PH, UNIDO to work on Innovation, Capacity Building Programs

Department of Trade and Industry (DTI) Secretary Ramon Lopez discussed with United Nations Industrial Development Organization (UNIDO) Director General Li Yong the 1st UNIDO Country Programme for the Philippines (PH) as well as the technical assistance and support for the Philippine National System of Innovation.

“The partnership between the Philippines and UNIDO will greatly benefit the Filipino people and improve the current state of the country through various technical assistance and support in developmental areas. As the country programme is based on the macroeconomic agenda of President Rodrigo Duterte, it will support the government’s drive to reduce poverty and improve industries through the development of human capital, innovation, and connectivity in the country,” said Sec. Lopez.

The UNIDO Country Programme was crafted in line with the Philippine Development Plan (PDP) 2017-2022. Its framework is based on the country’s national priorities and aims to strengthen collaborations among development cooperation partnerships of the PH government.

DTI has identified priority interventions that will benefit from the support and technical assistance from the partnership with UNIDO. These will focus on promoting innovation, upgrading industries, and facilitating manufacturing resurgence.

During the meeting, the trade chief highlighted PH’s thrust to push for rapid growth in the industry sector through the Inclusive Innovation Industrial Strategy (I3S), an industrialization program that will ensure the development of the micro, small, and medium enterprises (MSMEs) as part of the value chains.

“Our plan is to promote productivity, innovation, and inclusivity in industry development. These will allow participation of those at the bottom of the pyramid and solve the poverty situation,” Sec. Lopez added.

Director General Yong commended the programs of the government that reflects the Sustainable Development Goals (SDG) strategies. He also lauded PH’s growth rate, the country’s initiatives empowering MSMEs, the drive for job and income generation, as well as the government’s efforts of linking MSMEs to the global value chains.

Meanwhile, Sec. Lopez conveyed the need to include and put emphasis on trade as well as building the manufacturing capacity in the country programme. He expressed that greater human capital, innovation, productivity, and resilience are essential in creating stronger manufacturing and export manufacturing base in the country.

“Our success in achieving our goal to balance trade and create surplus depends on capacity building—both physical capacity and human resources. The technical assistance as well as support in these areas are greatly needed,” said the trade chief.

Sec. Lopez also mentioned the need to address the power cost, which is one of the major challenges, as it affects the competitiveness of companies operating in the PH.

The UNIDO Country Programme aims to address key issues including challenges in investment and ease in doing business, competitiveness, innovation in the industry sector, skills mismatch (labor force vis-à-vis industry needs), availability of data and statistics (industry sector, especially MSME), productivity-enhancing support services, infrastructure (agriculture, forestry, and fishery sector), and vulnerability to climate and disaster risks.

DTI has started exploring cooperation with UNIDO in terms of strengthening the innovation ecosystem for industry and support to private sector innovation. This covers measures to strengthen academe-industry linkages for research and development, commercialization, and financing. It also includes firm-level innovation programs for PH’s priority industries such as electronic manufacturing services, automotive and auto parts, aerospace parts, chemicals, shipbuilding, design-oriented furniture and garments, tool and die, agri-business, information technology and business process management, transport and logistics, tourism, and construction. The institutional strengthening of the Department, government, academe, and industry partnerships was also emphasized.

*This is Press Release

DTI finds 85 Counts of Overpricing as it Intensifies Monitoring to 600 Stores Weekly

The Department of Trade and Industry (DTI) found 85 counts of pricing over suggested retail prices (SRPs), as it increased the number of monitored establishments from 400 to 600 weekly.

The 85 counts (referring to product/s in stores) were immediately issued letters of inquiry (LOI), where prices on 77 items were immediately corrected back to SRP levels.  These were considered minor violations as the actual prices were above SRPs by a few centavos.  The other accounts will be apprehended should they fail to respond and correct their pricing.

Price monitoring activities were intensified following the directive of President Rodrigo Duterte to ensure that prices of basic necessities and prime commodities (BNPC) are within the SRP. The monitoring teams now cover at least 120 firms a day.

