Kalampusan 2012 Second Semester

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    Enabling Business, Empowering Consumers 1

    KALAMPUSAN 2nd Semester 2012

    DTICEN

    TRAL

    VISAYAS

    DTICEN

    TRAL

    VISAYAS

    DTICEN

    TRAL

    VISAYAS

    DTICEN

    TRAL

    VISAYAS

    PER

    FORM

    ANCE

    M

    AGAZINE

    2 N D S E M E S T E R 2 0 1 2

    I N S I D E

    S A N D U G O

    T R A D E E X P O

    2 0 1 2

    3

    R E A P I N G T H E

    G A I N S O F

    E C O N O M I C D E -

    V E L O P M E N T :

    M A R I B O J O C S

    L R E D J O U R -

    N E Y

    6

    A C C E S S T O

    F I N A N C E F O R

    M S M E S

    9

    N E W S B I T E S 1 2

    B L E S S I N G S

    F R O M T H E

    R I V E R : A N

    E C O N O M I C

    J O U R N E Y

    1 8

    T O U R I S M

    L I N C S

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    A C A S E S T U D Y

    O N T H E B O H O L

    M S M E D C O U N -

    C I L

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    A MIND FOR ACHIEVEMENT

    PERFORMANCEREVIEW

    True to its dynamic spirit, the Department of Trade andIndustry (DTI) Central Visayas kept busy with several activ-ities.

    Two events highlighted in the second semester were thefirst MSME Development Councils National Conference inthe Philippines and the Private Sector Promotion Program(SMEDSEP) closing activity.

    DTI and the Deutsche Gesellschaft fr InternationalZusammenarbeit (GIZ) partnered for the success of thesemomentous occasions.

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    The MSME conference preceded thePSP SMEDSEP Closing activity which

    gave special recognition to the DTIand GIZ partnership in the implemen-tation of the highly successful MSMEDevelopment Program in the Philip-pines.

    Visayas industry clusters saw an in-teresting second semester with theconduct of a series of strategic plan-ning workshops under the NationalIndustry Cluster Capacity Enhance-ment Project (NICCEP)..

    From the vibrant provinces of the Vi-sayas region, four clusters were ableto thresh out issues and problems andfound workable solutions to the ICT,Tourism, Gifts, Decors, &Housewares, Health & Wellness In-dustries.

    DTI continued to work out projectsalong with the private sector toachieve economic growth and indus-trial development in Central Visayas.

    Other major activities during the se-cond semester of 2012 include Tour-

    ism Value Chain Trainings,LRED Learning Sessions andSpeed Matching.

    As of 1st

    semester 2012, Sub-contracting Partners for Innova-

    tion Program (SPIN) has gener-ated 40,829 jobs in the Philip-pines and provided 1,206MSMEs with orders for wovenproducts amounting to more than352.41 million pesos between2008 to 1

    stsemester 2012.

    In Central Visayas, SPIN hastrained 35,109 world-class weav-ers and generated purchase or-ders amounting to 285.59 MillionPesos in the same period.

    More exporters in Cebu and oth-er regions are now tapping coun-tryside residents from all over thecountry to supply their sub-contracting needs under theSPIN program.

    Success factors in the DTI imple-mentation of its programs areeffective interventions, conver-

    J U L Y T O D E C E M B E R P E R F O R M A N C E R E V I E W

    Sandugo Trade Expo 2012 secretariat with DTI 7 regional director Asteria

    Caberte, Bohol Governor Edgardo Migrio Chatto and his first lady Pureza Veloso-

    Chatto .

    gence approach and the capacityof DTI as the lead agency to syn-ergize the different efforts of vari-ous agencies to assist MSMEs.

    The convergence of government

    agencies and private organiza-tions in providing the servicesrequired by the entrepreneurshas motivated MSME beneficiar-ies and stimulated local econom-ic activities geared towards sus-taining the anti-poverty thrust ofthe government.

    The Department of Trade andIndustry (DTI) 7, through pro-grams such as LRED and OTOPPhilippines, has provided thenecessary support for the LGUsand the private sector. With itsadvocacy of entrepreneurshipand unceasing consultations withLocal Government Units, DTI isfinding workable solutions to as-sure growth and development inthe region.

    Reducing poverty

    in Central Visayas

    is possible and

    doable.

    - DTI 7

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    The Bureau of Micro, Small and Medium Enter-prise Development (BMSMED) of the Depart-ment of Trade and Industry (DTI) and theDeutsche Gesellschaft fr International Zusam-menarbeit Private Sector Promotion Program(GIZ PSP) jointly organized the first MSME De-velopment Councils National Conference.

    The National Conference was held on July 19and 20, 2012 at the Marco Polo Hotel, CebuCity.

    Around 150 representatives of the National andProvincial MSMED Councils participated in theactivity, as well as officials from the DTI HeadOffice and 86 provinces nationwide, SecretariatHeads and the GIZ.

    The MSMEDC National Conference sought tocreate greater awareness, commitment and ac-tion to the administrations Big Push policy forMSME development; present the highlights ofthe DTI and GIZ PSP Program and its contribu-

    tion to MSME development; clarify the functionalmandates of the Provincial MSMED Councils(PSMEDCs); share and learn from good practic-es and exemplar initiatives; create and reinforcenetworks toward mutually beneficial partner-

    ships.

    Activities lined up for the conference includeda presentation of good practices such as theuse of the GIZ Capacity WORKS manage-ment model and those that exemplify the de-livery of the MSMEDC functions, namely: poli-cy formulation, program advocacy, programcoordination and integration.

    There was also a showcase of value chain

    and local regional economic development(LRED) approaches adapted in the imple-mentation of the MSME Development Plan.Exemplary initiatives of MSMEs on develop-ment global themes that include gender, cli-mate change, migration and corporate socialresponsibility were tackled.

    Provincial MSMED Councils policy, program,activity and projects (PPAPs) proposed byProvincial MSMED Councils (PSMEDCs) thatneed to be elevated for approval of national

    government agency were endorsed by theNational MSMEDC to the concerned offices.

    Knowledge products such as collaterals onthe PPAPs that were introduced and imple-mented by the Provincial MSMED Councilswere placed on exhibit as a side event duringthe Conference.

    Members of the MSMED Council are the fol-lowing: Department of Trade and Industry,Department of Agriculture, Department of In-terior and Local Government, Department ofScience and Technology, Department ofTourism, Small Business Corporation, privatesector representatives including MSME sectorin Luzon, Visayas and Mindanao, bankingsector and labor sector.

    D T I & G I Z H O L D N A T I O N A L C O N F E R E N C E F O R M S M E

    C O U N C I L S I N T H E P H I L I P P I N E S

    1st MSME Development Councils National Conference

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    Maribojocs LRED Journey

    A sleepy lile town with

    less than P6.0M local reve-

    nues (2007), Maribojoc

    rises to where it is today- a

    vibrant economy with

    transparent governance,

    well-balanced government-

    private sector partnership,

    and a real business-friendly

    atmosphere.

    This is the observation ofMrs. Julieta Chiu, betterknown to Maribojocanonsas Nang Yolie, a local retailstore owner.

    About 5 years ago in 2007,it was business unusual inMaribojoc. Communities

    and the business sectorhad little to say about thetown's economic gains.There were few business-es, commercial establish-ments were just a handful.Market day was just an or-dinary day- only few ven-dors can be found insidethe town's public market,and even worse, businesslicensing was a very tedi-ous process.

    "Years ago, it was not soeasy to transact businessat the municipal hall. Icould never forget thetimes when I had to wait forone long day to have mybusiness permit issued. Ihad to march from one of-

    ficer to another just tohave their signaturesaffixed on my application.And then I also had towait for a PhilHealth rep-resentative to have his orher signature affixed onmy application before itgets approved, NangYolie remembers.

    Nang Yolie's experiencesaddenedher be-cause pro-cessing ofher busi-ness per-mit took somuch of

    her time. This experiencehas left her looking forsolutions.

    The next thing she knewwas that she participatedin an action planningworkshop conducted byDTI (Department ofTrade and Industry) andGerman Technical Agen-cy GIZ (formerly GTZ,DED and InWent).

    The workshop brought

    together government andprivate sector represent-atives to identify issuesaffecting the economicdevelopment of the mu-nicipality. During the ac-tivity, Nang Yolie wasone of those who pushedfor the simplification ofthe business licensing

    procedures of the LGU,the central issue affect-ing her and other busi-nessmen in her town.

