Enabling Business, Empowering Consumers TRANSITION REPORTpcabeta.000webhostapp.com/reports/Government Reports/DTI Trans… · NPCC National Price Coordinating Council NQI National

TRANSITION2010-2016

Enabling Business, Empowering Consumers

REPORT

Contents

02 List of Abbreviations05 Executive Summary08 Report of the Management Services Group12 Report of the Industry Development Group16 Report of the Regional Operations Group22 Report of the Industry Promotion Group26 Report of the Consumer Protection Group30 Special Report32 Awards and Achievements33 Organizational Structure34 About DTI35 Executive Committee

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List of Abbreviations

ACCP ASEAN on Consumer ProtectionACCSQ ASEAN Consultative Committee on Standards and QualityAPEC Asia-Pacific Economic CooperationASEAN Association of Southeast Asian NationsADPC Asian Disaster Preparedness CenterAPLAC-ILAC Asia-Pacific Laboratory Accreditation Cooperation- International Laboratory Accreditation CooperationARBs Agrarian Reform BeneficiariesARCCESS Agrarian Reform Community Connectivity and Economic Support ServicesBCP Business Continuity Plan BDTP Bureau of Domestic Trade Promotion BOI Board of InvestmentsBPLS Business Permits and Licensing System BSMED Bureau of Small and Medium Enterprise DevelopmentBUB Bottom-up Budgeting CARP Comprehensive Agrarian Reform ProgramCARS Comprehensive Automotive Resurgence StrategyCBT Capacity Building TrainingCITEM Center for International Trade Expositions and MissionsDBFTA Doing Business in Free Trade AreasDCP Design Center of the PhilippinesDIPS Domestic Promotion ServiceEFTA European Free Trade AssociationEMB Export Marketing BureauEODB Ease of Doing BusinessEU-GSP European Union - Generalized System of Preferences FTA Free Trade AgreementFTSC Foreign Trade Service CorpsGDH Gifts, Decors and HousewaresGDP Gross Domestic ProductGED Green Economic Development GIZ Deutsche Gesellschaft fur Internationale ZusammenarbeitIABPI Inter-Agency Business Process InteroperabilityIAS Internal Audit ServiceICPEN International Consumer Protection and Enforcement NetworkIDP Industry Development ProgramIFAD International Fund for Agricultural Development IFEX International Food ExpositionIPA Investment Promotion AgencyIRR Implementing Rules and RegulationsIT-BPM Information Technology – Business Process ManagementITNA International Trade Negotiation AgendaISO International Organization for StandardizationJICA Japan International Cooperation Agency JEC Joint Economic CommitteesKATBP Konsyumer At Iba PaKMIS Knowledge Management and Information ServiceLIIC Local Investment and Incentives CodeLGU Local Government UnitMEDP Micro Enterprise Promotion and Development MLA Multi-Lateral Agreement

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MRA Mutual Recognition ArrangementMRP Manufacturing Resurgence ProgramMSMEs Micro, Small and Medium EnterprisesMSMED Micro, Small and Medium Enterprise DevelopmentNC Negosyo CenterNKATBP Negosyo, Konsyumer At Iba PaNICCEP National Industry Cluster Capacity Enhancement Project NIR Negros Island RegionNPCC National Price Coordinating CouncilNQI National Quality InfrastructureOTOP One Town, One ProductPARC Presidential Agrarian Reform Council PAC-IAF Pacific Accreditation Cooperation-International Accreditation ForumPBR Philippine Business RegistryPECP Philippine Export Competitiveness ProgramPEDP Philippine Export Development PlanPEZA Philippine Export Processing Zone AuthorityPFG Partnerships for GrowthPGS Performance Governance SystemPH-EFTA Philippines-Eurpean Free Trade AreaPIPP Philippine Investment Promotion PlanPITC Philippine International Trading CorporationPJEPA Philippines-Japan Economic Partnership AgreementProGED Promotion of Green Economic DevelopmentPTRACE Philippine Traceability SystemPTTC Philippine Trade Training CenterRIPPLES Regional Interactive Platform for Philippine ExportersROG Regional Operations GroupRuMEPP Rural Micro Enterprise Promotion Programme SBC Small Business CorporationSEC Securities and Exchange CommissionSME Small and Medium EnterpriseSMERA SME Roving AcademySSF Shared Service FacilitiesSRP Suggested Retail PricesToT Training of TrainerTPP Trans Pacific PartnershipTRTA Trade Related Technical AssistanceUACS Unified Accounts Code StructureUSAID United States Agency for International DevelopmentVLPCEP Village Level Processing Center Enhancement Project

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The first quarter of 2016 saw the Philippines back on a high growth track, posting the highest growth rate of 6.9 percent, outpacing 11 other Asian countries including China. The gross domestic product (GDP) grew an average of 6.2 percent from 2010-2015—the highest 6-year growth recorded by our country in 40 years—and a remarkable performance against the backdrop of the global economic slowdown during the same period. The resurgence of the manufacturing sector was evident as it grew an average of 8.1 percent in the past four years, overtaking the growth services sector and the economy as a whole.

At the onset of the Aquino administration, the Depart-ment of Trade and Industry (DTI) set into motion reforms to harmonize systems and processes within the organiza-tion. The Philippines, at that time, was facing several chal-lenges that threatened to slow down its economic growth—from aggressive competition within the ASEAN, to climate change issues, and new advances in technology that were changing the way athe world of international commerce functioned.

To address these changes and manage the country’s pov-erty and unemployment issues, the DTI needed a robust or-ganization that would provide strong support and initiate strategic moves.

Management Services Group

The Management Services Group (MSG) is the function-al group tasked to facilitate good governance across DTI’s structure. The MSG includes corporate planning services, human resources, and financial services. The MSG also en-gages personnel across the country to support the devel-opment of a knowledge organization, as well as a source of current and accurate information.

The direction was to have a policymaking mindset, to be better enforcers and communicators, and to deliver effec-tive services to clients in the fastest and most efficient way possible. By 2013, DTI adopted the Performance Govern-ment System (PGS) and streamlined policy and promotions functions.

This shift allowed for the DTI to deploy its functional groups—Industry Development Group, Regional Opera-tions Group, Investment Promotions Group, and Consumer Protection Group—to support the acceleration of inclusive growth.

This meant that a unified trade and industry policy must benefit the growth and strengthen the economic contri-

bution of Micro, Small and Medium Enterprises (MSMEs), which provide two out of three jobs to the national work-force.

Industry Development Group

The Industry Development Group (IDG), charged with overseeing industry concerns and trade relations, crafted a unified framework to address the most binding constraints to growth and innovation in industry development and trade.

The strategy was built on three pillars: “One Country, One Voice,” a consultative mechanism that engaged regu-larly and proactively with stakeholders concerning policy positions and negotiation strategy; “One Country, One Net-work,” an organized network of research and academic institutions to provide research and analytic support; and “One Country, One Team” to support training and capacity building for government trade negotiators. Trade and in-dustry policy directions and reforms were communicated through a sustained advocacy. At the same time, DTI sought to increase industry competitiveness.

In 2012, the IDG initiated the crafting of industry road-maps in collaboration with the private sector, empirical re-search identified policy directions and crosscutting issues that were crucial to mapping out a Manufacturing Resur-gence Program (MRP). The roadmaps likewise sustained a strong constituency composed of the private sector, civil society and the academe.

The IDG implemented its industrial policy consistent with the International Trade Negotiation Agenda (ITNA) and endeavored to build stakeholder trust and confidence in the country’s current and planned free trade agreements.

The granting of the EU-GSP+ beneficiary status, the re-cent conclusion of the Philippines - European Free Trade

Executive Summary

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Area (EFTA) free trade agreement, and the ongoing formal negotiations with the European Union, have established the Philippines’ strong foothold in the European continent.

With several industry roadmaps in varied stages of im-plementation, the Comprehensive National Industry Strat-egy (CNIS) was launched as a platform for the convergence of Industry strategy, Agriculture and Services.

To further address vital crosscutting issues identified in these roadmaps, two significant initiatives were launched: the E-Commerce Roadmap 2016-2020 which provides an enabling environment for e-commerce development, and the National Logistics Master Plan (NLMP), to lower logis-tics cost and streamline the process of transporting goods from point of origin to point of destination. This includes formulation of policies and measures relative to supply chain, trade facilitation, and logistics to support exporters, importers and traders by helping secure competitive rates and equitable terms and conditions.

As the country increasingly earned recognition in major Ease of Doing Business (EODB) indices, the DTI continues its efforts to improve the country’s overall competitiveness.

The agency launched the Enhanced Business Name Registration System (e-BNRS), an integrated end-to-end software that allows for electronic payment, and reduced business registration processes through the Nationwide Streamlining of Business Permits and Licensing Systems (BPLS). In 2015, the process took 16 steps and 29 days.

In 2016, the process involves 6 steps and 8 days. At the regional level, the DTI initiated the Inter-Agency Business Process Interoperability (IABPI) to streamline and fully au-tomate export and import procedures.

Regional Operations Group

DTI’s Regional Operations Group (ROG), responsible for implementing and monitoring the Department’s programs and projects throughout the country, focused its efforts to-wards fostering competitiveness in MSMEs, particularly for those based outside the National Capital Region (NCR).

Achieving inclusive growth goals meant placing the MSME agenda “front and center” of policies and programs; a better business environment had to be established to boost MSME productivity and the country’s competitiveness.

In line with ROG’s role of developing and implement-ing policies and programs to directly benefit MSMEs, it embarked on the nationwide “Negosyo, Konsyumer Atbp. (NKATBP): One DTI Services” program, visiting the various regions to integrate and make the range of services better known and bring these closer to the MSMEs.

Negosyo Centers and Shared Service Facilities (SSFs) were likewise inaugurated throughout the country to help MSMEs develop higher quality and more competitive prod-ucts, assist aspiring entrepreneurs at all stages of the busi-ness development cycle, as well as capacity building work-shops were conducted for doing business with e-commerce.

In the process, the Department’s Innovation Agenda gained headway. Building on the success of the first Fabri-cation Laboratory in Bohol, five more Product Innovation Centers with Co-working Spaces in partnership with lead-ing academic institutions, local government units (LGUs) and private sector partners were inaugurated.

Focused and sustainable interventions to boost MSME revenues were aligned with trade and industry policies and supported by a single-minded advocacy on both the do-mestic and international fronts. These were reinforced by partnerships with trade partners and the private sector and increased stakeholder engagements.

The value chain model was employed to promote various initiatives and interventions nationwide. This has yielded significant results in terms of bottom-line indicators for the national priority industries namely, rubber, coco coir, cacao, coffee, processed fruits and nuts, bamboo, and wearables and home style products.

These clusters, identified in the Philippine Exports De-velopment Plan (PEDP) have potential in utilizing increased market access to partner countries where the Philippines has preferential tariff agreements.

DTI services in the regions continue to create opportu-nities for increased stakeholder engagements and serve as venues for meaningful participation in discussions involv-ing issues, concerns, policy formulation and reforms, pro-grams, and projects relevant to MSME development and growth. With sustained efforts supported by partner agen-cies, over 2 million jobs have been generated in the country-side, an average of 12% annual growth from 2010 to date.

Industry Promotion Group

Marketing and promoting the country’s free trade agree-ments became necessary to increase their relevance to—and utilization by—the business community, particularly the MSMEs.

