Akbayan Calls for Vigilance Against Corruption and Abuse amid Humanitarian Crisis

Just over a week, since President Duterte signed the Bayanihan to Heal as One (BAHO) Act, the emergency powers vested on him bared its fangs on the Filipino people.

Alongside the increase of cases of COVID-19, there seems to be an outbreak of violence and rights violations too. Last March 27, a teacher and her son were arrested in General Santos City for criticizing the mayor's inaction on food distribution. On April 1, the NBI filed a case against Pasig City Mayor Vico Sotto for insisting on ferrying health workers with tricycles in the city. Later that evening, in reaction to public protest by residents of Sitio San Roque to clamor for food, Duterte ordered the military to "shoot them [any protesters] dead" in a nationwide address. In the morning of April 2, Atty. Chel Diokno released to the public that the NBI has filed subpoenas to individuals for critical opinions on social media.

It is clear in these cases how the BAHO Act has been weaponized to punish and silence critics of the government's insufficient response to the pandemic. The Filipino people need food, cash aid, and solidarity but are instead met with fear and threats of violence. This litany of abuses against civil liberties will continue to grow if we are to turn a blind eye to their actions - precisely what they want by keeping the people silent.

Our vigilance is part of our social solidarity. Government has launched today the social packages for the 18 million families. While we welcome this to aid struggling Filipino families, we demand the transparent and detailed breakdown of the P275 billion. We warn against red tape, unauthorized fees and other impediments in accessing the assistance. We continue our vigilance against corruption and abuse amidst this humanitarian crisis.

The solidarity of the people keep us strong. The health workers who take long shifts, the farmers and fisherfolk who put food on our table, and the ordinary volunteers and donors have kept us safe and strong in the middle of this crisis. While the government continues to threaten us while failing to keep us safe, we must continue to stand for each other against the sickness and the excessive violence they throw at us.

SB Corporation, Cebu People’s Cooperative Strengthen Partnership

The Small Business Corporation (SB Corporation) expressed continued support to the Cebu People’s Multi-Purpose Cooperative (CPMPC) as its Credit Delivery Partner (CDP) for the Pondo sa Pagbabago at Pag-asenso (P3) Program. CPMPC reported a total P2.56 million loans released to 124 microenterprise beneficiaries in just three months (November 2019 to January 2020). SB Corporation through CPMPC aims to generate P2 million P3 loan portfolio per month for each of the cooperative’s 16 satellite offices.

Present during the update meeting are (seated L-R) SB Corporation South Luzon Group Head Ronald Inciong, Financing Sector Head Ma. Lourdes Baula, SB Corporation President and CEO Ma. Luna Cacanando, CPMPC CEO Macario Quevedo, CPMPC COO Brian Yap, SB Corporation MIS Department Manager Marc Quincy Talagtag and SB Corporation Corporate Support Sector Head Rowena Betia (Standing L-R) SB Corporation Information Technology Group Head Evelyn Felias, CPMPC Financial Officer Eric Abistado, Training Dept Manager Jacob Layan, Credit Dept Manager Melanie Baclayon, Manila Branch Operator Ulysses Mar Josef, and Executive Secretary Nelson Rabaja.

Under the P3 Program, a micro enterprise can borrow between P5,000 up to P200,000 depending on its business need and repayment capacity with no collateral requirement with an effective interest rate of not more than 2.5% per month (based on diminishing balance). The P3 Program serves as an alternative to the P30 billion “5-6” money lending industry that charges 20% interest rate to microenterprises.

As of January 2020 the P3 program has extended a total of P5.1 billion in loans to 124,374 micro enterprises and has partnered with 418 partner financial institutions nationwide.

DTI-USAID Bootcamp to Help Women Entreps Go Digital

MAKATI – The Department of Trade and Industry (DTI) is partnering with USAID, Lead-More, and Havas Ortega to train women entrepreneurs on using digital tools to grow their business. The three-month program will be piloted in Region 4A in April, Iloilo in July, and Cagayan de Oro in October.

“In DTI we always say that for every job or business opportunity, we lift one Filipino family out of poverty. If we give these opportunities to women, we also empower them and help them become an inspiration for their families and their communities,” said Secretary Lopez.

The program, called Women Entreps-Digitally Enhanced Ventures (WE-DEV), is a three-month lecture and mentoring series to open opportunities for growth and sustainability among selected businesses owned or managed by women entrepreneurs.

USAID will fund the project and link entrepreneurs to online platforms Lazada and Shopee. Lead-More, led by Dean Pax Lapid and Jorge Wieneke, will provide training modules and mentor the women entrepreneurs.

