BUSINESS IS STILL ON THE GO IN MINDANAO

We are surrounded with news reports about the current peace situation in some of the areas which are a part of the Autonomous Region of Muslim Mindanao (ARMM). Again, as a Mindanaoan, I refused to say that the entire Mindanao is in trouble. However, we cannot discount the fact that whenever ARMM is wounded, the entire Mindanao bleeds. We are angered and at the same time very, very disappointed at the way the peace issues and concerns are being handled. There are just too many players from government, military, politicians with varied interests who are all dipping their hands into the problems. And the irony is that, most of them are not from Mindanao or have never even been to any of the ARMM areas.

I am very passionate about being from Mindanao; wherever I go, whether here or out of the country, I always tell business people I meet how beautiful and how comfortable life is in Mindanao. That Davao City is a perfect blend between urban and country life.

Yesterday, I was interviewed for a magazine that will be published by Go Negosyo where forty (40) businesswomen will be featured. I was asked by the writer whether I am planning to expand my school businesses in Manila and without batting an eyelash, I said that my pre-school, Tumble Tots and JiB eAcademy will be my only schools in Manila; my plans for expansion will be in Mindanao because I believe in the potentials of the island and besides I am a Mindanaoan.

Mindanao Today

Despite the bad publicity that it is getting due to the aborted signing of the controversial memorandum of agreement on the ancestral domain between the government and the Moro Islamic Liberation Front, Mindanao ‘s business and agriculture sector is upbeat.

In 2007, Mindanao has a population of approximately 18 million ; and an inflation rate of 3%; much lower than the national inflation rate which is around 5%-6%. Our balance of trade is USD 1.5 million; exports at USD 2.4 million and imports at USD 1.2 million.

Topping our agricultural exports are bananas at USD 401million; coconut oil or copra , USD 366M; pineapples, fresh and preserved, USD160M; dessicated coconut, USD 46M and of course tuna at USD54.55M. The top ten export destinations are Japan because of our bananas and tuna; USA, Netherlands, Korea, Taiwan, China, Malaysia. Singapore, United Arab Emirates and Iran

FEEDING MINDANAO (RICE AND CORN)

The data from the Bureau of Agricultural Statistics showed that Mindanao posted increases in corn and rice production with corn harvest registering about one-fourth higher than the volume during the same period last year. A notable improvement, indeed.

The data showed that rice production during the period increased about 4.78 percent to 999, 212 metric tons during the period from 953,metric 623 tons during the same period last year.

The highest growth in rice production was registered in the Caraga Region with 12.85 percent, although Central Mindanao was still the biggest producer during the period with 38 percent of the total production.

Corn production, on the other hand, was at a high of 883,409 metric tons during the period, way above the 722,269 metric tons produced during the first quarter last year. Again, Caraga registered the highest growth at 56.55 percent, but Northern Mindanao produced 36 percent of the total production, followed by Central Mindanao with 32 percent.

Production of rice and corn is expected to be sustained as the national government is rehabilitating irrigation systems in the island that will cover 2,000 hectares of rice fields.

The data also revealed that fisheries production for Mindanao was at a high of P18.83 billion with about 618,976.03 metric tons. Highest contributor to the production during the period was aquaculture at 342,356.41 metric tons. In value, fish production during the quarter hit P18.63 billion, although the biggest producers were the commercial fishing companies.

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

CALL CENTER FOR MUSLIMS

It’s the call center era nowadays. We see call centers sprout like mushrooms in our country, and more Filipinos are getting trained or employed as call center agents.

At a time when U.S. companies are increasingly going abroad to source "sophisticated, mission-critical functions" because of a shortage of highly educated professionals in developed countries, the Philippines has become one of the preferred destination for these American companies, according to a study by Duke University, in North Carolina, and the consulting firm Booz Allen Hamilton.

And for good reasons because the Philippines has one of the highest literacy rates in the East Asian and Pacific area, with 92% of the population 10 years of age and older are literate. For these companies seeking to outsource, lower costs, high literacy rate, culture, and employee loyalty are the country's appealing factors.

Filipinos are more attuned to Western culture than most Asians; majority of the population can understand and speak English, thanks to a long history of contact with the United States, including several decades of American colonial rule. Call center employees find it easy to relate to Westerners and adapt to a variety of accents. Most call center employees receive intensive training to acquire the accent of the country that they will be calling.

In Mindanao, the call center industry has only just begun. Cagayan de Oro has three of the 10 call centers in Mindanao with over 800 call center representatives, while Davao has over 700 employees from three call centers. This growth is expected to double by next year.