    Through the Local Re-gional Economic Devel-opment (LRED) project,quick wins were identi-fied and pursued- (1)processing of businesslicenses and permits hasbeen simplified, 2) com-munity-based wastemanagement system isalready operational, (3)investment promotionand tourism marketingprogram is currently be-ing undertaken and tour-ist destinations havebeen developed/improved, (4) market-

    driven product enhance-ment of handicrafts isalso being pursued, (5)capacity building pro-gram for entrepreneurs isongoing, and (6) familyagri/aqua culture produc-tion is currently beingundertaken.

    But Maribojoc's journeythrough LRED also had

    its challenges. First,since it was the first timethat government and pri-vate sector joined togeth-er in planning, most ofthe stakeholders wereapprehensive of the ap-proach, after all, bottom-to-top level planning wasentirely new to them.

    Reaping the Gains of Economic Development

    Second, the level of com-mitment from stakeholderscould not as yet be deter-mined due to the newleadership of the LGU.

    But things turned outsmoothly for Maribojocan-ons. With the energy and

    dynamism of the LGU inpushing for development,Maribojoc has come to lifeagain.

    By VIERNA TERESA CHIU-LIGAN

    DTI-BOHOL

    ___________________________

    FEATURE

    STORY

    What is LRED ?What is LRED ?What is LRED ?What is LRED ?

    The Local and

    Regional Economic

    Development (LRED) is

    a participatory, action

    oriented and holistic

    approach.

    It is a process wherein

    public and private

    stakeholders in a

    locality jointly improve

    conditions foreconomic growth and

    employment

    generation.

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    Now, after four years, NangYolie is very happy to seemore businesses in hertown. Economic activity hasreturned, tourism has flour-

    ished and above all, gettinga business permit takes only38 minutes!

    I am so blessed to haveparticipated in the LREDworkshop conducted by DTIand GIZ. That was the firsttime that I was invited toparticipate in a planningworkshop. I was so sur-prised that the LGU has

    listened to my voice, and Iam so happy that I joined. Ialso thank DTI and GIZ forhelping Maribojoc. NangYolie proudly said.

    Accordingly for the LGU, thesimplification of its licensingprocedures has become thedriving factor that broughtsignificant changes to itssystem. The strengthened

    collaboration with the BoholProvincial Government alsohelped the LGU improve itsrevenue generation activi-ties. The introduction ofeTRACS (Enhanced TaxRevenue Assessment andCollection System) of theLGDP (Local GovernanceDevelopment Program) thruthe AusAid (AustralianAgency for InternationalDevelopment) also boostedthe LGU's revenue collec-tion efforts.

    "Our greatest achievementso far is the simplification ofour business licensing pro-cedures. Our total local rev-

    enue collection has in-creased by as much as200%", shares MayorEvasco, in his openingmessage during the

    Compass workshop lastSeptember 2011.

    But the gains do not justend here.

    For two consecutiveyears now, Maribojocwas awarded the Seal ofGood Housekeeping bythe DILG (Department of

    Interior and Local Gov-ernment), an award giv-en to LGUs with exem-plary performance in theareas of legislation, de-velopment planning, rev-enue generation, re-source allocation andutilization, customer ser-vice- civil application,human resource man-agement and develop-ment, participation, trans-

    parency and financialaccountability. Subse-quently in December2011, Maribojoc alsowon the 2011 GalingPook Award for soundleadership, given by theGaling Pook Foundation.

    And surely, the collabo-rative and complemen-tary efforts of govern-

    ment and private sectors,has pushed Maribojoc towhere it is today.

    "LRED has been very

    helpful in making Maribo-joc a real business-friendly municipality",says Engr. Ma. NenitaChiu, Municipal Planning

    and Development Coor-dinator and chair of thelocal LRED TechnicalWorking Group.

    Indeed, LRED has donea lot for this once sleepytown. Today, Maribojoc isone of Bohol's leadingdestinations for LGUsthat benchmark on gov-ernance and administra-

    tion. The complete in-volvement and coopera-tion of all stakeholders inplanning and putting intoaction the different activi-ties of the LGU is theguiding force behind itssuccess in governance.

    But amidst all thesethings, the question stilllooms. Will Maribojoc beable to maintain its image

    as an SME-friendly LGU?

    Mayor Evasco, in hisopening message to localstakeholders in its Janu-ary convocation programthat called for renewal ofcommitment for Maribo-joc, thus said, Let usstart the year with verygood vibes among our-selves and work collec-tively for the good of our

    people notwithstandingour political affiliations. Iam open to working witheveryone who is willing towork for the bettermentof the people of Maribo-joc.

    Vierna interviews Julieta

    And for Nang Yolie, shefeels so happy andblessed because thingsare working well for herand her business, andshe got an LGU that lis-tens to her concerns.

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    and/or distributorcaught selling motorcy-cle helmets without PSor ICC mark will bepunished with a fine ofnot more than Php150,000.00.

    Under Republic Act10054 or MotorcycleHelmet Act, anyone

    caught tampering, al-tering, forging and imi-tating the PS mark andthe ICC mark on a hel-met will be punishedwith a fine of not morethan Php 20,000.00.

    The Department of Tradeand Industry (DTI) directsretailers and distributorsselling motorcycle hel-mets to get their supplyof these items from man-ufacturers and importersthat have been given bythe DTI the PhilippineStandard (PS) licenseand/or Import Commodity

    Clearance (ICC) Certifi-cate.

    Under DTI DepartmentAdministrative Order(DAO) Number 02, Se-ries of 2007, any retailer

    DTI WARNS RETAILERS ANDDISTRIBUTORS SELLINGSUBSTANDARD MOTORCYCLEHELMETS

    Inspec&on and s&ckering of

    helmets in Cebu above and in

    Negros Oriental below.

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    n almost every country,MSMEs dominate the

    business sector in termsof number of establish-ments.

    Often dubbed as thebackbone of the economyor the linchpin of econom-ic development, theMSME sector is criticalfor investment and eco-nomic growth, job crea-tion, local taxation,productivity enhance-

    ment, and technologicalinnovation.

    It is for this reason thatcountries and internation-al organizations are im-plementing programs topromote MSME develop-ment.

    In the Philippines, theMSME sector is seen asa critical driver for the

    countrys economicgrowth.

    The MSME sector is alsothe entry point for localentrepreneurs to buildnew businesses some ofwhich grow into largebusinesses that createwealth and employment.

    At present, the perfor-mance of MSMEs hasremained constrained by

    various factors that pre-vent them from realizingtheir potentials and sur-viving and growing in ahighly competitive envi-ronment.

    These include high costof doing business, lack of

    access to finance andmarket information, and

    low productivity and com-petitiveness. While thepoor business conditionshave affected the perfor-mance and competitive-ness of all enterprises,the impact is perceivedto be more difficult forMSMEs given their rela-

    tively small size and lim-ited resources.

    Many MSMEs are unableto qualify for bank loansbecause they lack thenecessary track recordand collateral.

    The lack of credit infor-mation also deters banksfrom lending to MSMEsas it is more difficult todetermine their credit-worthiness. With theirlimited management andfinancial capabilities,many MSMEs have re-mained domestic orient-ed rather than take therisks of focusing on ex-port markets.

    Another key concern is

    the low productivity ofMSMEs due to lack of ac-

    cess to new technology,weak technological capa-bilities, and failure to en-gage in innovation andresearch and developmentactivities.

    Access to finance is one ofthe most critical factorsaffecting the competitive-ness of MSMEs.

    Many are unable to qualify

    for bank loans becausethey lack the necessarytrack record and collateral.

    The lack of credit infor-mation also deters banksfrom lending to MSMEs asit is more difficult to deter-mine their creditworthi-ness.

    MSMEs do not have finan-cial expertise to manage ahealthy cash flow. This in

    turn affects their ability tosecure potential lendersand investors.

    With their limited manage-ment and financial capabil-ities, MSMEs have re-mained domestic orientedrather than take the risksof focusing on export mar-kets.

    MSMEs also lack the ca-pacity for financial man-agement.

    There are no funds availa-ble for start-up MSMEs inseveral regions. And theseMSMEs do not have ac-cess to venture capitalfunds.

