THE GOVERNMENT should streamline export certification processes to dramatically boost Philippine firms’ use of regional trade agreements, experts from the Asian Development Bank (ADB) said.
This will help firms cope with the downturn and catch up with counterparts in neighboring economies that are taking more advantage of Association of Southeast Asian Nations Free Trade Area (AFTA) mechanisms, they added at a presentation of a study yesterday.
"The AFTA usage rate in the Philippines is 20%," Ganeshan Wignaraja, the ADB’s principal economist at its Office of Regional Economic Integration, said at the sidelines of the event, reiterating earlier reported results of a study he coauthored with ADB consultants Dorothea C. Lazaro and Genevieve DeGuzman.
The team surveyed 155 firms from the food, electronics and automotive industries in 2008.
"In Thailand, it is around 27% while in Malaysia it is 25-26%," Mr. Wignaraja told BusinessWorld, citing results from similar studies.
The presence of larger firms and a more diversified export sector in other ASEAN countries could explain their higher usage rates but government support could likewise be responsible, Mr. Wignaraja said.
"From our findings, a more pro-active approach to free trade agreements makes more sense for the Philippines," he said at the forum.
The government should make it easier for exporters to obtain the needed certificates aside from tackling firms’ lack of awareness of the regional pact, Mr. Wignaraja said.
The country should also consider negotiating for a reduction in the value content requirement -- a measure of how much of product components are locally made -- to 30% from 40%.
Systems that will allow self- or third-party certification should also be implemented instead of having the Bureau of Customs being the sole authority.
Local firms surveyed -- the portion that did not use the trade pact -- said they would more likely take advantage of the deal and thus increase the overall utilization rate to 54.2% from the 20% measured in 2008, the ADB study had found.
Source:
Jessica Anne D. Hermosa, Business World
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Isenberg Entrepreur Test: Should You Be An Entrepreneur?
by Daniel Isenberg
Some of your friends are doing it. People who do it are in the front pages and web almost every day. Even President Obama is talking about it. So should you do it? Should you join the millions of people every year who take the plunge and start their first ventures? I've learned in my own years as an entrepreneur — and now an entrepreneurship professor — that there is a gut level "fit" for people who are potential entrepreneurs. There are strong internal drivers that compel people to create their own business.
I've developed a 2–minute Isenberg Entrepreneur Test, below, to help you find out. Just answer yes or no. Be honest with yourself — remember from my last post: the worst lies are the ones we tell ourselves.
1. I don't like being told what to do by people who are less capable than I am.
2. I like challenging myself.
3. I like to win.
4. I like being my own boss.
5. I always look for new and better ways to do things.
6. I like to question conventional wisdom.
7. I like to get people together in order to get things done.
8. People get excited by my ideas.
9. I am rarely satisfied or complacent.
10. I can't sit still.
11. I can usually work my way out of a difficult situation.
12. I would rather fail at my own thing than succeed at someone else's.
13. Whenever there is a problem, I am ready to jump right in.
14. I think old dogs can learn — even invent — new tricks.
15. Members of my family run their own businesses.
16. I have friends who run their own businesses.
17. I worked after school and during vacations when I was growing up.
18. I get an adrenaline rush from selling things.
19. I am exhilarated by achieving results.
20. I could have written a better test than Isenberg (and here is what I would change ....)
If you answered "yes" on 17 or more of these questions, look at your paycheck (if you are lucky enough to still get one). If the company that issued the check isn't owned by you, it is time for some soul searching: Do you have debts to pay? Kids in college? Alimony? Want to take it easy? Maybe better to wait. Do you have a little extra cash in the bank and several credit cards? Do you have a spouse, partner, friends, or kids who will cheer you on? If so, start thinking about what kind of business you want to set up. It doesn't matter what age you are: research by the Kauffman Foundation shows that more and more over–50s are setting up their own businesses. Talk to people who have made the plunge, learn how to plan and deliver a product or service, think about that small business you might buy, talk to people with whom you would like to work, and talk to customers.
