KALAMPUSAN 2nd Semester 2012

DTI CENTRAL VISAYAS PERFORMANCE MAGAZINE

2ND SEMESTER 2012

INSIDE

A MIND FOR ACHIEVEMENT
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SANDUGO TRADE EXPO 2012

REAPING THE 6 GAINS OF ECONOMIC DEVELOPMENT: MARIBOJOC’S LRED JOURNEY ACCESS TO FINANCE FOR MSMES NEWS BITES BLESSINGS FROM THE RIVER: AN ECONOMIC JOURNEY TOURISM LINCS

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PERFORMANCE REVIEW
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A CASE STUDY 24 ON THE BOHOL MSMED COUNCIL

True to its dynamic spirit, the Department of Trade and Industry (DTI) Central Visayas kept busy with several activities. Two events highlighted in the second semester were the first MSME Development Councils National Conference in the Philippines and the Private Sector Promotion Program (SMEDSEP) closing activity. DTI and the Deutsche Gesellschaft für International Zusammenarbeit (GIZ) partnered for the success of these momentous occasions.

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JULY TO DECEMBER PERFORMANCE REVIEW

The MSME conference preceded the PSP SMEDSEP Closing activity which gave special recognition to the DTI and GIZ partnership in the implementation of the highly successful MSME Development Program in the Philippines. Visayas industry clusters saw an interesting second semester with the conduct of a series of strategic planning workshops under the National Industry Cluster Capacity Enhancement Project (NICCEP).. From the vibrant provinces of the Visayas region, four clusters were able to thresh out issues and problems and found workable solutions to the ICT, Tourism, Gifts, Decors, & Housewares, Health & Wellness Industries. DTI continued to work out projects along with the private sector to achieve economic growth and industrial development in Central Visayas. Other major activities during the second semester of 2012 include Tour-

Sandugo Trade Expo 2012 secretariat with DTI 7 regional director Asteria Caberte, Bohol Governor Edgardo Migriño Chatto and his first lady Pureza VelosoChatto .

ism Value Chain Trainings, LRED Learning Sessions and Speed Matching. As of 1st semester 2012, Subcontracting Partners for Innovation Program (SPIN) has generated 40,829 jobs in the Philippines and provided 1,206 MSMEs with orders for woven products amounting to more than 352.41 million pesos between 2008 to 1st semester 2012. In Central Visayas, SPIN has trained 35,109 world-class weavers and generated purchase orders amounting to 285.59 Million Pesos in the same period. More exporters in Cebu and other regions are now tapping countryside residents from all over the country to supply their subcontracting needs under the SPIN program. Success factors in the DTI implementation of its programs are effective interventions, conver-

gence approach and the capacity of DTI as the lead agency to synergize the different efforts of various agencies to assist MSMEs. The convergence of government agencies and private organizations in providing the services required by the entrepreneurs has motivated MSME beneficiaries and stimulated local economic activities geared towards sustaining the anti-poverty thrust of the government. The Department of Trade and Industry (DTI) 7, through programs such as LRED and OTOP Philippines, has provided the necessary support for the LGUs and the private sector. With its advocacy of entrepreneurship and unceasing consultations with Local Government Units, DTI is finding workable solutions to assure growth and development in the region.

“ Reducing poverty in Central Visayas is possible and doable. ”

—- DTI 7

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Sandugo Trade Expo 2012

TRADE EXPO UNROLLS GREEN PRODUCTS AND TECHNOLOGIES

Carrying the theme “Greening Products, Winning Markets”, the Sandugo Trade Expo showcased innovative creations from micro, small and medium enterprises (MSMEs) in Central Visayas and surrounding provinces. The trade expo on July 25 to 29 featured more than 80 exhibitors at the Block of Island City Mall in Tagbilaran City, including those under the One Town, One Product (OTOP) Philippines that make use of indigenous raw materials. Products sold in this year’s trade expo included processed food, fashion accessories, gifts, decors and housewares, as well as tourism products and services. Major highlights of the trade event were the special settings which featured three different perspectives – Green Technologies for Tourism, the Raffia Country Branding Program of DOST and a Showcase of Crafts and Processed Food in Central Visayas. Last July 26 and 27, side activities such as the Green Forum and MSME Caravan were conducted. During the trade fair opening,

Department of Trade and Industry (DTI) Central Visayas regional director Asteria Caberte said that the focus of this year’s trade exhibition is on the tourism industry as a possible market for local producers and manufacturers.

economy. Caberte said the DTI, in partnership with the German Technical Agency GIZ, has developed an MSME development strategy to strongly push for the creation of green products. She emphasized that there is a market outside and inside the country for businesses going the green production lane citing Europe as one profitable market. Caberte revealed that adopting green initiatives in production is already a requirement for some buyers. “The huge global demand for green products is brought about by the awareness of many consumers on the deleterious effects of climate change and pollution”. The Philippine government is currently encouraging economic growth with an emphasis on environmental and social concerns. Green growth in the Philippines is considered important because risks to development are rising as growth continues to erode natural capital. Adopting green growth is a worthwhile venture for the Philippines because this enhances opportunities for everyone most especially the poor to participate more fully in society and thus improving their quality of life.

“Adopting green growth is a worthwhile venture for the Philippines because this enhances opportunities for everyone”

Buyers choose various world class products at the Sandugo Trade Expo 2012

Caberte explained that the DTI would like to influence the tourism industry players to make use of local products so as to help not only the environment but also fellow Filipinos with the jobs that are created. Aside from tapping the tourism market, the DTI is also encouraging MSMEs to develop green products for the growing green

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1st MSME Development Councils National Conference

DTI & GIZ HOLD NATIONAL CONFERENCE FOR MSME COUNCILS IN THE PHILIPPINES
The Bureau of Micro, Small and Medium Enterprise Development (BMSMED) of the Department of Trade and Industry (DTI) and the Deutsche Gesellschaft für International Zusammenarbeit Private Sector Promotion Program (GIZ PSP) jointly organized the first MSME Development Councils National Conference. The National Conference was held on July 19 and 20, 2012 at the Marco Polo Hotel, Cebu City. Around 150 representatives of the National and Provincial MSMED Councils participated in the activity, as well as officials from the DTI Head Office and 86 provinces nationwide, Secretariat Heads and the GIZ. The MSMEDC National Conference sought to create greater awareness, commitment and action to the administration’s ‘Big Push’ policy for MSME development; present the highlights of the DTI and GIZ PSP Program and its contribution to MSME development; clarify the functional mandates of the Provincial MSMED Councils (PSMEDCs); share and learn from good practices and exemplar initiatives; create and reinforce networks toward mutually beneficial partnerships. Activities lined up for the conference included a presentation of good practices such as the use of the GIZ Capacity WORKS management model and those that exemplify the delivery of the MSMEDC functions, namely: policy formulation, program advocacy, program coordination and integration. There was also a showcase of value chain and local regional economic development (LRED) approaches adapted in the implementation of the MSME Development Plan. Exemplary initiatives of MSMEs on development global themes that include gender, climate change, migration and corporate social responsibility were tackled. Provincial MSMED Councils policy, program, activity and projects (PPAPs) proposed by Provincial MSMED Councils (PSMEDCs) that need to be elevated for approval of national government agency were endorsed by the National MSMEDC to the concerned offices. Knowledge products such as collaterals on the PPAPs that were introduced and implemented by the Provincial MSMED Councils were placed on exhibit as a side event during the Conference. Members of the MSMED Council are the following: Department of Trade and Industry, Department of Agriculture, Department of Interior and Local Government, Department of Science and Technology, Department of Tourism, Small Business Corporation, private sector representatives including MSME sector in Luzon, Visayas and Mindanao, banking sector and labor sector.

