3rd ASEAN Global Product Strategy (GPS) Leadership Meeting

held in Kuala Lumpur, Malaysia on November 02, 2016 was attended by delegates from Indonesia, Japan, Malaysia, Philippines, Singapore, Thailand and Vietnam. It must be noted that the ICCA Capacity Building Task Force re-evaluated its set strategic objectives previously defined as “GPS awareness building workshop”, “Basic Product Stewardship” and “Chemicals Management in Downstream Customers”. ICCA knew that it would be a good idea for now to look back and re-design our future activities to reach the CB goals. In that sense, ICCA believes that ASEAN Expert meeting is one of the best opportunities to discuss such things by experts’ proactive participation from each country. Ms. Kaori Matsue, ICCA Capacity Building Task Force Chairwoman (CB TF), presented the update from ICCA CP&H LG Meeting in Mid-land while Mr. Kazukuni Saito discussed the update on International Activities around Sound Chemical Management from the 2016 APEC SOM3 Chemical Dialogue in Peru and the release of JCIA BIGDr English Version.

1st ASEAN Chemical Industry Regulatory Cooperation Workshop

The 1st ASEAN Chemical Industry Regulatory Cooperation Workshop was held in Kuala Lumpur, Malaysia on November 3-4, 2016. The Workshop hosted by the Chemical Industry Council of Malaysia (CICM) was jointly organized by the American Chemistry Council (ACC), Japan Chemical Industry Association (JCIA) and Singapore Chemical Industry Council (SCIC)

The ASEAN Regulatory Cooperation Project is an initiative of the International Council of Chemical Associations (ICCA)’s Global Regulatory Cooperation Task Force (GRC TF) under the auspices of the ICCA Chemical Policy and Health Leadership Group (CP&H LG). Enhanced regulatory cooperation has the potential to significantly reduce costs for governments and industry alike, thus helping economies to achieve their regulatory mandate of protecting human health and the environment without erecting unnecessary barriers to trade. The ASEAN Regulatory Cooperation Project is based upon the ICCA Global Principles for Regulatory Cooperation, which were developed by the GRC TF and approved by the ICCA Board of Directors in June 2015.

The two-day Workshop was participated by representatives from the government and industry from Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. Industry representatives shared best practices in risk assessment and management, examples of successful collaboration between government and industry, lessons learned from hazard-based systems such as the REACH and comparison of major chemical management systems while government representatives provided regulatory updates of their respective countries.

Manufacturing Resurgence Program and the Team Sweden Business Delegation to the Philippines – Nov. 8, 2016, Fairmont Hotel, Makati

In consonance with inauguration of the Embassy of Sweden-Manila, a Team Sweden Business Delegation led by Mr. Mikael Damberg, Minister of Enterprise and Innovation visited the country on Nov. 7-9, 2016 the purpose of which is the promote trade and knowledge exchange between Sweden and the Philippines. Successful Swedish global brands are ABB, Atlas Copco, Scania, SKF and Volvo.

Swedish Ambassador Harald welcomed the invited stakeholders in the seminar on Philippines Manufacturing Resurgence Program – Strategy and Development Plans for the Philippines Manufacturing Sector which was presented by Ms. Corazon Halili-Dichosa, Executive Director of Board of Investments (BOI). It was an overview of the Manufacturing Summit which was held on Nov. 28-29, 2016 at Makati Shangrila. The aim of the seminar was for the Swedish delegation and the Philippine business sector to exchange experiences and share information on how to enhance modernization and further growth of the manufacturing sector in the Philippines by working with latest technology and processes. We can learn a lot from the Swedes, a country of only 9 million people that relied on smart and productive solutions that enabled growth in value added manufacturing by increasing labor productivity and reducing operational costs which jibes with SPIK’s Goals and Strategies in the Roadmap.

