WEF/DC world competitition issues ERNIE B. SANTIAGO SEIPI PHILIPPINES SEIPI.

WEF/DC

world world competitition competitition

issuesissues

ERNIE B. SANTIAGOSEIPI

PHILIPPINES

SEIPI

worldwideoutsourcing

SEIPI

1. Is outsourcing significant in the Philippines?2. Does your country support offshore outsourcing?3. What is its economic impact in your country?4. How do you think will your country respond to protective measures being taken by US legislative?5. Should WEF support WEF?

THE PHILIPPINE

ECONOMY

a snapshot

SEIPI

Other Mftrs. 11%

Others2%

Garments7%

Electronics3%

Forest Based10%

Agro-Based

49%

Mineral Petroleum

18% 1976

…from coconut chips to microchips

Changing Face Of Exports

Electronics69%

2003

Processed Food2%

Coconut Products

1%

Others18%

Petroleum Products

1%

Mach/ Transport

Eqpt.5%

Garments6%

Electronics 68%

The Philippine Economy

SEIPI

10% of world supply of semiconductor manufacturing services

A Competitive Philippine Electronics Industry


50% world production of 2.5” HDD and 10% world production of 3.5” HDD Who are with us:

- INTEL PHILS. – has largest microprocessor & flash test factory

- TEXAS INSTRUMENTS PHILS - produces 100% of digital signal processors (DSPs) for Nokia cellphones and 80% for Siemens and Ericsson

- TOSHIBA PHILS.- has only 3 plants in the world that manufactures laptops, one of these is in the Philippines

- THREE OF THE LARGEST HDD PRODUCERS ARE IN THE PHILIPPINES: - Hitachi Ltd. (produces 500,000 HDDs a year); - Fujitsu Computer Product Corp. (manufacturer of HDDs for desktops, servers and file storage; magneto-resistive heads; & media disk); - Toshiba Philippines (HDDs, laptops)

SEIPI

Every month, the Philippines produces…

250, 000 LAPTOPS

6 million MAGNETIC HEADS

3 million DSPs

2.5 million HDDs

900, 000 LCDs

700, 000 ODDs

A Competitive Philippine Electronics Industry


SEIPI

THE PHILIPPINES:

an e-services hub

an update

SEIPI

E-SERVICES

1. CONTACT CENTER2. BPO3. SOFTWARE

DEVELOPMENT4. ASSEMBLY AND TEST/ ENGINEERING & DESIGN

SEIPI

THECONTACT

CENTER INDUSTRY

a snapshot

http://www.peoplesupport.com/default.asp

Contact Center Industry

As of 1As of 1stst Qtr. 2004: Qtr. 2004:Sites : 60+ call centers60+ call centersTotal Seats : 25,000 – 30,00025,000 – 30,000Total Employees : 35,000 – 40,00035,000 – 40,000Total Revenue : USD 400 – 480 USD 400 – 480 Million Million Projected Growth Rate : 100%100%

Majority of the top call centers have set up operations

over the last two years Convergys, Sykes, Teletech, APAC, ICT, West

Clients handled are Fortune 500 companies

INBOUND

• Inquiries (Products & Promos)

• Help desk / Technical Support (level 2)

• Payment Authorization

• Order Taking & Confirmation

• Complaints Handling

• Concierge Services

• Directory Assistance

OUTBOUND SUPPORT

• Telemarketing

• Telesurvey

• Telecollection

• Sales Verification

• Sales Dispatch

• Reactivation of lapsed accounts

Service Offerings


• Travel and hospitality• Technology• Financial services• Insurance & healthcare• Utilities• Telecom• Retail & Entertainment

Client Industries


PhoneFax

Voice MailE-mail

Click to ChatClick to Call

Other Web Collaboration Tools

Customer Touchpoints


Tremendous growth of call centers due to confluence of factors

Year # of Seats

2000 1,500

2001 3,500

2002 7,500

2003 20,000

Est 2004 40,000


THEBUSINESSPROCESS

OUTSOURCINGINDUSTRY

a snapshot

Business processes outsourced to the Philippines

Finance & Accounting• General accounting & bookkeeping services• Accounts maintenance • Accounts receivable collection • Invoice and accounts payable administration • Claims processing(pre-need industry)• Expense and revenue reporting, sales auditing• Payroll (including overtime tracking)• Asset management/accounting • Financial analysis and auditing • Management advisory services • Inventory control and purchasing • Tax reporting and other financial-related services (financial

leasing, credit cards, factoring and stock brokering)


HRPayroll Processing

Benefits Administration

Compensation Planning

Travel & Expense Management

Expatriate & Relocation Services

HR Data Management

Stock Options Administration

Employee Interface Services

Learning Systems Administration

HR Application Development & Management

Other Business Processes

• Data Entry/Data Processing (eg. policy registration/amendment, scanning, indexing)

• Agent accreditation• Membership enrollment reconciliation• Contract Drafting, review & audit• Inventory Control• Technology Support• Server Management• Litigation support• Scholarly publishing• Content conversion


Captive BPO Case Model

Philippine Trends and Predictions

http://asia.news.yahoo.com/

THESOFTWARE

DEVELOPMENTINDUSTRY

a snapshot

Presence of more than 200 software development firms for the foreign market

Firms intensively working towards CMM certifications (Accenture, RCG IT Manila & Azeus Systems Phils Inc are already CMM/CMMI Level 5 Certified)

Software Development

The 2002 Global New Economy Index of the META Group, a US-based research group, cited the Philippines for the “excellent availability” of skilled IT workers and for their proficiency in mainframes, minicomputers & microcomputers as well as for their technical & business skills for ICT projects.