As early as 2010, the then Industry Development and Trade Promotions Group (now IPG) spearheaded a nation-wide information campaign called Doing Business in Free Trade Areas (DBFTAs) to boost awareness and the proper understanding of these free trade agreements (FTAs).

DBFTA sessions informed businesses on how to take advantage of preferential tariffs under the various FTAs.

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Key partner agencies in the DBFTA include the embassies of our FTA partners, the Tariff Commission, the Bureau of Customs, the Department of Agriculture, and other govern-ment agencies.

In 2013, the various promotion groups of the DTI were consolidated to form the Industry Promotion Group (IPG), whose mission was to establish the Philippines as a global brand. IPG carried out the growth strategies for exporters to penetrate these markets with MSMES as the primary tar-get of trade opportunities.

The DTI’s Foreign Trade Service Corps (FTSC) captures trade and investment opportunities in various markets around the world. As the Department’s international front-line officers, the FTSC organizes the country’s official busi-ness programs and facilitates Joint Economic Committees (JECs) in their respective areas of responsibility. These JECs are considered platforms to further bilateral relations.

On the local front, the IPG focused on expanding the mar-kets of MSMEs by spearheading domestic trade fairs and invitations to participate in international trade fairs. The DTI provides MSMEs market information and services such as product sourcing missions and market clinics, and the conduct of awareness sessions on marketing opportunities, business standards and ethics, including One Town, One Product (OTOP) providing assistance to micro and small en-terprises in rural communities for them to showcase their products and increase their sales.

Likewise, various campaigns were designed to showcase the country as an investment haven and a rich resource of manpower. Investor relations and servicing improved with the launching of the internet-based One Window Network of the BOI-Investment Assistance Center. This provided re-al-time linkages and interaction between investors - here and overseas – further easing the overall experience of do-ing business in the country.

In 2016, the agency embarked on innovation as a strat-egy to access the global digital economy. Slingshot Philip-pines or #SlingshotPH was institutionalized as the Startup and Innovation Ecosystem Development Program.

The successful hosting of “Slingshot Philippines the Event” further energized the stakeholders of the Philippine startup and innovation community, who were eager and yearning to launch new enterprises shaped by the advent of the game-changing realities of disruption, technology, and scale.

In early June, a Coworking Space was inaugurated in the DTI International Building that will serve as the Philippine Hub for Innovation. It is a place where the Startup and Inno-vation Community can regularly meet and exchange ideas, receive mentoring and advice on how to go about building

their businesses, and learn how to pitch their products and services to foreign investors & buyers. Moving forward, the space will serve as an incubator for technology-based start-ups geared toward the global market.

Consumer Protection Group

A major mission of the DTI is to empower consumers and maintain stable prices of basic commodities. The Consumer Protection Group (CPG), through its price monitoring activ-ities, has maintained its strong presence in the marketplace to ensure the compliance of retailers with the Suggested Re-tail Prices (SRP), especially during times of disaster. Under the Price Act, the DTI chairs the National Price Coordinating Council (NPCC) with CPG as its Secretariat.

Advocacies for consumer empowerment include “Kon-syumer at iba pa”, an award-winning weekly teleradyo pro-gram and the country’s leading program for consumer ed-ucation.

On the other hand, the DTI Bagwis Award (Bagwis seal), a recognition program for certified business establishments that practice fair business ethics and uphold the rights and welfare of the consumers as a core practice of business op-erations, is gaining ground. In this way, consumers’ inter-ests are safeguarded at all levels of business engagement.

The DTI-CPG reviews policies and aligns these with global and regional market quality requirements to create a more discerning domestic market and to compel local producers to improve the quality of their products and services.

DTI issues Department Administrative Orders (DAOs), and as needed, partners with other government agencies for Joint Administrative Orders (JAOs) to protect the rights of the elderly, rights of passengers, consumers purchasing motor vehicles with factory defects, among others.

For businesses, the CPG streamlined its Product Certifi-cation Scheme procedures to assistmanufacturers and im-porters whose products are under mandatory certification and introduced the territorial scheme of business name registration.

One of the advocacies of the CPG is the National Quali-ty Infrastructure (NQI) Bill—now pending in Congress—which aims to harmonize regulatory bodies, standards, metrology, accreditation, certification, and testing for Phil-ippine products.

The NQI Bill, when passed, will provide the framework for local producers to be on a par and more competitive with the international market.

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M A NAG E M E N T S E RV I C E S G R O U P

The Management Services Group (MSG) provides support services which include adminis-trative, financial, human resource management, legal, information and knowledge management, communication, procurement and other logistics support services.

Under MSG are the followingoffices:

• Corporate Planning Service (CorPlan)

• Financial and Management Service (FMS)

• Human Resource and Admin-istrative Service (HRAS)

• Information Systems Management Service (ISMS)

• Knowledge Management and Information Service (KMIS)

• Legal Service (LS)• Resource Generation

Management Service (RGMS)

Faster, Higher, Stronger

M A N AG E M E N T S E R V I C E S G R O U P

With its thrust to enable business and empower consumers, the DTI remains stead-fast in its commitment to a strong, robust governance system. The Management Services Group (MSG) provides the support to enable DTI to perform its roles aligned with strategic directions and founded on strong organizational values. Effecting this meant facilitating good governance across the Department’s structure, systems, and processes, to help bring about a high-performing organization. This report of the MSG narrates the programs that helped transform governance across the organization.

The directive early on of then Secretary Gregory L. Domingo was to adopt a perfor-mance management system that is credible, results-oriented, and aligns individual with organizational performance. The DTI adopted the Performance Governance System (PGS) because the National Competitiveness Council (NCC), where DTI is Chair, championed PGS and the Philippine Development Plan (PDP) encouraged the adoption of the balanced scorecard.

Management then identified the following transformations on the quality of interven-tions, how DTI manages data/knowledge and disseminates information/advocacy, work-ing as teams and according to the “way we do things”:

• To be a KNOWLEDGE organization where accurate, up-to-date and meaningful information is made accessible. DTI will preserve intellectual capital with knowl-edge as its primary resource and improve the way we create, capture, enhance, and reuse knowledge to achieve organizational objectives. From a culture of “Knowl-edge is power,” to “Sharing knowledge is power.”

• More focused, strategic DEVELOPMENT INTERVENTIONS which consider not only the immediate solution but also long-term impact. Programs based on com-prehensive understanding of client needs.

• For POLICY FORMULATION, from a passive policy making mindset, DTI will em-ploy an activist policy making mindset.

• DTI people need to become better COMMUNICATORS, transforming the “do and do” attitude to “do and tell” to keep the public informed. DTI will work to be an effective “coordinator” or driver and exercise leadership over inter-agency bodies.

• DTI employees will strive to become more effective ENFORCERS, more consistent and firm, but always high in integrity.

• Internally, DTI will change the way it does things, to achieve the objective of a ONE DTI, an organization that is well-coordinated, with harmonized policies, while maintaining check and balance.

• Establish DTI as the “AGENCY OF CHOICE”, with our personnel recognized by the public for professionalism, competence, commitment to service, and integrity. We will put our heart and soul to “Gawing lingkod bayani ang bawat isa naming ka-wani.”

With the transformation defined, Management developed the Strategy Map and the En-terprise Scorecard, which were branded as the Trade and Industry Prosperity Plan. The DTI Roadmap for 2012-2016 had four phases:

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1. CASCADING AND ALIGNMENT (2012-2013) — MSG cascaded the Enterprise scorecard to all the bureaus, agencies, regional and provincial offices for alignment

2. EXECUTION, EXECUTION, EXECUTION (2013-2014) — MSG rallied the bureaucracy to execute the strategies by ensuring accountability through the scorecards

3. PEOPLE AND PERFORMANCE (2014-2015) — Dashboards were installed and the Civil Service Commis-sion (CSC) approved the Strategic Performance Manage-ment System (SPMS) anchored on the PGS

4. CITIUS, ALTIUS, FORTIUS (2015-2016) — The focus was now to make the DTI faster, higher, and stronger!

ON STRENGTHENING PERFORMANCE MANAGEMENT SYSTEM

DTI adopted the PGS in 2012. Management set the vision of “A more prosperous Philippines” and transformed DTI’s mission into a catchy slogan “Enabling Business, Empowering Consumers.” The strategy map and balanced scorecard defined measures of success based on four perspectives: external stakeholders, core processes, people and organization, and resources. The enterprise scorecard

was then cascaded down to the employees for alignment, ensur-ing that everyone move in the same direction set by the organiza-tion. Hence, when the CSC directed government to implement a Strategic Performance Management System (SPMS), the DTI was ready. The CSC approved DTI’s SPMS in 2015 which institutional-ized the use of the PGS across the organization.

MSG intensified internal communication and launched the SPMS tagline “Serbisyong Higit Pa Sa Inaashan” as key message to employees on the rationale behind SPMS, i.e., adherence to the principles of effective governance and performance-based secu-rity of tenure, particularly commitment to motivate higher per-formance and promote greater accountability. MSG developed collaterals such as DTI Values shirts, AVP, weekly taglines that are featured during flag ceremonies.

Pursuant to the SPMS, MSG created the Performance Manage-ment Team (PMT), rolled out the Learning Experience to Advance Development (LEAD) and the Program on Rewards and Incentives for Service Excellence (PRAISE) as capacity building and incen-tives/recognition programs.

MSG raised the stature of System on Performance Rewards and Incentives (SPRInts) and improved its administration. Held annu-ally, SPRInts acknowledges exemplary DTI officials and employ-ees. Since 2013, 59 have been awarded, with recognitions “Official of the Year” and “Employee of the Year” given in years 2013 and 2014.

DTI also used the PGS in the grant of performance-based bo-nuses under the guidelines set by the DBM. For three consecutive years since 2012, DTI has been declared eligible for PBB. The ef-forts of MSG in steering the PGS and SPMS were recognized by governance experts.

In 2013, DTI passed the combined revalida for PGS Initiation and Compliance Stage and was conferred a Silver Trailblazer Award. And in 2015, achieving the PGS Institutionalization Stage, DTI was awarded a Gold Trailblazer Award and recognized as one of twelve Islands of Good Governance (IGG).

The trailblazer awards are given to organizations which scored 8.5-9.2 (Silver) and 9.21-10 (Gold) while the IGG seal is conferred to organizations who succeeded in the pledge to deliver break-through results at the grassroots level through their consistent use of governance mechanisms.

ON INSTITUTIONALIZING QUALITY FOR ENHANCEDPRODUCTIVITY

The DTI standardized its processes through alignment with the International Organization for Standardization (ISO) Quality Man-agement System.

DTI was among 60 agencies recognized by President Aquino for having implemented public service quality standards in the delivery of services through the adoption of QMS. By end of 2015, 76% (35 of 46) of bureaus/offices had been certified. Target is to attain 100% certification this 2016.

MSG automated its work processes, which resulted in faster turnaround times and higher customer satisfaction. Following Commission on Audit (COA) rules on common government trans-

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actions, the requirements for claims were further defined result-ing in faster processing from three days to 24 hours for simple claims and 48 hours for complex transactions.

The Financial Management Information Tracking System (FinMITS) has effectively handled the flow and recording of all transactions, mostly claims and obligations due for payment, which allow real-time monitoring and update of transactions sta-tus, reducing the overall processing time with the linkage from the submission of purchase requests to obligation of funds.

