PH Exports Grow by 5.1% in Q3 2019

MAKATI – Amidst the backdrop of global uncertainty stemming from the US-China trade war, Philippine exports of goods and services remained resilient, as it expanded by 5.1% year-on-year (yoy) to US$ 25.0 billion in the 3rd quarter (Q3) of 2019. This export growth was even an improvement compared to its second quarter (Q2) 2019 yoy rate of 4.3%.

"President Rodrigo Duterte's directive of being a friend to all nations allowed the Philippines to grow our exports despite the ongoing US-China trade war, which may have caused the decline in exports of other countries." said Trade Secretary Ramon Lopez.

Sec. Lopez also said that the Philippines is pushing for the conclusion of free trade agreements like the Regional Comprehensive Economic Partnership (RCEP) and the Philippine-Korea Free Trade Agreement in 2020 to expand market access for manufactured goods as well as agri-based products.

He shared that the Philippines is also working on a free trade agreement with the United Arab Emirates (UAE) and is exploring new export markets in consumer-rich Africa. The trade chief advised that export marketing should be in tandem with increasing the supply to meet the demand of foreign markets.

The Q3 export growth performance was strengthened by an 8.6% yoy increase in services exports, which totaled US$ 11.1 billion for the quarter. It was also backed by the 2.4% yoy uptick in the goods exports valued at US$ 13.9 billion.

Growth in services exports was boosted by a double-digit increase in exports of travel services due to bigger international tourist arrivals. Aside from travel services, Information Technology and Business Process Management (IT-BPM) also contributed to the services exports’ good showing.

On the other hand, exports of electronics products, bananas, and forestry and mineral products contributed to the moderate increase in the exports of goods.

Goods and services’ exports climbed 3.7% yoy to US$ 70.4 billion on a cumulative basis spanning January to September 2019. Services exports rose by 7.7% yoy to US$ 30.6 billion driven by travel services as well as technical, trade-related, and other business services. Meanwhile, goods exports increased by 0.7% yoy to US$ 39.8 billion primarily because of fruits and vegetables.

DTI PREPARES TO REVITALIZE MANUFACTURING AND EMBRACE INDUSTRY 4.0

MAKATI CITY - The DTI is in the thick of preparations to revitalize manufacturing & embrace Industry 4.0, as it surges forward with its flagship industrial strategy which it introduced in 2016, the Inclusive Innovation Industrial Strategy or i3S.

Speaking at the recently held Manufacturing Summit 2019, DTI Secretary Ramon M. Lopez provided a detailed picture of the Philippine manufacturing sector’s performance since 2013. While the country’s manufacturing sector exhibited a slowdown in growth in the recent quarters of this year due mostly to the US-China Trade War overall global slowdown in growth, and rising global protectionism, he pointed out that looking at the bigger picture, Philippine manufacturing has been growing at a respectable rate, with manufacturing share-to-GDP remaining almost unchanged for the past few years. “Despite (the slowdown), we are enjoying fast growth due to domestic demand,” Trade Secretary Lopez declared.

“The bright spot is, our investments continue to grow,” Secretary Lopez mentioned, as he noted that significant increases in approved manufacturing investments were expected to expand production capacities, address supply chains gaps, and improve Global Value Chain Participation. Data shows that IPA-approved investments in 2016-2018 were at Php 730B, 57.3% higher than during the period 2013-2015. Moreover, growth in Board of Investments – approved manufacturing investments increased 8-fold: from 82% in 2016, it grew to 95% in 2017 then zoomed to 327% in 2018.

In order to revitalize Philippine manufacturing towards a sustainable and inclusive industrial development, Secretary Lopez laid down plans to address growth constraints and leverage government support. These include: HR development to upskill workers and increase productivity; small value chain interventions to address raw materials shortage; incentivizing energy technologies to help bring down power cost; logistics interventions to cut down red tape and standardize shipping cost; and countering unfair trade practices including smuggling and substandard and counterfeit goods through mandatory product certification.

He also gave the audience a peek at industry 4.0 readiness initiatives that the DTI is planning to do to prepare firms, industries, and workers for the future. These include the SME academy as training facility for 4IR technologies to upskill and reskill our workforce to be 4IR-ready; positioning the Philippines as an AI Center of Excellence; Industry 4.0 roadmaps for specific sectors, and an Industry 4.0 pilot factory to serve as a demonstration facility. “We have to increase domestic capacity to support the growing demand of our economy. We should be prepared,” Sec Lopez reiterated. “There is a need to revitalize the manufacturing sector. This is the sector that can create more jobs, better income for our Filipinos.” Sec Lopez concluded.

Industry Policy Determines Trade Strategy – DTI Chief

MAKATI – Department of Trade and Industry (DTI) Secretary Ramon Lopez said that industry policy determines trade strategy and shared DTI’s unified approach to spurring trade and investments in DTI’s One Country, One Voice (OCOV) forum last 4 December.

“Essentially, the objective is to develop and strengthen our industries that will generate local employment. Our positions in trade negotiations have to be aligned with our plans in industry development,” Sec. Lopez said.

“What industry do we think will be strategic? What industry should be developed? Where do we have comparative advantage? Then we will put our minds, our support and our programs behind all these industries which we will be promoting” he added.

The trade chief also stressed the importance of trade agreements, since 93% of all exports go to countries with existing agreements with the Philippines.

