Bohol Emulates Negros Economic Program

A 16-member team coming from the different offices and departments of the Provincial government of Bohol visits Negros Occidental for its "Local Benchmarking Study-Tour" of the Provincial Government's Economic Enterprise Development Department (EEDD), established under the administration of Governor Joseph G. Marañon.

Bohol is set to establish and operate its own Public Economic Enterprise Management.

The delegation is interested in learning from the experience of the Provincial Government of Negros Occidental's development and management of the EEDD and at the same time visit various government enterprises around the province.

To date, the provincial government is managing various tourist spots like the Mambucal Mountain Resort and is strongly supporting cottage industries and livelihood associations like the Association of Negros Producers and the like.

Meanwhile, efforts to help boost entrepreneurship even to its less-able citizens, the City of Kabankalan initiate an entrepreneurship seminar to 20 visual, hearing and orthopedic impaired persons.

The participants who were identified by the Department of Social Welfare and Development attended the two-day seminar on characteristics, disadvantages and risks of an entrepreneur. They were also taught business opportunity identification, production and marketing plans of an entrepreneur and product presentation.

These are programs in support of the economic agenda of the national government to strengthen the economy.

"The country is on the final relay of the economic homerun and the President and her entire team are resolutely focused on keeping the winning edge by driving more investments, advancing tourism and investing in vital infrastructure," a Malacañang statement said. (PIA)

PGMA cites immense contribution of BPOs to jobs creation program

President Gloria Macapagal-Arroyo cited Monday the enormous contribution of the information and communications technology (ICT) sector, specifically the business process outsourcing (BPO) players, to her administration's thrust to create at least six to 10 million jobs by 2010.

At the inauguration this morning of the first Sykes Enterprises Inc. Center in Cebu province, the President thanked Chuck Sykes, president and chief operating officer of the global company, for the direct jobs as well as the indirect employment opportunities created with the establishment of six Sykes centers in the Philippines.

"May you have more Sykes (centers) here in the Philippines. Thank you for the 10,000 jobs you have given the Filipinos and also for the jobs you have given for the businesses around your BPO centers," the President said.

"Even if they don't have the call center English, they get jobs because of you," the President told Sykes, referring to the thousands of indirect employment created around the BPO centers such as those benefiting janitors, waiters, jeepney drivers, among others.

The ICT sector, specifically the call centers and BPOs established in various parts of the country, has greatly contributed to the national economic growth with the service sector topping the list.

Sykes' senior vice president and managing director for Asia-Pacific Rim Mike Henderson said the Philippines' booming economy made Sykes decide to "expand our business" in the country.

"We continue to look for ways on creating jobs and contribute to the local economy," Henderson said, adding that with the government's support, they "look forward to expanding our business even more."

The President led the ribbon-cutting and the unveiling of the marker at the main entrance of Sykes-Cebu located on F. Cabahug Street, Cebu.

The President then made a quick tour of the call center operations area and interacted with some of the Cebuano staff of Sykes.

Sykes is a global leader in providing outsourced customer contact management solutions and services in the BPO arena. It has some 17,000 staff members in 16 countries.

Headquartered in Tampa, Florida, Sykes now has six BPO centers in the Philippines, of which five are in Metro Manila.

In its Cebu center alone, Sykes has 1,700 employees and aims to increase that number to 2,700.

The inauguration of the Sykes-Cebu coincided with the 10th anniversary of Sykes in the Philippines.

Earlier, the President visited the exhibit of Cebu's furniture makers at the Waterfront Hotel in Lahug.

The Cebu furniture makers have been among the country's leading exporters. (PNA)

Cebu sees vast potential growth for ICT

The number of software developers in Cebu today has more than tripled in figure since 2001 which reckons Cebu’s massive potential growth in the area of information and communication technology (ICT).

Bonifacio Belen, chair of the ICT-Link Asia that will witness the conduct of the Cebu ICT 2007 International Conference and Exhibition in June, bared that there are now 3,500 software developers compared to only 850 six years ago.