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Reaping the Gains of Economic Development
Maribojoc’s LRED Journey
By VIERNA TERESA CHIU-LIGAN DTI-BOHOL ___________________________

A sleepy li le town with less than P6.0M local revenues (2007), Maribojoc rises to where it is today- a vibrant economy with transparent governance, well-balanced governmentprivate sector partnership, and a real business-friendly atmosphere.
This is the observation of Mrs. Julieta Chiu, better known to Maribojocanons as Nang Yolie, a local retail store owner.

ficer to another just to have their signatures affixed on my application. And then I also had to wait for a PhilHealth representative to have his or her signature affixed on my application before it gets approved,” Nang Yolie remembers.

procedures of the LGU, the central issue affecting her and other businessmen in her town. Through the Local Regional Economic Development (LRED) project, quick wins were identified and pursued- (1) processing of business licenses and permits has been simplified, 2) community-based waste management system is already operational, (3) investment promotion and tourism marketing program is currently being undertaken and tourist destinations have been developed/ improved, (4) marketdriven product enhancement of handicrafts is also being pursued, (5) capacity building program for entrepreneurs is ongoing, and (6) family agri/aqua culture production is currently being undertaken.

Second, the level of commitment from stakeholders could not as yet be determined due to the new leadership of the LGU.

About 5 years ago in 2007, it was business unusual in Maribojoc. Communities and the business sector had little to say about the town's economic gains. There were few businesses, commercial establishments were just a handful. Market day was just an ordinary day- only few vendors can be found inside the town's public market, and even worse, business licensing was a very tedious process.

Nang Yolie's experience saddened her beFEATURE cause processing of her busiSTORY ness permit took so much of her time. This experience has left her looking for solutions. The next thing she knew was that she participated in an action planning workshop conducted by DTI (Department of Trade and Industry) and German Technical Agency GIZ (formerly GTZ, DED and InWent).

But things turned out smoothly for Maribojocanons. With the energy and dynamism of the LGU in pushing for development, Maribojoc has come to life again.

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 for economic growth and employment generation.

"Years ago, it was not so easy to transact business at the municipal hall. I could never forget the times when I had to wait for one long day to have my business permit issued. I had to march from one of-

The workshop brought together government and private sector representatives to identify issues affecting the economic development of the municipality. During the activity, Nang Yolie was one of those who pushed for the simplification of the business licensing

But Maribojoc's journey through LRED also had its challenges. First, since it was the first time that government and private sector joined together in planning, most of the stakeholders were apprehensive of the approach, after all, bottomto-top level planning was entirely new to them.

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Now, after four years, Nang Yolie is very happy to see more businesses in her town. Economic activity has returned, tourism has flourished and above all, getting a business permit takes only 38 minutes!

enue collection has increased by as much as 200%", shares Mayor Evasco, in his opening message during the Compass workshop last September 2011.

helpful in making Maribojoc a real businessfriendly municipality", says Engr. Ma. Nenita Chiu, Municipal Planning and Development Coordinator and chair of the local LRED Technical Working Group.

“I am so blessed to have participated in the LRED workshop conducted by DTI and GIZ. That was the first time that I was invited to participate in a planning workshop. I was so surprised that the LGU has listened to my voice, and I am so happy that I joined. I also thank DTI and GIZ for helping Maribojoc.” Nang Yolie proudly said.

But the gains do not just end here. Indeed, LRED has done a lot for this once sleepy town. Today, Maribojoc is one of Bohol's leading destinations for LGUs that benchmark on governance and administration. The complete involvement and cooperation of all stakeholders in planning and putting into action the different activities of the LGU is the guiding force behind its success in governance. But amidst all these things, the question still looms. Will Maribojoc be able to maintain its image as an SME-friendly LGU? Mayor Evasco, in his opening message to local stakeholders in its January convocation program that called for renewal of commitment for Maribojoc, thus said, “Let us start the year with very good vibes among ourselves and work collectively for the good of our people notwithstanding our political affiliations. I am open to working with everyone who is willing to work for the betterment of the people of Maribojoc.”

Accordingly for the LGU, the simplification of its licensing procedures has become the driving factor that brought significant changes to its system. The strengthened collaboration with the Bohol Provincial Government also helped the LGU improve its revenue generation activities. The introduction of eTRACS (Enhanced Tax Revenue Assessment and Collection System) of the LGDP (Local Governance Development Program) thru the AusAid (Australian Agency for International Development) also boosted the LGU's revenue collection efforts.

For two consecutive years now, Maribojoc was awarded the Seal of Good Housekeeping by the DILG (Department of Interior and Local Government), an award given to LGUs with exemplary performance in the areas of legislation, development planning, revenue generation, resource allocation and utilization, customer service- civil application, human resource management and development, participation, transparency and financial accountability. Subsequently in December 2011, Maribojoc also won the 2011 Galing Pook Award for sound leadership, given by the Galing Pook Foundation.

Vierna interviews Julieta

And surely, the collaborative and complementary efforts of government and private sectors, has pushed Maribojoc to where it is today.

And for Nang Yolie, she feels so happy and blessed because things are working well for her and her business, and she got an LGU that listens to her concerns.

"Our greatest achievement so far is the simplification of our business licensing procedures. Our total local rev-

"LRED has been very

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DTI WARNS RETAILERS AND DISTRIBUTORS SELLING SUBSTANDARD MOTORCYCLE HELMETS

The Department of Trade and Industry (DTI) directs retailers and distributors selling motorcycle helmets to get their supply of these items from manufacturers and importers that have been given by the DTI the Philippine Standard (PS) license and/or Import Commodity Clearance (ICC) Certificate. Under DTI Department Administrative Order (DAO) Number 02, Series of 2007, any retailer

and/or distributor caught selling motorcycle helmets without PS or ICC mark will be punished with a fine of not more than Php 150,000.00. Under Republic Act 10054 or Motorcycle Helmet Act, anyone caught tampering, altering, forging and imitating the PS mark and the ICC mark on a helmet will be punished with a fine of not more than Php 20,000.00.

Inspec&on and s&ckering of helmets in Cebu above and in Negros Oriental below.