Under the program, DTI will select 50 women entrepreneurs from the One Town, One Product program to be part of WE-DEV. These entrepreneurs will undergo the program that will begin with a two-day boot camp from Socialyse, a social media pure player from Havas Ortega.

In the boot camp, the mentees will learn how to create content and use analytics tools to track their growth. After the program, Socialyse will offer assisted campaigns by prepaid packages. Socialyse Executive Director Peter Juan said that sustainability in campaigns is important because in most seminars, mentees get excited after the first few days, but burn out when they run out of ideas.

WE-DEV will also offer lessons on basic business concepts like entrepreneurial mindset, marketing, product development, and finance. Afterwards, mentees will learn how to use digital platforms to sell their products, build their online presence, and establish payment methods.

The Philippines has the 2nd highest percentage of entrepreneurially-active females, according to the Global Entrepreneurship Monitor 2015-2016. We Are Social’s report also named the Philippines as the top country in terms of time spent on the internet in 2019. Filipinos, on average, spend 10 hours a day online. The global average is 6 hours and 49 minutes.

DTI Eyes Market Expansion in Middle East

In an effort to diversify markets for PH exporters, the Department of Trade and Industry-Export Marketing Bureau (DTI-EMB), in coordination with the Philippine Trade and Investment Center-Middle East and Africa, is conducting an Outbound Business Matching Mission (OBMM) to the Middle East on February 12-24, 2020. The OBMM is in conjunction with Gulfood 2020 in Dubai World Trade Centre.

"We hope that through this OBMM, the Philippines will be able to explore business environment and possible prospects in the Middle East markets and sustain networking and follow-up activities in the UAE as part of the mission legs last 2019,” DTI-Trade Promotions Group (TPG) Undersecretary Abdulgani M. Macatoman said.

The OBMM also targets to develop and expand relationships with business, government, and multiplier organizations in Middle East countries and enhance local understanding of the current economic conditions and business opportunities.

The mission is also anchored on EMB’s aspiration to engage with high-level promotion, targeted market intelligence and business matching, and focused training and capacity building for both large companies and micro, small, and medium enterprises (MSMEs) which also echoes the thrust of the Philippine Halal Export Development and Promotion Act (PHEDP) and the Expo 2020 Dubai campaign.

Moreover, this project supports the Export Promotion for PH Food Sector which endeavors to bring Philippine cuisine, ingredients, and beverages overseas. The program’s strategy will build on Strategy No. 3 of PEDP 2018-2022 which is to design comprehensive packages of support that will be able to mainstream the Philippine food, food ingredients, and beverages sectors and encourage innovations on major Philippine commodities and niche products.

Led by Usec. Macatoman, the business delegation is composed of representatives from 11 Philippine business companies, namely: Fitrite, Inc; Fruits of Life, Inc; HDR Foods Corporation; Jocker’s Food Industries; Magic Melt Food, Inc; Marigold Manufacturing Corp; Marikina Food Corp; Pinesvill Trading FZE LTE; Pixcel Transglobal; Sagrex Food, and LBC. Also included in the delegation are Philippine Commercial Attaché for the Middle East and Africa Charmaine Mignon S. Yalong, DTI-EMB’s Senior Trade and Industry Development Specialist Myrtle Faye L. Solina, and Trade and Industry Development Specialist Al-Mahdi I. Jul-Ahmad.

The featured products for this mission are food items, sauces, spices, mixes, and condiments as well as cargo and logistics for the services.

Macatoman reiterated the need for more Philippine brands to enter the Middle East markets to cater the demand of Filipinos living there, and to a larger extent, to penetrate the mainstream market. This mission also endeavors to deliberately promote Philippine bananas in the Middle East market, among others.

The delegation is set to have business matching events, market scanning, store visits, meetings with government authorities and a visit to Gulfood 2020.

“As part of the OBMM’s activities, the PH exporters will be engaged in B2B meetings with prospective buyers which will give them knowledge of the market requirements in terms of volume, quality, and price. It will bolster and increase exports of food and non-food products and services to GCC countries,” DTI-EMB Director Senen M. Perlada said.

Gulfood is the world's largest annual food, beverage, and hospitality exhibition which attracts F&B professionals from all over the world to Dubai - a hub for international trade and commerce. It is also celebrating its 24th edition this year.

In January - November 2019, the Philippines exported USD 720.1M worth of goods to the Middle East and imported USD 3,298.8M of goods. Among the top products exported by the country were bananas, including plantains, fresh or dried (USD 211.9M), Input or output units, whether or not containing storage units in the same housing (USD 64.0M), other bread, pastry, cakes, biscuits and other baker's wares, whether or not containing cocoa (USD 41.3M), pineapples, fresh or dried (USD 38.1M), and video projectors (USD 22.1M).