Software Development

Presence of International Players Accenture, IBM Solutions, Sun Microsystems,

Software Ventures International (SVIC), Canon, NEC, ServiSoft (SPI Technologies), Jupiter Systems, ADTX, CyberJ Resources Inc.,SQL Wizard, Weserv Systems, ITS International, J-SYS Philippines, Inc., Tsukiden Software Philippines Group, Mysis Manila (SSC for banking software applications), Trend Micro

Philippine Trends and Predictions

THE PHILIPPINE

ELECTRONICS INDUSTRY

a snapshot

SEIPI

TOTAL PHILIPPINE EXPORTSTOTAL PHILIPPINE EXPORTS

Source: Bureau of Export Trade Promotion, DTI

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1995 1996 1997 1998 1999 2000

in US$ M

2001

SEIPI

2002 2003

PHILIPPINE EXPORTSWITHOUT ELECTRONICS

US$11B

PHILIPPINE EXPORTSWITH ELECTRONICS US$32B

US$ 38BUS$ 32B

US$ 29B

US$ 25B

US$ 20B

US$ 17B

US$35B

US$35B

TOP PHILIPPINE EXPORTSTOP PHILIPPINE EXPORTS

Source: BETP/DTISEIPI

% TO TOTALRP EXPORTS

TOP 5 EXPORTS2003

1. ELECTRONICS 68 %

2. Garments 6%

3. Fresh and

Processed Food 3%

4. Machinery and

Transport 3%

5. Metal

Manufactures 1%

DESTINATIONS DESTINATIONS OF ELECTRONICS EXPORTSOF ELECTRONICS EXPORTS

USA 2002-20%2003-14%

EUROPE 2002-22%2003-20% JAPAN

2002-14%2003-16%

ASEAN 2002-17%2003-20%

NIC ASIA 2002-21%2003-23%

Source: Bureau of Export Trade Promotion, DTISEIPI

CHINA 2002-4%2003-7%

EXPORTSEXPORTS OF ELECTRONICS INDUSTRYOF ELECTRONICS INDUSTRY

Source: Bureau of Export Trade Promotion, DTISEIPI

2003 24.60 B 2 % 68% 2004 May 10.30 B 8

% 67%

1992 2.97 B 20 % 28 %

YEAR EXPORTS(in US$)

GROWTH RATE

% TO RP EXPORTS

2001 21.90 B -20 % 68 %

19931994199519961997199819992000

3.78 B 4.89 B 7.55 B10.61 B14.98 B19.87 B25.34 B27.17 B

27 %28 %55 %40 %41 %33 %27 % 7 %

33 %36 %43 %52 %58 %67 %72%71 %

2002 24.26 B 11 % 69 %

Sources: Philippine Board of Investments (BOI) & Philippine Economic Zone Authority (PEZA)SEIPI

INVESTMENTS INVESTMENTS IN THE ELECTRONICS INDUSTRYIN THE ELECTRONICS INDUSTRY

2003 230 M2004 May 300 M

YEAR INVESTMENTS

US$ 40 M 220 M1.290 B2.160 B1.080 B1.470 B 670 M 790 M 1.240 B 720 M

270 M

199219931994199519961997199819992000 2001 2002

TARGETS TARGETS OF THE ELECTRONICS INDUSTRYOF THE ELECTRONICS INDUSTRY

YEAR

20022003

2004

INVESTMENTS(US $)

0.3 B0.3 B

1.0 B

EXPORTS(US$)

24.26 B (11%)24.60 B (2%)

27.00 B (10%)

TARGETS

SEIPI

COMPETITIVENESS COMPETITIVENESS OF THE ELECTRONICS INDUSTRYOF THE ELECTRONICS INDUSTRY

SEIPI

criticalmass ofglobal players

COMPANIES COMPANIES IN THE ELECTRONICS INDUSTRYIN THE ELECTRONICS INDUSTRY

Sources: Philippine Board of Investments (BOI) & Philippine Economic Zone Authority (PEZA)

Malaysia

2%

Others

8%

Europe

7%

Taiwan

4%

Singapore 2% Philippines

28%

Korea

10%Japan

30%

US

9%

SEIPI

NUMBER OF FIRMS

865 FIRMS

NATIONALITY:

72% Foreign28% Filipino

20032003

SEIPI

COMPETITIVENESS COMPETITIVENESS OF THE INDUSTRYOF THE INDUSTRY

people

EMPLOYMENT EMPLOYMENT IN THE ELECTRONICS INDUSTRYIN THE ELECTRONICS INDUSTRY

SEIPISources: Philippine Board of Investments (BOI) &

Philippine Economic Zone Authority (PEZA)

'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 ‘00

In thousands

0

50

100

150

200

250

300

350

3861

73 74 8090

120

220

69

42

4441

160

250

280

315

SemiconductorRest of Electronics

307

‘01

335

‘02

346

2003

Engineering Design Competitive Engineering Fundamentals

• University system produces qualified graduates with the necessary basic engineering skills.

• “The Philippines has good basic engineering curriculum” - Fluor Daniel Inc. Phils & JGC Philippines.

• Over 40,000 graduates annually

ENGINEERING and MATH / IT GRADUATES

46,090

38,91940,639 39,586 38,251

44,71846,794

21,338 19,494

25,05527,636

31,14426,888 28,231

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1995 1996 1997 1998 1999 2000 2001

Stu

dents

Enginering Graduates Math and Information Technology

SEIPI

Availability of Labor Skills• Over 75,000 licensed professionals (1995-2000)• OFWs - Skilled Construction Engineers, Technicians, etc.

– 2nd largest OFW earnings next to Mexico– Easily trainable in new technology – Overseas exposure to big-ticket projects

• H1 2001 DEPLOYMENT: 76% - MIDDLE EAST | 11% - ASIA | 6% - AMERICAS

5% - AFRICA | 1.39% - Australasia | 1.37% - EUROPE

DISCIPLINELicensees

(1995–2000)DISCIPLINE

Licensees (1995–2000)

Architect 9,306 Master Plumber 820

Civil Engineer 17,709 Mechanical Engineer 11,652

Interior Designer 274 Professional 671

Landscape Architect 45 Sanitary Engineer 289

Electrical Engineer 25,759 Geodetic Engineer 1,226

Professional 297 Junior 1,414

Associate 114

TOTAL 75,147Assistant 2,606

Master 2,965

Engineering Design

Competitive Labor Costs - 15%-30% of Salaries in USA, Japan & Singapore

English Proficiency (most widely-used Engineering Design software / technology is English & then French)

TYPICAL SOFTWARE• General Office Automation (Novell, Windows, Oracle, etc.)• Design and Engineering (STAAD, Frameworks, X-Steel, Piping, Mechanical,

Process, Electrical, Instrumentation, Autocad, etc.)• Project Management

– IDOC, BQR, J-DOME, MSR, IVIS, Project Control System, Material Control System, Piping Material Management System, etc.

