Foreign Films as Inspiration for Making Global Products

Each year, I’m always on the watch for the latest foreign film festivals.

There’s something about watching foreign films --- it broadens your world perspective and gives you a feel of other cultures. Eventually, you realize that there is more out there than your own small, shallow, petty “universe”.

Cebu’s film calendar is packed with many film events, thanks to combined efforts of the Cebu Arts Council and foreign embassies.

I’m fascinated by the wide selection of foreign film festivals we have here (considering that Cebu is a tiny island), such as French Film Festival, British Film Festival, Australian Film Festival and European Film Festival, just to name but a few.

So if you ran out of inspiration on what product to sell to the international market, buy popcorn and swing by the Cebu foreign film festivals. These are usually held either at the SM or Ayala Malls.



Held mid-year, this is one event film lovers must not miss! Makes you think Cebu has become a true global city for the arts.

Highlights of the Validation Workshop on the REDP 2008-2010

Here's another speech I made for my boss:

In April and May this year, PHILEXPORT-Cebu and DTI had a series of consultations with key industry representatives of the export sector.

Industries represented during the consultations included GTH, electronics and industrial goods, food ICT services and medical tourism.

These consultations were meant to inform stakeholders of the status of the national and regional economies, as well as new developments in trade and investments, It also identified challenges for 2008-2010 based on gaps in the six pillars of competitiveness, and discussed possible solutions to gaps for consideration in the Regional Export Development Plan.

A Validation Workshop was held on May 7 to validate outputs from previous FGD’s and workshops. Discussions focused on issues related to the 6 drivers of competitiveness which are: human resource, management, infrastructure, logistics, energy and financing.

The group’s proposed Vision Statement is “We are the Primary export hub of Central and Southern Philippines.”

The group recognizes that future export success will rely on the continued mobilization of the private sector to pursue global competitiveness, the strengthening of the institutional structures which support export development and grant incentives, the introduction of innovative financing schemes for the small to medium-scale enterprise sector.

Export success will also rely on the reduction of transaction costs through further rationalization and simplification of export and international business procedures, the acceleration of foreign direct investment and, of course, more effective implementation of specific initiatives.

In coming up with a goal, our approach was to develop one that was in parallel with the country’s overall economic development plan and to ensure that the regional export strategy becomes an essential component of the national plan.

Our proposed goal is “By 2010, Central Visayas will be the center of all export activities for Central and Southern Philippines with a conducive and environment friendly business climate that is founded on ideal infrastructure, highly skilled and innovative human resource, good governance and ample raw material supply.”

Our proposed Export Target:
Year 2007 - $2.5 billion
Year 2008 - $2.8 billion
Year 2009 - $3.1 billion
Year 2010 - $3.5 billion

Regional exports registered $ 2.2 B last year. However, we expect that this will grow by leaps and bounds in the succeeding years..

The group has taken into consideration that high growth areas in the coming years will come from the so-called 10 Revenue Streams, export products identified to have high growth potentials. Some of these revenue streams are areas where Central Visayas excel.

These revenue streams are projected to post double-digit growth rates in the next three years, led by information technology. Other product groups expected to perform well are marine products, organic and natural products, home furnishings, wearables, motor vehicle parts and components, electronics, construction materials, giftware, holiday décor and food.

Here are the results of the GAP analysis on the 6 drivers of competitiveness as can been seen on the slides. Issues and proposed interventions or strategies to address setbacks in the export industry were thoroughly discussed by representatives from the export sector.

As expected, issues focused on human resource, management, infrastructure, logistics, energy and financing. Considering that copies of results of the workshop have already been given to each of you, I feel no need to reiterate what had been discussed.

The group’s comprehensive approach to strategy conceptualization reinforces the essential linkages between export strategy and the country’s other economic and social initiatives.

As importantly, developing export strategy directly in conjunction with national economic planning ensures that export development is reflected as a priority in all economic portfolios and that export development and promotion are seen as a continuing national priority.

Considering that the government gives utmost importance to public-private sector dialogue, it continues to seek a concerted effort to build consensus within the private sector on export development issues and policy advocacy,

In closing, I would like to acknowledge the cooperation and active participation of our export leaders and, of course, PHILEXPORT-Cebu, who had been identified as lead of the consultations, to the success of the discussions..

Enhancing trade relations with Cebu

I'm currently writing the speech for a local diplomat who will soon be talking to a group of prospective foreign investors.

I'm sharing with you a rough draft of her speech so you will have an idea on why investing in Cebu is a wise decision for any astute investor.

Honorable guests, ladies and gentlemen, good morning.

I was agonizing the past few days on how best to present the Philippines, especially Cebu, to a group of businessmen and diplomats who do not speak my native language and who may have a certain preconceived opinion of my country based on reports from the international media.

But then I realized that there is so much more in common between us. And whatever differences there are, these will eventually be prevailed upon by our intense desire to connect with our markets and succeed in the international business arena.

Not many know that former Philippine President Ferdinand Edralin Marcos and USSR President Nikolai Viktorovich Podgomy signed the joint communique formalizing diplomatic relations at the Kremlin’s Vladimirsky Hall in Moscow on June 2, 1976. In fact, fewer people know that the history of the Philippines and Russia goes back for almost five centuries.