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ACCESS TO FINANCE FOR MSMES
Based on the 2011-2016 MSME Development Plan of the Philippines
n almost every country, MSMEs dominate the business sector in terms of number of establishments. Often dubbed as the backbone of the economy or the linchpin of economic development, the MSME sector is critical for investment and economic growth, job creation, local taxation, productivity enhancement, and technological innovation. It is for this reason that countries and international organizations are implementing programs to promote MSME development. In the Philippines, the MSME sector is seen as a critical driver for the country’s economic growth. The MSME sector is also the entry point for local entrepreneurs to build new businesses some of which grow into large businesses that create wealth and employment. At present, the performance of MSMEs has remained constrained by various factors that prevent them from realizing their potentials and surviving and growing in a highly competitive environment. These include high cost of doing business, lack of access to finance and market information, and low productivity and competitiveness. While the poor business conditions have affected the performance and competitiveness of all enterprises, the impact is perceived to be more difficult for MSMEs given their relathe low productivity of MSMEs due to lack of access to new technology, weak technological capabilities, and failure to engage in innovation and research and development activities. Access to finance is one of the most critical factors affecting the competitiveness of MSMEs. Many are unable to qualify for bank loans because they lack the necessary track record and collateral. The lack of credit information also deters banks from lending to MSMEs as it is more difficult to determine their creditworthiness. MSMEs do not have financial expertise to manage a healthy cash flow. This in turn affects their ability to secure potential lenders and investors. With their limited management and financial capabilities, MSMEs have remained domestic oriented rather than take the risks of focusing on export markets. MSMEs also lack the capacity for financial management. There are no funds available for start-up MSMEs in several regions. And these MSMEs do not have access to venture capital funds.

The A2F portfolio team is headed by the SB Corporation and comprised by government and private financial institutions as well as a number of development partners

There is difficulty in restructuring loans. Moreover, MSMEs have limited access to information regarding the sources of funds and how to access these. It is within this context that the 2011-2016 MSME Development Plan addresses the critical constraints to the growth and development of the MSME sector. To develop a vibrant MSME sector, the Plan envisions implementing measures to create an enabling business environment and provide government support not only to improve MSME access to finance and expand market access but also to strengthen MSME productivity and competitiveness and their linkage with large enterprises and value chain networks.

tively small size and limited resources. Many MSMEs are unable to qualify for bank loans because they lack the necessary track record and collateral. The lack of credit information also deters banks from lending to MSMEs as it is more difficult to determine their creditworthiness. With their limited management and financial capabilities, many MSMEs have remained domestic oriented rather than take the risks of focusing on export markets. Another key concern is

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

veniently and readily access. The MSMED Plan for 2010 to 2016 was prepared following a multi-step process of stakeholder consultations around the country. Regional consultation workshops were first conducted in 11 regions that collectively host 54% of total Philippine MSMEs. These workshops were attended by representatives from the MSME sector, business support organizations, national government agencies, LGUs, the academe, civil society and international development institutions that could provide regional and provincial level perspectives. The implementation of MSME Development Plan for 2011 to 2016 is clustered around the four outcome portfolios identified by stakeholders. Stakeholders defined the four portfolios during the consultation process for the MSME Development Plan for 2011 to 2016 as follows: 1. Business (BE) Environment 4. Productivity and Efficiency (P&E) Productivity and Efficiency refers to the production and delivery of competitive, standards-compliant, socially-responsible, and environmentfriendly products and services that generate optimum economic returns. The plan also takes into consideration global themes and cross-cutting issues related to gender, climate change, corporate social responsibility, and migration. The A2F portfolio is made up of eight results statements describing a level of access to financing to realize the Plan’s goals. These are: 1. The financial products, services 3. Access to Markets (A2M) Access to Markets is the sustained ability of MSMEs to be competitive in selling their products and services to existing and new markets, both domestic and international, under a climate of fair, free, sociallyresponsible and environment-friendly trade practices.

and support programs that MSMEs need are sustainably available and accessible even for start-up MSMEs and those in the countryside. 2. The cost of obtaining MSME loans is reasonable and affordable. 3. The requirements that MSMEs need to comply with to obtain loans are reasonable and manageable. 4. The process that MSMEs need to follow and documents that must be submitted to obtain loans are simplified and streamlined. 5. MSMEs are trained in financial management and are able to understand and speak the language of financial institutions, while financial institutions are trained to understand and speak the language of MSMEs. 6. Financial products and services for MSME lending are genderresponsive and environmentfriendly. 7. The information needed by MSMEs to access financial resources is available and easily accessible. 8. The assistance extended by stakeholders to MSMEs in accessing funds is coordinated, responsive, and effective.

Business Environment is a dynamic practice and culture of governance that fosters the establishment, development, sustainability, and competitiveness of socially responsible and environment -friendly MSMEs. 2. Access to Finance (A2F) Access to Finance is the sustained availability of reasonably priced, socially responsible, and environment-friendly financial products, services, and support programs that are designed for MSMEs, and that MSMEs can con-

The A2F portfolio team headed by the SB Corporation and comprised by government and private financial institutions as well as a number of development partners focused its effort on increasing the amount of funds available for MSME financing and on encouraging and building the capacities of MSMEs to access these funds.

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

MSME financing initiatives were undertaken to make funds readily available to the sector. Among these initiatives were the Microfinance Programs, the SME Unified Lending Opportunities for National Growth (SULONG) Program which attempted to address some of the key issues in MSME financing such as: standardization of loan requirements; use of uniform and competitive rates; timeliness of action on loan request; increased outreach to private development partners; and information dissemination of program to beneficiaries. There is also the Mandatory Allocation of Credit Resources to MSMEs. Pursuant to the provisions of RA 6977: Magna Carta for MSMEs (as amended by RA 8289 and RA 9501), all lending institutions shall set aside at least 8% for micro and small enterprises and at least 2% for medium enterprises of their total loan portfolio and make it available for MSME credit. There is also the Barangay Micro Business Enterprises (BMBE) Act of 2002 and the Agri-Agra Reform Credit Act of 2010. The DTI-BMSMED, being the Secretariat to the National MSMED Council serves as the M&E and KM hub for MSME development in the Philippines. 1. As the M&E hub, DTI-BMSMED will consolidate reports with help from the provincial and regional M&E focal persons in DTI and other NGAs. The M&E

framework that will be maintained by DTI-BMSMED will, however, focus on results. Reports on outputs will be maintained at the subnational level where it will be more relevant. The M&E reports that the M&E hub will generate will be made available online and will also be disseminated to stakeholders. 2. As the KM hub, DTI-BMSMED will develop a KM strategy to collect, process, and disseminate relevant knowledge to MSME stakeholders to ensure an effective and efficient information flow. The information managed by the KM hub will be arranged around the four outcome portfolios. 3. To ensure the initiative’s sustainability, the M&E and KM functions of DTI-BMSMED and the other focal persons who will form part of the M&E and KM activity whether from DTI, other NGAs, or from Regional and Provincial MSMED Councils, will be provided adequate budget and will form part of the regular budgeted functions of the DTI-BMSMED and the NGAs. The key deliverables of these agencies will also include these M&E and KM functions. The MSME Development Plan 2011 to 2016 is meant to respond to the needs of our MSMEs to move forward, to prosper into viable ventures that will employ more Filipinos and help MSMEs become viable partners in promoting inclusive and sustainable growth across the Philippines.

Nothing stops the man who desires to achieve. Every obstacle is simply a course to develop his achievement muscle. — Thomas Carlyle

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NEWS BITES

PGS CASCADING IN CENTRAL VISAYAS
Members of the Regional Expanded Management Committee of DTI Central Visayas participated in the Performance Governance System (PGS) workshop held on August 13, at Harold’s Hotel in Cebu City. This one-day workshop was facilitated by OOP Director Mary Jean T. Pacheco, Participants to the workshop, in turn, are expected to cascade their knowledge on the PGS framework to the rest of the regional employees. The PGS is based on a Balanced Scorecard (BSC) methodology, a management reform and evaluation tool developed at Business the Harvard School.