Records safekeeping has been digitized, facilitating easier and faster retrieval of documents. Likewise, asset management has been made more efficient through the implementation of the Sup-ply and Inventory Management System (SIMS), which contains the Annual Procurement Plan, Purchase Requests, and Purchase/Work Orders.

MSG also developed frontline applications such as the DTI web-site, DTI E-Library, Philippine Business Registry (PBR) and Busi-ness Name Registration Systems (BNRS), Tradeline Portal, among others. MSG also produced a Compendium of Department Admin-istrative Orders (DAOs) after a thorough review of all business- and consumer-related regulations issued by DTI.The number of active DAOs has been reduced from 257 to 124.

ON RAISING THE BAR ON INTEGRITY

With the Contact Center ng Bayan initiative in 2012, DTI fur-ther improved its DTI Direct Call Center. DTI also set up its Public

Assistance Desk to service walk-in queries, among others. The Cit-izen’s Charter was published on the website and posted in front-line offices.

DTI complied with the DBM’s directive to establish an Inter-nal Audit Service (IAS) tasked to conduct comprehensive audit of various DTI activities. IAS has already conducted an audit on the Shared Services Facilities, one of DTI’s key projects.

MSG maintained the Internal Audit Unit (IAU) created in 2009 pursuant to the Department’s adherence to the Integrity Devel-opment Action Plan (IDAP) initiative. It was tasked to investigate cases involving employees of the DTI.

DTI also prides itself in sustaining the highest Career Execu-tive Service (CES) occupancy rate among 20 National Government Agencies (NGAs) at 86.2%, based on the number of CESO and CES eligible officials occupying CES positions.

ON HARNESSING KNOWLEDGE AND COMMUNICATION

With its expansive knowledge base, the DTI has a wealth of in-formation that it can share about its programs and projects. Such resource was made available through the DTI website, which now features the DTI offices in the regions and overseas and the online integrated library system (ILS), both platforms providing 24/7 access to DTI programs and publications, as well as trade and in-dustry-related materials.

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MSG set up the Knowledge Resource (KR) Hub to enhance the culture of knowledge sharing within the Department. The KR Hub is a single online resource which serves as a central repository of organizational knowledge and materials.

Various information and communication channels were also leveraged to promote key messages to the public. Traditional channels such as print, television, and radio, were utilized and use of social media, particularly Facebook, where regular updates on DTI programs and projects, were promoted.

MSG facilitated the approval of DTI’s Information Systems Stra-tegic Plan (ISSP), invested in the necessary infrastructure, and modernized its data center to industry standard grade. DTI was one of the first government agencies that moved its “office” to the cloud, by acquiring proprietary Microsoft Office 365 productivity software.

ON MAINTAINING SOUND FISCAL MANAGEMENT

Over the years, DTI’s share to total national budget remained around 0.24% to 0.30% but total budget grew by about 13% on the average.

MSG successfully lobbied for funding for some of its key pro-grams and projects, called Strategic Initiatives in the DTI Enter-prise Scorecard. These include the SSF, the Industry Development Program, Doing Business in Free Trade Areas, among others. Ad-ditional resources were generated to address the funding gaps of DTI through technical assistance and grants.

Since 2010, a total of 26 foreign-assisted projects on trade pol-icy development and small and medium enterprise development have been approved by about 16 development partners.

MSG also employed measures to improve its system of report-ing through the Electronic New Government System (eNGAS), Electronic Budget System (eBudget), and the Unified Accounts Code Structure (UACS). Planning and budgeting were linked bet-ter through adherence to DBM’s Performance Informed Budget-ing.

WAY FORWARD

The gains from the implementation of the Department’s strate-gic initiatives must be harnessed. MSG will sustain all strategic in-itiatives and plans and continue to provide support that will drive impact to make DTI a more responsive agency. MSG will take a more active role in bringing about a DTI that gives faster service, sets higher standards, resulting in a stronger institution. MSG will continue to put in place reforms to enable the entire organization perform its best.

Promote organizational agility

In a rapidly changing, VUCA (volatile, uncertain, complex, am-biguous) environment, we must prepare the organization to re-new itself, adapt, and change. As the support group, the MSG must be able to quickly respond to change, and allow the organization to benefit from such change. One of the changes that will be ex-plored is to house all DTI offices in one building/area.

Innovate by adding value

As the saying goes, “disrupt, or be disrupted.” The MSG must lead the charge to transform our processes and modernize our systems. Our people will be capacitated with the use of the lat-est technologies, application of improved methods and processes, and relevant competencies and skills.

Leveraging on knowledge as a primary resource to help achieve organizational objectives, our approach to delivering services will be on ensuring that these are appropriate to the goals of the or-ganization and responsive to the needs of our clients.

Build a stronger institution

As we welcome a new Administration, we will facilitate the for-mulation of a new roadmap for DTI, aligned with the new Philip-pine Development Plan.

We will introduce reforms that will nurture our ability to move faster and be more responsive. With the PGS and SPMS as the springboard, MSG will bring about a new set of strategic initiatives and key programs to fulfill our mandates.

We remain true to the standards of performance of resolute commitment to public service and excellence that was accorded rewards. We will continue to take to heart our mission of enabling business and empowering consumers with “Serbisyong Higit Pa Sa Inaasahan.”

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I N D U S T RY D E V E L O P M E N T G R O U P

I N D U S T R Y D E V E L O P M E N T G R O U P The Industry Development Group (IDG) formulates and implements domestic industry development as well as invest-ment and international trade policies and strategies.

Under IDG are the followingoffices:

• Board of Investments (BOI)• Bureau of Import Services

(BIS)• Bureau of International

Trade Relations (BITR)• Competitiveness Bureau

(CB)• Sector Planning Bureau

(SPB) / E-Commerce Office (ECO)

MSMEs: Front and Center of

Sustaining the Gains

The Industry Development Group (IDG) takes pride in having directly contributed to (1) the sustained resurgence of the industry and manufacturing sectors and (2) the high levels of local and foreign investments which resulted to the highest six-year average Gross Domestic Product (GDP) growth in over four decades.

To build and grow industry, policy directions and reforms were established, including a set of complementary interventions which were implemented to enhance national and sectoral competitiveness in both short-term and medium-to-long term phases.

The short-term, high-impact intervention focused on reducing the stress and cost of doing business. This resulted to the Philippines being singled out as the most improved country by all major Ease of Doing Business (EODB) global indices. On the other hand, pol-icy-driven innovation provided the impetus for more medium-to-long term improvements in competitiveness.

Trade and Industry

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In relation to policy review and reform, the IDG, early on, crafted and implemented an Industry Development Program (IDP) consist-ent with the country’s International Trade Negotiation Agenda.

These policy programs comprise elements of an IDG-led coor-dinated strategy that effectively reversed more than a decade of continuous contraction or hollowing of the Philippines’ industri-al sector. The strong growth of industry saw the steady decline in unemployment at 5.7%, the lowest level in over a decade. Strongly positive investment figures for the early part of 2016, atypical in an election year, indicate heightened business confidence riding on an upward growth trajectory. This is complemented by the momen-tum of the industrial sector, with manufacturing sectors exhibiting growth levels not seen in decades. With a first quarter GDP growth of 6.9%, the Philippines became the fastest growing country in Asia, surpassing China (6.7 %) for the first time in over 27 years.

Policy Reforms: Industry Development, Enabling Business

At the start of the Aquino Administration in 2010, industry’s contracted growth was at its peak—with the economy driven by consumer spending, fuelled by remittances from Overseas Filipino Workers (OFWs), and income from Business Process Outsourcing (BPO).

Trade was concentrated in terms of markets (United States (US) and China) and products, mainly electronics. Philippine exporters were disadvantaged across markets due to the lack of preferen-tial access to key markets through Free Trade Agreements (FTAs). Neighboring countries like Vietnam, Indonesia, Thailand, and Malaysia actively pursued FTAs while the Philippines remained traumatized by the acrimonious three-year Senate ratification pro-cess for the Philippines-Japan Economic Partnership Agreement (PJEPA), the country’s only bilateral FTA.

As an organization, the DTI was likewise conflicted as policy-making for trade and industry development was separately under-taken by different functional groups (i.e. International Trade Group and the Industry and Investments Group).

The DTI embarked on an integrated approach to implement a program that would revitalize the country’s industry development, pursue a confident trade negotiation agenda, and simplify business regulations.

A three-step approach was undertaken:

1. We defined how things will be done through a Pro-cess Framework for a Unified Industry Development and Trade Policy (i.e. The Three Pillars Framework)

2. We identified who will do what; the DTI was re-or-ganized to align industry development and trade pol-icymaking under the Industry Development Group

3. We identified what had to be done; together with the academe and the private sector, we formulated the substantive content of the industry and trade policy (i.e. the Industry Development Program and the In-ternational Trade Negotiation Agenda)

Framework Development: Three Pillars of a Unified Industry Development and Trade Strategy

The Unified framework integrates action programs for In-dustry Competitiveness (through, for instance, the Industry Roadmaps) and the country’s Trade Negotiating positions. Three inter-related programs capture this integration: (1) One Country, One Voice; (2) One Country, One Network; and (3) One Country, One Team.

• One Voice – institutionalizing stakeholder partic-ipation by providing inputs to trade negotiating positions;

• One Network – establishing an organized net-work of research and academic institutions to pro-vide research and analytic support to trade nego-tiations;

• One Team – strengthening the National Economic and Development Authority (NEDA) Tariff-Related Matters (TRM) Committee as clearing house for trade negotiating positions and building the ca-pacity of TRM agencies for negotiations.

• Restructuring DTI Functional Groups to align trade policy-making and industry development under the Industry De-velopment Group. This restructuring ensured consistency between trade negotiating positions and with industry de-velopment aspirations (i.e. trade negotiation as a tool for industry development).

• Formulated the intrinsic elements of industry develop-ment and trade negotiation strategy.

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• DTI revisited Industrial Policymaking and adopted a Pub-lic-Private Partnership approach (industry-led, govern-ment-facilitated) in formulating and implementing indus-try and sectoral roadmaps. To date, there are 40 industry roadmaps, each with a corresponding public-private tech-nical working group that implements action plans and ad-dresses key short to long-term constraints.

• The Board of Investments (BOI), in collaboration with auto industry stakeholders and the academe, advanced Exec-utive Order (EO) 182, also known as the Comprehensive Automotive Resurgence Strategy (CARS) Program, which provides fiscal support for investments in the manufacture of whole body large plastic parts, other strategic parts not currently produced locally, and variable incentives to in-duce both volume production and logistics efficiency. An analytical and consultative process was also initiated to identify 2 to 3 more industries/sectors that stand to ben-efit from a focused, performance-based incentive package such as the CARS Program.

• The DTI advocated the amendment of EO 226 (Omnibus Investments Code) to (1) create more decent jobs (e.g. remove export-bias and make it nationality-neutral—i.e. greater opening to foreign investments for creating de-cent jobs); (2) create more domestic ecozones (i.e. apply-ing export zone incentives to manufacturing and service companies that will access the domestic market); and, (3) encourage the practice of Inclusive Business among larg-er corporations. Through the National Competitiveness Council, the DTI is also seeking to retire obsolete and/or redundant administrative rules and regulations through “Project Repeal.”