The Autonomous Region in Muslim Mindanao (ARMM) is also catching up in the call center boon. There’s a huge labor potential in the ARMM for call center and business outsourcing. This labor force could cater to the Middle East companies.

In response to this untapped potential of the Muslims to work as call center agents, a Davao-base Call Center and Language School , trained native Muslims in Barangay Waan, Cabantian, Davao City in partnership with the Technical Education and Skills Development Authority (TESDA) and the Barangay officials. Waan is predominantly populated by Muslims and is an hour drive from the city proper. The free training aimed to create awareness and expose our fellow Muslim brothers and sisters to the best-in-class call center management technology that leads to better coaching and performance.

It started last November 6, 2006 with four (4) weeks focusing on English Language Proficiency lessons and an additional month long training in call center operations where they had hands-on-experience in making and answering calls.

All 51 participants are college graduates; some have a career in teaching and banking already, while others are unemployed. Now that they finished their basic call center training, a new door has opened for them.

The Muslim graduates are now very happy with their achievements ; they will have more access to job opportunities in the business process outsource sector with their newly found skills- English grammar, pronunciation, articulation and diction.

One student expressed that she can now use her speaking skills in dealing with their foreign customers at the bank, although she is open to a career in the call center industry. Another student, currently teaching Arabic studies in Waan, is excited to apply his learnings to his current profession.

Among the major challenges they encountered when the program was just starting was speaking with a neutral accent. They now boast of an improved accent, and higher self confidence in public speaking than when they first started.

This recently concluded training has now disproved the prevailing notion that ARMM workers have low level of skills and are not trainable. Provided with proper access to ICT and the right training, I believe that workers in the region are source of huge economic potentials that remain untapped until now. We want to prove that the ARMM is also a source of highly trainable and world competitive human resources. All we need to do is give the people access to technology and harness their potentials.

Establishing contact centers in Muslim Mindanao will help generate sustainable jobs, reduce unemployment rate, and eventually bring down poverty level in the region where armed conflict has slowed progress in the past.

The ARMM has consistently had the highest rate of poverty incidence in the country, reaching 71.3 in 2000. Although the poverty incidence decreased to 53.1 in 2003 (all regions registered lower rates of poverty incidence during this year), the ARMM remains the poorest region in the country.

The pilot training in Waan show that Muslims too are interested in the call center training and perhaps in the future – a call center may decide to locate in the ARMM.

(Joji Ilagan Bian is a strong advocate for Mindanao ; Chair, Mindanaworld Foundation Inc; Mindanao TVET; Mindanao Rep , Export Development Council ; Chair , Joji Ilagan Foundation ; Former Chair of the Mindanao Business Council. Email comments to jojibian2@yahoo.com)

BUSINESS AS USUAL IN BASILAN

For years, Basilan was considered a dangerous province in Mindanao because many have the perception that danger lurks in its every corner.

But then, organizers of the 4^th Zamboanga Peninsula Business Conference decided to hold these two day event, which took place last April 25-27, 2008 in the province with the main objective of highlighting both its investment and tourism potentials.

The event, considered the largest gathering of members of the business sector of Western Mindanao showed what the province has to offer for investment and tourism. There were over 102 participants coming from the chambers of commerce and industry of the cities of Dipolog, Zamboanga, Ozamiz, Pagadian and Basilan.

On its first day, a special session was conducted at the Isabela City Council Session Hall with the Philippine Chamber of Commerce and Industry - Philippine Chamber Development Institute as the main discussant on private-public sector partnership.

The opening ceremonies at the Juan S. Alano Compound's Julio Amphitheater was hosted by the city of Isabela where guests were treated to a banquet called “Pesong Kaam”, a Yakan term for welcome.

Main Business of the Day

Tackled during the summit of business men were sessions that discussed corporate social responsibility among companies, linkages between business and government; global trading and financial development for Mindanao. There were also representatives from Australian Aid’s Enterprise Challenge Fund and USAID’s Growth with Equity in Mindanao who spoke about development oriented projects that the business sector can avail of.

The joint meeting of the of the Isabela City Small & Medium Enterprise Development Council (ICSMEDC) and the One Town, One Product Technical Working Group also took place with the desire of strengthening the partnership among government agencies and the city's private sector.

Yakan Crafts and Wares

The partnership with the Basilan Chamber of Commerce & Industry, Inc. and the Isabela City Tourism Office and the Department of Trade and Industry – Isabela City and the Alano Group of Companies led to the inauguration of the Isabela City Pasalubong Center . The center was a show room of Isabela City's products, specifically the Yakan crafts and weaves, bamboo appliances and furniture and hand-woven mats. These are used in home furnishings which are at times featured in architectural magazines. If you want to get them for a bargain price;its time to go to Isabela.