Technological/Level of expertise of local workers in engineering design

Adherence to internationally accepted engineering standards • Computer-Aided Design & Drafting Skills (CADD) Training• Computer-Integrated Manufacturing/CIM Skills(CNC & NC Machines)• ISO Certification (Milestone: July 2001 =1000 firms certified)

Engineering Design

SEIPI

Fairchild Semiconductors – with 14 design engineers for D & D team

Engineering Design

Design & Development (D & D) Centers in the Philippines

SEIPI

NEC – with 60 design engineers for D & D team Saturn – 15 design engineers for D & D team Texas Instruments – 300-member package development center Lexmark – 200 engineers for its D & D team Intel – 200 development engineers and 70 design engineers

Better Quality Delivery At A Significantly

Reduced Cost

THE PHILIPPINE OUTSOURCING INDUSTRY

VALUE PROPOSITION

ALMOST ALL GLOBAL COMPANIES NOW DO A LOT OF OUTSOURCING ACTIVITIES. FROM COMPONENTS AND TEST ASSEMBLY ACTIVITIES, TO OUTSOURCING OF AFTER-SALES SUPPORT AND OTHER SERVICES LIKE ACCOUNTING, EMPLOYEE SERVICES, ETC.

IT WOULD BE FUTILE TO THINK THAT A U.S. LEGISLATION WOULD BLOCK OUTSOURCING AS IT CREATES PROFITS FOR U.S. COMPANIES.

SEIPI BELIEVES THAT WEF SHOULD SUPPORT OUTSOURCING AS IT FOSTERS A COMPETITIVE ENVIRONMENT IN DRIVING COST DOWN, AS WELL AS IN SPREADING KNOWLEDGE AND WEALTH TO DEVELOPING ECONOMIES

SEIPI

SEIPI

THEINDUSTRYROADMAP

a review

SEIPI

THEINDUSTRYROADMAP

a review

TRANSFORM THE PHILIPPINES INTO A REGIONAL CENTER OF EXCELLENCE

VISION

THE COMPETITIVE LANDSCAPE STUDYTHE COMPETITIVE LANDSCAPE STUDY

IN SELECTED ELECTRONICS INDUSTRY PRODUCTS AND PROCESSES

AND THUS BECOME THE INVESTMENT LOCATION OF CHOICE FOR DOMESTIC AND FOREIGN ORGANIZATIONS

WHO WISH TO DESIGN, MAKE AND SELL THEIR PRODUCTS

SEIPI

1. Improving the Country’s Competitiveness

2. Expanding the Value Chain of the Industry

THE STUDY ADDRESSES 2 KEY AREAS


SEIPI

2001 2008

EXPORTS US$ 22 B US$ 100 B

EMPLOYMENT 300,000 1,000,000

OBJECTIVES

1 Manufacturing Cost Control

2 Country Image

3 Targeted Sector Development

4 Allied Industry Development

5 MNCs and Domestic Value Chain Expansion

6 Center For Excellence

7 Wafer Fab

SEVEN (7) KEY INITIATIVES


SEIPI

1 MANUFACTURING

COST CONTROL

how we can reduce the cost of business


SEIPI

1. POWER COST

2. LABOR COST

3. TAXES

4. INCENTIVES

MANUFACTURING COST CONTROL

SEIPI


COST LESS ALL MATERIALS OTHER MATERIALS

1. DEPRECIATION 1. SUBSTRATES2. SALARIES & BENEFITS 2. LEADFRAMES3. SPARES 3. GOLDWIRE4. OMC 4. PACK MATERIALS5. POWER 5. MOLD

COMPOUND6. SUPPLIES 6. OTHER OM7. CIC 7. SUBCON ASS.8. OM AND CHIPS FRT

SEIPI


COST PARETO

16.00

4.00

5.00

11.00

17.00

9.00

38.00

2.78

3.50

4.63

6.07

6.79

6.66

10.99

13.89

44.11

0 10 20 30 40 50 60 70 80 90 100

Subcon Assy

Other OM

Mold Compound

Pack Mat'l

Goldwire

Leadframes

Substrates

Other Clam

OM&Chips Frt

CIC

Supplies

Power

OMC

Spares

Pay&Ben

Depreciation


2 COUNTRY IMAGE

how we can improve the image of the country

SEIPI

COUNTRY’S IMAGE

1. INFRASTRUCTURE

2. SECURITY

3. EDUCATION

4. PEACE AND ORDER

5. CORRUPTION

6. PROMOTION

SEIPI


3 TARGETED SECTOR

DEVELOPMENT

what should we do to further push the development of EMS

SEIPI

TARGETED SECTOR DEVELOPMENT

SMSSemiconductorManufacturing Service

EMSElectronicsManufacturing Service

WORLD

PHILIPPINES

US$ 150 B

US$ 16 B

US$ 650 B

US$ 6 B

2001

SEIPI


4 ALLIED INDUSTRY

DEVELOPMENT

what should we do to develop the allied

and support industry

SEIPI

PACKAGING CHEMICALS MACHINERY

AND EQUIPMENT METAL

STAMPING

METAL

CASTING

MACHINING

TOOLAND DIE

SERVICES

DIRECT MATERIALS/COMPONENTS

ALLIED INDUSTRY DEVELOPMENT

SEIPI

LOCAL MATERIALSARE NOT AVAILABLE

LOCAL MATERIALSARE MORE EXPENSIVE

LOCAL SUPPLIERS DIFFICULT TO FIND

LOCAL MATERIALS DO NOT MEET THE REQUIRED QUALITY STANDARDS

UNREALIABILITYOF LOCAL SUPPLIERS

ALLIED INDUSTRY DEVELOPMENT

INDUSTRY LOCALREQUIREMENTSNOT KNOWNTO MANY

SEIPI


5 MNCS AND DOMESTIC

VALUE CHAIN

EXPANSION

how can we retain

existing MNCs/Filipino

companies in the Philippines

SEIPI

0

2

4

6

8

10

12

1stQtr

2ndQtr

3rdQtr

4thQtr

HIGHER VALUE ADDED CAPABILITY(R&D, Chip Design, Etc)