Workers in the ICT-enabled services such as call centers and data encoding have reached 18T compared to only 7T a few years back largely due to the presence of the top six call center firms that have branches here, according to Belen.

“We’ve got something to say when it comes to ICT,” Belen told reporters during the recent Cebu media launching of the Cebu Business Month (CBM). The ICT conference and exhibition is one of the highlights of the CBM, a yearly celebration in June spearheaded by the Cebu Chamber of Commerce and Industry (CCCI) to promote the province as an ideal investment haven.

India is considering the Philippines as getting closer to competing with them especially in the global outsourcing market with 266T Filipinos now employed in the business process outsourcing (BPO) in the country, Belen said.

Currently, the Philippines has only one to three percent world market share in the global outsourcing with India still leading the way with more than 50 percent of the global market share in the ICT field, this is said.

Belen said the country hopes to capture around 20 to 30 percent world market share in the BPO which the ICT conference and exhibition aims to initially pave the way towards that direction.

The objective of the ICT conference is to bring together 150 IT leaders in Asia from 11 countries with a minimum of 15 delegates per nation. About 40 IT experts have already confirmed attendance to the conference coming from India, Beijng in China and the US with the discussion to focus on how Asia can collaborate in the ICT field, this is learned.

For the second day, an Asian Summit of IT leaders is set where talks will zero in on the landmarks for possible collaboration among the participating nations such as in the area of human resource development, Belen further said.

As the CBM cashes in on the twin potentials of tourism and ICT growth in Cebu, Belen said the CCCI wants to initiate a calendar of Asian IT events where participating nations can network with each other in circulating IT events that will be happening within the region. The benefits that will be reaped through these efforts will increase Cebu’s capability to deliver which is inspiring for all of us, Belen said. (PIA)

International company signs MOA with Cebu City Government

Bigfoot Global Solutions signed yesterday a memorandum of agreement (MOA) with the Cebu City Government in relation to its plan to lease a two-hectare property at the SRP.

Cebu Investments Promotions Center (CIPC) executive director Joel Mari Yu said Bigfoot is preparing for the expansion of its International Academy of Film and Television at the 300-hectare SRP property.

He said the MOA signed between Bigfoot Global Solutions and the City Government, which is the developer of SRP, grants the private firm a 25-year lease term on the property. Bigfoot has the option to renew the contract.

Bigfoot is expected to pay an advance payment of P28 million within five years.

At a monthly lease rate of $40 centavos per square meter, the City Government is expected to earn about P400,000 a month or nearly P5 million a year from the agreement, Yu said.

Aside from the lease agreement on the SRP property, Bigfoot and City Hall are also finalizing the sale of a 16-hectare parcel of land, which is meant for integrated development, near Pond F of the SRP.

The project will be used for a state-of-the-art movie studio with sound stage, said Yu.

He said that part of the Film and Television Academy expansion is the construction of a sound stage facility, which will be another first in Cebu.

In an earlier interview, Cebu City Mayor Tomas Osmeña described the move of Bigfoot to located at SRP as a “more exciting development.”

The Bigfoot project will reportedly include a mega yacht club, a five-star hotel, and an all-in-one leisure and commercial facility that will be a first of its kind in Cebu.

According to Osmeña, because of SRP’s strategic location as a “gateway to the South,” many investors are now eyeing the SRP as a feasible site to do business.

Aside from Bigfoot, SM Prime Holdings Inc. (SMPHI) had expressed interest in the SRP. Earlier this month, SMPHI bared plans to construct two additional shopping centers in the province.

Other investors that had shown interest in the SRP are: the Filinvest group, which plans to build a commercial complex; Cebutainer Systems Corp., a Singaporean company that will need 20 hectares; Taiwanese firm Paul Yu Group of Companies; JY Construction; Arcenas Group; Pakna-an Central Development Corp., Mactan Rock Industries Corp., King Group of Companies; and the University of Cebu.(SS)

Cebu X to feature lifestyle furniture

Local furniture manufacturers will feature pieces that evoke the typical Cebuano lifestyle in an upcoming exhibit, the “Cebu X 2007: Everything Inspires.”