The Isabela City Exposition and the Annual Isabela City Agro-Industrial Fair was opened with City Mayor Cherrylyn Santos Akbar leading the event held at the Plaza Rizal. Supporting the trade exposition were the delegations from Zamboanga City, Zamboanga Sibugay and Zamboanga delNorte, as well as local producers' associations and local craft and livelihood organizations showcasing their products.

The Business Students of Isabela

To highlight the important role of the young and future entrepreneurs , the 1st Zamboanga Peninsula-Autonomous Region of Muslim Mindanao Business Camp for Business students of the different public and private tertiary educational institutions was held at the Juan S. Alano Memorial School, Inc.

The students were from the cities of Isabela and Lamitan, Zamboanga and Dipolog. The event also held a series of plenary sessions on entrepreneurship handled by the Nagdilaab Foundation Inc. – Asosasyon ng mga Nagkakaisang Kabataan tungo sa Pag-unlad at Kapayapaan and the Metro Basilan Junior Jaycees (MBJJCs).

Now who says life and business is dull in Basilan?

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August will be very busy month for the academe and the tourism industry of Mindanao. Davao City will be the host of the largest gathering of technical vocational schools, labor and business leaders all over the island. The 7^th Mindanao Human Resource and Skills Development Forum will be held on August 6-8, 2008 at the Mandaya Hotel. This years theme is “Beyong Borders.Meeting the Challenges of Change”. The main organizers is the Mindanao TVET Association and the Technical Education and Skills Development Authority (TESDA)

The biggest tourism and travel exposition; the 3^rd Mindanao Travel and Trade Expo will be on August 8-10,2008 at the Shoemart Entertainment Center. This year’s theme is “Barkadahan sa Octo-break” and this will be participated by the Local Government Units of Mindanao, the Department of Tourism Regional Offices and Travel and Tour Operators

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(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

SAILING THE BIMP EAGA SEAS

The sea linkage between two trading points, or among several others, is very important considering that this is needed in hastening the movement of goods and products at a lower cost. Businessmen and traders will always want lower transportation cost.

I notice that while much has been taking place in the air linkages within the Brunei-Indonesia-Malaysia-Philippines (BIMP) East Asean Growth Area (EAGA) in an effort to facilitate tourism promotion, the sea linkage proposals have not improved that much despite the signing of two memoranda of agreement last year among the four countries.

INITIATIVES

Based on the report of the Mindanao Economic Development Council, as a result of the meeting in April in Bandar Seri Begawan, the capital of Brunei Darussalam, there was no significant movement in the sea linkages among the four countries.

However, the report mentioned some "flagship programs and projects" that the top officials of the four countries were considering,

Among others, the report cited the discussion on a proposal for a tariff reduction of the roll-on roll-off ship operation between Zamboanga and Sandakan, Malaysia. In that meeting, Philippine representatives wanted the Philippines and Malaysian governments to enter into a bilateral arrangements that will reduce port tariffs for their ports. For Malaysia, the agreement will be implemented in its Sandakan port.

The Philippines also requested that the ship be accommodated at a roll-on-roll off terminal.

SOLE LINKAGE and OTHER INITIATIVES

Today there is only the Zamboanga-Sandakan shipping route that is being served by two Zamboanga City-based companies, the Aleson Shipping Lines and the Sampaguita Shipping Lines.

The servicing of the General Santos City-Bitung, Indonesia route has been suspended.

The implementation of a memorandum of understanding on the "establishment and promoting efficient integrated sea linkages" was also one of the key points being explored. The officials for the four countries raised the issue of updating one another on the development of port facilities including the privatization of some of them. This is necessary because this will allow each of them to come up with their respective plans on sea linkages, taking into consideration the viability of using the ports of their trading partners.

The representative of the Asian Development Bank, the sub-regional advisor, was tasked to update the four countries on the pre-investment study that would identify the "shortfall in ports performance and capacity among the designated BIMP EAGA gateway ports and develop project priorities for bridging the performance and capacity gaps as mandated by the BIMP EAGA MoU on Sea Linkages."

There is so much has to be done to improve sea linkages and that it will take much time and political will for all the stakeholders , both government and private sector to make these sea linkages sustainable. Volume of traffic, both passengers and goods have to be present. More business activities have to be created.

I share the optimism of those who are involved in these endeavor, taking note of their efforts in promoting trade among the four countries.

As a leader of the Mindanao business sector, it is also my desire to see that every plan, big or small, finally takes shape to realize the dream of making the sub-region one big borderless economy.