1 1052 3 4 6 7 8 9

0

2

4

6

8

10

12

1stQtr

2ndQtr

3rdQtr

4thQtr

1 1051 1052 3 4 6 7 8 9

ASSEMBLY/MANUFACTURING CAPABILITY

(Assembly And Test)

SEIPI

SEIPI

FOUR (4) ENGINEERING FUNCTIONS

1. PRODUCT AND TEST

2. PROCESS

3. EQUIPMENT

4. QA/REL/FA

FOUR (4) LEVELS OF COMPETENCIES

LEVEL 2 – CAN WORK INDEPENDENTLY

LEVEL 3 – CAN TEACH AND LEAD PROBLEM SOLVING LEVEL 4 – CAN CHANGE AND IMPROVE WHAT IS KNOWN

LEVEL 1 – BASIC WORKING KNOWLEDGE


6 CENTER OF

EXCELLENCE

How do we envision the COE

SEIPI

BS ENGINEERING

TRACK 1Regular BS

TRACK 3BSEng Major in SET- Minor in Product Testing and Circuit Design- Certified by SEIPI

TRACK 2ELECTIVES

TRACK 4 REMEDIAL COURSES

-Statistics as applied in process-Kinematics as applied in mechatronics

-Material behavior as applied optimization, etc.

SEIPI

THE ENGINEERING GRADUATES PROGRAM

BS ENGINEERING: FROM 40K TO 200K

ARCDI - THE CAPACITY BUILDING PROGRAM

COURSES/TRAININGS

- VALUE ADDED

- ASSEMBLY/MANUFACTURING

LABORATORY

- EQUIPMENT, BOOKS, CDS, ETC.

VENUE:

- CONVERGENCE CENTER

SEIPI

SEIPI

THE HIGHER ADVANCED STUDY PROGRAM

2002 2008

MS 80 600

PHD 20 200


7 WAFER

FABRICATION

What should we do

SEIPI

ASIAN WAFER FAB TRENDS

CHINA - 31

TAIWAN - 28

MALAYSIA - 4

VIETNAM - 2 (Plans)

THAILAND - 1 (On hold)

SEIPI

WAFER FAB

EXPORTS 2001: US$ 22 BILLION

IMPORTS 2001: US$ 15 BILLION

Wafer - US$ 10-12 Billion

FACING THE CHALLENGES AND CHANGES AHEAD

Our industry has always been cyclicalbut in an upward direction.

This has not changed

Therefore, we must continue to do the right

thing to prepare for our future success

Knowing that adversity always transcends

unique opportunities, it is up to us to make

the most of it.SEIPI

SEIPI

some men see things

as they are

and say...why?

i dream things

that never were

and say...why not?

bob kennedy

SEIPI

SEIPI

A

SNAPSHOTOF SEIPI

June 2004

SEIPI

PROFILE OF SEIPI MEMBERSPROFILE OF SEIPI MEMBERS

SEIPI

SMALL, MEDIUM AND LARGE

FILIPINO AND FOREIGN

MANUFACTURERS, SUPPLIERS ANDOTHER ORGANIZATIONS

NUMBER AND SIZE OF SEIPI MEMBERSNUMBER AND SIZE OF SEIPI MEMBERS

SEIPI

92

45

0

20

40

60

80

100

120

140

160

180

93 94 95 96 97 98 99 00 01 02

44 4755

6979 83

107

138

170

192202

200

212

03 04 June

SMALL - 120 (R39/A62/A19)

MEDIUM - 51 (R41/A10)

LARGE - 41 (R24/A17)

212

CLASSIFICATION OF SEIPI MEMBERSCLASSIFICATION OF SEIPI MEMBERS

REGULAR- SEMICONDUCTOR- SEMICONDUCTOR - EDP - EDP- CONSUMER- CONSUMER - TELECOM - TELECOM- OFFICE EQUIPMENT - COMM AND RADAR- OFFICE EQUIPMENT - COMM AND RADAR- CONTROL AND INST. - MEDICAL & INDUSTRIALCONTROL AND INST. - MEDICAL & INDUSTRIAL- AUTOMOTIVE- AUTOMOTIVE - SUPPORT INDUSTRIES - SUPPORT INDUSTRIES

ASSOCIATE- MATERIALS SUPPLIERSMATERIALS SUPPLIERS- EQUIPMENT SUPPLIERS- EQUIPMENT SUPPLIERS- LOGISTICS PROVIDERS- LOGISTICS PROVIDERS- GAS COMPANIESGAS COMPANIES- INDUSTRIAL ESTATESINDUSTRIAL ESTATES- FINANCIAL/INSURANCE SERVICESFINANCIAL/INSURANCE SERVICES- IT/SOFTWARE SERVICESIT/SOFTWARE SERVICES- ENVIRONMENTAL MGT.SERVICESENVIRONMENTAL MGT.SERVICES- CONSTRUCTION FIRMSCONSTRUCTION FIRMS- CERTIFICATION BODIES- CERTIFICATION BODIES

AFFILIATE- ACADEME- ACADEME- CONSULTANTS- CONSULTANTS- ORGANIZATIONS- ORGANIZATIONS

SEIPI

212 MEMBERS

104 REGULARMEMBERS

(50%)89

ASSOCIATEMEMBERS

(42%)

19AFFILIATEMEMBERS

(8%)

