2nd MANCOM in Bohol

We traveled from Cebu to Bohol via Supercat seacraft for our second Management Committee Meeting (MANCOM) last May 5 - 7.


Other than tackling official business, what did we do ?

I and my officemates watched the concert of Jed Madela, Richard Poon and Sam Milby (I like Jed’s choice of songs and his rendition of my favorites. In fact, I'm impressed with his singing voice. He has a wide vocal range and a clean, clear, smooth voice ... good for a cappella or with simple instrumental accompaniment)

I also remember eating the Buzz (Beehive Farm) halo-halo, an all natural Filipino treat made of home made ice cream and fruits in season, at the Island City Mall … yummy. The Island City Mall is a bit crowded nowadays with the increasing number of traders and mall visitors. It's about time for mall expansion.








By the way, the Baclayon Bed and Breakfast hotel where we stayed has a homey ambience and a good view of the Bohol countryside and crystal blue sea.

Family

I attended the 5th reunion of our clan last weekend. It was the usual family gathering except that the secretariat gave us an activity program with a diagram of the family tree attached and a list of officers of the family cooperative --- unusual for someone like me who hadn't attended a family reunion in years.

I noticed that it was organized the way anyone would handle a national conference. And indeed this is a conference of relatives from Luzon, Visayas and Mindanao. The documentation staff also took photos of the event using a cellphone and digital camera for easy uploading on the family website. They distributed compact disk recordings of past reunions (our family reunion is every two years) which I haven't yet seen until now since my computer broke down. They also took the opportunity to update the list of contact information of relatives (cellphone numbers and email addresses) .... how's that for family efficiency and organization?

Change as a way of life

”You are where your actions and choices have taken you.”

This means that every minor or major decision you make will somehow affect your future ---- whether this be your choice of school, friends, husband/wife, job or public official Or whether you binge on junk food, sex or drugs.

I have the feeling that everyone knows this universal law of cause and effect; some just do not want to be responsible for their own lives. They blame just about everyone for their pathetic situation - God, family, society, government etc. except themselves. You meet these people all the time..they are what you call emotional and financial suckers.

I’m bringing up this topic because I’ve just met one emotional sucker today, Yep the one who rants on and on about how life can be so unfair, as if life has the power to control people's actions.

You can say they are their own worst enemy… those who seem to be enslaved by their vices, those who can’t seem to break a destructive habit. But what is habit anyway but action that is repeated or rather mindlessly done.

Why can’t many people make a habit of continuous improvement ? Doing minor aspects of their life differently and try to see if it works better for them. I haven’t yet met anyone who has embraced change … positive change as a way of life. I’m not talking here of earth moving, revolutionary change but just minor modifications in behavior or appearance.

Who knows, these tiny everyday alterations or modifications could in the end change us for the better, in turn affect the attitude of our family or society towards us and, if luck would have it, contribute to world peace.

Just a thought.

Curbing Philippine Population Growth

The 2008 Philippine population report of the National Statistics Office came out recently. It indicated that population growth in the country, considered one of the highest in the world with a baby born every three minutes, has slowed down for the first time since the 1960s.

Finally, after years of desperate effort from government to slow down baby-production in this country, there is a positive sign that Filipinos have decided to turn their attention instead to activities that are financially rewarding.

It’s about time since there is currently a global food crisis and a looming environment problem.

The Asian Development Bank put the Philippines' population growth rate as of 2006 at 2.1 percent, similar to Laos and Malaysia but higher than Thailand's 0.8 percent rate, Vietnam's 1.4 percent, and Indonesia's 1.3 percent. The Philippines ranks as the second most populous country in Southeast Asia next to Indonesia, which has 222 million people.

More liberal and like minded individuals are hoping that the growth rate will ease further to 1.95 percent or better yet 0.8 percent (similar to Thailand) by 2010 in what economists say would tremendously help the economic development of our country.

An average Filipino family has about 5 members. This is actually more than what a single breadwinner can handle. The good news is that the growing middle class and more opportunities for education has increasingly led Filipinos to delay marriage and families.

