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WEF/DC world competitition issues ERNIE B. SANTIAGO SEIPI PHILIPPINES. SEIPI. worldwide outsourcing. 1. Is outsourcing significant in the Philippines? 2. Does your country support offshore outsourcing? 3. What is its economic impact in your country? - PowerPoint PPT Presentation
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WEF/DC
world world competitition competitition
issuesissues
ERNIE B. SANTIAGOSEIPI
PHILIPPINES
SEIPI
worldwideoutsourcing
SEIPI
1. Is outsourcing significant in the Philippines?2. Does your country support offshore outsourcing?3. What is its economic impact in your country?4. How do you think will your country respond to protective measures being taken by US legislative?5. Should WEF support WEF?
THE PHILIPPINE
ECONOMY
a snapshot
SEIPI
Other Mftrs. 11%
Others2%
Garments7%
Electronics3%
Forest Based10%
Agro-Based
49%
Mineral Petroleum
18% 1976
…from coconut chips to microchips
Changing Face Of Exports
Electronics69%
2003
Processed Food2%
Coconut Products
1%
Others18%
Petroleum Products
1%
Mach/ Transport
Eqpt.5%
Garments6%
Electronics 68%
The Philippine Economy
SEIPI
10% of world supply of semiconductor manufacturing services
A Competitive Philippine Electronics Industry
The Philippine Economy
50% world production of 2.5” HDD and 10% world production of 3.5” HDD Who are with us:
- INTEL PHILS. – has largest microprocessor & flash test factory
- TEXAS INSTRUMENTS PHILS - produces 100% of digital signal processors (DSPs) for Nokia cellphones and 80% for Siemens and Ericsson
- TOSHIBA PHILS.- has only 3 plants in the world that manufactures laptops, one of these is in the Philippines
- THREE OF THE LARGEST HDD PRODUCERS ARE IN THE PHILIPPINES: - Hitachi Ltd. (produces 500,000 HDDs a year); - Fujitsu Computer Product Corp. (manufacturer of HDDs for desktops, servers and file storage; magneto-resistive heads; & media disk); - Toshiba Philippines (HDDs, laptops)
SEIPI
Every month, the Philippines produces…
250, 000 LAPTOPS
6 million MAGNETIC HEADS
3 million DSPs
2.5 million HDDs
900, 000 LCDs
700, 000 ODDs
A Competitive Philippine Electronics Industry
The Philippine Economy
SEIPI
THE PHILIPPINES:
an e-services hub
an update
SEIPI
E-SERVICES
1. CONTACT CENTER2. BPO3. SOFTWARE
DEVELOPMENT4. ASSEMBLY AND TEST/ ENGINEERING & DESIGN
SEIPI
Contact Center Industry
As of 1As of 1stst Qtr. 2004: Qtr. 2004:Sites : 60+ call centers60+ call centersTotal Seats : 25,000 – 30,00025,000 – 30,000Total Employees : 35,000 – 40,00035,000 – 40,000Total Revenue : USD 400 – 480 USD 400 – 480 Million Million Projected Growth Rate : 100%100%
Majority of the top call centers have set up operations
over the last two years Convergys, Sykes, Teletech, APAC, ICT, West
Clients handled are Fortune 500 companies
INBOUND
• Inquiries (Products & Promos)
• Help desk / Technical Support (level 2)
• Payment Authorization
• Order Taking & Confirmation
• Complaints Handling
• Concierge Services
• Directory Assistance
OUTBOUND SUPPORT
• Telemarketing
• Telesurvey
• Telecollection
• Sales Verification
• Sales Dispatch
• Reactivation of lapsed accounts
Service Offerings
Contact Center Industry
• Travel and hospitality• Technology• Financial services• Insurance & healthcare• Utilities• Telecom• Retail & Entertainment
Client Industries
Contact Center Industry
PhoneFax
Voice MailE-mail
Click to ChatClick to Call
Other Web Collaboration Tools
Customer Touchpoints
Contact Center Industry
Tremendous growth of call centers due to confluence of factors
Year # of Seats
2000 1,500
2001 3,500
2002 7,500
2003 20,000
Est 2004 40,000
Contact Center Industry
THEBUSINESSPROCESS
OUTSOURCINGINDUSTRY
a snapshot
Business processes outsourced to the Philippines
Finance & Accounting• General accounting & bookkeeping services• Accounts maintenance • Accounts receivable collection • Invoice and accounts payable administration • Claims processing(pre-need industry)• Expense and revenue reporting, sales auditing• Payroll (including overtime tracking)• Asset management/accounting • Financial analysis and auditing • Management advisory services • Inventory control and purchasing • Tax reporting and other financial-related services (financial
leasing, credit cards, factoring and stock brokering)
Business processes outsourced to the Philippines
HRPayroll Processing
Benefits Administration
Compensation Planning
Travel & Expense Management
Expatriate & Relocation Services
HR Data Management
Stock Options Administration
Employee Interface Services
Learning Systems Administration
HR Application Development & Management
Other Business Processes
• Data Entry/Data Processing (eg. policy registration/amendment, scanning, indexing)
• Agent accreditation• Membership enrollment reconciliation• Contract Drafting, review & audit• Inventory Control• Technology Support• Server Management• Litigation support• Scholarly publishing• Content conversion
Business processes outsourced to the Philippines
THESOFTWARE
DEVELOPMENTINDUSTRY
a snapshot
Presence of more than 200 software development firms for the foreign market
Firms intensively working towards CMM certifications (Accenture, RCG IT Manila & Azeus Systems Phils Inc are already CMM/CMMI Level 5 Certified)
Software Development
The 2002 Global New Economy Index of the META Group, a US-based research group, cited the Philippines for the “excellent availability” of skilled IT workers and for their proficiency in mainframes, minicomputers & microcomputers as well as for their technical & business skills for ICT projects.