NATIONALITIES OF MEMBERSNATIONALITIES OF MEMBERS

SEIPI

88 Foreign(85%)

104 REGULARMEMBERS

16 Filipino(15%)

89 ASSOCIATEMEMBERS

45 Filipino(50%)

44 Foreign(50%)

19 AFFILIATEMEMBERS

1 Foreign (5%)

18 Filipino(95%)

Japanese 45 (21%)American 35 (17%)European 21 (10%) German 10 German 10 SwissSwiss 6 6 DutchDutch 3 3

Swedish 1 Swedish 1 FrenchFrench 1 1

Asian 20 (10%) Singapore 9 Singapore 9

Korean 5 Korean 5 Taiwanese 3 Taiwanese 3 Malaysian 2 Malaysian 2 Thailand 1Thailand 1Others 13 (6%)

212

FILIPINO - 78 (36%)FOREIGN - 134 (64%)

ASSETSASSETS

SEIPI

3.1 3.3 3.2 2.8

4.6

6.2 6.7

16.2

3.6

0

2

4

6

8

10

12

14

16

18

92 93 94 95 96 97 98 99 00

In Million Pesos

01

22.6

20

02

20.219.4

03

Cash OtherAssets

REVENUE VS. EXPENSEREVENUE VS. EXPENSE

5.1

REVENUE

2.7

In Million Pesos

2.7 2.8 2.7

3.64.3

7.1

12.4

0

2

4

6

8

10

12

14

92 93 94 95 96 97 98 99 00 01

14.5

02

19.7

2.7 3.0

4.0 3.7 4.14.7

6.2

12.2

20.5

EXPENSE

03

17.817.0

16

3.6

SEIPI

FINANCIAL STATUSFINANCIAL STATUS

SEIPI

SEIPI ACCOUNTS (AS OF 21 JUNE 2004)

JUN 03 JUN 041. CASA ACCOUNTS - Peso 3,126,251 1,122,778

- US Dollar 57,817 45,3092. PLACEMENTS - US Dollar 210,975 219,241

TOTAL P17,372,220 P15,673,030

ALLOCATION (AS OF 21 JUNE 2004)

1. NWC - 6,326,245 3,906,994 2. SEIPI - _11,045,975 11,680,272

TOTAL P17,372,220 P15,673,030

VISION

OBJECTIVES

STRATEGIES

STRUCTURE

STAFFING

OPERATIONS

SEIPI VOSSSOSEIPI VOSSSO

SEIPI

SEIPI VISIONSEIPI VISION

VISION AND MISSION STATEMENT

TO ENHANCE THE COMPETITIVE ENVIRONMENT

FOR ELECTRONICS BUSINESS,

DRIVING THE PHILIPPINES TOWARDS

GLOBAL LEADERSHIP IN INFORMATION

AND COMMUNICATION TECHNOLOGY

SEIPI

OBJECTIVES AND STRATEGIESOBJECTIVES AND STRATEGIES

GAINS1 GLOBAL COMPETITIVENESS

2 ADVOCACY

3 INFORMATION

4 NETWORKING

5 SERVICES

SEIPI


1 GLOBAL COMPETITIVENESS To enhance the global competitiveness of the

industry by improving the technical core competencies of its workforce through the development of learning and capacity building programs

SEIPI

“SEIPI gives members the opportunity to share and learn the

best-known methods/global practices in high-technology

manufacturing” Numerous Global Competitiveness Training Programs, Center of Excellence, ARCDI, CEO Forum

and Learning Sessions, National Technical Symposium, others


2 ADVOCACY To advocate policy issues and concerns affecting the industry by taking an active role in public policy leadership and representing its members in various fora, dialogues and meetings with government and other concerned institutions aimed at reducing the cost of business

SEIPI

“SEIPI industry actions ensures that members’ concerns areheard at the highest level of government – a singlemanufacturer’s voice gets louder”

Power and Infrastructure Issues, Labor Policies, Security, Trade Facilitation, Movement of Goods, Finance Related Matters, Environment, others


3 INFORMATION To be a definitive source of industry information by providing SEIPI members and the public with relevant and up to date statistics, data, reports and other pertinent materials

SEIPI

“SEIPI serves as members’ one-stop center for information on

the Philippine electronics industry” Market Outlook, Industry Data and Statistics, Competitive Landscape Study, Industry Roadmap,

Publications and Newsletters, Proceedings, others


4 NETWORKING To encourage networking and sharing of information among members and establish linkage with other organizations in the Philippines and abroad by organizing and participating in various business and industry meetings, conferences, fellowships and events

SEIPI

“SEIPI provides members with a venue to exchange cards,

Information and initiate new business relationships”

More than 200 Industry Meetings/Activities/Events Per Year Participated In By Over 10,000 People

from the Industry


5 SERVICESTo provide relevant corporate support to

members by carrying out various professional business

and consultancy services addressing the needs and other requirements of SEIPI members

SEIPI

OPERATIONAL MANAGEMENT OPERATIONAL MANAGEMENT GROUPGROUP

STRATEGIC DIRECTIONSTRATEGIC DIRECTIONGROUPGROUP

VISION

OBJECTIVES

STRATEGIES

STRUCTURE

STAFFING

OPERATIONS

STRUCTURESTRUCTURE

SEIPI

MEMBERSHIP/NWC TRAINING PROGRAMSINDUSTRY SEMINARSTECHNICAL SYMPOSIUMSTRUCTURESTRUCTURE

SEIPI

ASSOCIATION OF SEMICONDUCTOR AND ASSOCIATION OF SEMICONDUCTOR AND ELECTRONICS FINANCE EXECUTIVESELECTRONICS FINANCE EXECUTIVES

ASSOCIATION OF SEMICONDUCTOR AND ASSOCIATION OF SEMICONDUCTOR AND ELECTRONICS MANUFACTURING ENGINEERSELECTRONICS MANUFACTURING ENGINEERS

OFFICE OF THE OFFICE OF THE EXECUTIVE EXECUTIVE DIRECTORDIRECTOR

OEDOED

TWG/COMMITTEETWG/COMMITTEE

ASSOCIATION OF ENVIRONMENT AND SAFETY ASSOCIATION OF ENVIRONMENT AND SAFETY SEMICONDUCTOR ENGINEERS IN THE PHILIPPINESSEMICONDUCTOR ENGINEERS IN THE PHILIPPINES