A friend who chose to remain single was wondering what the benefits are for having children… considering the enormous amount of money required to raise them. “Are we having children because our society or family expects it?” I said it’s probably because they want companionship or someone to take care of them during old age. She suggested getting a puppy or hiring a caregiver or better yet have more "real" friends who you can treat as family… it’s cheaper. “Besides having children, doesn’t guarantee you’ll get what you want.”

I'm wondering whether some Filipinos are in denial about the population problem. We blame pollution, deforestation, climate change for our environment woes but fail to make the connection on population growth.

Costs of having many children are shouldered not just by the family and the community, but also the environment. Crowded places are heavily import-dependent for the basic needs of their people such as water and food. We need areas to grow rice, corn, fruits etc. We also need space to store water.

Come to think of it, is retaining a natural environment that nourishes both body and soul important to Filipinos ?

Workshop on Value Chain Approach & BDS Market

We recently participated in a workshop entitled Accessing Markets Through the Value Chain Approach and Creating A Functioning Market for Business Development Services (BDS).

The Value Chain Approach aims to open global markets for SMEs. This necessitates a systematic analysis of the various functions along the value chain of priority subsector. A value-chain is an institutional arrangement linking and coordinating producers, processors, traders and distributors of a particular product. It is an economic model which combines the selection of a product and the appropriate technology with a particular way of organizing the actors in order to access the market.

Business Development Services are non-financial services that improve the performance of enterprises, their access to markets and their ability to compete. Effective and responsive BDS are considered as means to achieve higher productivity and efficiency of SMEs.

In the traditional Philippine model for business development, government implements tasks which can be done by BDS providers in the private sector. This workshop was meant to wean government away from doing the BDS tasks such as trade fair organization and market / product development. Hoepfully, in the end, governemnt will concentrate instead on matching BDS providers with SMEs.

What did I find memorable in that workshop ? the LUNCH BUFFET at Parklane Hotel !!

Kidding aside, the workshop was an eye opener and very useful for the office staff. However, I just love so much the hotel's lunch buffet. Maybe I should go back there during my free time.

Success of the Cebu Investment Promotions Center

I recently read on the Net the opening remarks of Rex C. Drilon II, President of the Iloilo Economic Development Foundation and Chief Operating Officer of Ortigas & Company on the occasion of the launching of the book “Iloilo: A Rich and Noble Land.”

Drilon mentioned that the new Iloilo Investment Promotions Center (IIPC) was modeled after the tri-sectoral Cebu Investment and Promotions Center (CIPC) of Cebu city and province.

After 18 years, the Philippines and the world has finally noticed the efforts of CIPC. I remember several years back when I assisted CIPC in making their presentations. I was still in pony tails and fresh from college. Everyone then was still trying to get acquainted with the work involved. At the same time, they had to contend with a lot of criticisms from the public. But look at them now !

Of course, CIPC's success came with the help of other factors. The economic success of Cebu is also the result of positioning, serious planning, an industrious population and local governments which understand the needs of business. I've always known that electing the right government leaders (not voting based on irrelevant traits such as popularity, physical desirability, relationship etc.... traits that poor, uneducated Filipinos usually consider) is crucial to economic success.

I constantly get exasperated when some people in the country vote for "artistas" simply because they are popular or nice to them. Why vote for an inept person simply because he/she is nice to you? You are not looking for a wife, husband, boyfriend or girlfriend when you vote. You don't live in the same house with your mayor, governor or president. As long as candidates to government positions are capable and can perform their jobs well, what they are in private is none of our business.

The Economic Boom and The Filipino

If you are a Filipino, here is something to really ponder on. I do agree with Mr. Joey Concepcion, CEO of RFM Corporation and one of the movers of Go Negosyo, on this statement:

“While it is true that the economic boom is happening, it is for those who want to take part of it. You just can't be a citizen of the Philippines and do nothing and expect that if we see a Philippine economic boom, you will instantly get rich…no way my friend, you have to do something! Either invest or start a business.

For those successful in business it’s time we follow the big brother approach so the small would- be entrepreneurs will have a chance to succeed and also partake in the economic boom of this country.

So we all need to develop and offer new business ideas to differentiate from current business models and not just have a “me too” type of business. This is where we hope Go Negosyo thru its vision of “teaching a nation how to fish…” will contribute by getting the big brother mentorship going and the government playing the role also of a father teaching his son how to fish.