• In 2016, with various industry roadmaps being imple-

mented, the Comprehensive National Industry Strategy (CNIS) was launched to provide (1) an integrative frame-work for all the roadmaps and (2) a platform for the con-vergence of Industry strategy, Agriculture and Services. Equally important, framework documents for addressing

important cross-cutting issues were also launched: (1) the E-Commerce Roadmap; (2) the National Logistics Master Plan (NLMP); and, (3) the National Quality Infrastructure (NQI) Bill.

• The DTI also harnessed e-commerce opportunities to pro-vide an enabling environment for e-commerce develop-ment through the formulation of the E-Commerce Roadmap 2016-2020 and, the Enhanced Business Name Registration System (e-BNRS), an integrated end-to-end software that allows for electronic payment.

• The President’s approval of DTI’s proposed International Trade Negotiation Agenda in 2011 enabled the agency to be in cadence with the ASEAN competitors’ aggressive pursuit of trade agreements and acquiring preferential access for domes-tic products and services from 60% (in 2010) to at least 80% of the country’s international markets.

The Agenda utilized a whole range of international trade pol-icy tools and mechanisms: from enhancing market access through Generalized System of Preferences (GSP), fostering co-operation as a platform for strengthening economic relations through Joint Economic Commissions (JECs), to negotiating FTAs. It also covered all major markets, with a focus on diversi-fying concentration away from the US and China.

These initiatives bore fruit when the Philippines surpassed Thailand, Indonesia and Malaysia in mid-2015 relative to the progress of discussions/negotiations with the EU and the sign-ing of an FTA with the European Free Trade Association (EFTA).

The Philippines positioned itself, as well, subject to a detailed cost-benefit study, for possible quick accession to the Trans Pacific Partnership (TPP), overtaking preparations by Thailand and Indonesia.

Through the leadership of the DTI and the BOI, the private sector crafted the Chemicals Industry Roadmap and convened a technical working group 6 times to lock-in concrete interventions needed to address both short-term e.g. Philippine National Police (PNP) Regulation on Transport of Chemicals and long-term issues e.g. Infrastructure require-ments to facilitate movement of chemicals in

Batangas.

The Philippines’ chemical industry has experienced a strong, sustained, and double digit growth of 41% in the first quarter of 2016, surpassing electron-ics in terms of gross value added and making it the second largest manufac-turing subsectors.

DTI provided a venue for collaboration through Partner-ships for Growth (PFG) namely, the Organisation for Economic Co-operation and Development (OECD), in cooperation with the Japan International Coopera-tion Agency (JICA) and various government agencies to increase awareness of Shared Service Facilities, including FabLabs that provide a place for equipments (e.g. coffee dryers and roasters, computerized embroi-dery machines. Packaging equipment, pas-teurization equipment for carabao milk, among others) from donor agencies to as-sist micro, small and medium enterprises (MSMEs), Deutsche Gesellschaft für Inter-nationale Zusammenarbeit (GIZ) GmbH, RTI International, and with the assistance of the United States Agency for International De-velopment (USAID) and the European Union (EU) through the Trade Related Technical Assistance (TRTA) Project on trade policy-making and industry development.

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• Ease of Doing Business

To complement the policy initiatives of the IDG, efforts to improve the business environment were pursued by simplifying regulatory procedures.

In particular, the DTI reduced the business registration processes through the Nationwide Streamlining of Business Permits and Licensing Systems (BPLS). In 2015, the process took 16 steps and 29 days. In 2016, the process involves 6 steps and 8 days. The BPLS was implemented in 2011 to improve business licensing procedures. On the regional level, the DTI has initiated the Inter-Agency Business Process Interoperability (IABPI) to streamline and fully automate export and import procedures.

KEY ELEMENTS OF THE INTERNATIONAL TRADE NEGOTIATION AGENDA

Americas

• US – engagement by closing outstanding issues under the Trade and Investment Framework Agreement (TIFA); commence FTA engagement through technical consultations on the TPP

• Explore possible JECs or FTAs with Canada, Mexico, Chile, and Peru

Europe • Three Pillars Strategy – secure EU GSP+ status; pursue FTA with the EU; and, conclude an FTA with EFTA• Explore trade and investment opportunities with Russia and the Czech Republic through JECs

Asia• Conclude negotiations on the Regional Comprehensive Economic Partnership (RCEP), focusing on Goods,

Services, and Investments• Participate actively in ASEAN+1 FTAs, focusing on implantation and cooperation and no new commit-

ments; open to ASEAN – X Philippine arrangements• Actively engage Vietnam and Indonesia in addressing non-tariff measures (NTMs) faced by Philippine

exporters in their markets• Strengthen bilateral relations with Australia (e.g. through the Philippines-Australia Ministerial Meeting

(PAMM) and the Philippines-Australia Trade, Investment and Industry Dialogue (PATIID))• Strengthen trade and investment relations with China, despite political-security disputes

Japan • Initiate General Review of the Philippines-Japan Economic Partnership Agreement (PJEPA), focusing on

securing market access for agricultural products and establishing framework for the deployment of pro-fessionals and skilled workers in certain categories

• Secure Japan’s commitment for technical assistance in developing the Philippines as a regional hub for selected manufacturing industries and Human Resource Development (HRD)

EU GSP+In 2015, Philippine exports to the EU, under the GSP+ increased by 27%. Products

which experienced increased exports were: machinery/nuclear reactors, meat/edible meat offals, iron or steel, rubber, electronics, aircraft and spacecraft parts, exports of opti-cal, photo and medical equipment and exports of animal/vegetable fats and oil.

GSP wins: EU GSP+ | Refinancing for US GS | Closure of GSP-related Labor Review

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R E G I O NA L O P E R AT I O N S G R O U P

The Regional Operations Group (ROG) is responsible for the field operations of the DTI in the regions and provinces.

Under ROG are the follow-ing offices:

• 17 Regional Offices and 81 Provincial/City/Offices

• Bureau of Small and Medi-um Enterprise Development (BSMED)

• Small Business Corporation (SB Corp.)

• DTI-Comprehensive Agrarian Reform Program - (CARP)Program Management Office (PMO)

R E G I O N A L O P E R AT I O N S G R O U P

Inspiring the Countryside

In 2010, DTI saw a changing world that was becoming more connected. This connected world has opened up new methods in engaging in international trade. We also faced other challenges: the growing and aggressive economies in Asia, the rise of global and regional supply chains, the proliferation of free trade agreements, and serious climate change is-sues.

With these developments, we were compelled to respond quickly and to rely on in-novative strategies to remain competitive in the international trade market and sustain economic growth.

Micro, small, and medium enterprises (MSMEs) constitute more than 98 percent of the country’s enterprises, and employ 61% of the national workforce. Achieving inclusive growth goals meant placing the MSME agenda “front and center” of trade policies and programs.

To do this, we needed to develop a better business environment and boost the country’s competitiveness and MSME productivity.

ROG, primarily tasked to deliver DTI services in the regions, initiated programs to en-sure efficient delivery of business development services, including the formulation and implementation of policies, plans and projects that can benefit MSMEs, especially for those based outside the National Capital Region. These programs include One Town, One Prod-uct (OTOP), SME Caravan (later enhanced to SME Roving Academy or SMERA), Exports Pathways Program, and Industry Development Programs, among others. “Do Good, Be Felt, Make a Difference,” was ROG’s mantra.

Accomplishments 2010 - 2016

As frontliners of the Department, the ROG went full throttle for the period towards achieving positive results and new breakthroughs. With its sustained efforts backed up by partner agencies, over 2 million jobs have been generated in the countryside which grew by an average of 12%

These also included focused and sustainable interventions to boost MSME revenues aligned with trade and industry policies, a single-minded advocacy on both the domestic and international fronts, partnerships with trade partners and the private sector, and in-creased stakeholder engagements.

ROG is taking a proactive role in adopting and sustaining the Industry Clustering, it being an enshrined strategy for small and medium enterprise development under the Philippine Development Plan 2011 to 2016. DTI leveraged on the value chain model to support the dominant and emerging industries/subsectors that show market and income potential. Various initiatives and interventions in promoting and fostering industry devel-opment nationwide yielded significant results in terms of bottom-line indicators for the national priority industries namely, rubber, coco coir, cacao, coffee, processed fruits and nuts, and wearables and homestyles. Likewise, these clusters have potential in utilizing increased market access to partner countries where the Philippines has preferential tariff agreements.

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MSMED PLAN 2011 - 2016 MIDTERM UPDATE RESULTS FRAMEWORK


DTI, as chair of the Micro, Small and Medium Enterprise Development (MSMED) Council led the implementation of the MSMED Plan 2011-2016. The Plan aimed to generate at least 2 million new employment by 2016 in MSMEs with strong links to the global value chain. To do this, the MSMED Plan identified 4 outcome areas, namely: Business Environment (BE), Access to Markets (A2M), Access to Finance (A2F), and Productivity and Efficiency (P&E).

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AMOUNT OF DOMESTIC SALES(in Php Million)

Improved MSME and consumer-related services

The MSME agenda involved providing easy access to services to support MSME growth. Improvement in service delivery included one stop-shop hubs, shared facilities, trainings, summits and other events, education, and media programs that would provide support at all stages of a business.

DTI services in the regions also create opportunities for in-creased stakeholder engagements and serve as venues for discus-sions of issues, concerns, policies, programs and projects relevant to MSME development and growth.

To promote ease of doing business and facilitate access to ser-vices for MSMEs, Negosyo Centers, being established nationwide, support MSMEs with business registration assistance, business advisory, business matching, information and advocacy, among others. A total of 252 Negosyo Centers have been established in the country from 2014 to June 2016, assisting 236,476 clients, majority of whom are existing or newly created entrepreneurs.

By virtue of Republic Act No. 10644 (Go Negosyo Act), Negosyo Centers are being established in all provinces and cities nationwide to promote ease of doing business and facilitate access to services for MSMEs which include business registration assis-tance, business advisory, business matching, information and ad-vocacy, among others. From 2014 to June 2016, a total of 252 Ne-gosyo Centers have been established nationwide assisting 236,476 clients, majority of whom are existing or newly created entrepre-neurs.

A fabrication laboratory (fablab) is a space for making, co-cre-ating, innovating, learning and sharing knowledge. The establish-ment of Fabrication Laboratories (FabLabs) in the country is a flagship program of DTI to encourage innovation and creativity.


FabLabs are a global network of local labs enabling innovation by providing individuals access to tools for digital fabrication. Phil-ippine Fablabs are part of the eco-system of the Negosyo Center.

As of June 30, 2016, there were five (5) FabLabs established na-tionwide. The DTI launched the country’s first FabLab in Bohol in 2014. The Bohol FabLab, located at the Bohol Island State Universi-ty, helped the entrepreneurs produce travel retail products in short runs, prototype furniture and even a working “printed” house as part of the post-earthquake recovery program of the province.

Six FabLabs were launched within the first semester 2016 in San Ildefonso, Ilocos Sur; Santiago City, Isabela; Clark and Bacolor, Pampanga; Legazpi City, Albay; and Cebu City. DTI is set to open three more Negosyo Centers with FABLab Co-working spaces in 2016.

The Shared Service Facilities (SSF) Project, implemented by regional and provincial offices, is aimed at increasing the produc-tivity and improving the competitiveness of MSMEs by providing them with machinery, equipment, tools, systems, accessories and other auxiliary items under a shared system.

A Php700 million project fund was appropriated in the FY2013 GAA for the acquisition of SSF machineries and equipment, and an-other Php700 million in FY2014 GAA intended for the same pur-pose.