On the other hand, the country’s top imported products from the Middle East in the same period were petroleum oils and oils obtained from bituminous minerals, crude (USD 2,112.6M), light petroleum oils and preparations thereof (USD 225.9M), propane, liquified (USD 126.6M), butanes, liquified (USD 120.9M), and aeroplanes and other aircraft, of an unladen weight not exceeding 2,000 kg.

To know more about of the Philippine Delegation, you may scan the QR Code below.

You can visit their Facebook Page: fb.com/dti.export to stay updated on DTI EMB’s new and upcoming events and programs.

OTOP All Set for 2020

The One Town, One Product Program (OTOP) Next Gen kicked off the year assembling all its regional and provincial focal persons through the “OTOP Visions 2020: Trade Promotions Officers’ Evaluation and Planning Session”, last February 5 and 6, 2020 at the Hotel Jen Manila.

The session aimed to assess the group’s performance, to earn from the best practices of each region, and to set the direction of the program for 2020. It was attended by DTI Regional and Assistant Regional Directors and all the Trade Promotions Officers who have played crucial roles in the continued success of the OTOP program.

“We hope to face 2020 with a clear and unified vision of OTOP. As we set out to elevate our level and quality of MSME support, may we grow all the more resilient. Let us remember why we are doing this and who we are doing this for – for MSMEs and for the continued development of our country”, OTOP Program Manager Assistant Secretary Demphna Du-Naga stated during the opening of the OTOP Visions 2020.

The two-day conference also included learning sessions for participants given by various resource persons from the Department and other agencies. In line with rising global trends, the prospective e-commerce platforms are also being explored by the program.

The program surpassed its targets for 2019, successfully providing 10, 819 counts of MSME assistance, 6,771 counts of product development services, and enabling OTOPreneurs to generate Php 1.407 billion in sales.

To date, the program has already established 37 OTOP Philippines Hubs (OTOP.Ph), OTOP’s retail and marketing arm, nationwide with many more underway.

The Program also engaged with prospective foreign markets during a mission to Europe, where it participated in the ANUGA Fair in Cologne, Germany. There, it showcased the rich flavors of the Philippines on the world stage, enticing potential buyers and partners from all over.

The session only marked the beginning of OTOP’s continuous thrust to promote inclusive economic growth and increase the competitiveness of local MSMEs. Much can be expected from the program this year as it seeks to further expand its pool of new enrollees and level up the package of services it offers to OTOPreneurs.

Bamboo Industry Gets Boost from Government and Private Sector

QUEZON CITY - Government and private sector stakeholders converge to support the bamboo industry during the Philippine Bamboo Industry Development Council meeting (PBDIC) on 6 February.

As Chair of the Bamboo industry council, Department of Trade and Industry (DTI) Secretary Ramon Lopez reported that various agencies like the Departments of Agriculture, Environment, Local Government, and Trade are aligning their various programs and connecting the dots in the value chain of the bamboo industry. These programs include from tissue culture, and planting materials developed by DA to plant propagation and greening program of DENR, to processing, product development and design and marketing by DTI.

Several private organizations and advocacy groups will likewise merge their activities into the council’s programs. Moreover, being an agribusiness activity, located at the countryside, Lopez added that these activities are included in the Board of Investments BOI investment priorities plan or IPP that can enjoy incentives. The PBDIC is now also heavily supported by the House Deputy Speaker DV Savellano, being a staunch Bamboo advocate for years.

“The DENR’s National Greening program is targeting to plant 19,000 hectares of bamboo nationwide" said Sec. Lopez.

Department of Agriculture (DA) Secretary William Dar also expressed support for this effort in turning bamboo crops into an investment opportunity. Sec. Dar recently approved DTI’s request of including bamboo as a high-value crop. DA encourages farmers to plant high-value crops like mango, banana, coffee, and cacao as they are expected to generate more profit.

"With bamboo as a high-value crop, we can undertake various interventions that include research, processing and value-adding, and budgetary support, complementing the programs and projects of the PBIDC," said Sec. Dar.

Bamboo takes only three years to fully grow as compared to 10 to 20 years for wood trees. The plant can be used as construction materials, as well as furniture and paper-making, among others, providing a good livelihood source for a community.

