The Federation of Philippine Industries (FPI) successfully held its 15thAnnual General Assembly and Election of new Board of Directors lastFriday, 7 April 2006 at the Executive Dining Room of the United CoconutPlanters Bank (UCPB) in Makati City, with DENR Secretary Angelo T.Reyes, as guest speaker.

FPI President Jesus L. Arranza made a report on the significantachievements in the areas of anti-smuggling, labor and productivity,environment, energy, monitoring of substandard products, internationaltrade, among others. Mr. Arranza likewise announced that the FPISecretariat will move to its new office at Suite 701, Atlanta Center,Annapolis, right at the heart of the Greenhills Business Center.

MARIWASA, The Tile Company, introduces MICROBAN - anti-bacterial protectionMARIWASA is the leader in the ceramic tile industry, with over38 years of experience in ceramic tile manufacturing and marketing.

Banking on its technological edge, MARIWASA has undoubtedlyestablished itself as a major market player and as an industry leader.The Company accounts for close to half of total industry capacity.

MARIWASA keeps the lead in process and product innovations. In1973, it was among the first companies in Asia to produce vitrifiedfloor tiles. In 1989, it was the first Philippine Company to utilizeslabless kilns. In 1991, it introduced in the country double fastfiring to produce big-sized wall tiles. In the same year, it becameone of the few companies in Southeast Asia to produce third-fired ceramic products. In 1997, MARIWASA started polishinghomogeneous tiles in a new polishing facility in Pasig. In 1998, its

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Raul T. ConcepcionChairman Emeritus

Meneleo J. Carlos, Jr.Chairman of the Board

Jesus L. ArranzaPresident

Edison T. Co SetengExec. Vice-President

V. Francisco VaruaVP-Agriculture

Renato R. ErmitaVP-Manufacturing

George S. ChuaTreasurer

Jose T. BaldonadoCorporate Secretary

Henry A. TañedoDirector

Arsenio N. TancoDirector

Ramon C. AgustinesDirector

Edwin L. UmaliDirector

Ernesto M. OrdoñezDirector

Jose C. AlvarezDirector

Abeto A. UyDirector

During the occasion, Mr. Arranza launched the “FPI Award” and honored Dr.Justino R. Arboleda as the first recipient in recognition for his outstandingcontribution in the area of environmental development for his invention ofthe Geotextile. Geotextile is an exceptional product made from coconut coir,which gained renowned international recognition.

It also marked the launching of two (2) complimentary activities – RUGS(Remove Undesirable Government Servants) and ROGS (Reward OutstandingGovernment Servants). This is being launched in support of the government’scampaign against graft and corruption.

production capacity almost doubled with the full commercialoperation of its newest production facility in Sto. Tomas, Batangas.The facil ity in Batangas is now the core of MARIWASA’smanufacturing operations with the transfer of the productionfacilities in Pasig, which commenced in 2000. The consolidation ofthese facilities in one location was instituted to achieve greatereconomies of scale.

Through these efforts, the company earned the unchallengedreputation not only as the industry leader but also the industry’squality standard-setter. Its ceramic tiles comply not only withPhilippine product standards but also conforms to internationalstandards such as the European Norm. All MARIWASA productionfacilities are ISO certified. The main plant, as well as the Batangassubsidiary, received their ISO 9002 certification in 1998.

Luna GoDirector

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FPI 15th Anniversary...

Fifteen Directors were elected by the members. Under its uniqueorganization, Eight (8) Directors will be elected from the IndustryAssociations while the remaining Seven (7) Directors will come from itscorporate members, provided they are manufacturers or producers.Only the Chairman, President or Chief Executive Officers are qualifiedto run as FPI Directors, unless, if he had been previously a Director ofthe Federation.

Voted to the FPI Board from the Industry Associations, in alphabeticalorder were: Ramon C. Agustines, Philippine Association of BatteryManufacturers; Jesus L. Arranza, Coconut Oil Refiners Association;Atty. Jose T. Baldonado, Philippine Coconut Oil Producers Association;Edison T. Co Seteng, Ceramic Tile Manufacturers Association; Luna S.Go, Textile Producers Association of the Philippines; Henry A. Tañedo,Tin Can Manufacturers Association of the Philippines; and, Francisco V.Varua, Philippine Sugar Millers Association.

