Lalamove announced its strengthened partnership with the Department of Trade and Industry Region 3 (DTI-3)

Third-party logistics solutions provider Lalamove announced its strengthened partnership with the Department of Trade and Industry Region 3 (DTI-3) for the upcoming Likha ng Central Luzon Trade Fair. The partnership sees Lalamove’s continued support of the government’s efforts to empower micro, small and medium enterprises (MSMEs) under the One Town, One Product (OTOP) Philippines stimulus program. 

 

This entails the provision of business logistics solutions to businesses across provinces within Central Luzon – namely Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac and Zambales – that are designed to drive growth, widen reach, and boost economic performance.

 

A collaboration to further Central Luzon’s growth

 

This collaboration between Lalamove and DTI is in line with the latter’s promotion of entrepreneurship across the Philippines, and its continued advocacy for local products and goods. Supported by the Regional Development Council-3 and the Central Luzon Growth Corridor Foundation, Inc., it furthers the Department’s mandate to drive inclusive economic growth across all regions, provinces, and cities in the country.

Likha ng Central Luzon Trade Fair, a major regional trade promotion activity jointly organized by DTI-3 and Philexport-3 aims to gather and champion the region’s entrepreneurs. The annual event will run its 24th edition on October 26-30, 2022 at the Mega Trade Hall, SM Megamall. 

 

“By working together with logistics partner Lalamove, we hope to bridge the gap between Central Luzon communities, shine a light on the beauty of Filipino craftsmanship, creativity and ingenuity by opening the avenue for MSMEs to reach wider markets without compromising affordability and efficiency, and ultimately boost regional commerce across the country,”  DTI-3 Assistant Regional Director Brigida Pili commented.

 

Business solutions for MSME growth & empowerment

 

“As an advocate for MSME growth and empowerment, especially at the regional level, we hope to serve as a platform that enables connection among markets and communities in the Philippines, starting with Central Luzon. By working closely with the government to provide access to local entrepreneurs, we hope more businesses will feel more empowered and confident to grow their businesses further, and reach farther, with Lalamove,” expressed Dannah Majarocon, Lalamove Philippines Managing Director. 

 

Through the on-demand delivery platform’s long-distance delivery and last-mile delivery solutions, the partnership hopes to push entrepreneurs to grow further with the app’s affordable rates (fixed price for the first 40 kms), reach farther with wider coverage across 31 serviceable areas in Luzon, and broaden their market through a wide-ranging fleet of vehicles fit for every delivery requirement. 

 

Through these offerings and more, MSMEs can easily widen their scope for both B2B and B2C deliveries, effectively opening new opportunities for growth with Lalamove. This, tied with the Likha ng Central Luzon Trade Fair, and entrepreneurs across Central Luzon are given the perfect avenue to establish new partnerships, promotions and connections with neighbouring provinces and communities. 

 

With the Lalamove app, MSMEs can book from Pampanga, Manila, Olongapo and Tarlac within Central Luzon, or across Luzon, for their business needs. They will immediately have access to features such as route optimization, trusted partner drivers, and multi-stop deliveries, to name a few, plus a fleet of motorcycles, sedans, 4-wheel, 6-wheel, and even 10-wheel trucks to tap. As corporate clients, MSMEs can unlock further tools to enrich their ventures, including optimal support from the Lalamove team for growing businesses. 

 

Download the app and sign up for a Lalamove for Business account at https://www.lalamove.com/en-ph/business.

 

Public encouraged to ‘buy local’ to support small biz owners

The considerable resources of the Association of the Filipino Franchisers Inc. (AFFI), the Department of Trade and Industry (DTI), Go Negosyo, SM Foundation, Security Bank, and Union Bank are being brought to bear in efforts to jumpstart a languid economy stalled by the effects of the three-month long coronavirus lockdown.

The multi-sectoral group is raising awareness on the plight of millions of Micro Enterprises and Small and Mid-Sized Enterprises – collectively, the MSMEs – in the hopes of coaxing the buying public into increased patronage.

The group has thrown together a campaign called BUYANIHAN; a creative juxtaposition of the word buy and the local idiom bayanihan, referring to a spirit of communal unity and cooperation, as an economic lifeline.

Though deadly and extensive, the pandemic is not isolated on the health-front.

When the enhanced community quarantine (ECQ) was invoked throughout Luzon, establishments providing basic necessities and services were deemed essential and were allowed to remain open, albeit on a skeleton force.