At the same time, DTI Regional/Provincial offices also conduct regular monitoring of prices in the provinces covering 500 more stores.

“Since the implementation of the TRAIN Law, no LOI has ripened into a Formal Charge because the firms have immediately adjusted their prices to SRP. These supermarkets and groceries have been compliant after receiving an LOI,” Trade Secretary Ramon Lopez said.

DTI reminds all establishments that administrative fine of up to Php 1M shall be imposed to firms committing any illegal act of price manipulation, specifically profiteering. This offense may also result in criminal liabilities and penalties.

Nevertheless, except for these cases, prices have remained stable based on price monitoring.

“To be exact in the reporting, we have compared ACTUAL PRICES in June 11-15, 2018 vs. November 2017, and not only the SRPs for BNPC.  Out of 101 SKUs in basic necessities covering canned sardines, milk, coffee, detergent bars, bread, instant noodles, and bottled water, only four showed minimal price increase of 1-7%,” said Sec. Lopez.

For prime commodities like canned meat products, condiments, bath soap, and battery, out of 43 items, only 13 posted increase of 1-8% range, mostly in canned meat category due to higher tinplate costs worldwide.  These are actual price survey database.

“We also compared SRPs during the two periods and there were SRP changes in 26 SKUs out of total 144 SKUs for combined BNPC, but 11 of the 26 items kept the same actual prices despite changes in SRPs,” he added.

Meanwhile, the trade chief reiterated that while he understands the plight of the workers, the requests for wage hike will be left with the Regional Tripartite Wage Board (RTWB).

“This matter really depends on the economic situation per region, such as inflation in the respective areas and other factors, such as the supply and demand for workers.  The various RTWBs are already deliberating this matter,” said Sec. Lopez.

According to Lopez, “It is also better to have a more conducive climate for business and industrial peace to generate more investments and more job opportunities.”

“We call on the labor groups to join us in achieving this more sustainable solution. Let’s show the investors that this is a country with industrial peace where workers are productive, highly-skilled, knowledgeable, and industrious. We are your partners in uplifting the lives of each and every Filipino and sharing the economic gains of the country to all,” he concluded.

*This is Press Release

DTI REPORTS ON EASE OF DOING BUSINESS REFORMS Sec. Lopez calls on gov’t agencies to “Execute, execute, execute” reform initiatives

The Department of Trade and Industry (DTI) announced during the 6^th Ease of Doing Business (EODB) Summit on 13 June 2018 at the PICC in Pasay City that the government has already implemented nineteen reforms that it hopes will have an impact in the 2019 World Bank Doing Business Survey Report.

DTI Secretary Ramon Lopez, chair of the EODB/Anti-Red Tape Advisory Council, enumerated the following reform initiatives undertaken by various agencies that will have an impact on 7 out of 10 indicators of the DB Report.

These indicators include: (1) starting a business, (2) dealing with construction permits (3) getting electricity, (4) registering property, (5) protecting minority investors, (6) trading across borders, and (7) enforcing contracts.

The following reforms have been implemented:

1. Company Registration System (CRS) implemented by the Securities and Exchange Commission (SEC) on November 2017. 
2. Executive Order 11 issued by Quezon City creating a One-stop Shop (OSS) for business and building permits. Barangay clearances shall no longer be held as a prior requirement for business and building permit application.
3. Single Window Transaction initiated by the Bureau of Internal Revenue (BIR).
4. Setting up of Quezon City Construction Permits One-Stop Shop for single, integrated application and approval for building permits, locational clearances, fire safety evaluation clearances, certificates of occupancy, fire safety inspection certificates, tax declarations (new warehouse), certificates of final electrical inspection, and certificates of machinery operation.
5. Issuance of a DILG/DPWH/DTI Joint Memorandum Circular on Construction Permits. This sets uniform standards for processing building permits and certificates of occupancy, including application forms, requirements, steps, processing time, one-time assessment, and payment of fees.
6. Implementation of the CXE (Customer eXperience Engine) by MERALCO.
7. Setting up a MERALCO Booth inside the Quezon City Hall, a channel to receive service applications and to inform contractors and customers on how to apply for electricity and submit requirements online.
8. Implementation of Executive Order No. 11 s 2017 where the Certificate of Final Electrical Inspection (CFEI) is now part of the application.
9. Implementation of the Land Titling Computerization Project (LTCP) by the Land Registration Authority (LRA).
10. Land Registration Systems (LARES) uploaded with LRA’s annual statistics tracking the number of transactions in their website to allow the public access to the data. Majority of the title/ deed records and plans in Quezon City have been converted electronically and are now fully digital. Users are now able to check a specific title's encumbrance information using its electronic database.
11. Implementation of the Supreme Court's Philippine's Enterprise Information Systems Plan (EISP) and the roll-out of the e-Court system in Quezon City.
12. Implementation of the Electronic Certificate Authorizing Registration (eCAR).
13. SEC issued Memorandum Circular No.8, s.2018, which mandates all publicly-listed companies to seek shareholders' approval on any change/s in the company's external auditor.
14. Issuance of a SEC Memorandum Circular requiring the boards to have a separate audit committee exclusively comprised of board members.
15. The Goods Declaration Verification System (GDVS) provides real time updates on entries filed, which lessens face-to-face transactions at the Bureau of Customs (BOC) and its stakeholders.
16. The Super Green Lane (SGL) institutes advance cargo clearance for shipments of highly compliant importers. This allow advance processing and clearance of importations from the country’s topmost qualified importers without compromising BOC’s function of assessment and collection of revenue.
17. Mandatory 100% x-ray inspection on red lane shipments and removal of redundant scrutiny of cargoes.
18. Terminal Appointment Booking System (TABS) is an innovative online system that schedules the withdrawal and delivery of containerized cargoes at the international ports of Manila. It reduces the road congestion in the port vicinity, which will benefit the surrounding communities, other road users, and the environment in general.
19. Deployment of electronic case management system through the eCourts project

The reforms implemented have resulted in the reduction in the processing time and steps on applications in Quezon City, the representative city monitored by the World Bank.

Sec. Lopez called all government agencies to implement fully these reforms identified by the EODB Task Force. He said: “Our thrust is to ‘Execute, execute, execute.’ We must continue to implement these reform initiatives and identify the obstacles to our progress.”

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Lopez noted that the recent passage of the EODB/Efficient Government Law or Republic Act No. 11032, should compel all agencies of government to comply with streamlining and reengineering. This he said, effectively broadens the scope of the interagency task force.

DTI Augments Prices and Supply Monitoring of Basic and Prime Goods

The Department of Trade and Industry monitored 43 groceries and supermarkets on Wednesday, 06 June 2018, to check if prices of basic necessities and prime commodities are sold within Suggested Retail Prices (SRPs).

“Upholding our commitment to ensure consumers’ access to reasonably-priced basic and prime goods, the DTI intensifies its price monitoring efforts by increasing the number of firms that the Department will monitor to 1,210 business establishments nationwide. 610 firms are now being monitored in NCR and 600 more across the rest of the regions,” said DTI Secretary Ramon M. Lopez.

The price monitoring activity led by the Fair Trade Enforcement Bureau (FTEB) of the DTI covered the cities of Quezon, Taguig, Las Piñas, Malabon, Pasig, Marikina, Mandaluyong, Caloocan, Parañaque, and Manila.

Two (2) groceries in Parañaque and Marikina were issued with Letters of Inquiry for selling one brand of laundry soap higher than the SRP. This requires the groceries to submit a written explanation within 48 hours before the DTI.