Elected from among its Corporate Members, also in alphabetical order,were: Jose Ch. Alvarez, Philippine Phosphate Fertilizer Corporation;Meneleo J. Carlos, Jr., RI Chemicals Corporation; George S. Chua, TysonAgro-Ventures, Inc.; Renato R. Ermita, Asahi Glass Philippines, Inc.;Edwin Ll. Umali, Mabuhay Vinyl Corporation; Abeto A. Uy, PhilippineSteel Holdings Corporation; and, Arsenio N. Tanco, Coats Manila Bay,Inc.

It was also officially announced during the assembly, that Mr. Raul T.Concepcion being the Chairman Emeritus of the Federation isautomatically an ex-officio member of the Board.

The Board unanimously re-elected Mr. Jesus L. Arranza and Mr. MeneleoJ. Carlos, Jr., as President and Chairman, respectively.

The Federation of Phil ippineIndustries (FPI), the foremostassociation of local manufacturersand agricultural producers, stagesrecently its 4th Golf Classic in theTagaytay Midlands Golf course inTagaytay City. With its rolling terrainand breathtaking views, Tagaytay

Midlands is one of the most beautiful golfcourses in Asia. Top executives of majormanufacturing corporations and industryassociations competed for top honors infour divisions, under a System 36 format.Aside from trophies and other fabulousprizes, FPI included a KIA Sorento 2006as its major prize for the Hole-in-Onewinner.

The winners in this year’s tournament areas follows: Class D: 2nd runner-up, RayCraubourne; 1st runner-up, MarianHerrera; and Champion, Ike Yusingco.Class C: 2nd runner-up, Jayne Yu; 1strunner-up, Takumi Yahata; Champion,Claro Arriola. Class B, 2nd runner-up, JunHizon; 1st runner-up, Arthur Dy; and,Champion, Pepot Geraldez. Class A: 2ndrunner-up, Elbert Medina; 1st runner-up,Ronald Dizon; and, Champion, JonelleRoxas. Low Gross, Eric Buhain; and, LowNet, Roberto V. Garcia. Gross Champion,Eric Buhain; and, Overall Champion,Roberto V. Garcia. None of the playerswas able to drive home a brand new KIA

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Congratulations to MARIWASA, the Tile Company:

The overall champion of the FPI4th Golf Classic, Mr. Roberto V.Garcia, with members of the FPIGolf Committee.

My Mobile Office

When I started working, which was a long time ago (yes…25 years to mecertainly feels like a really long time), you had toliterally go to the office to getthings done. At that time, the only wireless communication facility we had couldonly reach as much as your scream would carry. We had no laptops then and PCswould occupy much of your desk space, requiring the arms of a gorilla to movearound. Data was stored in floppy disks whose drives were bigger than today’snotebook computers and would have enough storage space for one wholephotograph…if it was a real low quality image.

Well, even at that time you could have reports duplicated and distributed topeople anywhere in the world. However, copiers then were as big as chestfreezers and the reports would either have to be physically delivered or faxed.Unfortunately, faxed images and documents were lousy and the transmissionrates so slow that your long distance phone bill would probably put you out ofbusiness. As for the internet at that time, I never even imagined about it.

Today, you just need a few basic tools to be able to work out of your house, caror anywhere. With the right cell phone, laptop, and scanner, you can now takeyour office along with you, wherever. The most basic cell phone will allow you tobe in touch with the whole world 24 x 7. Of course, things get more exciting whenyour cell phone has a digital camera, MMS, wifi and can connect to the internetlike a laptop. Cell phones now have so many features like external speakers,conference calling, voice mail, call waiting, etc., that it is now much like youroffice land line and more.

Laptops or notebooks are really great for mobility, they can connect to theinternet wirelessly, they have the speed and storage capacity for all your needs,and with USB ports, they can connect to a multitude of other gadgets. Whilethere are cell phones that can function like laptops, I still think that laptops arestill much more convenient to use when doing a lot of work. The keyboard andscreen is much bigger, processing speed is much faster and storage capacity isnot an issue.