Software Development
Presence of International Players Accenture, IBM Solutions, Sun Microsystems,
Software Ventures International (SVIC), Canon, NEC, ServiSoft (SPI Technologies), Jupiter Systems, ADTX, CyberJ Resources Inc.,SQL Wizard, Weserv Systems, ITS International, J-SYS Philippines, Inc., Tsukiden Software Philippines Group, Mysis Manila (SSC for banking software applications), Trend Micro
Philippine Trends and Predictions
THE PHILIPPINE
ELECTRONICS INDUSTRY
a snapshot
SEIPI
TOTAL PHILIPPINE EXPORTSTOTAL PHILIPPINE EXPORTS
Source: Bureau of Export Trade Promotion, DTI
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
1995 1996 1997 1998 1999 2000
in US$ M
2001
SEIPI
2002 2003
PHILIPPINE EXPORTSWITHOUT ELECTRONICS
US$11B
PHILIPPINE EXPORTSWITH ELECTRONICS US$32B
US$ 38BUS$ 32B
US$ 29B
US$ 25B
US$ 20B
US$ 17B
US$35B
US$35B
TOP PHILIPPINE EXPORTSTOP PHILIPPINE EXPORTS
Source: BETP/DTISEIPI
% TO TOTALRP EXPORTS
TOP 5 EXPORTS2003
1. ELECTRONICS 68 %
2. Garments 6%
3. Fresh and
Processed Food 3%
4. Machinery and
Transport 3%
5. Metal
Manufactures 1%
DESTINATIONS DESTINATIONS OF ELECTRONICS EXPORTSOF ELECTRONICS EXPORTS
USA 2002-20%2003-14%
EUROPE 2002-22%2003-20% JAPAN
2002-14%2003-16%
ASEAN 2002-17%2003-20%
NIC ASIA 2002-21%2003-23%
Source: Bureau of Export Trade Promotion, DTISEIPI
CHINA 2002-4%2003-7%
EXPORTSEXPORTS OF ELECTRONICS INDUSTRYOF ELECTRONICS INDUSTRY
Source: Bureau of Export Trade Promotion, DTISEIPI
2003 24.60 B 2 % 68% 2004 May 10.30 B 8
% 67%
1992 2.97 B 20 % 28 %
YEAR EXPORTS(in US$)
GROWTH RATE
% TO RP EXPORTS
2001 21.90 B -20 % 68 %
19931994199519961997199819992000
3.78 B 4.89 B 7.55 B10.61 B14.98 B19.87 B25.34 B27.17 B
27 %28 %55 %40 %41 %33 %27 % 7 %
33 %36 %43 %52 %58 %67 %72%71 %
2002 24.26 B 11 % 69 %
Sources: Philippine Board of Investments (BOI) & Philippine Economic Zone Authority (PEZA)SEIPI
INVESTMENTS INVESTMENTS IN THE ELECTRONICS INDUSTRYIN THE ELECTRONICS INDUSTRY
2003 230 M2004 May 300 M
YEAR INVESTMENTS
US$ 40 M 220 M1.290 B2.160 B1.080 B1.470 B 670 M 790 M 1.240 B 720 M
270 M
199219931994199519961997199819992000 2001 2002
TARGETS TARGETS OF THE ELECTRONICS INDUSTRYOF THE ELECTRONICS INDUSTRY
YEAR
20022003
2004
INVESTMENTS(US $)
0.3 B0.3 B
1.0 B
EXPORTS(US$)
24.26 B (11%)24.60 B (2%)
27.00 B (10%)
TARGETS
SEIPI
COMPETITIVENESS COMPETITIVENESS OF THE ELECTRONICS INDUSTRYOF THE ELECTRONICS INDUSTRY
SEIPI
criticalmass ofglobal players
COMPANIES COMPANIES IN THE ELECTRONICS INDUSTRYIN THE ELECTRONICS INDUSTRY
Sources: Philippine Board of Investments (BOI) & Philippine Economic Zone Authority (PEZA)
Malaysia
2%
Others
8%
Europe
7%
Taiwan
4%
Singapore 2% Philippines
28%
Korea
10%Japan
30%
US
9%
SEIPI
NUMBER OF FIRMS
865 FIRMS
NATIONALITY:
72% Foreign28% Filipino
20032003
SEIPI
COMPETITIVENESS COMPETITIVENESS OF THE INDUSTRYOF THE INDUSTRY
people
EMPLOYMENT EMPLOYMENT IN THE ELECTRONICS INDUSTRYIN THE ELECTRONICS INDUSTRY
SEIPISources: Philippine Board of Investments (BOI) &
Philippine Economic Zone Authority (PEZA)
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 ‘00
In thousands
0
50
100
150
200
250
300
350
3861
73 74 8090
120
220
69
42
4441
160
250
280
315
SemiconductorRest of Electronics
307
‘01
335
‘02
346
2003
Engineering Design Competitive Engineering Fundamentals
• University system produces qualified graduates with the necessary basic engineering skills.
• “The Philippines has good basic engineering curriculum” - Fluor Daniel Inc. Phils & JGC Philippines.
• Over 40,000 graduates annually
ENGINEERING and MATH / IT GRADUATES
46,090
38,91940,639 39,586 38,251
44,71846,794
21,338 19,494
25,05527,636
31,14426,888 28,231
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
1995 1996 1997 1998 1999 2000 2001
Stu
dents
Enginering Graduates Math and Information Technology
SEIPI
Availability of Labor Skills• Over 75,000 licensed professionals (1995-2000)• OFWs - Skilled Construction Engineers, Technicians, etc.
– 2nd largest OFW earnings next to Mexico– Easily trainable in new technology – Overseas exposure to big-ticket projects
• H1 2001 DEPLOYMENT: 76% - MIDDLE EAST | 11% - ASIA | 6% - AMERICAS
5% - AFRICA | 1.39% - Australasia | 1.37% - EUROPE
DISCIPLINELicensees
(1995–2000)DISCIPLINE
Licensees (1995–2000)
Architect 9,306 Master Plumber 820
Civil Engineer 17,709 Mechanical Engineer 11,652
Interior Designer 274 Professional 671
Landscape Architect 45 Sanitary Engineer 289
Electrical Engineer 25,759 Geodetic Engineer 1,226
Professional 297 Junior 1,414
Associate 114
TOTAL 75,147Assistant 2,606
Master 2,965
Engineering Design
Competitive Labor Costs - 15%-30% of Salaries in USA, Japan & Singapore
English Proficiency (most widely-used Engineering Design software / technology is English & then French)
TYPICAL SOFTWARE• General Office Automation (Novell, Windows, Oracle, etc.)• Design and Engineering (STAAD, Frameworks, X-Steel, Piping, Mechanical,
Process, Electrical, Instrumentation, Autocad, etc.)• Project Management
– IDOC, BQR, J-DOME, MSR, IVIS, Project Control System, Material Control System, Piping Material Management System, etc.
