People using the system has risen from 280,000 to 1.8 million, the most complex processing of civil petitions shortened from 44 to 15 days and government purchases through electronic bidding shot up from $39.7 billion to $46.7 billion.
The new system used in developing the PKI in Korea had solved the privacy issue that internet communications has spawned, the top man of Korea’s information agency said. -- Abe P. Belena, PHILEXPORT News and Features <--back
2. Creation of credit committee to reduce loan defaults pushed
A business support organization (BSO) of Philippine exporters and manufacturers of home furnishings will seek the establishment of a credit management committee that will minimize bank loan defaults once BSOs are allowed to serve as conduit in providing lending assistance to their members.
Salvio Valenzuela, executive director of the Philippine Chamber of Handicraft Industries (PCHI), said there is also a need to get trainors, including a bank representative, to participate in the BSO committee.
“Banks can take advantage of the capability of the BSOs to guarantee for their members because they know them better,” he noted. “Creating the Committee is a response to assist members who want to avail of loans, but cannot access because of credit problems by some.”
Valenzuela expressed optimism that such structure will benefit the banks, to boost their lending business and exporters, to access more financing.
“As conduits, we can assure the banks they could get more clients and processes can be fast tracked,” he reasoned. “On our part, we would be more confident we have appropriate loan facilities available to our exporters.”
Liduvino S. Geron, First Vice President of the Land Bank of the Philippines (LBP) Program Management Group, said the bank will still determine the feasibility of the proposed arrangement of utilizing BSOs as conduits in giving out loans to their members.
Geron said this scheme of lending via industry associations will be a new venture for the bank, but with the same component for credit and background investigation as its other existing lending facilities such as the Development Advocacy (DevAd) Program.
He said companies can qualify for loans even without collateral as long as they have viable projects and confirmed market.
“However, collaterals will still be initially requested from those who can provide. Otherwise, the viability of the enterprise, including its market potentials can be good basis for unsecured loans,” he assured.
Geron said the Bank has P1-billion allocation for the program. Of the total, P286 million worth of loans for small and medium enterprises (SMEs) were already approved.
However, Philippine Exporters Confederation, Inc. (PHILEXPORT) President Sergio Ortiz-Luis Jr. expressed concern that most SMEs may not qualify in this program.
“Since the Asian financial crisis, many of the SMEs cannot come out with passable financial statement and very rarely you would find SMEs that have no past due loans,” he bared. “One of the things that we are proposing will be transactional lending.”
Geron admitted that the bank is constrained by regulatory hurdles in addressing this issue, as there is a law that prohibits banks from extending loans to clients.
“(Thus,) if we have an arrangement like BSOs as conduits, this answers the gap because then, we will be directly dealing with the BSOs and not the exporters with past due loans. The key is to get to know these BSOs very well and build confidence between our bank and these groups,” he said.
Philippine Food Processors and Exporters Organization (PHILFOODEX) President Roberto Amores believed that such scheme could help more exporters avail of financing assistance and recover from the impact of the lingering global financial crisis. -- Danielle Venz, PHILEXPORT News and Features <--back
3. Foreign buyers continue to patronize RP products because of their design advantage
Filipino exporters have continued to live up to their reputation as sellers of world-class quality products abroad despite the effects of the global recession.
It is evident from the design-driven products and services being showcased by export manufacturers and designers in the 49th edition of Manila F.A.M.E. (Furnishings and Apparel Manufacturers Exchange) International held at SMX Convention Center.
An estimated 3,000 foreign buyers flock to the country every year to see for themselves these top quality products and services which the Filipinos are well-known for.
“These products are excellent, very well made and have very competitively priced. These are similar with Indonesia’s but nothing like the Philippines,” said Mike Prewitt, whose wife owns a gift shop and a furniture store in Hawaii.
Prewitt said their buyers, mostly foreigners, consider Philippine products as “good stuff”.
“Normally, products that are on display at the trade shows end up differently when mass produced and sold in shops,” he stressed. ”But for Filipino products, what you see in the show is what you get in the shops. The quality is the same, he noted.
A first-time F.A.M.E. buyer from the United Kingdom, Rubert Scott said that “I am credibly impressed, it is much sophisticated than I thought it’s going to be.”
Philippine Exporters Confederation, Inc. president Sergio Ortiz-Luis Jr. assured the buyers that orders can be served with the same world-class quality and timely delivery despite the enterprise and industry-level adjustments made in response to the crisis.
“Let it be put on record that we remain committed to promoting global trade and investments, the road that could help lead us to the proverbial light at the end of this tunnel,” he noted.
