, process fair applications,

and perform market-matching activities.

Manalo also said the DTI

will maintain its showroom for

MSMEs as well as trade and industry

associations to display and sell their

products during the entire year.

DTI Showroom occupants

and sales generated

MSMEs supported by DTI-NCR

P1.55M

Philippine Exporters Confederation,Inc. (PHILEXPORT) Southern

Tagalog - P708,845

Buy PinoyMovement P622,102 MSMEs supported by DTI-CAR

P446,921

Manalo also mentioned that through

collaborative efforts with the private

sector and local government units

(LGUs), DTI continued to promoteand monitor the Tindahang Pinoy

stores in Cebu, Davao,

and Pampanga.

Through these stores, we intend

to provide MSMEs with a venue

to promote the best homegrown

products from various regions

through an organized supply

channel,Manalo said.

Last year, these stores offered 1,427

products and additional 489 products

available online, with total sales

amounting to P12M.

The countrys exports grew

18.9% to USD 4.3B

in November 2013

from USD 3.6B a year ago,

fuelled by the double-digit growthof agricultural products and

manufactured goods, according

to the National Statistics Office (NSO).

The buoyant export performance

of manufactured products, driven

primarily by electronics, reflects gains

from the revival of the manufacturing

sector as one of our growth drivers,Economic Planning Secretary

Arsenio M. Bal isacan said.

8/12/2019 Dataline No. 04 Feb 24 2014

6/10


2. Real estate investment

destinations:

MM 4thin Asia

Exports of manufactured goods

sustained a double-digit growth

of 16.9% in November 2013,

registering a total value of USD 3.7B

during the period.

Export growth drivers in Nov 2013

Manufactured goods- electronic products- garments- wood manufactures- chemicals- machinery and transport equipment

Agricultural products- bananas- fish products- centrifugal and refined sugar- desiccated coconut

- tobacco

Electronics, which comprised

over half of exports receipts

from manufactured goods,

was up by 10%, consistent

with the projected gradual recovery

in worldwide sales of personal

computers and an uptick

in global consumer confidence.

Exports agro-based products

grew by 38.1% to USD 265.4Min November 2013 from USD 192.2M

in the comparable period in 2012.

On a related note, National Economic

and Development Authority (NEDA)

reported the countrys export earnings

could post double-digit full-year

growth this year on the back of base

effects and the recovery

in the United States (U.S.).

This is because of a low base

and if the recovery in the U.S.

proceeds. Recovery in Europe is not

yet there. Indirectly, theyre still your

final market. Were part of the value

chain in Asia and, indirectly, Europe is

still our final consumer,NEDA

Assis tant Direct or General

for National Planning and Policy

Rosemarie G. Edillonsaid.

The Philippines bested other East

and Southeast Asian countries

in terms of export growth

in November. Balisacan said

Viet Nam and China posted export

growths of 15% and 12.7%,

respectively, in November 2013.

We were the top export performer

among major trade-orientedeconomies in East and Southeast

Asian region,Balisacan said. (BMI 01/10)

Metro Manila has emerged

as one of the top five real

estate investment

destinations in Asia-Pacific,

according to a report published

by the Urban Land Institute (ULI)

and PricewaterhouseCoopers.

The Emerging Trends in Real Estate

Asia-Pacific 2014 report showed

Metro Manila went up eight places

from the previous year to rank

4thin terms of investment prospects

for real estate.

The report, which covered 23 urban

areas in Asia-Pacific, showed

Metro Manila placing 8thin terms

of development prospects.

The rankings are based on the survey

and personal interviews of 250

of the most influential leaders

in the real estate industry.

Manila is among the big movers

in the survey given the success

in the impact of the business process

outsourcing (BPO) and strong gross

domestic product (GDP) growth,

ULI Chief Executive Officer

(CEO) for Asia Pacific John

Fitzgerald said.

The report cited the latest resultthat showed investors growing

awareness that the problems long

associated with lack of transparency

and governance issues in the country

have improved.

Emerging Trends in Real Estate

Asia-Pacific 2014:

Top investment destinations

1. Tokyo 6. Guangzhou

2. Shanghai 7. Singapore

3. Jakarta 8. Beijing

4. Manila 9. Osaka

5. Sydney 10. Shenzhen

8/12/2019 Dataline No. 04 Feb 24 2014

7/10


3. Robust economypredicted for 2014

The country also benefits from young

demographic, strong capital inflows

from local citizens working overseas,

and a workforce with a cultural affinity

with the West,the report read.(TPS 01/11)

Economists and industry

members are positive thatdespite growth decelerating

in the last stretch of the previous year

due to Typhoon Yolanda, the recovery

efforts will keep 2013s economic

posting at 7% and pull 2014s

growth up to 7.5%.

The government has earmarked

P361-B budget for the next four years

for the Reconstruction Assistance

on Yolanda (RAY) seen to contribute1% to this years growth that will

otherwise reach only 6% to 6.5%.