“President Rodrigo Duterte’s independent foreign policy allowed the Philippines to pursue trade relations with both US and China and helped begin trade relations with non-traditional partners, like Russia and some countries in the Middle East. The Department of Trade and Industry is doing its part to assure that the Philippines is a friend to all,” said Secretary Lopez.

However, he added that trade relations should be fair to both countries: “We, the Philippines, are decent trading partners. We follow the rules and we expect partners to also treat us fairly. Otherwise, we will have no choice but to retaliate—but again still following the rules and procedures for negotiation.”

The Philippines has seven free trade agreements, two bilateral agreements, and 30 existing Joint Economic Cooperation agreements, and is benefiting from Generalized System of Preferences (GSPs) from 10 countries, namely US, EU, Australia, Belarus, Canada, Japan, Kazakhstan, New Zealand, Russia, and Turkey.

Ambassador Ron Sorini, Former Chief Negotiator for the Office of the US Trade Representative (USTR), said that for the US, the only serious candidate for free trade agreement negotiations is the Philippines. Amb. Sorini gave a talk on the topic “Identifying the Policy Environment for New Generation FTAs in the New Era of Globalization.”

Undersecretary Ceferino Rodolfo explained DTI’s “Last Touch Strategy” with the vision for the Philippines to become a strategic manufacturing and export base. This strategy aims to integrate the Philippines into the regional value chain production networks and provide the country with the greatest local value addition and best market access for its products.

To reap the maximum benefits from this strategy, Usec. Rodolfo added that the country must first ensure deep industrial capability in basic industries and have the widest network of supplying industries.

The OCOV forum informed stakeholders about the latest developments in the country’s international trade and investment engagements and revolved around three topics: Philippine development and trade policy; rising global protectionism; and forging ahead through strategic economic partnerships.

The forum’s speakers include Senators Imee Marcos and Koko Pimentel, Albay Congressman Joey Salceda, Former DTI Secretary Gregory Domingo, DTI Assistant Secretary Allan Gepty, Former USTR Director Kellie Meiman Hock, Solar Philippines President Leandro Leviste, Luen Thai Executive Vice President Sunny Tan, former National Competitiveness Council Co-chair Guillermo Luz, and Ambassador Antonio Basilio.

DTI Chief Eyes More Funds for MSMEs in Local, Int'l Trade Fairs

MANDALUYONG - Trade Secretary Ramon Lopez said that the Department of Trade and Industry (DTI) is awaiting the Senate's approval of additional budget to send more micro, small, and medium enterprises (MSMEs) to local and international trade fairs.

In his welcome remarks at the Kalakal CALABARZON Trade Fair and the National Capital Region's Metro Fiesta Trade Fair on 5 December, Sec. Lopez shared that MSMEs usually pay for their spaces at trade fairs, but if the agency's additional budget request will be approved, they would be able to provide said spaces for free.

"Market access is part of DTI's 7Ms of Successful Entrepreneurship and trade fairs give MSMEs access to a wider market for their products. We hope that exposure in these five-day fairs will be the beginning of their entry to the mainstream and export markets," said Sec. Lopez.

DTI holds several regional and national trade fairs and heads the country's participation in international trade fairs, like the China International Import Expo (CIIE). This year, Philippine exhibitors booked around USD 390 million from CIIE, and Sec. Lopez hopes that with more funds, more MSMEs can participate in CIIE and other trade fairs.

The trade chief, however, advised entrepreneurs to innovate continuously and work toward increasing their production capacity to meet future demands.

"Even if we're able to open market access to other countries, if MSMEs don't have enough products, they will still end up with nothing to sell," said Sec. Lopez.

For MSMEs looking for capital to increase production, he recommended DTI's Pondo sa Pagbabago at Pag-asenso (P3) Program, low-interest, no collateral business loan to combat "5-6" lenders. Entrepreneurs can go to any DTI Negosyo Center to know the nearest P3 conduit MFIs or cooperatives and loan amounts from PHP 5,000 to PHP 200,000. Those who wish to borrow larger amounts can go directly to the DTI-Small Business Corporation.

The Kalakal CALABARZON Trade Fair and Metro Fiesta will both run from December 4 to 8 at the Mega Trade Halls of SM Megamall. With 120 exhibitors from Metro Manila and 180 from Region 4A, shoppers can choose from a variety of products like processed food, wearables (footwear, bags, garments, and fashion accessories), and home and holiday decors.

Madame Honeylet Avanceña, a staunch supporter of MSME development and an entrepreneur herself, graced the opening of the trade expo. Also present were Senator Cynthia Villar, DTI Undersecretary Blesila Lantayona, DTI Assistant Secretary Demphna Du-Naga, DTI Regional Directors Malou Toledo, and Marcelina Alcantara, and Senator Koko Pimentel's Chief of Staff Jeffrey Yu.

DTI Targets Truckers, Forwarders to Adopt New Road Freight Transport Standards

The Department of Trade and Industry- Competitiveness Bureau (DTI-CB), in cooperation with Bureau of Philippine Standards (BPS) and DTI- Region 3 Office pushes the adoption of Philippine National Standard on Road Freight Transport (PNS 2135:2018) to fleet operators and hauling companies, in a bid to improve the competitiveness of logistics services sector in the country.

“An efficient and reliable logistics services plays a critical role in supporting the development of our industries. We are pleased to introduce our programs that can cater to the needs of trucking sector and enable us to learn and implement the best global practices and standards as a way to help improve the competitiveness of the country’s logistics services sector.” DTI Competitiveness Bureau Director Lilian Salonga said.