According to Prof. Vladimir Makarenko of the Moscow State University, the archipelago making up the Philippines was known to Russians even during the days of the embryonic Russian state of Muscovy in the early 16th century. Perhaps taken from accounts principally by Chinese, Japanese and Arab traders, these islands were known collectively to Russians as Ma-1 or Lukonia.

From these hazy beginnings the Philippines entered into Russia’s recorded history through accounts filtering back to Moscow of the first circumnavigation of the world of renowned Portuguese explorer Ferdinand Magellan in April 1521.

Magellan’s voyage spurred wide interest among European leaders who saw enormous trade potentials in the new route. De Moluccis insulis eventually found its way to Russia and was translated into Russian presumably between 1525 and 1530. The Saltykov-Shehedrin State Library in St. Petersburg is believed to keep a copy of the manuscript. The Russians translation is attributed by scholars to Dmirry Gerasimov, the ambassador of Grand Prince Basil III Ivanovich of Muscovy (1479-1533) to the Papal See in Rome.

Thus, Russia learned about the existence of the Philippine archipelago and its inhabitants at the same time as in other European countries. In succeeding years, more information was gleaned from a variety of other sources through the Vatican, New Spain (present-day Mexico), Spain and also through China and other Southeast Asian countries which had been trading with the islands since olden times. It was through these channels that Russia learned about the eventual conquest and settlement of the Philippines by Spaniards in the late 16th century.

It would take more than another 150 years before Russia showed any interest in opening diplomatic relations.

It is remarkable how the recently concluded 12^th ASEAN Summit has thrust the Philippines, particularly Cebu, into the consciousness of the international business community.

We knew the amount of media mileage such an event would generate. Still, it came as a pleasant surprise when several foreign diplomats and businessmen, particularly those in Europe and Asia were expressing interest in opening or strengthening trade relations with Cebu.

The ASEAN Summit publicity came at a most opportune time when the Philippine national government had a new development planning strategy in strong partnership with the Local Government Units (LGUs) in a bid to spur economic growth in the countryside and eventually lead the Philippines to achieving First World status in the next two decades.

President Gloria Macapagal-Arroyo has said that her vision for the country would come from the perspective of the Regional Development Councils (RDCs), thus paving the way to a greater participation of the LGUs in development planning, much to the delight of the local executives.

The President eschewed the usual central/national point of view and opt to create a development program from the perspective of the regions to bolster education, invest in infrastructure and encourage greater investments all over the country.

In the process, the regional leaders and sectors have intensively participated in the planning, monitoring and fine-tuning development programs and projects in their regions. They also have pinpointed the strengths of their regions and the corresponding priority projects and programs essential to the development of their mega-region’s "own natural advantage" from which the government could build on.

The enlarged grouping of the regions will boost economic and market potentials beyond what each region can generate, with economies of scale, synergies and complementation that will be more attractive to investors.

In addition, a large resource base of each mega-region will be available for the provision of social services and pump-priming infrastructure, particularly for the poorer provinces.

Our president viewed the mega -regions as the "harbinger of First World status" for the country in the next two decades as the strategy entails the massive devolution of development from the national to the regional level, thus breaking the bureaucratic clog that impedes local progress and spells a quantum leap in investments and jobs.

The recent planning tact had put together a series of development packages, identified the areas for investments as the government embarks on "an enlarged economies of scale."

North Luzon would be developed as the agri-business center in the North, Metro Luzon would be the urban beltway, Central Philippines as RP’s tourism hub, and Mindanao as the agri-business center in the South.

This economic development template for the Philippines gives you an idea of where you could place your investments.

Russia is a very important country to the Philippines as trade partner.

Thus, it is worth every effort to look more closely at products of

interest to both sides.

In the Philippines, the preferred investments activities are those that focus on healthcare and wellness products & services, information technology and communications technology, electronics, motor vehicle products, energy, infrastructure, tourism, shipbuilding/ shipping, agriculture, fishery and support services, research and development/ training institutions, machinery and equipment, raw materials and intermediate inputs.

The Russian group that recently visited Cebu was interested in the province’s custom designed furniture that are made of indigenous materials found only in the Philippines. They also looked at the Philippines-produced tropical fruits and aquaculture products which they intend to distribute to the Siberian areas. I believe there are many more local products that would be of interest to them.

Economic growth in Cebu remains robust. In fact, Cebu is the only province that exports more than it imports. This export record represents around 10% of Philippine exports.

Although electronics consistently ranked number one in Cebu for the past years, contributing 33% in 2006 to total exports, provincal exports has slowly diversified to other Industries. This means that other industry sectors have gradually expanded such as fashion accessories and furniture.

Cebu’s ten export markets last year include: Japan, USA, Hong Kong, China, Netherlands, Singapore, Hungary, Indonesia, United kingdom and France.

This economic success of Cebu is the result of positioning, serious, planning, an industrious population and local governments who understand the needs of business.

This success will continue, and to facilitate this growth, our provincial government has implemented several projects.

The connection of Cebu to geothermal power grids from neighboring islands will ensure that supply of cost effective and reliable electricity will continue.

The construction of dams at strategic sites will maintain adequate water supplies.

New road construction projects will improve access and continuing program of road widening and bridge construction will keep traffic moving.

Ongoing investment in world class accommodation will ensure that Cebu emerges as the preferred Tourist and Convention destination in the region.

Most importantly, the development of more special economic zones with incentives for investors ensures industry will continue to profit by being based in Cebu, the Philippines' best seller.