"In every show we think of using new materials. There is no limit to creativity," said Michael Basubas, Cebu Furniture Industries Foundation (CFIF) president.

He said this year’s Cebu International Furniture and Furnishings Exhibition will be held at the Waterfront Cebu City Hotel and Casino from Feb. 26 to March 1.

The exhibit will feature lifestyle furniture and furnishings, contract furniture and furnishings and outdoor furniture.

The items that will be on display would include multi-media pieces made from indigenous materials such as rattan, wicker, bamboo, wrought iron, wood and buri.

Furnishings made of non-traditional materials like laminated shells, stones, and animal bones and skin will also be on display.

The public, who will view the show on March 1 from 9 a.m. to 6 p.m., should expect more pieces that evoke a laid back lifestyle and multifunctional items.

”Unlike fashion accessories and garment, the trend in the furniture industry does not change much, this would involve the color and lifestyle,” Ruby Babao-Salutan, CFIF executive director, said.

”In Cebu, we have the lifestyle furniture. So, you buy the image that you choose to live. You would see a piece and say, 'I want to live that way',” Salutan said.

She said this would mean something that would have more value because it would be something intangible.

"So we are not just producers of furniture, it’s a lifestyle,” she said.

Salutan explained that lifestyle is demographic.

"In contrast, furniture manufacturers in Malaysia come up with pieces made of teak or the institutional form while in Europe, where they have small spaces and the land is expensive, they have the minimalist pieces. In North America, they prefer the bulky pieces,” she said.

Twenty six companies that have signed in as exhibitors will be using or experimenting on new materials for their designs. Participants from Bacolod, Manila, and Pampanga and Davao have also enlisted to showcase their products.(PNA)

Cebu is ready for World Food Expo

Cebu is set to host a world food expo at the Cebu International Convention Center (CICC) giving a boost to the province's bid to become a convention and exhibition capital of the country.

The exhibition called the World Food Expo (Wopex): Food Processing and Packaging Tecchnology Expo 2007 is expected to gather at least 700 local and international exhibitors at the CICC this April.

According to Felix Tiukinhoy, president of the Philippine Association of Meat Processors (Pampi) and co-host of the event, the exhibition will boost Cebu's bid to become a convention and exhibition capital of the country.

The event will also boost industries and businesses not only in Cebu but also those in the region, with the presence of hundreds of suppliers and buyers gathered in one huge event.

“Hundreds of deals are sealed in events like these. Instead of going to Manila where you meet one or two suppliers or buyers in one day, in an expo you meet a hundred of them,” said Tiukinhoy also president of Virginia Food, Inc.

Pampi will cohost the event with the association of Cebu-based food exporters – Association of Food Manufacturers and Exporters and the European Chamber of Commerce Cebu.
Last year, the annual exhibition gathered 700 exhibitors and over 52,000 foreign and local trade exhibitors, Jocelle Pascual, vice president for marketing of Premier Events Plus Group Inc., said in a letter to Gov. Gwendolyn Garcia.

Exhibitors in the event range from food processing equipment and supplies, food service facilities, packaging equipment, packaging materials, food ingredients, supermarket systems among others.

According to Tiukinhoy, organizers are still waiting for advice from the management board created by the provincial and Mandaue City government regarding the rates for use of the CICC. (CDN)

Mineral wastes a brisk business in Negros Oriental town

Wastes and scraps of all sorts from the defunct Construction Development Corporation of the Philippines (CDCP) mine in Maglinao, Basay, Negros Oriental have provided livelihood for the people there.

But, at the same time, it has also created a situation where anybody can just go there and extract waste copper concentrates and other mineral resources in the absence of tight measures to regulate activity at the mining site.

This has prompted the provincial government to send a team of personnel from the Environment and Natural Resources Division who inventoried 180 tons more or less of copper concentrates stock piled in different areas in Basay.

The mineral resources were sold by extractors at a meager price depending on the quality.