I pray that the Go Negosyo advocacy will inspire people to get into business and those who have been successful should in return help others. Thru this process, we hope to see a more vibrant and more prosperous entrepreneurial nation.”
--- Joey Concepcion (February 2007)

So for those Filipinos who still think that wealth is something that just drops from heaven, wake up and get real !

NERBAC-Cebu One-Stop Business Registering and Licensing

Link


We're aggressively promoting the services of NERBAC-Cebu.
I'm suppose to promote the services of NERBAC-Cebu on local radio programs but am having difficulty getting free ads.

Cebu NERBAC is being made a pilot project by the Philippine government for fast business registering and licensing.

Created through the Republic Act 7470, NERBAC is an all-in-one center that houses all concerned agencies in the government. It processes all regulatory requirements in starting a business and provides investments information on Central Visayas.

The NERBAC-Cebu was formally opened to the public in year 2007.

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.

We hope businessmen will support this government move and have their businesses registered at the NERBAC-Cebu. We also hope that other NGAs, especially those agencies that have to do with business registering and licensing, will also support by providing a permanent staff to the center.

St. Benedict's Monastery in Carmen, Cebu

One of the highlights of the Familiarization tour for tour guides on the One Town One Product is the visit to the St. Benedicts Monatery.

Some people may not know this, but Carmen is the mountainside home to the Benedictine priests in Cebu. The Benedictine monastery is one of the tourist attractions in Carmen.

We arrived at the site in the afternoon of March 3. The place is quiet, tranquil and a perfect place to meditate. The photos I've taken are worth a thousand words.

OTOP Familiarization Tour in Cebu North

A total of 35 participants joined the Familiarization Tour for Cebu Tour Guides On The One Town One Product (OTOP). Other than tour guides, there were representatives from the media, tour operators, DOT and DTI Staff who are involved in the implementation of the OTOP projects.

As may be expected in tours for the OTOP, activities and products were interesting enough for tourists. The tour guides were, in fact, requesting us for an OTOP tour in the western part of the Island.

Cebu has many towns where tourists could immerse themselves on the local culture. The province has been consistently ranked as the top favored tourist destination in the Philippines among foreign travelers based on the recorded number of international tourist arrivals by the Department of Tourism. It's well known products include fashion accessories, housewares, gift items, footwear, furniture, fresh and processed foods among others.

The OTOP product or service in each town and city in Cebu captures the heart, culture and skills of the people in the locality apart from indicating the indigenous raw materials within the area.

For those not in the know, OTOP is a priority program of President Gloria Macapagal-Arroyo to promote entrepreneurship and create jobs. Through OTOP, local chief executives of each city and municipality take the lead in identifying, developing and promoting a specific product or service, which has a competitive advantage.

Going Global

At this point, I want to expand my horizon and want more global interactions, international travel, world knowledge, multicultural food and experiences ... in fact, I want at this very moment the world as my office. The world is such a very interesting place ... I shouldn't be stuck only in the Philippines.... I'd like to be able to freely hop from one place to the next and interact and get to know as many people in different countries.


No wonder I like very much the internet.... it's a virtual way to get connected to the world.

Hmmmm... this could probably a result of being cooped-up too long in this office and looking at endless paper work .... sigh

Increasing Business In Municipalities And Cities

I recently made a speech for my boss. This was presented during a gathering of LGUs in Bohol. I might as well share it with you. Thsi is part of what I usually do at the office ...

_______

Honorable guests, ladies and gentlemen, Good Morning.

My talk for today will be divided into 2 topics: SMED Plans and BPLS.

In the recent World Competitiveness Survey conducted by the World Bank, the Philippines ranked 126th over 175 countries on the first outcome indicator which is to enable by reforming Business and Investment Enabling Environment (BIEE). For the rest of the indicators the Philippines ranked very low giving the country a bad image.

On closer look at the details, World Bank considered the business registrations facilitated by Law Firms and Accountancy Firms where in most of these are big companies and not MSMEs. The World Bank referred to Manila as the benchmark for their survey in the Philippines.

Due to this condition the Office of the President created a National Competitiveness Council with DTI as member to address this very crucial issue. This same condition showed that there is a need to grow closely together at the local level of the region and at the provincial level to make our efforts united and harmonized.

