Tourism as a pillar of inclusive growth

The Department of Tourism (DOT) in collaboration with Go Negosyo and other partners like the  ASEAN Business Advisory Council, Department of Foreign Affairs, Tourism Board of the Philippines, Philippine Chamber of Commerce and Industry and the Filipino Chinese Chamber of Commerce and Industry , conducted the country’s First National Tourism Summit last 02 May 2019 held at the World Trade Center in Pasay City.

The summit focused on how to create a more integrated tourism industry not just in the Philippines, but across the ASEAN region. The goal is to achieve sustainable island tourism that will contribute to the socio-economic growth of the region. Speakers and experts from different countries shared their insights and best practices on how to achieve this goal.

As such, the country’s tourism industry was identified as one of the pillars for greater inclusive growth. The DOT is confident that there will be around 8.2 million tourists this year; a 15% increase from last year’s 7.1. million tourists. This signals an increased demand for products and services, which can be supplied by our entrepreneurs from different sectors, thus, contributing livelihood and sustainable income for more Filipinos.

As an inclusive sector, tourism extends not just to the services provided by airlines and travel agencies, but includes other industries such as culinary, retail, transportation, logistics, medical and agriculture. As tourism booms, more and more businesses can flourish and cater to the growing needs of travelers. Indeed, a boost in tourism is a boost in our economy- more tourists, more of the much needed revenue for the economy.

Hence, all kinds of businesses, whether micro, small or medium will gain from the sector’s inclusivity, including those in far flung tourist spots in the country. More diverse products, services as well as culture will be offered from these beautiful places in and around the country. GTM

PHILEXPORT-Pampanga Chapter endorses Travel Tax Exemption for Region 3 Exporters

PHILEXPORT Region 3 (Pampanga Chapter) now endorses Travel Tax Exemption (TTE) applications of its members in Region 3 (Central Luzon). To facilitate the processing of TTE applications, the Technical Working Group on EO 589 approved the request of PHILEXPORT-NATIONAL for the additional signatories of its chapter in Pampanga.  PHILEXPORT-R03 now endorses TTE applications directly to the Export Development Council which monitors and oversees the implementation of the Executive Order.

Exporters who will travel abroad to participate in international trade fairs and exhibitions, promotion and marketing activities of Philippine export products  can avail the  TTE incentives under EO 589.

Region 3 Exporters may download TTE application form at the EDC website (www.edc.net.ph) and submit  to PHILEXPORT R03 at Deco Central, Bldg., N3679 C.M. Recto Highway, Clark Freeport Zone, Pampanga. Telephone numbers (045)599.6214/ 599.5170  Mobile No. 0917.6214758 or email at philexportr3@yahoo.com

DTI-EMB, PHILEXPORT and EDC gear up for the National Export Congress 2018

The Department of Trade and Industry (DTI) through the Export Marketing Bureau, the Philippine Exporters Confederation, Inc. (PHILEXPORT) and the Export Development Council leads the conduct of the 2018 National Export Congress (NEC). NEC is the highlight of the week-long celebration of the National Exporter’s Week (NEW). This year’s theme, “SPICE Up to Scale Up! (Stimulate. Permeate. Innovate. Connect. Expand!)”, is consistent with the thrust for the Philippine export industry to be at the cutting edge of innovation and connectivity as a competitiveness strategy.

Over 700 delegates including exporters, business support organizations, policy makers, and academe will convene at the Philippine International Convention Center (PICC), Pasay City on 07 December 2018 for the annual NEC. The event will have discussions on various topics such as global outlook and prospects for Philippine exports, expanding market, ease of doing business, industry-led innovation and connectivity. Export Enablers Exhibit and Logistics Fair will also transpire during the event which will showcase the services of government clearance agencies, financing institutions, Halal certifying bodies and logistic providers.

The NEC is the main activity of the National Exporters’ Week (NEW). The first week of December is declared as the Exporters’ Week per Presidential Proclamation 931, Series of 1996 and House Resolution 33, in order to obtain total commitment of the government and the private sector to continuously work together to sustain and maintain export promotion and development.