Whenever I meet foreign businessmen and invite them to invest in Cebu, they often ask: WHY CEBU?

There are several good reasons why we are number one.

There is a reason why this small island leads the entire country in exports of furniture, fashion accessories, carageenan, gifts, toys, and houseware.

There is a reason why Cebu consistently gets the biggest chunk of tourist arrivals yearly, and has become the tourist gateway to Central and Southern Philippines.

Here’s an interesting trivia you may want to know: Russia’s birds have been tourists in Cebu for several years. They come here to escape the bitter Siberian winters. You could take that as a cue.

It’s not just a tourist destination.

In the last decade, foreign businessmen have arrived at another reason for coming to Cebu. Because of facility in the English language and good customer relations, they are considering Cebu as an IT services hub.

There is a reason why Cebu is fast becoming the I.T. and call center capital of the country.

Why Cebu?

Perhaps because the island is naturally situated to become the center of all this action.

It is a natural port. More than 80% of inter-island shipping capacity is based here, on this small island. It is the most accessible place to and from all points in the country, with more domestic air and sea linkages than even Manila.

It is naturally safe. It does not lie within any earthquake zone or typhoon belt. There are no volcanoes on the island.

It has the necessary, well-balanced infrastructure to remain competitive, and to sustain development. And yet, within minutes from its cosmopolitan quarters, you are immediately transported to resort settings and natural wonders.

Why Cebu?

Most of all, because of its PEOPLE. An independent, self-reliant, entrepreneurial culture pervades the island, which makes its people eminently positioned to seize the opportunities that nature presented it.

We have a highly educated workforce geared towards non-agricultural lines, the reason why Cebu has become the center of global attention for services and information technology.

We are naturally peaceful. We have among the lowest crime rates, and the best peace and order records of all cities and provinces in the Philippines.

Why Cebu? The Island. Its People. We have had four centuries of being discovered by the world. And we invite you to discover today - this island, this people.

When Cebu was "discovered" by Ferdinand Magellan in 1521, it was truly a discovery, for it opened the eyes of the world to what it did not expect to see.

We had been a bustling trading post in Asia, long before the first of his ships landed, positioned right in the middle of what was to become the Philippine Archipelago.

The island, with its natural port, was a logical destination, and its people, so steeped in the ways of trade and commerce, were its greatest natural resources.

Fast-forward 436 years, and Cebu remains a discovery. It remains that one bright spot, situated right at the center of the Philippine archipelago.

Cebu is the fastest growing economy in the country, with an average growth rate significantly higher than that of the entire nation, and any other province. It leads 78 other provinces in gross assets, equity and total income.

Why Cebu ?

Why not Cebu? Any astute investor would want to invest in a winner.

(diplomat briefly states her plans for the enhancement of the Russia-Philippine Trade)

The fact that you have given me this chance to make a presentation on Cebu and the Philippines, the same places that used to be relegated to the peripheral consciousness of foreign businessmen. The fact that you have made the effort to learn about our country and people, gives me confidence that Philippine-Russia trade relations will flourish.

We have a lot to benefit from this trade relationship. If we carefully nurture it, we could get more than what we expected.

Thank you and good day.

China Changchun Investment and Trade Mission

Around 110 delegates of the China Changchun Investment and Trade Mission are currently in Cebu. They will be here until next week to showcase their products and to check inevstment opportunities in Central Visayas.

The delegates chose Cebu because of the good impression the island created during the 12th ASEAN summit. Changchun and Cebu have also similarities in their passion for business and entrepreneurial skill.

Let me share with you the welcome message during the press conference which I wrote for my boss:

Honorable guests, ladies and gentlemen, good morning.

First of all, I'm very thankful to the Consulate of the People’s Republic of China in Cebu for making this event possible.

It is an honor and a privilege to welcome all the delegates of the China Changchun Investment & Trade Mission.

No doubt China is the economy to watch. And every country around the world is watching this emerging economic dragon with excitement and awe.

Over the last two decades, China’s rise has been modestly described by many as impressive. The country’s economy continues growing and the impact is increasingly seen and felt outside China especially here in the Philippines.

Changchun City happens to mirror the dynamism and entrepreneurial energy of China.

So, this makes today’s meeting significant.

Since the Philippines opened diplomatic relations to the People’s Republic of China in 1979, our bilateral trade has recorded a steady increase.

Trade relations between our countries have been further enhanced with the opening of the second consulate of China in the Philippines here in Cebu.

Delegates from Changchun City have done well by choosing Central Visayas, particularly Cebu, to hold their trade and investment activity.

Cebu is among the most dynamic and most developed areas in the Philippines. In fact, Cebu is the center of economic activities in the Visayas and Mindanao areas. It is also the second largest economic center in the country.

Central Visayas hosts many industries, including footwear, shipbuilding, IT & IT enabled services, electronics, wearables, mining, food processing, palm oil plantation & processing, marine, houseware and furniture. The region is also a major tourist attraction.

In other words, there are many business areas for serious discussion between Chanchung City and Central Visayas.

Central Visayas offers a wide range of world class amenities, such as luxury hotels, beach resorts, first class restaurants and golf courses.

Bohol, the closest province from Cebu and the 10^th largest island in the country, is home of the famous “Chocloate Hills”. Bohol offers clean white sandy beaches, two of the best diving havens in the world and a natural environment rich in flora and fauna, where one can find the tarsier, the smallest monkey in the world..

