by admin | Jan 18, 2018 | DTI Updates, Headlines
The Department of Trade and Industry (DTI) looks to create more smarter entrepreneurs through mentoring and coaching programs with the Kapatid Mentor ME (KMME) Program.
Under the 7Ms initiative of the Department, the Kapatid Mentor ME aims to strengthen the strategy for Philippine Micro Small and Medium Enterprise (MSME) Development, which are mindset, mastery, mentoring, market, money, machines, models, propelling MSMEs to make headway in increasing the competitive market.
DTI Regional Operations Group Undersecretary Zenaida Maglaya said the agency will expand the KMME Program after a successful pilot run in 2017 with 2,663 MSMEs, finishing the 10-week mentoring program.
“When we launched KMME nationwide last year. We were able to generate 28,202 attendees. As of end of 2017, we have at least a total of 2,663 [MSME] graduates or mentees. These are the ones who have undergone 10-week session of intensive training and mentoring by MSMEs themselves,” Maglaya said, adding that the agency targets to hike the number of MSMEs assisted by 5,000 this year or 20% increase of the total attendees.
The Kapatid Mentor ME Program aims to assist MSMEs scale up and sustain their businesses through weekly coaching and mentoring by business owners and practitioners on different functional areas of entrepreneurship.
The 11-week program will have weekly modules such as Marketing, Financial Management, Human Resource Management, Operations Management among others.
For 2018, Maglaya said the agency will expand the initiative and will add coaching as part of the program.
“We will have a new program on coaching. This year, because we have more mentors, we will have the coaching program,” she explained.
“The coaching program will allow our local mentors to be in Negosyo Centers and spend two to three hours of coaching with MSMEs,” she added.
by admin | Jan 18, 2018 | National News
To continue the Department of Trade and Industry’s programs to develop Micro, Small, and Medium Enterprises (MSMEs), the government has set aside Php2 billion to aid entrepreneurs and create an entrepreneurial revolution in the country that will result in more jobs generated for Filipinos.
“We are committed in our goal of providing job opportunities for all Filipinos, and uplifting the lives of those at the bottom of the pyramid by strengthening the MSME sector in the country,” DTI Secretary Ramon Lopez said.
DTI Undersecretary for Regional Operations Group Zenaida Maglaya said the agency will tap Php1 billion to continue funding the Pondo sa Pagbabago at Pag-asenso (P3) micro loan program and another Php1 billion for the Shared Service Facilities (SSF) equipment-sharing project.
“For the Pondo sa Pagbago at Pag-asenso program or P3, we were able to get another Php1 billion this year on top of the Php1 billion last year. We hope to increase the loan packages that we were able to generate,” Maglaya said during the DTI-wide press conference on Monday.
According to Maglaya, the loan released nationwide under the P3 program reached Php 1 billion, funding 38,425 beneficiaries with almost 100% re-payment rate.
DTI has funded Php 820 million worth of loans through the P3 program and assisted 20, 425 micro entrepreneurs. In addition, the Center for Agriculture and Rural Development (CARD), a partner of the government in the program, released Php 230 million loans from its funds for 18,000 micro enterprises.
The flagship micro loan program aims to provide alternative micro financing to entrepreneurs, who usually borrow from usurious loan sharks. The program will help negate the 5-6 lending scheme.
Maglaya said that the agency is looking to cover all provinces in the country, adding that there are still 20 provinces in the country that have to be reached by the program due to lack of local conduits.
P1-B for SSF
On the other hand, the agency will also fund Php1 billion for its equipment-sharing facility program SSF to provide MSMEs access to technology, machinery, equipment, tools, systems, skills and knowledge under a shared system.
Maglaya said the Php1 billion will be allocated to the following: Php400 million for State Universities and Colleges (SUCs) and Php50 million for the Marawi rehabilitation. The remaining fund will help put up more SSFs and maintain other equipment.
Maglaya also noted that the agency has tapped SUCs, through Fabrication Laboratories or Fablabs, to develop more MSMEs and help young entrepreneurs in terms of innovation and prototyping technologies and software for their products and design.
“We’re looking at how SUCs, academe can help in developing and assisting our MSMEs as well as be able to develop young entrepreneurs in schools,” she explained.
Fablabs aim to enhance the core competencies of existing manufacturers and emerging entrepreneurs in digitally-enabled manufacturing workflows guided by art and design principles.