The government previously predicted

that 2013 economic performance

will be at 6%-7% while the private

sector expected it to be at 7%.

For this year, the government

is looking at a 6.5%-7.5% growth.

As of October 2013, economic

growth was at 7.4%, with the first halfof the year posting at 7.7%.

(MAB 01/03; TMT, BWD, BMI 01/06)

Other forecasts

Remittance growth: 6%-7% Domestic demand: 8% Consumption spending: 6.2% Investment spending: 16%20%

for construction expenses Industry sector growth: 9.7%mostly

from manufacturing and construction

Services sector growth: 7%mostlyfrom business process outsourcing(BPO) and tourism

Exports growth: 6%-10% Imports growth: 8%-12% Peso-Dollar rate: average P43-36=USD1 Philippine Stock Exchange (PSE)

Index level: 6,300-6,500

Economic growth indicators Global recession recovery Recovery of export markets

MSME News1. China looks to source

seaweeds from PHL

Seaweed producers

in Mindanao are encouraged

to increase their production

to meet the supply demand

of Chinese businesspeople.

Together with Chinese

and Filipino-Chinese businesspeople

who showed keen interest

in the Butuan Citys seaweed

production, the Peoples Republicof China (PRC) Consulate General

had visited the province recently.

The existing local seaweed industry

production is, however, insufficient

to supply Chinas requirements,

so much so that even local buyers

for carrageenan production import

from Indonesia to meet their needs.

Produced from dried seaweedsfor consumer and industrial use,

carrageenan is exported by local

manufacturers to China, Europe,

and the United States (U.S.).

Dried seaweed currently fetches

a price of P36-P46 per kilo while

species of seaweed sold fresh

for use as side table dish is priced

at P4-P5 per kilo.

The seaweed industry cluster looks

to boost support for seaweed farmers

by the local officials of Samal

by setting a meeting with local officials

to discuss projects and hopefully signa memorandum of understanding

(MOU). (MAB 01/11)

Mindanao seaweed industry clusters

Agusan Surigao Basilan Tawi-tawi Sulu Zamboanga

Local carrageenan processing

plant locations

Davao Surigao Zamboanga

8/12/2019 Dataline No. 04 Feb 24 2014

8/10


The Philippine Exporters

Confederation Inc.

(PHILEXPORT) said local

furniture-makers see a 10-% growth

in revenues this year given the robust

demand here and abroad.

PHILEXPORTTrustee for

the Furniture Sector Myrna C.

Bituinsaid some local companies

had opted to focus on serving local

demand. She added that exports

are seen to continue increasingdespite the slowdown in demand

from the United States (U.S.).

This year, the Department of Trade

and Industry (DTI) will make

an aggressive pitch for the local

furniture and furnishings industries

in the global arena, as it targets

to participate in more trade fairs

this 2014.

2. DTI eyes honey

industry expansion

in La Union


and Industry (DTI) turned over

a shared service facility (SSF)

to La Union to address the planned

expansion of honey production

in the province.

The facility, which includes

machines and equipment needed

to construct the necessary materials

to start beekeeping activity,

were provided to ensure adequate

supply of raw honey to be processed

into various products in the Honeybee

Center in Bacnotan, La Union.

DTI-1 Information Officer Amy

Galvez said the sustained honey

production will provide

the farmer-beneficiaries a regular

income source to help them improve

their quality of life.

Honey-producing areas

in La Union to be part

of the expansion

Balaoan Burgos Bagulin San Fernando Bauang Sudipen

Business UpdateFurniture firms prof it

to expand by 10%

in 2014; PHL to take part

in more intl trade fairs

The Center for International Trade

Expositions and Mission (CITEM)

in particular had committed to join

more trade fairs in the U.S., Europe,Middle East, and Asia.

DTI Undersecretary for Trade

and Investment Promotions

Group (TIPG) Ponciano C. Manalo

Jr.announced that aside from the

fairs they plan to participate in, they

will also hold their signature event

Manila FAME in March and October.(PDI 01/05)

Some trade fairs the Philippinesplans to join

Foodex Show (Tokyo) Gulfood (Dubai) The Hotel Show (Dubai) Sial (Paris) Salone Internationazionale

del Mobile (Milan)

Fashion Access (Hong Kong)

Consumer News

KSA, UAE top countries

with undelivered

balikbayanboxes


and Industry-Philippine

Shippers Bureau (DTI-PSB)

recorded that the Kingdom of Saudi

Arabia (KSA) and United Arab

Emirates (UAE) were 2013s top

countries with many undelivered

seafreight balikbayanbox

shipments complaints.

Out of the 149 total complaints,

25% or 37 came from KSA

while 21% or 31 were shipped

from the UAE.

