DTI - Sydney Partners with Expand Franchising and other Organizations to Promote Franchising in Australia

The Department of Trade and Industry (DTI) through the Philippine Trade and Investment Center (PTIC) in Sydney, Australia, partnered with Expand Franchising and other organizations in organizing franchising seminars and small group business consultations to promote franchising in Australia.

The first franchising seminar was conducted on February 19, 2019 in Campbeltown in partnership with Narra Co-operative, Inc., a membership co-op comprised of Filipino-Australians involved in community events.

On February 20, 2019, PTIC-Sydney hosted a coffee talk on franchising and a series of small group business consultations with Expand Franchising.

A seminar on “Franchising Trends and Opportunities” was likewise hosted by the Australia Philippines Business Council (APBC) on February 21, 2019.

Ms. Alma Argayoso, the Philippine Consul Commercial to Australia said the franchising seminars and business consultations are initiatives under the Trabaho, Negosyo, Kabuhyan (TNK) program that the DTI overseas office in Sydney supports.  

The TNK is a project of the DTI in partnership with other government agencies, private sector, academe and civil society organizations, to promote entrepreneurship and generate employment.

“We aim to help our Kababayans or their families back home invest in viable economic activities in the Philippines by providing them with information and resources to help them succeed as entrepreneurs”, Argayoso said.

“Franchising is one of the business opportunities that we promote because it’s an important tool for economic development that creates thousands of enterprises and generates millions of jobs,” Argayoso added.

Mr. Ignacio Gimenez of Expand Franchising brought to Australia its partner in the Philippines, RK Franchise Consultancy,Inc., represented by its founder, Mr. Rudolf Kotik. Mr. Kotik has over 40 years in the franchising business and developed over 800 brands in the Philippines and abroad.

Mr. Kotik presented franchising trends and opportunities and the benefits, procedures and steps to becoming a franchisee or a franchisor for those who would like to scale up and open their business for franchising.

“We believe owning a franchise is a good investment. It has less risk than an independent start-up with an average ROI of two years and the opportunity to grow the business more rapidly than an independent business,” Kotik said.

“It’s the biggest and most successful business system in the world and the Philippines is in the top ten with the most number of franchise units globally. Among the latest trends are innovative food and beverage outlets, self-service laundromats, education and tutorial services, specialized beauty services, and animal care services,” Kotik added.

While most of the interested parties were overseas or former Filipinos, looking for a franchise to set-up in the Philippines or bring to Australia, a number of foreigners also expressed interest in the co-ownership arrangements where several investors can buy 80% share in the franchise while 20% remains with the franchisor. The franchisor will run the business and provide monthly financial reports and quarterly dividends. This is a win-win arrangement where a franchisor uses OPM or Other People’s Money to grow the business, while a franchisee invests in a business without having to worry about the day-to-day operations.

 

In photo: Mr. Rudolf Kotik presents franchising trends and opportunities to APBC

      members and guests.

In photo: PTIC-Sydney hosts a coffee talk on franchising at the Descano Café.

PH, Malaysia to pursue cooperation on Halal, barter trade, and strengthening BIMP-EAGA

MAKATI – Department of Trade and Industry (DTI) Secretary Ramon Lopez pushed for greater bilateral cooperation on the area of barter trade between the Philippines (PH) and Malaysia (MY) during his dialogue with Minister of International Trade and Industry Datuk Ignatius Darell Leiking on 8 March 2019. The trade chief highlighted the revival of barter trade system in Mindanao will support the promotion of Halal industry from both countries. The ministers also agreed to cooperate in strengthening the Brunei Darussalam, Indonesia, Malaysia, Philippines East ASEAN Growth Areas (BIMP-EAGA).

“We should really make these areas of cooperation work as it will create and bring more economic activities to both Filipinos and Malaysians. The barter trade as well as the BIMP-EAGA will mean a lot to our people,” said Sec. Lopez.

The trade chief conveyed the ongoing progress in the revival of barter trade system in Basilan, Sulu, and Tawi-Tawi areas (BASULTA) that aim to provide more livelihood and income to small coastal communities, especially in Sulu and Tawi-Tawi. Likewise, he underscored PH’s potential in Halal industry and the opportunities it offers to Malaysian consumers.

Officials from the Ministry of International Trade and Industry (MITI) noted that apart from electronics, top imports from PH include processed food, which could be a strong start for Halal promotions.

