associate sector
auto parts & components sector
chemicals sector
electronics sector
fashion and accessories sector
food sector
furnitures sector
garments sector
housewares sector
information technology sector
leathergoods sector
decors and giftwares sector
metal sector
non-metal sector
resource-based sector
 
May 08, 2009
 

1. Environment clearance suspension killing Cagayan de Oro furniture makers

The umbrella organization of exporters this week urged environment czar Jose Atienza to lift the ban on the issuance of environment clearance certificates (ECC) on mining and tree harvesting which is fast killing furniture makers in Cagayan de Oro area in Mindanao.

The policy was implemented last January purportedly to prevent flooding in that region via a Department of Environment and Natural Resources (DENR) memorandum order issued on January 19, 2009.

In a letter sent to Secretary Atienza, Philippine Exporters Confederation (PHILEXPORT) President Sergio R. Ortiz-Luis Jr. pointed out that the order especially on wood suppliers from privately grown plantation forests has undermined the operations of furniture exporters in the region who employ about 10,000 workers. They now run the grave risk of losing their jobs.

This, he said, was reported by Arturo D. Mercader, head of the PHILEXPORT chapter in Cagayan de Oro.

As a result of the new policy, farmers that have planted trees even on farm lands are prohibited to harvest these trees, when these trees are supposed to be allowed for commercial use.

Supply of plantation wood species has also gone scarce and export of wood-based products is harmed as a result of this imposition.

That is bad not only for the furniture exporters in the area but also for the national economy because furniture exports contributed $50 million in export revenues last year, wrote Mercader in his letter to PHILEXPORT.

Ortiz-Luis pointed out that in the midst of the present global crisis resulting in about 40 percent retreat in Philippine exports up to February this year, furniture makers in Cagayan de Oro could not meet orders of alternative buyers they found because of the suspension in the issuance of DENR clearances needed with the export declarations.

Their latest woes, he said, are over and above the stringent policies adopted by furniture importing countries like the ban on the use of formaldehyde in treating wood and a new US law that gives priority to buying furniture that are made out of plantation trees.

The export leader suggested that to save the exporters and their workers, DENR should immediately lift the suspension of ECC and other related permits in Northern Mindanao while a comprehensive study on the actual causes of flash floods in the area are yet to be determined.

PHILEXPORT likewise suggested the amendment of the existing law that does not differentiate between wood harvested from cultivated trees from those cut from public forests. The change will encourage farmers to plant trees and benefit from the harvests of those trees, instead of imposing a total ban that discourages investments in tree plantation. -- Abe P. Belena, PHILEXPORT News and Features <--back

2. BPO sector seen to create 160,000 new jobs this year

The business process outsourcing (BPO) industry’s bright growth prospects augur well for creating 160,000 new jobs this year, bringing its total employment generation from 700,000 to 800,000 by 2011.

This was shared by Oscar Sañez, Philippine Exporters Confederation Inc. (PHILEXPORT) trustee for the information technology (IT) services sector, during the recently held National Employers’ Conference.

Sañez said they are now intensifying their recruitment and staffing efforts to meet the needs of the growing BPO industry.

“The growth of between 20 to 30 percent this year is still going to be remarkable given the global (bleak) outlook facing the industries right now. While there are challenges in this crisis, we are confident that these can be achieved,” he said.

Sañez based his optimism on the robust growth of the non-voice BPO which is growing at a faster rate than the call center sector now comprising two-third of the BPO industry.

Non-voice BPO includes back-office/knowledge process outsourcing, legal and medical transcription, digital animation, information technology (IT) outsourcing and game development.

“Employment is certainly a positive prospect. While we probably will not hit the one million employment goal given to us, we will be getting close to between 700,000 to 800,000 workforce by 2011,” he said.

To achieve its employment goal, Sañez said the sector is gearing its efforts towards the implementation of priority talent development projects.

He related that the National Competency Assessment and Certification Program is designed for graduating college students and career shifters who would like to work in the BPO-IT industry.

Sañez, also the chief executive officer of the Business Processing Association of the Philippines (BPAP), pointed out that such assessment test will help the schools develop and design curriculum acceptable to the industry.

“By August 2009, we will start testing students. We are targeting to pilot test 10,000 students from at least 10 universities in Metro Manila. We plan to have a nationwide phased roll-out by schoolyear 2010-2011 where we are targeting 50,000 to 100,000 examinees,” he said.

Sañez said the Advanced English Proficiency Training Program (ADEPT) meant to increase the employability of the students to the sector was also pilot-tested in four schools last year and in 11 schools this year.

“The results continue to be fantastic. We are able to get 80 to 85 percent passing rate from the students enrolled in this class in terms of their English qualification standards,” he said. “Hopefully, we can get more schools by the end of this year. We should be able to graduate over 20,000 students from this program by next year which is very important for the sector.”

Sañez further said they have also partnered with the Ateneo and La Salle graduate schools to put up the Training for Offshoring and Outsourcing Leadership Program (TOOL).

Likewise, industry players started implementing a leadership development program for managers with the Harvard Business Publishing last month.

Facilitation of the cases and modules is conducted by Harvard Business School-accredited facilitators and industry experts, he explained.

“These are very important tools because this is an industry that is fast growing that you would be needing more managers now and in the future. We now have over 400,000 workers,” he noted.