Sec. Lopez shared that investments are welcome at all stages of the value chain from nurseries to design studios. Both secretaries also promoted the use of modern technology to quickly propagate and process the plant. Secretary Dar meanwhile encouraged the participation of big businesses to partner and help the small farmers, to make the project more competitive and profitable.

PBDIC Vice-Chair and Ilocos Sur Representative Savellano shared that the bills filed are to institutionalize the PBDIC and these are now being discussed at the 18th Congress. He also committed to push the bill at the bicameral hearings.

Senate Bill 524, proposed by Senator Juan Miguel Zubiri, aims to make bamboo a main export product by creating the Philippine Bamboo Industry Development Roadmap and the Philippine Bamboo Industry Development Council to provide the overall policy and program directions, and coordinate the activities of the public and private sectors.

The council will have an official launch to promote the bamboo industry. The campaign will be named 5K: Kawayan, Kalikasan, Kabuhayan, Kaunlaran, Kinabukasan.

DTI Supports ProPak; Strives for Sustainable PH Economy Through Processing and Packaging

Ensuing the success of last year’s trade exposition, ProPak, the premiere processing and packaging trade show in Asia, returned to set up its 2nd edition in the Philippines, at the World Trade Center Metro Manila, Pasay City last February 5.

Organized by Informa Markets, with the support of the Department of Trade and Industry (DTI), Packaging Institute of the Philippines (PIP) and other government and non-government agencies, ProPak Philippines 2020 flaunts more than 400 exhibitors from 30 countries featuring the world-class packaging and processing machines, benefiting a wide range of sectors from food, beverage, and pharmaceutical industries.

This three-day trade exhibit aims to further boost the capability of local packaging service providers and micro, small and medium enterprises (MSMEs).

DTI has acknowledged the role of good packaging and processing to Philippine MSMEs in enhancing their productivity, marketability, profitability and competitiveness and so introduced various initiatives on product development such as Pak! Pinas, One Town One Product (OTOP) Next Gen, and now the promotion of the ProPak Philippines.

“Many of the MSMEs, food processors, and even non-food, will always be challenged to exhibit their products well and so we are challenged to find solutions – maybe integrate these two sectors, the packaging and the MSMEs. So in 2018, we gave some rounds of packaging gatherings. We created the Pak! Pinas roadshows in Region 4A as well as in Visayas and Mindanao, and it gained success. From that time on, we saw the improvement in the confidence of micro entrepreneurs seeing developments in their products. Then came the ProPak Philippines and we’ve seen some its successes already. We hope that this will continue to get better and better,” said Trade Secretary Ramon Lopez during the ProPak’s launching.

Trade Chief Lopez also urged the ProPak exhibitors to continuously reach out to MSMEs and offer affordable packaging technologies.

Through the Regional Operations Group’s initiative, DTI sent more than 500 MSMEs to ProPak Asia in Bangkok, Thailand in 2018. Last year, the pioneer edition of ProPak Philippines reached to a close of 10,000 trade visitors, and stakeholders.

“DTI vows to continue its support to ProPak as the Department has seen the huge potential of the Philippines in the packaging industry and exploring ways to reach its goal to help the people in this industry through expanding their knowledge, innovating packaging solutions, and connecting with the international network of the industry,” said MSME Advocate Undersecretary Blesila Lantayona.

Furthermore, Secretary Lopez reiterated the significant role of MSMEs in sustaining the economic development of the Philippines, as it continuously contributes to the employment generation as well as the eradication of poverty in the country. Through DTI’s efforts, there are now around 1.5 million registered enterprises in the country.

Gracing the event was also House Committee Chairman in Commerce and Industry Weslie Gatchalian.

ProPak Philippines 2020 runs through February 5-7, 2020.

DTI CHIEF ASKS HI TECH PACKAGING SUPPLIERS TO CATER TO MSMEs

Department of Trade and Industry (DTI) Secretary Ramon Lopez said access to modern high technology packaging suppliers will help micro, small, and medium enterprises (MSMEs) level up their productivity and competitiveness. The secretary was a keynote speaker at the Propak Philippines 2020 on 5 February at the World Trade Center. Sec. Lopez urged the exhibitors to reach out to MSMEs and offer affordable packaging solutions. He also said that with the use of robotics and artificial intelligence in some of the products available at ProPak, packaging suppliers bring the necessary innovation and technology that can help MSMEs improve their products, raise their profit, and increase the sector’s contribution to the economy. SMEs should also have easier access to digital transformation for their operations. Through the many DTI initiatives that can help MSMEs, Sec. Lopez hopes to further increase the number of registered enterprises from around 1.5 million today to 2 million in 2021. Also gracing the event was House Committee Chair in Commerce and Industry Weslie Gatchalian, who expressed support for DTI’s push for technology and has lobbied to increase the budget for DTI’s Shared Service Facilities. The packaging and processing trade fair runs until 7 February and features the latest technology from global suppliers.