Much of those belonging to the MSMEs, however, were not listed. They were hit hardest due to the closure of malls and retail establishments. As were micro enterprises like barbershops and salons, massage parlors and spas, and the neighborhood street peddlers.

“These businesses have lost a significant amount of income due to the challenges of the ECQ,” said DTI Secretary Ramon Lopez, explaining BUYANIHAN’s rationale. “We need to ensure their survival.”

DTI revealed that of the 1.42 million registered businesses, an overwhelming 99.6% belong to MSMEs, with the majority, 88.5%, classified as micro enterprises.

They generate 63.19% of the country’s total employment figures.

“MSMEs are the backbone of our economy. This virus has brought a devastating blow to the physical and financial health of our nation. And we must work together to save both,” continued Lopez. 

Prior to the ECQ, economists projected rosy targets of 6.5% to 7.5% GDP growth for the Philippines this year. 

On March 19, around when the lockdown commenced, those numbers were lowered to a pragmatic 4.3% to a dismal minus (-)3.9%.

Pessimism is reasonable, in light of the wholesale impact on declining transport, tourism, exports, remittances, and reduced consumption; historically, the main driver of the Philippine economy.

Even Facebook last May said that one in three small businesses that have shut down don’t expect to reopen again.

When you consider that most MSMEs are located at the National Capital Region, Region IV‑A (CALABARZON), and Region III (Central Luzon) – regions in the main island from which 73% of the country’s GDP comes from and where the lockdown was rigorously enforced – then the true weight of the ECQ becomes clear.

This is because MSMEs rely on cash flow for daily operations: salaries to be paid, employee benefits to be fulfilled, rent, loans, supplier accountabilities, and credit card bills are still due. Although the quarantine levels have now lightened, during the ECQ they have had zero cash flow.

Perhaps more than any entity aware of the hit that MSMEs are experiencing is the SM Group, the Philippines’ largest mall operator and consequently it’s biggest retail space lessor. 

Its SM Foundation has been generous in providing funds, medical supplies, and protective equipment. Its SM Supermalls have waived rentals from March 16 to April 14.

“We share our tenant-partners’ concerns at the unfortunate situation and will waive rental charges for those affected and unable to operate during this period,” said SM Supermalls President Steven Tan. “This support forms part of our commitment to fight the effects of the outbreak.”

That alone benefits 19,153 SM mall tenants nationwide whose doors are now slowly but surely reopening for business.

Security Bank, one of the country’s leading universal banks and cited by Asiamoney as the “Best Bank for SMEs” in 2017 and 2019, eased its process for facilitating business loans for MSMEs in need of liquidity and lowered percentage in its Ecommerce payment gateway.

“The COVID-19 pandemic has brought the world unprecedented disruption, but with each of us doing our part, we will overcome this challenge and get better,” said Security Bank President and CEO Sanjiv Vohra.

Meanwhile, Union Bank, ranked by the BankQuality Consumer Survey on Retail Banks as

the second most helpful bank in Asia-Pacific during the coronavirus crisis – the only Philippine bank in the top 20 list – eased up account openings by shifting it online and providing checking accounts with affordable depository requirements, enabling MSMEs to further legitimize their businesses.

So there is hope. 

Easing of quarantine restrictions is a good first step. Provided the population behaves in ways that stem the infectious tide, then the wheels of commerce can start turning again.

And as these economic engines came to a screeching halt, it will take no more than a concerted effort to jolt it back from inertia. A bayanihan movement, if you will. 

Or, a BUYANIHAN.

“MSMEs took a direct hit, incurred big losses,” said AFFI President Jorge Noel Wieneke. “It’s back to zero for many, or back to the starting line. They are now in the ‘ICU’ and they need a blood transfusion. We can fix this with a BUYANIHAN spirit.”

It is a simple, doable solution. Consumers just need to start consuming again. Start buying again.

But for now, buy local to support our MSMEs.

Construction sector is starting to express unease over DAO 17-02 implementation

DTI order to bloat cement prices, put construction industry in jeopardy

With its imposition of a burdensome requirements on pure importers of cement , the Department of Trade and Industry (DTI) is in a collision course with President Rodrigo Duterte, who vowed to reduce bureaucratic red tape to ease the process of doing business in the country.

Making matters worse, the DTI imposition will jeopardize the massive infrastructure projects under the Duterte administration's Build, Build, Build program through high construction cost by bringing prices of cement to stratospheric heights.

The President made the vow in his first State of the Nation Address (SONA) on July 25, 2016 and repeated it in his second SONA on Monday, July 24, 2017.

