Dataline No. 14.pmd - DTI

dataline July 02, 2012 1
dataline
July 02, 2012
Vol. 16, No. 14
A bi-monthly digest of global and domestic industry trends and developments. Published by
the Trade and Industry Information Center, Department of Trade and Industry Manila, Philippines
Tel. (632) 895.3611 Fax (632) 895.6487 To subscribe, email: publications@dti.gov.ph
Online: http://www.dti.gov.ph
In this issue
Focus
PEZA okays P26.5-B investments
in Jan-May
Inside DTI
1. DTI to reel in P870B worth
of investments in 2012
2. DTI showcases Rizal products
Good News, Philippines!
1. Foreign investors commit USD 2B
in new investments
2. Moody’s upgrades PHL rating
to positive
3. PHL grows 6.4% in Q1
4. Filipinos remain optimistic
MSME/OTOP News
1. DTI urges microenterprises
to register businesses
2. MSMEs to compete
in BiD Challenge Netherlands
Business Alert
1. DTI urges exporters to increase
shipments to Australia and NZ
2. More local trademarks expected
Consumer News
1. DSWD warns public of text scam
on 4Ps
2. CeMAP reminds buyers
to check cement labels
Features
PHL jumps 20 notches in WEF’s global
survey on ease of trading
ASEAN Watch
1. Doubling of Asian fund seen
2. Malaysia eyes more investments
in PHL
Statwatch
What’s New?

dataline
Focus
PEZA okays
P26.5-B investments
in Jan-May
Inside DTI
1. DTI to reel in P870B
worth of investments
in 2012
The Philippine Economic Zone
Authority (PEZA) approved
P26.5B worth of investments
in the first five months of the year,
P16.5B of which were new projects
while P10B were for expansion.
“Investors are on an expansion mode.
The time is certainly positive,”
PEZA Director-General Lilia B.
De Lima said.
A total of 42 new electronics firms
have put their capital in the country
and their investments are expected
to employ 17,000 workers.
Of the expansion projects, Toshiba
Information Equipment Systems
has earmarked P3.6B for the
manufacturing of new advanced
technology equivalent
to 2.5-inch terabyte hard disk drive.
The Toshiba expansion is part
of the relocation of some of its
production from its Thailand
operation. It will hire 2,240 workers
once it starts commercial operations
within the year.
The other big investor is Maxim Philis
Operating Corp. with P3.2B worth
The Department of Trade
and Industry (DTI) aims
to generate P870B worth
of investment commitments this year
as the government intensifies
investment promotions here
and abroad.
DTI Undersecretary for Trade
and Investment Promotions
Group (TIPG) Cristino L. Panlilio
said the target represented the
aggregate investment commitments
of the country’s different investment
promotion agencies (IPAs).
To achieve the target, the IPAs
recently signed a memorandum
of agreement (MOA) to pursue
an integrated, collaborative, and
harmonized Philippine Investments
Promotion Plan (PIPP).
Vol. 16, No. 142
of investments for final testing facility
of a semiconductor kits
in Gateway Industrial Park in General
Trias, Cavite. This project
will employ 272 new workers.
In addition, Pilipinas Kao, Inc.
is investing P1.6B for increased
production capacity of its high purity
fatty alcohol using coconut products.
The company’s existing
manufacturing plant is located
in Hasaan, Misamis Oriental.
Even wiring harness manufacturer
Yazaki Torres will expand its two
plants in Calamba and Batangas
for a total of P1.2B. The two
expansion projects will employ
2,262 Filipinos.
Semiconductor and Electronics
Industry of the Philippines, Inc.
(SEIPI) President Ernesto
Santiago said they expect to hit its
exports growth target of between
10-15% this year.
The industry already posted a 5.6-%
exports growth in the first quarter
of the year.
The Board of Investments (BOI)
alone is targeting commitments
worth P405.8B while the Philippine
Economic Zone Authority (PEZA)
is looking at P322.8B.