Bohol, along with Siquijor, is taking-off to become the region’s prime eco-cultural tourist destination.

Bohol’s Investment areas in the identified Special Economic Zone are focused on eco-tourism, light industries and agro-industrial development.

Negros Oriental, on the other hand, boasts not only of natural tourist attractions but also its emerging IT industry. It has recently attracted several Business Process Outsourcing companies.

In closing, let me assure you of one thing: there is no reason why Changchun City and Central Visayas cannot be partners that mutually benefit from each other's trading transactions. And let us bear in mind that there is already so much to gain with the China Changchun Investment and Trade Exhibition held in Cebu.

With that, I hope our delegates’ stay in Cebu will not just be economically productive but also be pleasurable.

Welcome to our beautiful island. Mabuhay!

Getting Cebuanos to invest in the stock market

As a testament to its commitment to advocate financial literacy throughout the country, the Philippine Stock Exchange (PSE), together with First Metro Investment Corp and Philam Asset Management Inc., staged for free a Stock Market Briefing in Cebu on March 10, Saturday, at the Waterfront Cebu City Hotel.

Other than PSE, representatives of various stock brokerage firms were resource speakers. Topics discussed included Investing in the Stock Market, Mutual Funds and Online Stock Trading.

It was one enjoyable afternoon of learning! I am glad I accepted the invitation.

From the way they described stock trading, it so simple and easy to understand that even jeepney drivers or fish market vendors can understand. As my seatmate at the briefing said, it’s just like trading goods; the difference is that you’re handling intangible products.

Risky? Stock trading may be risky but so is any other investment --- even a “sari-sari” store or your “ukay-ukay” business.

Stock trading is definitely better than joining a pyramiding scheme or gambling your money in the lottery where you are at the mercy of fate. What’s more, investing in the stock market gives you a chance to help our SMEs and build our local economy.

I’m happy to report that a significant number of business executives, professionals, entrepreneurs and students attended the PSE Stock Market Roadshow in Cebu last weekend.

NERBAC Kick-off Conference and Workshop

"Minimizing bureaucracy in acquiring licenses and permits will not only improve the country’s business climate but will also reduce corruption."

This was what Trade and Industry Undersecretary Zenaida Maglaya stressed during the One Business Permit and Licensing System Seminar at the Parklane Hotel in Cebu City last Friday.


Streamlining business registration procedures is one of the major programs of the newly established National Economic Research and Business Assistance Center (NERBAC).

NERBAC aims to improve the business and investment climate in Cebu and reduce bureaucratic costs in the business registration process (BRP).

Maglaya said since NERBAC will serve as a “one-stop” processing and documentation center for all documentary requirements in running a business, any form of corruption will be eliminated.

Last week, LGus in Cebu had a workshop and conference with the NERBAC dubbed “Towards One BPLS for CEBU” at the Parklane Hotel Ballroom, Cebu City.

The conference-workshop was a joint effort of the Department of Trade and Industry Central Visayas Office and the German Technical Cooperation known as Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ).

The NERBAC conference and workshop aimed at streamlining and harmonizing the Business Permit and Licensing System (BPLS) in Cebu.

Another purpose of the activity was to find ways for NERBAC to work in tandem with LGU leaders to invigorate further the investment climate in the province. The end-goal is to ease the way for more entrepreneurs to invest and do business in Cebu.

The Unforgettable 12th ASEAN Summit

A month has almost passed since Cebu took the responsibility of hosting the 12th Summit of the Association of Southeast Asian Nation (ASEAN) yet many Filipinos are still talking about it to this day.

Not a few have said that the holding of the Summit in our country proves that as long as we all put our hearts together, Filipinos can achieve success beyond expactations.

As emphasized by Manny Osmeña, owner of Hilton Cebu Resort and Spa, the recently concluded ASEAN Summit held in Cebu tells us three things: one, it proves that as long as we all put our hearts together, we can do it.


Two, it gave us the opportunity to show the world what the Philippines can do as well as it also gave us the chance to showcase to the world our country and our people. Three, with the success of the peaceful Summit, the amount of interest in investments and interest to visit the Philippines is unquantifiable. Businessmen and tourists, who would not normally consider Cebu or the Philippines as a destination, will now have us in their minds as a choice.

Towards One Business Permit and Licensing System

My agency is again busy preparing for another big event: The NERBAC Kick-off Conference and Workshop, bannered "Towards One BPLS for CEBU”.

The NERBAC conference and workshop aims to streamline and harmonize the Business Permit and Licensing System (BPLS) of all Local Government Units (LGUs) and National Government Agencies (NGAs) in Cebu province.

Knowing the different cultures and priorities of LGUs and NGAs here, this is one gargantuan task. If we can pull this off than it would be one for the Guinness Book of World Records.

Another purpose for our activity is to find ways for NERBAC to work in tandem with LGU leaders to invigorate further the investment climate in the province. Our end-goal is to ease the way for more entrepreneurs to invest and do business in Cebu.

At this point, invitations are still being drafted. What makes everything a bit more complicated today is that we are moving some of our staff to the new NERBAC and rearranging our furniture and equipment at the regional office to fill a vacated space.

For those not in the know, the National Economic Research and Business Assistance Center (NERBAC) was created In line with Republic Act No. 7470 to facilitate business transactions in the province and fast track investment entry in the region. It houses representatives from different government agencies that are tasked to process business permit and licenses.