It is widely accepted that small and medium enterprises or MSMEs play a significant role in the economic and social development of a country since it account for 99.7 percent of total establishments and yet they only employ 70% of the labor force and contribute just 32% to GDP. Possible reasons for this occurrence is that the Philippine SMEs may be regionally and globally uncompetitive, productivity and structural limitations may have prevented SMEs from maximizing their potentials, SMEs may have been facing difficulty accessing funds and that SMEs may have limited knowledge about market opportunities and access.

These are problems that all of us in government need to address immediately in order to attain maximum economic growth.

The Small and Medium Enterprise Development (SMED) Plan 2004-2010 envisions making the SME sector the main protagonist in the country’s quest for economic growth by 2010. Launched in July 2004, the Plan is congruent with the 10-point Agenda of President GMA which seek to increase the number of new SMEs, to graduate SMEs to the next level, to create 6-10 million jobs, to triple loans to SMEs, and to increase the value of SME contribution. To achieve these goals and objectives, the plan outlined eight key strategies aimed at developing the SME sector at the firm and industry level and to improve the SME operational environment. These are: promote international competitiveness, promote expansion / diversification of existing industrial structure, promote expansion of growth industries, provide support for linkages between SMEs and leading Philippine industries, help improve access to financing, streamline programs and incentives, streamline implementation of SME policies and build the capacity of institutions assisting SMEs.

Forty-eight activities were identified to carry out these strategies. Partner agencies consisting of government and non-government institutions were organized into Activity Groups (AGs) in accordance with the nature of assistance they provide to SMEs. The 48 activities were streamlined and reduced to only 12 AGs as similarities in their envisioned deliverables were identified. These AGs include the: SME Information Support, SME Counseling and Advisory and Upgrading of SME Centers, Facilitating Partnership/ Linkages for Competitive Support, Enhanced Support for Trade Fairs and Access to Market Services, Product Development and Design Services, Industry Productivity and Quality, Information Technology Appreciation and Application, Entrepreneurship Training, SME Financing Support Program, Streamlining of Business Registration Requirements, Advocacy of SME Related Laws, and SME Institutions Restructuring.

To advocate support and participation in the implementation of the National and Local SMED Plans countrywide, the Bureau of Small and Medium Enterprise Development (BSMED), as Secretariat to the Small and Medium Enterprise Development Council (SMEDC), proposed the “Harmonization of the National and Local SME Development Plans”. In this undertaking, a regional workshop/focused group discussion, and local/provincial consultation and harmonization workshops were conducted in coordination with the Provincial SMED Councils (PSMEDCs) through the DTI Regional/Provincial Offices. In the conduct of said workshops, a local consultant/facilitator was tapped to facilitate, document and integrate the process to come up with Local SMED Action Plans.

It is a reality that all development efforts in the country are anchored on whoever is the incumbent executive, for the local level the provincial governor, for the cities the municipalities are the mayors and therefore a need to get their buy-ins is a must. We have to be realistic and at the same time practical because it’s a waste to be doing strategies which are not getting the cooperation of our local executives.

Our SME development plan went through a process of harmonization because of the many changes that have happened in our political and economic landscape. The specific objectives of the SMED Harmonization Regional Focus Group Discussion Workshops with Stakeholders were to validate the National SMED Plan results framework, validate the Regional SMED Plan results framework, identify a Portfolio Manager and Portfolio Champion.

The succeeding workshops produced proposed solutions such as (1) promote expansion / diversification of existing industrial structure, (2) promote expansion of growth industries, and (3) provide support for linkages between SMEs and leading Philippine industries that are not at the level of the provinces. The fourth solution is (4) to help improve access to financing needs that need LGU’s full support. It was also proposed that assistance be provided to mezzanine-micro enterprises for them to graduate and become SMEs.

The current SMED Plan goal is for the number of SMEs to increase and to generate 6 – 10 million jobs anchored to the 10 point agenda of PGMA. On the other hand the SMED Plan Strategic Development Goals consist an increase from 32% to 40% SME GVA by 2010; there will be more value and volume of production for priority industries, there will be an annual 16% growth of SME-exports and the number of progressive micro-enterprises increased.