The PIPP is a blueprint for all IPAs
to synchronize strategies to promote
investments in the country.
The medium-term plan (2010-2014)
covers image building, investment
generation, and investment servicing
designed to build up the country’s
brand image.
“The PIPP has been successful
in putting the country as one
of the major investment destinations
in the global terrain. This plan
harmonizes our marketing efforts
and focuses on investment promotion
strategies,” Panlilio said.

dataline
2. DTI showcases
Rizal products
Good News,
Philippines!
1. Foreign investors
commit USD 2B
in new investments
IPAs’ investment promotion efforts
will be reconciled to maximize
the use of the country’s marketing
resources. At the same time,
a focused promotional approach
will be carried out to inform
the international business community
of the investment opportunities
in the country, he said.
The IPAs have already agreed
to implement their investment
promotion program, interlink their
information systems, and develop
common investment promotion
collaterals.
The products and services
of micro, small, and medium
enterprises (MSMEs) from
Rizal province were featured
at the Department of Trade and
Industry-Bureau of Domestic Trade’s
(DTI-BDT) showroom last month.
Foreign direct investments
(FDIs) worth USD 2B are
already in the pipeline for this
year, well positioning the Philippines
as an investment destination,
Department of Trade and Industry
(DTI) Undersecretary for Trade
and Investment Promotions Group
(TIPG) Cristino L. Panlilio said.
Panlilio said foreign investors are
favorably responding to the recent
developments in the country,
including the Senate’s handling
of recent impeachment case,
the strong gross domestic product
(GDP), and the vibrancy
in the countryside.
“The conviction is sending a very
good signal to the business
community because it reinforces
and reinvigorates the faith in Filipino
people,” he said.
The impeachment’s results
have fortified the private sector’s
confidence to invest in the country
because this means they can rely
July 02, 2012 3
They also agreed to contribute
and provide support in funding
the development and production
of common investment promotion
collateral and common investment
promotion activities.
The implementation of this
agreement will be carried out
by the PIPP Technical Working
Group composed of representatives
of the IPAs, under the direction
of the PIPP Steering Committee.
“With this marketing approach, we are
upbeat that we will help expand the
market of the finest products from
Rizal province to the entire country,”
said DTI-Rizal Provincial Director
Mercedes Parreño.
on the judiciary system to protect
them, he added.
The USD 2-B pipeline investments
have been committed by European
and American businessmen who are
into power plants, food, personal
care, telecommunications,
and business process outsourcing
(BPO) operations. These would be
on top of foreign investments
in the government’s public-private
partnership (PPP) projects.
In addition, he said the DTI business
name (BN) registrations, which are
mostly micro, small, and medium
enterprises (MSMEs), already hit
125,000 in the first quarter
of 2012. In 2011, the DTI reported
a record-breaking 325,000 BN
registration.
“We are going to have a total
of 500,000 MSMEs registering their
businesses this year. This indicates
that even in the countryside,
the optimism is jumping,”
said Panlilio.

dataline
Moody's Investors Service
2. Moody’s upgrades
PHL rating to positive
3. PHL grows 6.4%
in Q1
has upgraded its credit rating
outlook on the Philippines
to positive from stable due to the
country's fiscal management, debt
consolidation, and the government’s
enhanced capability to pay its debts.
The credit rating agency said
the government has continued
to demonstrate prudence in its fiscal
management, as characterized
by low budget deficits relative
to its rating peers and a steadily
declining level of debt relative
to its economy.
The Philippine economy grew
6.4% in the first three months
of the year, its strongest
quarterly pace in two years, powered
by accelerated government spending,
sustained private sector confidence,
and an export rebound.
Government consumption rose
24% in the first quarter from a year
ago, the highest in at least two years,
and exports reversed two quarters
of decline to post their fastest growth
since the fourth quarter of 2010.