The BSC scheme transforms organizational strategies into concrete and quantifiable outcomes by aligning its operational activities with its objectives and strategies.

OOP director Jean Pacheco with RD Asteria Caberte and PD Nannette Arbon during the PGS Cascading

NICCEP
Strategic planning workshops were conducted for tourism, Health and Wellness, Gifts, Decors, Houseware and ICT at Quest Hotel in Cebu. This is in relation to the National Industry Cluster Capacity Enhancement Project (NICCEP). In recent years, this strategy has been a common platform adopted by the Department of Trade and Industry for its export and SME development. In-

STRATEGIC PLANNING WORKSHOPS
dustry clustering being a value chain based approach proved to be effectively contributing to product competitiveness of SMEs as they focus on market-driven production. Clustering creates a platform for convergence and collaboration of both the government and the private sector who are part of the network of business development service providers as well as the SMEs in the value chain. Given this mechanism, it can also motivate the LGUs to align their direction to the national thrusts –providing the framework for the PublicPrivate Partnership. Where the stakeholders in the priority industries are clustered towards a common vision, it will facilitate the rationalization of the country’s development and resource management plans .

NICCEP participants draft strategic plans for their sector.

FOOD MANUFAC TURERS AND HANDLERS IN CARCAR U NDERGO FOOD SAFETY TRAINING
The Department of Trade and Industry in cooperation with the Department of Science and Technology and the local government of Carcar City conducted a Food Safety and Good Manufacturing Practices (GMP) Training to 40 participants on August 23 to 24, 2012 at the conference room of Carcar City Hall. The two-day Food Safety Training was participated in by micro and small enterprises which produce the city’s famous food products like lechon, chicharon, and ampao. The activity was meant to support the growing food sector of Carcar City and to ensure that food safety standards are instilled and practiced by food producers and processors of the city, thereby making them more competitive and tourist-friendly. The training included topics on proper handwashing, food hazards, how to prevent crosscontamination, essentials of personal hygiene, food preparation, and pest control measures.
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Carcar City Mayor Nicepuro Apura gives an inspirational message to participants

KALAMPUSAN 2nd Semester 2012

NEWS BITES

SHARING AND LEARNING SESSIONS ON LRED WITH CEBU LGUS AND NGAS
Members of the Local and Regional Economic Development (LRED) Technical Working Groups from Local Government Units ( LGUs) and NonGovernment Associations (NGAs) in Cebu participated in a Sharing and Learning Session held in September this year. The session was meant for participants to learn best practices from among themselves 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 economy of a locality and increase 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.

TOURISM VALUE CHAIN TRAININGS IN REGION 7 Tourism Value Chain trainings were conducted by the Department of Trade and Industry (DTI) for the provinces of Bohol, Cebu, Negros Oriental and Siquijor in September this year. This is in relation to the Tourism Leveraging Industry Supply Chains Project or LInCs. LInCs aims to strengthen linkages in MSME (micro, small, and medium entrepreneurs) and tourism sectors between and among Regions VI, VII, VIII, Region IV-B (Puerto Princessa), Region XI (Davao City) LInCs is in response to the call for collaboration as embodied in the Memorandum of Agreement signed between DTI and the Department of Tourism. In the MOA, the two departments agree to closely coordinate with each other in the comprehensive development of the tourism sector, including promotion of the main tourism value chains and the strengthening of various supply chains providing support to the tourism sector.

SPEED MATCHING IN DAVAO, BORACAY AND CAGAYAN DE ORO During 2nd semester this year, the Department of Trade and Industry Central Visayas brought tourism industry players from Cebu to meet suppliers in Davao, Boracay and Cagayan De Oro as part of a Speed Matching activity under the Tourism Leveraging Industry Supply Chains (LInCs) Project. Speed Matching is patterned after Speed Dating (a formalized matchmaking process or dating system to encourage people to meet a large number of new people). It is a structured way of running business and market networking events with the goal of making meeting potential business contacts easier and more productive. This enables suppliers to talk to buyers, make product presentations, negotiate orders and/or establish longterm business relationships. Speed Matching is also a low cost but effective way to match local suppliers and buyers.
Buyers and producers participate in a speed matching activity.

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NEWS BITES

LOCAL INVESTMENTS AND INCENTIVES CODE TRAINING

The Department of Trade and Industry (DTI) and the Department of Interior and Local Government conducted a Local Investments and Incentives Code Training to LGUs in Central Visayas on October 15 – 18, 2012. The training was meant to provide local governments (province, city, municipality) with a guide for formulating their local investments and incentives code

(LIIC) as a proactive measure to draw local and foreign investments especially in priority areas/industries and as a tool to define the development thrust of the LGU consistent with its Land Use Plan and zoning regulations, hasten the development of new or brownfield areas for industrial and business development, urban renewal or revitalization thereby attaining the LGU’s economic and

social objectives and contributing to regional and national goals. The DTI-BOI is tasked to serve as resource institution of DILG and the LGUs in the formulation of the LIIC and in the design and implementation capacity building activities to enable LGUs to have effective investment promotion activities.

DTI ACCEPTS REQUESTS FROM COMPANIES TO INSPECT MOTORCYCLE HELMETS OF EMPLOYEES
Companies in Central Visayas submitted to the Department of Trade and Industry (DTI) provincial offices a request for inspection of their employees’ motorcycle helmets to be done at their establishment. All requests for inspection of motorcycle helmets were submitted to the following provincial offices: BOHOL PROVINCIAL OFFICE, 2F FCB Bldg., CPG Ave., Tagbilaran City, Tel. # (63) 038-5018828; CEBU PROVINCIAL OFFICE, 3F LDM Bldg., M.J. Cuenco Avenue, Cor.Legaspi Street, Cebu City, Tel. # (63) (032) 412-1863 / 2532631; NEGROS ORIENTAL PROVINCIAL OFFICE, 2F Uymatiao Bldg., San Jose Street. Dumaguete City, Tel. # (63)(035) 422-5509; SIQUIJOR PROVINCIAL OFFICE, Chan She Bldg., Legaspi Street, Poblacion, Siquijor, Siquijor, Tel. # (63) 035-480-8241. DTI decided to accommodate requests of private companies in order to facilitate inspection of helmets and issuance of ICC stickers to endusers.

To recall, Congress promulgated Republic Act 10054 otherwise known as Motorcycle Helmet Act in 2009 requiring all motorcycle riders, including drivers and back riders to wear standard protective motorcycle helmets or those that have a PS license or ICC mark at all times while driving, whether long or short drives, while driving, whether long or short drives, in any type of road and highway.

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NEWS BITES

DTI 7 EVALUATES BAGWIS PROVINCIAL NOMINEES In October, the Department of Trade and Industry regional and provincial offices in Central Visayas made an assessment of provincial nominees to the Bagwis Awards. DTI continues to encourage more retail establishments to join the Bagwis program as this fosters the highest level of business ethics and upholds fair and honest marketplace through voluntary regulation and service excellence. The Bagwis Award gives due recognition to establishments that uphold the right of consumers and practice responsible business, where consumers get value for money. The program is also a check and balance for establishments to be guided on how they should operate while consistently conforming to government regulations, as well as local and international standards.

