by admin | Dec 7, 2017 | Business, DTI Updates, Headlines
MAKATI – The Department of Trade and Industry (DTI) successfully conducted the Manufacturing Summit 2017 on 29 November 2017 at Fairmont Makati, bringing together more than 250 stakeholders from the private sector, industry associations, business chambers and stakeholders from the government and academic and research community.
Taking off from the 2016 Manufacturing Summit, which focused on “Trabaho at Negosyo” for inclusive growth, this year’s Summit highlighted the remarkable performance of the manufacturing industry, the accomplishment of DTI’s Manufacturing Resurgence Program, and the country’s new industrial policy dubbed as Inclusive Innovation Industrial Strategy (i3S).
The i3S aims to grow and develop globally competitive and innovative industries with innovation at the front and center of industrial policies and programs supported by pillars consisting of building new industries, clusters, and agglomeration. These will also ensure Micro, Small, and Medium Enterprise (MSME) growth and development, human resource development, and improving ease of doing business and the business environment.
“With intense competition due to rising globalization, regional economic integration, and disruptive technologies, innovation is crucial for the inclusive and sustainable growth of the economy, particularly manufacturing,” said Trade Secretary Ramon Lopez.
“Our vision is for the Philippines to have creative and connected communities of different stakeholders like innovators, start-ups, SMEs, and large enterprises that will collaborate to produce new products and services,” Sec. Lopez said.
Moving forward, the Trade Chief indicated that DTI will focus on three major strategic actions: establish i3 zones or parks without walls, where universities and industrial hubs could work together and collaborate on innovation initiatives; using fiscal and non-fiscal support to promote local manufacturing of key products that are heavily imported like pharmaceutical products or medical devices; and continue the collaboration with industry, academe, other government agencies and stakeholders in building the inclusive innovation ecosystem.
To encourage more investments and change in mindset, i3S would provide incentives on R&D and innovation, as well as tax deductions on trainings and workers’ skills upgrading. There will also be business matching, exhibits, and trade fairs.
Sec. Lopez shared that the establishment of domestic ecozones is vital in building industry clusters that can provide a fertile environment for innovation and inter-firm cooperation leading to competitiveness improvements. Incentives to be provided in domestic ecozones will be rationalized, with applicable domestic taxes like value added and excise will be paid by locators just like other companies located outside domestic ecozones.
“DTI will continue to fine tune the i3S, refine it to fully embed and integrate innovation, and ensure that new technologies can be applied to reduce poverty and promote shared prosperity for all,” Sec. Lopez declared.
by admin | Dec 7, 2017 | DTI Updates, Headlines
Micro entrepreneurs throughout the country will get more aid to fund their businesses as the National Government, through the Small Business Corporation (SB Corp.), the micro-financing arm of the Department of Trade and Industry (DTI), will set aside P1 billion for year 2018 to continue the flagship program that will provide micro enterprises an alternative source of financing that is easy to access and made available at a reasonable cost.
“The President has vowed to provide affordable micro-loans for micro entrepreneurs and we are here to deliver this promise through the Pondo sa Pagbabago at Pag-asenso (P3),” DTI-Regional Operations Group Undersecretary Zenaida Maglaya said.
The Pondo sa Pagbabago at Pag-asenso (P3) program is a P1 billion financing program intended to give MSMEs better access to finance and to reduce their cost of borrowing and battle loan sharks preying on micro entrepreneurs. The fund will also give priority to the country’s 30 poorest provinces.
Initially, the P3 Program was launched in Tacloban in Leyte on January 25, San Jose, Occidental Mindoro on January 27, and Alabel, Sarangani last January 30 and was launched nationwide in April, with an initial funding of P850.0 million, making available lower cost loans to Filipino micro entrepreneurs who are engaged in small business such as sari-sari stores and are vulnerable to usurious lenders in the absence of an alternative source.
Maglaya explained that through the P3, micro entrepreneurs can find relief from overly expensive borrowings and afford cost-efficient and affordable form of loan to add and expand their businesses.
“Through the P3, sectors can find relief from overly expensive borrowings as they pursue their livelihood activities,” Maglaya said.
As of November 24, 2017, a total of 16,210 micro entrepreneurs have been aided by P3 with four national micro finance institutions (MFIs) and 90 local conduits assisting in delivering the micro-loans in the countryside while 45 MFIs are in the pipeline. A total of P485.41 million has been released to partner conduits and P307.80 million released to microfinance borrowers.
Following President Rodrigo Duterte’s directive to replace the “5-6” money lending system, the P3 is also seen to help stabilize supply and cost of commodities in public markets, encourage small entrepreneurs to grow their businesses, and offer employment and generate income for Filipinos.
The P1 billion fund of the P3 program from the Office of the President will be coursed through the SB Corp., which will accredit partner institutions such as non-bank MFIs, cooperatives and associations to serve as conduit for the P3 funds. With borrowers identified through these, collection of repayments will be efficient.