Workshop on the Globally Harmonized System (GHS) of Classification and Labelling of Chemicals – Nov. 10- 11, 2016 Acacia Hotel, Alabang

Fourteen years after the publication of the 1st Version of the Purple Book in December 2002 by the UN Sub-Committee on the Globally Harmonized System of Classification and Labelling of Chemicals, the Philippines, now on its 6th Version, already exerted a lot of efforts in its implementation. The Joint Administrative Order No.01on the adoption of GHS was issued on May 25, 2009. It was signed by the Secretaries of eight government agencies, namely DTI- DENR- DA- DOFDOH- DILG- DOLE and DOTC.

The GHS is a common and coherent approach to defining and classifying hazards and communicating information on labels and safety data sheets. The underlying objectives of the GHS can be a framework in the establishment of national comprehensive chemical safety program.

The two-day workshop held on November 10-11, 2016 at the Acacia Hotel featured the discussion on the introduction of GHS, Physical, Health and Environmental Hazards and Hazard Communication by the SPIK Training Committee composed of Mr. Derrick Clarin, Ms. Dall Palisoc and Ms. Gretchen Fontejon- Enarle. The workshop on the classification of chemicals and preparation of labels was facilitated by Ms. Cynthia Reyes.

Ms. Melba Marasigan of the Occupational Health and Safety Center (OHSC) discussed the important features of D.O. 136-14 while Ms. Emmanuelita Mendoza of the Environmental Management Bureau (EMB) presented the DAO 2015-09 and their ongoing project on High Volume Chemicals (HVCs) as part of their implementation of GHS.

TESDA Board Deliberations for the Promulgation of the Training Regulations for QA/QC Services – Nov. 16, 2016, TESDA Complex

The Training Regulations for QA/QC Services NC IV underwent deliberations with the TESDA Board together with the Board of Chemistry of the Professional Regulatory Commission (PRC), representatives of the Integrated Chemists of the Philippines (ICP) and Chemrez. The project is in line with Goal 3 of SPIK in the Industry Roadmap. A short video presentation on the competencies was shown by the ICP to the TESDA Board.

Those who complete the competency training for QA/QC Services NC IV have an alternative requirement for that may be equivalent to 30 units of Chemistry subjects and be allowed to take the licensure examinations for Chemical Technicians as provided for in R.A. 10657, the Chemistry Act of 2015.

There was a question though with regards to the equivalency because the requirements to acquire a Chemical Technician license are the following: 1) Passing two subjects in the licensure examinations for Chemists, 2) Acquired 30 units of Chemistry subjects and allowed by the Board of Chemistry to take the licensure exams for Chemical Technician. On the other hand, the training regulations of TESDA for any position are based on the number of hours. The Board of Chemistry may have to issue a resolution to this effect to solve this impasse. The TR will undergo another round of review by the technical committee of TESDA to address the issues brought out by the TESDA Board.

Meeting with Representatives from Nomura Research Institute Singapore Pte. Ltd., a Japanese consulting firm Manila branch– Nov. 23, 2016, Manila Elks Club, Corinthian Plaza, Makati

The SPIK president and the Executive Director were invited to a meeting by Ms. Ria Arceo and Emi Shimada, Business Analyst and Consultant respectively of the Nomura Research Institute. Currently they are doing a study for the Japan Bank for International Cooperation (JBIC) which aims to understand the various industries like the chemical industry to provide information to potential investors in the Philippines. After the meeting, they had a better appreciation of the state of the chemical industry which beforehand they had misconceptions about it.

Consultative Meeting in Developing of the Third (3rd) Tranche of the Priority Chemical List (PCL) – Nov. 24, 2016, EMB AQMTC, DENR.

The Environmental Management Bureau invited stakeholders to consultative meeting on the 3rd Tranche of the Priority Chemical List (PCL). The EMB recommends the addition of 13 more chemicals to the present PCL aside from the Ozone Depleting Substances (ODS) such as CFCs and Greenhouse gases that contribute to climate change. Complaints from stakeholders were raised regarding the redundancy of acquiring both a PCL clearance and a CCO clearance for chemicals that have already been issued CCOs. It was suggested that chemicals that are already covered by CCOs should be indicated in the PCL so that a CCO clearance will only be required by the BOC instead of both at present for imports.