Also part of the week-long NEW celebration is the conduct of Usapang Exports, an information sessions under the DTI-EMB’s Philippine Export Competitiveness Program (PECP), on 03-05 December 2018 and the conduct of Logistics Summit organized by the DTI-Competitiveness Bureau (CB) on 06 December 2018. (MDGTD)

PH needs to catch up with ASEAN neighbors in Dual Training System


Philippine and  German delegates to the benchmarking mission on Dual Training System in Malaysia and Thailand

The Philippines needs to catch up with ASEAN neighbors in the implementation of its Dual Training System (DTS). This conclusion is a result of the recent benchmarking mission to Malaysia and Thailand on Dual Training System conducted last 22-27 October, 2018. The main objective of the mission is to benchmark and network with the Malaysia and Thailand Technical Vocational Education and Training (TVET) systems and approaches with the end view of adoption and potential best practice elements in Dual VET, certification and In-company training which are the essential elements of the Dual Training System (DTS).

The lessons learned include determination of how the Dual VET policy framework in both countries is operationalized on the ground; observation how the Malaysian and Thai Dual DTS models work; gainful and deeper insight into both countries’ experiences through direct interaction with the DTS practitioners; comparison of various approaches and identification of what is adaptable in the Philippines; and instituting networks with Malaysia and Thai Dual VET players.

The Malaysian government fully supported the DTS system in their country, in coordination with the German Chamber of Commerce and Industry-Malaysian Chapter (GCCI-Malaysia), by providing land, building and training facilities and equipment to train those students who opted to take vocational courses as well as their unemployed youths. In turn, GCCI-Malaysia assisted the government by partnering the Malaysian training institutions with multinational companies in terms of technical assistance and acquiring state of the art equipment/ technology or laboratories for use of students and faculties alike. Courses offered in the Malaysian DTS program include Mechatronics, Industrial Management and Logistics Operations Management, Electronics, Automation, Industry 4.0 Specialists course, International Master Craftsman, to name a few. However, unlike in the PH, Malaysia does not implement a ladderized form of education wherein subjects were not credited by the Malaysian higher education institutions when students who took up vocational courses finally opts to enroll in college.

The Thai government also fully supports the DTS system in their country in collaboration with the German Chamber of Commerce and Industry-Thailand (GCCI-Thailand). It can be noted that the DTS implementation in Thailand specifically of the Don Bosco Academy can be replicated in the PH to help  strengthen resurgence of the country’s manufacturing sector e.g., students produce products for exporters using equipment and facilities donated by multi-national companies or thru the assistance of the German Federal Republic. In addition, Thailand is implementing a ladderized form of education where subjects being taken in the tech-voc curriculum are being credited by the Thai higher education institutions.

Meanwhile, in order for the PH to catch up, it is recommended that a review and subsequent amendment of the current Dual Training System Law be considered.  This is so because in the DTS law, the Technical Education and Skills Development Authority (TESDA) is both the regulator and provider of all technical and vocational trainings in the country, notwithstanding the private training institutions in the country who are to be accredited first by the latter before they can operate.  The PH should also formulate strategies and interventions needed by the country’s apprenticeship program as it relates to our current “endo” regime.  Apprenticeship programs under the dual training system can last from two (2) to three (3) years.  Hence, with our current “endo’ arrangements, this would be impossible.

The said study mission was spearheaded by the AFOS Foundation – K to 12 Plus Project ( a TVET training institution based in Cebu) in collaboration with the German Chamber of Commerce and Industry Philippines (GCCI-PH). Twenty five (25) participants (three (3) Germans and twenty two (22) Filipinos) from private sector, academe and training institutions took part in the said activity. (GTM)

NWPC  focuses on people- centric technologies & innovation  for MSMEs

As the fourth industrial revolution or Industry 4.0 gain momentum, the National Wages and Productivity Commission (NWPC), an attached agency of the Department of Labor and Employment (DOLE),  focused its 2018  National Productivity Conference on  people-centric technologies & innovation for MSMEs.  DOLE Undersecretary Ciriaco Lagunsad, III pointed out that  the on-going concern on inflation can also be addressed by improving the productivity of producers which will influence prices.  As such, he emphasized the need to embrace new technologies, but put people in control of technology.
Assistant Secretary Rafaelita Aldaba of the Department of Trade and Industry (DTI) supports the NWPC as she said that human capital is crucial for innovation and entrepreneurship.  DTI’s approach to implement Industry 4.0  is through the Inclusive Industrial Innovation Strategy  that aims to link the manufacturing sector with agriculture and services. Such links can be realized when there are regional inclusive innovation centers where government, research agencies, academe and industry collaborate for improved competitiveness.
Asian Development Bank’s Director of Development Economics and Indicators Dr. Rana Hasan confirms that technology increases incomes, contrary to the fear of many that  jobs will be  lost with the use of artificial intelligence (AI). He said that AI cannot be stopped as it is already here. Education, training and social protection such as unemployment insurance are necessary to cope with these new technologies. (EZM)