Per verification, the subject laundry soap brand had recently submitted a proposed price adjustment before the Department. Pursuant to DTI Department Administrative Order No. 17-09, Series of 2017 on the implementation of SRP of basic and prime goods, any price adjustment can only take effect after 30 days from date of notification to provide a period of review by the DTI in determining reasonableness for its price increase.

The written explanation that will be submitted by the monitored groceries will greatly aid the DTI in addressing the variables that are affecting prices of basic and prime goods.

DTI Chief Opens Bagong Buhay Boracay Store

Department of Trade and Industry (DTI) Secretary Ramon Lopez led the opening of the Bagong Buhay Boracay store, the latest program of the agency in providing market access to the products of micro, small, and medium enterprises (MSMEs) from Boracay.

“This is just the beginning of bringing Boracay products to the mainstream market. We will continue to extend financial, technical, design, and marketing support to our MSMEs in the area even after the island re-opens,” said Sec. Lopez.

Following the closure of the island to tourists and a series of consultations with the local government and MSMEs in the island, DTI Regional Operations Group, DTI Region VI, Bureau of Domestic Trade and Promotion (BDTP), and Design Center of the Philippines (DCP) pooled their expertise and resources in launching the store in Makati.

The store, located at the BDTP West Wing Showroom, features food delicacies, wearables, fashion accessories, home décor, and souvenir products from 21 MSMEs in the island, comprising of 7 food processing businesses and 14 craft manufacturers. These exhibitors have over 150 beneficiaries in Boracay. Some items available for sale are products of social enterprises supporting out-of-school-youths in Boracay and Aklan.

DTI will also bring Aklanon products to malls, supermarkets, pasalubong centers, airports, seaports, jetty ports in Manila, Cebu, and Iloilo. In a recent development, some items featured in the Bagong Buhay Boracay store will also be carried by Kultura in SM Megamall.

“We guarantee our MSMEs that DTI will keep on providing holistic assistance for their products in terms of microfinancing support through the Pondo sa Pagbabago at Pag-asenso (P3), product development, and innovation. Apart from these, we also help them in branding, marketing strategy development, and market access through Go Lokal! stores as well as of One Town, One Product (OTOP) Philippine hub,” Sec. Lopez added.

Meanwhile, the local government of Malay, Aklan expressed their gratitude to the efforts of DTI in helping the affected MSMEs in the island. Mr. Rowen Aguirre of the Office of Malay Mayor Ciceron Cawaling emphasized the importance of providing new market access to the micro and small entrepreneurs, which primarily depend on their daily income to survive.

DTI will also provide skills training and start-up kits to the residents who wish to engage in other alternative livelihood activities. This include siomai making and screen printing.

“In the coming weeks, we will be launching other events to bring the Boracay experience to the metro. We will have Boracay Festivals in Manila wherein apart from the products we can buy in the island, we will also bring in the activities the island is famous for, such as fire dancing, tattoo artists, hair braiders, caricature artists and more,” said Sec. Lopez.

“We encourage everyone to support our brothers and sisters in Boracay and Aklan by visiting the Boracay Stores and buying their products,” Sec. Lopez concluded.

*This is Press Release

DTI in Full Force to Help Boracay MSMEs

The Department of Trade and Industry (DTI) has unrolled programs and projects to assist Boracay residents, especially the micro, small, and medium entrepreneurs (MSMEs), following the island's closure last April.

“We had taken measures and interventions to assess and address the needs of the residents, especially our micro entrepreneurs and local workers, even before the actual closure of the island,” said DTI Secretary Ramon Lopez.

DTI started a series of consultations on 3 April 2018 with provincial and local government units, as well as business counselors, and conducted surveys among local business owners and workers in Boracay.  

The respondents identified and requested assistance in online marketing, accessing new markets for their products, and help in relocating their businesses.  Various skills training such as cooking, baking, food processing, and handling were also raised. Some respondents also inquired about the government’s loan programs and financial assistance.