The meeting chaired by Ms. Emmanuelita Mendoza, Chief of the Chemicals Management Section of the EMB, was also attended by representatives from the DOLE-BWC, EMB- Hazardous Waste Section, Bureau of Customs, DENR-EMB Ozone Depleting Substances (ODS) Section, DENR- EMB Environmental Laboratory Section and chemical industry.

SPIK members were provided copies of the 3rd Tranche PCL presentation for their information and comments. The SPIK secretariat needs the members’ comments so that a consolidated position paper can be prepared for submission to EMB which will be on Dec. 10, 2016.

Manufacturing Summit 2016 – Nov. 28-29, 2016 Makati Shangri-la, Makati

The Summit which was sponsored by the USAID and JICA was attended by the manufacturing sector leaders of large enterprises and successful MSMEs. The participants were welcomed by Usec. Ceferino Redolfo,Industry and Development Group, DTI and Susan Brems, Mission Director for the Philippines, Pacific Islands and Mongolia, USAIDSTRIDE. DTI Secretary Ramon M. Lopez made the opening remarks and the Keynote address by Diosdado Banatao, Chairman PhilDev Foundation and Managing Director, Tailwood Venture Capital who made his fortune in Silicon Valley.

Session 1 was the Panel Discussion on Shaping the Future of Philippine Manufacturing where past SPIK president Mr. Roberto “Bobby” Batungbacal, Country Director, Dow Chemicals was one of the panelists. The Summit was highlighted by the Breakout Sessions to discuss major issues and challenges affecting industry growth, identify enabling conditions and recommend policy measures. Seven groups were organized to discuss the following major issues: Group 1: Competitive and Innovative Industries which the ED joined, Group 2: Labor Human Resource Development and Skills Training, Group 3: Physical Infrastructure, Group 4: Ease of Doing Business, Group 5: SME Development and Inclusive Business, Group 6: Incentives and Other Government Support Measures, Group 7: International Trade Policy and Free Trade Agreements.

Two sets of final Recommendations were presented to the DTI:

First Recommendation: Foster a dynamic innovation ecosystem of government, academic and industrial stakeholders, that is seamlessly working together to support innovative manufacturing activities in the country.

 Need collaborative agreements between industry associations, government and academe to encourage technical partnerships to support advanced manufacturing.

 Establish and entity that would manage government funded research and training facilities for the joint use industrial, academic and government engineers. Such entity shall be held accountable for the delivery of the products, expertise, and services that are in the norms of commercial manufacturing operations

 Promotion of existing technologies and programs of the DOST to industrial end users (particularly SMEs) who can take advantage of government support and scale up the commercial application of current research. There is a significant amount of services and funding support available from both DOST and DTI.

Second Recommendation: Fiscal incentives for private investments in typically risky R&D and activities that build up capabilities for innovative manufacturing.

 Tax incentives for investing in scientists and engineers to conduct innovative research and development.

 Tax incentives for purchase of equipment and instruments needed for research and advanced manufacturing.

 Tax incentives for the importation of specific input materials that are needed for high value, technologically advanced products being manufactured.

 Analogous to the CARS program where fiscal support encourages private sector investment in local automotive manufacturing.

 Incentivizing local demand for locally designed and manufactured high value products (such as electronics).

 Help trade promotion of high value Philippine manufactured products to foreign markets

It is noteworthy that most of the Recommendations are included in the Philippine Chemical Industry Roadmap spearheaded by SPIK. We are confident that when these Recommendations have been put in place, the Philippine Manufacturing Sector will attain the 4I’s: Innovation-driven, Inclusive, Infrastructure-enabled and Import/Export Competitive Industries.

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