SSF projects are managed by cooperators (e.g., NGO, people’s organizations, cooperatives, industry/trade/business associations, LGUs, state universities/colleges) for the common use of MSME beneficiaries engaged in the processing of abaca, bamboo, cacao, kalamansi, ceramics and pottery, coconut/coco coir, coffee, dairy, fashion accessories, furniture and furnishings, gifts, décor and housewares (GDH), handicrafts, meat (fresh and processed), metal and metalworks, milkfish, muscovado, organic fertilizer, pineapple, processed food, renewable energy, rubber, seaweeds, tuna, and veggie noodles. As of June 30 2016, a total of 1,931 SSFs were es-tablished throughout the country.

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are responsible for promoting ease of doing business and facilitating access to services such as Business Registration, Business Advisory, Business Information and Advocacy, Monitoring and Evaluation, among others.

As of June 30, 2016, a total of 252 Negosyo Centers have been established nationwide.

NEGOSYO CENTERSis a project that aims to improve the competitiveness of MSMEs by providing them with machinery, equipment, tools, systems, skills and knowledge under a shared system.

As of June 16, a total of 1,931 Shared Service Facilities have beenestablished nationwide.

SHARED SERVICE FACILITIES

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The SME Roving Academy (SMERA) is a continuous learning program that aims to help MSMEs set up and step up operations as well as improve competitiveness. Better managed MSMEs have more chances to ac¬cess domestic and international markets.

From 2013 to May 2016, a total of 5,666 runs of various entre-preneurship and skills training seminars have been conducted na-tionwide benefiting a total of 242,455 potential and existing entre-preneurs.

Negosyo Atbp. (ROG’s Business Education Program)

To encourage the public to engage in businesses, DTI-ROG on January 28, 2015, launched a business education radio program titled “Negosyo ATBP.” The program serves as a venue to discuss DTI’s existing programs for aspiring entrepreneurs, MSMEs, ex-porters, sole proprietors, and investors.

Former Agham Partylist Congressman Angelo Palmones and ROG Supervising Undersecretary Zenaida Maglaya serve as the pro-gram’s co-hosts. Currently on its sixth season, the program tackles the procedures and requirements in starting a business. The tele-radyo program, in partnership with DZRH and its affiliate stations nationwide, airs weekly.

Negosyo, Konsyumer Atbp

Negosyo, Konsyumer Atbp (NKAtbp) dubbed as “One DTI Servic-es,” brings closer to the MSMEs and consumers the integrated menu of DTI Services and Programs. These include the four pillars of the 2011-2016 SME Develop¬ment Plan: 1) enabling business environ-ment, 2) access to finance, 3) access to market and 4) productivity

and efficiency. Six (6) NKATBP runs were conducted in the cities of Vigan (R1), Santiago (R2), Legazpi (R5), Cebu (R7), Tacloban (R8), and Davao (R11) within the first semester 2016 generating a total of 27,966 participants. Nine (9) runs will still be conducted in the second semester in Baguio (CAR), Marikina (NCR), Angeles (R3), Tagaytay (R4A), Iloilo (R6), Zamboanga (R9), Cagayan de Oro (R10), General Santos City (R12), and Butuan City (CARAGA).

Access to Finance

The Small Business Corporation (SB Corp) is DTI’s credit facil-ity. It envisions to be the leader in small enterprise development financing and small credit delivery systems. The Corporation has focused on developing an appropriate mix of financing products that are responsive to the needs of SMEs.

Credit facilities includes wholesale and retail lending programs, which targets banks engaged in MSME lending, and pre-bankable small to medium sized businesses. The credit guarantees services banks with SME accounts that require additional collateral cover.

DTI is one of the participating agencies in the implementation of Bottom-up Budgeting (BuB), a program that seeks to increase citizens’ access to local service delivery through a demand-driven budget planning process.

BUB is aligned with the Philippine Development Plan’s (PDP) goal of inclusive growth and poverty reduction, and promoting good governance at the local level. There were 2,079 approved projects from 2013-2016 with a total project cost of P1.7 billion.

Servingdisaster-affectedareasandCARP-beneficiaries

After a disaster, DTI responds by ensuring that there is a stable supply of basic goods at reasonable prices. This is done through the Diskwento Caravans where goods are made available to the affected communities at discounted prices. For the long-term recovery and rehabilitation of disaster-affected communities, DTI then embarks on the implementation of sustainable livelihood programs and pro-jects.

The Diskwento Caravan, which provides consumers a broad range of merchandise to choose from at reasonable prices, especial-ly during times of disasters now cater to the various needs of con-sumers through the Regular Edition Diskwento Caravan, Balik-Esk-wela Edition, and Holiday (Noche Buena) Caravan Edition.

DTI’s participation in the implementation of the Comprehensive Agrarian Reform Program (CARP) started in 1989 with the creation of DTI-CARP. DTI-CARP was established in support of CARP’s focus on rural development.

DTI promotes entrepreneurship and enterprise development among the agrarian reform beneficiaries (ARBs) and the CARP-af-


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fected landowners, and the extension of support services for their MSMEs in agrarian reform communities. The program components are training seminars, studies, market development assistance, and consultancy services. In 2015 , 918 ARCs were assisted while 828 ARCs were assisted in January to June 2016 under the program.

International Initiatives and Engagements

During the Philippines’ APEC hosting in 2014, DTI led efforts to globalize MSMEs through the Boracay Action Agenda for MSMEs (BAA-MSMEs), which aim to promote MSME participation in cross-border trade, either as direct exporters or through global value chains (GVCS). Subsequently, the DTI’s advocacy gained more ground with the APEC Iloilo Initiative: Growing Global MSMEs for Inclusive Development, which served as the guiding framework of the BAA-MSMEs.

The Ministers also agreed to launch “APEC MSME Marketplace,” a one-stop portal that provides access to information related to doing business in the regions and presents projects and activi-ties that promote MSME integration to international trade. At the 22nd ASEAN Economic Ministers’ (AEM) Retreat held in Chiang Mai, Thailand (March 2016), the DTI emphasized the role of mi-cro, small, and medium enterprises (MSMEs) in regional and glob-al markets. The Philippines pressed for inclusion of MSMEs in the Regional Comprehensive Economic Partnership (RCEP) Agreement and ASEAN Plus One Free Trade Agreements (FTAs). Likewise, DTI partnered with the University of the Philippines (UP) Institute for Small-Scale Industries for the “Establishment of Regional Program for the Promotion of Internship Scheme for Staff Exchanges and Visits for Skills Training.”

The project sought to improve the competitiveness of SMEs in the ASEAN region by opening opportunities for developing or en-hancing business competencies (i.e., internship schemes and busi-ness exposure activities).

Promotion of Green Economic Development (ProGED)

ProGED is a four-year project that ran from 2013 to 2016. The program underscored environmental issues, now a major concern when it comes to MSME competitiveness. MSMEs were educated on the application of earth-friendly procedures and measures that can help make operations more environmentally sound. During its first year of implementation, the project covered the provinces of Cebu and Bohol and focused on tourism sectors and subsectors. By end of the program, 14 more provinces were covered by the project: Pampanga, Tarlac, Laguna, Cavite,, Palawan, Occidental Mindoro, Albay, Camarines Sur, Negros Occidental, Capiz, Negros Oriental, Siquijor, Agusan del Norte, Surigao del Norte.

National Industry Cluster Capacity Enhancement Project

The NICCEP, funded by the Japan International Cooperation Agency (JICA), was implemented from the first quarter of 2012

and to the first quarter of 2015. Through NICCEP, the government provided capacity-building interventions and other related activ-ities that can enable industry stakeholders maximize available entrepreneurial opportunities. Through NICCEP, the government was able to provide capacity-building interventions and related activities that help boost industry stakeholders’ participation in the value chain. This enabled stakeholders to maximize available entrepreneurial opportunities beyond farming for those in agri-based clusters. From 2012 to 2015, DTI has monitored a total of Php13.356 B investments, and Php 18.970 B domestic sales gen-erated from the identified pilot industry clusters nationwide under NICCEP. The project has supported the creation of 251,232 jobs, and assisted around 18,403 MSMEs.

Rural Micro Enterprise Promotion Programme

Rural Micro Enterprise Promotion Programme (RuMEPP) was a seven-year (2007-2013) International Fund for Agricultural Devel-opment (IFAD)-assisted program. It promoted the establishment of sustainable micro enterprises to create more jobs and increase income among poor rural households. RuMEPP was implemented in 26 provinces of which 19 had a poverty incidence greater than the national average. The regions included: CAR (Abra, Ifugao, Ka-linga) Region V (Albay, Camarines Sur, Catanduanes, Masbate, Sor-sogon) Region VIII (Biliran, Eastern Samar, Leyte, Northern Samar, Western Samar) Region XII (Sarangani, South Cotabato)and Region XIII (Agusan Del Norte, Agusan Del Sur, Surigao Del Norte, Surigao Del Sur). The Microfinance Credit and Support (MCS) component provided credit to 57,330 micro enterprises (MEs), as opposed to the original target of 35,000 MEs. A total of 95 MFIs were accredit-ed, which was 20 more than the project target of 75.

The Micro Enterprise Promotion and Development (MEPD) component of the Program assisted 32,318 MEs, more than dou-ble the post-mid-term review target of 15,000 target MEs. The MCS-MEPD convergence, where MEs were provided with both credit and business development services, reached 14,965 out of the target 15,000 MEs.

Intensifying the MSME advocacy

MSMEs will sustain our robust Philippine economy. What we need to do is to support them to be more competitive and innova-tive. We look forward to developing business incubation initiatives, to more co-working spaces and facilities, to nurture start-up en-terprises, and to more MSMEs occupying the e-commerce space. We would like to build disaster-resilient MSMEs and to restore sustainable livelihood activities to provide additional income to 32,359 micro entrepreneur-beneficiaries in Yolanda-affected areas in Regions 5, 6, 7, and 8.

In all these, we are mindful of a culture of quality for Philippine MSME products and services that will be enjoyed by both local and foreign markets.

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I N D U S T RY P R O M O T I O N G R O U P

The Industry Promotion Group (IPG) crafts policy formulation, standards develop-ment, and program monitoring on the development regulation and service delivery programs of the Department pertinent to international trade and com-merce.

Under IPG are the following offices:

• Bureau of Domestic Trade Promotion (BDTP)

• Export Marketing Bureau (EMB)

• Foreign Trade Service Corps (FTSC)

• Center for International Trade Expositions and Missions (CITEM)

• Design Center of the Philippines (DCP)

• Philippine International Trading Corporation (PITC)

• Philippine Trade Training Center (PTTC)

I N D U S T R Y P R O M O T I O N G R O U P

The year 2010 would be remembered as the turning point of the Philippine economy. From a GDP growth rate of only 0.9% in 2009, the Philippines registered a remarkable 7.7% surge by the end of 2010. Sustained foreign direct investments (FDIs) from USD 1.1 billion in 2010 to a remarkable US$ 5.5 billion in 2015 stand testament that the Philip-pines has transformed into one of the preferred investment destinations in Asia.

Much of this success can be attributed to sound economic policies, strengthened eco-nomic programs and aggressive organizational reforms.

At the Department of Trade and Industry, for example, a re-organization of the Trade and Investment Promotion Group under the Rationalization Plan was implemented in 2013 to form a more responsive and relevant bureaucracy in a constantly changing eco-nomic landscape.