On 23-28 April 2018, DTI participated in the Aklan Piña and Fiber Festival by mounting a trade fair at the Provincial Capitol Grounds of Kalibo, which featured products of MSMEs affected by the closure of Boracay.  The trade fair gathered 121 exhibitors comprising of 104 MSMEs and 17 Local Government Units One Town, One Product (OTOP). The trade fair generated total sales of Php 15.206 million, which covers Php 1.564 million-worth of cash sales and Php 13.642 million-worth of booked orders.

DTI also brought to Manila the products of eight affected MSMEs from Caticlan and Kalibo. The items were promoted and sold at the Boracay Store of DTI’s Bureau of Domestic Trade and Promotions Showroom. The products featured include banana chips, crispy shrimps, biscocho, cinnamon toast, toasted crunch, ampao, ugoy-ugoy, butter toast, otap, assorted bags, wallets, coin purses, eyeglass cases, pencil holders, cell phone holders, wood and crochet ball bracelets, abaca envelope packaging material, and piña silk shawl.

“We are on the lookout for more ways to assist our MSMEs and those affected by the closure. We are also planning more trade fairs and allocating spaces to promote Boracay products not just in other provinces but also in big cities and tourist destinations. We will be carrying deserving products in our Go Lokal stores and showrooms,” Sec. Lopez said.

Meanwhile, the Department opened a One-Stop Operations Center in the island where other government agencies-- including the departments of Labor and Employment (DOLE), Social Works and Welfare (DSWD), Tourism (DOT), as well as the Technical Education and Skills Development Authority (TESDA) and the Malay, Aklan Public Employment Service Office (PESO)-- are present to address the needs of the residents and local MSMEs.

“There are still a lot of training programs in our calendar that we can conduct in the coming days for the Boracay residents and our MSMEs,” said DTI Undersecretary Zenaida Maglaya.

Various skills training were offered to the residents such as screen printing and siomai making. There were also Online Marketing Awareness Seminars and consultations on the government's Pondo sa Pagbabago at Pag-Asenso (P3) Financing Program, as well as Trademark Registration.

*This is Press Release

DTI Readies Interventions to Lessen Impact of Boracay Island Closure

The Department of Trade and Industry (DTI) will assist affected workers and displaced micro, small and medium entrepreneurs to lessen the impact of the the six-month closure order of Boracay Island in Malay, Aklan.

DTI Regional Operations Group Undersecretary Zenaida Maglaya said that the agency has identified initiatives to cushion the impact to workers and entrepreneurs of the island’s shutdown on April 26.

“We recognize the importance of Boracay Island to our local entrepreneurs there. However, we would also like to ensure that the island maintain its pristine condition, which is why we have identified programs that will help local entrepreneurs,” Maglaya said.

DTI, a member of the Working Group on employment and livelihood and the lead agency in the establishment of the Operations Center/ One-Stop Shop in Boracay Island, has identified activities that may provide workers alternative income and other alternative markets for the MSMEs.

While the island is closed to tourists, MSMEs selling to Boracay will be given the chance to continue their businesses as DTI identifies alternative market outlets in nearby resorts and Pasalubong Centers.

Aside from these, the DTI will launch the Negosyo Serbisyo sa Barangay and come up with trainings, coaching and mentoring on business opportunities, online marketing seminar, and micro loans through the Pondo para sa Pagbagago at Pag-asenso (P3), among others.

DTI launches expanded Shared Service Facility to strengthen footwear industry

Department of Trade and Industry (DTI) Secretary Ramon Lopez led the inauguration of the expanded Shared Service Facility (SSF) on high value custom-made footwear which features advanced technology and newly acquired state-of-the-art machineries in preparing customized footwear molds that would increase productivity of shoemakers.

“We need to equip our micro, small, and medium entrepreneurs with modern machineries that would increase productivity with lesser cost in order to revive the footwear industry. Marikina has always been known for their shoes. And if we come together, government, private sector, and Filipino shoemakers with their unique craftsmanship, we can easily sell our products here and abroad,” said Sec. Lopez.

