Tool and die mold scholars start training

The DTI-BOI together with the Department of Science and Technology (DOST) – Metal Industry Research and Development Center (MIRDC) and the Philippine Die and Mold Association, Inc. (PDMA) welcomed its third batch of trained tool die and mold scholars during a ceremony held earlier this month in Taguig City.

According to DTI-BOI, the tool and die industries is a skill-intensive and technology-dependent sector, and to remain competitive, die and mould makers have to learn the ever-changing technologies in design and manufacturing. Its products include dies (simple, compound and progressive), molds (for forging, plastics injection or blow molding, die casting, glass blow molding) and tools (e.g. jigs and fixtures) used for cutting and shaping different materials.

This capacity-building initiative is under the “Enhancing Tool and Die Industry Competitiveness by Expanding the Pool of Trained and Highly Skilled Die and Mold Designer and Makers” or the D2M2 Project is identified in the Tool and Die Industry Roadmap. The roadmap outlines strategies in the short-run (2015-2016), such as Manpower Improvement, Technology Upgrade and Modernization, and Indigenous Sourcing of Critical Materials.

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BOI spearheaded roadmap localization workshop in Region 8

BOI together with the DTI Regional Office in Eastern Visayas, is capacitating the region’s various industry players, businesses, local government units and agencies, and concerned stakeholders in a regional conference today (June 22, 2016) in crafting their localized version of national industry roadmaps and achieve further growth and competitiveness.

Dubbed as “Industry Roadmaps and the AEC Gameplan: Roadmaps Localization for Competitiveness”, the regional conference aims to build the capacities of local industries and stakeholders including micro, small and medium enterprises (MSMEs) in crafting their localized industry roadmaps aligned with the national industry roadmaps.  The conference also aims to discuss the economic opportunities and potentials for local industries and sectors in the Eastern Visayas region and how they can take advantage of the many opportunities with the ASEAN Economic Community (AEC) already in place.

At the regional conference, BOI Resource-based Industries Service Division Chief Sandra Marie Recolizado discussed the proposed Ecological Industrial Zone in Leyte, a project under the Copper Industry Roadmap which aims to promote the integrated development and competitiveness of copper and other industries in the context of the ongoing rehabilitation efforts in the region and thus promote sustainable local employment.  The proposed industrial zone also aims to promote industry clustering to reduce businesses’ logistics costs and ensure reliable supply of power.  Leyte has one of the biggest geothermal power plants in the Visayas region.

Conservation and protection of the environment is a major focus of the project, hence the concept of an ecological industrial zone instead of a regular industrial zone.  The proposed ecological industrial zone itself provides services for waste management and recycling. It also takes into consideration climate change risks, thus the zone’s buildings and roads will be designed to be much resilient against disasters and calamities. A plan to have an underground electrication for the zone is also being considered.

It is expected to house potential locators in the field of copper wire rod casting facility, downstream copper industry such as but not limited to copper wire producers, major industrial concerns that need power and port facilities such as steel, copper-using industries, and other business activities identified by industry that may support the economic rehabilitation of typhoon-affected areas such as garments.

Leyte is home to the copper smelting and refining operations of the Philippine Associated Smelting and Refining Corporation (PASAR). The company is currently operating within the 425-hectare Leyte Industrial Development Estate in Isabel, Leyte.  PASAR is the country’s only copper smelting and refining firm and is one of the biggest in Asia. The copper cathodes used in the manufacture of electronics that are produced by PASAR are among the top 10 export products of the country.

The localization of roadmaps in the Eastern Visayas Region also focused on processed marine, and meat products, and natural health products—the dominantly thriving and potential industries in the region which can be aligned and linked with the national industry roadmaps.  Presenting the industry situations on these sectors are resource persons from the private and government namely: Clarita Lapus, President of Mama Sita Foundation Inc. on processed marine products; Francis Penaflor, BOI Sectoral Champion for Processed Meat on processed meat; and Joracio Abelarde, Chairman Emeritus of the Chamber of Herbal Industries of the Philippines, Inc.