During the Forum on Standards and Other Concerns Affecting Logistics Sector held in Subic, Zambales, the DTI-CB in partnership with BPS presented the guidelines of the PNS 2135:2018 to the fleet operators and freight forwarders who are planning to adopt the said standard.

The PNS 2135:2018 provides indicators and targets on how to measure performance of road freight activities and initiatives to enhance road freight transport operations. It is hinged on four principles:

• Safety - Freedom from unacceptable risk of goods, humans, property, equipment and environment during road transport of commodities.
• Reliability - Ability to perform a required function under given conditions for a given time interval e.g. on time delivery, no damaged goods, preserved quality, no pilferage etc.
• Cost-efficiency - Ability to perform a required function at a minimum possible cost.
• Environmentally sustainable - Ability to perform a required function with minimal negative impact to the environment.

The PNS 2135:2018 was approved in December 2018 through the recommendation of the Technical Committee (BPS/TC 84: Logistics) chaired by DTI-CB and assisted by the DTI-BPS. The committee was composed of members from the truckers’ group, academe, consumer, professional association, research and development, and testing institutions.

The Forum was attended by stakeholders from the trucking and hauling sector, freight forwarding, government, and business community. Resource speakers include Ms. Ma. Theresa Ocampo, Sales and Marketing Superintendent of Subic Bay International Terminal Corp. (SBITC); Mr Samuel Bautista, President and Chief Learning Officer of the Academy of Developmental Logistics Inc., the first organization to adopt the PNS 2135:2018, and Mr. Michael Philip Lazaro, Assistant General Manager of the Subic Bay Metropolitan Authority (SBMA).

The Philippine National Standards on Road Freight Transport (PNS 2135:2018) is one of the key initiatives outlined in the 10 Commitment of Philippine Logistics Services Sector that underscored the government and private sector’s role in advancing a globally competitive logistics sector.

DTI TO HOLD THE 4TH ANNUAL MANUFACTURING SUMMIT

MAKATI CITY – Continuing the effort to take the country’s manufacturing sector to greater heights and new frontiers, the Department of Trade and Industry (DTI), in partnership with the Federation of Philippine Industries (FPI) will hold the Manufacturing Summit 2019 on Tuesday, 3 December 2019, at The Peninsula Manila, corner Ayala and Makati Avenue, Makati City.

Now on its fourth year, the summit will once again gather stakeholders from the government, academe, industry, and various development partners to discuss pressing issues affecting the Philippine manufacturing landscape.

Amid the economic volatility, the Philippines has been growing steadily during the current decade, posting an annual average of 6.3%. This is a remarkable improvement from the 4.5% average during the 2000s. In 2018, we grew at 6.2%, one of the highest in Southeast and East Asia and exceeded only slightly by China and Vietnam.

While the country’s long-term figures looked rosy, the manufacturing industry this year only grew by 2.4 percent in the third quarter of 2019, slower compared to the 3.8 percent growth it posted in the same period last year.

The top industry contributory drivers to growth this year include the Chemical Sector with 9.7% growth, Food with 4.4%, Basic Metals with 17.2%, machinery equipment with 14.8%, and electrical machinery with 14.4%.

On the other hand, some sectors contracted, pulling down the growth of the Industry. Topping the list of decliners are Petroleum and Other Fuel Products, 28.3%; Radio, Television and Communication Equipment and Apparatus, 4.3%; Furniture and Fixtures, 11.3%; and Transport Equipment, 5.7%.

The lower growth figures this year pose as a challenge to the manufacturing sector to regroup and look at how to strengthen its core and keep its long-term growth trajectory on an upward path.

With this year’s theme being, “Preparing Philippine Manufacturing for the Future of Production,” the Summit will take stock of the performance of the manufacturing industry, highlight the changes in the domestic economy and global market; discuss the future of manufacturing and agribusiness under Industry 4.0; and consider future skills and human resource development for future production.

The Manufacturing Summit is held as part of the implementation of the government’s Inclusive Innovation Industrial Strategy (i3S). The Summit proceedings will be live-streamed via the official DTI Facebook page accessible at https://www.facebook.com/DTI.Philippines. The program details are available at https://mfgsummit2019.weebly.com/program.html. For further inquiries, you may email MFGSummit2019@dti.gov.ph.

DTI and Sakeholders Set to Discuss Trade Issues and Strategies Under the Trade War

25 November 2019, Manila – The Department of Trade and Industry will hold an international trade forum to discuss international trade policy issues, including the ongoing trade frictions between the world’s economic heavy weights. The forum is part of the DTI’s One Country, One Voice (OCOV) Stakeholder Consultation mechanism on trade policy formulation.

In particular, the forum aims to foster dialogue on how the Philippines can capitalize on the opportunities presented by the trade war and how to address the challenges that hamper Philippine industries from taking full advantage of these opportunities. The forum also aims to tackle how the DTI could enhance its international trade policy strategy, leverage its participation in regional and global value chains, and maximize trade policy tools in light of the rising global protectionism.

Economic simulations of the trade war’s impact on the Philippine economy illustrate minimal negative effects on exports. “While the Philippines is not as vulnerable as other economies, a prolonged trade war could eventually impact Philippine exports” said DTI Secretary Ramon M. Lopez.