    A C C E S S T O F I N A N C E F O R M S M E S

    The A2F portfolioteam is headed bythe SB Corporationand comprised bygovernment andprivate financial

    institutions as wellas a number ofdevelopment

    partners

    There is difficulty in re-structuring loans. More-over, MSMEs have lim-ited access to infor-mation regarding thesources of funds andhow to access these.

    It is within this contextthat the 2011-2016MSME DevelopmentPlan addresses the crit-ical constraints to thegrowth and develop-ment of the MSME sec-tor. To develop a vi-brant MSME sector, thePlan envisions imple-menting measures tocreate an enablingbusiness environmentand provide govern-ment support not onlyto improve MSME ac-cess to finance and

    expand market accessbut also to strengthenMSME productivity andcompetitiveness andtheir linkage with largeenterprises and valuechain networks.

    Based on the 2011-2016 MSME Development Plan of the Philippines

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    The MSMED Plan for 2010 to2016 was prepared followinga multi-step process of stake-

    holder consultations aroundthe country. Regional consul-tation workshops were firstconducted in 11 regions thatcollectively host 54% of totalPhilippine MSMEs. Theseworkshops were attended byrepresentatives from theMSME sector, business sup-port organizations, nationalgovernment agencies, LGUs,the academe, civil societyand international develop-

    ment institutions that couldprovide regional and provin-cial level perspectives.

    The implementation ofMSME Development Plan for2011 to 2016 is clusteredaround the four outcomeportfolios identified by stake-holders. Stakeholders de-fined the four portfolios dur-ing the consultation processfor the MSME DevelopmentPlan for 2011 to 2016 as fol-lows:

    1. Business Environment(BE)

    Business Environment is adynamic practice and cultureof governance that fostersthe establishment, develop-ment, sustainability, andcompetitiveness of sociallyresponsible and environment-friendly MSMEs.

    2. Access to Finance (A2F)Access to Finance is the sus-tained availability of reasona-bly priced, socially responsi-ble, and environment-friendlyfinancial products, services,and support programs thatare designed for MSMEs,and that MSMEs can con-

    veniently and readily access.

    3. Access to Markets (A2M)

    Access to Markets is the sustainedability of MSMEs to be competitive inselling their products and services toexisting and new markets, both do-mestic and international, under aclimate of fair, free, socially-responsible and environment-friendlytrade practices.

    4. Productivity and Efficiency (P&E)Productivity and Efficiency refers tothe production and delivery of com-petitive, standards-compliant, social-ly-responsible, and environment-friendly products and services thatgenerate optimum economic returns.

    The plan also takes into considera-tion global themes and cross-cuttingissues related to gender, climate

    change, corporate social responsibil-ity, and migration.

    The A2F portfolio is made up of eightresults statements describing a levelof access to financing to realize thePlans goals. These are:

    1. The financial products, services

    and support programs that MSMEsneed are sustainably available andaccessible even for start-upMSMEs and those in the country-

    side.

    2. The cost of obtaining MSMEloans is reasonable and affordable.

    3. The requirements that MSMEsneed to comply with to obtain loansare reasonableand manageable.

    4. The process that MSMEs need tofollow and documents that must besubmitted to obtain loans are sim-

    plified and streamlined.5. MSMEs are trained in financialmanagement and are able to under-stand and speak the language offinancial institutions, while financialinstitutions are trained to under-stand and speak the language ofMSMEs.

    6. Financial products and servicesfor MSME lending are gender-responsive and environment-friendly.

    7. The information needed byMSMEs to access financial re-sources is available and easily ac-cessible.

    8. The assistance extended bystakeholders to MSMEs in access-ing funds is coordinated, respon-sive, and effective.

    The A2F portfolio team headed bythe SB Corporation and comprised

    by government and private financialinstitutions as well as a number ofdevelopment partners focused itseffort on increasing the amount offunds available for MSME financingand on encouraging and buildingthe capacities of MSMEs to accessthese funds.

    Based on the 2011-2016 MSME Development Plan of the Philippines

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    MSME financing initiatives were undertaken to makefunds readily available to the sector.

    Among these initiatives were the Microfinance Pro-

    grams, the SME Unified Lending Opportunities forNational Growth (SULONG) Program which attempt-ed to address some of the key issues in MSME fi-nancing such as: standardization of loan require-ments; use of uniform and competitive rates; timeli-ness of action on loan request; increased outreach toprivate development partners; and information dis-semination of program to beneficiaries.

    There is also the Mandatory Allocation of Credit Re-sources to MSMEs. Pursuant to the provisions of RA6977: Magna Carta for MSMEs (as amended by RA8289 and RA 9501), all lending institutions shall set

    aside at least 8% for micro and small enterprises andat least 2% for medium enterprises of their total loanportfolio and make it available for MSME credit.

    There is also the Barangay Micro Business Enterpris-es (BMBE) Act of 2002 and the Agri-Agra ReformCredit Act of 2010.

    The DTI-BMSMED, being the Secretariat to the Na-tional MSMED Council serves as the M&E and KMhub for MSME development in the Philippines.

    1. As the M&E hub, DTI-BMSMED will consolidate

    reports with help from the provincial and regionalM&E focal persons in DTI and other NGAs. The M&E

    framework that will be maintained by DTI-BMSMEDwill, however, focus on results. Reports on outputswill be maintained at the subnational level where itwill be more relevant. The M&E reports that the M&Ehub will generate will be made available online and

    will also be disseminated to stakeholders.

    2. As the KM hub, DTI-BMSMED will develop a KMstrategy to collect, process, and disseminate relevantknowledge to MSME stakeholders to ensure an ef-fective and efficient information flow. The informationmanaged by the KM hub will be arranged around thefour outcome portfolios.

    3. To ensure the initiatives sustainability, the M&Eand KM functions of DTI-BMSMED and the other fo-cal persons who will form part of the M&E and KM

    activity whether from DTI, other NGAs, or from Re-gional and Provincial MSMED Councils, will be pro-vided adequate budget and will form part of the regu-lar budgeted functions of the DTI-BMSMED and theNGAs. The key deliverables of these agencies willalso include these M&E and KM functions.

    The MSME Development Plan 2011 to 2016 is meantto respond to the needs of our MSMEs to move for-ward, to prosper into viable ventures that will employmore Filipinos and help MSMEs become viable part-ners in promoting inclusive and sustainable growthacross the Philippines.

    Nothing stops the man who desires to achieve. Every

    obstacle is simply a course to develop his achievement

    muscle.

    Thomas Carlyle

    Based on the 2011-2016 MSME Development Plan of the Philippines

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    Members of the Regional

    Expanded ManagementCommittee of DTI Central

    Visayas participated in the

    Performance Governance

    System (PGS) workshop

    held on August 13, at Har-

    olds Hotel in Cebu City.

    This one-day workshop was

    facilitated by OOP Director

    Mary Jean T. Pacheco,

    Participants to the work-

    shop, in turn, are ex-pected to cascade their

    knowledge on the PGS

    framework to the rest of

    the regional employees.

    The PGS is based on aBalanced Scorecard(BSC) methodology, amanagement reform andevaluation tool devel-

    oped at the Harvard

    Business School.

    The BSC scheme trans-forms organizationalstrategies into concreteand quantifiable out-comes by aligning itsoperational activities withits objectives and strate-gies.

    The two-day Food SafetyTraining was participated

    in by micro and small en-terprises which producethe citys famous foodproducts like lechon,chicharon, and ampao.The activity was meant tosupport the growing foodsector of Carcar City andto ensure that food safetystandards are instilled andpracticed by food produc-ers and processors of the

    The Department of Tradeand Industry in coopera-

    tion with the Departmentof Science and Technolo-gy and the local govern-ment of Carcar City con-ducted a Food Safety andGood Manufacturing Prac-tices (GMP) Training to 40participants on August 23to 24, 2012 at the confer-ence room of Carcar CityHall.

    city, thereby makingthem more competitive

    and tourist-friendly.

    The training includedtopics on proper hand-washing, food hazards,how to prevent cross-contamination, essentialsof personal hygiene, foodpreparation, and pestcontrol measures.

    (Mark Aristotle Cabagnot)

    P G S C A S C A D I N G I N C E N T R A L V I S A Y A S

    FOOD MANUFACTURERS AND HANDLERS IN CARCAR UNDERGO FOOD SAFETY TRAINING

    N I C C E P S T R A T E G I C P L A N N I N G W O R K S H O P S

    dustry clustering being avalue chain based ap-proach proved to be ef-fectively contributing toproduct competitivenessof SMEs as they focuson market-driven produc-tion.