Previous to this, various promotion groups within the Department functioned inde-pendently until these were consolidated to form the Industry Promotion Group (IPG) un-der one Undersecretary.

The reorganization resulted to seamless and harmonized coordination where data were shared, strategies were synchronized, costs were optimized, and overall teamwork greatly improved. The IPG became a well-oiled machine and was set to transform the Philippines into a global brand.

DefiningDirections

The IPG leads in implementing the programs, activities, and projects that promote the Philippines as a top investment destination in Asia – leveraging on its highly skilled and world-class human resources.

To further enhance the country’s brand in world market, IPG launched the INVEST Phil-ippines campaign on CNN during the 2015 APEC hosting. This campaign gave the Phil-ippines additional media mileage estimated at USD 3.2 million or over 100% return on investments.

Moreover, this targeted media campaign resulted to an increased country brand aware-ness by 85%; achieved an 89% message recall; and, influenced the target markets’ prefer-ence for the Philippines by 73%.

By positioning the Philippines as a haven for sound investments and quality manpower, IPG set about in reinforcing and promoting the backbone of this campaign through various programs and initiatives of its attached agencies and bureaus.

The Bureau of Domestic Trade Promotion (BDTP) focused on enhancing MSMEs’ access to markets. The Bureau continues to provide MSMEs market information and ser-vices such as product sourcing missions and market clinics, and the conduct of awareness sessions on marketing opportunities, business standards and ethics.

The Bureau strengthens the One Town One Product (OTOP) brand to help micro and small enterprises in rural communities showcase their products and increase their sales.

From 2010-2016, the BDTP conducted 23 domestic national trade fairs, assisting 3,283 MSMEs and facilitated the participation of 106 SMEs in international trade fairs.

Turning the Philippinesinto a Global Brand

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Overall, the Bureau assisted a total of 6,191 MSMEs and generat-ed total cash sales of PhP 868.176 million.

The Export Marketing Bureau (EMB) executes the growth strategies for exporters. As the lead export bureau, it implements the 2015-2017 Philippine Export Development Plan (PEDP) aimed to provide timely interventions to help exporters increase their ex-port business and overcome tighter competition and the challenges of a volatile trading environment.

From 2010 to 2016, the EMB conducted 68 outbound and 141 inbound business missions which include business matching ses-sions to develop and/or expand market share. The EMB regularly disseminates relevant export-related information to stakeholders through the sustained conduct of Doing Business in Free Trade

Areas (DBFTA) Program. To date, this program has conducted a to-tal of 873 sessions with 94,873 participants representing 29,387 companies.

The Regional Interactive Platform for Philippine Exporters (RIP-PLES) was developed to expand the supply base of international-ly-competitive local export products and services by extending strategic firm-level interventions to participating companies, mak-ing these globally competitive.

In 2015, 19 RIPPLES-assisted companies earned US$ 80,000 through the exhibition of their products in the International Food Exhibition (IFEX). Other programs that aim to assist local manufac-turers and improve competitiveness include the Philippine Export Competitiveness Program (PECP) and the Halal Export Industry Development Program.

The Foreign Trade Service Corps (FTSC) captures trade and investment opportunities in various markets around the world. As the Department’s international frontline officers, the FTSC or-ganized the official business programs of H.E. President Benigno S. Aquino III in 23 of his official trips abroad, including the Europe visit on September 2014 which yielded US$ 2.3 billion investment pledges from sectors such as aerospace, Maintenance Repairs Op-erations (MRO) training, and the IT-Business Process Management.

The FTSC posts have facilitated Joint Economic Committees (JECs) in their respective areas of responsibility. These JECs are considered platforms to further bilateral relations in pursuit of the Philippine economic agenda.

Business-matching events, commercial intelligence work and business development activities are regular achievements in the Philippine Trade and Investment Centers around the world.

Recent notable investments include the PhP 1.2 Billion of Enovix (US), a lithium ion battery manufacturer whose facility will support the innovation thrust of the country, in general, and the e-vehicle sector, in particular. Similarly, BEMAC (Japan) is setting up to pro-duce up to 20,000 e-tricycles.

The FTSC spearheaded the launch of Slingshot 2015, the official APEC event for startups and innovation. Building on the success of this pioneering initiative, 2016 ushered in Slingshot Philippines,

EXPORT PERFORMANCE

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the DTI’s brand for the program that will develop the Philippine startup ecosystem and embark on innovation as a strategy to ac-cess the global digital economy. This program included several in-dustry and inter-agency dialogues that led to a national startup and innovation summit.

The FTSC posts in the US have pursued initiatives to promote the Philippines as a prime destination for the Healthcare Informa-tion Management Systems, a sector that has displayed phenomenal growth for Philippine outsourcing, opening new employment op-portunities for Philippine healthcare professionals.

The entry into the Philippines of Blizzard Entertainment (US), and Ubisoft (France), the world’s third largest game developer, are proof positive of the gains from efforts to attract more investments in the game development sector.

The BOI – Investment Promotion and Assistance Service Units tap into new investments through business development and customer care. The concerted efforts of these service units gener-ated leads and realized investments registered through the Board of Investments, the Philippine Export Processing Zone Authority (PEZA) and other Investments Promotion Agencies (IPAs).

International investment promotion efforts through 73 out-bound missions, 910 inbound missions and business matching activities yielded 151 projects with an estimated total equity of PhP 278.6 billion. Notable investments are: Marubeni Corpora-tion, Uniqlo, Ban dai Namco, Sumitomo Bank, Nestle, Unilever, Transcom. Passar/Glencore, Tata Consultancy, Grupo Leche, Luen Tai, Coca Cola -Femsa, EXL, Convergys, and Telstra.

Domestic investment promotion extended assistance and capa-bility building services to the Local Government Units (LGUs), spe-

cifically in crafting Local Investments and Incentives Codes (LIIC). These helped draw more investments outside of the National Cap-ital Region. 108 LGUs were trained and assisted, 86 of which, or 80%, had passed and are implementing their LIICs.

The institutionalization of the Philippine Investment Promotion Plan (PIPP) with the IPAs, synchronized Philippine branding and promotion efforts to the target markets. Consequently, this brought in Php 4.11 trillion worth of committed and approved investments in various IPA locations.

Investor relations and servicing improved with the launching of the internet-based One Window Network of the BOI-Investment Assistance Center. This provided real-time linkages and interaction between investors - here and overseas – further easing the overall experience of doing business in the country.

Philippine Trade Training Center (PTTC) is the destina-tion for trade training for MSMEs.PTTC develops training curricula that cover relevant subjects such as export marketing and management, Doing Business in Free Trade Areas (DBFTA), entrepreneurship, productiv-ity techniques, ISO 9001:2008 training series, and trade exhibition manage-ment and participation.

PTTC had a total of 174 training sessions and seminars attended by 5,997 participants with 97% of them giving a satisfactory eval-uation. The Center facilitated over 484 training programs attended by 14,743 participants from various sectors.

In 2013, the Center developed and launched a project for the food industry called the “Philippine Traceability System (PTRACE).” PTRACE aims to position the Philippines as a supplier of safe, qual-ity, and traceable fresh and processed food products to both local and international markets.

PTTC conducted the Training of Trainers (ToTs) in the ASEAN Economic Community with a total of 99 participants coming from different provinces. EU GSP+ ToT in 2015 was conducted to build the DTI’s internal capacity for its nationwide advocacy campaign on the benefits of the EU GSP+.

The Design Center of the Philip-pines (DCP) promotes design as a cre-ative tool for improving the quality and competitiveness of Philippine products for the global market.

With the passage of Republic Act (RA) 10557, the DCP has been stream-lining its activities under five functional

groups: Design Learning, Design Innovation, Design Promotion, Design Services, and Design Protection.

DCP’s recent participation in five exhibits at the Manila FAME to showcase the work of innovators and designers stimulated re-newed interest on design-based solutions. DCP organized three (3)

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simultaneous Design Assemblies and Exhibitions in line with the celebration of Design Consciousness Week. The DCP has provided a total of 610 design services for Regional MSMEs, and rendered 3,332 technical assistance through its continued design mentoring and development services, such as: the incubation program for in-dustrial designers, on-the-job training program for industrial de-sign students, and the designers’ capability enhancement program.

The Center for International Trade Expositions and Missions (CITEM) continues to shine the light on the Philippines through design and branding.

CITEM is in the business of ex-porting design through Philippine export products in home, fashion and food. Through the branding initiatives of CITEM: Design Philippines, Food Philippines, and Fashion Philippines, the organization has created a distinct “Phil-ippines” brand that has become a widely recognized brand in the global market.

From 2010 to 2016, a total of 7,774 MSMEs were provided op-portunities to grow their businesses in the international arena. CITEM organized 144 events - held locally and abroad - which gen-erated export sales worth PhP 1.06 billion and over 21,336 jobs.

Moreover, CITEM is the proponent of breakthrough programs such as the Design for Exports and the Red Box for Young Design-ers. Its Merchandise Specialist Program supports hundreds of SMEs that benefit from new designs and market responsive products.

The Philippine International Trading Corporation (PITC) is a state trading enterprise that sup-ports the development of domestic industries by providing procure-ment, counter trade, customs bond-ed warehouse, exports and special trading/imports services.

In 2015, PITC’s trade trans-actions reached PhP 3.4 bil-lion, amounting to gross services revenue of PhP 60 million and a net income of PhP 22 million from operations and other sources. Its client base and suppliers are largely government institutions.

PITC facilitated the importation requirements of export produc-ers valued at PhP 1.126 billion from its bonded warehouse opera-tions.

It is the local representative of five (5) foreign suppliers allow-ing PITC to offer new technologies and innovative products to cli-ents that cater to disaster management, agriculture, power/energy and medical sectors.

PITC promoted products worth PhP 20 million from 68 export-ers by representing them in several outbound business missions in ASEAN countries and the Middle East. PITC assisted in the conduct of Gmart at IFEX Philippines which supported 25 top food proces-sors/exporters.

Way Forward

The Philippines continues its upward growth trajectory drawing from a rich talent pool, competitive investment incentives, continu-ing infrastructure development, and growing market access.

The Industry Promotion Group anticipates more robust growth

in the areas of investments and exports and will sustain its focus on efforts to generate leads and harvest opportunities in trade, invest-ments and MSME development.

The IPG’s activities will continue to highlight the country’s as-

sets and achievements and the growing importance of the Philip-pines in the world economy.

The IPG is primed to implement more aggressive and innovative promotions programs and initiatives to bring to bear a strong Phil-ippine brand anchored on compelling value propositions. To date, the IPG is on target in delivering quick wins and remains deter-mined to achieve breakthrough goals by the end of the year.

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C O N S U M E R P R O T E C T I O N G R O U P

The Consumer Protection Group (CPG) is in-charge of the enforcement of laws to protect consumers, consumer educa-tion, and formation of consumer groups.

Under CPG are the following offices:

• Bureau of Philippine Standards (BPS)

• Consumer Protection and Advocacy Bureau (CPAB)

• Fair Trade Enforcement Bureau (FTEB)

• Philippine Accreditation Bureau (PAB)

• Construction Industry Authority of the Philippines (CIAP)


Ramdam is the Filipino word for feeling one’s presence and impact in words, deeds, and actions. For the Department of Trade and Industry’s (DTI) Consumer Protection Group (CPG), ramdam is a gauge that the agency has fulfilled its mandate to empower consumers.

