Tele­com woes pull down PSEi


The De­part­ment of Trade and In­dus­try (DTI) is push­ing for the cre­ation of the coun­try’s own di­ag­nos­tic tool that will be used to mea­sure lo­gis­tics ef­fi­ciency.

While there are met­rics used in­ter­na­tion­ally, such as the World Bank’s Lo­gis­tics Per­for­mance Index (LPI), these were not ex­actly “good” gauges of how a coun­try per­forms.

“The index is per­cep­tion-based. Scores are based on how for­eign part­ners per­ceive lo­gis­tics per­for­mance in a given coun­try, so it doesn’t ex­actly paint an ac­cu­rate pic­ture of how things work on the ground. That’s why we’ll come up with our own di­ag­nos­tic tool,” Jonathan Ca­bal­tera, as­sis­tant chief of the Com­pet­i­tive­ness Bureau’s sup­ply chain and lo­gis­tics man­age­ment divi­sion, said dur­ing a sur­vey work­shop for the Lo­gis­tics Ef­fi­ciency In­di­ca­tors (LEI) on Thurs­day.


Around 70 pri­vate stake­hold­ers, gov­ern­ment rep­re­sen­ta­tives and mem­bers of the academe gath­ered in a half-day fo­cus group discussion with the aim to de­velop a mea­sure­ment and base­line as­sess­ment of Philip­pine lo­gis­ti­cal costs, time ef­fi­ciency and re­li­a­bil­ity in trans­port­ing goods or car­goes and ser­vices, which are deemed crit­i­cal for the sec­tor’s pol­icy for­ma­tion.

The Com­pet­i­tive­ness Bureau is an ad­vi­sory body un­der the DTI tasked to come up with the LEI, which Ca­bal­tera said they tar­get to re­lease by June of this year.

Ca­bal­tera said they have al­ready con­ducted the sur­vey on Manila re­spon- dents, com­posed of busi­ness lead­ers from var­i­ous sec­tors in­volved in lo­gis­tics.

While the ac­tiv­ity only gath­ered 20 re­spon­dents, and there­fore could not pro­duce con­clu­sive re­sults, pro­vi­sional data showed a dis­crep­ancy be­tween the LEI and the LPI.


Ac­cord­ing to the World Bank’s web­site, the LPI is an “in­ter­ac­tive bench­mark­ing tool cre­ated to help coun­tries iden­tify the chal­lenges and op­por­tu­ni­ties they face in their per­for­mance on trade lo­gis­tics and what they can do to im­prove their per­for­mance.”

In the 2016 LPI, the Philip­pines ranked 71st with a score of 2.86 out of 5 based on six di­men­sions: cus­toms, infrastructure, in­ter­na­tional ship­ments, lo­gis­tics com­pe­tence, track­ing and trac­ing, and time­li­ness.

Re­sults from the sur­vey in Manila, how­ever, yielded a score of 3.31 out of 5.

Among the re­spon­dents, 41 per­cent said re­li­a­bil­ity was a prob­lem, fol- lowed by cost at 31 per­cent, and time at 28 per­cent.


Most of the re­spon­dents or 67 per­cent said their lo­gis­ti­cal needs and re­quire­ments are out­sourced, while 33 per­cent used in­house resources.

“Our per­cep­tion is dif­fer­ent here be­cause we know the prob­lem. Oth­ers, es­pe­cially for­eign­ers, only base their an­swers on what they read on the news­pa­pers,” said Ca­bal­tera.

Ca­bal­tera said scores in cer­tain di­men­sions could be higher or lower in the LEI than they are in the LPI.

Since the LPI is an ex­ter­nal per­cep­tual as­sess­ment, he said it was im­por­tant for the na­tional gov­ern­ment to de­velop its own mea­sure­ments to guide na­tional leg­is­la­tion.

LPI’s im­pact

None­the­less, Ca­bal­tera said the LPI has an im­pact such that it raises aware­ness and pushes for needed re­forms in­clud­ing im­prove­ments in con­nec­tiv­ity, among oth­ers.

The model used to for- mu­late the LEI in the Philip­pines is the same one that has been used in In­done­sia and other As­so­ci­a­tion of South­east Asian Na­tions–mem­ber states.

The DTI tar­gets to reach out to 300 re­spon­dents from all over the Philip­pines, in­clud­ing those in the cities of Iloilo, Davao and Ca­gayan de Oro City.

Red tape

More than cost, time or re­li­a­bil­ity, ex­porters and im­porters think red tape is the coun­try’s big­gest prob­lem in terms of lo­gis­tics.

“The cost is not that ex­pen­sive, the con­ges­tion is not that bad here. Our big­gest prob­lem in this coun­try is the red tape which ac­tu­ally pre­vents busi­ness from be­ing made,” said Alexan­der Hey, Cebu Fur­ni­ture In­dus­try Foun­da­tion (CFIF) vice pres­i­dent for in­ter­nal af­fairs.

Speak­ing on be­half of the whole fur­ni­ture in­dus­try, he said that raw ma­te­ri­als in the Philip­pines are quite ex­pen­sive due to the “ab­so­lutely ridicu­lous” red tape mea­sures be­ing un­der­taken all over the coun­try. THE lo­cal stock barom­e­ter tum­bled yes­ter­day as weak sen­ti­ment in Wall Street spilled over to re­gional mar­kets while le­gal jit­ters dragged tele­com stocks.

The main-share Philip­pine Stock Ex­change index (PSEi) lost 66 points or 0.87 per­cent to close at 7,522.98.

PLDT led the PSEi lower with its 3.41-per­cent drop while JG Sum­mit — a key in­vestor in PLDT — also tum­bled by 3.05 per­cent. Globe like­wise fell by 2.45 per­cent.

This was after the Philip­pine Com­pe­ti­tion Com­mis­sion (PCC) el­e­vated to the Supreme Court a pe­ti­tion to al­low it to re­view the P70-bil­lion sale by San Miguel Corp.’s tele­com as­sets to PLDT and Globe. The Court of Ap­peals, act­ing on a pe­ti­tion from PLDT, had ear­lier blocked the PCC’s at­tempt to re­view the con­tro­ver­sial trans­ac­tion.

PCC, the Philip­pines’ an­titrust body, had said that the trans­ac­tion al­lowed PLDT and Globe to cor­ner a dis­pro­por­tion­ate share of much-cov­eted telco fre­quen­cies.

As telco stocks slipped, the ser­vices counter also fell by 1.75 per­cent while the in­dus­trial and hold­ing firm coun­ters also slipped by more than 1 per­cent.

The min­ing/oil and prop­erty coun­ters also de­clined. The fi­nan­cial counter, on the other hand, ended slightly higher.

“Philip­pine mar­kets were sold down heav­ily mostly in re­ac­tion to US eq­ui­ties fall­ing on Tues­day after Gold­man Sachs shocked Wall Street by miss­ing es­ti­mates,” said Luis Ger­ado Lim­lin­gan, man­ag­ing di­rec­tor at lo­cal stock­bro­ker­age Regina Cap­i­tal De­vel­op­ment./


Jonathan Ca­bal­tera, as­sis­tant chief of the Com­pet­i­tive­ness Bureau’s sup­ply chain and lo­gis­tics man­age­ment divi­sion, dis­cusses in­di­ca­tors of lo­gis­tics ef­fi­ciency and lo­gis­tics per­for­mance index to par­tic­i­pants of a work­shop in Cebu City.

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