The NERBAC is a one-stop action center that facilitates the processing and documentation of all paper requirements necessary for the establishment of a business enterprise in the country including credit services. It provides prospective entrepreneurs/ investors basic information on various business options that are open to them in accordance with the government’s IPP (Investment Priorities Plan).

eBook publishing as home business

I’m thinking of publishing my own ebook. It seems ebook authors are thriving on the Net these days.

I’ve been reading a lot on ebook publishing and realized that it is the fastest, easiest and cheapest way to get my writing in print. As a business, it has a lot of promise.

Why an e-publishing business?

Self-publishing ebooks and information products has never been easier than with the many different ebook compiler software programs that are available today. Digital publishing is a good alternative in publishing materials aren’t usually accepted by traditional publishing companies.

In this internet age, ebook publishing has created a whole new era in book publishing. Even paperback authors consider eBooks a new, and different marketing channel for their literary work.

The important part of the ebook phenomenon is that any ebook can be converted easily into an audio ebook, one of the fastest growing segments on the Internet today

In addition, ebook publishing is an exciting new way to make extra income from the Internet. In fact there are many sites that will allow writers to list their ebooks for free. This is a great way for me to distribute my ebook with all of my own url codes embedded within the ebook.

Ebook publishing, however, isn’t replacing traditional publishing anytime soon. It is still nice to curl-up in bed with a paperbound book. But the cost saving potential of ebook publishing is convincing. Moreover, ebook publishing looks like fun and could be an ideal home-based online business for me.

Successful 12th ASEAN and 2nd East Asia Summits in Cebu

The Philippines successfully hosted the last ASEAN and East Asia summits in the famous island of Cebu.

Leaders of the Association of Southeast Asian Nations approved a series of declarations on issues ranging from trade to terrorism.

Here are the main points:

* Blueprint approved for ASEAN's first legally binding charter since its founding in 1967. It would turn the 10-nation group into a European Union-style legal entity with binding rules and regulations, and end the tradition of consensus decision-making in all cases.

* Declaration approved on protecting millions of migrant workers from "grave risks of exploitation and abuse."

* Target date for establishing an ASEAN Economic Community, creating a single market of 570 million people, to be brought forward five years to 2015.

* Anti-terror convention signed to make it easier to track and extradite suspects. "Root causes" of terror should be addressed.

* Major powers urged to break the deadlock in global trade talks and move towards an early conclusion of the Doha round, to spur economic growth and alleviate poverty.

* ASEAN leaders urged international lenders to consider swapping debt for equity in projects to enable poor countries to reduce poverty.

Leaders of East Asia reaffirmed their commitment to the eradication of poverty in the region during the 2nd East Asia Summit (EAS) held at the Cebu International Convention Center (CICC).

The East Asian leaders also agreed to increase cooperation in securing energy supply in the region as an important pillar of their common effort to further promote the region’s economic growth, one of the fastest in the world.

All the agreements made during the summits were people-centered. It may as well be because countries participating represent around three-fourths of world population.

Some news sources say that the recent summits were the most productive in the history of the ASEAN. It should be because the summits lasted from December 2006 to January 2007 (just kidding!)

A large part of the success of the two summits may be attributed to the cooperation of Cebuanos and volunteers from other provinces, as well as the generally peaceful rallies. As noticed by many people, most members of militant groups who came to Cebu for the rallies were from Metro Manila. The police said that local protesters behaved better unlike their counterparts from Luzon who came here to join in mass demonstrations.

I’ve heard reports that some of these protesters were armed with steel bars wrapped in newspapers during one of the rallies. The intention of protesters from Manila was obviously not to have a peaceful protest in this island but to provoke the police here so there would be a scuffle to call attention to themselves.

Good thing that the presence of the Cebu City mayor during the rallies prevented any violent dispersal. The mayor also noticed that those who led the rallies were not from Cebu and that they did not have the support of Cebuanos.

After seeing how these groups carried themselves, more and more Cebuanos have a negative view of militants and leftists. Cebuanos would rather mind their business and work to feed their family. I'm glad to know that our locals have enough good sense to stay away from trouble.

Assets and Liabilities

”The reason why most Filipinos are languishing in poverty is because they are financially illiterate and they think with their emotions.”

That was the comment made by a foreigner friend who used to work as a stock broker. He found it shocking that some local professionals (doctors, dentists, lawyers, etc.) can’t even distinguish between assets and liabilities. Moreover, he couldn’t comprehend how these people managed to live on just one source of income considering that they are supporting not just their own families but also their siblings’ families.

According to this foreigner, assets are anything that brings money in the pocket. Liabilities are anything that takes away money from the pocket. It’s as simple as that.

Here is the interesting part ---- his own examples of liabilities: house, cars, clothes, jobless husband / wife, high spending girlfriends/ boyfriends, dependent relatives, children, credit cards.

His examples of assets are bank notes, treasury bills, dividends, royalties, bonds, intellectual property, land/ real estate

The problem with most Filipinos, he observed, is that they delude themselves into believing that a house, cars or children are assets. “Just because these things make you happy doesn’t mean they are assets. Once people accept this fact, they’ll realize the need for more than one income to support their liabilities and keep ahead of expenses.” He immediately clarified that people need not get rid of all their liabilities because that would be impossible. How about adding income sources and decreasing expenses, he suggested.