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments joji@jojiilagancareercenter.com

FLYING THE EAGA SKIES

Today, tourism is one of the key sectors that the Brunei-Indonesia-Malaysia-Philippines-East Asean Growth Area (EAGA) is given much emphasis. Not only because it increases people and business mobility but it is one of the fastest means of ensuring that intra regional cooperation and linkages will actually happen on the ground.

The Mindanao Economic Development Council (MEDCO) reported during the 14^th anniversary of the sub-regional group that several air linkages were being opened or on the discussion tables.

Among these linkages are the flights between Zamboanga and Sandakan which is being served by the Asian Spirit; and Malaysia’s Air Asia which flies from Kuching, Malaysia to Bandar Seri Begawan, Brunei. Several other airlines are also looking into possibly servicing other viable routes.

The attempt to establish air and sea linkages fits well into the desire of the four countries to intensify travel and tourism between and among them and encourage more business exchanges. But more importantly, the cost of travel must be reasonable and affordable for both business and tourism so that activities within the region will flourish.

There is a need for all the airlines to study their fare structure very carefully and to ensure competitiveness or else people from the regions will not be motivated to travel either for business or tourism. Budget fares can easily result to greater number of cultural and student exchanges; businessmen visiting theareas to explore what they can do together; more tourists shopping, eating and spending their money.

New Air Route

Just last week, Indonesia’s Wings Air, a subsidiary of Lion Air, has started its chartered flight between Davao City and Manado, a route that has been abandoned so many times because of very thin traffic.

This time the Indonesian government will exert efforts to help sustain the service by bringing in greater volume of goods from Manado, Indonesia. Indonesian Consul Gen. Lalu Malik Partawana who is based in Davao City informed us that his office will exert all efforts to support the new air route.

I am now in Bali, Indonesia enjoying the week with my family. I could had flown directly from Davao; if there was a much easier air routes and cheaper fares. But since there was none; we decided to fly from Singapore.

This is what I had discussed with the Consul when I visited him in his office in Davao City; that we should make the air linkages work this time; and this can be done by creating activities that would bring about movement of people from the Davao to Manado and other Indonesian cities and provinces. And rates of travel is a critical issue – it can be a deterrent if priced wrongly and a strong motivator if the cost is just right.

Fifth Freedom Rights

Load cargo has always been the problem in traveling in the sub-regional destinations. This is the factor that prompted the four countries to declare the implementation of the fifth freedom rights so that airline companies can service destinations within the sub-region outside of their assigned destination.

The four countries even approved the “multiple designation of airlines with no restriction on frequency and capacity” and the “adoption of sub-regional multilateral agreement on common airport tariffs,” hoping that this will trigger the travel intensity among the peoples of the sub-region and those that are visiting its beautiful tourist spots.

What Needs to be Done

Having been actively involved in the promotion of this sub-regional group in the past, I believe that air linkages are very much necessary if the four countries, or their designated areas in the sub-region. They can pushed budget airlines to look into servicing the routes between and among them. This will not only heighten the trade relations among the participants, but would even pave the way for them as a group to look for a bigger trading partner like China or Japan.

This is also very important to the tourism sector, especially now that the industry is looking into promoting itself as one big destination to tourists particularly Europeans who love to travel for days to several destinations. The linkages will serve as a come-on for these travelers to consider the BIMP countries as a single destination within the sub-region.

There is a need to massively promote successful partnerships or business ventures; initiatives and exchanges, cultural and educational linkages that is worth talking about. All of these must be brought up in the open so that the EAGA excitement will again be in everyone’s heart!

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

DAVAO LIGHT AND DABAWENYOS- FORMIDABLE PARTNERS

While politicians and various sectors in Metro Manila are trading barbs over the high power rates, Davao City has been blessed with the best power utility. Davao Light and Power Company is the third largest privately-owned electric utility in the Philippines. It holds the franchise for distributing electric power to Davao City, the largest city in the world in terms of land area, as well as Panabo City and the municipalities of Carmen, Dujali, and Sto. Tomas in Davao del Norte.

In 2007, the company sold 1.331 billion kilowatt-hours to 247,341 customers with a peak demand of 245 megawatts (MW). And while these experts and politicians were trying to go deeper into the so-called systems losses, our power utility here is surprisingly registering systems loss below what the government allows. Based on the data obtained from the company, its systems loss was at 8.8 percent, way below the 9.5% percent that government allows.

Systems loss is defined as energy loss due to technical problems and to pilferage. Under the law, a power utility whose systems loss goes beyond 9.5% is restricted to pass it on to consumers.