DTI Negros Oriental evaluates a Bagwis nominee

MSSU Notes
The MSSU is developing a price monitoring system that tracks prices of basic and prime commodities in real time. The system will be available at the end of year 2012.

DTI 7

In mid-October, the Management Support Services Unit (MSSU) installed a Virtual Bulletin Board (VBB) in computers of all DTI 7 regional employees. The VBB complements the physical Bulletin Board and currently provides 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

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NEWS BITES

DTI SETS ASIDE BUDGET FOR LRED UPSCALING IN LUZON AND MINDANAO

“The Department of Trade and Industry (DTI) has earmarked Php 8 Million in 2012 and Php 13 Million in 2013 to upscale the Local and Regional Economic Development (LRED) program in Luzon and Mindanao.” Acknowledging the successful introduction of the LRED approach in the Visayas that the DTI and the Deutsche Gesellscaft für Internationale (GIZ) implemented together with the 84 local government units for the past eight years, DTI Undersecretary Merly Cruz said that the department continues to upscale the LRED approach in Luzon and Mindanao, a process which has been started already during the fourth quarter of 2008, in order to make the business environment more favourable for MSMEs in the Philippines. A concrete example of the impact of the LRED in the local economy may be found in the significant gains in global competitiveness of the Philippines, says Lorenzo Templonuevo Senior Adviser of the GIZ Private Sector Promotion Program (SMEDSEP). Templonuevo expects that more reforms made by both government and the private sector using the Local and Regional Economic Development (LRED) approach will continue to improve the country’s business environment in the coming years. LRED is an iterative and participatory economic development process by which stakeholders from both public and private sectors are mobilized to be-

come partners in a joint effort to improve the economy of a locality and increase its competitiveness. With the LRED process the voice and concerns of the private sector are proactively sought out to make the local government unit’s legislative processes and policies become more responsive to the needs and interests of businesses, Templonuevo explains. “LRED is a major step to create jobs, business enterprises and income for the LGUs.” In 2003, The Philippine government, in partnership with the Federal Republic of Germany, initiated a private sector promotion program to create a more favourable business environment for MSMEs in the Visayas. In time this program became popularly known as PSP SMEDSEP. On its last phase in 2012, a closing event for the PSP SMEDSEP was held on October 24 at the Raddison Blu Hotel to give recognition to the DTI and GIZ partnership in the implementation of the highly successful MSME Development Program. The PSP SMEDSEP closing activity also featured the soft launch of the Promotion of Green Economic Development (ProGED) Philippines Project. Usec Cruz says that many approaches and themes that PSP SMEDSEP have shared with DTI have already been mainstreamed in the Visayas

and are now being upscaled to the rest of the country through cooperation with other development partners. Templonuevo reveals that aside from the LRED approach PSP SMEDSEP has also introduced other business enabling approaches such as streamlining of the business permit and licensing system (BPLS) at the city and municipal level, cash flow based lending, private sector provision of business development services, and promotion of market system development and the Valuelinks framework to upgrade sector value chains. PSP SMEDSEP contributes to the efforts of the Philippine government to improve the framework conditions for private sector development in the country. It is implemented in partnership with the Department of Trade and Industry at the national, regional and provincial levels on behalf of the Philippine government and the German Federal Ministry for Economic Cooperation and Development (BMZ). At the National level, PSP SMEDSEP’s advisory service helped shape the 2011 to 2016 National MSME Development Plan which has been adopted by the Philippine Development Plan of the Aquino Administration. GIZ is an international cooperation enterprise for

Press Conference for PSP SMEDSEP final event and PROGED so2 launch.

sustainable development with worldwide operations owned by the German Government. For 30 years, it has been providing forward looking contributions to political, economic, ecological and social development in partner countries. GIZ supports reform and change processes in an increasingly globalized world, often working under difficult conditions. Its major approach to facilitate change is promoting capacity development of people and partner organizations as well as improving institutions and frame conditions in partner countries. The joint projects and programs are outcome and impact oriented and contributes towards socioeconomic progress.

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NEWS BITES

SHARED SERVICE FACILITIES (SSF) FOR CENTRAL VISAYAS

In October, the Department of Trade and Industry Central Visayas Office (DTI 7) received proposals from industry associations and cooperatives for the establishment of Shared Service Facilities (SSF) and machineries for use by micro and small enterprises in their areas. These SSF proposals will be screened by the DTI head Office after which the agency will conduct a public bidding for the supply of these machineries and equipment. All proposals are for the establishment or purchase of equipment and machineries for business and agri-

business ventures. DTI Central Visayas prioritizes SSFs for businesses engaged in bamboo, coconut / coco coir, seaweeds, GDH, wearables, homestyle, metals and metalworks, and processed foods. As of October 2012, there were 13 SSFs approved and ready for public bidding based on report submitted by DTI. In Cebu, these include Coco Twine/ Coir Production, Decorticating Machine, Modernized and Eco-friendly Production Facility. In Bohol, approved SSFs include the Shared Service Facility for the Calamay Industry

of Jagna and Alburquerque, Shared Service Facility for the Meat Processing Project of Catigbian, Shared Service Facility for the Ginger Processing Project of Loboc, Raffia Competitiveness and Productivity Enhancement Program, Shared Service Facility for the Bicao Farmers Multi Purpose Cooperative Food Processors, Shared Service Facility for Dauis Fine Jewelry. For Negros Oriental, they have the Bamboo Processing Center for Negros Oriental. For Siquijor, these include a Food Processing and Labelling Center, Enhancement of the Community-based

Larena Wood Craft Industry and SSF for Bayong Production. DTI 7 hopes that by early next year these facilities will be in place so micro and small enterprises among clustered industry players can already use these in the first quarter. SSFs shall be hosted by a private group, industry associations, cooperative. SSFs are meant to improve the capability of micro enterprises in the processing of raw materials, improve their productivity and quality and to ad-

dress gaps in supply and value chain.

COMPREHENSIVE AGRARIAN REFORM PROGRAM UPDATE

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

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Blessings from the River
AN ECONOMIC JOURNEY
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 connect with their ancestors and find the way to peace and progress. This belief is shrouded 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 the main waterway of the island and the center of trade and commerce in Bohol. From the Antequera and Catigbian uplands, this thoroughfare flows through the towns of Cortes and Balilihan before ending up in Maribojoc Bay. The sides of this scenic stream are occupied by dense nipa forest and thick mangroves that serve as habitat to crabs and clams among others. This fabled river, 13.5 kilometers long and 25 to 50 meters wide, is now the focus of one of the biggest eco-tourism projects in Bohol ---the Abatan River Life Tour.