ASSOCIATION OF SEIPI PERSONNEL ADMINISTRATORSASSOCIATION OF SEIPI PERSONNEL ADMINISTRATORS

OPERATIONAL MANAGEMENT GROUPOPERATIONAL MANAGEMENT GROUP

NWC NWC

ASSOCIATION OF SEIPI PURCHASING MANAGERSASSOCIATION OF SEIPI PURCHASING MANAGERS

SEIPI TRAFFIC MANAGERS ASSOCIATIONSSEIPI TRAFFIC MANAGERS ASSOCIATIONS

ASSOCIATION OF SEIPI ASSOCIATE MEMBERSASSOCIATION OF SEIPI ASSOCIATE MEMBERS

ASSOCIATION OF SEIPI INFORMATION ASSOCIATION OF SEIPI INFORMATION TECHNOLOGY EXECUTIVES AND PROFESSIONALSTECHNOLOGY EXECUTIVES AND PROFESSIONALS

SEIPI SECURITY COMMITTEESEIPI SECURITY COMMITTEE

INTERNAL AFFAIRSINTERNAL AFFAIRSEXTERNAL AFFAIRSEXTERNAL AFFAIRSCOMMUNICATIONS AND PROMOTIONSCOMMUNICATIONS AND PROMOTIONSNWC COORDINATIONNWC COORDINATIONTWG/COMMITTEE COORDINATIONTWG/COMMITTEE COORDINATIONPUBLIC POLICY LEADERSHIPPUBLIC POLICY LEADERSHIPCORPORATE SERVICESCORPORATE SERVICES

POWERPOWER MEMBERSHIP MEMBERSHIPLABOR LABOR EXHIBITION EXHIBITIONINFRASTRUCTURE SPECIAL PROJECTSINFRASTRUCTURE SPECIAL PROJECTSCOE COE MARCOM MARCOMALLIED/SUPPORT SPORTSALLIED/SUPPORT SPORTS

POWER POWER

BOARD OFBOARD OFTRUSTEESTRUSTEES

SEIPISEIPIOFFICERSOFFICERSPRESIDENTPRESIDENT12 VPs12 VPsSecretarySecretaryTreasurerTreasurer

EXCOM EXCOM

SECIAL PROJECTS SECIAL PROJECTS

ALLIED AND SUPPORT ALLIED AND SUPPORT

MEMBERSHIPMEMBERSHIP

EXHIBITIONEXHIBITION

STRATEGIC DIRECTION GROUPSTRATEGIC DIRECTION GROUP

LABORLABOR

INFRASTRUCTUREINFRASTRUCTURE

MARCOM MARCOM

COECOE

SPORTSSPORTS

STRUCTURESTRUCTURE

SEIPI

Executive Committee

Technical Working Groups/Committees

SEIPI BOARD OF DIRECTORS/ OFFICERSSEIPI BOARD OF DIRECTORS/ OFFICERS1 President

12 Vice Presidents1 Secretary 1 Treasurer

THE STRATEGIC DIRECTION GROUPTHE STRATEGIC DIRECTION GROUP

TWG Allied and Support Industry Development

Membership Committee

Special Projects/Anniv

TWG on Power

TWG on COE

MarCom Committee

TWG on Infrastructure

Sports Committee

Exhibition CommitteeTWG on Labor

STAFFINGSTAFFING

THE STRATEGIC DIRECTION GROUPTHE STRATEGIC DIRECTION GROUP

SEIPI OFFICERS 2004-2005President ARTHUR YOUNGPresident ARTHUR YOUNGVice PresidentsVice Presidents

MELBA CUYAHON MELBA CUYAHON ED FORTUNADO ED FORTUNADO IPPEI FUTAKI IPPEI FUTAKI PETER IREDALEPETER IREDALE MORRY OPPENHEIMMORRY OPPENHEIM MIKE PETRUCCIMIKE PETRUCCI LARRY QUALARRY QUA EYNOLLAH EYNOLLAH

RAHIDEHRAHIDEH ART TAN ART TAN JIM TOBOJKAJIM TOBOJKA BING VIERABING VIERA GLENN GLENN

WESTERMANWESTERMANSecretary ERNIE SANTIAGOSecretary ERNIE SANTIAGOTreasurer DAN LACHICATreasurer DAN LACHICA

TWG/OTHER COMMITTEES 1. POWER - ________2. LABOR - ________3. INFRASTRUCTURE - ________4. COE - ________5. ALLIED & SUPPORT - ________

6. MEMBERSHIP - ________7. EXHIBITION - ________8. SPECIAL PROJECTS - ________9. MARCOM - ________10. SPORTS - ________

EXCOM1. President2. Secretary/Executive

Director3. Treasurer

STRUCTURESTRUCTURE

SEIPI

OFFICE OF THE EXECUTIVE DIRECTOROFFICE OF THE EXECUTIVE DIRECTOR

NETWORKING COMMITTEESNETWORKING COMMITTEES

OEDOED

Internal Affairs

External Affairs

Communications and Promotions

NWC Coordination

TWG Coordination

AESSEP

ASEMEP

ASPA

SETMA

ASEFEX

ASITEP

ASPM

ASAAM

THE OPERATIONS MANAGEMENT GROUPTHE OPERATIONS MANAGEMENT GROUP

TWG/COMMITTEESTWG/COMMITTEES

SSAP

TWG Allied and Support Industry

Membership Committee

Special Projects Committee

TWG on Power Concerns

TWG on Center of Excellence

MarCom Committee

TWG on Labor Concerns

Sports Committee

SEIPI Exhibition Committee

Public Policy Advocacy

Corporate Services

TWG on Infrastructure Concerns

EXECUTIVE DIRECTOR

ERNIE B. SANTIAGO5 Technical StaffJAFFY JURADOMAAN YUANA COSCOLLUELACHRISTINA BAUTISTATRINA NUGUID5 Administrative

