DTI distributes livelihood packages, extends 0%-interest microfinance loans to Marawi IDPs

ILIGAN – The Department of Trade and Industry (DTI) awarded 1,500 livelihood packages as well as 0%-interest microfinance loans to the internally displaced people (IDP) of the Marawi siege during the DTI Negosyo Seminar Para sa Marawi on 30 January 2018.

“We want to assure the IDPs that President Duterte’s administration continues to provide more business and livelihood opportunities through the DTI Negosyo Seminars being given to help them recover soon,” said DTI Secretary Ramon Lopez.

There were 1,500 participants and beneficiaries who attended the Negosyo Seminar. One of them was Mr. Alikman Nata, who intends to share the benefits of the livelihood package to his group, the Lanao Muslim Youth Association.

As the head of Bangon Marawi’s Subcommittee in Business and Livelihood, DTI had earlier distributed 588 livelihood packages and conducted Negosyo trainings to 1,963 IDPs as of December 2017. There were also 240 beneficiaries who were linked to financial institutions.

The Department also allocated Php 50 million this year to fund the Shared Service Facilities (SSF), providing Maranao entrepreneurs with facilities and knowledge that match their business needs. This is apart from the budget provision to support other Bangon Marawi programs in providing mobile rice mills, tricycles, vehicles, and the construction of public markets.

DTI flew in different business experts to teach business preparedness, opportunities spotting, product development and marketing, financial literacy, and franchising.

Gov’t earmarks Php2-B  for MSME development

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.

Joint Memorandum Circular (JMC) to Speed up Issuance of Construction-related Permits Signed

 

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.

DTI Hails Quezon City Government for Major Streamlining Efforts; full electronic registration process using  MOBILE APPS pushed

 

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.

PH merchandise exports sustain growth, up by 10.79%

Recent preliminary report from the Philippine Statistics Authority (PSA) showed that Philippine merchandise export performance continued on a positive trajectory increasing by 10.79% in the first 11 months (January to November) of 2017 compared to the same period in 2016, an analysis confirmed by the Department of Trade and Industry (DTI).

From January to November 2017, the value of merchandise exports was shared almost evenly by electronics and non-electronics with 51.38% and 48.62%, respectively.

Exports of Philippine electronic products increased remarkably by 10.84% in the first 11 months of 2017.  This was achieved on the back of the robust performance of six out of the nine subsectors of the industry which contributed 97.95% share in the cumulative total value of the industry.

Meanwhile, non-electronic goods also increased significantly by 10.73% in the first 11 months of 2017, backed by positive growth of a wide range of sectors in the non-electronics category.  Topping the list were Forest Products with triple-digit growth of 560.90%. Other contributing commodities exhibited double-digit increases including mineral products (76.12%), sugar and products (47.77%), footwear (47.43%), coconut products (37.61%), non-metallic mineral manufactures (32.17%), and furniture and fixtures (26.27%). Exports of garments also increased by 3.00%, while Travel Goods and Handbags at 1.53%.

“The increase of exports sales for some non-electronic goods this year may be viewed as a result of the sector-focused intervention included in the 2015-2017 Philippine Export Development Plan (PEDP),” said DTI Trade and Investments Promotion Group Undersecretary Nora K. Terrado.

The leading destination of PH merchandise exports for the first 11 months of the year was still the combined markets of PROC and HK SAR. Shipments to this combined market, with a share of 24.49%, increased by 20.99% in value. The next leading destination is Japan with 16.42% share, followed by United States of America (USA) with 14.60% share in total exported goods.

Exports to other top 20 trade partners of the Philippines also showed double-digit growths, ranging from 10.13% to 66.36% YTD; and from 16.00% to 56.75% YOY.

Meanwhile, exports to the United Arab Emirates expanded by 26.96% YOY and 103.6% YTD, respectively.  However, these countries account for very small shares in PH exports, ranging from shares of only 0.56% to 2.53% of total PH exports.