FDA prioritizes CPR for export products 


The Food and Drug Administration (FDA) recently announced that processing of  applications for Certificate of Product Registration (CPR) for export products are prioritized.  Exporters are advised to indicate in the list of products for CPR application that such are for export.
Ms. Helena Alcaraz, Chief of the Licensing and Registration Division of the  FDA Center for Food Regulation and Research, said that issuance of the CPR will be facilitated even better if the application is accompanied with a proof of prospective order (e.g., email showing interest of a foreign buyer).  FDA will also validate if the applicant is an exporter. (EZM)

DTI implements 7Ms for competitive MSMEs

The Department of Trade and Industry (DTI) through the (Micro, Small and Medium Enterprise Development (MSMED) Council  implements the 7Ms- Mindset Change, Mastery, Mentoring, Money, Machine, Market Access, and Models of Business, a framework which were introduced and supported during the ASEAN Economic Community (AEC) meeting last year. MSMEs shall be assisted to develop a positive Mindset, to gain Mastery of their business, to provide quality business Mentorship, to facilitate access to Money, to improve access to domestic and international Markets, to provide quality Machines, and to be exposed to innovative Models of business.

To achieve the strategic goals specified in the MSME Development Plan 2017-2022, the MSMED Council has laid anchor programs to be implemented. These programs and other initiatives were presented during the National MSME Summit held last 10 July 2018 in Clark Pampanga. The summit was attended by entrepreneurs, industry leaders, enablers and other stakeholders nationwide. President Rodgrigo Duterte also graced the event to show his administration’s continuing support to MSMEs.

PHILEXPORT- Cebu now endorses Travel Tax Exemption applications

The PHILEXPORT-Cebu Chapter can now endorse applications of its members for travel tax exemption.   The Technical Working Group on EO 589 Exempting Exporters for Travel Tax Exemption (TTE) recently approved the request of PHILEXPORT-National for the additional signatories from PHILEXPORT- Cebu. This is to facilitate the release of TTE certificate by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA). PHILEXPORT-Cebu may now endorse TTE applications directly to the Export Development Council which monitors and oversees the implementation of the Executive Order.

Under EO 589, exporters who will travel abroad to participate in international trade fairs  and exhibitions are entitled to TTE.

Exporters in Cebu may contact PHILEXPORT-Cebu at telephone numbers (032)254.4333/ 254.9266/254.433 or email at info@philexportcebu.org

Regulatory agencies must apply Regulatory Impact Assessment – World Bank, Malacanang

It is therefore necessary for regulatory agencies to undertake the RIA process which involves problem definition, setting the objectives, identifying options (from doing nothing or status quo to other options), impact analysis (cost-benefit analysis), comparing options, and implementation and monitoring.

World Bank strongly suggests that regulatory agencies must subject any proposed regulation to the regulatory impact assessment (RIA), a tool that ensures the quality of regulations through a rigorous, well-defined and evidence-based analysis.

RIA is a process and a document to “clean” the rules particularly those involving high regulatory risks that reduce investment and competition; high transaction costs due to a complex, multi-layered, often arbitrary rules that are vulnerable to corruption; too little market regulation, poor enforcement, and under-institutionalization in policy areas as consumer and environmental protection; and checks and balances, such as  an effective judiciary which are weak, harming new entrants.

In a recent training on RIA, World Bank emphasizes that a good regulation should be  focused on policy problem,  introduced when necessary and proportionate to the risk posed by the policy problem, accountable  to those affected by  the regulation and those who confer regulatory authority, transparent  or consultation based, and consistent,  taking into account existing rules and regulations.

Corollary to this, the Office of the President issued Memorandum No. 27, series of 2017 which, directs among others, the NEDA to promote among regulatory agencies the use of RIA and other related tools.  In Turn, NEDA now implements the Program on Modernizing Government Regulations (MGR) in cooperation with the Development Academy of the Philippines.