    Clustering creates a plat-

    form for convergenceand collaboration of boththe government and theprivate sector who arepart of the network ofbusiness developmentservice providers as well

    as the SMEs in the valuechain. Given this mecha-nism, it can also motivatethe LGUs to align theirdirection to the nationalthrusts providing theframework for the Public-Private Partnership.

    Where the stakeholders

    in the priority industriesare clustered towards acommon vision, it willfacilitate the rationaliza-tion of the countrys de-velopment and resourcemanagement plans .

    Strategic planning work-shops were conductedfor tourism, Health andWellness, Gifts, Decors,Houseware and ICT atQuest Hotel in Cebu.This is in relation to theNational Industry ClusterCapacity EnhancementProject (NICCEP).

    In recent years, this strat-egy has been a commonplatform adopted by theDepartment of Trade andIndustry for its export andSME development. In-

    N E W S B I T E S

    OOP director Jean Pacheco

    with RD Asteria Caberte

    and PD Nannette Arbon

    during the PGS Cascading

    Carcar City Mayor Nicepuro

    Apura gives an inspiration-

    al message to participants

    NICCEP participants draft strate-

    gic plans for their sector.

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    Members of the Local and

    Regional Economic De-velopment (LRED) Tech-

    nical Working Groups

    from Local Government

    Units ( LGUs) and Non-

    Government Associations

    (NGAs) in Cebu participat-

    ed in a Sharing and

    Learning Session held in

    September this year.

    The session was meant

    for participants to learn

    best practices from amongthemselves and possibly

    implement some of these

    to their area.

    LRED is a process by

    which stakeholders from

    both public and private

    sectors are mobilized to

    become partners in a joint

    effort to improve the econ-

    omy of a locality and in-

    crease its competitiveness.

    LRED intervention is one

    way to create more jobs,

    small business enterprises

    and income especially for

    local residents. To achieve

    this, both public and private

    sectors need to play key

    roles to drive the economic

    development of the town.

    Speed Matching is pat-terned after Speed Da-ting (a formalized match-making process or da-

    ting system to encouragepeople to meet a largenumber of new people).

    It is a structured way ofrunning business andmarket networkingevents with the goal ofmaking meeting poten-

    During 2nd semester thisyear, the Department ofTrade and Industry CentralVisayas brought tourism

    industry players from Ce-bu to meet suppliers inDavao, Boracay andCagayan De Oro as partof a Speed Matching activ-ity under the Tourism Lev-eraging Industry SupplyChains (LInCs) Project.

    tial business contacts easierand more productive.

    This enables suppliers totalk to buyers, make productpresentations, negotiateorders and/or establish long-term business relationships.

    Speed Matching is also alow cost but effective way tomatch local suppliers andbuyers.

    S H A R I N G A N D L E A R N I N G S E S S I O N S O N L R E D W I T H C E B U L G U S A N D N G A S

    S P E E D M A T C H I N G I N D A V A O , B O R A C A Y A N D C A G A Y A N D E O R O

    T O U R I S M V A L U E C H A I N T R A I N I N G S I N R E G I O N 7

    linkages in MSME(micro, small, and medi-um entrepreneurs) andtourism sectors betweenand among Regions VI,VII, VIII, Region IV-B(Puerto Princessa), Re-gion XI (Davao City)

    LInCs is in response tothe call for collaborationas embodied in the Mem-orandum of Agreementsigned between DTI and

    the Department of Tour-ism.In the MOA, the two de-partments agree toclosely coordinate witheach other in the com-prehensive developmentof the tourism sector,including promotion ofthe main tourism value

    chains and the strength-ening of various supplychains providing supportto the tourism sector.

    Tourism Value Chain train-ings were conducted bythe Department of Tradeand Industry (DTI) for theprovinces of Bohol, Cebu,Negros Oriental and Siqui-jor in September this year.

    This is in relation to theTourism Leveraging Indus-

    try Supply Chains Projector LInCs.

    LInCs aims to strengthen

    N E W S B I T E S

    Buyers and producers partici-

    pate in a speed matching activ-

    ity.

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    The Department ofTrade and Industry (DTI)and the Department ofInterior and Local Gov-ernment conducted aLocal Investments andIncentives Code Train-ing to LGUs in CentralVisayas on October 15 18, 2012.

    The training was meantto provide local govern-

    ments (province, city,municipality) with aguide for formulatingtheir local investmentsand incentives code

    (LIIC) as a proactivemeasure to draw localand foreign investmentsespecially in priority ar-eas/industries and as atool to define the devel-opment thrust of the LGUconsistent with its LandUse Plan and zoningregulations, hasten thedevelopment of new orbrownfield areas for in-

    dustrial and businessdevelopment, urban re-newal or revitalizationthereby attaining theLGUs economic and

    social objectives andcontributing to regionaland national goals.

    The DTI-BOI is tasked toserve as resource institu-tion of DILG and theLGUs in the formulationof the LIIC and in thedesign and implementa-tion capacity buildingactivities to enable LGUs

    to have effective invest-ment promotion activi-ties.

    Cebu City, Tel. # (63)(032) 412-1863 / 253-2631; NEGROS ORI-ENTAL PROVINCIALOFFICE, 2F UymatiaoBldg., San Jose Street.Dumaguete City, Tel. #(63)(035) 422-5509;SIQUIJOR PROVIN-CIAL OFFICE, ChanShe Bldg., LegaspiStreet, Poblacion, Siqui-jor, Siquijor, Tel. # (63)

    035-480-8241.DTI decided to accom-modate requests of pri-vate companies in orderto facilitate inspection ofhelmets and issuanceof ICC stickers to end-users.

    Companies in CentralVisayas submitted to theDepartment of Trade andIndustry (DTI) provincialoffices a request for in-spection of their employ-ees motorcycle helmetsto be done at their estab-lishment.

    All requests for inspectionof motorcycle helmetswere submitted to thefollowing provincial offic-

    es: BOHOL PROVINCIALOFFICE, 2F FCB Bldg.,CPG Ave., TagbilaranCity, Tel. # (63) 038-501-8828; CEBU PROVIN-CIAL OFFICE, 3F LDMBldg., M.J. Cuenco Ave-nue, Cor.Legaspi Street,

    To recall, Congresspromulgated RepublicAct 10054 otherwiseknown as MotorcycleHelmet Act in 2009 re-quiring all motorcycleriders, including driversand back riders to wearstandard protective mo-torcycle helmets orthose that have a PSlicense or ICC mark at

    all times while driving,whether long or shortdrives, while driving,whether long or shortdrives, in any type ofroad and highway.

    L O C A L I N V E S T M E N T S A N D I N C E N T I V E S C O D E T R A I N I N G

    D T I A C C E P T S R E Q U E S T S F R O M C O M P A N I E S T O I N S P E C T

    M O T O R C Y C L E H E L M E T S O F E M P L O Y E E S

    N E W S B I T E S

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    of business ethicsand upholds fair andhonest marketplacethrough voluntaryregulation and ser-vice excellence.

    The Bagwis Awardgives due recognitionto establishments thatuphold the right ofconsumers and prac-

    tice responsible busi-ness, where consum-

    In October, the Depart-ment of Trade and In-dustry regional and pro-vincial offices in CentralVisayas made an as-sessment of provincialnominees to the Bagwis

    Awards.

    DTI continues to en-courage more retail es-tablishments to join the

    Bagwis program as thisfosters the highest level

    ers get value for mon-ey.

    The program is also acheck and balance forestablishments to beguided on how theyshould operate whileconsistently conform-ing to governmentregulations, as well aslocal and internationalstandards.

    D T I 7 E V A L U A T E S B A G W I S P R O V I N C I A L N O M I N E E S

    N E W S B I T E S

    The MSSU is developing a price monitoring systemthat tracks prices of basic and prime commodities inreal time. The system will be available at the end of

    year 2012.