DTI Suspends PS Licenses of Six Steel Manufacturers

Contrary to the recent statement made by a product standards and quality group that government has failed to take action against retailers and manufacturers of substandard steel, the Department of Trade and Industry (DTI) suspended the Philippine Standard (PS) licenses of six (6) steel manufacturers in 2019 for failing the independent testing commissioned by the DTI-Bureau of Philippine Standards (BPS) from the Metals Industry Research and Development Center (MIRDC).

These steel manufacturers include Maxima Steel Mills Corp., Henro Steel Corp., Steel Asia Manufacturing Corp. – Meycauayan Bulacan Plant, Cathay Metal Corp., Somico Steel Mill Corporation, and Sagarthama Steel Trading Corporation.

1) Maxima Steel Mills Corp. - Deformed Steel Bar and Equal Leg Angle Bar

2) Henro Steel Corp. - Rerolled Steel Bar

3) Steel Asia Manufacturing Corp. - Meycauayan Bulacan Plant - Deformed Steel Bar

4) Cathay Metal Corp. - Equal Leg Angle Bar

5) Somico Steel Mill Corporation - Rerolled Steel Bar

6) Sagarthama Steel Trading Corporation - Deformed Steel Bar

The suspension order resulted from unannounced surveillance audits conducted by the BPS in 2019 on various steel manufacturing plants in the country. Samples culled from these audits that were subjected to testing by the MIRDC proved that these six steel manufacturers were not compliant with the standards indicated in Philippine National Standard (PNS) 49, Series of 2002. Until these steel manufacturers comply with the PNS, their PS licenses will remain suspended.

In addition to this, the BPS denied the issuance of Import Commodity Clearances (ICC) for deformed steel bars and equal leg angle bars imported by Megawide Construction Corporation, Petron Corporation, and Remington Industrial Sales Corporation, approximately valued at over sixty-eight million pesos (P68,000,000).

The deformed steel bars imported by Megawide Construction Corporation were denied issuance of ICC due to non-compliance with PNS 49:2002 while those imported by Petron Corporation had no proper markings. Remington Industrial Sales Corporation, on the other hand, has no valid PS license for the importation of equal leg angle bars. All these imported steel bars were either destroyed or exported to their country of origin.

It can also be recalled that in September 2019, Wan Chiong Steel Corp. was found to be manufacturing deformed steel bars that are not covered by the scope of their PS license. After due process and filing of formal charge, the DTI-Fair Trade Enforcement Bureau (FTEB) issued a decision last November 2019 for said steel manufacturing company to pay administrative penalty amounting to P450,000.00. Earlier, the same steel manufacturer was suspended for five (5) months for non-compliance with PNS 49.

Similarly, Dragon Asia Rolling Mills was also found to be manufacturing steel that are not covered by the scope of their PS license. Formal charge against the company has been filed by the FTEB and the case is now up for decision.

“For the whole of 2019, the DTI penalized a total of 42 retailers and manufacturers of steel — a clear contrast to the claim of a product safety and quality group that the Department failed to charge violating steel manufacturers and traders for substandard steel products. The DTI stops at nothing in tracking down unscrupulous businesses and ensuring that violators are dealt with to the highest and fullest extent of the law. The protection of consumers is our utmost priority and we remain steadfast in our commitment,” said DTI Secretary Ramon M. Lopez.

Since the beginning of President RodrigoDuterte’s  administration, the DTI has intensified its surveillance, monitoring, and enforcement efforts on all products and services that are under its jurisdiction, especially those included in the mandatory product certification list such as steel.

In conjunction with this effort, the DTI advises the public to remain vigilant when purchasing products, including steel and other construction materials. Always look for the PS or ICC mark to be assured of quality and safety.

For the complete list of products that should bear the PS and ICC marks, please visit the BPS portal at www.bps.gov.ph. To report establishments selling uncertified and non-conforming products, please call the One-DTI (1-384) Hotline or send an email to consumercare@dti.gov.ph. 

2019 National Arts and Crafts Fair Receives Excellent Reviews

During the formal opening of the 2019 National Arts and Crafts Fair. (L-R): Philippine Fiber Industry Development Authority (PhilFIDA) deputy executive director Annray Rivera; HABI Philippine Textile Council founder and chairperson Maribel Ongpin; DTI-Trade Promotions Group undersecretary Abdulgani Macatoman; DTI-Bureau of Domestic Trade Promotion director Marievic Bonoan: and When in Manila chief operations officer and NACF event ambassador Sky Gavin.