Both the United States and China are major trading partners of the Philippines. The country currently enjoys preferential market access to the United States through the GSP scheme and also has an FTA with China under ASEAN. Secretary Lopez added that apart from these existing mechanisms, “enhanced engagement with other major trading partners as well as with non-traditional partners are also being pursued to help strengthen and diversify Philippine export markets”.

The forum, which will be held in December in Manila, will bring together international experts on trade policy, business leaders, policymakers, industry representatives, and government officials, among others.

Undersecretary Ceferino Rodolfo highlighted that “the One Country, One Voice consultations is an important pillar in our unified industry and trade strategy that helps ensure that our trade negotiating position remains rational, responsive to, and grounded on the needs of our stakeholders”. Launched in 2011, OCOV ensures transparency and accountability as government undertakes the process of engaging in dialogues, building mutual trust, and arriving at rational, sound and balanced trade policies in pursuit of national development.

DTI brings only the best from the Cordilleras for the 24th IMPAKABSAT Regional Trade Fair

The Department of Trade and Industry-Cordillera Administrative Region (DTI-CAR), formally launches the IMPAKABSAT Regional Trade Fair 2019, last November 15, at Festival Mall, Alabang, Muntinlupa City, which saw the gathering of around 80 micro, small, and medium enterprises (MSMEs) from the region’s provinces.

Regional Director for CAR, Myrna Pablo, accentuated through the opening program, IMPAKABSAT, which stands for the region’s six provinces, namely, Ifugao, Mountain Province, Abra, Kalinga, Apayao, Benguet, and the city of Baguio and is then completed with the Ilocano word “kabsat” which means brother or sister, describes the whole of the Cordilleras. This is a manifestation of the rich and vibrant culture in the region and how the products of the participating MSMEs reflect such.

One Town One Product (OTOP) Next Gen Program Manager and Regional Operations Group Assistant Secretary Demphna Du-Naga encouraged the MSMEs to continuously innovate their products through availing OTOP assistance on product development, design, packaging, branding, production capability, among others, transitioning them to be more market-oriented and innovation-driven.

“Ang mandatos ng ating Presidente ay tulungan ang lahat ng mga negosyante sa bansa. Sa pamamagitan ng OTOP Next Gen, ang simpleng produkto ninyo ay sasailalim sa product development at innovation tulad ng packaging at branding. Mas magiging marketable ang produkto, mas mabenta sa merkado.” ASec. Naga said during the opening ceremony.

The annual IMPAKABSAT aims to develop and strengthen small and medium enterprises from the region, through the promotion of its indigenous crafts, skills, resources and investment potentials. Products featured at the trade fair vary from organic and natural products, fresh & processed food, wearables and homestyles, coffee, bamboocraft, woodcraft, and furniture & furnishings.

This year’s edition of the trade fair puts the Comprehensive Agrarian Reform Program (CARP) and OTOP Next Gen Program beneficiaries on the spotlight. Likewise, CAR being the coffee capital in the Philippines, visitors and shoppers during the fair were served the best coffee in the region through KAPEtirya.

IMPAKBSAT 2019 will run from November 15-24, 2019, with regular exhibit hours, 10:00 a.m.-9:00 p.m.

DTI sets Forum on Standards in Logistics Services in Subic and Cebu: Truckers and haulers urged to adopt the PH National Standard on Road Freight Transport

The Department of Trade and Industry- Competitiveness Bureau (DTI-CB), in cooperation with Bureau of Philippine Standards (BPS) and DTI- Regional Offices 3 and 7, will conduct a Forum on Standards and other concerns in logistics services sector in Subic, Zambales (18 November) and Cebu City (22 November) with the aim to promote the adoption of Philippine National Standard on Road Freight Transport (PNS 2135:2018) to fleet operators and hauling companies in the country.

“We organized this series of fora to educate the trucking sector about the benefits of implementing the PNS 2135:2018 to their respective companies. We encourage our truckers and haulers to adopt the best global practices and contribute to improving the competitiveness of the Philippine logistics services sector. This offers them an advantage over other companies in providing world-class quality logistics services to our industries.” Competitiveness Bureau Director Lilian Salonga said.

The PNS 2135:2018 was approved in December 2018 through the recommendation of the Technical Committee (BPS/TC 84: Logistics) chaired by DTI-CB and assisted by the DTI-BPS. The committee was composed of members from the truckers’ group, academe, consumer, professional association, research and development, and testing institutions.

Last October, DTI-CB held its first Forum in Tagaytay City, with the BPS presenting the guidelines of the PNS 2135:2018 to the fleet operators and freight forwarders who are planning to adopt the said standard.

“We identified these locations (Region 3, Region 4A, Region 7) for our forum considering its strategic importance to logistics and industries. Being the home to regional gateways and fast growing in terms of economic performance, it is only necessary to advance the development of the logistics services sector in these areas.” Director Salonga added.

Aside from the presentation of PNS 2135:2018 by BPS, the Competitiveness Bureau will share updates on government programs and policies for the development of a globally-competitive logistics services sector, while the Subic Metropolitan Authority (SBMA) and Cebu Ports Authority (CPA) were invited to present for Subic and Cebu City fora, respectively.

For interested parties, you may contact the Supply Chain and Logistics Management Division Program Officer Ms Maria Dalisay Alba thru phone (0632.8899.6247) or email: MariaDalisayAlba@dt.gov.ph. You may also visit DTI-Competitiveness Bureau Official Facebook page for event updates.