    DTI 7

    MSSU Notes

    In mid-October, the Management Support Services Unit(MSSU) installed a Virtual Bulletin Board (VBB) in com-

    puters of all DTI 7 regional employees. The VBB com-

    plements the physical Bulletin Board and currently pro-

    vides announcements in the vernacular, newsletters,

    monthly calendar of major DTI 7 activities, Kalampusan

    and OTOPreneur magazines. Employees can access

    information within the Virtual Bulletin Board at anytime

    DTI Negros Oriental

    evaluates a Bagwis nominee

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    The Department of Trade andIndustry (DTI) has earmarkedPhp 8 Million in 2012 and Php13 Million in 2013 to upscalethe Local and Regional Eco-nomic Development (LRED)program in Luzon and Minda-nao.

    Acknowledging the successfulintroduction of the LRED ap-proach in the Visayas that theDTI and the Deutsche Ge-

    sellscaft fr Internationale(GIZ) implemented togetherwith the 84 local governmentunits for the past eight years,DTI Undersecretary Merly Cruzsaid that the department con-tinues to upscale the LREDapproach in Luzon and Minda-nao, a process which has beenstarted already during thefourth quarter of 2008, in orderto make the business environ-ment more favourable forMSMEs in the Philippines.

    A concrete example of theimpact of the LRED in the localeconomy may be found in thesignificant gains in global com-petitiveness of the Philippines,says Lorenzo TemplonuevoSenior Adviser of the GIZ Pri-vate Sector Promotion Pro-gram (SMEDSEP).

    Templonuevo expects thatmore reforms made by bothgovernment and the privatesector using the Local andRegional Economic Develop-

    ment (LRED) approach willcontinue to improve the coun-trys business environment inthe coming years.

    LRED is an iterative and partic-ipatory economic developmentprocess by which stakeholdersfrom both public and privatesectors are mobilized to be-

    come partners in a joint effortto improve the economy of alocality and increase its com-petitiveness.

    With the LRED process thevoice and concerns of theprivate sector are proactivelysought out to make the localgovernment units legislativeprocesses and policies be-come more responsive to theneeds and interests of busi-nesses, Templonuevo ex-plains. LRED is a major stepto create jobs, business en-terprises and income for theLGUs.

    In 2003, The Philippine gov-ernment, in partnership withthe Federal Republic of Ger-many, initiated a private sec-tor promotion program tocreate a more favourablebusiness environment forMSMEs in the Visayas. Intime this program became

    popularly known as PSPSMEDSEP.

    On its last phase in 2012, aclosing event for the PSPSMEDSEP was held on Octo-ber 24 at the Raddison BluHotel to give recognition tothe DTI and GIZ partnershipin the implementation of thehighly successful MSME De-velopment Program.

    The PSP SMEDSEP closingactivity also featured the soft

    launch of the Promotion ofGreen Economic Develop-ment (ProGED) PhilippinesProject.

    Usec Cruz says that manyapproaches and themes thatPSP SMEDSEP have sharedwith DTI have already beenmainstreamed in the Visayas

    and are now being upscaledto the rest of the countrythrough cooperation withother development partners.

    Templonuevo reveals thataside from the LRED ap-proach PSP SMEDSEPhas also introduced otherbusiness enabling ap-proaches such as stream-lining of the business permitand licensing system

    (BPLS) at the city and mu-nicipal level, cash flowbased lending, private sec-tor provision of businessdevelopment services, andpromotion of market sys-tem development and theValuelinks framework toupgrade sector valuechains.

    PSP SMEDSEP contributesto the efforts of the Philip-pine government to improvethe framework conditions

    for private sector develop-ment in the country. It isimplemented in partnershipwith the Department ofTrade and Industry at thenational, regional and pro-vincial levels on behalf ofthe Philippine governmentand the German FederalMinistry for Economic Co-operation and Development(BMZ).

    At the National level, PSPSMEDSEPs advisory ser-

    vice helped shape the 2011to 2016 National MSMEDevelopment Plan whichhas been adopted by thePhilippine DevelopmentPlan of the Aquino Admin-istration.

    GIZ is an international co-operation enterprise for

    DTI SETS ASIDE BUDGET FOR LRED UPSCALING IN LUZON AND MINDANAO

    N E W S B I T E S

    sustainable development withworldwide operations ownedby the German Government.For 30 years, it has been

    providing forward lookingcontributions to political, eco-nomic, ecological and socialdevelopment in partner coun-tries.

    GIZ supports reform andchange processes in an in-creasingly globalized world,often working under difficultconditions. Its major ap-proach to facilitate change ispromoting capacity develop-ment of people and partnerorganizations as well as im-proving institutions and frameconditions in partner coun-tries. The joint projects andprograms are outcome andimpact oriented and contrib-utes towards socioeconomicprogress.

    Press Conference for PSP SMEDSEP

    final event and PROGED so launch.

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    In October, the Departmentof Trade and Industry Cen-tral Visayas Office (DTI 7)received proposals fromindustry associations andcooperatives for the estab-lishment of Shared ServiceFacilities (SSF) and ma-chineries for use by microand small enterprises intheir areas.

    These SSF proposals willbe screened by the DTI

    head Office after which theagency will conduct a publicbidding for the supply ofthese machineries andequipment.

    All proposals are for theestablishment or purchaseof equipment and machiner-ies for business and agri-

    business ventures.

    DTI Central Visayas priori-tizes SSFs for businessesengaged in bamboo, coco-nut / coco coir, seaweeds,GDH, wearables, home-style, metals and metal-works, and processedfoods.

    As of October 2012, therewere 13 SSFs approvedand ready for public bid-

    ding based on report sub-mitted by DTI. In Cebu,these include Coco Twine/Coir Production, Decorti-cating Machine, Modern-ized and Eco-friendly Pro-duction Facility. In Bohol,approved SSFs includethe Shared Service Facilityfor the Calamay Industry

    of Jagna and Alburquer-que, Shared Service Fa-cility for the Meat Pro-cessing Project of Catig-bian, Shared ServiceFacility for the GingerProcessing Project ofLoboc, Raffia Competi-tiveness and ProductivityEnhancement Program,Shared Service Facilityfor the Bicao FarmersMulti Purpose Coopera-tive Food Processors,

    Shared Service Facilityfor Dauis Fine Jewelry.For Negros Oriental, theyhave the Bamboo Pro-cessing Center for Ne-gros Oriental. For Siqui-jor, these include a FoodProcessing and LabellingCenter, Enhancement ofthe Community-based

    SHARED SERVICE FACILITIES (SSF) FOR CENTRAL VISAYAS

    N E W S B I T E S

    Larena Wood Craft Indus-try and SSF for BayongProduction.

    DTI 7 hopes that by earlynext year these facilitieswill be in place so microand small enterprisesamong clustered industryplayers can already usethese in the first quarter.

    SSFs shall be hosted by aprivate group, industry as-

    sociations, cooperative.

    SSFs are meant to im-prove the capability of mi-cro enterprises in the pro-cessing of raw materials,improve their productivity

    and quality and to ad-dress gaps in supplyand value chain.

    Skills Training on Bayong Making for Agrarian

    Reform Community in Timbaon was held on

    Sept 6-7

    Value chain seminar for Agrarian Reform

    Community in Timbaon, Siquijor

    was held on April 11

    Product Development training for Agrarian

    Reform Communitees in Larena and

    Timbaon was held

    on May 23-24

    COMPREHENSIVEAGRARIANREFORMPROGRAMUPDATE

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    By MARIA TERESA TAY and JOJISILIA VILLAMOR

    Abatan river has its own mystery.

    A cruise through this waterway is said to open up a passage for Boholanos to con-nect with their ancestors and find the way to peace and progress. This belief isshrouded in a folktale that ties this old thoroughfare to the life of inhabitants in Bohol.

    Centuries ago, when roads were still undeveloped, the Abatan River served as themain waterway of the island and the center of trade and commerce in Bohol. Fromthe Antequera and Catigbian uplands, this thoroughfare flows through the towns of

    Cortes and Balilihan before ending up in Maribojoc Bay. The sides of this scenicstream are occupied by dense nipa forest and thick mangroves that serve as habitatto crabs and clams among others.

    This fabled river, 13.5 kilometers long and 25 to 50 meters wide, is now the focus ofone of the biggest eco-tourism projects in Bohol ---the Abatan River Life Tour.

    Blessings from the RiverAN ECONOMIC JOURNEYAN ECONOMIC JOURNEYAN ECONOMIC JOURNEYAN ECONOMIC JOURNEY

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    Using a native boat called Bandong, the largestream can be traversed in a three-hour voyage.Boat passengers will find that the waterways

    tranquil ambience, cool breeze, swaying palmsprovide a good respite from the din of urban life.