“The first quarter gross domestic
product figure validates the optimistic
outlook of Aquino and his economic
team,” Deputy Presidential
Spokesperson Abigail Valte said.
Valte said they were confident that
the positive trajectory of the gross
domestic product (GDP) growth
would be sustained in the latter
quarters of this year, which
traditionally demonstrated more
robust and dynamic economic
performance.
“Moreover, this affirmation of our
country’s steady advance toward
inclusive growth comes on the heels
of Moody’s Investors Service upgrade
Vol. 16, No. 144
Moody's said such outcomes are the
result of expenditure restraint and
improved revenue performance.
Despite the absence of legislative
reforms, Moody's noted that more
effective tax administration measures
have resulted in revenue growth
outpacing nominal gross domestic
product (GDP) growth over the past
five quarters.
Although spending disbursements
have accelerated since late 2011,
Moody's said the uptick in revenues
has led to the faster-than-expected
consolidation of the country's deficits
and debt burden. (MAB 05/29)
Selected Asian countries’
economic growth
(Q1 2012)
Country Q1 economic
growth
(in %)
China 8.1
Philippines 6.4
Indonesia 6.3
Malaysia 4.7
Viet Nam 4.0
South Korea 2.8
Japan 2.8
Singapore 1.6
Thailand 0.3
of our credit outlook to positive
from stable. All indications point
to the global economy’s continued
confidence in the Philippines, as well
as to a more optimistic outlook within
the country,” Valte said.
The National Economic and
Development Authority (NEDA) said
the pickup from a sluggish 3.7-%
growth in 2011 also shows renewed
business confidence in the
Philippines. (TPS 06/01)

dataline July 02, 2012 5
4. Filipinos remain
optimistic
MSME/OTOP
News
1. DTI urges
microenterprises
to register businesses
2. MSMEs to compete
in BiD Challenge
Netherlands
Optimism among Filipinos in
terms of the quality of their
lives and the country’s
economy remains “high,” results
of a recent Social Weather Stations
(SWS) survey showed.
The poll, conducted from March
10 to 13, 2012, found 36% of the
respondents expecting a better life
The Department of Trade and
Industry (DTI) has urged the
microenterprises to register
with the Philippine Business Registry
(PBR) to legalize their business and
be able to avail themselves of various
government assistance.
Microenterprises include tiangges
and sari-sari stores, which are
considered part of the “underground
economy.”
Microenterprises are defined as any
business engaged in industry,
agribusiness, or services with a total
asset of P3M or less and employ one
to nine people.
The DTI has made business
registration easier with the PBR
The Habi Footwear has won
the top prize in the 5 th Philippine
Business for Social Progress
(PBSP) Business Development (BiD)
Challenge Philippines, earning for
the chance to compete in the BiD
Challenge Netherlands.
“What’s special about our products
is that we use recycled cloth for the
upper parts, while the soles are made
out of recycled tires,” Habi Footwear
Founder Albert Go said.
The firm started only as a school
project. Now, Go and his colleagues
are already able to provide income
sources for the poor families
of their partner site by using their handwoven
materials in shoemaking.
in the next 12 months while 8% said
they were expecting the contrary, for a
net personal optimism score of +28,
which the SWS classified as “high.”
The results also showed that 28%
of the respondents expect a rosier
economy in the coming year against
the 22% who felt otherwise for a net
score of +6. (PDI 06/06)
launching. Through the program,
a transaction will only take 15 to 30
minutes and will use a two-page PBR
application form.
DTI-Consumer Welfare and
Business Regulation Group
(CWBRG) Undersecretary Zenaida
C. Maglaya said microenterprises
only need to pay for the business
name (BN) registration certificate.
There are no additional charges
in applying for the Taxpayer
Identification Number (TIN) from
the Bureau of Internal Revenue (BIR),
and Employer Registration Numbers
(ERNs) from the Social Security
System (SSS), Pag-IBIG, and
PhilHealth.