DTI Eyes Stronger Collaboration with Cooperatives to Boost Programs for MSME Development

s
MANDALUYONG – Department of Trade and Industry (DTI) Secretary Ramon Lopez underscored the vital role of cooperatives in widening the reach of government programs for micro, small, and medium enterprises (MSMEs), especially at the countryside.

“Cooperatives make a significant economic difference in the lives of its members while contributing to their overall well-being and their communities. They have been our ally in empowering our MSMEs, allowing DTI programs to be accessible in their respective areas such as our microfinance loans and shared service facilities,” said Sec. Lopez.

According to the trade chief, DTI and the Cooperative Development Authority (CDA) shall continue to harmonize policies as well as coordinate programs and activities that will help the cooperatives in strengthening and maximizing its role in empowering those at the grassroots level and sharing the prosperity to all Filipinos nationwide.

During a policy dialogue organized by the CDA, USAID, and United States Overseas Cooperative Development Council (OCDC) on 30 July 2019, Sec. Lopez shared DTI programs where cooperatives play an important role.

Cooperatives partner with DTI’s Small Business (SB) Corporation and become credit delivery partners for the Pondo sa Pagbabago at Pag-asenso (P3) microfinance loan program of the government. Members of cooperatives likewise get access of this low interest loan to set up their own businesses.

DTI also award shared service facilities (SSF) to cooperatives and associations to improve MSME competitiveness by providing them with machinery, equipment, tools, systems, skills and knowledge under a shared system.

DTI also eyes cooperatives to become a partner in its Negosyo Serbisyo sa Barangay, where MSME development programs are extended to the barangay and community levels.

DTI has helped many MSMEs and cooperatives through its programs, like when the City of Gapan Footwear Multi-purpose Cooperative in Nueva Ecija helped Rolando Pascual establish his own brand, the Bagong Likha Footwear, through the SSF awarded by DTI. Likewise, the SSF awarded to Santo Niño de Parish Multi-purpose Cooperative in Leyte allowed the local community to create their pandan and bariw products. Through the machineries and the mentoring as well as training programs in product development and marketing provided by DTI, the products are now being exported to the United States and Indonesia.

Residents of Marawi who were affected by the siege were also awarded with SSFs through various cooperatives such as Maranao Collectibles Services Cooperative that received langkit weaving equipment and Lower Bangon Marawi Consumer Cooperative that received palapa production machineries. The equipment aims to bring back the vibrant trading in Marawi and uplift the lives of many Maranaos.

Cebu People’s Multi-purpose Cooperative in Cebu City is one of SB Corporation’s credit delivery partners for the P3 program. The cooperative has assisted 1,076 MSMEs in their city, including market and carenderia vendors.

Meanwhile, key findings in the study undertaken by OCDC revealed that:

1. Coop members reported enjoying a better economic position, and are more likely not to be poor and more likely to be lower middle or better.

2. Coop members say their cooperatives are the reason why they have a better economic position. Members also report a sense of financial security and overall well-being. In addition, 74% of non-members state that cooperative activity positively affects the overall economic development of the community.

“Stronger collaboration between government, the cooperatives, and the private sector will boost the programs for our MSMEs. This will allow is to spread the delivery of basic services to the grassroots level even as we implement our poverty alleviation and inclusive growth programs,” Sec. Lopez concluded.

Innovative Startup Act to provide Incentives for Startups and Enablers

MAKATI – The Department of Trade and Industry (DTI) is one of the lead agencies in implementing the recently signed Republic Act 11337 or the Innovative Startup Act. The new law will help startups and startup enablers by providing incentives like travel grants, access to a Startup Venture Fund, and assistance in getting visas and business permits.

“The Innovative Startup Act is part of President Rodrigo Duterte’s vision of a comfortable life for all Filipinos. DTI commits to implement the law to foster an environment conducive to smarter entrepreneurs,” said Trade Secretary Ramon Lopez.

Aside from the DTI, the Department of Science and Technology (DOST) and the Department of Information and Communications Technology (DICT) are the host agencies to implement the Philippine Startup Development Program, composed of programs, benefits and incentives for the startup community.

"There is so much entrepreneurial potential, talent, motivation, and optimism of our young population. With the current strong momentum for collaboration between and among government, academe, and industry and the comprehensive fiscal and non-fiscal support of RA 11337, we will be able to grow and develop our startup ecosystem and catch up with our neighbors especially in creating billion-dollar startups,” said DTI Undersecretary for Competitiveness and Innovation Rafaelita Aldaba.

To avail of these incentives, startups and startup enablers have to pass an application and selection process to be determined in the Implementing Rules and Regulations (IRR). The first meeting to craft the IRR was held on 22 July at the University of the Philippines Diliman. Present at the meeting were  DTI Undersecretary Rafaelita Aldaba, DOST Undersecretary Rowena Guevara and DICT Dir. Emmy Lou Delfin, as well as other officials and representatives from each agency.

Business registration assistance

Selected startups and enablers will get subsidies for business registration fees. The host agencies will also endorse their applications to be prioritized or expedited. The three agencies will also provide subsidies for use of office spaces, facilities, equipment, services, and repurposed government spaces.

Travel assistance, startup visas

For startups and enablers participating in local and international events, DTI, DOST, and DICT can help expedite travel documents and provide subsidies for airfare, baggage, per diem allowance, and other travel expenses.