To make your office truly paperless, you would need a decent scanner. Scannerstoday are even cheaper than fax machines, you can have really good qualityscans of images and documents. Some scanners even come with software thatcan read and allow you to edit scanned documents! You won’t even need a faxmachine if you have a scanner. You can send your scanned images and documentsas attachments to your email messages or send them directly to traditional faxmachines.

So imagine you are sick at home but you have to come up with a report to be sentto your boss who is in another country. No problem. You can call up people in theoffice, field or anywhere through their cell phone, get data sent to you via textor email, photos sent to you via MMS and do further research on the internet. Nosoft copy of the memos and letters that will form part of your report? Not toworry, you can scan and edit these documents using your scanner and load theminto your laptop. You make your report using your laptop, attach the varioussupporting documents and photos and email it all off to your boss on time. Justto be sure he got it, you call him up or text his cell phone to tell him to check hisemail for the report. He would not even know that you had done all of this fromyour house, but of course you tell him that in spite of your condition, you managedto deliver. That should earn you some points, don’t you think?

How much would this mobile office cost? Not much, for basic equipment that willget the job done you would need three gadgets, a cell phone with a camera, alaptop that can connect to the internet and a scanner. For P60,000 to P80,000you should be able to have your mobile office up and running. Now, if only wecan find another gadget to get us that cup of coffee…oh, I just remembered, wehave that already and they come as attachments to your body, your arms andlegs.

(Comments may be sent to georgechuaph@yahoo.com)

BUSINESS OPTION

by FPI Director George S. Chua

BUSINESS OPTION

The FPI attended the first meeting of the JointConsultative Committee-TWG on Non-Agriculture MarketAccess (JCC-NAMA TWG) last Friday, 7 April 2006 at the BOI.Critical items on the NAMA Modalities were discussed such asthe Swiss Formula Coefficient, Mark-up for unbound tariffsand Paragraph 8 flexibilities to cover items that may remainunbound.

The approaching deadline of 30 April 2006 with NAMAnegotiations scheduled on 19-21 April 2006 leave very littletime to process and re-formulate negotiating positions. Itshould be recalled that industry was willing to live with areduction of 20% in existing bound rates. This translates to arequired coefficient of 90. Officials from Geneva haveindicated that the coefficient could go as low as 25.

It was also noted that for unbound items, the mark-upshould be 99% for them to average 23.4% - the same averagefor bound items in the previous Uruguay Round. Indicationsduring the TWG meeting point to a mark-up of only 25%.

These developments would seem to indicate that policyspace for Philippine industries will be severely constrictedshould the 25/25 coefficient/mark-up formula framework beadopted. This makes the allowance for exceptions underParagraph 8 of critical concern since local industries will needideally 20% allowance from the 5% being discussed forindustry development and sectoral nurturing to take place.Inclusion in the sensitive list will likewise have to undergo athorough and coherent screening process for the country notto lose its strategic and socially sensitive sectors.

Philippine Textile Group’sTrade Mission to China

WTO-NAMA NegotiationsWTO-NAMA NegotiationsWTO-NAMA NegotiationsWTO-NAMA NegotiationsWTO-NAMA Negotiationsapproaching critical stageapproaching critical stageapproaching critical stageapproaching critical stageapproaching critical stage

MBC invited FPI inMBC invited FPI inMBC invited FPI inMBC invited FPI inMBC invited FPI inanti-smuggling forumanti-smuggling forumanti-smuggling forumanti-smuggling forumanti-smuggling forum

The Makati Business Club invited theFederation of Philippine Industries as well asother stakeholders in a discussion with BOCCommissioner which was held recently atBalmori, Manila Peninsula. MBC ExecutiveDirector Guillermo Luz openly acknowlegedthat FPI under the leadership of Mr. JesusL. Arranza is in the forefront of the anti-smuggling campaign. Mr. Edison Co Seteng,FPI Executive Vice President and Vice Chairof the Anti-smuggling, Mr. Ernesto Ordonez,Atty Rufino Margate, Jr., and Mr. Rene Visayaalso attended the meeting.