Likewise, to hasten the rehabilitation and recovery of war-torn Marawi City, the agency will provide equipment and machinery to affected internally displaced persons (IDPs) to expand the market-reach of Maranao products.
“We’re looking at reviving the industries like weaving, wood working and brassware. We will provide SSFs for our brothers and sisters in Marawi,” Maglaya said.
So far, the agency has established 2,222 SSFs worth Php1.188 billion throughout the country, benefitting 215,628 existing and potential MSMEs and providing 111,747 jobs to Filipinos.
With access to better technology and more sophisticated equipment, MSMEs will have higher productivity, better and efficient products, higher levels of innovation and creativity, and improved market access to address the gaps and bottle necks in the global value chain being faced by MSMEs.
Philippine MSMEs account for 99.5% of the total number of established businesses and employ 62.8% of the country’s workforce, contributing substantially to the country’s manufacturing output and total employment and making it critical engines of economic growth and development.
by admin | Jan 15, 2018 | Business, DTI Updates
The Government’s Inter-agency Task Force on Ease of Doing Business (EODB) is speeding up reforms to improve the country’s competitiveness.
DTI Secretary Ramon Lopez reported that the strategy is to pursue a whole of government approach where all instrumentalities of government involved in business regulations are taking unified action in simplifying government processes and making them more business-friendly.
“Remember that Competitiveness and Ease of doing business is number 3 in the President’s socio-economic agenda. The executive branch, both National government agencies, and Local Government Units, and the legislative branch are working double time so that businesses could benefit from these reform initiatives.” DTI Secretary Ramon Lopez said.
The DTI Secretary reported on the latest reforms initiated by the Executive Branch
- In November 2017, the Securities and Exchange Commission implemented the Company Registration System (CRS) which significantly reduced the processing time and procedures in company verification and registration. The system also integrates the issuance of Taxpayer Identification Number (TIN), and employer numbers from Social Security System (SSS), Pag-IBIG Fund, and Philhealth.
- In December 2017, Quezon City Mayor Herbert Bautista issued an order establishing One-Stop Shops (OSS) for business permits which will facilitate registration of new businesses. The OSS is now operational at the QC Hall.
- To speed up the issuance of construction permits, the Departments of Public Works and Highways (DPWH), the Interior and Local Government (DILG), and Information and Communication Technology (DICT) and the DTI issued a joint circular which prescribed standards and procedures in the issuance of building permits, certificates of occupancy and other construction-related permits.
A unified employee enrollment form and system will soon be implemented by the Social Security System, Pag-IBIG and Philhealth for new corporations registered with the Securities and Exchange Commission that will consolidate enrollment of new employees at a single portal or at any one of the social security agencies.
The DTI Secretary expressed confidence that Congress will soon pass the Expanded ARTA/EODB bill which will significantly address red tape, and expedite business related transactions in the country. Secretary Lopez mentioned other important legislation such as the amendment of the Corporation Code, the passage of the Secured Transactions Act, which will improve Philippines ranking in Starting a business and Getting Credit indicators in the Doing Business Survey, respectively.
DTI also noted reforms in the judicial branch. The full implementation of the e-Court system by the Supreme Court is seen to enhance the Philippines’ Enforcing Contracts scores. We are looking forward to the issuance by the Supreme Court of the guidelines on e-notarization also expected to create positive results in the competitiveness ranking.
Last year, the Philippines slipped 14 notches to 113th rank in the Doing Business report published by World Bank-International Finance Corporation. It measures the ease of doing business across ten processes which a firm must undertake over its typical life cycle.
“Reforms must happen across government to achieve our goal to become top 20% in world rankings by 2020”, according to Secretary Lopez, Chair of the Doing Business Task Force.
by admin | Jan 15, 2018 | DTI Updates, National News
The Department of Trade and Industry sees improvement in the ease of doing business in the country, with the implementation of the Joint Memorandum Circular (JMC) directing local government units (LGUs) to streamline the issuance of building permits and certificates of occupancy.
For the first time, the JMC 2018-01, which was issued by the Departments of Public Works and Highways (DPWH), Interior and Local Government (DILG), Information and Communications Technology (DICT) and DTI, sets service standards for processing simple applications for construction-related permits. This is in response to President Duterte’s call to simplify the issuance of permits by LGUs in support of the Build Build Build! Program of the government. The JMC covers single dwelling residential buildings of not more than three floors, commercial buildings of not more than two storeys, renovation within a mall with issued building permits and warehouses storing non-hazardous substances.