The provincial government had ordered a stop to the extraction activity in the absence of special permits issued by the governor, after the two-month period given to the natives expired in January 27 this year.

A warning was issued against transporting the mineral resources without first complying with the requirements, says provincial legal officer, lawyer Erwin Vergara.

Records show that more than 300 cubic meters of copper concentrates were shipped out of the province in the last two months.

Aside from copper concentrates, the natives are also digging big holes to extract molybdenum and pyrite.

More than 500 bags of pyrite were extracted at Sitio Catigtigan in Barangay Maglinao, a hinterland village that could only be reached via “habal-habal” or an improvised motorcycle-for-rent.

The team had also chanced upon cultural minorities salvaging scrap iron from the mill site of the former CDCP mines. (PNA)

Senate passes tourism bill

The Senate has approved on third and final reading the Tourism Act, which aims to promote and develop the tourism industry as an engine of growth and development.

Sen. Richard Gordon, the principal author of the bill, said the bill would allow the government to invite investors in the tourism industry by introducing them to the Tourism Enterprise Zones where certain fiscal and non-fiscal incentives may be availed of by investors.

The new tourism bill provides that the Philippine Tourism Authority (PTA) would be reorganized to form the Tourism Enterprise Zone Authority (TEZA), which would be in charge of getting investors to develop the tourism zones.

The assets and liabilities of the PTA would be held in trust and managed by a special committee composed of the secretaries of Tourism, Finance and Budget and Management.

When economically feasible and financially viable, assets may be assigned to the TEZA for sale, lease or development into zones.

The bill would also pave the way for the reorganization of the Philippine Conventions and Visitors Corp., which will become a new entity to be called Tourism Philippines (TP).

The bureaus for Domestic and International Tourism Promotions and the Office of the Tourism Information and Product Development of the Department of Tourism (DOT) would also be placed under TP.

Moreover, the operation and supervision of foreign field offices of the DOT would be transferred to TP, which will be tasked to market and promote the Philippines as a major global tourism destination.

One of the incentives to be provided to zone operators and locators is an income tax holiday for six years, which may be extended to another six years if the enterprise undertakes a substantial expansion or upgrade of its facilities prior to the expiration of the initial six years.

In lieu of all other national and local taxes, except real estate taxes and TEZA fees, a new tourism enterprise shall pay a tax of three percent on its gross income.

The House of Representatives is expected to pass its own version of the bill before the 13th Congress adjourns. (PS)

International Virgin Coconut Oil Craze Favorable to the Philippines

The country can reposition itself as the largest global supplier of virgin coconut oil (VCO) as international cosmetics industry clamor for more supply, an official of the Philippine Coconut Authority said.

In a study titled "State of the Art VCO production in the Philippines" PCA Deputy Administrator Carlos Carpio said market positioning of the VCO has to be assured through quality and price competitiveness to maintain the country's present status as the leading exporter of VCO in the world.

“The utmost priority for the industry is to increasingly fund research and development on processing technologies and for conducting more extensive medical studies to support the claims on various health benefits of VCO,” he said.

“The Philippines is still the number 1 supplier of VCO in the global market. Other VCO producing countries are Thailand and Malaysia, and they are fast moving in product development to be able to compete with our VCO,” he added.

The VCO was first recognized as food supplement due to its health benefit claims. Lately, a VCO boom have been noted due to increasing sales of high-end products, such as soaps, lotions, massage oils, beauty creams and lipsticks, that contain the natural oil.

“Expanding our export markets is also an effective strategy to develop the VCO industry that will revitalize the dwindling coconut industry,” Carpio added.

The growing demand for VCO has been noted in the past five years, and it wasn’t until 2006 when it was recognized as potential export product.

To date, the Philippines produces 2,931 metric tons of VCO, generating US$ 1.5 million revenues from the US alone, the 2005 PCA records said.

Aside from US, other countries clamoring for VCOs are Australia, and Canada.