Consumer Welfare and Business

Regulation Group (CWBRG)

Officer-in-Charge (OIC) Victorio

Mario A. Dimagibaadvises

the public, especially the overseas

Filipinos (OFs), to send their

balikbayanboxes to foreign

consolidators which have

DTI-accredited agents or freight

forwarders in the Philippines.

The non-delivery of balikbayan box

usually occurs when its incoming

shipments are abandoned

8/12/2019 Dataline No. 04 Feb 24 2014

9/10


STATWATCH

USD 4.3B Value of exportsrecorded for November 2013

P443B BOIs expected valueof investments this year,

to grow 10% from last year

P2.1BFreeport Area of Bataansearnings from FDIs in 2013

P221.8MSales generatedfrom eight DTI-led trade fairs in 2013

P3.3MSales generatedfrom DTI Showroom for 2013

335,266Number of newand renewing business names

registered with DTI last year

125 Doing Businessin Free Trade Areas (DBFTA)

lectures conducted

by DTI in 2013

10%Expected increase in profitsof furniture firms for 2014

7Number of competitivenessindices out of 8

where PHL improved on

at the Philippine ports for failure

of unscrupulous foreign consolidators

to remit necessary funds to their

Philippine agents for the delivery

of cargoes to consignees,

Dimagiba said.

DTI urges consumers to avoid

becoming victims of unscrupulous

cargo forwarders and check the list

of DTI-accredited sea freight

forwarders and monitor regular

advisories and alerts at www.dti.gov.ph,

he added.

Foreign consolidators/principals

that do not remit to PHL agents

KSA-based firms

Caravan Cargo Agency Cargo Net Worldwide Services

(formerly FAL-World Express Cargo)

Fil-Arab International Cargo Global Cargo Jonar Cargo Kabalen Forwarders Mohsen Cargo Services North and South Express Cargo PC Worldwide Cargo Sir Cargo Forwarders WRJ Freight Forwarders (A Division

of Al-Zagel Cargo)

UAE-based firms

Al Rodah Marine Cargo Cityline Cargo Dagupan Cargo Packaging Services Express Link Cargo Services Smooth Express Grace Express Cargo

Not DTI-accredited Philippine agents

KSA-based consolidators

Megatop Express Cargo Forwarder Manila Broker

J.J. Transglobal Brokerage Jonar Cargo RGC Green Logistics Kabalen Forwarders R&M Cargo Services Sir2Go ForwardersUAE-based consol idators

Rodah Cargo Manila VCG Customs Brokerage

Revoked DTI-accredited freight

companies

Aeroworld Logistics Phil., Inc.

D Winner Logistics Phils., Inc. DXL International Freight Forwarder, Inc. ECFS International Forwarding, Inc.

4thMetro Manilas rankingas investment destination

in Emerging Trends

in Real Estate Asia-Pacific

2014 Report

8/12/2019 Dataline No. 04 Feb 24 2014

10/10


Legend:

BMI - Business Mirror

BWD - Business World

MAB - Manila Bulletin

PDI - Philippine Daily Inquirer

TMT - The Manila Times

TPS - The Philippine Star

(A synopsis of selected

book acquisitions

at the DTI-TIIC library)

Whats New?

Editor-in-Chief/Anne L. SevillaManaging Editor/Vic S. SorianoAssociate Editor/Jam H. RaposonWriters/Resty P. Par,

Hazel S. Dizon, Joanna D. Cruz, Airiz A. Casta, Kit S. Andaya Design/Layout/Ren C. Neneria

Circulation/Myrna V. De Los ReyesTo subscribe, email: [email protected]

Philippine

Pos

talPermitNo.

PM-04-08

Entered as Third-Class Mail at

the Makati Central Post Office

under Permit No. PM-04-08

valid until 31 December 2014

Publisher : World Bank

Authors : Kuntchev, Veselin/Ramalho,

Rita/Rodriguez-Meza, Jorge

Call Number : 00 000/04.03/WB/2013

This paper develops a new measure

of credit-constrained status for firms

using hard data instead of perception

data. It classifies firms into fourordinal categories not credit

constrained, maybe credit

constrained, partially credit

constrained, and fully credit

constrained to understand

the characteristics of the firms

that fall into each group. It also tries

to explain what type of credit SMEs

use to finance their working capital

and their investments. It provides

an innovative way of measuring creditconstrained firms based both on their

usage of and ability to obtain new

credit. 39p

Title : What

Have We

Learned from

the Enterprise

Surveys

Regarding

Access to

Credit by SMEs

Publisher : Asia-Pacific Economic

Cooperation (APEC)

Call Number : 03.08.05/APEC/2013

This guidebook is intended to help

small and medium-sized enterprises

(SMEs) introduce business continuity

plan (BCP), the solution for protecting

business during crisis. It presents10 easy steps that SME readers

can follow to develop their own BCP.

In each step, forms have been

prepared to assist readers. 60p.

Title : Guidebook

on SME

Business

Continuity

Planning

dataline no. 04 feb 24 2014

Documents