Technological/Level of expertise of local workers in engineering design
Adherence to internationally accepted engineering standards • Computer-Aided Design & Drafting Skills (CADD) Training• Computer-Integrated Manufacturing/CIM Skills(CNC & NC Machines)• ISO Certification (Milestone: July 2001 =1000 firms certified)
Engineering Design
SEIPI
Fairchild Semiconductors – with 14 design engineers for D & D team
Engineering Design
Design & Development (D & D) Centers in the Philippines
SEIPI
NEC – with 60 design engineers for D & D team Saturn – 15 design engineers for D & D team Texas Instruments – 300-member package development center Lexmark – 200 engineers for its D & D team Intel – 200 development engineers and 70 design engineers
Better Quality Delivery At A Significantly
Reduced Cost
THE PHILIPPINE OUTSOURCING INDUSTRY
VALUE PROPOSITION
ALMOST ALL GLOBAL COMPANIES NOW DO A LOT OF OUTSOURCING ACTIVITIES. FROM COMPONENTS AND TEST ASSEMBLY ACTIVITIES, TO OUTSOURCING OF AFTER-SALES SUPPORT AND OTHER SERVICES LIKE ACCOUNTING, EMPLOYEE SERVICES, ETC.
IT WOULD BE FUTILE TO THINK THAT A U.S. LEGISLATION WOULD BLOCK OUTSOURCING AS IT CREATES PROFITS FOR U.S. COMPANIES.
SEIPI BELIEVES THAT WEF SHOULD SUPPORT OUTSOURCING AS IT FOSTERS A COMPETITIVE ENVIRONMENT IN DRIVING COST DOWN, AS WELL AS IN SPREADING KNOWLEDGE AND WEALTH TO DEVELOPING ECONOMIES
SEIPI
SEIPI
THEINDUSTRYROADMAP
a review
SEIPI
THEINDUSTRYROADMAP
a review
TRANSFORM THE PHILIPPINES INTO A REGIONAL CENTER OF EXCELLENCE
VISION
THE COMPETITIVE LANDSCAPE STUDYTHE COMPETITIVE LANDSCAPE STUDY
IN SELECTED ELECTRONICS INDUSTRY PRODUCTS AND PROCESSES
AND THUS BECOME THE INVESTMENT LOCATION OF CHOICE FOR DOMESTIC AND FOREIGN ORGANIZATIONS
WHO WISH TO DESIGN, MAKE AND SELL THEIR PRODUCTS
SEIPI
1. Improving the Country’s Competitiveness
2. Expanding the Value Chain of the Industry
THE STUDY ADDRESSES 2 KEY AREAS
THE COMPETITIVE LANDSCAPE STUDYTHE COMPETITIVE LANDSCAPE STUDY
SEIPI
2001 2008
EXPORTS US$ 22 B US$ 100 B
EMPLOYMENT 300,000 1,000,000
OBJECTIVES
1 Manufacturing Cost Control
2 Country Image
3 Targeted Sector Development
4 Allied Industry Development
5 MNCs and Domestic Value Chain Expansion
6 Center For Excellence
7 Wafer Fab
SEVEN (7) KEY INITIATIVES
THE COMPETITIVE LANDSCAPE STUDYTHE COMPETITIVE LANDSCAPE STUDY
SEIPI
1 MANUFACTURING
COST CONTROL
how we can reduce the cost of business
THE COMPETITIVE LANDSCAPE STUDYTHE COMPETITIVE LANDSCAPE STUDY
SEIPI
1. POWER COST
2. LABOR COST
3. TAXES
4. INCENTIVES
MANUFACTURING COST CONTROL
SEIPI
MANUFACTURING COST CONTROL
COST LESS ALL MATERIALS OTHER MATERIALS
1. DEPRECIATION 1. SUBSTRATES2. SALARIES & BENEFITS 2. LEADFRAMES3. SPARES 3. GOLDWIRE4. OMC 4. PACK MATERIALS5. POWER 5. MOLD
COMPOUND6. SUPPLIES 6. OTHER OM7. CIC 7. SUBCON ASS.8. OM AND CHIPS FRT
SEIPI
MANUFACTURING COST CONTROL
COST PARETO
16.00
4.00
5.00
11.00
17.00
9.00
38.00
2.78
3.50
4.63
6.07
6.79
6.66
10.99
13.89
44.11
0 10 20 30 40 50 60 70 80 90 100
Subcon Assy
Other OM
Mold Compound
Pack Mat'l
Goldwire
Leadframes
Substrates
Other Clam
OM&Chips Frt
CIC
Supplies
Power
OMC
Spares
Pay&Ben
Depreciation
THE COMPETITIVE LANDSCAPE STUDYTHE COMPETITIVE LANDSCAPE STUDY
2 COUNTRY IMAGE
how we can improve the image of the country
SEIPI
COUNTRY’S IMAGE
1. INFRASTRUCTURE
2. SECURITY
3. EDUCATION
4. PEACE AND ORDER
5. CORRUPTION
6. PROMOTION
SEIPI
THE COMPETITIVE LANDSCAPE STUDYTHE COMPETITIVE LANDSCAPE STUDY
3 TARGETED SECTOR
DEVELOPMENT
what should we do to further push the development of EMS
SEIPI
TARGETED SECTOR DEVELOPMENT
SMSSemiconductorManufacturing Service
EMSElectronicsManufacturing Service
WORLD
PHILIPPINES
US$ 150 B
US$ 16 B
US$ 650 B
US$ 6 B
2001
SEIPI
THE COMPETITIVE LANDSCAPE STUDYTHE COMPETITIVE LANDSCAPE STUDY
4 ALLIED INDUSTRY
DEVELOPMENT
what should we do to develop the allied
and support industry
SEIPI
PACKAGING CHEMICALS MACHINERY
AND EQUIPMENT METAL
STAMPING
METAL
CASTING
MACHINING
TOOLAND DIE
SERVICES
DIRECT MATERIALS/COMPONENTS
ALLIED INDUSTRY DEVELOPMENT
SEIPI
LOCAL MATERIALSARE NOT AVAILABLE
LOCAL MATERIALSARE MORE EXPENSIVE
LOCAL SUPPLIERS DIFFICULT TO FIND
LOCAL MATERIALS DO NOT MEET THE REQUIRED QUALITY STANDARDS
UNREALIABILITYOF LOCAL SUPPLIERS
ALLIED INDUSTRY DEVELOPMENT