"I like to take risks" is not on the list. People don't choose to be entrepreneurs by opting for a riskier lifestyle. What they do, instead, is reframe the salary vs. entrepreneur choice as between two different sets of risk: the things they don't like about having a steady job — such as the risk of boredom, working for a bad boss, lack of autonomy, lack of control over your fate, and getting laid off — and the things they fear about being an entrepreneur — possible failure, financial uncertainty, shame or embarrassment, and lost investment. In the end, people who are meant to be entrepreneurs believe that their own abilities (e.g. leadership, resourcefulness, pluck, hard work) or assets (e.g. money, intellectual property, information, access to customers) significantly mitigate the risks of entrepreneurship. Risk is ultimately a personal assessment: what is risky for me is not risky for you.
"I want to get rich" is not on the list either. All else being equal (and all else is rarely equal in the real world), on the average, people who set up their own businesses don't make more money, although a few do succeed in grabbing the brass ring. But the "psychic benefits" — the challenge, autonomy, recognition, excitement, and creativity — make it all worthwhile.
Daniel Isenberg is a Professor of Management Practice, Babson College
Source: http://blogs.hbr.org/cs/2010/02/should_you_be_an_entrepreneur.html, 3:10 PM Friday February 12, 2010
Some of your friends are doing it. People who do it are in the front pages and web almost every day. Even President Obama is talking about it. So should you do it? Should you join the millions of people every year who take the plunge and start their first ventures? I've learned in my own years as an entrepreneur — and now an entrepreneurship professor — that there is a gut level "fit" for people who are potential entrepreneurs. There are strong internal drivers that compel people to create their own business.
I've developed a 2–minute Isenberg Entrepreneur Test, below, to help you find out. Just answer yes or no. Be honest with yourself — remember from my last post: the worst lies are the ones we tell ourselves.
1. I don't like being told what to do by people who are less capable than I am.
2. I like challenging myself.
3. I like to win.
4. I like being my own boss.
5. I always look for new and better ways to do things.
6. I like to question conventional wisdom.
7. I like to get people together in order to get things done.
8. People get excited by my ideas.
9. I am rarely satisfied or complacent.
10. I can't sit still.
11. I can usually work my way out of a difficult situation.
12. I would rather fail at my own thing than succeed at someone else's.
13. Whenever there is a problem, I am ready to jump right in.
14. I think old dogs can learn — even invent — new tricks.
15. Members of my family run their own businesses.
16. I have friends who run their own businesses.
17. I worked after school and during vacations when I was growing up.
18. I get an adrenaline rush from selling things.
19. I am exhilarated by achieving results.
20. I could have written a better test than Isenberg (and here is what I would change ....)
If you answered "yes" on 17 or more of these questions, look at your paycheck (if you are lucky enough to still get one). If the company that issued the check isn't owned by you, it is time for some soul searching: Do you have debts to pay? Kids in college? Alimony? Want to take it easy? Maybe better to wait. Do you have a little extra cash in the bank and several credit cards? Do you have a spouse, partner, friends, or kids who will cheer you on? If so, start thinking about what kind of business you want to set up. It doesn't matter what age you are: research by the Kauffman Foundation shows that more and more over–50s are setting up their own businesses. Talk to people who have made the plunge, learn how to plan and deliver a product or service, think about that small business you might buy, talk to people with whom you would like to work, and talk to customers.
"I like to take risks" is not on the list. People don't choose to be entrepreneurs by opting for a riskier lifestyle. What they do, instead, is reframe the salary vs. entrepreneur choice as between two different sets of risk: the things they don't like about having a steady job — such as the risk of boredom, working for a bad boss, lack of autonomy, lack of control over your fate, and getting laid off — and the things they fear about being an entrepreneur — possible failure, financial uncertainty, shame or embarrassment, and lost investment. In the end, people who are meant to be entrepreneurs believe that their own abilities (e.g. leadership, resourcefulness, pluck, hard work) or assets (e.g. money, intellectual property, information, access to customers) significantly mitigate the risks of entrepreneurship. Risk is ultimately a personal assessment: what is risky for me is not risky for you.