The Department of Foreign Affairs (DFA) will create startup visas for owners, employees, and investors valid for five years and renewed with three-year validity. Startup visa holders will be exempted from getting an Alien Employment Permit issued by the Department of Labor and Employment (DOLE)

Meanwhile, Filipino startup executives will be eligible to apply for an APEC Business Travel Card which streamlines the entry process for APEC-member countries for short business trips.

Venture assistance

The host agencies will set up a startup grant fund to provide grants-in-aid for research and development, training, and expansion plans. DTI and the National Development Company (NDC) will also create a Startup Venture Fund to invest in startups based in the Philippines.

Startup Philippines website, education programs

The DICT will launch a Startup Philippines website, where beneficiaries can inquire about the progress of all incentives awarded under the law. The website will also contain a database of startups and enablers as well as relevant statistics, reports, and studies.

Under the new law, the Department of Education (DepEd), Commission on Higher Education (CHED), and the Technical Education and Skills Development Authority (TESDA) are also directed to integrate entrepreneurship in their curricula and provide grants and incentives to academic institutions.

SEC. LOPEZ SEEKS MORE PARTNERS IN DELIVERING MICROFINANCE LOANS TO MSMES

Department of Trade and Industry (DTI) Secretary Ramon Lopez (8th from L) called on the private sector to partner with the government in ensuring micro, small, and medium enterprises (MSMEs) across the country will have easy access to the Pondo sa Pagbabago at Pag-asenso (P3), the low-cost, no-collateral microfinance loan of the government initiated by President Rodrigo Duterte. During the P3 Credit Delivery Partner Forum on 25 July 2019, the trade chief encouraged more partnerships with rural banks and cooperatives in spreading the reach of the P3 program, which has changed the lives of many aspiring and thriving entrepreneurs in the country and assisted more than 89,000 MSMEs. Meanwhile, Senator Aquilino Pimentel III (7th from L) expressed his support for the program and recognized the need for its longevity. He committed to work on institutionalizing the P3 program and to be a partner of DTI in driving entrepreneurship and making microfinance loans accessible to Filipinos, especially those at the countryside. In the photo are SB Corporation President Luna Cacanando (5th from L), DTI Undersecretary Zenaida Maglaya (6th from R), and credit delivery partners from FICO Bank, St. Francis Multi-purpose Cooperative, Bank of Florida, GM Bank of Luzon, The New Rural Bank of San Leonardo, MVSM Rural Bank, Yakap at Halik Multi-purpose Cooperative, Cebu People’s Cooperative, Silangan Multi-purpose Cooperative, and Cantilan Bank, Inc.

SB Corp to introduce 10 Credit Delivery Partners for P3 program

The Small Business Corporation will introduce 10 Credit Delivery Partners (CDPs) from Luzon to Mindanao to deliver fast and efficiently the Pondo sa Pagbabago at Pag-asenso (P3) program to micro entrepreneurs.

Department of Trade and Industry (DTI) Secretary Ramon Lopez said the 10 CDPs will make the delivery of the P3 program faster to micro entrepreneurs in rural areas to help spur economic activity in the countryside and provide employment to Filipinos.

“President Rodrigo Duterte’s administration always seeks for ways to provide service and assistance to our micro entrepreneurs in the easiest and most accessible way as possible, especially to those from the countryside,” said Sec. Lopez.

SB Corp., the micro financing arm of the Department of Trade and Industry, through the P3 program has extended financing assistance to over 89,000 micro entrepreneurs as the government's flagship program that aims to topple loan sharks has widen its reach throughout the country since its inception in 2017.

As of July 23, 2019, the SB Corp has released a total of P2.9 billion worth of loans to micro entrepreneurs through its 353 credit delivery partners that has reached rural and far-flung areas in the country.

SB Corp President and CEO Ma. Luna Cacanando welcomed the inclusion of the 10 Credit Delivery Partners, which she acknowledged would help in distributing the much-needed funds by micro entrepreneurs.

The Pondo sa Pagbabago at Pag-asenso (P3) program is a P1 billion loan financing program intended to give micro enterprises better access to finance, providing them an alternative to the informal or 5-6 scheme of lending.

Among the CDPs that will be introduced are rural banks and cooperatives: FICO Bank from Cauayan City, Isabela; GM Bank of Luzon from Cabanatuan City, Isabela; The New Rural Bank of San Leonardo from San Leonardo, Nueva Ecija; Bank of Florida from San Fernando, Pampanga; St. Francis Multi-purpose Cooperative from Malolos, Bulacan; MVSM Rural Bank from Marikina City; Cebu People’s Cooperative from Cebu City; Silangan Multi-purpose Cooperative from Davao City; Cantilan Bank from Surigao del Sur; and Yakap at Halik Multi-purpose Cooperative from Quezon Province.

Secretary Lopez reiterated that with the loan program, micro enterprises may find relief from overly expensive borrowings and afford cost-efficient and affordable form of loan that will help expand their businesses.

Meanwhile, the P3 program also has reached out to Maranao entrepreneurs through the Bangon Marawi initiative and has released P7.5 million to 457 Maranao borrowers. Likewise, soldiers and policemen who were either wounded or killed in action during the Marawi siege were also provided assistance with a total of P27.71 million released to 335 soldiers and policemen, and their families.

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.

8th PHILIPPINES – FRANCE JOINT ECONOMIC COMMISSION (JEC) MEETING

28 June 2019 – MANILA, The Philippines – The Philippines and France vowed to closely collaborate on sectors of mutual interest thru promotion/more frequent business visits, technical capacity building exchanges in emerging industries, and promote greater trade and investments given the strong complementation of the two countries.