INDUSTRY LOCALREQUIREMENTSNOT KNOWNTO MANY
SEIPI
THE COMPETITIVE LANDSCAPE STUDYTHE COMPETITIVE LANDSCAPE STUDY
5 MNCS AND DOMESTIC
VALUE CHAIN
EXPANSION
how can we retain
existing MNCs/Filipino
companies in the Philippines
SEIPI
0
2
4
6
8
10
12
1stQtr
2ndQtr
3rdQtr
4thQtr
HIGHER VALUE ADDED CAPABILITY(R&D, Chip Design, Etc)
1 1052 3 4 6 7 8 9
0
2
4
6
8
10
12
1stQtr
2ndQtr
3rdQtr
4thQtr
1 1051 1052 3 4 6 7 8 9
ASSEMBLY/MANUFACTURING CAPABILITY
(Assembly And Test)
SEIPI
SEIPI
FOUR (4) ENGINEERING FUNCTIONS
1. PRODUCT AND TEST
2. PROCESS
3. EQUIPMENT
4. QA/REL/FA
FOUR (4) LEVELS OF COMPETENCIES
LEVEL 2 – CAN WORK INDEPENDENTLY
LEVEL 3 – CAN TEACH AND LEAD PROBLEM SOLVING LEVEL 4 – CAN CHANGE AND IMPROVE WHAT IS KNOWN
LEVEL 1 – BASIC WORKING KNOWLEDGE
THE COMPETITIVE LANDSCAPE STUDYTHE COMPETITIVE LANDSCAPE STUDY
6 CENTER OF
EXCELLENCE
How do we envision the COE
SEIPI
BS ENGINEERING
TRACK 1Regular BS
TRACK 3BSEng Major in SET- Minor in Product Testing and Circuit Design- Certified by SEIPI
TRACK 2ELECTIVES
TRACK 4 REMEDIAL COURSES
-Statistics as applied in process-Kinematics as applied in mechatronics
-Material behavior as applied optimization, etc.
SEIPI
THE ENGINEERING GRADUATES PROGRAM
BS ENGINEERING: FROM 40K TO 200K
ARCDI - THE CAPACITY BUILDING PROGRAM
COURSES/TRAININGS
- VALUE ADDED
- ASSEMBLY/MANUFACTURING
LABORATORY
- EQUIPMENT, BOOKS, CDS, ETC.
VENUE:
- CONVERGENCE CENTER
SEIPI
SEIPI
THE HIGHER ADVANCED STUDY PROGRAM
2002 2008
MS 80 600
PHD 20 200
THE COMPETITIVE LANDSCAPE STUDYTHE COMPETITIVE LANDSCAPE STUDY
7 WAFER
FABRICATION
What should we do
SEIPI
ASIAN WAFER FAB TRENDS
CHINA - 31
TAIWAN - 28
MALAYSIA - 4
VIETNAM - 2 (Plans)
THAILAND - 1 (On hold)
SEIPI
WAFER FAB
EXPORTS 2001: US$ 22 BILLION
IMPORTS 2001: US$ 15 BILLION
Wafer - US$ 10-12 Billion
FACING THE CHALLENGES AND CHANGES AHEAD
Our industry has always been cyclicalbut in an upward direction.
This has not changed
Therefore, we must continue to do the right
thing to prepare for our future success
Knowing that adversity always transcends
unique opportunities, it is up to us to make
the most of it.SEIPI
SEIPI
some men see things
as they are
and say...why?
i dream things
that never were
and say...why not?
bob kennedy
SEIPI
SEIPI
A
SNAPSHOTOF SEIPI
June 2004
SEIPI
PROFILE OF SEIPI MEMBERSPROFILE OF SEIPI MEMBERS
SEIPI
SMALL, MEDIUM AND LARGE
FILIPINO AND FOREIGN
MANUFACTURERS, SUPPLIERS ANDOTHER ORGANIZATIONS
NUMBER AND SIZE OF SEIPI MEMBERSNUMBER AND SIZE OF SEIPI MEMBERS
SEIPI
92
45
0
20
40
60
80
100
120
140
160
180
93 94 95 96 97 98 99 00 01 02
44 4755
6979 83
107
138
170
192202
200
212
03 04 June
SMALL - 120 (R39/A62/A19)
MEDIUM - 51 (R41/A10)
LARGE - 41 (R24/A17)
212
CLASSIFICATION OF SEIPI MEMBERSCLASSIFICATION OF SEIPI MEMBERS
REGULAR- SEMICONDUCTOR- SEMICONDUCTOR - EDP - EDP- CONSUMER- CONSUMER - TELECOM - TELECOM- OFFICE EQUIPMENT - COMM AND RADAR- OFFICE EQUIPMENT - COMM AND RADAR- CONTROL AND INST. - MEDICAL & INDUSTRIALCONTROL AND INST. - MEDICAL & INDUSTRIAL- AUTOMOTIVE- AUTOMOTIVE - SUPPORT INDUSTRIES - SUPPORT INDUSTRIES
ASSOCIATE- MATERIALS SUPPLIERSMATERIALS SUPPLIERS- EQUIPMENT SUPPLIERS- EQUIPMENT SUPPLIERS- LOGISTICS PROVIDERS- LOGISTICS PROVIDERS- GAS COMPANIESGAS COMPANIES- INDUSTRIAL ESTATESINDUSTRIAL ESTATES- FINANCIAL/INSURANCE SERVICESFINANCIAL/INSURANCE SERVICES- IT/SOFTWARE SERVICESIT/SOFTWARE SERVICES- ENVIRONMENTAL MGT.SERVICESENVIRONMENTAL MGT.SERVICES- CONSTRUCTION FIRMSCONSTRUCTION FIRMS- CERTIFICATION BODIES- CERTIFICATION BODIES
AFFILIATE- ACADEME- ACADEME- CONSULTANTS- CONSULTANTS- ORGANIZATIONS- ORGANIZATIONS
SEIPI
212 MEMBERS
104 REGULARMEMBERS
(50%)89
ASSOCIATEMEMBERS
(42%)
19AFFILIATEMEMBERS
(8%)
NATIONALITIES OF MEMBERSNATIONALITIES OF MEMBERS
SEIPI
88 Foreign(85%)
104 REGULARMEMBERS
16 Filipino(15%)
89 ASSOCIATEMEMBERS
45 Filipino(50%)
44 Foreign(50%)
19 AFFILIATEMEMBERS
1 Foreign (5%)
18 Filipino(95%)
Japanese 45 (21%)American 35 (17%)European 21 (10%) German 10 German 10 SwissSwiss 6 6 DutchDutch 3 3
Swedish 1 Swedish 1 FrenchFrench 1 1
Asian 20 (10%) Singapore 9 Singapore 9
Korean 5 Korean 5 Taiwanese 3 Taiwanese 3 Malaysian 2 Malaysian 2 Thailand 1Thailand 1Others 13 (6%)
212
FILIPINO - 78 (36%)FOREIGN - 134 (64%)
ASSETSASSETS
SEIPI