More than six (6) years ago, the agency’s consumer programs suffered from, the long processing time for the PS license and ICC certificate, the absence of a consumer redress mechanism, low consumer awareness level, setting-up of the country’s accreditation scheme, and, low compliance of retailers with the Suggested Retail Prices (SRPs) of basic necessities and prime commodities.

This was largely due to weak relationships with industries. A strong public-private partnership was vital in creating and implementing programs for businesses to thrive and for consumer programs to be effectively implemented.

At the time, DTI’s Information, Education and Communication (IEC) materials were limited to traditional printed materials such as booklets, posters and flyers.

With the emergence of internet and transition of television and radio to digitalization, the DTI ventured into quad-media to widen consumer and business reach.

Expanding Business and Consumer Reach

The strategic use of quad media became a powerful tool to pursue the CPG advocacy. True to the essence of “ramdam”, CPG’s share in DTI’s media exposure reached 70% in 2015 generating a total return of investments of P249 Million (Annex A).

Correspondingly, the DTI achieved an all-time high consumer awareness rating of 77% in 2015, noting a 27% leap from 2010.

Major credit for this is mostly due to the agency’s weekly Teleradyo (television and radio) program, “Konsyumer At Iba Pa” (KATBP), aired on Saturdays over DZMM

Gaining Ground on Consumerand Business Confidence

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Radyo Patrol 630 Khz and DZMM Teleradyo Skycable channel 26 from 10:30 in the morning to 12:00 noon.

KATBP is the country’s leading program for consumer educa-tion, recognized in various award-giving bodies. DTI and ABS-CBN’s four (4) sets of anchors and co-anchors or tandems created a dynamic combination to further increase the public’s ease of access to government services.

The original anchor tandem of Undersecretary Adrian “Che” Cristobal - Winnie Cordero (year) was followed by Undersecretary Zenaida “Zeny” Maglaya – Kuya Angelo Palmones and Usec Zeny Maglaya – Mr. Alvin Elchico (year),and currently, Undersecretary Victorio “Vic” Dimagiba - Alvin Elchico. Since 2005, 561 KATBP ep-isodes has aired in 43 seasons.

In 2012, Mr. Alvin Elchico was awarded as the COMGUILD Center of Journalism Best Male Field Reporter and the UPLB Gandingan Isko’t Iska’s Broadcast Choice Awards Best Public Service Program Host.

For 2011, Usec Zeny Maglaya was conferred with the Kapisan-an ng Brodkasters ng Pilipinas (KBP) Golden Dove Awards – Best Public Service Program Host for Radio. The KATBP has been recog-nized by the Kapisanan ng Brodkasters ng Pilipinas (KBP) in 2010 and 2009 as the KBP Golden Dove Awardee for Best Public Service Program for Radio. In 2008, the KATBP garnered the Catholic Mass Media Awards’ (CMMA) Best Educational Program for Radio.

On 27 October 2014, the Civil Service Commission (CSC) award-ed the KATBP for its “unwavering support to reduce bureaucratic red tape and to create an honest, responsible, transparent and ef-ficient civil service which responds to the Commission’s purpose, “Gawing Lingkod Bayani ang Bawat Kawani”.

The CPG also embarked on a partnership with some of the lead-ing TV networks in the country including ABSCBN Channel 2, GMA 7, CNN Philippines (formerly 9TV), TV5, and PTV4, in airing its in-fomercials on Q&A on Consumer Rights, Sending Balikbayan Box,

PS & ICC Marks, Online Shopping Security Tips, and DTI Bagwis Pro-gram. These infomercials were also shown in various movie theat-ers in key cities nationwide.

The DTI Bagwis Award, a recognition program for certified busi-ness establishments that practice fair business ethics and uphold the rights and welfare of the consumers as a core practice of busi-ness operations, is gaining ground. In this way, consumers’ inter-ests are safeguarded at all levels of business engagement. Since its launching in 2006, the DTI has awarded a total of 3,869 business establishments nationwide and was recognized by ASEAN as one of the best practices of the Philippines on consumer protection in the region.

Modernizing Policies and Guidelines

To effectively address emerging business and consumer issues and challenges, policies need to be abreast with regional and global trade developments.

For consumers, Department Administrative Order (DAO) No. 10-04, Series of 2010 prohibited the imposition of an expiry date on gift checks/cards/certificates for these to function similarly as real currency in purchasing products and services.

For the protection of the rights and welfare of the elderly, the Joint DTI-Department of Agriculture (DA) Administrative Order (JAO) No. 10-02, Series of 2010 or the Implementing Rules and Reg-ulations (IRR) on the grant of 5% special discount to Senior Citizens on the purchase of basic necessities and prime commodities was later amended in 2012 with the issuance of JAO No. 12-02 to pre-scribe the minimum number of items to be purchased to avail of the discount.

The boom in the travel sector due to promo fare offerings from various low-cost airline carriers raised new consumer issues. With this, the DTI and DOTC issued JAO No, 01, Series of 2012 providing for the Bill of Rights for air passengers in cases when flights are cancelled, delayed and overbooked.

The DTI amended the IRR of the Republic Act 7581 or the Price Act to include potable water in bottles and containers, household LPG and kerosene in the list of basic necessities; to classify local-ly-manufactured instant noodles and fresh fruits as basic necessi-ties; to include livestock and fishery feeds as prime commodities, but excluded fresh fruits, noodles, and swine and cattle feeds; and, to include the Department of Energy (DOE) as the newest member of the National Price Coordinating Council (NPCC).

The DTI-CPG harmonized its mediation and arbitration proce-dures for its consumer redress program in 2013. Consumer com-plaints were resolved within 10 working days upon filing before the DTI.

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The program showed increasing resolution rate for complaints received: 2013 – 78.42%, 2014 – 85.26%, and 2015 – 94%.

Added protection for consumers purchasing motor vehicles with factory defects came from DAO No. 14-3, Series of 2014 or the IRR on Philippine Lemon Law. This sets the guidelines for availing of Lemon Law rights. DAO No. 14-4 which was issued immediately after to clarify provisions in the IRR.

Protecting consumers’ access to reasonably-priced basic neces-sities and prime commodities is a priority anchored on three (3) elements: Suggested Retail Prices (SRPs), monitoring, and coordi-nation with the industry.

SRPs of basic and prime goods are set by the manufacturers to ensure that prices are kept at levels that are affordable for the con-sumers. The CPG’s role is to coordinate with retailers, distributors, manufacturers and industry groups for any changes and develop-ments in the supply chain that may affect the prices and supply sit-uation in the marketplace.

To ensure retailers’ adherence to the SRPs, the CPG conducts price monitoring activities. In NCR, the Fair Trade Enforcement Bu-reau (FTEB) daily monitoring covers all 419 supermarkets and gro-ceries in Metro Manila. Meanwhile, the DTI Regional and Provincial Offices conduct price monitoring activities in their respective areas.

Because of increased CPG’s presence in the marketplace, more retailers have been complying with the SRPs. Likewise, consumers have learned to use the SRP as a guide to ensure value for money for their purchases.

As a support program on price reasonableness, the DTI part-nered with the Philippine Baking Association (PhilBaking) in de-veloping affordable bread products for the consumers known as, Pinoy Tasty and Pinoy Pandesal. From its inception in 2010, Pinoy Tasty now has a market share of 11% which translates to 1.86M kilograms of bread while Pinoy Pandesal has become a staple breakfast offering in most Filipino households.

The DTI-CPG reviewed policies to better serve the industries and businesses. These include the IRR of Republic Act 3883 or the Business Name Law introducing the territorial scheme of business name registration.

To immediately respond to the needs of Filipino homes in towns and provinces hard hit by Typhoon Yolanda, the CPG revised the Philippine National Standard (PNS) on steel sheets for roofing for the required coating thickness and label.

The CPG streamlined its Product Certification Scheme proce-dures to assist manufacturers and importers whose products are under mandatory certification. The previous five-day process for issuance of the Import Commodity Clearance (ICC) certificate was trimmed down to three (3) days.

Accessing Global and Regional Markets

The CPG maintains its relations to international bodies on stand-ardization, accreditation and consumer protection for business competitiveness and consumer welfare.

As a member of the ASEAN on Consumer Protection (ACCP) (logo), the CPG participated in the cross-border recall system web-site. It also participated in the cross-border redress and Internet Sweep as a recognized member of the International Consumer Pro-tection and Enforcement Network (ICPEN).

The CPG maintains its full membership with the ISO and IEC bodies to actively participate in the international standardization activities. This year, the CPG welcomed ISO Secretary General Kevin McKinley for a discussion on its members’ active participation. The CPG also welcomed the IEC President Dr. Junji Namura and IEC Asia-Pacific Regional Center Director Dennis Chew for discussions on the IEC programs and the Philippines’ membership roles. The CPG conferred with the IEC officials the Philippines’ creation of the IEC National Committee through a draft department order.

The CPG continues its active participation to the ASEAN Con-sultative Committee on Standards and Quality (ACCSQ). The CPG, in close coordination with the Department of Transportation and Communication (DOTC), participated in the completion of the ACCSQ Automotive Product Working Group’s (APWG) draft Mutual


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Recognition Arrangement (MRA) that will be endorsed to the Sen-ior Economic Ministers of each of the 10 ASEAN member states.

In the Philippines’ hosting of the Asia-Pacific Economic Coopera-tion (APEC), the CPG led the Sub-Committee on Standards and Con-formance (SCSC) meeting to advocate the Philippines’ agenda for MSMEs. The CPG accomplished the Philippine survey on pre-pack-aged food among 19 APEC member-economies. The survey, pub-lished in the APEC website, was able to leverage on the country’s participation in APEC to assist MSMEs.

The CPG has sustained its signatory memberships to the Asia-Pacific Laboratory Accreditation Cooperation – International Laboratory Accreditation Cooperation (APLAC-ILAC) MRA and the Pacific Accreditation Cooperation – International Accreditation Fo-rum (PAC-IAF) Multi-Lateral Agreement (MLA).

Way Forward

To provide only quality services to its clients, the CPG – Bureau of Philippine Standards (BPS), Consumer Protection and Advocacy Bureau (CPAB), Fair Trade Enforcement Bureau (FTEB), and, Phil-ippine Accreditation Bureau (PAB) –proposed amendments to sev-eral of the laws mandating their functions.

• The CPG reviewed the Republic Act 7394 or the Con-sumer Act of the Philippines and has prepared an amendment to broaden protection for consumers.

• A review of the outdated laws of Republic Act 4901 or the Standards Law of 1964 is immediately required.

• The CPG prepared the draft DAO on the amendment to the BPS Product Certification Scheme streamlining the PS and ICC Certification Schemes. It has also prepared the draft order on the mandatory marking and label-ling for specific critical products.

• Drafts on the IRRs of RA 10620 or the Toys and Games Safety Labeling Act and the Online Sales Promotion Processing Permit are ready for approval.

• Draft law on the National Quality Infrastructure (NQI) to integrate the (3) three main pillars of NQI – standardiza-tion, accreditation, and metrology to widen market access for Philippine industries. The draft law is a legal frame-work creating an NQI that houses transparent, independ-ent institutions within a national structure that closely works with international organizations such as the World Trade Organization (WTO). The CPG would like to formalize the country’s National Standards Body, National Accreditation Body, and Nation-al Metrology Body, as offices.