Top 10 BiD PHL’s winners
• Habi Footwear: Shoes that Care
• Pineapple Fiber Production
of Batas MPC
• Donnabelle Coconut Sugar
and Syrup
• Batangueno’s Best Prime Ground
Roasted Coffee with Pandan Extract
• Haws Blend Milking Profit
from Carabao
• Deo’s Aqua VermiPonics
• Best Chevon
• Production of Prio-Bio Inoculums
for Animals and Fish
• Bamsnacks
• T’nalak of the T’boli

dataline
Business Alert
1. DTI urges exporters
to increase shipments
to Australia and NZ
2. More local
trademarks expected
BiD Challenge is an international
business plan competition that
promotes poverty reduction through
enterprise development. It started
in the Netherlands in 2004 and
was locally adapted and launched
in partnership with PBSP.
Filipino exporters were urged
to increase shipments to
Australia and New Zealand
to take advantage of a trade pact
that will lift tariffs on Southeast
Asian exports.
Department of Trade and
Industry-Bureau of Export Trade
Promotion (DTI-BETP) Director
Senen M. Perlada said Australia and
New Zealand remain to be important
markets for Philippine exports.
Australia was the Philippines’
17 th top export destination in 2011,
with 12.7-% shipment rise from USD
349.6M in 2010 to USD 393.9M
in 2011.
New Zealand, on the other hand,
was the Philippines’ 42 nd top export
market in 2011, with shipments of
USD 44.9M in 2011 from USD 32.7M
in 2010, marking a 37.2-% increase.
Filipinos and multinational firms
who would apply for trademark
registration in the country will
also be automatically registered in
other countries as a result of the
country’s Madrid Protocol
membership.
“There is no need for a Filipino firm
to apply for trademarks in other
countries,” Intellectual Property
Office of the Philippines (IPOPHL)
Director General Ricardo R.
Blancaflor said.
The accession to the Madrid
Protocol will help Filipino brands
as they expand into international
markets since financial and
Vol. 16, No. 146
Aside from the Habi Footwear,
Pineapple Fiber Production of Batas
MPC will also represent the country
in the BiD Challenge International
Marketplace this coming November.
(BWD 06/15/12)
Perlada added that Philippine exports
to Australia and New Zealand
will enjoy zero tariff by 2020
under the Association of Southeast
Asian Nations-Australia-New Zealand
Free Trade Agreement (AANZFTA).
Products to enjoy zero tariff
• Auto and auto parts
• Boats
• Chemicals
• Food items (canned pineapples
and tuna)
• Handicrafts
• Jewelry
• Minerals
• Ships
Products with less 20% tariff
• Iron
• Plastics and glass
• Upland vegetables
• Swine and poultry meat
Products with less 5% tariff
• Appliances and auto parts
• Garlic
• Goats
• Onion
administrative costs are considerably
reduced. This will also pave the way
for Filipino trademarks to be known
worldwide, Blancaflor added.
Similarly, foreign businesses
interested in establishing their
enterprise in the Philippines will be
encouraged by the ease in protecting
their marks in the country.
The Philippines was the first country
to accede this year and was the 85 th
Contracting Party to the Protocol.
The Madrid Protocol is a filing
system that facilitates the registration
of marks in several countries through
a single application filed with
the IPOPHL.

dataline July 02, 2012 7
Consumer News
1. DSWD warns public
of text scam on 4Ps
2. CeMAP reminds
buyers to check
cement labels
Feature
PHL jumps 20 notches
in WEF’s global survey
on ease of trading
IPOPHL has received a total of 6,614
trademarks application both local
and international in the first four
months of the year. The local
trademarks filings reached 3,771.
The Department of Social
Welfare and Development
(DSWD) has warned the public
of text scams involving the
government’s Pantawid Pamilya
Pilipino Program or 4Ps.