How can they get other income sources when they hardly have enough time for themselves, I asked.

He chuckled and said that income doesn’t always come from regular jobs, those that pay you for your time. “Haven’t you heard of passive income or portfolio income? Examples of passive income are rental payments, royalties from creative or information products, patents, dividends from shares holding and limited partnership in enterprise. Portfolio income include proceeds from stocks, bonds, equities and t-bills. These are revenue streams that do not require your direct personal involvement in order to keep coming in.”

He glanced at me and paused to make sure everything he said sunk in (This cold blooded bloke sure knows what he is talking about!).

"Do you want to be able to take time off whenever you want to, without worrying about what's going to happen to your current job or business, earn more and work less?”

Good. So do I, he added, that is why financial literacy is important.

“Poverty will not be solved with more money if the mindset of poor people has not changed. Just listen to those street protesters who expect government to feed them and provide them shelter”, he intoned. “Those poor people will forever be dependent on someone for their needs, living a pathetic hand-to-mouth existence. Even if you give them a lot of cash, they'll spend it all because that is how they were programmed to handle money. To them, nothing is ever enough. And look at those office workers who constantly rely on loans to cover their huge expenses and to fill the urge to buy things they don’t really need.”

” They are trapped by their own ignorance and unbridled emotions”, he said with a smirk.

”Instead of wasting time gossiping about their neighbors or blaming the government, Filipinos should be talking to stock brokers, financial analysts, tax specialists, bankers or anyone in the know about wealth building. If not, they can make productive use of their time teaching their children to be self-reliant.”

There is really a need for parents to show children how to create and handle money, my foreigner friend underscored, because financial education is usually obtained in everyday experiences not in schools... especially not in Philippine schools.

What can I say, he was right. Truth hurts though.

Sinulog Bazaar

Next week, my office will be assisting the Sinulog Bazaar at SM Cebu City Mall and the ASEAN trade fair at the Cebu International Convention Center.

The bazaar & trade fair will run until the third week of January to give savvy shoppers enough time to rummage through the shelves and discover finds.

Because of the Sinulog bazaar’s wide array of offering, the activity consistently draws market from all sectors and ages. In fact, it not only attracts retailers in search for something different, it has likewise been a favorite destination for small and medium entrepreneurs looking for suppliers.

This year, majority of the exhibitors are manufacturers of local-made products who have the capacity to supply wholesalers.

It seems that Cebu continues to be an ideal site for trade fairs and bazaars, particularly during the Sinulog Celebration.

This has been proven by the number of trade fair and trade events last year. Many of the trade fair participants in past Sinulog years were able to generate large sales.

The Sinulog side events, described by business moguls as a marketing phenomenon, attracts a staggering number of vendors and buyers (local and foreign). Huge, jaw-dropping number of small vendors swarming all over our streets is a common sight before and during the grand mardi gras.

The Sinulog trade fairs/ bazaars have also provided exhibitors the opportunity to test the local market for their products and to establish linkages with prospective clients and distributors. Retailers, on the other hand, have found suppliers and new products in these trade events.

Terminal Report on the Visayas OTOP Trade Fair 2006

I'm usually saddled with preparing the terminal reports of almost all major activities organized by my office. Here is one of those reports. I'm posting it because it comes in handy when I want to refer to it in the future. It will also give you an idea of the results of our efforts. Note that my office was only given a very short time to do the publicity for the activity -- so don't be shocked by the low sales figures.

FINDINGS

The trade fair was able to accomplish its major objectives, namely: marketing the OTOPs of municipalities in the Visayas, building awareness among the general public on the OTOPs of municipalities and encouraging LGUs to actively participate in the OTOP program.

Focus on the One Town, One Product (OTOP) program as a development and branding strategy was reinforced. In fact, products of municipalities in the three Visayas regions were given the spotlight during the trade activity.

With one-hundred-seventy exhibitors from regions 6, 7 and 8, the recently concluded Visayas OTOP Fair held in Cebu generated interest from buyers, garnering total sales of P4, 097,824.18 in cash and booked orders.

Trade exhibitors generated cash sales of P 1,329,480.18 with booked orders of
P 1,401,994.00. Total orders under negotiations reached P 1,401,994.00.

Top selling region was Central Visayas which raked-in total sales of
P 2,691,337.90.

Bannering the theme “A Feast for the Senses”, this year’s Visayas OTOP fair brought together exquisite products such as hand-woven fabrics of raffia, pina and sinamay, fashion accessories, footwear, a generous array of exotic items, home furnishings, decors and processed food.

Apart from the 66 Central Visayas micro and small enterprises displaying their crafts, the showcase also featured 28 exhibitors from Eastern Visayas and 76 from Western Visayas.

A total of 314 guests attended the trade fair including Keynote Speaker Secretary Mike Defensor, Guest Speaker and DTI Secretary Peter Favila, OTOP Program Manager and DTI Undersecretary Carissa Evangelista, SMEDSEP-GTZ Program Manager Martina Valhaus and PCCI President Donald Dee.

There were two side events during the trade fair: Go Negosyo Forum and Food Safety and Packaging Solutions Seminar. The Go Negosyo Forum featured Julie Gandionco of Julie's Bakeshop, Jay Aldeguer of Island Souvenirs, Justine Uy of Profoods, and other successful OTOP entrepreneurs from Cebu. The Food Safety and Packaging Solutions Seminar featured experts who provided an overview on food safety and one-on-one consultations for the small and medium entrepreneurs. The packaging seminar also offered food manufacturers with innovative product design ideas.