Tagged as the “Philippine Artisans Show,” the 2019 National Arts and Crafts Fair (NACF) was held from October 24 to 27 at the Megatrade Halls of SM Megamall in Mandaluyong City. The four-day event lived up to its objective to promote our rich cultural traditions and national heritage, while at the same time expanding the market presence of MSMEs engaged in the creative industries.

This celebration of authentic Filipino artistry and ingenuity showcasing the best collection of high-quality indigenous materials, heritage crafts, and artistic mastery attracted close to 30,000 visitors, and garnered excellent reviews with 94% expressing satisfaction. Preliminary reports peg total sales at PhP 33.6-million.

During the formal opening held last October 24, Undersecretary Abdulgani Macatoman of the Trade Promotions Group delivered the inspirational message. The keynote address of Deputy Speaker and Antique Congresswoman Loren Legarda was delivered by her representative Ms. Maribel Ongpin, Chairperson and Founder of HABI The Philippine Textile Council.

In addition to 269 exhibitors from all of the country’s 17 regions, there were special settings and pavilions by the Philippine Fiber Industry Development Authority (PhilFIDA) featuring natural fibers and fabrics; the Philippine Textile Research Institute (PTRI) focusing on Philippine tropical fabrics; and the Philippine Forest Honey Network showcasing forest honey varieties from different parts of the country.

From the province of Antique, the thriving artisan communities and their traditional patadyong, hablon weaves, bariw handicrafts, and other specialties were highlighted with the participation of 27 exhibitors from all of the province’s 18 municipalities. A special section was also devoted to the Bangon Marawi initiative, with their brassware, gongs and bells, woodcraft and textile products. Selected beneficiaries of the DTI’s Shared Service Facilities (SSF) program were also among the exhibitors.

The ubiquitous KAPEtirya offered choice local coffee blends from the regions, with a selection of native delicacies. There was also the usual leathercrafts workshop manned by the differently-abled workers of Handcrafted by Harl’s, while Baybayin experts rendered text in the traditional Tagalog script, and craft artists conducted brush calligraphy and mixed media art workshops.

Following the formal opening on Thursday, October 24, there was a daily program of activities focusing on business talks on Friday, October 25; arts and crafts activities on Saturday, October 26; and the performing arts on Sunday, October 27. A special focus of the daily program were the cultural presentations and live demonstrations of the arts, crafts, and practices that are being transmitted by cultural masters to the next generation through community managed learning programs of the Schools of Living Traditions (SLT) under the National Commission for Culture and the Arts (NCCA).

The 2019 NACF was organized by the Department of Trade and Industry – Bureau of Domestic Trade Promotion (DTI-BDTP) headed by Director Marievic M. Bonoan in cooperation with the Regional Operations Group, with support from the Office of Deputy Speaker Legarda.

For more information, contact numbers are (02) 7751-3223 and (02) 7791-3102, or email bdtp@dti.gov.ph. You may also follow DTI-BDTP on Facebook, Instagram, and Twitter.

PRRD Orders Inclusion of Hollow Blocks in the List of Products with Mandatory Certification – DTI Chief

The Cabinet deliberated on the impact of the recent series of earthquakes and the measures moving forward. According to Department of Trade and Industry (DTI) Secretary Ramon Lopez, among the concerns raised by President Rodrigo Duterte during the recent Cabinet meeting was the quality of hollow blocks, noting many small hollow block makers may not follow standard processes and specifications needed in production. Even as Sec. Lopez gave assurance on the standard compliance of steel and cement, among others, the President mandated the inclusion of hollow blocks in the list of products with mandatory certification as these are not yet included in the certification schemes implemented by DTI-Bureau of Philippine Standards.

Relatedly, the President ordered all local government units (LGUs) and contractors to ensure that all construction materials being used in any construction activity must pass quality standards. If they are found to be using inferior quality construction materials and not adhering to the specifications in the Building Code as well as in its structural design, their licenses as contractors may be revoked. Likewise, contractors of government projects that use uncertified materials will not be paid and their contracts will be terminated.

“The quality of any building structure depends not only on the product standards, but also on the quality of the construction job, particularly on adherence to approved structural design and the Building Code, required steel density, cement mixtures, among others,” Sec. Lopez said.

DTI ensures the standard compliance of products under the mandatory certification list such as cement, steel, nails and glass (although glass’ inclusion is currently under court injunction).