    Emilia Roslinda, executive director of PROCESSBohol Foundation, Inc., project management of-fice of Abatan River Life Tour, shares that thetour was designed as a community-based pro-

    ject. It is a cultural, tourism, environment preser-vation and alternative livelihood meant to allevi-ate poverty for the people along this body of wa-ter, recounts Roslinda. And considering the ac-

    tive participation ofthe elderly, it is oneopportunity to pass-on to the youngergeneration the age-old traditions of the

    Abatan River com-munities.

    Roslinda animatedlydescribes the tourthat begins at theEcotourism VillageCenter in Cortes,about 10 kilometersfrom Tagbilaran City.She enumerates themany interesting ac-tivities that await visi-tors at each stopalong the tour such as witnessing river life ex-pressed through song and dance, listening toserenades, participating in basket weavingdemonstrations, plunging on adventure explora-tions and partaking of tasty native delicacies.

    Tour participants also get the opportunity to viewexhibits on the rich history and culture of AbatanRiver communities as well as buy some of thelocal crafts under the One Town One Product(OTOP) Philippines project. In Antequera, atown known for its intricate basket weaves, tour-ists can also purchase other native products such

    as hampers, wall decors, bags and fashion ac-cessories. While in Maribojoc, one can buy thebanig baliw, the OTOP product of this munici-

    pality. To save this diminishing industry, thelocal government of Maribojoc, in coordinationwith the Department of Trade and Industry(DTI), conducted a series of trainings to convertthe banig baliw into handbags, tote bags, throwpillows and placemats.

    The river tour sprang from the collective initia-tives of the Abatan River Development Manage-ment Council (ARMDC) composed of five LGUsof five municipalities, provincial government,

    national government agen-cies, non-government or-ganizations as well ascommunities situatedalong this waterway.

    In developing the AbatanRiver, the cluster/ multi-sectoral approach wasadopted by the ARMDCfor the municipalities ofCortes, Maribojoc, Balili-han, Catigbian and Ante-quera. The ARMDC be-lieves that this approachencourages communityparticipation in the conser-vation, preservation andmanagement of the envi-ronment and cultural herit-

    age in the area.

    ARMDC saw the collective sense of responsibil-

    ity to protect and conserve the Abatan as acommon ground that binds together the munici-palities along the channel. The stakeholdersalso recognize that the river has the potential tobecome a major ecotourism attraction, a way toprovide livelihood for residents, additional in-come for municipalities and a means to igniteeconomic growth in the towns it traverses.

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    Moreover, stakeholders realizethat the development of thewaterway as an ecotourismdestination provides a milieuwhere they can market andpromote handicrafts, agricul-tural produce and other prod-ucts from the residents livingalong this channel as well asattract potential investors tothe municipalities.

    It is worth noting that recogni-tion of the advantages of thecluster/ multi-sectoral ap-proach to the development ofthe river came about when thefive municipalities of the

    Abatan Cluster were intro-duced to the Local RegionalEconomic Development(LRED) concept by the Ger-man Technical AgencyDeutsche Gesellschaft fur In-ternationaleZusammenarbeit(GIZ) and the DTI Bohol Pro-vincial Office in 2008.

    LRED is one approach used toimprove the business and In-vestment climate within theLocal Government Unit of a

    municipality or city.

    For the five municipalities, aseries of workshop seminarswere given to assess their eco-nomic development needs.Based on their assessedneeds, each municipality draft-ed their LRED action plans. Af-ter which, a consolidation work-shop was conducted for localchief executives, their repre-sentatives and the LRED teamsof each municipality to put in

    place an economic develop-ment plan for the Abatan Clus-ter.

    Upon the recommendation ofDTI Bohol provincial directorMaria Elena Arbon, the LREDprocess in the province wasimplemented simultaneously infive municipalities to ensure abigger impact on economic de-velopment. The Abatan ClusterLRED had two levels of imple-mentation the municipal leveland the cluster level.

    Arbon narrates that the first lev-el of the approach concentratedon convincing the local chiefexecutives (LCEs) of the munic-ipalities to embark on LRED."Once the approval of the LCEswas attained, the people in-

    volved in the implementation ofthe approach were capacitat-ed." Another activity followed totake stock of the current eco-nomic realities of the member-municipalities. These initiativesnecessitated the formation ofthe municipal LRED teams, Ar-

    bon explains.

    Equipped with a deeper under-standing of their economic reali-ties and with their various actionplans, the municipal LRED teamsthen gathered together to startimplementing the second level ofthe approach. The second level,

    Arbon discloses, involved theconsolidation of the municipalLRED plans to form the clustermodel.

    Through LRED, Abatan stake-holders identified strategies topromote their eco-tourism activi-ties and to respond to various is-sues and challenges.

    To ensure that plans are imple-mented, a pledge of commitmentto provide technical assistance in

    any of the prioritized project inter-ventions was forged amongstakeholders and enablers.

    Abatan River Life Tour par&cipants ex-

    ploring the countryside.

    Life at the Abatan River is expressed through

    music.

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    The DTI- Public Relaons Office

    organized the DTI-wide Informaon

    Officers' Forum and Workshop held on

    August 01 to 03, 2012 at the Crowne

    Plaza Manila Galleria, Orgas Center,

    Pasig City.

    The forum and workshop was meant

    to strengthen the exisng DTI

    informaon/communicaon system

    and structure that will enable DTI

    informaon officers to proacvely

    disseminate informaon to the

    Department's stakeholders, target

    audiences, and the general public.

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    A Case Study on the Bohol MSMED Council

    he Bohol MSME sector is

    a crical driver for the

    islands economic

    growth. The sector serves as

    supplier and subcontractor

    to large enterprises includ-

    ing exporters and is part of

    a support system for logis-cs services.

    SITUATIONAL ANALYSISOF BOHOL MSMEs

    Based on March 2011 datafrom the Department ofTrade and Industry (DTI)Bohol Provincial Office,98.86% of Bohol enterpris-es are micro with asset

    size of P3.0M and below.

    The pursuit of the full de-velopment and optimumperformance of BoholMSMEs remains a hugeand continuing challenge toBohol.

    Currently, the performance ofMSMEs in the province hasremained constrained by var-ious factors that preventthem from realizing their po-tentials and surviving andgrowing in a highly competi-tive environment. These in-clude high cost of doing busi-ness, lack of access to fi-nance and market infor-mation, and low productivityand competitiveness.

    While the poor business conditionshave affected the performance andcompetitiveness of all enterprises,the impact is perceived to be moredifficult for MSMEs given their rela-tively small size and limited re-sources.

    Many MSMEs are unable to qualifyfor bank loans because they lackthe necessary track record andcollateral. The lack of credit infor-mation also deters banks fromlending to MSMEs as it is more

    difficult to determine their credit-worthiness. With their limited man-agement and financial capabilities,many MSMEs have remained do-mestic oriented rather than takethe risks of also exploring exportmarkets. Another key concern isthe low productivity of MSMEs dueto lack of access to new technolo-

    gy, weak technological capabilities,and failure to engage in innovationand research and developmentactivities.

    THE BOHOL PROVINCIAL MI-CRO SMALL AND MEDIUM EN-TERPRISE DEVELOPMENT

    COUNCIL

    In 1997, the Bohol Provin-cial Small and Medium Enter-prise Development Council(PSMEDC) was established toallow replication of the NationalMSMEDCs functions at the pro-vincial level. Thus the PSMEDCwas primarily responsible for thepromotion, growth, and develop-ment of MSMEs at the provinciallevel. It was Chaired by thePresident of the Bohol Chamber

    of Commerce and Industry andCo-Chaired by the City Mayor. Itis important to note that the lead-ership of the Provincial MSMEDCouncil is on a co-chair basis toclearly demonstrate private-

    public partnership in the promotionand development of MSMEs.

    In 2010, the Bohol ProvincialMSMED Council was reorganizedmaking the Provincial Governor asthe Chair and Co-Chaired by the

    President of the Bohol Chamber ofCommerce and Industry. Member-ship was also expanded to includemore private sector participation.Executive Order N0. 3 s. 2010was issued by the Provincial Gov-ernor creating the PMSMED Coun-cil as well as its functions.