Davao Light maintains a 54.7 MW standby diesel power plant, operated as needed to stabilize voltage as well as augment the power supply of its primary generating sources. It makes use of a fully functional automated mapping and facilities management (AM/FM) system to track the location of electric distribution assets in its 3,561 square kilometer franchise. Also in place is a Supervisory Control and Data Acquisition (SCADA) system, a facility that allows remote real-time data gathering and control of equipment in all power substations.

High-end computers, sophisticated software, and other devices are being used to speed up meter reading, streamline billing, provide efficient and prompt response to customer inquiries, generate management information, and analyze electrical grid information.

In anticipation for the increase in demand of power within its service areas, the company has also signed with sister company Hedcor Inc. an agreement that will allow it to buy power produced from the power plants of the latter in Sibulan, Sta. Cruz, Davao del Sur

and those that it will build in Suawan, Tamugan and Panigan in the hinterland of the city.

And until late last month, the main man behind the company was a young and energetic executive known for his humility and candidness. Luis Alfonso Y. Aboitiz, known to friends as “AL” who at the time of his death was at the helm of the company’s operations .

In the past when the power firm would petitioned for increases; Al would do the explaining himself instead of turning over the responsibility to his subordinates. Armed with his power point presentation, Al would patiently discuss the issues on hand to the business sector and leaders of progressive organizations. He would answer every question even those irrelevant ones.

Under his leadership, the company was also known as among the leaders in corporate social responsibility work, having done so many community-related activities from education, health and enterprise development for the people within its service area.

But one achievement that Al was always proud of is the city’s emergency system which is the Central 911 which was patterned after the US and Canada.

The project was conceptualized in collaboration with Davao City Mayor Rodrigo Duterte using the Electronic Computer Aided Dispatch system of the power utility in responding to distress calls. Today, 911 is Davao’s partner in saving lives.

His untimely death not only meant a lot to his family and his company but also to the city which has benefited from his leadership. This maybe late but this column extends its condolences to the family that Al left behind. He will be remembered well by all Dabawenyos.

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

SULU’S RESPONSE TO GLOBAL FOOD CRISIS

From well-oiled automatic rifles and smoke grenades, the Tausogs in Luuk, Sulu are now arming themselves for a different kind of war – a battle for full stomach and patience – to win over the scourge of poverty where it breeds terrorism.

Security officials in the country has been alarmed by the reality of food shortage that triggered riots erupting worldwide and is now gauging the security implications of the crucial rice and food situation in the country.

The Tausogs in this island of more than half a million Muslims are armed not with weapons, but farm implements battling to save themselves from the looming food crisis the country is facing.

Luuk, which literally means, ”low elevation”, was established in 1918 when Maas Kamlon, a very famous Tausog warrior fought against the government. The province is among the poorest provinces in the country and registered with the lowest human development index. It lagged behind in terms of economic development and the people here lived in a lonely island of poverty but ironically in the midst of a vast ocean of natural resources.

Agricultural Revolution

The Tausugs are now in the midst of what they call an agricultural revolution and are planting hundred of hectares of farms with cassava, corn and vegetable.

People here are now conscious enough and know very well the consequences, that if eventually supplies of imported of rice will decrease and will come in trickles, they can always eat cassava as an alternative.

Because they consider cassava as their staple instead of rice, the farmers are able to slowly cushion the impact of the soaring rice prices.

The local government led by Mayor Abdurahman Arbison, together with his Father and the entire government, rallied the people to engage in livelihood projects by tilling their lands and planting them with cassava and other crops, Arbison said that in the advent of a global rice shortage, people in Sulu need not to worry anymore, as they can always go back to their staple which is cassava and since they have an abundance of it ; they can even export it if needed.

Aside from planting essentials, fisher folks at its coastal area here are also concentrating on lobsters (tiger) and groupers (lapu-lapu) culture at sea.

The only fishpond in Sulu is found in this coastal town; and employs people from Iloilo in the Visayas (Ilongos). They manned the fishpond and at the same time teach bangus culture to the locals.

Ilongo’s are known in the Visayas to be industrious and are experts in cultivating fresh water seafoods to include tilapia and sugpo(prawns), however, the Tausogs are not used to eat fresh water fish but is now learning and beginning to like it.

Developments in Sulu

Access roads to near by municipalities connecting to the center town are now under construction and are to be operational before the end of this year. Roads to this areas before it was concreted, were not accessible due to big holes, mud -like soil and boulders of rocks.

Leisure Park, a few hundred meters away from the Tanduh Batu Port which is also adjacent to more than a kilometer from the Boulevard by the Sea is nearing completion.