Capacity building programs for animation services, green design, content development, satellite development, and data sharing were among those identified during the said JEC, a high level economic dialogue platform which enables the Philippines to engage partner countries to discuss areas for trade, investment, business cooperation, and other related matters to advance bilateral economic ties.

Department of Trade and Industry (DTI) Secretary Ramon M. Lopez who together with French Secretary of State for Europe and Foreign Affairs Jean Baptiste Lemoyne, opened the 8th Philippines-France Joint Economic Commission (JEC) also exhorted business leaders from both sides to engage their counterparts more frequently by exchanging business missions and participating in each other’s startup events and key trade expositions such as the DTI-CITEM organized Manila FAME and the International Food Exhibition.

In his address, Secretary Lopez encouraged France to “closely look into the vast opportunities for growth in trade and investment between our countries.”

Secretary Lopez cited the significant increase in trade and investment figures posted by both countries in 2018, but challenged the French to further engage their counterparts from the various Philippine business sectors considering the strong macro-economic performance of the country, and the opportunities already being aggressively explored by other investors from Asia-Pacific, the Americas, Middle East and the rest of Europe.

During the JEC, the Philippines also conveyed its interest to pursue cooperation with France in the areas of renewable energy, e-commerce, collaborative research and development, shipbuilding and buoy-making, auto-electronics, IC design, and electronics design with space legacy, including accessing technical expertise from France.

Possible cooperation ventures between Philippine and French entities were also identified, including a Memorandum of Understanding between ASCIEL Alliance Electronique and the Semiconductor and Electronics Industries of the Philippines, Inc. Foundation (SEIPI). Updates were also provided in the implementation of previously-signed agreements in the maritime industry, aerospace, infrastructure and transportation including feasibility study projects on cable cars and an international food terminal.

In 2018, total trade between the Philippines and France grew to USD2.64 billion, up by 52.43% from its 2017 level of USD1.73 billion.

Philippine exports to France in particular was up by 38.48%, from USD807.63 million in 2017 to USD1.118 billion in 2018.  Top items included vessels of transport, electronics products, and parts of airplanes. Philippine exports to France represents about 10% of total products sent to the EU.

French exports to the Philippines on the other hand was up by 64.63%, from USD924.81 in 2017 to USD1.522 billion in 2019.  The Philippines purchased airplanes and its parts, and medicaments from France in 2018.

The total trade figure placed France as the 15th largest country-trading partner of the Philippines, behind only two other EU countries - - Germany and the Netherlands.  France was also the country’s 16th largest country-source of products, and the Philippines’ 12th largest export destination.

The Joint Economic Commission meeting between the Philippines and France was co-chaired by DTI Undersecretary and BOI Managing Head Ceferino Rodolfo, and French Ministry of Economy and Finance Deputy Director for Bilateral Affairs Christophe Bories.

It was participated in by representatives from the Philippine and French governments, Philippine business leaders and a delegation from the Mouvement des Enterprises de France - Internationale or MEDEF International, the French business confederation group that is considered the “most representative organisation of the French private sector at an international level.”

DTI-Sydney Promotes Award Winning Chocolates, Craft Spirits

The Department of Trade and Industry (DTI) through the Philippine Trade and Investment Centre (PTIC) in Sydney featured two award-winning products from the Philippines at the Independence Day celebrations in Australia on 10 June 2019.

Guests were able to sample Malagos Chocolates, the award winning Philippine chocolates from Davao. The renowned chocolates were made from tree-to-bar -- a process by which the sowing, tending, harvesting, fermenting, drying, sorting, roasting, and producing the chocolate is done right on the company’s  farm --  giving the products a more distinctive and pronounced taste.

Due to the distinctive quality of its product, Malagos Chocolates has garnered prestigious international awards putting the Philippines, specifically Davao, in the chocolate map of the world.

Meanwhile, Manille Liqueur de Calamansi and Paradise Mango Rum were also served during the celebrations in Sydney and Perth.

Manille Liqueur de Calamansi is a vodka-based drink that uses the essence of the zesty Calamansi or Philippine lime rind sourced from the Mangyan farmers in Mindoro province in the Philippines.  Another product, Paradise Mango Rum, is a natural fruit-based liqueur made from world-renowned Philippine mangoes and premium aged rum. The product has garnered numerous awards overseas and is a testament to the capability of the Philippines to produce global brands recognized and appreciated by international connoisseurs.

“We want Australians to know we have good, quality products in the Philippines that are recognized and appreciated internationally. Our goal is to make these products available in supermarket shelves, boutique stores, duty free shops, hotels, bars and specialty stores in Australia soon,” said Philippines Special Trade Representative to Australia Alma Argayoso.

“Not only are the products good, but by supporting and patronizing these brands, Australians will also be able to support local farmers in the Philippines who adhere to ethical and sustainable farming and strict quality standards,” she added.

Japanese Investments to Fuel Manufacturing Resurgence – DTI

TOKYO – Department of Trade and Industry (DTI) Secretary Ramon Lopez said that the recently-signed Japanese investments will fuel the Philippines’ (PH) manufacturing resurgence. He added that of 26 agreements, 19 are letters of intent (LOI) that have a high rate of materialization and are in manufacturing cars, wire harness, printers, medical devices, and electronics.