“We’re very grateful that this program has come into fruition, so we can help micro entrepreneurs who are at the bottom of the pyramid and create an entrepreneurial environment in the countryside that will also generate jobs for Filipinos,” Maglaya said.
The primary beneficiaries of the P3 Program are microenterprises and entrepreneurs that do not have easy access to credit. These include market vendors, agri-businessmen and members of cooperatives, and industry associations.
P3 will also make it easy for borrowers since it will only require minimal documentation requirement; easy to access with only one (1) day processing of application; low cost interest at 2.5% per month; and easy payment with collection on a weekly or daily basis, as necessary.
Under the P3 Program, a micro enterprise can borrow between P5,000 up to P100,000 depending on its business need and repayment capacity with no collateral requirement. Interest rate and service fees, all in, do not exceed 2.5% monthly, which is a huge relief from the 20% monthly rate under the 5-6 loan system
by admin | Dec 6, 2017 | DTI Updates, National News
The Department of Trade and Industry (DTI) will continue to provide equipment sharing facilities for micro, small and medium enterprises (MSMEs) as part of the agency’s drive to contribute in the administration’s Trabaho at Negosyo agenda.
“For us to contribute in providing jobs, encourage Filipinos to do business and spur economic activity in the countryside, we will provide more Shared Service Facilities (SSFs) to help MSMEs produce fast and efficient products that are proudly Filipino-made and export quality,” DTI Undersecretary Zenaida Maglaya said during the Shared Service Facilities (SSF) Project Summit on December 5, 2017.
The SSF Project is DTI’s program that provides MSMEs access to technology, machinery, equipment, tools, systems, skills and knowledge under a shared system. 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.
The equipment-sharing program also increases capabilities of both manufacturing and agriculture-based MSMEs to enable them to develop capacity and a culture of quality.
“The key to inclusive growth is our MSMEs. With the shared service facility, MSME cooperatives and entrepreneurs are provided with sophisticated equipment and machinery that will double their production and help them come up with export-ready products,” Maglaya explained.
As of October 31, 2017, DTI has provided MSMEs with 2,222 SSFs worth P1.188 billion throughout the country, benefitting 215,628 existing and potential MSMEs and has provided 111,747 jobs to Filipinos. SSF beneficiaries include cooperatives, associations or groups of MSMEs including MSMEs or individual entrepreneurs.
As backbone of the Philippine economic growth, MSMEs has since become a major priority of President Rodrigo Duterte, with DTI placing the sector’s development at the front and center of its Employment and Entrepreneurship (Trabaho at Negosyo) agenda.
Maglaya also emphasized that “aside from keeping the country moving towards a more strategic direction at the backdrop of regional development, the government vows to sustain meaningful growth that is truly inclusive—the one that reaches the bottom of the pyramid.”
Also under the SSF Project, DTI also established Fabrication Laboratories throughout the country which aims to enhance the core competencies of existing manufacturers and emerging entrepreneurs in digitally-enabled manufacturing workflows guided by art and design principles.
Through the Fabrication Laboratory, MSMEs, aspiring entrepreneurs and students are provided with innovation, prototyping technologies and software for their products and design.
Currently, there are 12 Fabrication Laboratories in the country operated by schools, institutions or centers. The Fablabs are located and cooperated by the Bohol State University in Bohol; Philippine Science Highschool Central Luzon Angeles City, Pampanga; Local Government Unit in Santiago City, Isabela; Don Honorio Ventura Technological State University in Bacolor, Pampanga; Philippine Science Highschool – Ilocos Region Campus San Ildefonso, Ilocos Sur; University of the Philippines (UP) Cebu City; Bicol University, Legaspi City Albay; Mindanao State University – Iligan Institute of Technology Iligan City; Philippine Footwear Federation, Inc. Marikina City; University of the Philippines College of Fine Arts, Diliman, Quezon City; Zamboanga Polytechnic College; and Mindanao Trade Expo Foundation, Davao City.
The SSF Program is part of the Philippine MSME Development Plan to encourage the graduation of MSMEs to the next level where they could tap a better and wider market share and be integrated in the global supply chain.
“We will continue to push significant interventions to support the growth of MSMEs and build a climate conducive to business and innovation. We will continue to provide the necessary services to help entrepreneurs thrive and even expand your businesses in an increasingly competitive market. We will continue to implement,” Maglaya said.
by admin | Dec 4, 2017 | DTI Updates, Headlines
The Department of Trade and Industry-Export Marketing Bureau (DTI-EMB), in collaboration with the Philippine Exporters Confederation, Inc. (Philexport) and Export Development Council (EDC), has lined up activities in celebration of the National Exporters’ Week (NEW) on 01-07 December 2017 with the theme “Innovate. Collaborate. Export!” The NEW is an annual event as stipulated under Presidential Proclamation 931, series of 1996 and House Resolution 33, declaring the first week of December as Exporters’ Week. It targets to obtain the full commitment of the government and the private sector to continuously work together to sustain and maintain export promotion and development.