3.1 3.3 3.2 2.8
4.6
6.2 6.7
16.2
3.6
0
2
4
6
8
10
12
14
16
18
92 93 94 95 96 97 98 99 00
In Million Pesos
01
22.6
20
02
20.219.4
03
Cash OtherAssets
REVENUE VS. EXPENSEREVENUE VS. EXPENSE
5.1
REVENUE
2.7
In Million Pesos
2.7 2.8 2.7
3.64.3
7.1
12.4
0
2
4
6
8
10
12
14
92 93 94 95 96 97 98 99 00 01
14.5
02
19.7
2.7 3.0
4.0 3.7 4.14.7
6.2
12.2
20.5
EXPENSE
03
17.817.0
16
3.6
SEIPI
FINANCIAL STATUSFINANCIAL STATUS
SEIPI
SEIPI ACCOUNTS (AS OF 21 JUNE 2004)
JUN 03 JUN 041. CASA ACCOUNTS - Peso 3,126,251 1,122,778
- US Dollar 57,817 45,3092. PLACEMENTS - US Dollar 210,975 219,241
TOTAL P17,372,220 P15,673,030
ALLOCATION (AS OF 21 JUNE 2004)
1. NWC - 6,326,245 3,906,994 2. SEIPI - _11,045,975 11,680,272
TOTAL P17,372,220 P15,673,030
VISION
OBJECTIVES
STRATEGIES
STRUCTURE
STAFFING
OPERATIONS
SEIPI VOSSSOSEIPI VOSSSO
SEIPI
SEIPI VISIONSEIPI VISION
VISION AND MISSION STATEMENT
TO ENHANCE THE COMPETITIVE ENVIRONMENT
FOR ELECTRONICS BUSINESS,
DRIVING THE PHILIPPINES TOWARDS
GLOBAL LEADERSHIP IN INFORMATION
AND COMMUNICATION TECHNOLOGY
SEIPI
OBJECTIVES AND STRATEGIESOBJECTIVES AND STRATEGIES
GAINS1 GLOBAL COMPETITIVENESS
2 ADVOCACY
3 INFORMATION
4 NETWORKING
5 SERVICES
SEIPI
OBJECTIVES AND STRATEGIESOBJECTIVES AND STRATEGIES
1 GLOBAL COMPETITIVENESS To enhance the global competitiveness of the
industry by improving the technical core competencies of its workforce through the development of learning and capacity building programs
SEIPI
“SEIPI gives members the opportunity to share and learn the
best-known methods/global practices in high-technology
manufacturing” Numerous Global Competitiveness Training Programs, Center of Excellence, ARCDI, CEO Forum
and Learning Sessions, National Technical Symposium, others
OBJECTIVES AND STRATEGIESOBJECTIVES AND STRATEGIES
2 ADVOCACY To advocate policy issues and concerns affecting the industry by taking an active role in public policy leadership and representing its members in various fora, dialogues and meetings with government and other concerned institutions aimed at reducing the cost of business
SEIPI
“SEIPI industry actions ensures that members’ concerns areheard at the highest level of government – a singlemanufacturer’s voice gets louder”
Power and Infrastructure Issues, Labor Policies, Security, Trade Facilitation, Movement of Goods, Finance Related Matters, Environment, others
OBJECTIVES AND STRATEGIESOBJECTIVES AND STRATEGIES
3 INFORMATION To be a definitive source of industry information by providing SEIPI members and the public with relevant and up to date statistics, data, reports and other pertinent materials
SEIPI
“SEIPI serves as members’ one-stop center for information on
the Philippine electronics industry” Market Outlook, Industry Data and Statistics, Competitive Landscape Study, Industry Roadmap,
Publications and Newsletters, Proceedings, others
OBJECTIVES AND STRATEGIESOBJECTIVES AND STRATEGIES
4 NETWORKING To encourage networking and sharing of information among members and establish linkage with other organizations in the Philippines and abroad by organizing and participating in various business and industry meetings, conferences, fellowships and events
SEIPI
“SEIPI provides members with a venue to exchange cards,
Information and initiate new business relationships”
More than 200 Industry Meetings/Activities/Events Per Year Participated In By Over 10,000 People
from the Industry
OBJECTIVES AND STRATEGIESOBJECTIVES AND STRATEGIES
5 SERVICESTo provide relevant corporate support to
members by carrying out various professional business
and consultancy services addressing the needs and other requirements of SEIPI members
SEIPI
OPERATIONAL MANAGEMENT OPERATIONAL MANAGEMENT GROUPGROUP
STRATEGIC DIRECTIONSTRATEGIC DIRECTIONGROUPGROUP
VISION
OBJECTIVES
STRATEGIES
STRUCTURE
STAFFING
OPERATIONS
STRUCTURESTRUCTURE
SEIPI
MEMBERSHIP/NWC TRAINING PROGRAMSINDUSTRY SEMINARSTECHNICAL SYMPOSIUMSTRUCTURESTRUCTURE
SEIPI
ASSOCIATION OF SEMICONDUCTOR AND ASSOCIATION OF SEMICONDUCTOR AND ELECTRONICS FINANCE EXECUTIVESELECTRONICS FINANCE EXECUTIVES
ASSOCIATION OF SEMICONDUCTOR AND ASSOCIATION OF SEMICONDUCTOR AND ELECTRONICS MANUFACTURING ENGINEERSELECTRONICS MANUFACTURING ENGINEERS
OFFICE OF THE OFFICE OF THE EXECUTIVE EXECUTIVE DIRECTORDIRECTOR
