Oscar Sañez, executive director of the Business Process Outsourcing Association of the Philippines, confirmed the study’s findings that this year alone, the sunrise industry is trying to fill up 100,000 new jobs and another 30,000 vacated last year by those who resigned for jobs abroad.
In the construction industry, the study found that there are up to 50,000 engineers, architects and highly skilled workers needed from carpenters and welders to pipe fitters.
In the tourism industry, the demand for jobs was estimated at 500,000 for hotel, restaurants, travel and other related fields.
Labor secretary Marianito Roque added that there really are jobs that are hard to fill up. The rarest applicants are openings for jewelry assayer, geologists and pharmacists.
Highlighting the reasons behind the mismatch, Roque said that based on actual surveys in the local job market, the five main causes of job mismatch include lack of competency of applicants, lack of experience, demand for higher pay, exodus of the best qualified to better paying jobs abroad and lack of official certification of confirmed skills. -- Abe P. Belena, PHILEXPORT News and Features <--back
2. Slow progress in WTO talks on agriculture trade
There is very little progress in World Trade Organization (WTO) talks in further opening up trade in farm products.
There may be further informal and technical discussions this year but it is doubtful if talks on farm trade could catch up with those on non-agricultural products.
This, in capsule, was the report of Philippine negotiators to businessmen in a recent update conference on what is happening in Geneva where most of the negotiating is done.
The draft agreement has been revised four times reflecting whatever marginal progress achieved in a few elements.
Asked during the open forum, the Philippine negotiating team admitted that the biggest stumbling block is still the hesitance of the United States to drastically cut government subsidy to its agriculture sector.
Europe has indicated its willingness to cut farm subsidy but no positive signal has been received from the United States yet, the biggest destination of Philippine food products.
This situation may even get worse during the Obama administration which has announced a strong protectionist direction in its economic stimulus package.
In a further interview with the PNF, the agriculture negotiators admitted that despite WTO and Philippine compliance to expensive treatment of mango fruits for export, the United States has not lifted its ban on mango imports, except those from the province of Guimaras.
The same existence of barriers to trade on tuna exists in Europe where Philippine tuna is slapped 24 percent tariff, while other former European colonies in the Caribbean and Africa are given almost zero tariff.
These problems came about, the negotiating team revealed, due to the neglect of previous trade negotiators which the present team are now trying to correct. -- Abe P. Belena, PHILEXPORT News and Features <--back
3. RP must pursue sectoral trade talks instead of pinning its hopes on an APEC-wide free trade
The forging of a free trade agreement for the Asia-Pacific (APEC) region is very hard to sell to member countries.
The Philippines must instead look for more practical trade arrangements and thus, it is worth revisiting sectoral liberalization.
This was the suggestion of University of Asia and the Pacific economic professor George Manzano in a paper he delivered before the Philippine APEC Study Center in a forum held at NEDA Makati the other day.
A related study made by UPLB professor Primo Rodriguez showed that if the Philippines joins an APEC free trade agreement, its gross domestic product will only grow by half to less than one percent, while government import duty earnings will be substantially cut.
Manzano argued that a Free Trade Agreement for the Asia-Pacific region is not feasible due to the sheer number of countries involved from South and North America to mainland Asia.
Those heterogenous countries have divergent priorities and approaches to treaties. For example, some countries consider their telecommunications sector as a national security sensitive issue that could not be opened to foreign investors.
Another reason is the persistence of sticky issues between potential trade partners, sensitive political dynamics among members and weak political stability in some countries.
A better option for the Philippines, Manzano said, is for it to negotiate for sectoral liberalization under the general Most Favored Nation (MFN) rule of the World Trade Organization.
He suggested that the country could start with electronic products to help the local industry recover faster when the global recession ends.
In an interview, Manzano said that electronics is dominantly produced, assembled and sold in the APEC region. As such, it will be safe to liberalize its trade across all member countries.
By its very nature of being based mainly in APEC member countries, further liberalization of electronics in the area would not be vulnerable to what he called “free riders” or economies that refuse to open their home markets but take advantage of opened markets elsewhere.