Under the Duterte administration, DTI has tightened products’ certification and procedures. Apart from the PS accreditation of the manufacturing plant, products are also tested at the plant. For imported steel or cement, these are tested at pre-shipment and post-shipment. Sampling size for testing was also increased by more than 15 times.

More products are now being studied to be included in the mandatory certification list such as plywood, roofing, and tiles.

PH Focuses on Innovation to Level Up Trade, Investment Partnership with Japan

TOKYO - The Department of Trade and Industry (DTI) highlighted the Philippine (PH) government’s new industrial policy that will push for innovation as it strengthens PH-Japan trade and investment relations. During the Nikkei BP Publications’ PH-Japan Business Investment Forum last 28 October 2019,DTI Undersecretary Rafaelita Aldaba discussed the country’s Inclusive Innovation Industrial Strategy (i3S) and the areas that both PH and Japan can collaborate under this policy.

“In the context of these trade and investment trends between the Philippines and Japan along with global developments such as the entry of new technologies, we feel the need to focus our efforts on innovation to address the opportunities and challenges arising from Industry 4.0 but also from increasing global competition, US-China trade war, and regional economic integration,” said Usec. Aldaba to over 600 members of the Japanese business community.

“i3S puts innovation at the heart of our industrial policies. Our goal is to grow globally competitive and innovative industries,” she added.

The Undersecretary underscored PH’s drive to develop its innovation and entrepreneurship ecosystem through strong collaboration between and among government, academe, and industry; utilize new technologies to make the country’s industries more competitive; reduce barriers in investments; and link manufacturing with agriculture and industry to expand PH’s global value chain participation.

“With Japan and the Philippines sharing complementing natural and human resources, technology and innovation will play a key role in helping us achieve the full potential of our economic partnership with Japan,” said Philippine Trade and Investment Center (PTIC) – Tokyo Commercial Counsellor Dita Angara-Mathay

At the sidelines of PH-Japan Business Investment Forum, eight investment meetings were arranged by PTIC – Tokyo, DTI’s field office in Japan with Undersecretary Aldaba and various Japanese firms to discuss business opportunities in PH. A total of USD 215 million-worth of investment projects to PH was reported following these meetings.

These investment intentions -- covering infrastructure development, railways, Electric Vehicle (EV) public transport systems, retail, manufacturing, logistics, warehousing, factory automation, construction, and real estate industries-- were presented and discussed with Undersecretary Aldaba and Commercial Counsellor Angara-Mathay.

The investment projects include the opening of PH’s first MOS Burger, Japan’s second largest burger chain, in March 2020; Assemblepoint Co., Ltd’s interest to develop smart 4WEV (4-wheel EV) using the latest IOT technologies; Japanese anime studio Satelight’s intention to outsource animation work in PH; as well as Kanepackage’s new factory facility.

Sumitomo Wiring also presented their two expansion projects in wire harness and components manufacturing. Marubeni Corporation likewise shared their joint venture project with Metro Pacific and LSI to build 30 primary care clinics, 10 cancer centers, and install five centralized laboratory testing hubs in strategic cities.

“There are many potential opportunities for the Philippines and Japan to deepen trade and investment partnership through innovation. I am delighted that the companies I met during this trip are making significant contributions in the areas of creating new industries, products and leapfrogging to Industry 4.0 by adopting smart manufacturing to transform our industries,” said Undersecretary Aldaba.

“We will try to reach out to more Japanese companies specializing in among others, electrified vehicles & parts, advanced manufacturing, factory automation, mobility solutions and smart cities. Philippine startups are also seen as future drivers of innovation. More learning missions to Japan will be organized to facilitate new learnings on and establish key connections with holders of new technologies like Artificial Intelligence (AI),” shared Commercial Counsellor Angara-Mathay.

DTI Chief and SB Corp Chairman Convenes SB Corp Board of Directors

Department of Trade and Industry (DTI) Secretary and Small Business Corporation (SB Corp) Chairman Ramon Lopez on September 13, 2019 convened the Corporation’s Directors and Officers to discuss SB Corp’s loan programs for micro, small and medium enterprises (MSMEs), especially the administration’s landmark program Pondo sa Pagbabago at Pag-asenso (P3). The P3 program has extended financing assistance to over 96,000 micro entrepreneurs as the government's flagship program that aims to topple loan sharks has widened its reach throughout the country since its inception in 2017. As of September 16, 2019, the SB Corp has released a total of P3.3 billion worth of loans to micro entrepreneurs through its 378 credit delivery partners that has reached rural and far-flung areas in the country. Under the P3 Program, a micro enterprise can borrow between P5,000 up to P200,000 depending on its business need and repayment capacity with no collateral requirement.  Interest rate and service fees, all in, do not exceed 2.5% monthly. The P3 Program serves as an alternative to the P30 billion “5-6” money lending industry that charges 20% nominal interest rate to MSMEs. Led by SB Corp Chairman and Trade Secretary Lopez (center, seated), in photo are (seated from L-R) SB Corp Director Merly Cruz, SB Corp President and CEO Ma. Luna Cacanando, DTI Undersecretary for Regional Operations Blesila Lantayona, and Department of Finance Representative Reina Cuarez. (Second row) Directors Joe Jay Doctora, Santiago Lim, Benel Lagua, Ferdinand Tolentino, and Manuel Bendigo.

