Handicraft exporters will most probably continue undertaking product development programs and aggressively market their products abroad in 2011 to gain a great competitive advantage for their sector.

"Design is our strength so we should continue to hone this because we might be left behind. Countries like South Korea, China, Thailand and Vietnam have design brochures, booth. We should continue to have these," said Chiqui Veneracion, vice president for special projects of the Philippine Chamber of Handicraft Industries, Inc. (PCHI).

Veneracion said industry players are working closely with the Product Development and Design Center of the Philippines (PDDCP) in terms of development work for the design program.

She said all organizations that represent the furniture and furnishings sectors are also working together as a business support organization (BSO).

"We are working as an integrated group called the Philippine Federation of Furnishings Association. All the homestyle BSOs bonded together so that we can implement a stronger advocacy program," she bared. "We are already parallel as an industry; we are homestyle under DTI (Department of Trade and Industry)."

To generate higher revenues, Veneracion said they will also employ other sales modes like the internet to gain more buyers.

Moreover, she said the sector intends to tap different funding agencies that can help them finance a number of their identified product development and market promotion programs.

In the previous years, the Pearl2 project supported by the Canadian International Development Agency (CIDA) helped the handicraft sector implement their programs, Veneracion noted.

The Pearl2 project assisted BSOs in the design, development and execution of programs, projects and experimental initiatives to support their small and medium enterprises (SMEs) member base.

"We are also hoping, in our collaboration with the DTI and PHILEXPORT, that they will still provide funding to help the companies. Of course, we continue to support the members by working together with the BETP (Bureau of Export Trade Promotion) because they have many leads from the commercial attaches," she added.

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The 18-month sovereign debt crisis facing Greece is not only bringing their government to the brink of collapse as public fury over savage austerity measures erupted, but it is also sending world economy tumbling.

The scope of impact was not limited to richer creditor countries of the eurozone only, but also sent Philippine stocks exposed to risk and ended lower on 17 June 2011.

The bellwether Philippine Stock Exchange reportedly dipped by 0.67 percent or 28.30 points to 4,173.08, while the broader all-share index declined by 0.01 percent or 0.37 point to 2,947.98. Trading volume has reached 2.02 billion shares worth US$ 118.96 million with 65 stocks declining, 60 advancing, and 46 unchanged.

Many analysts agreed that this will be a long week of chaos as the euro area faces a very challenging situation that comes mostly from the interconnection of the sovereign debt crisis and the situation of the banking sector. This grim situation is expected to be copied by the Philippine stock market because of the growing fears that a Greek default could spark "contagion" across Europe, causing Greek banks to implode and inflicting major damage on the big banks in France and Germany.

Hence, it is not surprising to see the Dow Jones industrial average index take a dive by 1.48 percent or 178.84 points to 11,897.27, while all Asian equities were already trading in the red.

Some brokerage firms said the bargain hunting that entered during the mid-part of the session because of the improvement in the country' s unemployment rate failed to boost the stock market, which was dominated mostly by sellers.

The Americans too are exasperated with the failure of the big EU states to resolve the crisis and fear for the impact of a Greek default on the international economy. Greek borrowing costs soared to record levels as investors took fright.

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A study by Berg Insight showed that the number of mobile money subscribers in emerging markets is expected to to grow from 133 million users in 2010 at a compound annual growth rate (CAGR) of 40 percent to reach 709 million users in 2015.

The research report released recently made a bold projection that shows a growth in the total value of mobile money transactions at a CAGR of 54 percent from US$ 25 billion in 2010 to US$ 215 billion in 2015. From these figures, Asia-Pacific is expected to become the most important regional market because it will account for more than half of the total user base.

Berg Insight provides business intelligence and concise reports for and regarding the telecom industry, including strategic insights about pivotal developments in their focus areas.

Berg Insight telecom analyst Lars Kurkinen said that in developing regions such as Africa the mobile phone will become the primary digital channel for people to conduct financial services in the coming years. Financial institutions are also beginning to realize the importance of mobile phones to reach new clients viewing mobile money services as high-priority strategic projects.

Kurkinen added that mobile operators and third party service providers are ramping up their efforts to target the huge un-banked populations in emerging markets

"The number of live mobile money services has thus grown at an explosive rate during the past two years and recently reached as many as 300 commercial deployments," Kurkinen said in their company website.

The report further identifies mobile international value transfer as a high-growth market and an important revenue source for mobile industry players.

Berg Insight estimates that US$ 16 billion worth of international money transfers will be received using mobile phones in 2015, up from less than US$ 1 billion in 2010.

Berg Insight also forecasts that international airtime transfers will grow at a CAGR of 67 percent from US$ 130 million in 2010 to reach US$ 1.67 billion in 2015.

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World Bank recognized that with its human capital and good telecommunication infrastructures, the country is fast becoming one of the best performers in services exporters particularly in the business process outsourcing.

During a conference on the global trade in services held in Makati City on 6 June 2011, the World Bank cited the Philippine's superb performance in services exports that could provide more channels to sustain economic growth and reduce poverty incidence.

"Service sector performance critically depends on human capital, the quality of the telecommunications network, and the quality of institutions," said Sebastian Saez, World Bank senior trade economist.

"The experience of exporting outsourced business services in the Philippines shows that by creating an enabling environment where the private sector can deploy its creativity, developing countries can reap the benefits that services exports opportunities are opening," he added.

Services exports increased from nine percent in 1999 to 21 percent in 2009 in the Philippines.

Its services exports rose by 3.6 percent on average per year during the period, higher than that of Asia as a group which averaged 1.5 percent per year.

Unlike many developing countries, the Philippines has been a net exporter of services since 2006.

The Philippines is currently the third largest player in business process outsourcing (BPO) in the world, accounting for 15 percent of the global BPO market, after India (37 percent) and Canada (27 percent).

"That's a tremendous achievement in just over a decade," said World Bank Country Bert Hofman.

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The microfinance industry is expected to experience a technological facelift once Smart Communications Inc. and Microfinance Council of the Philippines (MCPI) formalize their partnership to help promote the rapid development of the country's microfinance industry.

Smart will also be recognized as the first telecommunications company to become a member of MCPI.

Through the Smart Money platform, microfinance institutions (MFIs) are able to expand their geographical presence and to offer their financial services to a wider client base. They can disburse loan proceeds and collect loan payments simply and securely, all via mobile.

Smart Money also enables MFI members to send and receive funds through their Smart mobile phone, whenever, and wherever they may be.

Since 2000, Smart has been in the forefront of providing mobile finance services to Filipinos. Its award-winning mobile commerce platform, Smart Money, has enabled Filipinos with limited or no access to banking institutions to experience financial services using one of the most ubiquitous devices of today-the mobile phone.

At the moment, Smart's key initiatives that have benefited the microfinance industry are the nationwide rollout of Smart Money Centers which has enabled Filipinos to send and receive cash in the absence of banks and remittance centers.

Smart's Island Activations Program – an initiative supported by the GSM Association (GSMA), the alliance of nearly 800 of the world’s mobile operators in 219 countries – provides mobile financial services to remote, underserved communities in the Philippines.

Another Smart initiative that has benefited the microfinance industry is Hapinoy, the country's first sari-sari store chain which empowers female micro entrepreneurs with additional livelihood opportunities via their Smart e-loading businesses.

"This collaboration with the Microfinance Council of Philippines reinforces Smart's commitment to provide affordable, accessible and relevant mobile solutions to Filipinos," Tricia Dizon, Smart Financial Services Department head, said.

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