In 2018, MY stood as the country’s 10th largest trading partner, 11th export market, and 9th top import supplier. Total bilateral trade from both countries amounted to USD 6 billion in 2018 compared to USD 5.5 billion in 2017.

DTI will head a delegation on April to attend the Malaysia International Halal Showcase. “This kind of activities are very important to PH as the country is still beginning to recognize its potentials in the Halal industry and would learn much from big economies, like Malaysia,” Sec. Lopez added.

Both ministers expressed the need to focus on the development of ASEAN’s sub regions, which include the BIMP-EAGA.

Meanwhile, Minister Leiking expressed his appreciation on PH products and home-grown brands like Jollibee, which is currently expanding in MY.

MITI officials also conveyed the interest of many Malaysian companies in participating in PH government’s massive infrastructure project, Build Build Build as well as the assistance extended to companies intending to invest in PH.

The meeting between Sec. Lopez and Minister Leiking followed the visit to PH of His Excellency Prime Minister Tun Dr. Mahathir Mohamad last week. Present during the meeting were DTI Undersecretaries Ceferino Rodolfo and Abdulgani Macatoman, Assistant Secretaries Angelo Taningco and Allan Gepty, Board of Investments International Investments Promotion Service Chief Lanie Dormiendo, Malaysia External Trade Development Corporation (MATRADE) Chief Executive Officer Dato’ Wan Latiff Wan Musa, Malaysian Investment Development Authority Executive Director for Strategic Planning Zabidi Mahbar, ASEAN Economic Integration Division of MITI Director Khairulnizam Hashim, and MATRADE Manila Trade Commissioner Siti Azlina Mohd Ali Hanafiah.

DTI Presents Investment Opportunities to Dutch Shipbuilding Firm

MAKATI – With Dutch shipbuilding company Damen Shipyard Group visiting the Philippines (PH) to possibly partner with the Philippine Navy to build and supply naval defense vessels, Department of Trade and Industry Secretary (DTI) Secretary Ramon Lopez took the opportunity to present the Hanjin Facility in Subic and other investment options in a meeting with them last 04 March.

“Shipbuilding is one of our priority industries not just in Subic, but also in many locations in our archipelagic country. We have the required manpower and skillset for new shipbuilders. As a market ourselves, the country is also in need of smaller vessels like the Roll-On-Roll-Off (RORO) ships,” said Sec. Lopez.

Unlike Hanjin, Damen does not produce large container ships. Instead, they focus on smaller vessels like yachts, cruises ships, navy ships, and tug boats. The company’s chairman Kommer Damen said this puts them in a good position because they’re not affected by the overcapacity in the cargo ship market that caused Hanjin to scale down their operations.

The company already has a footprint in PH through their partnership with the Filipino company Propmech Global Technologies and their contract with the Philippine Airlines. DTI Undersecretary Ceferino Rodolfo said that Damen's technical team already surveyed the facility and is reviewing how it will fit in their current plans.

Board of Investments (BOI) Governor Napoleon Concepcion shared that shipbuilding companies from Australia and Norway are investing in Visayas and Mindanao respectively and offered similar sites to the Dutch company.

Chairman Damen said this is a good scenario to have with more shipbuilders in an area due to greater industry support and better education for employees.

Gov’t Touts Reforms on Ease of Doing Business Ahead of World Bank Survey

Following the protest by the Philippine government on World Bank’s 2019 Doing Business (DB) Report, the Department of Trade and Industry kicked off a communication campaign in its bid for better results in the 2020 cycle by reporting to the public, the various Ease of Doing Business reforms initiated by various agencies of government. 

DTI organized a briefing of respondents which participated in the 2019 DB survey composed of lawyers, contractors, accounting firms, and other professionals. Key officials from SEC, BIR, LRA, and the QC Government presented the various programs, and policies issued by agencies aimed at promoting efficiency in government.

During the briefing, DTI Undersecretary Rowel S. Barba underscored the whole-of-government approach. 

“We are proud of the reforms instituted by the Legislative, Executive, and Judicial branches of government to promote Ease of Doing Business. We need to catapult the Philippines, and we need Congress, the Supreme Court, and the executive branch to closely work together,” Undersecretary Barba said. 

