Philippine Paint Industry

Update 2019

Diosdado N. Cheng, Secretary Gen., 2018-19

• Archipelago - 7107 Is.

• 185 Dialects

• Tropical Climate

• POP 108M

• Official Language - Filipino

• English widely spoken

• Literacy 90%

• Religion 80% Catholic

• Forex 1USD = PHP52.20

• Inflation 1.7%

• GDP Annual = 5.5%

Paints, 290

Inks, 93

• 4 to 5% annual growth

• Very few multinational factories

- Nippon Paint, Jotun, DIC

• Presence of imported paint

- Sinclair, PPG, Nippon, Kansai, etc.

• Abundance of local licensees

- Chugoku, Transocean Marine, IP

• Dependence on imported raw materials

• Back-integrated technologies

• 2nd & 3rd Generation Chinese

• Small but growing export, overseas

production

• Trend towards water-based systems and

DIY

• Various Regulatory Issues

Surface Coatings Local Production 2017

• Founded 1961

• Non-stock, non-profit

• 77 Members

• 26 Manufacturers, 51 Suppliers

• President Ely Kenneth Ong Sue

• Golf Tournament

• Seminar on Intellectual Property and Patents

• Seminar on GHS Updates

• Paint Technology Courses 1 and 2

• Mooncake Festival & Other Socials

• Government Representations (various agencies)

• 17 Paint Standards Established

• Outreach Activities

• Participation in Expos (Roads & Traffic / Construction)

• Election Night

• Christmas Party

“Together for growth, sustainability, and global competitiveness.”

Technical Updates in the

Philippine Paint Industry

Vergel V. Dyoco, Technical Director, 2018-19

BUREAU OF PRODUCT STANDARDS

•DTI-BPS recommended revision of PNS-140-2015 for

packaging to include GHS labeling; encouraged self-

regulation & individual phase-implementation of GHS to

show responsible industry practitioners that need not

be stringently regulated.

•Anti-Fouling Marine Paint standard limits scope to

thermoplastic and hydrocarbon resin to consider that

silicone acrylate types may not be significant in

Philippine market.

ECOWASTE COALITION

• In October 2018, we partnered with EWC in celebration of

International Lead Abatement Week with seminars on

Occupational Safety and Lead Safe Practices.

• Dr. Greg Morose from University of Massachusetts talked

about the health hazards and environmental issues of

methylene chloride and NMD paint removers.

• Last October 24, we celebrated alongside our third member

to be awarded the SCS Global certification, Sycwin

Coatings. The first Industrial and Automotive paint

manufacturing company to be certified Lead Safe.

PAINT TECHNOLOGY COURSE

• In 2018, PTC1 found its new home in UP Diliman

Department of Chemical Engineering.

• This year, we delivered on the promise of doing two

courses finishing PTC2 and PTC1, in succession.

• The programs have been generously credited with

CPD points.

• The most recent class had a record participation of 4

government agencies, namely: DDB, DENR,

DPWH, and DOST.

SCM-GHS WORKSHOP

• 2018 GHS Implementation Timeline involving Toxic

Chemicals under IATA & IMDG got delayed.

• 2019 implementation of GHS for Mixtures is also

pushed back.

• Gave chance to familiarize members with GHS

requirements and plan for implementation

• 2-day workshop earlier this year on Sound Chemical

Management through Globally Harmonized System of

Classification and Labelling of Chemicals (GHS), which

also earned valuable CPD points for our industry

professionals.

FOOD AND DRUG ADMINISTRATION

• Department of Health (DOH) Secretary Francisco Duque signed

and released the Administrative Order No. 2019-0019 dated 25

June 2019 which reinstates the requirements of licensing for

Manufacturers, Toll Manufacturers, Importers, Exporters,

Wholesalers, Distributors, Retailers or Repackers and product

notification of Household Urban Hazardous Substances pursuant

to the Republic Act No. 9711.

• AO 2015-0038 dated 08 September 2015 signed by DOH Secretary

Janette Garin which stated removal of the requirements of licensing

and product registration for HUHS is repealed.

• FDA to issue IRR and shall give a transitory period of 3 months

from the Effectivity Date of the IRR for the compliance.

• FDA shall regulate HUHS classified as High Risk Categories 1-3

and Low Risk Categories 4-5 under the Globally Harmonized

System (GHS) of Labelling.

What factors have been driving demand for paint?

President Rodrigo Duterte’s BUILD, BUILD, BUILD

directive is still very much in effect. This is a major driver

for demand especially with road marking paints for the

several horizontal infrastructure developments

nationwide. Another big contributor is the rise of the

POGO (Philippine Offshore Gaming Operator) landscape

introduced by the Philippine Amusement and Gaming

Corp. (PAGCOR) because of the growing demand for

office and residential spaces.

What's the outlook for next year?

In as much as almost all industries experienced a

growth slump this year, possibly caused by

macro-economic factors (e.g., Political since

National Elections was held last May), the paint

industry is growth optimistic for the year ahead

especially with the high public approval rating for

the National government and even more so for

many of the dynamic new generation leaders in

the local government units (LGU).

“The Philippines reclaimed its highest ranking in the World

Bank’s Ease of Doing Business (EODB) report, jumping a

record 29 notches this year to rank 95th out of 190

economies across the globe. In the previous EODB report,

the Philippines was at 124th place. Its overall score went

up to 62.8 this year from 57.68 last year. Trade Secretary

Ramon Lopez said the vast improvement in the country’s

ranking was triggered by higher scores in the following

areas: getting credit, protecting minority investors and

dealing with construction permits.”

- The Philippine Star, 25 October 2019

References

• https://www.emb.gov.ph

• http://www.fda.gov.ph

• https://www.philstar.com/business/2019/10/25/1963055/philippines-leaps-95th-spot-ease-doing-business#KDSJxuxU5zFiL4Kc.99

Terima kasih!