The increasing VCO craze in the international market has reinvigorated the coconut industry and started to gain economic advantage as many farmers ventured into virgin coconut oil production, mostly on a smaller scale.

He said that as such, more jobs were generated, and nut requirements of the VCO plants improved the farm income of the coconut farmers. (PNA)

Cebu tourism boom pushes regional traffic up 80%

An increase of 80 percent in tourist traffic in the region last year predominated by Cebu acknowledges the province's image of being the country's favorite tourism destination.

Department of Tourism (DOT) regional director Patria Aurora Roa during the 888 News Forum at the Marco Polo Hotel said tourists, foreign and domestics alike continue to flock to Cebu to unwind and have a relaxing vacation. The DOT-7 is still finalizing the total figures of the number of tourist arrivals in 2006 for Central Visayas including Cebu.

With the success of the 12th Asean Summit in Cebu, the province embarks on an additional model of being promoted as an international conference site with the construction of the Cebu International Convention Center (CICC), according to Roa.

Tourism Sec. Joseph "Ace" Durano has promised local officials that he will help promote Cebu as an international convention haven. True to his word, the DOT has booked the CICC for six major tourism events for this year, Roa said.

The DOT events include the 'Kalakbay Awards,' normally done either at the Malacañang Palace or the Philippine International Convention Center in Manila, Travel Exchange, Tourism Jobs Fair scheduled on March 28-31 and the Philippine Travel Mart, usually held at the Mega Mall in Ortigas, Manila.

Roa added that there are also foreign and local private organizers that have signified interest in using the CICC with some actually having made the bookings already.

The CICC, jointly owned by the Cebu Provincial Government and the Mandaue City Government, has an interim management board appointed by both local government units to draft the policies and the protocol for the use of the CICC. (PIA)

Cebu will soon have two more cities

Bogo and Carcar towns in Cebu will soon be added as the 7th and 8th cities of the province as the Senate local government committee approved recently the conversion of twelve (12) towns in the various part of the country into cities.

Senator Alfredo Lim, chairman of the senate committee on local government said, if the senate plenary approves the committee’s endorsements, Lim expects the towns of Baybay in Leyte; Tayabas in Quezon; Catbalogan in Samar; Lamitan in Basilan; Tandag in Surigao del Sur; Tabuk in Kalinga; Batac in Ilocos Norte; Bayugan in Agusan del Sur; Cabadbaran in Agusan del Norte; Borongan in Eastern Samar; Bogo and Carcar in Cebu will soon celebrate their new status. Lim added that the approval of the endorsements would mean that the “soon-to-be-cities” would get bigger share of the Internal Revenue Allotment (IRA).

Cebu Provincial Treasurer, Roy Salubre in a media interview commented that once these towns become component cities of the province, “all taxes and revenues these cities collect will go directly to their own coffers and the province would no longer receive a share in their property taxes.”

Salubre said, this early the province is fast tracking its collection of delinquent taxes from Bogo and Carcar as the present scenario looks favorable for the approval of the conversion. “We need to double our efforts otherwise the new cities would fully get the proceeds in the auction of delinquent properties. We will collect what is due to the province,” Salubre added.

He said, “The cities have an advantage because then they do not need to share their taxes to the province although the province will still assist them because they are considered component cities like Lapu-lapu and Mandaue and they can still vote for our local officials.”

According to the Provincial Treasurer’s records, in 2006 alone, Bogo and Carcar had real property collection of P10.78-Million and P8.45-Million respectively and P8.18-Million (P4.59M from Bogo and P3.59M from Carcar) went to the coffers of the province.

The conversion of towns to city-hood means an increase in their IRA share and the cities can also raise the real property tax rates from one to two percent.

Meantime, League of Cities president, Iloilo Mayor Jerry Trenas was disappointed with these developments. He said, the League of Cities in the Philippines (LCP) will not support those senators that voted for the conversion of the 12 towns into cities saying that “these cities must first meet the requirements—that towns applying for city-hood should have an income of at least P100-Million plus, other requirements on population and territorial boundaries.”