During the same meeting MBC hasrequested the support of the industryrelative to Republic Act No. 9280 particularlythe implications, among others, of theprovision of Section 27 which states, that:

“Sec. 27. Acts constituting the Practiceof Customs Brokers Profession. – Any singleact or transaction embraced within theprovision of Section 6 hereof shall constitutean act of engaging the practice of customsbroker profession. Import and exportentry declaration shall be signed onlyby customs broker under oath based onthe covering documents submitted by theimporters.

Mr. Arranza committed to support andtook advantage of the occasion to inviteMBC as well as those in attendance to jointhe regular monthly meeting with BOCCommissioner, which is held every secondThursday of the month. It was agreed inprinciple to jointly address the issue in RA9820 and to close rank to fight smugglingin all fronts.

Provisions under the Anti-SmugglingBill

Mr. Jesus L. Arranza, Atty Carmen Laysa-Herce and Atty Mabel Mamba of Philip Morris,Mr. Jong Sereno, Mr. Rene Visaya and AttyRufino Margate Jr., met at the DR Room UCPBMain Office, Makati, relative to theamendments of the anti-smuggling billsparticularly the provision on the required 30day liquidation of imported raw materials,otherwise, it will be considered abandoned.

Philip Morris has requested to provide aprovision exempting their particular industryfrom the 30-day liquidation on the groundof seasonality. Tobacco is planted andharvested only once a year, which explainswhy they import in bulk. The 30-dayliquidation would therefore affect theiroperations, thus, the requested exemption.

Mr. Arranza assured the group to submitthe matter to the Anti-SmugglingCommittee and the Board.

The Federation of Philippine Industries’ (FPI) MemberAssociations – Textile Millers Association of thePhilippines (TMAP), Textile Producers Association ofthe Philippines (TEXPAP) and Garment ManufacturersAssociation of the Philippines (GMAP), under theumbrella of the Federation of Philippine Textile Industry(FOPTI), along with the Department of Trade andIndustry (DTI) headed by Undersecretary TomasAquino, recently embarked on a very successful trademission to Guangdong, China.

More than sixty owners and executives from Philippinetextile manufacturers went to Guangdong, China, inresponse to the recent visit made by the GuandongChinese Trade Mission in Manila where the Federationof Filipino-Chinese Chamber of Commerce and Industry(FFCCCI) warmly welcomed them. This was the biggestsingle industry trade mission from the Philippines tovisit China in order to invite the Guangdong ChineseTextile Industries, particularly the garment makers, toinvest in the Philippines. The Group eventually joinedthe DTI representatives headed by UndersecretaryTomas Aquino. Mr. Joseph Lim, Chairman of China-Philippine Chamber of Commerce, hosted a dinner partywith Consul-General Erlinda Gavino, welcomed DTIUsec. Tomas Aquino and the members of the entourage.

The mission was originally proposed and initiated byMr. Lorenzo Ku of FOPTI whose membership consistedof Mr. Luna Go’s TEXPAP; Mr. Joseph Yae’s GMAP, themembers of the dyeing and finishing companies headedby Mr. Peter Coliangco, and Mr. Arsenio Tanco,Chairman of FOPTI, represented TMAP. Others, whohave contributed to the success of this missionincludes Mr. Tan Ching, Vice-President and Director ofFFCCCI.

The mission elected Mr. Francis Chua as HonoraryChairman for the private sector in view of hiscontribution as president of FFCCCI, who was unableto join the delegation at the last moment.

DTI Secretary Peter Favila appointed Usec. TomasAquino together with Executive Director Serafin Julianoand the team from DTI as special envoy to lead thegroup.

More than 200 delegates from Guangdong TextileAssociations attended the joint conference. Usec.Aquino, in his speech, invited the members of theGuandong Textile Association to invest in the Philippinesand presented to the delegations the manyopportunities open to prospective investors. He alsoencouraged them to come and visit the Philippines astourists and experience the beautiful beaches andscenic spots that we have. GTEB Executive DirectorJuliano spoke on the advantages of investing in thePhilippines including the available facilities awaitingthe Guangdong investors. Finally, an open forum tookplace, culminating in business proposals andtransactions were made.