Coming from a certain Lea Ramos,
the scam text message states:
“Congratulations, President Noy-Noy
Aquino Foundation 4Ps Pantawid
Pamilyang Pilipino Program, your sim
# won P950,000 as second prize
winner in the Handog
Pangkabuhayan raffle promo, DTI
0154s’12.”
DSWD-Region 7 Information
Officer Aileen Lariba warned
the public and said their office does
not hold any raffle promos or draws.
The Cement Manufacturers
Association of the Philippines
(CeMAP) reminds the public
to check the labels when buying
cement bags or products
to ensure its quality and
type to avoid future construction
problems.
CeMAP President Ernesto M.
Ordoñez said consumers
should buy the type of cement
suitable for their construction
needs, adding that there are different
The Philippines leaped 20 steps
higher from 92 nd in 2011
to 72 nd this year, the Global
Enabling Trade Report published
by the World Economic Forum
(WEF) showed.
The report measures the factors,
policies, and services that facilitate
the trade in goods across the borders
of 132 countries. It includes the areas
of market access, border
IPOPHL also has a total of 3,823
registered trademarks, of which
the locals contributed 1,963.
The 4Ps is a human development
program that invests
in the education and health
of children aged up to 14. At least
3M poor Filipino households are now
covered by 4Ps.
Under the conditional cash transfer
of 4Ps, the government provides
cash assistance to impoverished
families.
The DSWD urges all those who will
receive this text message
to immediately report to the nearest
DSWD office or text the Pantawid
Pamilya Grievance Text Hotline
at 0918.9122813. (TPS 06/06)
types of cement for different types
of structures.
Ordoñez said knowing and
understanding cement bag labels
would assure consumers they were
buying the product suitable
for their requirements.
“It is important to look for the Product
Quality and Safety (PQS) mark for
domestically produced cement or the
Import Commodity Clearance (ICC) mark
for imported cement,” he said. (MST 06/05)
administration, transport
and communication infrastructure,
and business environment.
The country’s ranking in the area
of market access rose 50 notches
from 64 th in 2010 to 14 th this year.
“It’s been a long time coming.
We’re happy with the results. It shows
that all our efforts these past two years
are starting to pay off,” Department

dataline
ASEAN Watch
1. Doubling of Asian
fund seen
of Trade and Industry (DTI)
Secretary Gregory L. Domingo said.
Domingo attributed the improvement
in ranking to efforts to facilitate trade
across borders such as the Doing
Business in Free Trade Areas
(DBFTA) awareness campaign that
aims to help stakeholders understand
the emerging and new markets.
Other initiatives are already in place
to bring down trade barriers such as
the Association of Southeast Asian
Nations’ (ASEAN) Single Window
(ASW), which is a component
of the progressive schemes on
customs development shared
by the 10-member ASEAN bloc.
The DTI is also pursuing reforms
to improve the ease of doing
business in the country with the
launch of the Philippine Business
Registry (PBR) last January and the
Business Permit and License
Streamlining (BPLS) of local
government units (LGUs).
Members of the Association
of Southeast Asian Nations
(ASEAN) plus three Asian
countries agreed to double
the size of the Chiang Mai Initiative's
(CMI) resources.
The CMI is a fund designed to fight
liquidity crises and make the region
less dependent on entities like the
International Monetary Fund (IMF).
From USD 120B, the 10 ASEAN
members along with China, Japan,
and South Korea will increase
the pledged fund to USD 240B due
to concerns about fallout from
the debt problems in Europe.
ASEAN Secretary General Surin
Pitsuwan said the increased size
and the mere existence of the fund
were illustrations of the countries'
confidence in their neighbors.