Sañez said the Pangulong Gloria Scholarship also continues to provide subsidy for the near-hire training of applicants into the sector.

“We have been running the program for two years and we continue to drive success. Last year, over 40,000 certificates were distributed to qualified candidates and we generated about 30 percent employment for those enrolled in the program,” he reasoned.

Apart from these talent development programs, Sañez said the Campus Caravan project promotes and creates awareness for the BPO careers, particularly in the next wave cities.

Industry next wave cities include Metro Laguna, Metro Cavite, Iloilo, Davao, Bacolod, Angeles-Clark-Mabalacat, Baliuag-Marilao-Meycauayan, Cagayan de Oro, Malolos-Calumpit and Lipa.

“Increasing awareness for BPO-IT careers is one of the talent initiatives that could create the biggest impact in the talent pool,” he said. “We are currently coordinating with the local ICT councils to finalize the program.” -- Danielle Venz, PHILEXPORT News and Features <--back

3. Gov’t taps more emerging markets to improve RP’s exports position

The government is intensifying its export promotion efforts particularly in big emerging markets such as Russia and India to at least maintain or improve the country’s position in the shrinking export market amid the global downturn.

Dodjie Fabian, director of the Department of Trade and Industry’s Bureau of Export Trade Promotion (BETP), said Brazil, Russia, India and China (BRIC) countries offer the possibility of enormous growth.

He said that government has already tapped the China market, while Brazil is quiet far from the Philippines.

“India is another very good market to tap. From what I understand, India is building about 2,000 hotels. You can see their requirements for decors, construction and architectural services,” he bared.

Fabian said apart from the electronics sector, there are other revenue streams open.

"Food and services have bright prospects, but all the rest of the sectors might experience a slowdown,” he said. “For food, the Middle East seems to offer a good market. For services, we are looking at double-digit growth for the BPO (business process outsourcing) call centers. But we also see good potential in non-traditional (exports) like education and film production.”

Fabian particularly cited the Halal food industry which is now a $1 billion market worldwide. The Middle East and other Muslim countries are its biggest markets.

He also identified the country’s other revenue streams as motor vehicles and parts/components, homestyle products, minerals, natural and organic products; and textile, apparel, footwear and travel goods.

Fabian said export trade opportunity reports can be availed from the bureau. Such reports are sourced from DTI’s foreign trade commercial attaches and queries from the various international posts of the Department of Foreign Affairs, the local diplomatic corps, walk-in guests and private companies.

To this end, he advised businesses to update their database including pertinent information such as their profile and contact information, capitalization, manpower and product line.

Fabian said the updated profiles will form part of the Business Profile Management System (BPMS) which is part of the DTI’s Philippine Business Registry (PBR) project.

The PBR project is meant to put together common information from various databases of agencies to help streamline registration requirements and processes.

Under the PBR, some BPMS data fields will be automatically updated when agencies connected to the PBR, including DTI, local government units and the Securities and Exchange Commission, update their information, he explained.

“Those who have updated their BPMS data will be automatically matched and informed through email of relevant opportunities,” Fabian stressed. “Those in the database of DTI-BETP will be given priority.”

To effectively tap target markets abroad, he also encouraged the exporters to establish their own website for easier business matching. “It is important for you to get your own website especially now that if we get buyers, they want to search (in the web) first to know the products offered before they come here to meet the exporters,” he advised.

Fabian likewise urged them to develop new designs based on market trends.

“The designs that we see a couple of years back are still the same now, there is almost no evolution. That’s why, our advocacy right now is to make sure that our products evolve. Otherwise, we will gradually lose buyers,” -- Danielle Venz, PHILEXPORT News and Features <--back

4. Bidding for supply of jewelry assaying and hallmarking tools slated on May 25

Licensed importers, suppliers, manufacturers, distributors and contractors are invited to join the May 25 bidding for the supply and installation of jewelry assaying and hallmarking tools, machines and equipment.

The provision of the jewelry manufacturing/testing equipment is part of the establishment of the P3.183-million Philippine Assay and Hallmarking Office which is funded under the P280-million Export Promotion Fund administered by the Export Development Council.

The Guild of Philippine Jewellers, Inc. (GPJI) and the Cottage Industry Technology Center (CITC) said in a statement that the project also involves commissioning, technology transfer and supply of training services.

The issuance of bid documents has started last May 7 and ends on May 19.

On the other hand, the pre-bid conference will be held on May 14 while the submission and opening of eligibility documents will be on May 21.

“Prospective bidders must have the required capability to perform the requirements of the project. The eligibility check/screening as well as the preliminary examination of bids shall use non-discretionary “pass/fail” criteria. Post-qualification shall be conducted,” GPJI said in a statement.

Eligibility, bid bond and bid evaluation process, among others, shall govern pertinent provisions of Republic Act 9184, otherwise known as the “Government Procurement Reform Act”, and its implementing rules and regulations, it added.

The assay and hallmarking office project aims to improve the quality and competitiveness of Philippine jewelry products.

With the assistance of external experts, project implementor CITC, the cooperating associations and firms will create the sampling procedures and agree on how to conform to the recently developed Philippine National Standards on jewelry products.

The project specifically will enroll at least 25 leading jewelry companies nationwide in the hallmarking project. These firms have to commit to have their products assayed using industry-accepted procedures. -- Danielle Venz, PHILEXPORT News and Features <--back