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.
MAPFRE INSURANCE, formerly MAPFRE INSULAR, recently announced in a media launch that it has raised capital to P900 million, having complied with the minimum net worth requirement set for 2019 by the Insurance Commission, according to the New Insurance Code of the Philippines (RA 10607).Amended in 2013, the law states that a domestic life or non-life insurance company should have at least a net worth of P250M by June 30, 2013, P550M by December 31, 2016, and reached P900M by December 31, 2019.At the helm of MAPFRE Insurance is Mr. Tirso Abad, President & CEO, who shared the company breakthrough during the said event held on November 26, 2019. “This development shows the strengthened presence of MAPFRE Insurance in the Philippines, with a significant investment that will contribute to the industry and most especially improve the lives of Filipinos,” he said.Marking its 85 years in the business, the company is anchored on three main objectives: to offer non-life solutions with relevant products, to be efficient in claims service, and to better serve the Filipino people.Owned by MAPFRE Sociedad Anonima Spain at 75% majority, and Insular Life at 25%, MAFPRE INSURANCE is one of the non-life insurance companies with the highest capital and solvency in the Philippines.In 2018, it introduced digital services and innovations such as the: MAPFRE INSULAR Virtual Office, centralized policy services and claims, QR code for verifying policies, 24/7 claim reporting, and expanded payment channels. The MAPFRE Insular Virtual Office is the first digital office portal for use of non-life insurance intermediaries – where partners can access accounts for renewal, draft quotations instantly, and make online payments.“As we leap towards the digital future, we are presented with more choices to connect with people. This is a great opportunity to be more efficient and agile to serve our client’s unique needs. Since our launch last year, we have been continuously developing our channels and we look forward to be a digital leader as well for the insurance industry,” Mr. Abad added.MAPFRE INSURANCE offers general insurance for optimum financial protection and risk management covering fire and allied lines, motor vehicles, personal accident, casualty, liability, engineering, marine cargo, and surety. The company has developed a wide network nationwide expanding from 10 branches to 16 sales offices in NCR, Isabela, Lipa, Iloilo, Cebu, Cagayan de Oro, and Davao, among many others.For more information about the MAPFRE INSURANCE, you may visit http://mapfre.com.ph or email info@mapfreinsular.com
ORTIGAS – The first Philippine Startup Week, held on November 18 to 22, 2019 capped off with the 5th Slingshot Conference and the signing of the Implementing Rules and Regulations of the Republic Act 11337 or the Innovative Startup Act.
The law provides startups and startup enablers with incentives like travel grants, venture funds, and assistance in getting visas and business permits. At the center of the law’s implementation will be the Philippine Startup Development Plan that reviews and harmonizes existing government programs for startups.
Department of Trade and Industry (DTI) Secretary Ramon Lopez said that among his agency’s responsibilities, as mandated by the Innovative Startup Act, is ensuring ease of doing business for startups through a Startup Business One-Stop Shop (Startup BOSS) and administering a Startup Venture Fund, through its attached agency, the National Development Company (NDC).
The fund will match funding from venture capitalists for startups based in the Philippines. Sec. Lopez said that NDC can allocate an initial fund of Php 125 million to fund 50 startups and grow the fund as needed.
The Philippines in the global startup scene
In his welcome remarks at the Slingshot Conference on 22 November, the trade chief shared the Philippines’s standing according to the Startup Genome’s Global Startup Ecosystem Report 2019.
Startup Genome ranked Manila among the top Activation Phase Ecosystems in the world, together with Taipei, Busan, Calgary, and Frankfurt. The secretary reported that DTI has counted over 600 startups in the country; around 50 incubators and accelerators; and about 45 funders.
“Though our startup community is still relatively small, with Manila valued at US$ 378 million, we are seeing so much talent, value, and potential for growth among our young and dynamic Filipino startups,” said Sec. Lopez.
Adam Bregu, Business Development Manager of Startup Genome, gave a talk about the global startup ecosystem, with a deep dive on the Philippines. He said that 68% of the US$ 2.8 trillion value of the startup community is still concentrated in the top cities, namely San Francisco, New York, London, Beijing, Boston and Tel Aviv. This, however, already decreased from an 87% share from 2011 to 2012.
Bregu cited that Philippine startups are strong in agri-tech and food, blockchain, and fintech; the first two are the highest growing sectors globally. He also reported that the Filipino startup community has a strong local connectedness driven by its sense of community and the above-average number of female founders.
However, Bregu pointed out that to maximize growth, Philippine startups should develop a globally-focused mindset, wherein startup founders should plan to go global as early as day one. Globally-focused startups, Bregu said, grow twice as fast as their nationally-focused peers. To develop this mindset, he suggested a stronger link to the key startup hubs in the world, with an emphasis on founder-to-founder connections.
Startup Pilipinas
In 2016, DTI developed Startup Pilipinas as the industry cluster program to foster inter-enterprise linkages among startups and strengthen collaborative networks. As part of this program, DTI funds Filipino startup founders to participate in international events.
A delegation of Pinay-led startups recently participated in the Singapore Week of Innovation and Technology 2019 (SWITCH) on 11 to 15 November. Aside from Singapore, DTI sent startups to 17 international events this year, including those in Taiwan, Korea, Hong Kong, Canada, and Germany.
DTI’s foreign commercial attaches also initiated their own programs such as the Bridging the Philippines and Silicon Valley Innovation Ecosystems program and SPARK447, a co-working space at the Philippine Center in San Francisco was launched in October 2019 to provide Philippine Startups access to a virtual address and physical space.
Meanwhile, KALA Works, a 10,659-square feet co-working space founded by Fil-Am investors will be operational by the 2nd quarter of 2020. This will be the first Fil-Am managed co-working space in San Francisco with the goal of helping startups scale up by providing a state-of-the-art facility and best possible mentorship.