The next one and a half day for the delegation wereutilized in visiting two textile mills and a textile mallwhere texti le products and accessories weredisplayed and sold. The mills are literally huge, one ofwhich employs 5,000 workers with 340 knittingmachines, and dye house with fabric and packagedying capacity of up to 4,500 kilos per machine. Thereis a saying that one can raise big fish only in big lakesor rivers. These mills do not only supply the Chinesemarket but the world market.

On the third day, a meeting was held between thePhilippine Trade Mission and the Guangdong Textileofficers with their respective governmentrepresentatives where views were exchanged in

order to achieve the very purpose of the visit andin promoting trade relations between the twocountries, especially the invitation for theGuangdong Garment Makers to invest in thePhilippines. The Chinese counterpart expressedpreference for a stronger commitment on thefacilities and privileges offered by the Philippinegovernment to the Chinese investors. Therepresentatives of the Philippine Consulatesuggested to them to formalize their requests inwriting so that she can present them to theirConsulate office and in turn forward them to DTIfor comment or study.

The Trade Mission boasts of the followingachievements:

• It opens up and establishes an official andformal communication between FOPTI andthe Guangdong Province Textile Association;

• A partnership and cooperation memo wassigned/concluded between GuangdongProvince Textile Association and FOPTI, inorder to promote investments and to establisha long term cooperation based on theprinciple of friendly cooperation and mutuallybeneficial to all;

• Formal negotiations have started betweenthe two groups regarding future investmentsfrom the Guangdong Province TextileAssociation, (not on an individual basis);

• An offer was made by the government ofChina to have a China Small and MediumScale Enterprise Fair and Sino-PhilippinesSmall and Medium Enterprise Fair. Thedisplay will be free for the Philippineparticipants. This is an opportunity for thePhilippine Manufacturers and Producers tointroduce, display and sell in China markettheir Philippine-made products.

Sorento 2006.The support and generosityof the sponsors helped the tournamenteven more successful than the previousyear’s. The FPI Golf Tournament Committeeis composed of FPI Vice President forManufacturing and Golf Committee ChairRenato R. Ermita of Asahi Glass Philippines;Director/Treasurer George S. Chua ofTyson Agro-Ventures; Director/Ways andMeans Chair Henry Tañedo of the Tin CanManufacturers Association of thePhilippines; Directors Jose Ch Alvarez ofPhilippine Phosphate Fertilzer Corporation;Miguel V. Pingol of Philippine BatteryManufacturers Association and ClaroArriola of the Textile Mills Association of thePhil ippines, together with the FPISecretariat headed by its SecretaryGeneral, Atty Rufino M. Margate, Jr.

The FPI Board of Directors would like toextend its warmest appreciation to all theSponsors and Donors of this year’stournament and to the Golf Committee fortheir generous and selfless contribution oftime, effort and money who, in one way oranother made this annual event a greatsuccess.

Principal Sponsors:Global Steel Philippines (SPV-AMC),Inc.Philippine Steel Holdings CorporationSan Miguel Corporation

Major Hole Sponsors:Asahi Glass Philippines, Inc.Petron CorporationTin Can Manufacturers Association of thePhilippinesScrap Collectors Recycling Association ofthe PhilippinesFederation of Filipino-Chinese Chambersof Commerce and IndustryOriental and Motolite CorporationPhilippine Phosphate FertilizerCorporationFuture Trade International, Inc. (BombayGin)NAFCO ResearchBMW Philippines CorporationPhilippine Amusement and GamingCorporation (PAGCOR)Puyat Steel CorporationPuyat Flooring Products, Inc.

Minor Hole Sponsors:R.I. Chemical CorporationEast-West Seed Company, Inc.Mabuhay Vinyl CorporationFlat Glass Alliance of the Philippines, Inc.Philippine Sugar Millers AssociationChikka Asia, Inc.