"I want to get rich" is not on the list either. All else being equal (and all else is rarely equal in the real world), on the average, people who set up their own businesses don't make more money, although a few do succeed in grabbing the brass ring. But the "psychic benefits" — the challenge, autonomy, recognition, excitement, and creativity — make it all worthwhile.
Daniel Isenberg is a Professor of Management Practice, Babson College
Source: http://blogs.hbr.org/cs/2010/02/should_you_be_an_entrepreneur.html, 3:10 PM Friday February 12, 2010
RP among ‘over performers’ in WB trade logistics survey
ANGELES, Pampanga – The Philippines ranks 44th among countries considered to be “over performers” by a new World Bank logistics survey that measures how efficiently countries trade their goods around the world.
Germany emerged on top and Singapore second while Sweden was adjudged the next most trade-friendly nation in the study hailed by the Washington-based institution as "the most comprehensive world survey of international freight forwarders and express carriers."
Aside from the Philippines, other most significant "over-performers" among developing countries are China, which emerged 27th in ranking, India (47), Uganda (66), Vietnam (53), Thailand (35), and South Africa (28).
Germany emerged on top and Singapore second while Sweden was adjudged the next most trade-friendly nation in the study hailed by the Washington-based institution as "the most comprehensive world survey of international freight forwarders and express carriers."
Aside from the Philippines, other most significant "over-performers" among developing countries are China, which emerged 27th in ranking, India (47), Uganda (66), Vietnam (53), Thailand (35), and South Africa (28).
Renewal of business registration with local gov’ts and the BIR
[Pubsliher's Note: following article was first posted in and copied from the Inquirer.Net, Let’s Talk Tax -- By Roy N. Relato]
Happy New Year!!! I hope everyone is safe and well after the customary revelries to welcome the year 2010 -- the year of the Tiger.
At the start of the New Year, business establishments are tasked to comply with one of the statutory requirements -- the renewal of business registration with the local government units (LGUs).
As a general rule, all local taxes, fees and charges shall be paid within Jan. 20, or within the first 20 days of each subsequent quarter, as the case may be (Section 167, Local Government Code or LGC).
These include business tax, mayor’s permit fee, sanitary inspection fee, garbage fee, building inspection fee, electrical inspection fee, mechanical inspection fee, plumbing inspection fee, fire inspection fee, personnel fee, business plate registration fee and other charges imposed by the different LGUs.
Happy New Year!!! I hope everyone is safe and well after the customary revelries to welcome the year 2010 -- the year of the Tiger.
At the start of the New Year, business establishments are tasked to comply with one of the statutory requirements -- the renewal of business registration with the local government units (LGUs).
As a general rule, all local taxes, fees and charges shall be paid within Jan. 20, or within the first 20 days of each subsequent quarter, as the case may be (Section 167, Local Government Code or LGC).
These include business tax, mayor’s permit fee, sanitary inspection fee, garbage fee, building inspection fee, electrical inspection fee, mechanical inspection fee, plumbing inspection fee, fire inspection fee, personnel fee, business plate registration fee and other charges imposed by the different LGUs.
China-ASEAN Free Trade
MANILA, Philippines—As today’s global economy offers unparalleled opportunities for all countries across the world, continuing to expand trade by lowering barriers of goods and services is in the common interest of China and Asean countries.
Our concerted and unremitting efforts during the past decade will soon reap fruits with the full establishment of China-Asean Free Trade Area (Cafta) on January 1, 2010.
This means that more than 7,000 zero-tariff commodities could be traded among China and Asean countries. The removal of trade impediments will lower the costs of transactions, further increase China-Asean trade volume, and enhance economic efficiency. With market risk and uncertainties lowered, more investments would be generated from both Chinese and Asean companies into an integrated and rewarding market.
While we shall never forget that we have come a long way for “today,” New Year’s Day would be the first day we are to enjoy substantial gains from freer trade.