For his part, Trade Senior Undersecretary Thomas G. Aquino said building Filipino creativity is essential in staying ahead of competition when global economic recovery takes place.
Aquino also expressed optimism that the Manila F.A.M.E. trade show could be another reason for more buyers and tourists to come to the country, which consequently could generate new investments and jobs for Filipinos.
Apart from home and fashion lifestyle industries, this year’s fair is also featuring individuals and companies from Philippine creative services, including fashion design, product design, interior design, architecture design services, visual arts, photography, illustration and graphic design.
The show, a flagship program of the Center for International Trade Expositions and Missions, is also highlighting for the first time Philippine garments players in a bid to launch locally-made designs in clothes internationally.
Another first are the incorporation of wellness products and services in the show to highlight the inroads that the medical tourism and health sector has achieved so far and the dominant play of environment-friendly materials in many of the products. -- Danielle Venz, PHILEXPORT News and Features <--back
4. Bayong potential export product
The lowly bayong, the traditional woven market bag of Filipinos, is now groomed as the country’s next export industry.
Product Development and Design Center of the Philippines (PDDCP) supervising director Rhodora Leaño in an interview said their efforts are now geared towards the acceptance of this product in the international market.
Leaño said the Center’s ongoing exhibit titled “Bayong”, which runs from April 1 to June 30 this year, hopes to propagate bayong products to achieve global acceptability.
She said they have developed three kinds of bayong –-the dressy kind of bags targeted for use by fashionistas, school bags for children and those which can be used to carry produce either from the wet markets or from supermarkets.
“We want people to go back to naturals, as these are environment-friendly,” she said. “Also, we are actually preserving the tradition of weaving that has been part of the Filipino culture for hundreds of years.”
A bayong can be made of leaves such as rattan, bamboo, pandan, buri, sabutan, romblon and abaca.
Leaño said developing eco-friendly and indigenous products supports the world’s major thrust which is cleaning the environment.
“There is no need to cut down more trees or harm the environment to come up with products that are both aesthetically pleasing but also have practical use and are renewable,” she stressed.
Leaño noted that these products are already getting the support of local provincial trade associations that are engaged in the weaving industry.
Likewise, she said they are inviting commercial buyers so bayong can penetrate the export markets.
“The people who developed the prototype bags with us are now in discussions with some of these exporters who came to the (bayong) exhibit to customize bags that will suit their export requirements,” she bared.
Likewise, Leaño said the Center is in talks with the local establishments to determine if they would like to consider bayong for their packaging materials. -- Danielle Venz, PHILEXPORT News and Features <--back
5. Create higher quality, timeless fashionable products, businesses told
A trend expert has advised fashion and style industry players to create higher quality, timeless items geared even for the luxury sector.
Lisa Yam, regional business director, South East Asia for the Worth Global Style Network (WGSN), in a seminar said the luxury sector, once considered immune from global recession, is also feeling the squeeze in the current economic climate.
“In tough economic times, people also want to see products that can last and that can be reused and enjoyed over several seasons - the value of timeless products is now being proven,” she noted.
Yam said WGSN has noted an increase in “slow fashion” consumer buying trends.
Shoppers, she said, now take time before buying and are choosing fewer, higher quality items.
“In many ways ‘vintage’ has been a driver for this quality design garments that have stood the test of time, and which are still relevant and desirable,” she noted.
Yam said this trend opens the way for a growing number of young designers and eco-labels to look for innovative ways of recycling, reusing and upcycling fabrics.
She pointed out that seasonless clothing encourages a more relaxed and contemplative attitude to design.
Yam said creativity remains fundamental in developing fashionable products.
“Creativity doesn’t always require big ideas or huge financial investment. Spend money on your research but don’t let it stop there – turn that knowledge back into new and profitable ways of doing business,” she advised businesses.
Yam also urged them to maintain a clear differentiation from competitors, a strategy that is more relevant in today’s economic environment.
In line with this, she cited the need to explore “forgotten” raw materials such as bone, horn and semiprecious crystal to create keepsakes and garments trims.
“The forest is the new location here. Note the use of animal-hair yarns and cotton-blends to create new luxury denim possibilities,” Yam said.
“Invincible styling reflects the current fascination with the mystical and exotic -we see a growing trend towards the urbanization of ancient animal and pagan Symbolism,” she added.
Yam also underscored the benefits of partnerships with brand and retail customers and cross sector partnerships in developing sustainable practices.
WGSN, the global leader for style trend analysis, produces creative intelligence for 36,000 customers in the fashion and style industries across the world.-- Danielle Venz, PHILEXPORT News and Features <--back |