Support

STAFFINGSTAFFING

THE OPERATIONS MANAGEMENT GROUPTHE OPERATIONS MANAGEMENT GROUP

OFFICE OF THE EXECUTIVE DIRECTOR (OED)

SEIPI

NWC CHAIRPERSONS1. EDIL MENDOZA (IMI) - AESSEP2. ABE BUENALUZ (APC) - ASEFEX 3. RICO DELMORO (VISHAY) - ASEMEP4. JOBBIT MATA (AMKOR) - ASITEP5. JUN MAYO (IDT) - ASPA 6. JING CONSENGCO (PSI) - ASPM 7. RENE CANTOS (TEMIC) - SETMA8. TING MAGAT (PSI) - SSC 9. JB DIMAYUGA (AUROTECH) - ASAAM

TWG/COMMITTEES CHAIRPERSONS1. ARNEL ABJELINA (INTEL) - TWG ON

INFRASTRUCTURE2. VIC GUMBAN (ANALOG) - TWG ON POWER3. LITO ZULAYBAR (INTEL) - TWG ON COE4. FRED BLANCAS (IMI) - TWG ON MARCOM

OPERATIONSOPERATIONS

SEIPI

GLOBAL COMPETITIVENESS PROGRAMS 2004-2005

1. CENTER OF EXCELLENCE PROGRAM- BS Course/Curriculum - ARCDI- PHD/MS Program

2. LEARNING PROGRAMS - NWC Learning Sessions - CEO Forum - NTS, ESD, Others

3. DEVELOPMENT OF ALLIED AND SUPPORT INDUSTRY PROGRAM - Direct and Indirect

Materials

and Services

4. INFORMATION TECHNOLOGY INITIATIVES PROGRAMS - E-vertical Project - AEDS - Rosettanet Project

5. SCHOLARSHIPS/GRANTS - Inwent, Jetro, Others


SEIPI

ADVOCACY PROGRAMS 2004-2005

1. POWER- Franchise Tax- Inter-Class Cross Subsidies- Excess Power

2. LABOR- Compressed Workweek- Project Based Employment- DL Hiring/OFW

3. INFRASTRUCTURE

4. FINANCE - Tax Credit Claims/ - FS Foreign Currency

5. INCENTIVES

6. TRADE FACILITATION - ASEAN Electronics Forum

7. COUNTRY IMAGE - Security/Hijacking - Promotion


INFORMATION PROGRAMS 2004-2005

1. SEIPI PUBLICATIONS- SEIPI Digest- SEIPI Catalogue, Directory/Others

2. INDUSTRY STATISTICS/INFORMATION- Exports, Imports, Investments- Business and Market Outlook- Trade Opportunity Reports

3. SEIPI WEBSITE

4. SEIPI LIBRARY

5. MEDIA RELATIONS

6. INDUSTRY PRESENTATIONS/BRIEFINGS- IMF/WB, Analyst/Research Institutions, Government, Foreign Investors/Missions, Academe, Industry Organizations, MediaSEIPI


NETWORKING PROGRAMS 2004-2005

1. GENERAL MEMBERSHIP MEETINGS- 4 times (July, October, January and April)

2. SEIPI BOARD MEETINGS- At least 5 (Sep, Dec, Feb, May and Jun)

3. SEIPI EXCOM – In between Board Meetings

4. NWC MONTHLY MEETINGS - 9 x 12 months

5. NWC MANCOM - Semestral (Sep, Mar)

6. TWG / COMMITTEE MEETINGS - As needed

7. SPORTS FELLOWSHIPS

8. SEIPI INDUSTRY LINKAGES- Local and Foreign Organizations, WEF

9. CORPORATE SOCIAL RESPONSIBILITY - Children’s Hour, Habitat, othersSEIPI


SERVICES PROGRAMS 2004-2005

1. FINANCE AND ADMINISTRATIVE MANAGEMENT- Finance and Administration

2. BUSINESS CENTER- Training Facilities- Product Showcase- Meeting Rooms

3. OTHER SERVICES- Consultancy on Government Laws and Policies, Business Meetings with Government, Arbitration- Individual Member’s Concerns (Certifications,

Endorsements, Visas, Pioneer Status, Other Issues and Concerns)

SEIPI

VISIONOBJECTIVESSTRATEGIESSTRUCTURESTAFFINGOPERATIONS

GENERAL MEMBERSHIP

STRATEGICDIRECTION GROUP(SEIPI BOARDOF TRUSTEES)

OPERATIONALMANAGEMENT GROUP(OFFICE OF THE EXEC. DIRECTOR)

NWC1. AESSEP (EHS/FACILITIES )2. ASEFEX (FINANCE)3. ASEMEP (MANUFACTURING)4. ASITEP (IT)5. ASPA (PERSONNEL)6. ASPM (PURCHASING)7. SETMA (TRAFFIC)8. ASAAM (ASSOCIATE/AFF)9. SSC (SECURITY)

SEIPI COMMITTEES/TWGS1. MEMBERSHIP2. INFRASTRUCTURE3. TRADE FACILITATION4. COE5. MARKETING/COMM6. SPORTS

+

+

SEIPI

GLOBAL COMPETITIVENESS-TRAININGS-COE-STUDIES

ADVOCACY-GOVERNMENT ISSUES AND CONCERNS

INFORMATION-INDUSTRY STATISTICS/DATA-PUBLICATIONS

NETWORKING-GMM -NWC-SPORTS-SPECIAL MEETINGS

SERVICES-A TO Z OF SERVICESSEIPI

VISIONOBJECTIVESSTRATEGIESSTRUCTURESTAFFINGOPERATIONS

GENERAL MEMBERSHIP

STRATEGICDIRECTION GROUP(SEIPI BOARDOF TRUSTEES)

OPERATIONALMANAGEMENT GROUP(OFFICE OF THE EXEC. DIRECTOR)

NWC1. AESSEP EHS/FAC2. ASEFEX FINANCE 3. ASEMEP MANUF)4. ASITEP IT5. ASPA PERSONNEL6. ASPM PURCHASING7. SETMA TRAFFIC8. ASAAM ASSOC/AFF9. SSC SECURITY