When operational the park’s centerpiece is a Water Fountain complete with colored light bulbs that will illuminate the rolling and sprouting water above 12 feet from the ground.

The lighted Boulevard by the Sea has a walkway in the side of the riff-raff shoulders to accommodate early morning joggers and sunset lovers who are expected to troop the area.

Opposite the boulevard will rise a Sports Complex complete with Basketball and Tennis Courts with many indoor games.

More commercial stalls around the area will be built in uniform models to accommodate goods and products to be sold at bottom low prices that will showcase native and indigenous products.

Sulu had hosted the visit of two heads of states, two (2) Philippine Presidents, Pres. Gloria Arroyo and Former Pres. Joseph Estrada; and the son of the Great Libyan-Arab Jamahiriya Col. Muammar Khadafi.

Personally, Sulu is one of the areas in Mindanao that continues to attract me. I know so many business people that would really want to go and explore Sulu and see for themselves the economic progress that is now happening. Do it. Now is the time.

(My thanks to fellow MIndanaoan Mr. Ed General of MindaNews for the information in this column).

(Joji Ilagan Bian is a strong and respected advocate for the development of the island. She is Chair of Joji Ilagan Foundation , Phil. Call Centers Alliance, Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

OPPORTUNITIES IN BIO FUEL PRODUCTION

With the prices of petroleum products breaching the $100 a barrel barrier, many of those in the fuel industry have started considering other alternatives. Our government had passed Republic Act 9367, the Biofuels Act, a law that mandates both the government and the private sector to lower dependence on imported fossil fuels and find alternative sources.

The law also states that diesel fuels should be blended with one percent bio-diesel, while gasoline fuels should be diluted with about five percent of bio ethanol. The blending will increase to two percent in diesel fuel by February 2009 and 10 percent of bio-ethanol by 2011.

Another intention of the law is to increase economic activity in the country considering that bio-diesel and bio-ethanol are both products of plants or agriculture activities.

Under this program, the Philippines is looking into becoming the global leader in the bio-fuels industry by 2011 through accelerating production of these products; as this will also result in self-sufficiency and at the same time protect the environment.

Based on the data from the Agribusiness Land Investment Center, blending one percent of bioethanol to gasoline fuels will result in $168 million in annual foreign exchange savings; while doubling the amount blended will mean $482 million in foreign exchange savings.

The same data also shows that blending diesel fuel with one percent biodiesel, usually the cocomethyl ester from coconut will result in $50 million annual savings; while doubling the amount blended will result in $133 million savings.

Under the implementing rules and regulation guidelines of the law, the Department of Agriculture, the lead agency in implementing the program; was tasked to identify and develop viable and quality feedstock; develop a national program for the production of crops for use as feedstock supply;ensure increased productivity and sustainable supply of biofuel feedstocks; publish information on available and suitable areas for cultivation and production of biofuels crops; and undertake the identification and publication of potential areas suitable for expansion.

Biofuel Production in Mindanao

What is notable is that the areas identified for the production of both products are Mindanao provinces.

The provinces of Agusan del Norte, Agusan del Sur, Basilan, Bukidnon, Cagayan de Oro, Camiguin, Compostela Valley, Davao City, Davao del Norte, Davao del Sur, Davao Oriental, Dinagat Islands, Isabela City, Lanao del Norte, Lanao del Sur, Maguindanao Misamis Occidental, Misamis Oriental, North Cotabato, Sarangani, Shariff Kabunsuan, South Cotabato, Sultan Kudarat, Sulu, Surigao del Norte, Surigao del sur, Tawi-tawi, Zamboanga City, Zamboanga del Norte, Zamboanga del Sur and Zamboanga Sibugay are the production centers for bio diesel. Majority of the areas that are part of the Autonomous Region of Muslim Mindanao (ARMM) are in this short list.

If one reviews the list, an obvious conclusion can be drawn that Mindanao is capable of producing the entire biodiesel requirements of the country. About 893,000 hectares in the whole region can be planted with jatropha, coconut and oil palm, the main sources of biodiesel.

Sources of Bio-ethanol

The same provinces can also be planted with cassava, sugarcane and sweet sorghum; the main raw materials for bioethanol. The Agriculture Department has identified about 701,000 hectares of land in Mindanao for these plants.

In Davao Oriental, for example, Gov. Corazon Malanyaon has pushed for both the production of cassava and oil palm and the rehabilitation of coconut considering that the province is the top producer of copra.

At present, six companies have already been accredited for biodiesel production with their total production of 252 million liters annually. Four other companies are also seeking accreditation.