A couple of years back, Philippine negotiators sounded up to the United States the possibility of a sectoral approach to bilateral talks, with garments as the product. The US, however, turned down the sectoral approach and said it prefers a broader bilateral economic talks with the Philippines instead.
Manzano said that the US decision was possibly aimed to protect its garments and textile industry against cheaper imports. -- Abe P. Belena, PHILEXPORT News and Features <--back
4. Exporters may push drafting of EO suspending VAT on products sold locally
Exporters may push for the drafting of an Executive Order suspending the collection of value-added tax (VAT) on products sold locally for one year, a move deemed crucial to help the struggling industry players cope with the impact of the global financial crunch.
“PHILEXPORT will consider that. We will take this up with the EDC (Export Development Council),” said PHILEXPORT trustee of fashion accessories Luis Sicat.
Sicat said an EO is a better option than a Congressional act, citing the “urgency” of industry’s existence as the crisis continues to weigh heavily on the global economy.
He said exporters can survive the crisis with such assistance that could be provided to them even for a period of one year.
“We are unable to get orders from our buyers abroad. Our very serious alternative is to sell locally, but it is still taxable,” he noted.
This option emerged following the admission of a Bureau of Internal Revenue (BIR) official that the agency has no choice but to implement the VAT law.
“The BIR will follow whatever will be the law, but if it would be an Executive Order or act of Congress, of course, we will implement accordingly,” said Grace Evelyn Lacena, chief of BIR’s Audit Information, Tax Exemption and Incentive Division.
This was shared by Commissioner for Assessment and Operations Coordinating Group Atty. Caesar Corpuz who said the Bureau of Customs (BoC) could not grant any request to waive payments of duties and taxes for export products to be sold locally.
“Our hands are bound by law especially regarding the storage and liquidation period stipulated in the Tariffs and Customs Code. If ever there would be a moratorium, I think, Congress would have to act on this matter,” he said.
A window may be possible, he said, through an EO in the absence of a Congress in session. But Corpuz informed exporters that in the meantime, they can request for staggered payments of these duties and taxes.
“We are very much willing to help our exporters, as we are all in this game. It is our problem also, it affects our collection target,” he noted.
For her part, Board of Investments (BOI) Executive Director Lucita Reyes said the Board has decided to allow crisis-affected companies to sell in the local market.
“In a recent resolution, the BOI approved to temporarily waive the usual requirement for exports to reach 50 percent for local firms and 70% for foreign firms before they can avail of incentives. We know this percentage will be difficult to attain in this crisis,” she said.
Reyes added the Board will likewise suspend the counting of exporters’ income tax holiday (ITH) incentive period for taxable year 2008 or 2009 depending on when they are able to generate profit.
But she said companies have to prove they have been affected by the global economic slump to avail of these policies.
“We will refine the policy and will have it published,” she added. -- Danielle Venz, PHILEXPORT News and Features <--back
5. Renewable Energy Law seen crucial to achieve 4,500 MW RE capacity
The government is optimistic to achieve its renewable energy (RE) development target of 4,500 megawatts in the next 10 years and significantly reduce the country’s reliance on imported oil with the passage of the Renewable Energy Law.
At the sidelines of a forum hosted by the Philippine Council for Industry and Energy Research and Development, Department of Energy (DOE) director Mario Marasigan said they hope to increase RE contribution in the energy mix to 40 to 50 percent from 33 to 40 percent.
“If you have that 60 percent energy self sufficiency with 50 percent of it coming from RE, it’s a big achievement,” he said.
Marasigan said they expect more investors to signify interest to put up green energy projects as soon as the implementing rules and regulations (IRR) of the Renewable Energy Law is finalized, assuring the viability of RE projects.
He estimated that the department’s 4,500 MW RE capacity target would entail around $85-billion investments.
“Many have already signified interest to invest. One proponent would want to acquire 17 sites for ocean, there are also keen on 10 sites for wind, five sites for hydro; everybody is looking for everything,” he said.