SEIPI COMMITTEES/TWGS1. MEMBERSHIP2. SPORTS3. INFRASTRUCTURE4. TRADE FACILITATION5. COE6. MARCOM

+

+

SEIPI

GLOBAL COMPETITIVENESS

-TRAININGS-COE-STUDIES

ADVOCACY

-GOVERNMENT ISSUES AND CONCERNS

INFORMATION

-INDUSTRY STATISTICS AND DATA- PUBLICATIONS

NETWORKING-GMM -NWC -SPORTS-SPECIAL MEETINGS

SERVICES

-A TO Z OF SERVICES

SEIPI’s RECENT MILESTONES

•Over 100 Training Modules•Advocacy On Power, Infra, AMLA, Minimum Wage, DO 40-03, Foreign Currency F/S Reporting, Anti-hijacking, Others•Over P1B VAT Refund•Completed Industry Study•Launched COE Project•Rolled Out AEDS•Organized PSEE, NTS, Other Symposia And Conferences•Established Linkage With Foreign Industry Orgs.

•Implemented Over 100 Events

Participated In By Over

20,000 SEIPI People

SEIPI

IN SUMMARY…IN SUMMARY…1. SEIPI PROVIDES MEMBERS WITH

EXCELLENT NETWORKING OPPORTUNITIES - SEIPI activities provide a venue to exchange cards, information, and initiate new business relationships

4. SEIPI INDUSTRY ACTIONS ENSURES THAT MEMBERS’ CONCERNS ARE HEARD AT THE HIGHEST LEVEL OF GOVERNMENT – A single manufacturer’s voice gets louder.

3. SEIPI GIVES MEMBERS THE EDGE IN DOING ELECTRONICS BUSINESS, and affords them THE OPPORTUNITY TO SHARE AND LEARN the best-known methods/global practices in high-tech manufacturing

2. SEIPI SERVES AS MEMBERS’ ONE-STOP CENTER FOR INFORMATION on the Philippine electronics industry

SEIPI

SEIPI

Philippines: At a glance

• Land Area: 300.000 km2

• Population: 80,429,492 (of which 83.76% belongs to 0-44 age groups)

• Capital City: Metro Manila

• Political Structure: Democratic (Presidential System)

• National Language: Filipino

• Official Language: English

• Religion: 93% Christian Believers of which 83% are Catholic

SEIPI


Regional Hub for Logistics (Fedex, UPS, Lufthansa Technik)

Good Access to the important 550 Million People ASEAN Market

Reachable within 4 hours by plane from Asian key cities• Japan• Korea• China• Singapore• Taiwan• Thailand• Indonesia

CITY Flight Hours CITY Flight Hours

Frankfurt 1300 Tokyo 0335

Paris 1640 Seoul 0400

Brussels 1416 Shanghai 0220

London 1400 Singapore 0300

Strategically Located in Asia


Macroeconomic Performance

• GNP exceeded the government’s forecast

• GDP accelerated in 2003 despite numerous threats

Source: NEDA


3.317.95.1NFIA

6.44.74.4GDP

6.25.64.5GNP

Q1200420032002

Growth Rates (%)

-0.5

3.64.2 3.7

5.2

0.1

6.25.6

4.63.33.9

3.2

6.4

4.7

-101234567

1998 1999 2000 2001 2002 2003 Q12004GNP GDPSEIPI

Aggregate Supply


Growth Rates (%)

2002 2003 Q12004

Agri, Fishery, Forestry 3.3 3.8 7.7

Industry 3.7 3.8 5.5

Services 5.4 5.8 6.4

Transport., Comm., Storage 8.9 8.6 9.3

Trade 5.8 5.7 6.9

Finance 3.4 7.1 6.9

O. Dwellings & Real Estate 1.7 4.0 3.6

Private Services 5.5 5.1 6.6

Government Services 4.7 2.9 2.6

Source: NEDA

Average Job Generation*

1998-2000

2001-2003

(in thousands)

Total 326 1,058

Agriculture (94) 341

Industry (53) 128

Services 473 591

Source of basic data: Labor Force Survey (NSO)

*Net of losses

• Job creation was boosted across all major sectors


SEIPI

Considerations: Considerations: QUALITY, COST COMPETITIVENESS AND AVAILABILITY QUALITY, COST COMPETITIVENESS AND AVAILABILITY (0=best; 10=worst)

Source: Survey by the Political & Economic Risk Consultancy Ltd.

RATINGRATING OF PHILIPPINE LABOR OF PHILIPPINE LABOR

India 2.00PhilippinesPhilippines 2.632.63China 3.46Australia 3.90Japan 4.55Taiwan 4.27Vietnam 4.67South Korea 4.72Malaysia 4.83Singapore 5.04Thailand 5.08Hong Kong 5.10Indonesia 5.85

COUNTRY RATING

SEIPI

Source: Watson Wyatt in Asiaweek

Salary Per Month (US$)Mfg Factory/ Software Prod

Country CEO Director Plant Developer SupvMgr

Japan 18,300 12,045 7,992 4,708 3,485Hong Kong 15,975 10,150 7,044 3,774 2,567Taiwan 13,638 6,986 6,036 2,058 2,253Singapore 11,131 6,740 4,639 2,792 1,847S. Korea 9,800 4,551 3,483 2,119 1,922Malaysia 7,127 4,364 2,033 864 728Philippines 5,916 2,368 1,623 547 449Thailand 5,075 2,772 1,931 927 618Indonesia 3,567 2,181 915 533 315China 2,865 1,866 1,399 746 589India 1,764 937 724 490 384

COST COMPETITIVENESS OF LABORCOST COMPETITIVENESS OF LABOR

SEIPI

Date post:	11-Jan-2016
Category:	Documents
Upload:	norah-burke
View:	223 times
Download:	4 times

WEF/DC world competitition issues ERNIE B. SANTIAGO SEIPI PHILIPPINES SEIPI.

Documents