PHL needs to develop more export winners–Neda
May 12, 2016 at 18:00
PHL needs to develop more export winners–Neda
The country’s reliance on a few traditional export products is proving to be disadvantageous to the Philippines, as receipts declined by 15.1 percent to $4.611 billion in March, according to data from the Philippine Statistics Authority (PSA).
The decreasing appetite of foreign buyers for Philippine-made products, amid the challenging global economy, has made it difficult for exporters to hike their earnings in the first quarter. Export revenues contracted 8.4 percent to $13.109 billion in the January-to-March period.
“Given the growth of merchandise exports in the first quarter, the Philippines needs to grow by at least 8.3 percent in the next three quarters to attain the low-end projection of the Export Development Council of 5.4 percent in 2016,” National Economic and Development Authority (Neda) Director General Emmanuel F. Esguerra said.
Esguerra, who is also the country’s economic planning chief, said the government must focus on promoting industry and national competitiveness by crafting policies that move domestic industries into higher-value niches in the global value chains (GVCs).
He added that the government must also encourage multinational enterprises, which are lead firms in the GVCs, to locate in the country.
“It’s a necessary step in the midst of a challenging global economy. The country’s traditional trade partners continue to post subdued growth; global trade is not expected to pick up soon; and China’s slowdown is impinging upon overall growth in emerging economies,” Esguerra said.
“To be able to reach out to other potential export markets and sell our products, it is crucial to ease government regulation and strengthen market intelligence gathering in partnership with the private sector,” he added.
The Neda chief said the Philippines must also find ways to maximize opportunities presented by trade agreements and economic groups, particularly within Asean.
According to the Philippine Export Development 2015-2017, products that have high growth potential include chemicals, activated carbon, metal components and fresh or preserved fish.
In March PSA data showed that total receipts from the top 10 exports declined by 8.6 percent to $3.867 billion. The top 10 export winners accounted for 83.9 percent of total revenues.
Electronic products remained the country’s top export with total receipts of $2.356 billion, accounting for 51.1 percent of revenues. It increased by a mere 1 percent, from $2.332 billion registered in March 2015. The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. said five major products boosted the electronics sector’s performance during the period.
The top performer was automotive electronics, which posted earnings of $40.85 million, or 329.69 percent higher than the $9.51 million recorded in March 2015.
Other best sellers were consumer electronics, which grew 152.8 percent; telecommunication, 118.61 percent; communication/radar, 55.23 percent; and medical/industrial instrumentation, 24.02 percent.
Top foreign buyers of Philippine-made products during the period were Japan, the United States and Hong Kong, China.
Exports to Japan declined by 13.6 percent to $991.43 million, from $1.147 billion in March 2015. Shipments to the US also declined by 23.6 percent to $672.85 million, from $880.16 million. The country’s export performance fell short of the government’s target, as revenues contracted 5.6 percent $58.827 billion, from $62.102 billion in 2014.
Source: www.businessmirror.com.ph