Below is a copy of the trade fair opening program and a synopsis on the speech of secretary Mike Defensor and DTI secretary Peter Favila.

OTOP Visayas Trade Fair

November 23, 2006

10:00 to 11:05 AM

SM Trade Halls, Cebu City

10:00am	Doxology and Invocation
10:05	National Anthem
10:10	Opening Remarks by Undersecretary Carissa Cruz-Evangelista DTI ROG Usec/National OTOP Program Manager
10:20	MESSAGE Secretary Peter B. Favila DTI
10:30	Introduction of Guest of Honor
10:35	SPEECH Secretary Mike Defensor
11:00	Ceremonial opening Ribbon Cutting Sec. Mike Defensor to be assisted by Sec. Peter Favila, Usec Carissa Evangelista, Amb. Dee Donald (PCCI), Mr. Francis Chua (FFCCI), Mr.Sergio Luis Ortiz (Philexport) and other VIPs Secretary Mike Defensor To signal the opening of the trade Fair by blowing a whistle to start the Mardi Gras Secretary Peter B. Favila will make the intro drumming. LGUs / VIPs will blow whistles while Ati-atihan dancing is going on
11:05	Photo opportunity with Sec. Mike Defensor

Speech of Secretary Mike Defensor (Summary)
Opening Ceremonies: 1^st OTOP Visayas Island Trade Fair
SM Trade Halls, Cebu City, 10:00 A.M., 23 November 2006

More than a thousand jobs and millions of pesos worth of product sales have already been generated through the "One Town, One Product" (OTOP) project since its inception in the country two years ago.

The OTOP, a project implemented by the Philippine government was able to engender employment opportunities and propel several locally produced products to marketing success.

If the LGUs, DTI & other cooperating agencies maintain these gains of the OTOP, better opportunities would undeniably be brought to the provinces and rural areas in the coming months.

Our government has always supported micro, small and medium enterprises (MSMEs) through the OTOP project. In fact, the OTOP is one of the priority projects of the Arroyo administration to alleviate poverty by encouraging entrepreneurship and creating more jobs. OTOP-Philippines assists MSMEs to manufacture, offer and market distinctive products or services through the use of indigenous raw materials and local skills and talents. The program also offers a comprehensive assistance package through a convergence of services from local government agencies (NGAs) and the private sector. This includes business counseling, skills and entrepreneurial training, product design and development, appropriate technologies and marketing.

With the OTOP project, the government is setting the trend for the preparation of processors to meet international standards for a more challenging and better vista in their entrepreneurial careers.

Judging from the diversity of products in this trade fair, it is clear that a wealth of opportunities awaits our entrepreneurs in the Visayas. The choices are becoming more varied since each municipality in each province has its own unique OTOP.

I understand that products and services prioritized by our town mayors have competitive advantage over other products and services of other provinces and cities. Boracay Island, for example is a major tourist destination of the country and brings in the bulk of local and foreign tourists to Panay Island, while Cebu’s furniture has already captured the foreign market and won awards for many Cebu furniture makers.

At this point, allow me to thank and commend the LGUs of the Visayas as well as other cooperating agencies for your very active participation and support in identifying and developing OTOPs for your respective areas.

A shining illustration of a face of OTOP and of a successful convergence or inter-agency cooperation in the selection of an OTOP is the case of the Biliran Integrated Coconut Industry, Inc. This enterprise utilizes the waste products of copra production -- coco husks and shells – to produce coco fiber and coco dust. Coco fibers are made into liner sheets to produce houseware and décor items while coco dust is mixed with decay-enhancing substance and agro-waste to produce natural fertilizer. Coco shells are also cut into shapes and used as accents for handcrafted décor items. Because of abundant and reliable raw material supply and high local and global market potential for these products, the Municipal Mayor of Naval, Biliran – with the concurrence of the OTOP Task Force members -- composed of the DTI, DOST, TESDA, Philippine Coconut Authority (PCA), and Fiber Industry Development Authority (FIDA) – selected in April 2005 coco by-products processing as the OTOP of the Municipality of Naval. And this was eventually chosen as the model Provincial OTOP of Biliran. The OTOP Task Force interventions came in terms of linkage with equipment and materials supplier, business counseling, skills and entrepreneurial training, productivity training, technology assistance, product design and development, local study missions, and marketing assistance and facilitation thru local national trade fairs.

Today, the enterprise plans to expand into the export markets of Europe and China, up production by getting additional equipment, set up raw material buyer centers in all municipalities of Biliran, add another product line such as VCO, vinegar, coco charcoal and other coco-based food products, and set up production units in other municipalities.

What a remarkable and inspiring experience, don’t you think so? And this success story can be replicated many times over in many more municipalities in the Visayas to produce more success stories thru the convergence and intervention of OTOP mechanisms.

Indeed, the development of OTOPs represents an opportunity for dynamic collaboration among local LGUs, NGOs/private sector groups, the DTI and other government agencies to promote wide-based grass-roots entrepreneurship as well as the generation of investments, incomes, livelihood opportunities and direct and indirect employment.

Although the idea started in Japan, Filipinos, through their active and passionate participation, have successfully adopted the OTOP concept and made it their own.