Bogo and Carcar and the other cities are exempted from the new law on the P100M income IRA requirements because according to senator Lim when the bills were filed, the income requirement was still on the P20-Million bracket. (PIA)

Ayala Land affiliate lays out more projects in Cebu for 2007

Ayala Land affiliate Cebu Holdings Inc. (CHI) has laid out more projects in Cebu this year, boosted by the confidence of portfolio investors in the country as manifested by an increase in its per share value last year.

CHI president Francis Monera said the value of the Ayala Land affiliate has increased to P3.20 per share as of end of 2006 from P1.10 in 2005.

CHI, established in 1990, owns the Cebu Business Park (CBP) here, a former golf course owned by the Cebu provincial government.

CBP’s establishment helped spur economic growth in Cebu in terms of property value appreciation.

Ayala Center Cebu (ACC), located at the heart of CBP, has also triggered the development of more malls in the province.

Monera said CHI is poised to sustain the company’s performance in the previous year by pursuing the P800-million expansion plan of its retail business, ACC, and other projects such as residential and commercial developments and leisure.

He said the development of the ACC lagoon area, which will result in the availability of more than 8,000 square meters of additional leasable space, will start this year.

The rehabilitation of the former “The Village” at Asiatown IT Park here, will also start within the first half of the year.

The renovated establishment, which will use “recharging” outlets for people working in different business process outsourcing (BPO) and information technology (IT) firms located at Asiatown, is set to open by end of this year.

Asiatown is a development of CHI-subsidiary Cebu Property Ventures and Development Corp. (CPVDC) which was jointly organized with the Cebu provincial government to develop the old airport in Lahug, Cebu City.

Monera said CPVDC foresees bullish advancement in the Asiatown IT Park with the continuing boom in the IT sector.

”The increasing interest in Asiatown IT Park has brought in more locators in IT and IT-related industries, as well as facilities and services for its growing workforce,” he said.

With the sale of seven lots last year, Monera said 15 lots, with sizes ranging from 800 square meters to 1,500 square meters, are still available.

He said CPVDC welcomes the decision of several lot owners at Asiatown to construct their own buildings to serve the demand of the growing BPO market.

However, the company will eventually construct its own, he said.

”The demand for buildings is big. We need to offer more inventory,” Monera said.

Future developments in Asiatown will include a hotel, which will cater to the residential needs of foreign company executives, especially those of BPOs and call centers.

Based on its unaudited financial statements, CHI closed 2006 with a P207 million income compared to 2005’s P117 million.

The income was derived from recurring revenues of its retail and office leasing operations, and sale of residential and commercial lots, condominium units and sports club shares.

”As a company, CHI will be strengthening its organizational capability by living up to its quality, environment and health safety system certification,” Monera said.

CHI obtained last year international certifications for environmental management, quality standards, and health and safety system. (PNA).

Public sector workers assured of pay hike

The country’s 1.5 million government workers including the military and police personnel are assured of a substantial increase in their salaries in the middle of this year as Congress approves a 10% public pay hike, the first wage increase in six years.

The Department of Budget and Management (DBM) confirms that Malacanang has already set aside P10.3-Billion to implement the increase effective July 1 this year.

Albay congressman Joey Salceda who is also the chairman of the house committee on appropriations said, better state revenue allows the government to increase the pay of its workers and an increase in the subsistence and hazard pay of military, police, fire brigade workers and prison officers. “It’s payback time,” Salceda added.

Senator Franklin Drilon, chair of the Senate finance committee expressed confidence that majority of the senators will also approve a similar bill to help the government workers cope with the rising cost of living. The government raised cost-of-living allowances for some state employees last year and in 2005 but the last time the country's 1.2 million civil servants received a salary increase was in 2001.

“The amount of P10.3-Billion has already been provided in the 2007 budget under the un-programmed fund to allow for the immediate release of funds for the salary increase as soon as the law is approved,” revealed Senator Joker Arroyo. Arroyo added that the only kink that will be ironed out by congress is the manner by which the pay hike will be implemented. (PIA)