The trade chief also encouraged government personnel to support and choose local footwear. Likewise, DTI will push for policies and programs to have government agencies purchase locally-made shoes as well as bags, example for public school children.  

Meanwhile, Marikina City Mayor Marcelino Teodoro announced the city’s project to build a mall-type facility to feature all Filipino MSME products, specifically Marikina-made footwear.

DTI welcomed the proposed project and pledged its support to the local government through the Go Lokal! concept store.

“Having this kind of project will bring our efforts in marketing the products of our MSMEs to a higher level. From a pop up store to a mall of all-local and quality products will definitely help us strengthen the sector,” the trade chief said.

According to Sec. Lopez, the government will continue to support the footwear industry in a holistic manner through its 7Ms (Mindset change, Mastery, Mentoring, Market, Money, Machine, and Models) strategy.

“With our collective effort, we can make Marikina-made footwear known not just here in the Philippines. We will make our footwear compete globally,” said Sec. Lopez.

Aside from the expanded SSF, DTI also inaugurated the newly renovated and improved Philippine Footwear Academy building, which serves as a shoemaking skills training facility in Marikina.

Also present during the inauguration were Philippine Footwear Federation Inc (PFFI) President Lolito Lopez, PFFI Secretary General Roger Py, Philippine Chamber of Commerce Marikina President Jeanelle Lee, and DTI Assistant Secretaries Blesila Lantayona, Ameenah Fajardo, and Demphna Du-Naga.

DTI, DA Lead Efforts to Strengthen PH Rubber Industry

The Department of Trade and Industry (DTI) and the Department of Agriculture (DA) led the inter-agency signing of the Joint Statement of Commitment for the “Philippine Rubber Industry Roadmap 2017 – 2022” on 16 April 2018. 

“The cluster approach [that addresses the gaps and opportunities in the entire value chain from the rubber production to processing and manufacturing of finished products] is the way to go,” said DTI Secretary Ramon M. Lopez.  “This industry is critical in helping achieve President Duterte’s vision of real inclusive growth since the rubber production sector involves over 55,000 small farmers/growers.”  

Ninety percent of the rubber farmers in the country are small growers, most are from the Mindanao region—Zamboanga Peninsula, SOCCSKSARGEN, and ARMM. 

“DTI is committed to expand market and processing opportunities for their products by bringing in more investors on rubber processing and rubber-based products, like tire companies, and linking them with the local rubber suppliers,” the trade chief added. He also said Philippine (PH) rubber can be used for rubberized asphalt for road projects in the government’s “Build Build Build” program. 

Meanwhile, DA Secretary Emmanuel F. Piñol said that rubber has a crucial role in the reformatting of the PH agriculture plan. 

“The agricultural areas I’ve visited suffer from the same problems: soil erosion and landslides. These are indications of poor agricultural planning—where farmers are planting crops where we should be planting rubber trees,” Sec. Piñol said.  

The roadmap outlines steps in the following aspects of rubber production: (1) Production & Productivity Improvement; (2) Processing and Manufacturing; (3) Domestic and Export Marketing, (4) Research, Development and Extension; (5) Finance and Investment Promotion; and (5) Information, Policy Formulation and Advocacy. 

Aside from the DTI and DA, the inter-agency cluster consists of the departments of Science and Technology (DOST), Environment and Natural Resources (DENR), and Agrarian Reform (DAR), as well as the Technical Education and Skills Development Authority (TESDA), the Mindanao Development Authority (MinDA), the Philippine Rubber Industries Association (PRIA), the Philippine Rubber Farmers Association (PRFA), and the University of Southern Mindanao (USM). 

PH is currently a minor producer of rubber, yielding 1% of the natural rubber in the world as compared to top producers Indonesia and Thailand that produce 25% and 34% of global production, respectively. Despite this, the PH rubber industry is steadily growing—for the last quarter of 2017, rubber production grew by 8.9% to 138.24 thousand MT from 126.94 thousand MT in the same quarter of 2016.

*This is Press Release