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Using a native boat called Bandong, the large stream can be traversed in a three-hour voyage. Boat passengers will find that the waterway’s tranquil ambience, cool breeze, swaying palms provide a good respite from the din of urban life. Emilia Roslinda, executive director of PROCESS Bohol Foundation, Inc., project management office of Abatan River Life Tour, shares that the tour was designed as a community-based project. It is a cultural, tourism, environment preservation and alternative livelihood meant to alleviate poverty for the people along this body of water, recounts Roslinda. And considering the active participation of the elderly, it is one opportunity to passon to the younger generation the ageold traditions of the Abatan River communities. Roslinda animatedly describes the tour that begins at the Ecotourism Village Center in Cortes, about 10 kilometers from Tagbilaran City. She enumerates the many interesting activities that await visitors at each stop along the tour such as witnessing river life expressed through song and dance, listening to serenades, participating in basket weaving demonstrations, plunging on adventure explorations and partaking of tasty native delicacies. Tour participants also get the opportunity to view exhibits on the rich history and culture of Abatan River communities as well as buy some of the local crafts under the One Town One Product (OTOP) – Philippines project. In Antequera, a town known for its intricate basket weaves, tourists can also purchase other native products such

as hampers, wall decors, bags and fashion accessories. While in Maribojoc, one can buy the banig baliw, the OTOP product of this municipality. To save this diminishing industry, the local government of Maribojoc, in coordination with the Department of Trade and Industry (DTI), conducted a series of trainings to convert the banig baliw into handbags, tote bags, throw pillows and placemats. The river tour sprang from the collective initiatives of the Abatan River Development Management Council (ARMDC) composed of five LGUs of five municipalities, provincial government, national government agencies, non-government organizations as well as communities situated along this waterway. In developing the Abatan River, the cluster/ multisectoral approach was adopted by the ARMDC for the municipalities of Cortes, Maribojoc, Balilihan, Catigbian and Antequera. The ARMDC believes that this approach encourages community participation in the conservation, preservation and management of the environment and cultural heritage in the area. ARMDC saw the collective sense of responsibility to protect and conserve the Abatan as a common ground that binds together the municipalities along the channel. The stakeholders also recognize that the river has the potential to become a major ecotourism attraction, a way to provide livelihood for residents, additional income for municipalities and a means to ignite economic growth in the towns it traverses.

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municipality or city. bon explains. For the five municipalities, a series of workshop seminars were given to assess their economic development needs. Based on their assessed needs, each municipality drafted their LRED action plans. After which, a consolidation workshop was conducted for local chief executives, their representatives and the LRED teams of each municipality to put in place an economic development plan for the Abatan Cluster. Upon the recommendation of DTI Bohol provincial director Maria Elena Arbon, the LRED process in the province was implemented simultaneously in five municipalities to ensure a bigger impact on economic development. The Abatan Cluster LRED had two levels of implementation – the municipal level and the cluster level. Arbon narrates that the first level of the approach concentrated on convincing the local chief executives (LCEs) of the municipalities to embark on LRED. "Once the approval of the LCEs was attained, the people involved in the implementation of the approach were capacitated." Another activity followed to take stock of the current economic realities of the membermunicipalities. These initiatives necessitated the formation of the municipal LRED teams, ArEquipped with a deeper understanding of their economic realities and with their various action plans, the municipal LRED teams then gathered together to start implementing the second level of the approach. The second level, Arbon discloses, involved the consolidation of the municipal LRED plans to form the cluster model. Through LRED, Abatan stakeholders identified strategies to promote their eco-tourism activities and to respond to various issues and challenges. To ensure that plans are implemented, a pledge of commitment to provide technical assistance in any of the prioritized project interventions was forged among stakeholders and enablers.

Abatan River Life Tour par&cipants exploring the countryside.

Moreover, stakeholders realize that the development of the waterway as an ecotourism destination provides a milieu where they can market and promote handicrafts, agricultural produce and other products from the residents living along this channel as well as attract potential investors to the municipalities. It is worth noting that recognition of the advantages of the cluster/ multi-sectoral approach to the development of the river came about when the five municipalities of the Abatan Cluster were introduced to the Local Regional Economic Development (LRED) concept by the German Technical Agency Deutsche Gesellschaft fur InternationaleZusammenarbeit (GIZ) and the DTI Bohol Provincial Office in 2008. LRED is one approach used to improve the business and Investment climate within the Local Government Unit of a

Life at the Abatan River is expressed through music.

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Being the secretariat of the ARMDC, PROCESS Bohol Foundation, Inc. committed to take charge on the development and management of the project. DTI, for its part, committed to conduct a value chain workshop for crafts and investment promotion for the project in collaboration with the Bohol Investment Promotions Center. The Department of Agrarian Reform took charge of the strategic focus and value chain for agriculture intervention in partnership with the Provincial Agricultural Office. Several years and many meetings later, benefits from cluster activities were gradually felt by the LRED teams. They discovered that cluster activities gave them a wider economic perspective, allowed them a peek into development beyond their boundaries and taught them best practices of member municipalities. The challenges the Abatan cluster faced and contin-

ually meet are daunting. But even with all the difficulties encountered during its inception, the Abatan River Life Tour started operation in 2010 and is currently doing well. Akin to the winding Abatan River with its many twists and turns, this inspiring community-led tourism endeavor went through years of tumultuous discussions and arduous planning, side stepping obstacles that threatened to abort the project before it was implemented. Today, the Abatan River Life Tour has become the pride of its stakeholders. It is also a fitting tribute to the creativity, innovativeness and progressive thinking of Bohol's empowered communities.

EMILIA M. ROSLINDA Executive Director, Process Bohol Foundation Inc. Tel. No. (038) 416-0067 Smart No. 0920-9067446 / Globe No. 09157699515 Website: www.riverlife.ph / www.processbohol.org

Abatan River life Package Tours
Mixed River Life and Firefly Adventure Tour Amazing Firefly Adventure Tour Waterfalls & Wholesome Adventure Tour River Life Education Adventure Tour
Flexi River Tour

INSIDE STORY
Blessings from the River: An Economic Journey is one of the success stories featured in the OTOPreneur Magazine . OTOPreneur magazine is published semi-annually by the Regional Operations and Development Group of the Department of Trade and Industry.

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The DTI- Public Rela ons Office organized the DTI-wide Informa on Officers' Forum and Workshop held on August 01 to 03, 2012 at the Crowne Plaza Manila Galleria, Or gas Center, Pasig City. The forum and workshop was meant to strengthen the exis ng DTI informa on/communica on system and structure that will enable DTI informa on officers to proac vely disseminate informa on to the Department's stakeholders, target audiences, and the general public.

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Fact Sheet

THE PROJECT
Tourism Leveraging Industry Supply Chains (LInCs), a joint project of the Department of Trade and Industry (DTI) and the Department of Tourism, to achieve the twin goals of enhancing the competitiveness of local tourism products and destinations as well as spreading the economic gains of tourism.

STRATEGIES
Broadening/Deeping linkages into the Hotels, Res taurants and Activities Supply Chain Boosting Tourism Pasalubong Shopping Diversifying the Destination, including more prod ucts for local communities Steering Groups, Partnerships and Collaboration

RATIONALE
The competitiveness and sustainability of a tourism product depends essentially on the quality of the attraction, the quality of the key goods and services that are available and the quality features of the destination. The DTI-DOT tourism collaboration recognizes that the creation or evolution of a successful tourism product needs a dynamic public and private sector partnership that allows stakeholders to institute interventions in a more strategic manner and on a deeper and broader scale to allow economic participation in the locality.

PROJECT COVERAGE
Regions VI, VII, VIII, Region IV-B (Puerto Princessa), Region XI (Davao City)

PARTNERS
The DTI is the executive department of the Philippine government with the two-pronged mission of enabling business and empowering consumers. The Department is committed to improve the Filipinos' quality of life and reduce poverty through inclusive economic growth and employment generation. The DOT is the executive department of the Philippine government responsible for the regulation of the local tourism industry and the promotion of the Philippines as a tourist destination.