“We have advised them to register with the DOE as soon as possible. We will know maybe in about six months time who are pushing through with their projects,” he added.
Marasigan said the law provides fiscal and non-fiscal incentives to renewable investors, including the end-users’ option to purchase electricity from RE facilities (open access), connection/sale of customers’ RE generation to the grid, income tax holiday, duty-free importation and special realty tax rate on equipment and machinery.
It likewise provides for Renewable Portfolio Standard, which is the mandatory percentage utilization of RE generation system in on-grid systems, he added.
Marasigan said the huge investments on RE projects could translate to more job opportunities for Filipinos.
He said the department targets to release the IRR of the RE law this June.
“We have finished two writeshops and the Mindanao leg. We are moving to Northern Luzon, Southern Luzon and then the Visayas. The last one will be the national consultation,” he said. -- Danielle Venz, PHILEXPORT News and Features <--back
6. RP crafting new maritime law
The country’s new maritime law is now being crafted, which is an effort to address the flaws in existing policies and provide an environment conducive to the development and modernization of the maritime sector.
Enrico Basilio, director of the Center for Research and Communication’s (CRC) Transport and Logistics Institute, said the CRC and University of the Philippines-National College of Public Administration and Governance/College of Law have been tapped by the Department of Transportation and Communications to make the law.
Basilio said they are still working on various chapters of the proposed law, including ship registration, taxation and management; maritime manpower; maritime pollution and protection of environment; ship security; liens and mortgage; accidents, investigation and inquiries; and admiralty jurisdiction and the arrest of ships.
While provisions on carriage of goods at sea, insurance and limitation of liability and salvage of wreck ships were already committed and subject to public consultations, he bared.
Basilio said the measure will take into consideration the Philippine commitments to the International Maritime Organization (IMO) and other conventions.
It would likewise be in line with the country’s future posture in the trade of transport services under the General Agreement on Trade and Services (GATS) framework and other bilateral agreements, he assured.
Basilio said the maritime law is expected to improve the country’s “credibility” as a maritime center in Asia, both in terms of administration and administration.
“It is hoped that a vibrant and strong maritime sector will improve our global competitiveness,” he noted. -- Danielle Venz, PHILEXPORT News and Features <--back
7. DENR upholds clean air and public health
Secretary Jose Atieza of the Department of Environment and Natural Resources (DENR) recently issued a Memorandum to all Regional Directors of the Environmental Management Bureau (EMB) directing them to focus monitoring on ambient air quality.
Atienza has issued the Memorandum to provide interim legal relief to Philippine industries while the EMB is still undertaking a study on the conversion of emission standards with SO2 as the priority parameter. The study is expected to be completed in June 2009.
These efforts are part of DENR’s mandates in the Republic Act No. 8749 otherwise known as the Philippine Clean Air Act. Section 19 in particular provides for the review, revision and publication of the existing concentration base emission standards into the internationally used mass emission rate standards within two years upon the effectivity of the Act or as the need arises.
The Memorandum also mandates that all owners/operators of existing stationary sources are required to submit regular SO2 ambient monitoring on top of the standard monitoring of other parameters required by the Clean Air Act.
“We are thankful to Secretary Atienza for coming up with this Memorandum. We hope that the implementation of this Directive will be carried out properly by the Regional Directors up to their technical people so that confusion and misinterpretation will be avoided”, said Oscar Barrera, Chairman of the PHILEXPORT Committee on Environment. “We also hope that other previous administrative issuance by DENR will be implemented consistently with this recently issued Memorandum from the Secretary”.
Dr. Ed Alabastro, PHILEXPORT Consultant for Environment, explained that Philippine industries, especially micro, small and medium enterprises, will benefit from this move, especially in this global financial crisis.
PHILEXPORT has been a partner of the DENR in policy discussions and implementation to help protect the environment while promoting economic growth. -- Matilde R. Jimenez, PHILEXPORT News and Features <--back
|