The celebration starts with the opening of the NEW Bazaar at the DTI International Building, along Sen. Gil Puyat Avenue, Makati City. It will run from 04 to 15 December, except on weekends. On the same day, the Philexport will hold its Regional Consultation at the Manila Pavilion Hotel and Casino in Ermita, Manila.
On 05 December 2017, over 700 delegates including exporters, business support organizations, policy makers, and academe will convene at the Philippine International Convention Center (PICC), Pasay Manila for the annual National Export Congress (NEC). This year’s NEC, the highlight of the NEW celebration, aims to promote a business environment that will inspire exporters to do more innovation and collaboration to reinforce their entrepreneurial capabilities.
“With the rise of changing global economies and various technological advancements, more than ever, exporters face tremendous challenges in various fronts. Hence, the Philippine export community is aggressively gearing up to hold the NEC. The community expects to mark another milestone for Filipino exporters,” EMB Director Senen M. Perlada said.
Also part of the week-long NEW celebration is the conduct of Usapang Exports, an information session under the DTI-EMB’s Philippine Export Competitiveness Program (PECP), at St. Giles Hotel in Makati City on 06 December.
On 07 December, an informative seminar on the basics of exporting will be held at the Pinnacle Hotel in Davao City.
Earlier, DTI-EMB held the first two runs of Usapang Exports in Cebu on 21 November and in Davao on 23 November.
by admin | Nov 21, 2017 | DTI Updates, Headlines
The Department of Trade and Industry (DTI) issued a revised Department Administrative Order (DAO) on cement importation to ensure consumer protection through compliance on quality standard procedure. This allows pre-shipment test in select and accredited testing centers from the country of origin to facilitate ease and fast importation process, while ensuring standard compliance.
“The pre-shipment testing will avoid delays in import supply which augment the cement requirement for the ongoing infrastructure projects. However, there will still be local verification tests, including sampling prior to its release to the market,” said DTI Secretary Ramon Lopez.
In the revised DAO, the distinction between the regular trader importers from integrated cement producer (ICP) importers was removed and both are now subject to the same import procedures including the option to do pre-shipment testing.
“We are also helping the importers avoid unnecessary freight through the pre-shipment test. Right at the country of origin, they will be informed if their products will be acceptable or not in the Philippines (PH),” the trade chief added.
The local verification test or the post-shipment test will confirm the compliance to the standards of the products. Importers whose shipments passed the pre-test but would fail the local verification test will be disqualified from doing pre-shipment testing in the future. Likewise, the foreign testing center from the country of origin involved in the approval of the products will be blacklisted.
“These amendments will ensure that quality cements get into the PH market and support quality infrastructure development under the Build Build Build program,” Sec. Lopez concluded.
by admin | Nov 16, 2017 | DTI Updates, Headlines
The Department of Trade and Industry will demonstrate the massive potential of the grassroots level in Region 7’s food and non-food industries with the mounting of the One Town One Product (OTOP) Premium Product Showcase at the Paseo Solana, Ayala Center Cebu on November 17 – 19.
DTI Central Visayas Regional Director Asteria Caberte said the event will feature products of local micro, small and medium enterprises (MSMEs) from Central Visayas that have undergone product development workshops conducted by the department under the OTOP Program.
Caberte added that MSMEs participating in the OTOP Premium Products Showcase will also supply products for the Go Lokal stores, Tindahang Pinoy, trade fairs and other market access platforms used by the DTI.
The DTI official explains that the current OTOP Program is a leveling up process that focuses on new variations, better products that have significant improvement in the areas of quality, design, standards, compliance, marketability and production quality.
Around 100 MSMEs in Central Visayas took part in the recent OTOP Next Gen Screening, Assessment and Triage (SAT) sessions in Cebu City where experts from the Design Center of the Philippines and from the private sector evaluated potential OTOP products.
The One Town, One Product (OTOP) Philippines is a priority stimulus program for Micro and Small and Medium-scale enterprises (MSMEs) as government’s customized intervention to drive inclusive local economic growth. The program enables localities and communities to determine, develop, support, and promote products or services rooted in its local culture and competitive advantage. As their own ‘pride-of-place,’ these are offerings where they can be the best at or best renowned for.
OTOP Next Gen is the Department’s program to enhance MSME products and services. Building from the gains of OTOP first generation, this initiative aims to offer a package of public-private assistance in order for MSMEs with minimum viable products to come up with new or better offerings with significant improvement and innovation in the areas of quality, product development, design, standards compliance, marketability, production capability, and brand development, among others.
OTOP Next Gen also embarks on the technological upgrade of production processes and design to help ensure sustainability of supply, by combining various elements, re-engineering design or process; or building more advanced skills and capabilities. This is where close collaboration with the Department of Science and Technology and the Department of Agriculture will play a pivotal role to catapult our MSMEs on the road to innovation-led growth