OEDOED
TWG/COMMITTEETWG/COMMITTEE
ASSOCIATION OF ENVIRONMENT AND SAFETY ASSOCIATION OF ENVIRONMENT AND SAFETY SEMICONDUCTOR ENGINEERS IN THE PHILIPPINESSEMICONDUCTOR ENGINEERS IN THE PHILIPPINES
ASSOCIATION OF SEIPI PERSONNEL ADMINISTRATORSASSOCIATION OF SEIPI PERSONNEL ADMINISTRATORS
OPERATIONAL MANAGEMENT GROUPOPERATIONAL MANAGEMENT GROUP
NWC NWC
ASSOCIATION OF SEIPI PURCHASING MANAGERSASSOCIATION OF SEIPI PURCHASING MANAGERS
SEIPI TRAFFIC MANAGERS ASSOCIATIONSSEIPI TRAFFIC MANAGERS ASSOCIATIONS
ASSOCIATION OF SEIPI ASSOCIATE MEMBERSASSOCIATION OF SEIPI ASSOCIATE MEMBERS
ASSOCIATION OF SEIPI INFORMATION ASSOCIATION OF SEIPI INFORMATION TECHNOLOGY EXECUTIVES AND PROFESSIONALSTECHNOLOGY EXECUTIVES AND PROFESSIONALS
SEIPI SECURITY COMMITTEESEIPI SECURITY COMMITTEE
INTERNAL AFFAIRSINTERNAL AFFAIRSEXTERNAL AFFAIRSEXTERNAL AFFAIRSCOMMUNICATIONS AND PROMOTIONSCOMMUNICATIONS AND PROMOTIONSNWC COORDINATIONNWC COORDINATIONTWG/COMMITTEE COORDINATIONTWG/COMMITTEE COORDINATIONPUBLIC POLICY LEADERSHIPPUBLIC POLICY LEADERSHIPCORPORATE SERVICESCORPORATE SERVICES
POWERPOWER MEMBERSHIP MEMBERSHIPLABOR LABOR EXHIBITION EXHIBITIONINFRASTRUCTURE SPECIAL PROJECTSINFRASTRUCTURE SPECIAL PROJECTSCOE COE MARCOM MARCOMALLIED/SUPPORT SPORTSALLIED/SUPPORT SPORTS
POWER POWER
BOARD OFBOARD OFTRUSTEESTRUSTEES
SEIPISEIPIOFFICERSOFFICERSPRESIDENTPRESIDENT12 VPs12 VPsSecretarySecretaryTreasurerTreasurer
EXCOM EXCOM
SECIAL PROJECTS SECIAL PROJECTS
ALLIED AND SUPPORT ALLIED AND SUPPORT
MEMBERSHIPMEMBERSHIP
EXHIBITIONEXHIBITION
STRATEGIC DIRECTION GROUPSTRATEGIC DIRECTION GROUP
LABORLABOR
INFRASTRUCTUREINFRASTRUCTURE
MARCOM MARCOM
COECOE
SPORTSSPORTS
STRUCTURESTRUCTURE
SEIPI
Executive Committee
Technical Working Groups/Committees
SEIPI BOARD OF DIRECTORS/ OFFICERSSEIPI BOARD OF DIRECTORS/ OFFICERS1 President
12 Vice Presidents1 Secretary 1 Treasurer
THE STRATEGIC DIRECTION GROUPTHE STRATEGIC DIRECTION GROUP
TWG Allied and Support Industry Development
Membership Committee
Special Projects/Anniv
TWG on Power
TWG on COE
MarCom Committee
TWG on Infrastructure
Sports Committee
Exhibition CommitteeTWG on Labor
STAFFINGSTAFFING
THE STRATEGIC DIRECTION GROUPTHE STRATEGIC DIRECTION GROUP
SEIPI OFFICERS 2004-2005President ARTHUR YOUNGPresident ARTHUR YOUNGVice PresidentsVice Presidents
MELBA CUYAHON MELBA CUYAHON ED FORTUNADO ED FORTUNADO IPPEI FUTAKI IPPEI FUTAKI PETER IREDALEPETER IREDALE MORRY OPPENHEIMMORRY OPPENHEIM MIKE PETRUCCIMIKE PETRUCCI LARRY QUALARRY QUA EYNOLLAH EYNOLLAH
RAHIDEHRAHIDEH ART TAN ART TAN JIM TOBOJKAJIM TOBOJKA BING VIERABING VIERA GLENN GLENN
WESTERMANWESTERMANSecretary ERNIE SANTIAGOSecretary ERNIE SANTIAGOTreasurer DAN LACHICATreasurer DAN LACHICA
TWG/OTHER COMMITTEES 1. POWER - ________2. LABOR - ________3. INFRASTRUCTURE - ________4. COE - ________5. ALLIED & SUPPORT - ________
6. MEMBERSHIP - ________7. EXHIBITION - ________8. SPECIAL PROJECTS - ________9. MARCOM - ________10. SPORTS - ________
EXCOM1. President2. Secretary/Executive
Director3. Treasurer
STRUCTURESTRUCTURE
SEIPI
OFFICE OF THE EXECUTIVE DIRECTOROFFICE OF THE EXECUTIVE DIRECTOR
NETWORKING COMMITTEESNETWORKING COMMITTEES
OEDOED
Internal Affairs
External Affairs
Communications and Promotions
NWC Coordination
TWG Coordination
AESSEP
ASEMEP
ASPA
SETMA
ASEFEX
ASITEP
ASPM
ASAAM
THE OPERATIONS MANAGEMENT GROUPTHE OPERATIONS MANAGEMENT GROUP
TWG/COMMITTEESTWG/COMMITTEES
SSAP
TWG Allied and Support Industry
Membership Committee
Special Projects Committee
TWG on Power Concerns
TWG on Center of Excellence
MarCom Committee
TWG on Labor Concerns
Sports Committee
SEIPI Exhibition Committee
Public Policy Advocacy
Corporate Services
TWG on Infrastructure Concerns
EXECUTIVE DIRECTOR
ERNIE B. SANTIAGO5 Technical StaffJAFFY JURADOMAAN YUANA COSCOLLUELACHRISTINA BAUTISTATRINA NUGUID5 Administrative
Support
STAFFINGSTAFFING
THE OPERATIONS MANAGEMENT GROUPTHE OPERATIONS MANAGEMENT GROUP
OFFICE OF THE EXECUTIVE DIRECTOR (OED)
SEIPI
NWC CHAIRPERSONS1. EDIL MENDOZA (IMI) - AESSEP2. ABE BUENALUZ (APC) - ASEFEX 3. RICO DELMORO (VISHAY) - ASEMEP4. JOBBIT MATA (AMKOR) - ASITEP5. JUN MAYO (IDT) - ASPA 6. JING CONSENGCO (PSI) - ASPM 7. RENE CANTOS (TEMIC) - SETMA8. TING MAGAT (PSI) - SSC 9. JB DIMAYUGA (AUROTECH) - ASAAM