PROJECT COMPONENTS
Tourism Value Chain Access to Market Capability Building Investment Promotion Promotion of Quality Standards Steering Groups

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GEARING UP FOR DEVELOPMENT
A Case Study on the Bohol MSMED Council
By NITA AGAD BALABA DTI-BOHOL ___________

he Bohol MSME sector is a cri cal driver for the island’s economic growth. The sector serves as supplier and subcontractor to large enterprises including exporters and is part of a support system for logiscs services.

While the poor business conditions have affected the performance and competitiveness of all enterprises, the impact is perceived to be more difficult for MSMEs given their relatively small size and limited resources.

gy, weak technological capabilities, and failure to engage in innovation and research and development activities. THE BOHOL PROVINCIAL MICRO SMALL AND MEDIUM ENTERPRISE DEVELOPMENT COUNCIL In 1997, the Bohol Provincial Small and Medium Enterprise Development Council (PSMEDC) was established to allow replication of the National MSMEDC’s functions at the provincial level. Thus the PSMEDC was primarily responsible for the promotion, growth, and development of MSMEs at the provincial level. It was Chaired by the President of the Bohol Chamber of Commerce and Industry and Co-Chaired by the City Mayor. It is important to note that the leadership of the Provincial MSMED Council is on a “co-chair” basis to clearly demonstrate privatepublic partnership in the promotion and development of MSMEs. In 2010, the Bohol Provincial MSMED Council was reorganized making the Provincial Governor as the Chair and Co-Chaired by the President of the Bohol Chamber of Commerce and Industry. Membership was also expanded to include more private sector participation. Executive Order N0. 3 s. 2010 was issued by the Provincial Governor creating the PMSMED Council as well as its functions.

SITUATIONAL ANALYSIS OF BOHOL MSMEs Based on March 2011 data from the Department of Trade and Industry (DTI) Bohol Provincial Office, 98.86% of Bohol enterprises are micro with asset size of P3.0M and below. The pursuit of the full development and optimum performance of Bohol MSMEs remains a huge and continuing challenge to Bohol. Currently, the performance of MSMEs in the province has remained constrained by various factors that prevent them from realizing their potentials and surviving and growing in a highly competitive environment. These include high cost of doing business, lack of access to finance and market information, and low productivity and competitiveness.

Many MSMEs are unable to qualify for bank loans because they lack the necessary track record and collateral. The lack of credit information also deters banks from lending to MSMEs as it is more difficult to determine their creditworthiness. With their limited management and financial capabilities, many MSMEs have remained domestic oriented rather than take the risks of also exploring export markets. Another key concern is the low productivity of MSMEs due to lack of access to new technolo-

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Case Study on the Bohol MSMED Council

opportunities conducive to the growth and development of the MSME sector; To recommend to the President and the Congress all policy matters affecting MSMEs; To coordinate and integrate various government and private sector activities relating to MSME development; To review existing policies of government agencies that would affect the growth and development of MSMEs and recommend changes to the President and Congress through the Committee on Economic Affairs of the Senate and the Committee on Small Business and Entrepreneurship Development of the House of Representatives, whenever deemed necessary. This shall include efforts to simplify rules and regulations, as well as review of the applicability and relevance of procedural and documentary requirements in the registration, financing, and other activities relevant to MSMEs the result shall be included in the annual report to be submitted to Congress; To monitor and determine the progress of various agencies geared towards the development of the sector. This shall include overseeing, in coordination with local government units and the Department of Interior and Local Government as well as private sector groups/associations, the development among MSMEs;

To

promulgate implementing guidelines, programs, and operating principles as may be deemed proper and necessary in the light of government policies and objectives of this Act;

To further strengthen the Council, an Executive Committee of eight (8) members was created representing the 3 priority sectors and chair of the different functional committees. The Executive Committee shall meet on a quarterly basis. The following are members of the Executive Committee: Chair - Gov. Edgar M. Chatto Co-Chair - Marietta S. Gasatan Members Lucas Nunag, Tourism Sector Leah Magno, ICT Sector Larry Pamugas, Agriculture Sector John Titus Vistal, PPDO Ma. Fe Dominise, BIPC Francisca Opog, TESDA

To provide the appropriate policy and coordinative framework in assisting relevant government agencies, in coordination with the NEDA and the Coordinating Council for the Philippine Assistance Program, as may be necessary, in the tapping of local and foreign funds for MSME development; To promote the productivity and viability of MSMEs by way of directing and/or assist ing relevant government agencies and institutions at the provincial level.

ACTIVITIES UNDERTAKEN BY THE BOHOL PMSMED COUNCIL The German Cooperation Agency (GIZ) has been the constant partner of the Department of Trade and Industry in terms of strengthening and capacitating the Bohol Provincial MSMED Council. The following workshops were undertaken: Provincial Harmonization Workshop in Loay, Bohol. It was during this workshop where the Bohol SMED Plan was crafted. Another PMSMED Council Planning Workshop was conducted in October of 2008 in Dauis, Bohol to revisit the formulated SMED Plan.

FUNCTIONS OF THE PMSMED COUNCIL The National MSMEDC has approved through a resolution the Powers and Functions of the Provincial MSMED Councils which further delineates the duties and functions of the government and private sector members of the Council. To help establish the needed environment and

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… Case Study on the Bohol MSMED Council

A three-day Provincial Micro, Small and Medium Enterprise (MSME) Development Planning Workshop was held in Tagbilaran City on March 2 to 4, 2011. This was attended by around 80 stakeholders from government and private sectors. MSMED Council, observers from other provinces of Region 6, 7 and 8 as well as from the national BMSMED Office were present to see the proceedings of the workshop with the intention of replicating the activity in their respective areas. The draft plans were initially submitted for validation to the Provincial MSMED Council in April 2011. During the validation and fine-tuning workshop, the sectoral representatives reviewed the March workshop outputs and provided additional technical inputs to enhance the plans, provide more realistic strategies and include more strategy-focused plans, programs and activities. In May 2011, the plans validated and enhanced by the different MSME sectoral representatives were presented to the Provincial MSMED Council, Executive Committee. During this presentation, there was still a need to include some more details in the sectoral plans like clearer timelines and targets. In June 2011, the plans were reviewed by the DTI-Bohol

technical team who categorized the plans and strategies into the four levels of systemic competitiveness, culled out commonalities to produce the Provincial MSMED Plan and provided timelines for implementation. Consultative and participatory processes were observed all throughout the planning process to ensure that the three key MSME sectors as well as the PMSMED Council will take ownership of the plan and increase their stakes into ensuring its successful implementation. Two coaching sessions with the German Technical Agency GIZ were done in 2011 while the third coaching session was on April 16, 2012.

Activities undertaken for the capacity development of the Bohol MSMED Council has been a collaborative effort of the Bohol Provincial Government, the DTI and the GIZ in cooperation with private sector representatives from various micro, small and medium enterprises in tourism, agriculture and the ICT sectors. With its capacity developed, the Provincial MSMED Council members now know their roles as well as functions of the Council; strategies have been formulated on the three functional mandates (Policy Formulation, Program Advocacy, and Program Integration and Coordination Committees). Most importantly, capacity development efforts paid off in terms of more pronounced and focused participation of member agencies in the Council; members are currently more eager to participate in all of the undertakings of the Council because of the clear direction that it is taking.