But that should not keep us complacent. Let us continue to empower and position our people as world-class entrepreneurs, capable of competing with their international counterparts, and ready to avail of the opportunities for growth.

The Arroyo administration remains firmly committed to support the LGUs and business community of the Visayas in fortifying your region’s competitive edge and creating sustained stability and prosperity for its citizenry.

In closing, let me emphasize that much good can be expected from a united people with passion to achieve a common goal. And with our business friendly environment, we will continue to create jobs, livelihood opportunities, and incomes, and improve the quality of life of our people, particularly those in the countryside.

Message of DTI Secretary Peter B. Favila (Summary)
Opening Ceremonies: 1^st OTOP Visayas Island Trade Fair
SM Trade Halls, Cebu City, 10:00 A.M., 23 November 2006

Top-billed by Boracay, Cebu, Bohol (and Palawan), Central Philippines - as the President has recognized, attracts more than half of the foreign tourists that come in to the country. And thus, as the President said, the priority for your super region is tourism investments.

Of course, with your high tourism investment potential come the products you offer – since the other side of investments is trade. The Visayas has the good fortune of being blessed not only with magnificent natural wonders but also with abundant resources and highly skilled, creative and talented craftsmen. These factors represent a wellspring of opportunities for developing SMEs that harness the strength of each province or municipality.

The DTI has been working in partnership with your region’s local officials in identifying your regions’ priority products under the President’s One Town, One Product (OTOP) program which seeks to develop more countryside products and business activities through micro, small and medium enterprises.

From a national standpoint, the 16 regional model OTOP products in 2004 have now spawned 83 validated provincial OTOP products which in turn have: developed 3,000 new MSMEs, generated 102,423 new jobs, exported US$113.98 million, and sold P2.19 billion worth of OTOP products in the domestic market. Likewise, 130 OTOP Pasalubong Centers have been established in airports, bus terminals, sea ports, train stations, and there are currently 1,129 market outlets all over the county where OTOP products can be found.

Let me underscore that essential to the success of OTOP is the institutional support of its stakeholders. Up until the August, 459 Memoranda of Agreement have been signed with partners from the cities and regions. Recently, we have signed MOAs with the following institutions whose functions are critical to the development of OTOP:

• League of Municipalities of the Philippines to include OTOP in every town’s Municipal Development Plan, advocate OTOP in their municipalities, and make available its facilities to assist in the development of OTOP entrepreneurs;

• National Livelihood Support Fund (NLSF) to provide a special financing window for our OTOP MSMEs and other capability-building interventions through its resource development network;

• Philippine Information Authority (PIA) to assist in the creation of the OTOP Communications Plan and to actively participate in the promotion of OTOP products and MSMEs in the tri-media;

• Air Transportation Office (ATO) to make available its facilities for OTOP special settings and OTOP product counters;

• Technical Education and Skills Development Authority (TESDA) to provide training for OTOP MSMEs.

• We expect more support from different organizations to partner with us in the development of OTOP. For example, later in this program, we shall witness the signing of MOAS between the DTI and the following:

• Union of Local Authorities of the Philippines (ULAP)
• Philippine Chamber of Commerce and Industry (PCCI)
• Philippine Exporters Confederation (PHILEXPORT)
• League of Cities of the Philippines
• Philippine Center of Entrepreneurship (PCE)

To these institutions, let me say thank you very much for your willingness to support and serve as our partners in developing, implementing, and promoting the OTOP program.

I am also proud to remind you that in addition to the grand opening of this OTOP Visayas Trade Fair, we will also be launching this afternoon the Cebu City National Economic Research and Business Assistance Center. This Center will assist prospective entrepreneurs and investors in the country towards enhancing the process of business formation and entrepreneurship. The center will also facilitate the processing and documentation of all requirements in the establishment of a business in the country and link prospective entrepreneurs to credit services.

Likewise, we will open the DTI Business Technology Center, in partnership with Intel Microelectronics Philippines and Globe Telecom, in recognition of the importance of ICT in the development of one’s business. The BizTech Center serves as a one-stop IT help-desk to help MSMEs understand the benefits of technology in their business, providing access to technology tools, experiential marketing and training to allow them to operate more effectively and be more competitive using technology. It will offer training from SME counselors with modules done in coordination with Intel and with the University of the Philippines Institute of Small Scale Industries (UP ISSI) and provide computer training through the PCs in the center.

So there – a lot of good things in the offing for the Visayas SMEs.

In closing, allow me to encourage our entrepreneurs here to continue availing of DTI’s many programs for SMEs. DTI would be happy to assist SMEs in their continuing process of evolution – from the development of their products and designs, to their upgrading and modernization to suit current market trends, to acquisition of vital technology for production, to obtaining various types of financial assistance and credit thru our SULONG program and its various innovations, to market testing and promotion thru trade fairs and buyer-supplier matching activities.

RECOMMENDATIONS

It is recommended that the agency’s trade fairs be timed with the holding of fiestas in provinces such as the Sinulog of Cebu and the Sandugo of Bohol or any large, high profile events to maximize visitor traffic.




It is also recommended that trade fairs be held in shopping malls since these venues are natural attractions to buyers.



FUTURE PLANS

DTI-Central Visayas Office, together with the Regional Operations Group, plans to re-discuss relevance of trade fairs, rethink present strategies to promote local products and explore new marketing channels.


EXHIBITORS

Please see attached sheet.

BUDGET

The activity incurred a total cost of P___________.