TWG/COMMITTEES CHAIRPERSONS1. ARNEL ABJELINA (INTEL) - TWG ON
INFRASTRUCTURE2. VIC GUMBAN (ANALOG) - TWG ON POWER3. LITO ZULAYBAR (INTEL) - TWG ON COE4. FRED BLANCAS (IMI) - TWG ON MARCOM
OPERATIONSOPERATIONS
SEIPI
GLOBAL COMPETITIVENESS PROGRAMS 2004-2005
1. CENTER OF EXCELLENCE PROGRAM- BS Course/Curriculum - ARCDI- PHD/MS Program
2. LEARNING PROGRAMS - NWC Learning Sessions - CEO Forum - NTS, ESD, Others
3. DEVELOPMENT OF ALLIED AND SUPPORT INDUSTRY PROGRAM - Direct and Indirect
Materials
and Services
4. INFORMATION TECHNOLOGY INITIATIVES PROGRAMS - E-vertical Project - AEDS - Rosettanet Project
5. SCHOLARSHIPS/GRANTS - Inwent, Jetro, Others
OPERATIONSOPERATIONS
SEIPI
ADVOCACY PROGRAMS 2004-2005
1. POWER- Franchise Tax- Inter-Class Cross Subsidies- Excess Power
2. LABOR- Compressed Workweek- Project Based Employment- DL Hiring/OFW
3. INFRASTRUCTURE
4. FINANCE - Tax Credit Claims/ - FS Foreign Currency
5. INCENTIVES
6. TRADE FACILITATION - ASEAN Electronics Forum
7. COUNTRY IMAGE - Security/Hijacking - Promotion
OPERATIONSOPERATIONS
INFORMATION PROGRAMS 2004-2005
1. SEIPI PUBLICATIONS- SEIPI Digest- SEIPI Catalogue, Directory/Others
2. INDUSTRY STATISTICS/INFORMATION- Exports, Imports, Investments- Business and Market Outlook- Trade Opportunity Reports
3. SEIPI WEBSITE
4. SEIPI LIBRARY
5. MEDIA RELATIONS
6. INDUSTRY PRESENTATIONS/BRIEFINGS- IMF/WB, Analyst/Research Institutions, Government, Foreign Investors/Missions, Academe, Industry Organizations, MediaSEIPI
OPERATIONSOPERATIONS
NETWORKING PROGRAMS 2004-2005
1. GENERAL MEMBERSHIP MEETINGS- 4 times (July, October, January and April)
2. SEIPI BOARD MEETINGS- At least 5 (Sep, Dec, Feb, May and Jun)
3. SEIPI EXCOM – In between Board Meetings
4. NWC MONTHLY MEETINGS - 9 x 12 months
5. NWC MANCOM - Semestral (Sep, Mar)
6. TWG / COMMITTEE MEETINGS - As needed
7. SPORTS FELLOWSHIPS
8. SEIPI INDUSTRY LINKAGES- Local and Foreign Organizations, WEF
9. CORPORATE SOCIAL RESPONSIBILITY - Children’s Hour, Habitat, othersSEIPI
OPERATIONSOPERATIONS
SERVICES PROGRAMS 2004-2005
1. FINANCE AND ADMINISTRATIVE MANAGEMENT- Finance and Administration
2. BUSINESS CENTER- Training Facilities- Product Showcase- Meeting Rooms
3. OTHER SERVICES- Consultancy on Government Laws and Policies, Business Meetings with Government, Arbitration- Individual Member’s Concerns (Certifications,
Endorsements, Visas, Pioneer Status, Other Issues and Concerns)
SEIPI
VISIONOBJECTIVESSTRATEGIESSTRUCTURESTAFFINGOPERATIONS
GENERAL MEMBERSHIP
STRATEGICDIRECTION GROUP(SEIPI BOARDOF TRUSTEES)
OPERATIONALMANAGEMENT GROUP(OFFICE OF THE EXEC. DIRECTOR)
NWC1. AESSEP (EHS/FACILITIES )2. ASEFEX (FINANCE)3. ASEMEP (MANUFACTURING)4. ASITEP (IT)5. ASPA (PERSONNEL)6. ASPM (PURCHASING)7. SETMA (TRAFFIC)8. ASAAM (ASSOCIATE/AFF)9. SSC (SECURITY)
SEIPI COMMITTEES/TWGS1. MEMBERSHIP2. INFRASTRUCTURE3. TRADE FACILITATION4. COE5. MARKETING/COMM6. SPORTS
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SEIPI
GLOBAL COMPETITIVENESS-TRAININGS-COE-STUDIES
ADVOCACY-GOVERNMENT ISSUES AND CONCERNS
INFORMATION-INDUSTRY STATISTICS/DATA-PUBLICATIONS
NETWORKING-GMM -NWC-SPORTS-SPECIAL MEETINGS
SERVICES-A TO Z OF SERVICESSEIPI
VISIONOBJECTIVESSTRATEGIESSTRUCTURESTAFFINGOPERATIONS
GENERAL MEMBERSHIP
STRATEGICDIRECTION GROUP(SEIPI BOARDOF TRUSTEES)
OPERATIONALMANAGEMENT GROUP(OFFICE OF THE EXEC. DIRECTOR)
NWC1. AESSEP EHS/FAC2. ASEFEX FINANCE 3. ASEMEP MANUF)4. ASITEP IT5. ASPA PERSONNEL6. ASPM PURCHASING7. SETMA TRAFFIC8. ASAAM ASSOC/AFF9. SSC SECURITY
SEIPI COMMITTEES/TWGS1. MEMBERSHIP2. SPORTS3. INFRASTRUCTURE4. TRADE FACILITATION5. COE6. MARCOM
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SEIPI
GLOBAL COMPETITIVENESS
-TRAININGS-COE-STUDIES
ADVOCACY
-GOVERNMENT ISSUES AND CONCERNS
INFORMATION
-INDUSTRY STATISTICS AND DATA- PUBLICATIONS
NETWORKING-GMM -NWC -SPORTS-SPECIAL MEETINGS
SERVICES
-A TO Z OF SERVICES
SEIPI’s RECENT MILESTONES
•Over 100 Training Modules•Advocacy On Power, Infra, AMLA, Minimum Wage, DO 40-03, Foreign Currency F/S Reporting, Anti-hijacking, Others•Over P1B VAT Refund•Completed Industry Study•Launched COE Project•Rolled Out AEDS•Organized PSEE, NTS, Other Symposia And Conferences•Established Linkage With Foreign Industry Orgs.