MAB (06/03)
Vol. 16, No. 148
STATWATCH
P870B Investments target by the
government for 2012
P405.8B Investments target by the
Board of Investments (BOI) for 2012
P322.8B Investments target by the
Philippine Economic Zone Authority
(PEZA) for 2012
P26.5B Total PEZA-approved
investments in January-May 2012
P16.5B New PEZA-approved projects
in January-May 2012
P10B PEZA-approved expansion
projects in January-May 2012
USD 393.9M PHL’s exports
to Australia in 2011
USD 349.6M PHL’s exports to
Australia in 2010
USD 44.9M PHL’s exports to New
Zealand in 2011
USD 32.7M PHL’s exports to New
Zealand in 2010
325,000 Micro, small and medium
enterprises (MSMEs) registration
in 2011
125,000 MSMEs registration
in Q1 2012
17,000 Jobs to be generated by the
investments put up by 42 electronic firms
in economic zones
in January-May 2012
6,614 Trademark application received
by IPOPHL in January-April 2012
42 Electronic firms who registered their
investments with PEZA
in January-May 2012
6.4% PHL’s gross domestic product
(GDP) growth in Q1 2012

Philippine Postal Permit No. PM-04-08
dataline July 02, 2012 9
2. Malaysia eyes more
investments in PHL
What’s New?
(A synopsis of selected
book acquisitions
at the DTI-TIIC library)
Legend:
BWD - Business World
MAB - Manila Bulletin
MST - Manila Standard
PDI - Philippine Daily Inquirer
TPS - The Philippine Star
Vice President Jejomar C.
Binay said Malaysian
businessmen are excited
about the Philippines and intend
to explore more investment
opportunities in agriculture and
agribusiness, housing, finance,
tourism, and infrastructure.
Binay was in Malaysia from May 27
to 29 as head of an official delegation
that included 35 business leaders.
Binay said the revival of the
Malaysian-Philippines Business
Council, which includes some of the
Title:
National
Trade
Policy
for Export
Success
Publisher: International Trade Centre
Call Number: 07.01/ITC/2011
This book identifies the opportunities
and the challenges arising out
of the reform process to enable
all stakeholders to weigh the benefits
and costs of different trade policy
options. With cases and examples
that show how trade policy reforms
can help individual companies and
industry sectors to become more
competitive, this book is a valuable
tool for businesses, business
associations, and other stakeholders
to influence trade policy and related
regulations. It addresses five key
objective areas for export
competiveness: create competitive
infrastructure services, promote
exports and foreign investments,
move goods across borders
effectively, address export market
issues, and improve inputs and
capital goods.
big names in Malaysian business,
and the successful holding of the
Philippines-Malaysia Investment
Partnership Forum showed
Malaysia’s enthusiasm about
investing in the Philippines.
While in Kuala Lumpur, Binay
witnessed the signing of a
memorandum of understanding
(MoU) between the MTD Group
of Malaysia, the Isabela Power
Corporation, and Greenpower
Resources Corp. for the construction
of nine mini-hydro power plants in
Isabela for USD 240M. (TPS 06/05)
Title:
Export
Quality
Management
A Guide
for Small
and
Medium-
Sized
Exporters
Publisher: International Trade Centre
Call Number: 06.06.03/ITC/2011
This publication offers small
and medium-sized exporters
in developing countries and transition
economies with a comprehensive
understanding of crucial
quality-related issues linked
to the quality infrastructure.
Structured in a question and answer
format, the book answers frequently
asked questions (FAQs) by exporters
about quality, technical requirements
(standards, technical regulations,
sanitary and phytosanitary measures),
management systems, conformity
assessment (testing, inspection,
certification), metrology,
accreditation, and the World Trade
Organization (WTO) Agreements on
Technical Barriers to Trade and the
Application of Sanitary and
Phytosanitary Measures.
Editor-in-Chief: Anne L. Sevilla Managing Editor: Vic S. Soriano Associate Editor: Resty P. Par Writers: Jam A. Hourani,
Aye B. Salcedo, Elaine M. Lazaro, Emman R. Caleon Design/Layout: Ren C. NeneriaCirculation: Myrna V. delos Reyes
To subscribe, email: publications@dti.gov.ph