The comprehensive China-Asean cooperation dates back to early 1990s. Since then, economic relations and trade among us have been increasing with each passing year.
When the financial crisis struck in 1997, China held out by not depreciating RMB yuan, which served as a strong force for the recovery of the regional economy. Together with similar cultural tradition and history, complementarities and inter-dependence define the China-Asean bond which enables us to reach consensus towards common prosperity. Therefore, it is fair to say that we have secured a solid foundation for Cafta.
In September 2000, at the 4th China-Asean Summit in Singapore, the then Chinese Premier Zhu Rongji first came up with the proposal of Cafta, which was well received and applauded by Asean countries. In November 2001, the leaders from China and Asean countries declared the goal of full establishment of Cafta in 10 years at Brunei Summit. On 4 November 2002, the China-Asean Framework Agreement on Comprehensive Economic Cooperation was signed to kick off the endeavor towards Cafta. There were doubts among Asean countries that opening domestic markets to the Chinese goods may bring in tough competition. The Early Harvest Program was therefore put in place in 2004 to offer preferential arrangements in advance to Asean countries by unilaterally opening the Chinese market to the Asean agricultural produce. Words were put into actions and benefits were materialized. 2004 witnessed China-Asean trade volume topping $100 billion.
Agreement on Trade in Goods and Agreement on Trade in Services between China and Asean countries were signed respectively in November 2004 and January 2007. On 15 August 2009, the Investment Agreement was signed, marking the successful completion of main Cafta negotiations. With a population of 1.9 billion and a combined GDP of $6 trillion, Cafta would be the biggest FTA not only for developing countries, but also in terms of population and market size. We have every reason to believe that the full inception of Cafta will not only bring benefits to the Chinese and Asean peoples, but also contribute to the economic growth in Asia and the world at large.
Cafta will bring greater opportunities to the Philippines. With strong export potentiality in electronics, agricultural produce, fruits, fishery products, and minerals, etc, the Philippines will enjoy considerable comparative advantages and expand market shares of its competitive goods. Furthermore, with the agreements on trade of services and investment coming into force, the Philippines would be well poised to boost service trade and attract investments. Tourism, English teaching, eco-medical and retirement care services are those areas where the Philippine government can really turn potential into profits. More incoming investments from both China and other Asean countries will give driving impetus to infrastructure development in the Philippines.
Cafta will open broader vista for China-Philippine trade and economic cooperation. China-Philippine trade has registered relatively rapid growth in recent years, with the record high of more than $30 billion in 2007. With Cafta functioning in a full-fledged manner, both China and the Philippines should do more to press ahead with exchanges among prominent enterprises and to facilitate more effective bilateral cooperation in trade. China and the Philippines should work to strengthen our cooperation mechanism among authorities in charge of respective areas
Cafta will spur two-way investment flow between China and the Philippines. The Chinese companies are willing to bring their infrastructure investment up to higher level in various fields such as transportation, power generation, water supply, and telecommunication. At the same time, China will do its utmost to get its policies well understood by Philippine companies in terms of foreign investment in China. We remain ready to invite Philippine enterprises to tap investment potential in China.
Cafta will serve as catalyst for China-Philippine economic cooperation. As part of package plan to boost China-Asean cooperation, China has set up in 2009 China-Asean Investment Cooperation Fund totaling $10 billion. The first $1 billion will soon be made available for project orientation. The Philippine government stands in a good position to make full use of this fund and determine on candidate projects according to its strategy of economic development. The Chinese side is looking forward to seeing the related application be filed at an earliest date.
There have been, is, and will always be some concerns over the Philippines’ future after Cafta is up and running. Some voiced challenges in more fierce competition in manufacture industries, some stressed the vulnerability of domestic agriculture under price impact, and some even went as far as saying that free trade is not fair at all.