Pilipinas Shell Petroleum CorporationCathayland, Inc.Social Security System

Hole-in-One Sponsors:Columbian Autocar Corporation (KIAMotors)Arms Corporation of the PhilippinesMaster Sports Corporation(MIZUNO)

Donors:Aeropack Industries, Inc.AG Canprint, Inc.Alcantara, Ubay and AssociatesArce Dairy CorporationAsahi Glass Philippines, Inc.Asia Brewery CorporationBoysen Philippines, Inc.Central Azucarera de Don PedroChemrez, Inc.Chain Glass Enterprises, Inc.Cheng Ban YeekCoats Manila Bay, Inc.Manila Bay Spinning MillsCoca-Cola Export CorporationCoconut Oil Refiners AssociationCreativepro Integrated Marketing, Inc.D&L Industries, Inc.East-West Seed Co., Inc.Flat Glass Alliance of the PhilippinesFuture Trade International, Inc.Macropharma CorporationMetro Container CorporationNestle Philippines, Inc.Noritake Porcelana Manufacturing, Inc.Oriental and Motolite CorporationPetron CorporationPhilippine Welding ProductsManufacturers AssociationPhilippine Association of BatteryManufacturersPhilippine Association of Match andLighter ManufacturersPhilippine Steel Holdings CorporationPhilippine Steel Rolling Mills AssociationPhilippine Sugar Millers AssociationPHIMCO Industries, Inc.Procter & Gamble Philippines, Inc.Quatro Grafix, Inc.RFM CorporationSan Miguel CorporationSCITECH Outdoor AdsTagaytay Midlands Golf Club, Inc.Tire Manufacturers Assn. of thePhilippinesTJ’s Clear Art - The Glass EtchingCompanyUnilever CorporationUnion Home AppliancesUnited Terminals Services (UTS)Zesto Corporation

(L-R) FPI Director Jose Ch Alvarez withspecial guests - DTI Secretary Peter Favilaand DILG Usec. General Melchor Rosales

To be a versatile golf player one musthave this winning form as skillfullydemonstrated by Secretary Favila

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FPI Stages its 4th Golf Classic...

MARIWASA has produced its newest innovative products – the Antibacterial MARIWASA Tiles with Microban.

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MARIWASA, The Tile Company...

The MARIWASA brand remains the preferred choice of the market. MARIWASA maintains its leadership in all market segments, with a commandingshare of the wall tile market and a substantial edge in the market for floor tiles. At present, MARIWASA products still command a premium over its localcompetitors.

MARIWASA products cater to the widest range of end-user preferences. MARIWASA presently produces glazed wall tiles in six sizes of variousdesigns, colors and finishes. MARIWASA regularly sponsors product presentations before the country’s leading architects and interior designers during whichnewly developed products and designs are introduced. These roundtable sessions have served as the launching pads for the commercial production of theseitems.

MARIWASA’s distribution network spans the whole archipelago. Ceramic tiles are distributed in the Philippines through exclusive and non-exclusivedistributors. Distributors pass these products on to dealers (who sell to end-users) or retail the products themselves. MARIWASA has over sixty activedistributors spread throughout the major cities in the country. To further strengthen its market leadership, MARIWASA has established showrooms in strategiclocations in the country.

MARIWASA – The Tile CompanyManila Office: C. Raymundo Ave., Bo. Rosario, Pasig City. TelephoneNos.: (632) 628-3871 to 80 / (632) 628-1986 to 89 Fax Nos. (632) 628-1983 to 85.

Plant Address : Brgy. San Antonio, Sto. Tomas, Batangas.Telephone Nos.: (6343) 778-2929 to 36. Fax No.: (6343) 778-2934Website: http://www.mariwasa.com

The FPI Secretariat: Standing, L-R: Mau R. Arce; Allan A. Salvador;Judanito F. Yap; Juan Angelo Rocamora; Stevenson C. Tavera.Seated, L-R: Jocelyn C. delos Santos; Atty. Rufino M. Margate, Jr.,FPI Secretary General; Ellen Cusilit; Rhea Decosta.