Our MSMEs are facing the challenges of globalization that is why the demand for excellence and efficiency is an urgent reality. Technology is fast improving and expanding in its application to enterprise operational management.
It has been asserted that good governance and accountability are preconditions to successful economic development.

In books and papers on accountability, the concept is tied with being answerable,” “capable of being explained,” and “liable to account.” Further, accountability is identified as the central and perhaps the most powerful element of good governance which relies on clear rules of transparency.

A 2006 survey by the World Bank involving 120 cities and 12,400 firms in China discovered that efforts by local governments to improve the business climate is directly related to progress made in achieving social harmony. And, equally relevant, the study proposed that simplifying business licensing and other start-up procedures could result in significant gains in firm productivity and/or foreign investments. All these ingredients revolve around the concepts of accountability and transparency.

Clearly, local governments have a major role to play in business development, job generation and social harmony. One of the key actions is making it easy for the entry of business players. In this aspect, streamlining business permit and licensing system (BPLS) is at the core, although it is only the first among many reforms that need to be put in place to improve the investment climate.

On February 23, 2007, LGU representatives from four cities and 26 municipalities in Cebu province convened at the Parklane Hotel in Cebu City to come up with strategies to streamline the business permit and licensing system. It was their best shot at identifying major constraints in BPLS as well as the necessary reforms that will simplify business processes.

The exercise proved that there were, indeed, striking differences in the LGUs’ implementation of their respective licensing systems.

Here are slides to show you the typical process flow for registration and renewal of business permits.

It has been observed that the process for applying for a new business permit and renewing old permits are very similar. Old businesses have to go through the same cumbersome process of getting requirements year after year. As reflected in the slides, a new applicant has to go back and forth from the different offices in the LGU to the Treasurer’s Office.

Expectedly, LGUS should make life easy for those applying for a Mayor’s business permit since it is through local taxation that they can boost their local coffers. Yet, it is perhaps the most bureaucratic, graft-ridden, and time-consuming procedure thereby discouraging business owners from acquiring a permit. This has led prospective investors to simply go “underground” and thus deprive the local government of much needed tax revenues.

Over the years, the processing of the Mayor’s Business Permit has somehow advanced from manual to semi-electronic, thereby making the process a bit faster, yet more simplified. It is also in line with the Presidential agenda of creating an enabling environment for business and the Anti-Red Tape Law.

It is important to understand the basic purpose of the business permit.

For new businesses, the main task of the local government is purely regulatory. For renewal of business permits, the LGUs’ primary purpose is revenue collection and the rest of the year is allotted for its regulatory functions.

Processing for a new application for a Mayor’s Business Permit should be fast and simplified to ensure efficiency for both the attending LGU personnel and the applicant. The latter simply has to follow the prescribed procedures.

In the process of modifying the procedure, the LGUs identified the documentary requirements which are absolutely necessary in the processing of the application for a new business permit

The bigger challenges in business registration present themselves when one requirement is made out as a prerequisite for another. It sets off an almost circus-like state of affairs when the business applicant hops from one agency to another and then back again. This is what usually happens when the process involves interfacing among LGUs and NGAs. The LGUs also complain about the many clearances and signatories required by the NGAs.

Interestingly, all this nearly chaotic situation revolves around only two types of business permit applications: new and renewal.

Application for a new business permit entails more steps, documentary requirements and thus longer processing time. Among the requirements are screening, tax, labor, social security, safety and health and environment-related.

Renewals are almost a breeze compared to new applications, especially with the presence of the Business One-Stop Shop. Some reforms have already been instituted by selected LGUs, as in extending the renewal period for up to six months.

The next two slides show you the results of LGU workshops in Cebu.

One major result of the BPLS workshops was the streamlining of the BPLS at the National Economic Research and Business Assistance Center (NERBAC), a one-stop shop for business registration and licensing in Cebu.

DTI hopes that NERBAC will motivate and enable local government units (LGUs) to streamline their respective procedures on business permits and licenses (BPL). We saw that by streamlining business permit and licensing

system (BPLS), LGUs will be able to encourage informal businesses to register, spur the creation of new businesses, and generate more revenues.

Consequently, the aggregate results will lead to the creation of more

employment opportunities and more social services and benefits for the

citizenry.