•Implemented Over 100 Events
Participated In By Over
20,000 SEIPI People
SEIPI
IN SUMMARY…IN SUMMARY…1. SEIPI PROVIDES MEMBERS WITH
EXCELLENT NETWORKING OPPORTUNITIES - SEIPI activities provide a venue to exchange cards, information, and initiate new business relationships
4. SEIPI INDUSTRY ACTIONS ENSURES THAT MEMBERS’ CONCERNS ARE HEARD AT THE HIGHEST LEVEL OF GOVERNMENT – A single manufacturer’s voice gets louder.
3. SEIPI GIVES MEMBERS THE EDGE IN DOING ELECTRONICS BUSINESS, and affords them THE OPPORTUNITY TO SHARE AND LEARN the best-known methods/global practices in high-tech manufacturing
2. SEIPI SERVES AS MEMBERS’ ONE-STOP CENTER FOR INFORMATION on the Philippine electronics industry
SEIPI
SEIPI
Philippines: At a glance
• Land Area: 300.000 km2
• Population: 80,429,492 (of which 83.76% belongs to 0-44 age groups)
• Capital City: Metro Manila
• Political Structure: Democratic (Presidential System)
• National Language: Filipino
• Official Language: English
• Religion: 93% Christian Believers of which 83% are Catholic
SEIPI
The Philippine Economy
Regional Hub for Logistics (Fedex, UPS, Lufthansa Technik)
Good Access to the important 550 Million People ASEAN Market
Reachable within 4 hours by plane from Asian key cities• Japan• Korea• China• Singapore• Taiwan• Thailand• Indonesia
CITY Flight Hours CITY Flight Hours
Frankfurt 1300 Tokyo 0335
Paris 1640 Seoul 0400
Brussels 1416 Shanghai 0220
London 1400 Singapore 0300
Strategically Located in Asia
The Philippine Economy
Macroeconomic Performance
• GNP exceeded the government’s forecast
• GDP accelerated in 2003 despite numerous threats
Source: NEDA
The Philippine Economy
3.317.95.1NFIA
6.44.74.4GDP
6.25.64.5GNP
Q1200420032002
Growth Rates (%)
-0.5
3.64.2 3.7
5.2
0.1
6.25.6
4.63.33.9
3.2
6.4
4.7
-101234567
1998 1999 2000 2001 2002 2003 Q12004GNP GDPSEIPI
Aggregate Supply
The Philippine Economy
Growth Rates (%)
2002 2003 Q12004
Agri, Fishery, Forestry 3.3 3.8 7.7
Industry 3.7 3.8 5.5
Services 5.4 5.8 6.4
Transport., Comm., Storage 8.9 8.6 9.3
Trade 5.8 5.7 6.9
Finance 3.4 7.1 6.9
O. Dwellings & Real Estate 1.7 4.0 3.6
Private Services 5.5 5.1 6.6
Government Services 4.7 2.9 2.6
Source: NEDA
Average Job Generation*
1998-2000
2001-2003
(in thousands)
Total 326 1,058
Agriculture (94) 341
Industry (53) 128
Services 473 591
Source of basic data: Labor Force Survey (NSO)
*Net of losses
• Job creation was boosted across all major sectors
The Philippine Economy
SEIPI
Considerations: Considerations: QUALITY, COST COMPETITIVENESS AND AVAILABILITY QUALITY, COST COMPETITIVENESS AND AVAILABILITY (0=best; 10=worst)
Source: Survey by the Political & Economic Risk Consultancy Ltd.
RATINGRATING OF PHILIPPINE LABOR OF PHILIPPINE LABOR
India 2.00PhilippinesPhilippines 2.632.63China 3.46Australia 3.90Japan 4.55Taiwan 4.27Vietnam 4.67South Korea 4.72Malaysia 4.83Singapore 5.04Thailand 5.08Hong Kong 5.10Indonesia 5.85
COUNTRY RATING
SEIPI
Source: Watson Wyatt in Asiaweek
Salary Per Month (US$)Mfg Factory/ Software Prod
Country CEO Director Plant Developer SupvMgr
Japan 18,300 12,045 7,992 4,708 3,485Hong Kong 15,975 10,150 7,044 3,774 2,567Taiwan 13,638 6,986 6,036 2,058 2,253Singapore 11,131 6,740 4,639 2,792 1,847S. Korea 9,800 4,551 3,483 2,119 1,922Malaysia 7,127 4,364 2,033 864 728Philippines 5,916 2,368 1,623 547 449Thailand 5,075 2,772 1,931 927 618Indonesia 3,567 2,181 915 533 315China 2,865 1,866 1,399 746 589India 1,764 937 724 490 384
COST COMPETITIVENESS OF LABORCOST COMPETITIVENESS OF LABOR
SEIPI