On the bioethanol program, the country’s potential production could reach 794 million liters a year and that several companies have committed to buy locally-produced bioethanol.

To be able to produce the target, the existing sugarmills could be converted within 18 months; while the conversion of greenfield facilities will take between two years and 30 months.

Under the program, the target is to replace 10% of imported gasoline with bioethanol and this would result in P10.4 billion in saving within the next three years. The Philippine Fuel Ethanol Alliance estimates that bioethanol requirements for the next 10 years of 3.7 billion liters will be equivalent to 51.71 million metric tons of sugarcane.

At present, Mindanao accounts for 19.1% of the total sugarcane production in the country at 72,319 hectares of the total 377,182 hectares. This further validates the fact that Mindanao, with its vast agricultural land, can produce more than the country requirements.

Will we in Mindanao be able to capture these opportunities? Will we be able to translate these into jobs in the countryside? We all know that the answers are within ourselves.

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

Mindanao Must Lead In Rice Production

Mindanao is considered the food basket of the country as it contributes about 40% of its total agricultural production. This is because aside from having the most fertile soil in the country, it is also shielded from storms that devastate the farms in other parts of the country.

On rice production, based on the data from the International Rice Research Institute, Mindanao contributes 23% of the country’s production, the biggest among the rice producing areas. Not bad considering that the island is also a top producer of other agricultural products like copra, corn and banana.

In the report of the Bureau of Agricultural Statistics, the production of the island last year reached to 3.74 million metric tons with Region 12 being the largest producer at 1.186 million metric tons, or nearly one-third of the total production of the island.

The region is composed of Sarangani, the Cotabato provinces and Sultan Kudarat with North Cotabato producing 449,202 metric tons, higher even the production of Region 11 which could only produce 427,184 metric tons.

This is because most areas in the Davao Region are either planted with banana and coconut, its top two exports. Some of the rice farms were even converted into banana plantations.

Another Mindanao region considered as big rice producer is the Autonomous Region in Muslim Mindanao. Based on the report, the region produced 615,780 metric tons last year.

Third biggest last year in terms of rice production was Zamboanga Peninsula with 553,759 metric tons and Northern Mindanao came in fourth with 501,892 metric tons. The Caraga Administrative Region even surpassed the Davao Region after it registered 455,838 metric tons in rice production.

Yet the island, just like the rest of the country was caught flatfooted by the recent development in the rice industry as prices of commercial varieties have continued to rise since the start of the year.

We don’t want to lay the blame on anyone, but we believe both government and the private sector could have anticipated this problem of insufficient supply that we are all confronted with if only ample attention was given to the irrigation infrastructure and post harvest facilities in many areas of Mindanao.

Several programs have been implemented in Mindanao, including the Mindanao Rural Development Program and several others directed at the improvement of productivity of the farmers in the island, but there is more that has to be done.

There is the $90 million World Bank-funded program aimed at improving necessary infrastructure facilities not just for rice farmers but for other sectors as this will also result in improvement of their productivity which will eventually translate into better life for the farmers.

Some top experts of both the government and private institutions have also pushed for adoption of hybrid rice varieties to increase productivity. It is time that the government, as well as everyone, move in the same direction in improving our food sustainability.

We need a concerted effort to address food supply, particularly of the staple, so that we will be independent from other countries that learned the science of increasing their productivity from us. Now is the time.

We also hope that the government implement other basic programs that will address food sustainability and empower farmers to become not just main tillers but also profiteers of their endeavors. We believe this can be done by coming up with schemes that will increase their production earning through increasing the buying prices. Although the National Food Authority already hiked the palay purchasing prices by P5, we still believe there are other similar mechanisms which will lure back farmers into planting rice rather than converting their lands into other use.

The greater challenge is to review the agriculture budget given to Mindanao and to increase it to a level so that we can truly be the food basket of the country.

We need to move faster. We don’t to be caught flatfooted again with a graver consequence.

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The Philippine Call Center Alliance (PhilCall) will be holding its 2^nd Forum : “Power of One: Maximizing your Call Center Agent's Performance” on April 25, 2008 at the Commision of ICT,Diliman , Quezon City. This is designed for small and medium sized call center owners and supervisors to gain a better understanding of motivating agents and translating their performance to better profitability. For reservations, please contact Ms. Josine De Leon at the Office of the PhilCall Secretariat at 942-3282 or mobile (0918) 930-5027 or e-mail philcall_secretariat@yahoo.com.ph.

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The Basilan Chamber of Commerce will be holding their annual regional business conference in Basilan on April 26, 2008. These will be attended by the business community of the Zamboanga Peninsula as well as with other stake holders.