The DTI, through its Export Marketing Bureau, implements various programs that assist and cater to the needs of Philippine exporters across the country

DTI-ROG trumpets 2017 achievements,   presses for more MSME initiatives

 

The year 2017 was remarkable for the Department of Trade and Industry – Regional Operations Group (DTI-ROG) for its efforts in providing the much needed help to micro, small and medium enterprises (MSMEs) even as it vowed to step up efforts in 2018 for the betterment of local entrepreneurs.

DTI Regional Operations Group supervising Undersecretary Zenaida Maglaya said the agency will continue elevate its performance from the previous years to encourage more Filipinos to venture into business, resulting to more jobs.

“As part of the Trabaho at Negosyo agenda of the administration, we are proud to inform the public that the Regional Operations Group (ROG) in 2017 has worked with tireless enthusiasm with various partner agencies to support the growth of MSMEs in the country, with the establishment of the ever-increasing number of launched Negosyo Centers, established Shared Service Facilities and especially the landmark Pondo sa Pagbabago at Pag-asenso (P3) Program,” Maglaya said.

Stressing that these initiatives of focusing on MSMEs will eventually result to more entrepreneurs, Maglaya said that employment and inclusive growth will follow, adding that the Regional Operations Group “would continue foster partnership between MSMEs, development partners, and the government.”

Among the many milestones of the Regional Operations Group are the release of loans to micro entrepreneurs through the P3 program, establishment of more over 700 Negosyo Centers throughout the country, Shared Service Facilities (SSF), creating smarter entrepreneurs through the Kapatid Mentor Me Program, mounting of Diskwento Caravans, SME Roving Academies (SMERA), Agrarian Reform Communities (ARCs), the assistance to typhoon Yolanda victims through the Livelihood Seeding Program, National Industry Clustering, among others.

The Pondo sa Pagbabago at Pag-asenso (P3) Program, the administration’s flagship program that aims to topple 5-6 lending scheme, has assisted 20,425 micro entrepreneurs, with a total of P812.12 million loans released.

The P3 program has also started in providing assistance to entrepreneurs who are affected by the Marawi siege with a total of P375,000 loans released to 37 Maranao entrepreneurs.

Maglaya said the Pondo sa Pagbabago at Pag-asenso (P3) Program is a huge relief for micro entrepreneurs who usually are vulnerable to loan sharks.

Likewise, the agency has also established more Negosyo Centers with already a total of 718 centers throughout the country.

Maglaya said that more Filipinos are now realizing the importance of putting up a business as reflected in the number of Negosyo Center clients assited with a total of 614,417 entrepreneurs.

With more MSMEs turning to Negosyo Center for assistance, Maglaya attributed the entrepreneurship surge to the agency’s continuing drive to introduce entrepreneurship as a steady source of income, while also recognizing the agency’s partnerships with other national government agencies, and non-government organizations (NGOs), local government units, and big corporations.

The Republic Act No. 10644 or the Go Negosyo Act aims to help micro, small and medium enterprises (MSMEs), promote ease of doing business, facilitate access to grants and other forms of financial assistance, Shared Service Facilities (SSF) and other equipment, and other support for MSMEs through national government agencies (NGAs), ensure management guidance, assistance and improvement of the working conditions of MSMEs; and facilitate market access and linkaging services for entrepreneurs.

Meanwhile, the Shared Service Facility (SSF), which provides MSMEs access to technology, machinery, equipment, tools, systems, skills and knowledge under a shared system, continues to increase 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.

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.

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 emphasized that the agency will continue with these initiatives “to bring the development to the countryside.”

Maglaya assured the agency will intensify its programs for MSME development by continuing its initiatives of uplifting the MSMEs and by continuing to raise the bar of service to the Filipino public.

“The ROG will continue to support MSMEs in facing challenges concerning business environment, productivity and efficiency, and access to finance and market as we continually strive to improve our brand of service to the public,” she said.