However, the idea that free trade is fair only if countries share identical labor costs and economic regulations or if domestic producers are compensated for market losses to more competitive foreign producers does not hold water. The economic benefits of free trade derive from the fact that trading partners are different, allowing any country embracing world markets a chance to be competitive. Free trade is fair when countries with different advantages are allowed to trade with a minimum of restriction and capitalized on those differences.
The Philippines is the case in point. As I’ve just said, the Philippines is endowed with comparative advantages in terms of natural resources, wage costs, language skills, education levels and etc. And what is more, as I observed, this country has a very dynamic private sector which keeps growing even in times of the on-going crises. China held similar worries when standing at the threshold of entry into the WTO. When something new comes, it always takes time to learn, try and finally excel. Therefore, Cafta for the Philippines is more than just cloud’s silver lining, but a blessing in disguise.
Free trade allows China, the Philippines and other Asean countries to compete in Cafta on the basis of our fundamental economic strengths and to reap the productivity and efficiency gains that promote long-run wealth and prosperity for all the peoples in the region. In reality, there is no distinction between free trade and truly fair trade. On the road to recovery, China and Asean countries share common fate and shoulder common responsibility. To advance regional economic cooperation in unprecedented width and depth is particularly significant at the moment. Putting Cafta into place is surely something in the right direction. Let’s work to turn this blessing in disguise into benefits in real.
Our concerted and unremitting efforts during the past decade will soon reap fruits with the full establishment of China-Asean Free Trade Area (Cafta) on January 1, 2010.
This means that more than 7,000 zero-tariff commodities could be traded among China and Asean countries. The removal of trade impediments will lower the costs of transactions, further increase China-Asean trade volume, and enhance economic efficiency. With market risk and uncertainties lowered, more investments would be generated from both Chinese and Asean companies into an integrated and rewarding market.
While we shall never forget that we have come a long way for “today,” New Year’s Day would be the first day we are to enjoy substantial gains from freer trade.
The comprehensive China-Asean cooperation dates back to early 1990s. Since then, economic relations and trade among us have been increasing with each passing year.
When the financial crisis struck in 1997, China held out by not depreciating RMB yuan, which served as a strong force for the recovery of the regional economy. Together with similar cultural tradition and history, complementarities and inter-dependence define the China-Asean bond which enables us to reach consensus towards common prosperity. Therefore, it is fair to say that we have secured a solid foundation for Cafta.
In September 2000, at the 4th China-Asean Summit in Singapore, the then Chinese Premier Zhu Rongji first came up with the proposal of Cafta, which was well received and applauded by Asean countries. In November 2001, the leaders from China and Asean countries declared the goal of full establishment of Cafta in 10 years at Brunei Summit. On 4 November 2002, the China-Asean Framework Agreement on Comprehensive Economic Cooperation was signed to kick off the endeavor towards Cafta. There were doubts among Asean countries that opening domestic markets to the Chinese goods may bring in tough competition. The Early Harvest Program was therefore put in place in 2004 to offer preferential arrangements in advance to Asean countries by unilaterally opening the Chinese market to the Asean agricultural produce. Words were put into actions and benefits were materialized. 2004 witnessed China-Asean trade volume topping $100 billion.
Agreement on Trade in Goods and Agreement on Trade in Services between China and Asean countries were signed respectively in November 2004 and January 2007. On 15 August 2009, the Investment Agreement was signed, marking the successful completion of main Cafta negotiations. With a population of 1.9 billion and a combined GDP of $6 trillion, Cafta would be the biggest FTA not only for developing countries, but also in terms of population and market size. We have every reason to believe that the full inception of Cafta will not only bring benefits to the Chinese and Asean peoples, but also contribute to the economic growth in Asia and the world at large.
Cafta will bring greater opportunities to the Philippines. With strong export potentiality in electronics, agricultural produce, fruits, fishery products, and minerals, etc, the Philippines will enjoy considerable comparative advantages and expand market shares of its competitive goods. Furthermore, with the agreements on trade of services and investment coming into force, the Philippines would be well poised to boost service trade and attract investments. Tourism, English teaching, eco-medical and retirement care services are those areas where the Philippine government can really turn potential into profits. More incoming investments from both China and other Asean countries will give driving impetus to infrastructure development in the Philippines.