(Joji Ilagan Bian is a strong and respected advocate for the development of the island. She is Chair of Joji Ilagan Foundation , Phil. Call Centers Alliance, Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

MINDANAO TVET HELPS THE POOR (2nd of 2 Parts)

Even if Mindanao posted a relatively higher employment rate than the national average, it is ironic that there are also several provinces which have a higher number of poor families . More than half of our population at 57% are living below the poverty threshold. And in the past seven years, only Region X or Northern Mindanao was able to reduce its poor families by 4.9 percent

TVET Initiatives

Technical Vocational Education and Training (TVET) ensures that an individual has the technical skills and knowledge for gainful employment at the shortest time possible. All you need is to study from six months or two years, depending on your choice of skills training. Therefore, one does not have to waste money or time pursuing a four year college degree to be able to find a job; more so if one does not have ample financial resources. By taking a TVET course, one has the option to work and continue to go up the education ladder at his own pace. The Ladderized Education was introduced by both TESDA (Technical Education and Skills Development Authority) and CHED ( Commission of Higher Education) early last year ; where one may opt to get a college degree by finishing one skills certificate at a time ; step by step ; until the highest rung of the ladder is reached. This is applicable for baccalaureate courses in Nursing, Hotel and Restaurant Management and Engineering.

Through TVET or the ladderize program, the children of poor family is able to help augment the meager family income through their new - learned skills and find work fast in many service companies, agriculture and manufacturing plants .

Priority Skills in Mindanao

There was a survey made among the different industries in Mindanao as to the kind of skills that were needed to sustain or bring about higher economic activities in different regions. This was done so TVET schools and institutions in each region will know what kind of training programs to offer to match the demands of industries.

The top 3 critical skills of Region 9 are in agriculture and fisheries, processed food and in construction; Region 10 is also in agriculture, construction and in the information/communication technology (ICT) arena . Topping the critical skills in Region 11 is ICT, agriculture and processed food and beverages; while Region 12 is in agriculture, land transport and tourism. CARAGA‘s needed skills is in furniture and furnishing, agriculture and construction while ARMM is in agriculture, construction and automotive.

In the general ranking, the top 5 critical skills in the entire island is still agriculture and fishery and that further strengthens Mindanao’s role as the food basket of the country. Followed by construction, processed food and beverages, ICT and Tourism.

This actually reflects the investment priorities of many regions in Mindanao. The cities of Davao, Cagayan de Oro, General Santos, Zamboanga are all positioning themselves as the prime tourism destinations as well as the ICT hub for call centers, transcription and the like. CARAGA remains as the region where you can find abundant wood for furniture. Skills pertaining to construction is a necessity since we know that progress and more business will bring about new buildings, roads and other infrastructure to support growth.

Partners in TVET

The Philippine Australian Human Resource Development Facility (PAHRDF) of Australian- Aid is an active partner of the Mindanao TVET Association MinTVET). This association is the biggest network of technical vocational schools association all over the island and is in the forefront of advocacy and bringing about positive changes and developments in TVET. Through the PAHRDF, the faculty members or teachers of TVET schools are given the opportunity to avail of both the short and long term scholarship to Australia. For this year, there were approximately ten (10) teachers who are now in Sydney taking up courses in Curriculum and Instructional Materials, School Management, Software Development and Metal and Fabrication. This will be an annual program between PAHRDF and MinTVET.

The Asian Development Bank is also one of the more active education donors in Mindanao working in collaboration with TESDA, CHED and the Mindanao Economic Development Council.

With this in mind, TVET is now being looked at with higher respect and TVET graduates are now able to stand proudly knowing that their skills certificate will be their key to success and prosperity.

For one thing, we must focus on the skills defined under the National Technical Education and Skills Development Plan 2005-2009 as these are the skills required by the companies. Let me present, therefore, the priority sector under the plan and the corresponding labor force requirements.

No	Sector	Total
1	Agriculture and Fishery	287,393
2	Construction	30,541
3	Processed Food and Beverages	29,928
4	Information Communications Technology	29,111
5	Tourism	14,459
6	Land Transport	8,812
7	Automotive	6,796
8	Furniture and Furnishings	4,057
9	Metals and Engineering	1,860
10	Mining	1,672

With the help of the government agencies through its scholarship programs like the Iskolar ng Mahirap sa Pamilya and other programs, we hope that Mindanao TVET is on the right track in helping the government improve the condition of the people of Mindanao.

(Joji Ilagan Bian is a strong and respected advocate for the development of the island. She is Chair of Joji Ilagan Foundation , Phil. Call Centers Alliance, Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)