“Now that we have the Industry Roadmapping Program in place, we must seize opportunities with government acting as facilitator and coordinating with industry stakeholders in crafting the regional industry cluster roadmaps. These industry roadmaps will allow MSMEs to move up the value chain and actively participate in the vast AEC market,” said DTI Assistant Secretary Rafaelita Aldaba who also discussed the Philippine’s New Industrial Policy for More Competitive Regional Economies during the multi-sector regional conference.

Assistant Secretary Aldaba also challenged the region’s stakeholders to formulate industry roadmaps to create more high productivity jobs which are vital to reduce poverty, speed up rehabilitation efforts, and transform the regional economy.

Aside from Assistant Secretary Aldaba and the resource persons for the sectors identified, the other presenters and their topics in the conference include Dr. Cielito Habito, Chief of Party of the USAID TRADE Project on Regional Integration and the National Development Agenda on regional integration and the national development agenda; Victoria Antonio, Senior Advisor of GTZ-Promotion of Green Economic Development on Greening the Industry Roadmaps; and Meylene Rosales, National Economic and Development Authority (NEDA) Region 8 Division Chief for Policy Planning and Formulation on behalf of Atty. Bonifacio Uy, Regional Director of NEDA Region 8 on the potentials and challenges in the region.

The Industry Roadmapping Program is the BOI’s program in partnership with various industries and sectors in the development and implementation of industry roadmaps.   An Industry Roadmap assesses an industry’s performance, opportunities, and challenges, outlines the vision, goals and objectives, strategies, timelines, and various interventions it needs to be globally-competitive. The roadmaps are crafted and implemented by the industry players themselves with the guidance of the BOI as well as other government agencies.  To date, there are already 40 sectoral roadmaps submitted to the BOI. Of the 40, 32 roadmaps have been completed and are currently being implemented or for implementation, while the rest are still subject to enhancement/finalization.

 Through regional conferences, the BOI is going around the country since last year to encourage localization of roadmaps in the regions especially those industries that are dominant or thriving in the area and its alignment and linkage with the national industry roadmaps.   BOI, in coordination with the DTI regional offices, conducted nine regional conferences in Iloilo, Cebu, Davao, Baguio, Tagaytay, Pampanga, Zamboanga, Palawan and Naga last year.  Early this year, regional conferences for the Ilocos Region were held in La Union and in Tugegarao for the Cagayan Valley Region.  The last leg will be held next month in Butuan for the Caraga region.

Toyota and Mitsubishi accepted to the CARS Program

The Philippine Board of Investments (BOI) announced the approval of Mitsubishi Motors Philippines Corporation and Toyota Motors Philippines Corporation as participating car makers of the country’s Comprehensive Automotive Resurgence Strategy (CARS) Program.

Trade Assistant Secretary Rafaelita Aldaba said that the CARS Program aims to raise local vehicle manufacturing to expand the country’s auto parts making capabilities.  CARS is expected to attract PHP 27 Billion in fresh investments, manufacture 600,000 more vehicles, and add PHP 300 Billion to the domestic economy (equivalent to 1.7 percent of gross domestic product).

Mitsubishi applied to produce 200,000 units of the Mirage/Mirage G4 while Toyota applied for the production of 230,000 units of an all new (full model change) Vios. As participating carmakers, they are required to localize the production of body shell and large plastic parts and components.

Toyota and Mitsubishi’s initial investments totaling P8 billion will create some 14,000 new jobs, salaries and wages of which will also amount to Php8 billion over a six year period.  Parts makers who will be working with Toyota and Mitsubishi are expected to  generate over Php18 billion fresh investments for the country.

The CARS Program also expects total government revenues to amount  PHP408 billion in import duties, VAT, excise tax, income tax, withholding taxes. Direct purchases of raw materials for parts making will amount to Php63 billion.