DTI Chief: PH Gov’t to Pursue Reforms to Seize Opportunities from US-China Trade War

MALACAÑAN – According to Trade Secretary Ramon Lopez, the government needs to pursue more reforms to take advantage of opportunities resulting from the ongoing US-China trade war.

Sec. Lopez said that the Cabinet decided to adopt the recommendations of the Department of Trade and Industry (DTI) and the National Economic Development Authority (NEDA) during a joint presentation at the 41st Cabinet meeting last 4 September. The proposed solutions require a whole-of-government approach and involve several government agencies aside from DTI and NEDA.

PH is the second-best Asian export performer, with a merchandise export growth of 1.2% in the 2nd quarter of 2019. Among 11 Asian countries measured, PH, Vietnam, and Malaysia were the only countries with positive growth. Meanwhile, China, Chinese Taipei, Japan, Thailand, Singapore, Hong Kong, South Korea, and Indonesia reported contractions in merchandise exports.

“The Philippines is not as vulnerable as other countries, as exports only account for 15% of our GDP. But a prolonged trade war will eventually affect our export growth,” said Sec. Lopez.

Sec. Lopez added that the trade war is “an opportunity for the Philippines to attract more export-oriented manufacturing foreign direct investments. However, it is necessary to address key constraints in attracting investors to the country.”

Board of Investments-approved projects from the US and China are growing, albeit at different rates. US investments grew by 7.3% from PHP583 million in 2017 to PHP625 million in 2018. Meanwhile, Chinese investments grew by 8,364% from PHP576 million in 2017 to PHP48.74 billion in 2018.

To achieve this goal, DTI and NEDA proposed recommendations, ranging from short-term to long-term strategies, said the Secretary.

DTI is already implementing some of the short-term strategies, like eliminating investor uncertainty by supporting the passage of the Corporate Income Tax and Incentives Rationalization (CITIRA) Act, and to further liberalize the market through amending the Foreign Investment Act, Public Service Act, and Retail Trade Liberalization Act.

To improve ease of doing business, Sec. Lopez said the gov't is seeking to expedite web-based solutions by establishing a Central Business Portal and fully-operationalizing TradeNet, the government’s online platform for trading permits.

In tandem with these are recommendations to ensure national security and peace and order considering the rising investments from China and to assist local workers who will be displaced due to the trade war.

Lastly, Sec. Lopez said DTI will continue its “Last Touch” trade strategy, which aims to integrate PH in regional value chain production networks to enhance local value-added and attain the best access to major markets. The agency does this by deepening regional partnership through the Regional Comprehensive Economic Partnership (RCEP), while pursuing trade agreements with countries outside the Asia-Pacific region.

The Secretary likewise related long-term strategies like the collaboration of different government agencies to improve the country’s business climate. By developing state-of-the-art ports, airports and guaranteeing affordable and reliable energy throughout the country, investors will be encouraged to locate in emerging hubs outside of Metro Manila.

To improve the Philippine human capital, DTI and NEDA suggested to equip students and workers with the skills needed the Fourth Industrial Revolution (Industry 4.0). There should also be a government-led effort to promote innovation by building regional inclusive innovation centers (RIICs) in major cities and provinces. These RIICs will serve as a hub for startups and partnership projects among the industry, government, and academe.

DTI will also lead in linking domestic Micro, Small, and Medium Enterprises (MSMEs) with global businesses. The agency will also partner with other concerned agencies to strengthen national quality infrastructure for standards setting, testing and accreditation, and metrology to create more competitive products and industries.

Sec. Lopez said that these initiatives will not only shield the Philippines from the worst effects of the US-China trade war but will also improve the country’s attractiveness to foreign investors in other countries in general.

He added that attracting foreign investments is part of President Rodrigo Duterte’s promise of a more comfortable life for all Filipinos by providing decent job and livelihood opportunities.