    G E A R I N G U P F O R D E V E L O P M E N T

    By NITA AGAD BALABA

    DTI-BOHOL___________

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    Case Study on the Bohol MSMED Council

    To further strengthen theCouncil, an Executive Commit-tee of eight (8) members wascreated representing the 3 pri-ority sectors and chair of thedifferent functional committees.The Executive Committee shallmeet on a quarterly basis.

    The following are members ofthe Executive Committee:

    Chair - Gov. Edgar M. ChattoCo-Chair - Marietta S. GasatanMembers -Lucas Nunag, Tourism SectorLeah Magno, ICT Sector

    Larry Pamugas, AgricultureSectorJohn Titus Vistal, PPDOMa. Fe Dominise, BIPCFrancisca Opog, TESDA

    FUNCTIONS OF THE PMS-MED COUNCIL

    The National MSMEDC hasapproved through a resolution

    the Powers and Functions ofthe Provincial MSMED Coun-cils which further delineates theduties and functions of the gov-ernment and private sectormembers of the Council.

    To help establish the need-ed environment and

    opportunities conducive to the

    growth and development ofthe MSME sector;

    To recommend to the Presidentand the Congress all policymatters affecting MSMEs;

    To coordinate and integrate vari-ous government and privatesector activities relating toMSME development;

    To review existing policies ofgovernment agencies thatwould affect the growth anddevelopment of MSMEs andrecommend changes to thePresident and Congressthrough the Committee onEconomic Affairs of the Sen-ate and the Committee onSmall Business and Entrepre-neurship Development of theHouse of Representatives,whenever deemed necessary.This shall include efforts tosimplify rules and regulations,

    as well as review of the ap-plicability and relevance ofprocedural and documentaryrequirements in the registra-tion, financing, and other activ-ities relevant to MSMEs theresult shall be included in theannual report to be submittedto Congress;

    To monitor and determine the pro-gress of various agenciesgeared towards the develop-

    ment of the sector. This shallinclude overseeing, in coordi-nation with local governmentunits and the Department ofInterior and Local Governmentas well as private sectorgroups/associations, the de-velopment among MSMEs;

    To promulgate implementingguidelines, programs, andoperating principles as maybe deemed proper and nec-essary in the light of govern-ment policies and objectivesof this Act;

    To provide the appropriate policyand coordinative frameworkin assisting relevant govern-ment agencies, in coordina-tion with the NEDA and theCoordinating Council for thePhilippine Assistance Pro-

    gram, as may be necessary,in the tapping of local andforeign funds for MSME de-velopment;

    To promote the productivityand viability of MSMEs byway of directing and/or assisting relevant governmentagencies and institutions atthe provincial level.

    ACTIVITIES UNDERTAKEN BY THEBOHOL PMSMED COUNCIL

    The German Cooperation Agency(GIZ) has been the constant partnerof the Department of Trade and In-dustry in terms of strengthening andcapacitating the Bohol ProvincialMSMED Council. The following work-shops were undertaken:

    Provincial Harmonization Workshopin Loay, Bohol. It was during thisworkshop where the Bohol SMEDPlan was crafted.

    Another PMSMED Council PlanningWorkshop was conducted in Octoberof 2008 in Dauis, Bohol to revisit theformulated SMED Plan.

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    Case Study on the Bohol MSMED Council

    A three-day Provincial Micro,Small and Medium Enter-prise (MSME) Development

    Planning Workshop was heldin Tagbilaran City on March 2to 4, 2011. This was attend-ed by around 80 stakehold-ers from government andprivate sectors.

    MSMED Council, observersfrom other provinces of Re-gion 6, 7 and 8 as well asfrom the national BMSMEDOffice were present to seethe proceedings of the work-

    shop with the intention ofreplicating the activity in theirrespective areas.

    The draft plans were initiallysubmitted for validation to theProvincial MSMED Council inApril 2011. During the vali-dation and fine-tuning work-shop, the sectoral represent-atives reviewed the Marchworkshop outputs and pro-vided additional technicalinputs to enhance the plans,provide more realistic strate-gies and include more strate-gy-focused plans, pro-grams and activities.

    In May 2011, the plans vali-dated and enhanced by thedifferent MSME sectoral rep-resentatives were presentedto the Provincial MSMEDCouncil, Executive Commit-tee.

    During this presentation,there was still a need to in-clude some more details inthe sectoral plans like clearertimelines and targets.

    In June 2011, the plans werereviewed by the DTI-Bohol

    technical team who categorizedthe plans and strategies into thefour levels of systemic competitive-

    ness, culled out commonalities toproduce the Provincial MSMEDPlan and provided timelines forimplementation.

    Consultative and participatory pro-cesses were observed all through-out the planning process to ensurethat the three key MSME sectorsas well as the PMSMED Councilwill take ownership of the plan andincrease their stakes into ensuringits successful implementation.

    Two coaching sessions with theGerman Technical Agency GIZwere done in 2011 while the thirdcoaching session was on April 16,2012.

    Hand in hand with the CapacityDevelopment of the Council, theSecretariat was also capacitatedthrough a workshop in the formula-tion of the Operations Guidebook

    of the Provincial MSMED Council.Generally, the Operation Guide-book serves as a ready referenceon the procedures, processes andmechanics necessary for thesmooth operations of the affairsand activities of the MSMED Coun-cils. It also standardize processesand procedures in the provision oftechnical and administrative sup-port to the MSMED Councils.

    Because meetings are the lifebloodof the PMSMED Councils, the Op-erations Guidebook likewise con-tains standard forms and templatesto ensure Council meetings arewell-prepared, adequately man-aged and efficiently conducted toproduce expected results and de-sirable outcomes.

    Activities undertaken for the capacitydevelopment of the Bohol MSMEDCouncil has been a collaborative effort of

    the Bohol Provincial Government, theDTI and the GIZ in cooperation with pri-vate sector representatives from variousmicro, small and medium enterprises intourism, agriculture and the ICT sectors.

    With its capacity developed, the Provin-

    cial MSMED Council members now

    know their roles as well as functions of

    the Council; strategies have been for-

    mulated on the three functional man-

    dates (Policy Formulation, Program

    Advocacy, and Program Integrationand Coordination Committees). Most

    importantly, capacity development ef-

    forts paid off in terms of more pro-

    nounced and focused participation of

    member agencies in the Council; mem-

    bers are currently more eager to partic-

    ipate in all of the undertakings of the

    Council because of the clear direction

    that it is taking.

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    In celebration of the Regional Development CouncilAnniversary, DTI 7 participated in a press conferencethat was conducted on September 25, 2012 at theNEDA 7 Regional Office.

    During the press conference, NEDA-7 ARD EfrenCarreon presented the Economic Situationer in CentralVisayas while DTI-7 IO Jojisilia Villamor shared pro-grams, activities and projects of DTI towards reducingpoverty such as the Local and Regional Economic De-velopment, Subcontracting Partners for Innovation andComprehensive Agrarian Reform Program. She alsoshared updates on Tourism LInCs, Philippine BusinessRegistry, Business Permit and Licensing System andthe One Town One Product Program.

    Central Visayas held its 1st Regional Bamboo

    Conference on September 28, 2012 in Dumaguete

    City.

    In photo are miniature replicas of waiting sheds to

    be set-up along Dauin National Highway in Negros

    Oriental.

    DTI involves itself with the business development of

    the bamboo industry. The DTI helps build thecapacity of beneficiaries to produce marketablebamboo products. In addition, beneficiaries receivemarketing assistance from department.

    On September 19, the DTI and the Philippine ProductSafety and Quality Foundation, Inc. (PPSQF)

    conducted a seminar on product standards at the Cebu

    Grand Majestic Convention Center.

    The Philippine government has always supported the

    fight against the proliferation of uncertified and

    substandard imported products particularly construction

    materials covered under the Mandatory Product

    Certification Scheme of the Bureau of Product

    Standards (BPS).

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    The Department of Trade and Industry (DTI) and theDeutsche Gesellschaft fr Internationale Zusam-menarbeit (GIZ) held the soft launch of the Promotion ofGreen Economic Development (ProGED) Philippines

    Project on 24 October at the Radisson Blu Hotel in Ce-bu City.

    On the same day of the ProGED launched was the finalevent of the PSP SMEDSEP in the Philippines that cele-brates the success of the DTI and GIZ partnership in theimplementation of the highly successful over nine yearsprivate sector promotion program.