BOI ASSIST

BOI is continuing its efforts to further strengthen the awareness level of its stakeholders on the latest government investment policies, regulations, and procedures. This year, it plans to conduct about 5 investor awareness seminars throughout the country.

The BOI Investment Awareness Seminar to Strengthen the Investors and STakeholders (BOI ASSIST) BOI-registered and prospective investors are briefed on the latest investment policies and business registration procedures of various government agencies.

Two seminars were already conducted in the first half of the year at the Best Western Plus Antel Hotel in Makati City and at the Development Academy of the Philippines. Three more seminars will be conducted at the second half of the year.

Attended by around 60 participants, the first seminar was specifically geared for companies in the renewable energy sector and in the healthcare facilities and services sector planning to register, expand and/or diversify their business projects with the BOI.  Partner government agencies such as the Department Energy, the Department of Health, and the Department of Agrarian Reform, sent resource persons to address the concerns of participants.
The second seminar was attended by around 70 participants. Topics include the agencies’ policies and procedure on availment of incentives.  Atty. Euvimil Nina R. Asunsion of the Bureau of Internal Revenue who discussed the Bureau’s policies and procedure on availment of Incentives, Atty. Maria Corazon A. Arancon of the Investment Ombudsman, and Mr. Jose Antonio S. Vilar of the Philippine Stock Exchange who highlighted the benefits of publicly listing a company, which is a requirement for a BOI-registered company.

GVC analysis on 5 key sectors conducted

Global value chain (GVC) studies on the aerospace, automotive and auto parts, chemicals, electronics and electrical machinery, and paper industries will be presented to various stakeholders through a public forum on  June 2, 2016 at the Makati Diamond Residences.

Conducted by the Duke University Center on Globalization, Governance, & Competitiveness (Duke CGGC), the five studies were commissioned under the Science, Technology, Research, and Innovation for Development (STRIDE) Program and the Advancing Philippine Competitiveness (COMPETE) Project of the United States Agency for International Development (USAID) for the Philippine Board of Invetments (BOI), the industry development and investments promotion arm of the Department of Trade & Industry (DTI). The GVC studies are intended to assist the BOI in its efforts to further develop its framework and strategies in promoting industries built on best practices.

“The findings of the studies carried out by the Duke CGGC are important in formulating policies and programs on how firms, SMEs in particular, can participate in GVCs and, for those that are already participating, how to upgrade and move up the value chain. The research studies provide evidence  which serve as basis to improve our industry development strategies towards a more globally competitive Philippine manufacturing industry,” said DTI Assistant Secretary for Industry Development Rafaelita Aldaba.

The Philippine new industrial policy as contained in the Comprehensive National Industrial Strategy (CNIS), the country’s blueprint for linking the manufacturing, agriculture, and services sectors, aims to improve the country’s competitiveness by upgrading the productivity of its industries and removing the binding constraints to their development.

Under this policy, the government acts as enabler of the private sector, which is the proximate engine of growth, and serves as facilitator of initiatives that will create the proper environment for private sector development. The new industrial policy is cluster-based and GVC-focused and intends to build strong regional economies in the country and focus government efforts in integrating local industries into regional production networks and enabling SMEs to move up their GVCs.

The GVC studies particularly focus on how the mentioned industries can reinforce forward and backward linkages. The analyses cover the structure of each industry’s value chain—from inputs, technologies, processes through distribution and marketing—at the global level, and indicates where the Philippines currently fits within these GVCs. It explores the global competitive environment for these value chains, and how the Philippines compares relative to its competitors.

The GVC studies also analyze the most binding contraints preventing Philippine firms from moving up the industry GVCs, and recommend strategies for value chain upgrading and improving competitiveness, as well as the needed investments, human resource requirements, and the roles of government and industry stakeholders in implementing these.

Investments up by 64% in 1st 4 months

Investments approved by the Philippine Board of Investments (BOI) in the first four months of the year reached P117.26 billion, up by 64 percent compared to the P71.62 billion posted in the same period last year.  These were generated from 101 projects and are expected to create 16,366 additional jobs, once fully operational.