As prescribed in the circular, LGUs are enjoined to set up a processing system that will ensure that applicants follow a four-step procedure in securing building permits – submission of application with complete documentation, receipt of the order of payment, payment of fees and claiming of the permits. Processing time by LGUs is reduced to five (5) working days maximum, while that for BFP permits is limited to not more than three (3) days for building permit applications. The same number of steps and processing time are prescribed for applications for certificates of occupancy. The JMC also recommended a pre-formatted form and a uniform set of documentary requirements, and a one-time assessment and one-time payment of fees, with the latter eliminating the current practice of separately paying for different construction-related documentary clearances in different LGU offices and the BFP.
To be able to comply with the service standards, the government is mandating LGUs to establish one-stop shops that will consolidate the processing of clearances issued by LGUs related to construction permits, such as building permits, certificates of occupancy, locational clearances, tax declaration, tax clearances, certificates of final electrical inspection as well as those required by the Bureau of Fire protection – the Fire Safety Evaluation Clearance and the Fire Safety Inspection Certificate. To be able to do this, representatives from the Office of the Building Official (OBO), Treasury Office, Zoning Office, Assessor’s Office of the LGU, and Bureau of Fire Protection (BFP) will be co-located in one area at the LGU. Joint inspection teams will also be organized to ease the burden of applicants in accommodating multiple inspections by different offices before their certificates of occupancy are released.
DTI Secretary Ramon Lopez, who chairs the National Competitiveness Council and Doing Business Task Force, is confident that the recently signed circular will bring significant results in the Philippines’ ranking in Doing Business Report.
“We fervently support the implementation of this circular, as it strengthens our previous efforts to eliminate red tape. Now that JMC 2018-01 is in place, we look forward to improved ease of doing business and better performance in Doing Business rankings.” Secretary Lopez said.
Last year, Philippines dropped 14 notches to No. 113 in Doing Business Report published by World Bank-International Finance Corp. Particularly, the country ranked No. 101 in Dealing with Construction Permits.
Following the drastic process re-engineering that LGUs will be undertaking as a result of the JMC, the Secretary is also persuading the cities, especially those in highly urbanized areas, to start developing a web-based system for online submission and processing of construction-permits similar to the processes already being implemented by some ASEAN countries. This is also in line with the JMC which enjoins LGUs to automate procedures, including the mode of payment, with the support of DICT.
by admin | Jan 15, 2018 | National News, Tech Talk
The Department of Trade and Industry lauds the efforts and strong commitment of the Quezon City Government in streamlining its operations to speed up the processing of business registration and construction-related permits.
DTI Secretary Ramon Lopez, Chair of the government’s Inter-agency Task Force on Ease of Doing Business, explained that the drastic process re-engineering in Quezon City, the LGU with the most number of businesses, is critical because it is the sample city included in the Doing Business Survey, conducted yearly by the World Bank, to gauge the overall competitiveness of the Philippines as a nation, using the cost and ease of doing business as a criterion.
QC Mayor Herbert Bautista issued Executive Order 11 on December 22, 2017 mandating the creation of One-stop Shops, where new businesses can file and pay their application for business permits, including Fire Safety Inspection Certificates, following a 2-step procedure where applicants can get their permit in less than two hours. Applicants need not to go to different offices to obtain business permit and other clearances and but instead transact in a single location.
“The EO signed by the Local Chief Executive provides for reduction in the steps and requirements, and the use of automation. But we need to leapfrog. The effort of the QC shall be complemented by efforts in the national level. Together with the DICT, we are looking at developing a fully electronic registration process using Smartphone App. This is an excellent opportunity for the Philippines to become one of the first countries to adopt a business registration process that can be completed (end to end) on a smart phone”, Lopez said.
Similar with business permits, a one-stop shop dedicated for construction-related permits is also being established, which will co-locate the different city/municipal offices that process building permits and certificates of occupancy, headed by the Office of the Building Official, and the Bureau of Fire Protection (BFP) in one place. This is expected to be operational by end of February 2018.
These reforms are seen to significantly improve Philippines’ ranking in Doing Business (DB) Report, where the country dropped 14 notches to No. 113 last year. For Starting a Business indicator, Philippines recorded a dismal No. 173. Quezon City, with an estimated 74,000 registered establishments, represents the country in the survey.