Already in 1992, the National Economic Research and Business Assistance Center (NERBAC) was created through Republic Act 7470 to fast track investment inflows and strengthen the country’s business and investment climate. However, it was only in 2006 that NERBAC in Cebu was launched.

The implementation of the NERBAC came on the heels of The World Competitiveness Report in 2006 which revealed that the Philippines lagged very much behind as a friendly country for investors, ranking 49 out of 60 countries. The result showcased the consequences of a complex and

arduous process to legitimize business in the Philippines requiring and consuming a lot more money and time from the entrepreneurs than necessary. It served as a wake up call and prompted the Philippine Government to further intensify the efforts to cut down on red tape and to simplify the country’s business registration system.

Given that the staff of NERBAC comes from different agencies, DTI saw the need to harmonize the center’s procedures and systems and build the individual and organizational capacities required for the operations of NERBAC.

Through NERBAC, LGUs and the entire government bureaucracy, can see that cutting red tape to improve service delivery to businesses has a far-reaching impact in improving the business and investment climate of the country. In effect, such action is a form of investment that will yield multiple dividends and profits a few years onwards.

There is direct correlation between simplified business registration and

licensing procedures on one hand and business creation and investment

inflows on the other.

As shown by the experience of other countries such as Australia, a

reduction in the cost of doing business by three percent of the gross

domestic product (GDP), which includes business registration and licensing,

creates an extra USd 1.2 billion that is available for investments.

For the Philippines, such an amount is nearly equivalent to the average

yearly foreign direct investments (FDIs) over the last five years. Therefore, it makes much sense to reduce the administrative and regulatory burdens on businesses.

In the near future, we envision a “One Region, One System” in the business licensing procedures in all the local government units in Central Visayas .

Meanwhile, we have pilot areas in Cebu that are continuously finding ways to improve their way of doing business. These are Consolacion and Barili. The municipal office of Barili has trimmed down the number of steps in the application for business license from 7 to 4 steps. While Consolacion has rearranged the lay-out of their business licensing area so as to make business transaction smooth and hassle-free for entrepreneurs.

Our long term goal at the DTI is to increase the contribution of MSMEs as an important engine of economic growth. And with the help of LGUs and private sector, we do believe that this is possible.

Central Visayas has a great potential of becoming a world class business hub, owing to the region’s strategic location. In line with the Arroyo administration’s 10-Point Agenda, the Department of Trade and Industry’s policy thrusts until 2010 will focus on the Philippines’ competitive edge, which includes quality manpower resources, strategic business location, liberalized and business friendly economy, hospitable lifestyle, and unlimited business opportunities.

While the problems are huge, so is our collective resolve to overcome. I have said this before and I’ll say it again: “I have great faith in the Boholano bayanihan spirit. There have been herculean programs achieved and a multitude of problems resolved through the spirit of teamwork. I am convinced that through the partnership of DTI and LGUs, our determination, commitment and concerted efforts, we will make a positive difference in the prosperity of our towns and in the lives of our people.”

Daghang Salamat ug maayong adlaw kaninyo.

OTOP Familiarization Tour in Cebu South

I joined the first One Town One Product (OTOP) Familiarization Tour for Cebu tour guides last February 26, 2008. As expected, the sites we visited were interesting enough for tourists.

We believe orienting guides and operators on OTOP products of each town can increase the products' market exposure. Tour guides and operators educate tourists on heritage and culture of places. It would be logical for them to also know OTOP products which the Philippines can boast of because of their high quality. The recent OTOP briefings have given travel agents new information which they can share to tourists.

Cebu and Bohol have been consistently ranked as the top favored tourist destinations among foreign travelers based on the recorded number of international tourist arrivals by the Department of Tourism.

Note that these were the same tour guides who attended the OTOP Briefing held at the Cebu City Marriott Hotel.

Discussed during that briefing were the history and background on the provincial OTOP products. DTI 7 provided storylines for OTOP products which tours guides can use as part of their spiel during regular city and countryside tours. They can incorporate OTOP stories into the town’s history and narrate it to tourists.

The familiarization tour provided them with ideas for new tour loops. The familiarization tour covered visits to tourist ready sites in Talisay, Carcar, Argao and Minglanilla.

Next OTOP Familiarization Tour will be on March 3 this year.