For the month of April alone, a total of P55.33 billion was generated, which recorded a remarkable 225 percent increase compared to the P17 billion generated for the same month in 2015.

Among the big ticket projects approved in April include GMR Megawide Cebu Airport Corporation (with Php16.75 Billion), a PPP project for the Cebu International Airport Project (Phase 2 – operation and maintenance of Terminal 2); Light Rail Manila Corporation (LRMC) (Php15.15 Billion), modernization of the existing system – operations and maintenance of Manila LRT 1 Integrated Railway System Project; and Cordillera Hydro Electric Power Corporation (Php12.18 Billion), renewable energy developer of 60MW Kapangan Hydroelectric Project in Benguet.

On a sector level, electricity, gas, steam and air conditioning supply recorded the largest share of investment commitments at P48.97 billion (42 percent), followed by the construction sector with P31.90 billion (27 percent), real estate activities, specifically, the economic and low-cost housing sub-sector with P19.61 billion (17 percent), transportation and storage with P10.06 billion (nine percent); and manufacturing with P5.97 Billion (five percent).

Major manufacturing sub-sectors, based on their respective shares to total investment approvals in the first four months include food products (P5.16 billion or 86.5 percent share); motor vehicles, trailers and semi-trailers (P122.59 million or 2.1 percent share); leather and other related products (P62.01 million or 1 percent share); wearables and apparel (P24.66 million or 0.4 percent); and other manufacturing products (P593.77 million or 10 percent share).

Of the total investment approvals, 84 percent or P98.54 billion came from local investors and the remaining 16 percent or P18.73 billion from foreign sources.

Singapore was the top foreign investor with P8.22 billion, accounting for 44 percent share of the total investments from foreign nationals, followed by the Netherlands with P5.96 billion (32 percent share); British Virgin Islands with P2.02 million (11 percent share); United States with P604.54 million (3 percent); and United Kingdom with P505.49 million (3 percent share).

PHL hosts 24th APEC AD

The Philippines, through the Board of Investments (BOI), is hosting the 24th Asia-Pacific Economic Cooperation Automotive Dialogue (APEC AD) starting today, May 25 until May 27, 2016 at the Makati Diamond Residences where discussions are expected to center on the current status of the Automotive Industry in the Asia Pacific Region and the ongoing initiatives of the working group.

The APEC AD serves as a forum for APEC member economy officials and senior industry representatives to work together to map-out strategies for increasing the integration and development of the automotive sector within the region. It is one of the Industry Dialogues under the APEC Committee on Trade and Investments along with the Chemicals Dialogue and Life Sciences Innovation Forum.

At the 22nd and 23rd APEC AD also chaired by the Philippines through BOI, the vital role of SMEs in the automotive manufacturing industry and their integration into the regional and global markets where two workshops on the experiences and best practices of some SMEs in their participation in the GVCs were highlighted. The meeting also hosted various initiatives focusing on SMEs and their needs to better participate in GVCs including the study on the GVC-SME Automotive Sector (GSAS) conducted by Malaysia and Philippines with the aim of gathering information on automotive industry SMEs in the Asia-Pacific region, particularly the barriers they encounter in their endeavor to penetrate the international trading system.

“As a follow through, the APEC AD hopes to identify and develop a capacity building action plan for SMEs based on the findings of the study,” said BOI Executive Director for Industry Development Services Ma. Corazon Dichosa, also the APEC AD chair. “A compendia on motor-vehicle related taxes as well as automotive business regimes were also initiated to provide member economies with up-to-date vital information on the automotive sectors in the region. These aims to provide the auto industry, particularly SMEs with information to aid them in penetrating the GVC, e.g. market size of the economies, business regulations,” she said.

At the 24th APEC AD, the working group will discuss updates on APEC Developments, as well as the AD’s workplan until 2017.