The CPG institutionalizes good governance and improves ser-vice delivery by obtaining recognition based on international standards.

The PAB reconfirms its signatory to the APLAC-ILAC MRA for another four (4) years with a certificate to ISO/ IEC 17011. The

KONSYUMERSPEAKS

“Thank you very much for such an initiative in behalf of many others.”

- Cardinal Luis Antonio G. Tagle on his complaint againstindividuals using his name to solicit money for a cause

“I never even knew that we had a government agency that is very efficient and helpful. Dealing with our different government agencies has always been very traumatic for me. Because of my recent experience with the DTI, my trust in the system has been somewhat restored. I am happy that the people at DTI were very helpful in addressing my concern”

- Donna Lee on a complaint about a camera she bought

“Sa pakikinig ko ng [Konsyumer ATBP], nagiging maingat ako sa pagbili ng mga produktong kelangan namin araw-araw. At naibabahagi ko ito sa mga tao sa paligid ko. Iba kasi kung alam mo ang ginagawa mo bilang isang responsa-bleng konsyumer.”

- Ardy Agacite, 251 Calderon St., Old Balara, Quezon City

“Dapat ang mga consumer ay bibili lang ng produktong may PS mark at ICC mark para makasiguro sa quality ng product.”

- Jose Lastrella, San Mateo Rizal

BPS and CPAB re-established its continued compliance with the el-ements of a Quality Management System (QMS) or ISO 9001.

On prices, the DTI is aiming to automate and streamline its price monitoring process through the development of “e-Presyo”, an Online Price Monitoring System where consumers can check for the prevailing prices of basic necessities and prime commodities monitored by the DTI.

The System contains the Suggested Retail Prices (SRPs) and prevailing prices of basic and prime goods, and stores with the lowest prices. Now in its trial phase, the DTI targets a nationwide system rollout by the end of the first semester.

From 2010 to present, the CPG efforts to expand business and consumer reach, modernize policies and guidelines, and access global and regional markets has ensured that consumers are em-powered to assert their rights and demand for safety in goods and services; and that businesses are enabled to achieve these quality requirements to support the local and increase Philippine product presence in global markets.


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S P E C I A L R E P O R T

As the Aquino government took office in June 2010, the land-scape of business registration in the Philippines started to trans-form from what used to be a maze of bureaucratic processes into an environment more conducive for doing business.

Under the strong leadership of DTI Secretary Gregory L. Domingo, several reforms that would streamline registration procedures through automation of manual steps were set up. These specifically aimed to reduce the cost of doing business, cut-down red-tape and promote a paperless environment in the government.

Enabling Paperless and SeamlessBusiness Registration


The Enhanced Business Name Registration System (eBNRS) was launched on 12 October 2010 at the DTI-NCR Area 2 Office. The said system was then rolled out across DTI regional/ field offices.

This project reduced information fields of Business Name ap-plication forms from 36 to 18, the electronic application form from 9 to 1, and approval of application from what used to take 4 to 8 hours to less than 15 minutes. From 2011 to April 2016, a total of 1,937,213 BNs were registered. Of this figure, 179,641 or 9% were registered online.

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Determined to further facilitate the ease in doing business, the teller-based Philippine Business Registry (PBR) was developed and launched on 27 January 2012.

With this initiative, sole proprietors need only to go to the DTI office to register their DTI business name, create/validate their BIR Taxpayer’s Identification Number (TIN), secure Employer’s Registration Numbers from social agencies such as the Social Se-curity System (SSS), Philippine Health Insurance Corporation, and Home Development Mutual Fund or Pag-IBIG.

Thereafter, the PBR kiosk was launched in the Securities and Ex-change Commission (SEC) on March 12 2012. The PBR also seam-lessly hooks up with the SEC’s registration process to benefit those registering as a partnership or corporation.

The efficiency of the business registration for sole proprietor-ships through the PBR system was clearly demonstrated when this was linked to the business permit licensing system of the Quezon City. Launched in March 2012, this convergence allowed a business owner to register the business name and obtain a local business permit at the same time, reducing the process from what used to take 4 to 5 days to just 30 minutes.

Working towards increasing system efficiency in 2013, through the collaborative effort of the PBR Team and what is now the Information System Management Service (ISMS), the eBNRS and PBR systems were moved to the cloud environment to address problems arising from hardware issues, enable a more secure en-vironment, and improve system performance in terms of speed in processing and connectivity.

In 2014, various electronic enhancements in the system were implemented. These include the following:

• Utilizing electronic payment facilities through the use of GCash and BanCNet debit card, obtaining a certificate of Business Name can now be completed with the use of ei-ther mechanism.

From its rollout in January 20, 2014 until April 30, 2016, a total of PHP 36,629,345.00 in GCash and PHP 5,757,970.00 in BancNet transactions were recorded.

• Nine months later, the Online Early Renewal of BN Reg-istration through the www.bnrs.dti.gov.ph website was launched. This allows processing of renewal application three months before the expiration of the BN.

During this period, online updating of business profile is also allowed, free of charge. In the old manual system, change of BN information could only be done through the DTI tellers for a fee of P65.00 (P50.00 renewal fee plus P15.00 documentary stamp tax) per transaction.


Since its takeoff in November 2014 to April 2016, a total of 26,091 online early renewal transactions have been pro-cessed.

• Committed to promote ease of doing business to the next level and further reduce cycle time in business registration, the teller-assisted PBR facility was made available online on December 22, 2014.

• Sole proprietors may now register online through www.business.gov.ph, in the comfort of their homes or offices. From December 22, 2014 to April 30, 2016, a total of 6,115 online PBR transactions were processed.

To further support the use of the online PBRS, 10 touchscreen kiosks were deployed in strategic locations in Luzon, Visayas, and Mindanao. Likewise, the connectivity of various LGUs to the PBRS was extended outside of Quezon City to LGUs such as:

• Muntinlupa• Cagayan De Oro• Batangas City• Iloilo City• Sta. Maria• Province of Nueva Ecija (In the cities of San Jose, Talavera,

Guimba, and the Science City of Muñoz).

As we continue our journey to make the Philippines a more fa-vorable environment where both local and foreign businesses can flourish, the DTI started working towards further enhancing its sys-tems by fully integrating the eBNRS and PBRS into one portal.

There are more opportunities to innovate and enrich the sys-tems with the passage of the Go Negosyo Act, which was enacted into law in 2014. This law provides a more deliberate approach to developing more micro, small, and medium enterprises (MSMEs) and enables the DTI to further enhance its ease of doing business program.

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AW A R D S A N D AC H I E V E M E N T S

Gold Governance Trailblazer Award

Islands of GoodGovernance

Award of Merit in theGovernment Communication

Programs categoryfor its Prosperity Plan 2016

Award of Meritin the Special Events category of the Communication Skills division for its

System on PerformanceRewards and Incentives

(SPRInts) program

Award of Excellence in theCommunication Management

division for the StrategicPerformance Management

System (SPMS)

2014 Department of Environmentand Natural Resources Awardee

2014 CareerExecutive Service

Board TopPlacement Award

2013 Career Executive Service Board Plaque of Distinguished Service

2014 ARTABreakthroughAgency Award

and the Citizen’sSatisfaction CenterSeal of Excellence

Public perception towards theDepartment has outstandingly

improved, with the Social Weather Stations (SWS) giving DTI a “very good” rating for its

anti-corruption efforts(November 2014 toMay 2015 survey)

DTI ranked as the 7th best-performing government agency (second semester 2015) by the

Makati Business Club (MBC), with its two attached agencies–the

Philippine Economic Zone Authority (PEZA) and Board of Investments

(BOI), placing 2nd & 9th, respectively.

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O R G A N I Z AT I O N A L C H A R T

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MANDATE

The Department of Trade and Industry (DTI) serves as the primary coordinative, promotive, facilitative, and regulatory arm of the government for the country’s trade, industry, and investment activities. It acts as catalyst for intensified private sector activity to accelerate and sustain economic growth through a comprehensive industrial growth strategy, a progressive and socially responsible liberatization and deregulation program, and policies de-signed for the expansion and diversification of both domestic and foreign trade.

MAJOR FINAL OUTPUTS

The Major Final Outputs (MFOs) of the DTI highlight the Department’s contributions to the achievement of the country’s key societal goals of the national economic growth and poverty reduction; and to the twin sectoral (industry and services) goals, which are job generation and global competitiveness.

The functions of the DTI are performed with improved delivery of services by transparency and accountability consistent with the Department’s mantra: Enabling Business, Empowering Consumers. It has adopted four (4) MFOs:

• International trade policy negotiation, facilitation, and promotion services;• Industry development and investment promotion, generation and facilitation services;• Development and promotion services for micro, small, and medium enterprises (MSMEs); and• Consumer welfare and protection services

VISION

More Prosperous Philippines by 2016 We see the Philippines occupying its rightful place in a community of nations, prosperous and free. Together with business, we are an active and leading partner in propelling the Philippines toward an inclusive,

dynamic and thriving economy. Our success is anchored on global competitiveness, with social responsibility and consumer welfare as our platform. In all these, we adhere strictly to the tenets of professionalism, integrity, and transparency.

We continue to be the public’s Agency of Choice, an organization where creativity, innovation, professional and personal growth find full expression.

We are One DTI.

MISSION

Enabling Business

• Enabling business environment reducing cost of doing business to facilitate trade and investments• Global Competitiveness• Value chain and industry cluster management

Empowering Consumers

• Safe and reasonably-priced products and services• Supply chain management

A B O U T D T I

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E X E C U T I V E C O M M I T T E E

Adrian S. Cristobal Jr.Secretary

Nora K. TerradoUndersecretary, Industry Promotion Group

Chief of Staff

Victorio Mario A. DimagibaUndersecretary, Consumer Protection Group

Ceferino S. RodolfoUndersecretary, Industry Development Group

Zenaida Cuison-MaglayaUndersecretary, Regional Operations Group

Prudencio M. Reyes, Jr.Undersecretary, Special Concerns Group

Ireneo V. VizmonteAssistant Secretary / Officer-in-Charge

Management Services Group

As of June 01, 2016

E D I T O R I A L B O A R D

Precious LeañoProject Leader

T R A N S I T I O N R E P O R T T E A M

Consumer Protection Group Marie Camille Castillo Joyce Ria Estares

Industry Development Group Aubrey Arboleda Jennifer Montes

Industry Promotion Group Eduardo Ramirez Kathleen Bondoc Michelle Valero

Management Services Group Patricia May M. Abejo Cherryl Carbonell

Regional Operations Group Mary Maylene Aquino Jonno Bales Edgardo Ferino Jojisilia Villamor Roderick Rea

Special Concerns Group Janel Mamorno Suzeth Regalado

Public Relations Unit Crissel Macato Reden Miranda Noli Gavin Jr.

A R T & D E S I G N T E A M

Lead Graphic and Layout Artist Amalia Airiz Casta Art Support Renaldo Neñeria Maria Lourdes Aquirre

Anthony PaviaEditor-in-Chief

Edmund Dennis LadawAssistant Editor

Patricia May M. AbejoKMIS Director

Production Editor

www.dti.gov.ph

Documents

Enabling Business, Empowering Consumers TRANSITION REPORTpcabeta.000webhostapp.com/reports/Government Reports/DTI Trans… · NPCC National Price Coordinating Council NQI National