“These investments will help expand our manufacturing base and increase our high-value exports. More importantly, these companies will employ thousands of Filipinos and help them better the quality of their lives,” said Sec. Lopez.

DTI Special Trade Representative (STR) in Tokyo Dita Angara-Mathay said that with these investments, the Philippines will become an emerging manufacturing hub for printers, medical devices, and wire harnessing.

The signed agreements include an LOI from Canon to expand its existing investments in the Philippines for monochrome laser printers including service parts, packaging materials, and optional products. For medical devices, Terumo Corporation signed an LOI to expand investments in manufacturing, sales and export of medical devices (i.e. disposable syringes, needles, safety-needles, IV catheters, and urinary drainage bags).

Furukawa Electric Corporation and Sumitomo Electric Industries likewise signed LOIs to expand their wire harness facilities in PH. Moreover, Furukawa will expand production capacity of wholly-owned centers for wire harnesses. Meanwhile, Sumitomo will build a new facility for wiring harness and related products for export to Japan and North America.

To train future manufacturing managers, Japanese companies Tescom Denki and Outsourcing Inc. signed an MOU with Filipino electronic and semiconductor subcontractor company EMS Group to send at least 3,000 skilled workers to Japan for training and work experience. These workers include engineers, IT professionals, and others. STR Angara-Mathay said that this program will fill the gap of manufacturing managers in PH.

DTI also sought out new investments through a business matching session with a diverse group of businesses, including small and medium enterprises (SMEs). The Board of Investments Director Angie Cayas and DTI-Bureau of Export Trade Promotions (DTI-BETP) Assistant Director Anthony Rivera gave their respective presentations on opportunities in manufacturing and services sectors.

DTI reported that the session generated 120 formal meetings, 56 informal meetings, one potential MOU, and USD17.45M in estimated business leads and potential sales to be realized in 1-3 years. Some Japanese companies likewise expressed interest for collaboration on fintech and AI.

Beyond manufacturing, Japanese firms also committed to invest in public and mass transport, defense, energy, power distribution, financing food and retail.

DTI 4-A Establishes Three Fabrication Labs as a Spark Plug for Innovation

To remain competitive in business, innovation is the key. One small advancement can already have a major effect in one’s business to increase revenue and productivity. Thus, the Department of Trade and Industry Region 4-A realized the significance of innovation in propelling the micro, small, and medium enterprises forward.

To ignite innovation ecosystem in the CALABARZON region, the DTI 4-A established three Fabrication Laboratories (Fab Labs) last 2018:

1.                        Innovation, Design, Engineering, and Art (IDEA) Fab Lab

Cooperator: Antipolo Institute of Technology

Location: Sitio Cabading, Antipolo City, Rizal

Established: 27 November 2018

The IDEA Fab Lab, the first of its kind Fab Lab in CALABARZON with PhP 11.041 million worth of sophisticated equipment, includes the Building Information Modelling (BIM) software -  an intelligent 3D model-based process. Not only a prototyping platform for innovation and invention of local manufacturers and designs, this will also serve the construction industry, specifically the architecture, engineering, and construction (AEC) professionals by providing  the insight and tools to plan, design, construct, and manage buildings and infrastructure more efficiently.

  

2.                        Start-up Innovations and Business Opportunities Linkages (SIBOL) Labs

Cooperator: University of the Philippines - Los Baños

Location: University of the Philippines Center for Technology Transfer Entrepreneurship (UPLB CTTE) Building, Los Baños, Laguna

Established: 17 December  2018

The SIBOL Labs is one of the major components of the Technology Business Incubation (TBI) program of the UPLB-CTTE. Business incubators support budding entrepreneurs through diversified  and personalized incubation  services such as business mentoring and access to technical trainingsessions, research and development facilities, product development, market linkage, and finance. Establishing the Fab Lab can help MSMEs significantly in terms of product development by allowing them to work closely with both the academic and indusry experts  for rapid prototyping as well as customer-centered product design. Such facility is relevant in the establishment of the innnovation ecosystem in Region IV-A to support robust technology-driven and globally-competitive MSMEs.

3.                        Learning, Innovation, Knowledge-Honing, and Art (LIKHA) Fab Lab

Cooperator: Batangas State University

Location: Brgy. Alangilan, Batangas City, Batangas

Established: 27 December  2018

The LIKHA Fab Lab is a Shared Service Facility where business enterprises engaged in top industries in the region such as furniture or furniture-related processes and electronics, can converge with modelers/designers to create and develop models/designs, and make prototypes for mass production. It is a digital fabrication that enables collaboration and promotes transparency among the designers and modelers aided by computer-controlled machines. Stored digital design using the sophisticated technology provides an array of services to help the whole furniture design and manufacturing team for detailed designs, analysis, documentation, and fabrication.

SSF is a program adopted to achieve the goal of the National Industry Cluster Capacity Enhancement Project (NICCEP), which is to set up common production centers for the micro, small, and medium Enterprises (MSMEs) in priority industry clusters to gain access to better technology and more sophisticated equipment to increase their competitiveness, consequently affecting their contribution to the national economy.

With the establishment of these Fab Labs, equipment and resources are made available to MSMEs of CALABARZON to ensure that the facility can help increase their productivity and lessen cost of prototypingand research and development of local products. These Fab Labs will also help inspire entrepreneurs to turn their ideas into new products and prototypes.

DTI 4-A encourages MSMEs, students, designers, artists, and other clients to visit these Fab Labs for the design, invention, and innovation of existing and new products.