Hand in hand with the Capacity Development of the Council, the Secretariat was also capacitated through a workshop in the formulation of the Operations Guidebook of the Provincial MSMED Council. Generally, the Operation Guidebook serves as a ready reference on the procedures, processes and mechanics necessary for the smooth operations of the affairs and activities of the MSMED Councils. It also standardize processes and procedures in the provision of technical and administrative support to the MSMED Councils. Because meetings are the lifeblood of the PMSMED Councils, the Operations Guidebook likewise contains standard forms and templates to ensure Council meetings are well-prepared, adequately managed and efficiently conducted to produce expected results and desirable outcomes.

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On September 19, the DTI and the Philippine Product Safety 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).

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 the capacity of beneficiaries to produce marketable bamboo products. In addition, beneficiaries receive marketing assistance from department.

In celebration of the Regional Development Council Anniversary, DTI 7 participated in a press conference that was conducted on September 25, 2012 at the NEDA 7 Regional Office. During the press conference, NEDA-7 ARD Efren Carreon presented the Economic Situationer in Central Visayas while DTI-7 IO Jojisilia Villamor shared programs, activities and projects of DTI towards reducing poverty such as the Local and Regional Economic Development, Subcontracting Partners for Innovation and Comprehensive Agrarian Reform Program. She also shared updates on Tourism LInCs, Philippine Business Registry, Business Permit and Licensing System and the One Town One Product Program.

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The Department of Trade and Industry (DTI), through its Bureau of Trade Regulation and Consumer Protection (BTRCP), held a public hearing on the Rationalization of Fines on October 23, 2012 at Harolds Hotel, Gorordo Avenue, Lahug, Cebu City. DTI has drafted a Department Administrative Order (DAO) entitled: Classifying Administrative Offenses under Consumer Act (R.A. 7394) and the Law on Standards (R.A. 4109) and Rationalization of fines corresponding thereto. The DAO covers consumer complaints and formal charges involving transactions committed in commerce either customary or electronic means in violation of the provisions of R.A. 7394 and R.A. 4109.

The DTI Negros Oriental staff monitored prices of basic and prime commodities in earthquake stricken areas in the province. It is part of the DTI's mandate to conduct regular price monitoring on basic commodities and other processed products to see if there is an excessive increase in prices. The DTI checks the prices of grocery items such as sardines, processed milk, coffee, detergent bar, laundry soap, noodles, bread, processed food, construction materials, and flour.

The Department of Trade and Industry (DTI) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) held the soft launch of the Promotion of Green Economic Development (ProGED) Philippines Project on 24 October at the Radisson Blu Hotel in Cebu City. On the same day of the ProGED launched was the final event of the PSP SMEDSEP in the Philippines that celebrates the success of the DTI and GIZ partnership in the implementation of the highly successful over nine years private sector promotion program.

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The Board of Investments (BOI) in partnership with the DTI conducted an Investments Roadshow on November 22, 2012 at the Crown Regency Hotel and Towers, Fuente Osmena Boulevard, Cebu City. The activity served as a venue for the presentation of the recently approved 2012 Investment Priorities Plan (IPP) and a feedback session on how the government may further assist the existing and would be entrepreneurs in their business undertakings. Projects identified under the IPP are entitled to a package of incentives including income tax holiday, duty-free importation of capital equipment among others. This year’s IPP comprises a total of 13 preferred economic activities including agriculture/ agribusiness and fishery, creative industries/knowledge-based services, shipbuilding, mass housing, iron and steel, energy, infrastructure and PPP, research & development, green projects, hospital and medical services projects, motor vehicles, strategic projects, and disaster prevention and recovery projects.

To increase the OTOP items registered online via Shopinas and to enroll all OTOP SMEs in the OTOP website, the DTI 7 and OTOP Store staff photographed several products of the OTOP Store Cebu outlet in December. The One Town One Product (OTOP) Store is a depot of top-quality products in the Philippines. A Public-Private Partnership project, the OTOP Store is a microcosm of the Philippines as a nation. Products from all over the country —-reinvented, reshaped, redesigned, drawn out, sculpted, or reconfigured using materials native to the area, are all in this shop to entice the seeker to buy. For OTOP Store in Cebu, around 70 percent of these products are sourced from Central Visayas while 30 percent of it comes from different parts of the country.

The Department of Trade and Industry (DTI) Central Visayas passed the 2nd surveillance audit conducted by the Certification International Philippines (CIP) Inc. on November 7-9, 2012 in relation to Quality Management System (QMS) ISO 9001:2008 certification. As ISO-certified, DTI-Central Visayas has fully developed certain formal processes in its management quality control. This includes monitoring processes, complete and accurate records’ maintenance, checking and correction of defective outputs and effectiveness’ continual internal reviews. International Organization for Standardization (ISO) is an international organization that gives certification to businesses, government organizations and social entities that meet certain common standards.

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DTI HOLDS 1ST REGIONAL BAMBOO CONFERENCE
The Department of Trade and Industry (DTI) and the Bamboo Industry Development Council organized the first regional bamboo conference held on September 28, 2012 in Dumaguete City. This was part of the provincial effort to promote bamboo as a means of livelihood and to offset the negative impact of climate change. The bamboo conference was meant to gather stakeholders in the province as well as in the region to draw future plans for the bamboo industry. The DTI led the creation of the local bamboo industry development council in Negros Oriental to comply with Executive Order (EO) No. 189, to help intensify the bamboo industry in the province. DTI Provincial Director Javier Fortunato briefed members of the council on the significant items of the EO that directs the full implementation of the Philippine Bamboo industry Development Program. During the conference, bamboo experts discussed the state of the bamboo industry in the country, its value chain and directions. The activity also included resource mapping, product development, and technology transfer, and capability building-training. The provincial bamboo development council is composed of various government agencies that include the DTI as the chair body, the Department of Environment and Natural Resources, Department of Agriculture, Department of Education (DepEd), Department of Science and Technology, Department of Labor and Employment, the Negros Oriental Chamber of Commerce, Inc., the Philippine Bamboo Foundation Inc. and the Buglas Bamboo Institute, among others. The EO tasked the DepEd to procure the equivalent of at least 20 percent of the annual school desk and armchair requirement of all public elementary and secondary schools nationwide in bamboo furniture.

Na onal Compe

veness Council Roadshow in Cebu City

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in the Philippines

EDITORIAL BOARD

Executive Editor Asteria C. Caberte DTI 7 Regional Director

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: dti_7@yahoo.com / dticentralvisayas@gmail.com 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: bdd.dtiro7@gmail.com Consumer Welfare and Business Regulatory Division Rose Mae Quinanola, OIC Tel. Nos. 2550036 / 412-1989 / 412-1868 loc 301 Industry Development and Investment Promotion Division Minerva Yap, Chief Tel. nos. 412-1944 / 4121945 / 255-6971 / 255-3926 e-mail: dtiro7.idipd@gmail.com 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: dtibohol@yahoo.com 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: dticebuphil@yahoo.com / dticebuphil@gmail.com 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: dtinegor@gmail.com 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: dtisiquijor@yahoo.com 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: dticebuphil@yahoo.com / dticebuphil@gmail.com

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

Enabling Business, Empowering Consumers 31

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