The trade undersecretary's statement was in reference to the recent enactments by the legislative and the Supreme Court. Three of these major reforms were the Revised Corporation Code, Personal Property Security Act, and the Supreme Court’s new rule on small claims coverage. DTI is looking to the three and their resulting initiatives to have an impact on the country's performance in the 2020 survey and succeeding survey cycles.

The Revised Corporation Code, signed into law on 20 February 2019, removes the minimum paid-in capital requirement, promotes electronic filing of articles of incorporation, and directs the SEC to issue rules and regulations to protect minority investors and improve corporate governance in accordance with international best practices.

Businesses will also have greater access to credit through the Personal Property Security Act, which allows borrowers to use other personal property like inventory, accounts receivable, and agricultural products as collateral.

Meanwhile, the Supreme Court’s increase in the amount covered in small claims cases from Php300,000 to 400,000 will allow more cases to be filed in Metropolitan Trial Courts and reduce the costs associated with debt collection.

During the briefing, SEC Commissioner Jayvee Francisco presented the Lane for Express Application Process (LEAP) which will drastically improve the processing of simple applications.  The Bureau of Internal Revenue (BIR) meanwhile reported on the issuance by the Commissioner of Internal Revenue Caesar Dulay of Revenue Memorandum Circulars 6-2018, 19-2018, 27-2019, and 29-2019 streamlining requirements and procedures to allow new business taxpayers in QC to immediately start its business operations while waiting for the printing and delivery of its receipts/invoices by BIR accredited printers. 

Undersecretary Barba said these reforms are in line with the President socio-economic Agenda, to promote competitiveness and ease of doing business, adding that, “Beyond our objective of improving the Philippines’ rank and score, the steps we have taken signify our commitment to create a competitive business environment and foster innovation and entrepreneurship.  We are confident that the reforms initiated by the Supreme Court, Congress, and the executive branch will make doing business in the Philippines easier”. 

 

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Government addresses high shipping costs and port congestion; public consultation on Joint Administrative Order conducted

The Department of Trade and Industry (DTI), Department of Finance (DOF), and  Department Transportation (DOTr),  jointly organized a public hearing on the Joint Administrative Order (JAO) that will tackle the long outstanding issues of high shipping costs, port congestion, and inefficient container handling that adversely affect the importers, exporters, and the consumers in general. DTI Undersecretary Rowel S. Barba (2nd left) presided over the public hearing  on February 14, 2019, which was attended by foreign shipping lines, truckers, customs brokers, container yard operators, terminal operators, and exporters to gather comments and recommendations before the finalization of the draft regulation.  He was  joined by DOTr Undersecretary Fernando Juan Perez (2nd right), Bureau of Customs Deputy Commissioner Edward James Dy-Buco (left) and Philippine Ports Authority (PPA) General Manager Jay Santiago.  Parties are requested to submit inputs and proposals to the draft JAO on or before February 21, 2019.

Go Lokal! gets Most Innovative Idea Award at SPRints 2017 Huwarang DTI

The Go Lokal! team, led by DTI-Trade and Investments Promotion Group (TIPG) Assistant Secretary Rosvi C. Gaetos (third from right) and former TIPG undersecretary Nora K. Terrado (fourth from right), receives the “Most Innovative Idea Award” at the SPRints 2017 Huwarang DTI on January 31, 2019 at the Philippine International Convention Center, Pasay City. The SPRInts or “System for Performance, Rewards, and Incentives” is an annual search for top performing DTI executives and employees whose notable contributions led to the agency’s improved work conditions and services. Joining Gaetos and Terrado (from left) are: Planning Management Service Office-in-Charge Robert Alvin T. Arceo, Management Services Group Undersecretary Ireneo V. Vizmonte, Trade and Industry Secretary Ramon M. Lopez, product specialist Stanly Ruiz, Bureau of Domestic Trade Promotion Assistant Director Marievic M. Bonoan, consultant Leon Flores, and Human Resource and Administrative Service Director Joel R. Cruz.

 

DTI Secretary Ramon Lopez (fourth from left) with the DTI Executives and awardees of the Huwarang DTI Employee of the Year 2017.

From left:  Regional Operations Group (ROG) Undersecretary Zenaida C.  Maglaya, ROG Assistant Secretaries Demphna Du-Naga and Blesila A. Lantayona, TIPG Assistant Secretary Rosvi C. Gaetos, and former undersecretary Nora K. Terrado.