"A year ago, I also warned government officials and employees that I will never tolerate corruption in my administration, not even a whiff of it. Let the dismissal of several high-ranking officials — whom I myself appointed — serve as a warning to all that I will never back down on my commitment to cleanse this government," Duterte said in his second SONA to the applause of the audience.

Duterte is aware that corruption is still happening.

"Since we launched this hotline (8888), we have received numerous complaints from the public on government… slow government processing and clearance, of changing procedures and requirements, centralized issuance of clearances and permits in Metro Manila, and discourteous government employees, among others," Duterte said in his second SONA.

Also, speaking before an investment forum in Davao City recently, he said: “I would like to destroy government itself.... If I had my way, I would  reinvent (it). We can have less powers but more efficient organization...If there’s an ideal setup that we can follow, I’d be glad to put in place something of a bureaucratic authority that would move by itself automatically...”

The President also bared plans to summon officials facing complaints from the public. If proven they have committed irregularities, Duterte said, he would ask them to resign or else he would fire them. He said he was ready to give them another chance but they have to “kneel down” before the public and vow to improve their service.

 

In an earlier speech, Duterte had said: "The fight (against corruption) will be relentless and it will be sustained... I order all department secretaries and heads of agencies to remove redundant requirements and compliance with one department or agency shall be accepted as sufficient for all...(They should) refrain from changing and bending rules, government contracts, transactions and projects already approved and awaiting implementation... Changing the rules when the game is ongoing is wrong.”

But according to industry sources, those in the DTI have turned a deaf ear to the President's resolve to cut red tape in government as they have issued  an order that imposes an additional burden on small cement importers. This, it is feared, could only lead to the emergence of a cartel composed of giant cement manufacturers-importers who reportedly want to bring back cement prices to the P300 per bag level in 2015 from its present price of about P197 per bag.

While requesting anonymity, industry sources have welcomed the filing of a graft and corruption complaint against a DTI undersecretary before the Office of the Ombudsman for the official’s role in having the DTI’s Bureau of Philippines Standards issue Department Administrative Order (DAO) 17-02/05. At the same time, the source said that a separate case is being prepared against another  DTI official for approving the highly controversial order without going through proper public consultation. He also claims that the rush to cure the flawed order is being kept under wraps by the DTI.

The controversial DAO requires importers to secure an  Import Commodity Clearance (ICC) on top of the 'PS' or Philippine Standard mark for imported cement. The DAO, however, exempts from the ICC requirement the big cement manufacturers operating integrated cement plants in the country but also importing cement. 

Several reasons have been cited why the DAO 17-02 and subsequent DAOs should be suspended or totally revoked.

"The DTI order creates an environment which could threaten the stability of the cement prices in the market as the DAO 17-02/05 is a surefire formula for prices to spike uncontrollably and for supply to be manipulated,” said a source in the construction sector.

The source pointed out that in 2014, the cement price was around P300; when importers entered the picture, the price immediately fell to around P217; currently, the price hovers at around P197. 

This, the insider said, "offers solid proof that open competition augurs well for the public."

“If  DAO 17-02/05 was intended to protect the public by ensuring the quality of the imported cement, the industry group wondered why  both manufacturers-importers and small  importers get their cement from the same plant abroad:  So how could there be any difference in quality?” he asked.

“At the same time, if quality is the issue as announced by the DTI official recently in defending the order, why are the big manufacturers-importers trying to negotiate with cement plants abroad so they can exclusively sell cement in the Philippine market, thus removing  the pure importers from the equation?” he added.

The  DTI order could actually set back the implementation of the Build, Build, Build infrastructure development program of the Duterte administration as cement supply from local manufacturers may not be sufficient to meet the expected big demand for the commodity, the industry source said.

The insider lamented that the DTI "wittingly or unwittingly strengthens the stranglehold by a few giant cement manufacturers-importers that have been acting as a de facto cartel to dictate cement  prices in the domestic market."

Prior to the implementation of DAO 17-02, the release of covered imported cement was allowed by mere presentation of the PS mark.  An ICC was not required, whether the cement importer operated or did not operate an integrated cement plant in the country.

The DTI order, the source added,  is "arbitrary and capricious as this was issued without any proper public consultation." 

Moreover, the insider said that if this DAO is implemented, "the highly ambitious P9 trillion Build, Build, Build infrastructure program will be the first to feel the impact with skyrocketing cement prices and manipulated supply. At the same time, the public is expected to bear the brunt of such protectionist move."

As this develops, the construction sector is starting  to express unease over the order as such move will surely escalate prices and will throw their signed contracts in disarray.