    The DTI Negros Oriental staff monitored prices ofbasic and prime commodities in earthquakestricken areas in the province.

    It is part of the DTI's mandate to conductregularpricemonitoring on basic commodities andother processed products to see if there is anexcessive increase in prices.

    The DTI checks the prices of grocery items such assardines, processed milk, coffee, detergent bar,laundry soap, noodles, bread, processed food,construction materials, and flour.

    The Department of Trade and Industry (DTI), through itsBureau of Trade Regulation and Consumer Protection

    (BTRCP), held a public hearing on the Rationalizationof Fines on October 23, 2012 at Harolds Hotel, Gorordo

    Avenue, Lahug, Cebu City.

    DTI has drafted a Department Administrative Order(DAO) entitled: Classifying Administrative Offensesunder Consumer Act (R.A. 7394) and the Law onStandards (R.A. 4109) and Rationalization of finescorresponding thereto.

    The DAO covers consumer complaints and formalcharges involving transactions committed in commerceeither customary or electronic means in violation of theprovisions of R.A. 7394 and R.A. 4109.

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    The Department of Trade and Industry (DTI) Central Visayaspassed the 2nd surveillance audit conducted by the CertificationInternational Philippines (CIP) Inc. on November 7-9, 2012 in rela-tion to Quality Management System (QMS) ISO 9001:2008 certifi-

    cation.

    As ISO-certified, DTI-Central Visayas has fully developed certainformal processes in its management quality control.This includes monitoring processes, complete and accurate rec-ords maintenance, checking and correction of defective outputsand effectiveness continual internal reviews.

    International Organization for Standardization (ISO) is an interna-tional organization that gives certification to businesses, govern-ment organizations and social entities that meet certain commonstandards.

    To increase the OTOP items registered online viaShopinas and to enroll all OTOP SMEs in the OTOPwebsite, the DTI 7 and OTOP Store staff photographedseveral products of the OTOP Store Cebu outlet inDecember.

    The One Town One Product (OTOP) Store is a depot oftop-quality products in the Philippines.

    A Public-Private Partnership project, the OTOP Store is amicrocosm of the Philippines as a nation. Products fromall over the country -reinvented, reshaped, redesigned,drawn out, sculpted, or reconfigured using materials nativeto the area, are all in this shop to entice the seeker to buy.

    For OTOP Store in Cebu, around 70 percent of theseproducts are sourced from Central Visayas while 30percent of it comes from different parts of the country.

    The Board of Investments (BOI) in partnership with the DTIconducted an Investments Roadshow on November 22, 2012 atthe Crown Regency Hotel and Towers, Fuente OsmenaBoulevard, Cebu City.

    The activity served as a venue for the presentation of therecently approved 2012 Investment Priorities Plan (IPP) and afeedback session on how the government may further assist theexisting and would be entrepreneurs in their businessundertakings.

    Projects identified under the IPP are entitled to a package ofincentives including income tax holiday, duty-free importation ofcapital equipment among others. This years IPP comprises atotal of 13 preferred economic activities including agriculture/agribusiness and fishery, creative industries/knowledge-basedservices, shipbuilding, mass housing, iron and steel, energy,infrastructure and PPP, research & development, green projects,hospital and medical services projects, motor vehicles, strategicprojects, and disaster prevention and recovery projects.

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    DTI HOLDS 1ST REGIONAL BAMBOO CONFERENCEDTI HOLDS 1ST REGIONAL BAMBOO CONFERENCE

    The Department of Tradeand Industry (DTI) and the

    Bamboo Industry Develop-ment Council organized thefirst regional bamboo confer-ence held on September 28,2012 in Dumaguete City.This was part of the provin-cial effort to promote bambooas a means of livelihood andto offset the negative impactof climate change.

    The bamboo conference wasmeant to gather stakeholders

    in the province as well as inthe region to draw futureplans for the bamboo indus-try.

    The DTI led the creation ofthe local bamboo industrydevelopment council in Ne-gros Oriental to comply withExecutive Order (EO) No.189, to help intensify thebamboo industry in the prov-ince.

    DTI Provincial Director Javier For-tunato briefed members of the

    council on the significant items ofthe EO that directs the full imple-mentation of the Philippine Bam-boo industry Development Pro-gram.

    During the conference, bambooexperts discussed the state of thebamboo industry in the country, itsvalue chain and directions.

    The activity also included resourcemapping, product development,and technology transfer, and ca-pability building-training.

    The provincial bamboo develop-ment council is composed of vari-ous government agencies thatinclude the DTI as the chair body,the Department of Environmentand Natural Resources, Depart-ment of Agriculture, Department ofEducation (DepEd), Department ofScience and Technology, Depart-

    ment of Labor and Employment, theNegros Oriental Chamber of Com-

    merce, Inc., the Philippine BambooFoundation Inc. and the Buglas Bam-boo Institute, among others.

    The EO tasked the DepEd to procurethe equivalent of at least 20 percent ofthe annual school desk and armchairrequirement of all public elementaryand secondary schools nationwide inbamboo furniture.

    Naonal Compeveness Council Roadshow in Cebu City

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    EDITORIAL

    BOARD

    Executive Editor

    Asteria C. Caberte

    DTI 7 Regional Director

    Managing Editor

    Rose Mae M. Quinanola

    Writer /Editor

    Jojisilia Villamor

    Lay-out Artists

    Jerome Elarcosa &

    Bernard Cabasisi

    Contributors

    Jacqueline Calumpang

    Maria Teresa Tay

    Vierna Teresa Chiu Ligan

    Nita Agad Balaba

    Anima Patria

    Angeline Gonzales

    Mark Aristotle Cabagnot

    REGIONAL OFFICE

    Regional Director ASTERIA C. CABERTE

    3rd Flr, WDC Bldg.,Osmena Boulevard, cor. P.Burgos, Cebu City

    Tel. # (63)(032) 255-0036 / 255-0037

    Fax # (63)(032) 253-7465

    email: [email protected] / [email protected]

    http://www.facebook.com/dtiregion7

    http://dti7updates.tumblr.com/

    REGIONAL OFFICE DIVISIONS

    Business Development Division

    Victoria Diaz, Chief

    Tel. Nos. 2550036 / 412-1989 / 412-1868 loc. 601

    e-mail: [email protected]

    Consumer Welfare and Business Regulatory Division

    Rose Mae Quinanola, OIC

    Tel. Nos. 2550036 / 412-1989 / 412-1868 loc 301

    Industry Development and Investment Promotion DivisionMinerva Yap, Chief

    Tel. nos. 412-1944 / 4121945 / 255-6971 / 255-3926

    e-mail: [email protected]

    BOHOL PROVINCIAL OFFICE

    Provincial Director MA. ELENA C. ARBON

    2F FCB Bldg., CPG Ave., Tagbilaran City

    Tel. # (63) 038-501-8260

    Fax # (63) 038-411-3533

    email: [email protected]

    CEBU PROVINCIAL OFFICE

    Provincial Director: NELIA V.F. NAVARRO

    3F LDM Bldg., M.J. Cuenco Avenue, Cor.Legaspi Street, Cebu City

    Tel. # (63)(032) 412-1863 / 253-2631

    Fax # (63)(032) 412-1856 / 254-0840

    email: [email protected] / [email protected]

    NEGROS ORIENTAL PROVINCIAL OFFICE

    Provincial Director JAVIER FORTUNATO, JR

    2F Uymatiao Bldg., San Jose Street. Dumaguete City

    Tel. # (63)(035) 422-2764

    Fax # (63)(035) 225-7211

    email: [email protected]

    SIQUIJOR PROVINCIAL OFFICE

    Provincial Director NIMFA M. VIRTUCIO

    Chan She Bldg., Legaspi Street, Poblacion, Siquijor, Siquijor

    Tel. # (63)035-480-9065

    Fax # (63) 035-344-2238

    email: [email protected]

    NATIONAL ECONOMIC RESEARCH AND BUSINESS ASSISTANCE CENTER (NERBAC)

    Center Manager NELIA V.F. NAVARRO

    Lapu-lapu St., cor. Osmena Boulevard, Cebu City

    Tel # (032) 255-6971 / 255-3926

    (032) 412-1944 / 412-1945

    Email: [email protected] / [email protected]

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