Cafta will open broader vista for China-Philippine trade and economic cooperation. China-Philippine trade has registered relatively rapid growth in recent years, with the record high of more than $30 billion in 2007. With Cafta functioning in a full-fledged manner, both China and the Philippines should do more to press ahead with exchanges among prominent enterprises and to facilitate more effective bilateral cooperation in trade. China and the Philippines should work to strengthen our cooperation mechanism among authorities in charge of respective areas
Cafta will spur two-way investment flow between China and the Philippines. The Chinese companies are willing to bring their infrastructure investment up to higher level in various fields such as transportation, power generation, water supply, and telecommunication. At the same time, China will do its utmost to get its policies well understood by Philippine companies in terms of foreign investment in China. We remain ready to invite Philippine enterprises to tap investment potential in China.
Cafta will serve as catalyst for China-Philippine economic cooperation. As part of package plan to boost China-Asean cooperation, China has set up in 2009 China-Asean Investment Cooperation Fund totaling $10 billion. The first $1 billion will soon be made available for project orientation. The Philippine government stands in a good position to make full use of this fund and determine on candidate projects according to its strategy of economic development. The Chinese side is looking forward to seeing the related application be filed at an earliest date.
There have been, is, and will always be some concerns over the Philippines’ future after Cafta is up and running. Some voiced challenges in more fierce competition in manufacture industries, some stressed the vulnerability of domestic agriculture under price impact, and some even went as far as saying that free trade is not fair at all.
However, the idea that free trade is fair only if countries share identical labor costs and economic regulations or if domestic producers are compensated for market losses to more competitive foreign producers does not hold water. The economic benefits of free trade derive from the fact that trading partners are different, allowing any country embracing world markets a chance to be competitive. Free trade is fair when countries with different advantages are allowed to trade with a minimum of restriction and capitalized on those differences.
The Philippines is the case in point. As I’ve just said, the Philippines is endowed with comparative advantages in terms of natural resources, wage costs, language skills, education levels and etc. And what is more, as I observed, this country has a very dynamic private sector which keeps growing even in times of the on-going crises. China held similar worries when standing at the threshold of entry into the WTO. When something new comes, it always takes time to learn, try and finally excel. Therefore, Cafta for the Philippines is more than just cloud’s silver lining, but a blessing in disguise.
Free trade allows China, the Philippines and other Asean countries to compete in Cafta on the basis of our fundamental economic strengths and to reap the productivity and efficiency gains that promote long-run wealth and prosperity for all the peoples in the region. In reality, there is no distinction between free trade and truly fair trade. On the road to recovery, China and Asean countries share common fate and shoulder common responsibility. To advance regional economic cooperation in unprecedented width and depth is particularly significant at the moment. Putting Cafta into place is surely something in the right direction. Let’s work to turn this blessing in disguise into benefits in real.
IBM sets up first Innovation Center in the Philippines
QUEZON CITY, Philippines: IBM has put up an Innovation Center (IIC) at the University Philippines-AyalaLand Technohub in Diliman, Quezon City. The first in the country, aimed at providing a testing and training facility for the technology firm’s business partners. The location gives the IIC access to the technical and manpower resource from two nearby major universities, the University of the Philippines and Ateneo De Manila University.
IBM Philippines Chief Technologist Lope Doromal, Jr. said the Philippines has a one of the fastest growing sources for knowledge workers who can provide technical and development skills to local and international markets. Doromal said developing for the IT industry requires access to vast resources, as well as knowledge of the business terrain so that suitable technologies are developed.
IBM Philippines Chief Technologist Lope Doromal, Jr. said the Philippines has a one of the fastest growing sources for knowledge workers who can provide technical and development skills to local and international markets. Doromal said developing for the IT industry requires access to vast resources, as well as knowledge of the business terrain so that suitable technologies are developed.
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