...the World Bank projection

World Bank raises Philippines growth forecast

 

July 19, 2012

GMA News

 

 

The World Bank raised its 2012 growth forecast for the Philippines Thursday following a stronger-than-expected start to the year, but warned of headwinds from the crisis in Europe and a Chinese slowdown.

 

 

 

However, it said the momentum comes amid weakening global economic growth that would affect key export markets and cause job losses in electronics and other manufacturing industries.

 

The economy grew 6.4 percent in the three months to March, after an anaemic 3.9 percent expansion for 2011.

 

"We have revised our growth forecast upward to 4.6 percent from 4.2 percent for 2012, reflecting higher growth in the first quarter," the bank said in a quarterly country report.

 

"However, this projection does not yet factor in a possible intensification of the crisis in Europe and a further slowdown in China."

 

It said domestic demand would be boosted by higher government spending and robust private consumption backed by remittances by a huge Filipino overseas work force.

 

The bank expects global growth to soften to 2.5 percent this year from 2.7 percent in 2011, hitting key Philippine export markets the United States, the eurozone, Japan and China. — Agence France-Presse

...the PH export trend

Higher electronics shipments to boost total exports

Philippine Daily Inquirer

Wednesday, July 11th, 2012

 

 

The National Economic and Development Authority (NEDA) is optimistic that electronics exports will improve in the coming months.

 

Electronics, which accounted for 38 percent of the country’s total exports in May, declined by 0.7 percent to $1.872 billion. This followed a sharp 23.8-percent drop in April.

“On a positive note, there still appears to be good prospects for growth in the electronics sector, as indicated by improving book-to-bill ratio in Japan and a parity of above 1.0 in the US,” Economic Planning Secretary Arsenio M. Balisacan said in a statement.

“In fact, the book-to-bill ratio in the US has been above 1.0 for four consecutive months, reaching 1.05 in May 2012,” Balisacan added.

A book-to-bill ratio or parity of above 1.0 indicates an upbeat market, as demand or bookings outpace supply or billings. A parity of less than 1.0 suggests weak demand, the NEDA said.

Revenues from the semiconductor sector, which makes up the majority of electronics exports, will be sustained by strong demand for consumer-oriented products such as mobile phones and media tablets, said Balisacan, citing industry sources.

Asian Development Bank Country Director Neeraj K. Jain earlier said that a strong performance of the electronics industry would boost export growth in the second half.

Jain added that the ongoing reconstruction in Japan is helping boost Philippine exports.—Ana G. Roa

...the high tech exporter

Manila exporting more high-tech equipment By Delon Porcalla The Philippine Star Updated April 23, 2012

MANILA, Philippines - While the progress of some countries puts the Philippines in an awkward situation, one major source of pride for President Aquino is the fact that Manila exports more hi-tech equipment than its far more advanced neighbors.

He cited the case of the oil-rich Middle East, where the country “trades from them in basic energy supplies, petrochemical products (for instance), dairy products and the like.”

“We, in turn, export to them all of these, shall we say, more high-tech products, maybe the electronic outputs, from projectors to assemblies and automotive parts and so on and so forth. That is a major source of pride,” Aquino said.

The Chief Executive made the remarks in Friday’s 108th General Membership Meeting of the 17th World Electronics Forum (WEF) and Semiconductors Electronics Industries of the Philippines Inc. (SEIPI) that was attended by more than 200 chief executive officers in Cebu.

Aquino also took the opportunity to praise Agriculture Secretary Proceso Alcala for giving assurance that the government will soon be a rice exporter after the country had been importing rice for the last decade.

“He is telling us that we would probably be a net exporter by 2013, not of the basic varieties but of the higher-end varieties of rice. Just two years ago, we were conditioned to believe that we need to import at least 1.3 million tons of rice a year. And roughly about a little over two and a half years into our term, we will now be exporting,” he said.

He also mentioned his previous experience when he was “embarrassed” to hear from his Asian counterparts about their success stories in growing rice “primarily because a lot of their senior ministers and experts were educated in our country.”

“So, they learned how to plant rice from us, they imbibed the lessons really well; we go to them to import the rice which we can’t grow. And that was obviously a major source of embarrassment,” Aquino admitted.

...the surprise export growth

PH exports surprise points to stronger growth

 

By Erik dela Cruz and Karen Lema,

Reuters

03/13/2012

 

MANILA, Philippines - Exports unexpectedly rose in January as demand from its major markets jumped, a positive start for the Southeast Asian economy after a disappointing 2011 and further evidence that global demand conditions could be improving.

Exports rose 3% in January from a year earlier, and the first rise since last April came as a surprise to a market looking for a fall similar to December's 18.9% drop.

Economists said the Bangko Sentral ng Pilipinas was now likely to hold the main interest rate at a record low after cutting it at the first two reviews of 2012.

"This unexpected recovery was likely largely due to the upside surprise in economic activity globally towards the end of 2011, especially in the U.S. and Japan, as well as relatively stabilisation of China's slowdown," HSBC economist Trinh Nguyen said.

Shipments to the country's three top markets -- Japan, the United States and China-- all grew by double-digits in annual terms in January after falls in December, although Europe remained weak.

Electronics, which make up more than half of total shipments, grew -- a modest 0.4% in annual terms, but the first rise in a year was welcome news particularly after five straight months where they had fallen between 29% and 48%.

HSBC's Nguyen estimated that electronic shipments rose 20.3% from December in seasonally adjusted terms.

Turnaround

"It seems to be supported by a major turnaround for electronics, which have borne the brunt of weak external demand, and regional supply chain disruptions," said ANZ economist Aninda Mitra.

"We also think this provides a firm basis for the BSP to remain on hold."

Ernie Santiago, head of the Semiconductors and Electronics Industries in the Philippines Inc (SEIPI) told Reuters the industry expected electronics exports to grow 10% to 15% in 2012 after contracting more than 20% last year.

Santiago said growth would be driven by businesses restocking and an expected increase in spending on technology.

Analysts agreed that the worst appeared to have passed for the electronics sector, and that should help lift economic growth towards the government's estimate of 5% to 6% for 2012 after a sharper-than-expected slowdown in 2011.

"This does look like a turnaround in the electronics cycle and suggests that GDP growth this year will accelerate from 3.7%," said Eugene Leow, economist at DBS in Singapore.

Exports account for about two-fifths of the country's GDP based on expenditure terms. The government has forecast exports to grow 10% this year, and it expects imports to climb 15%as manufacturers seek to shore up depleted inventories.

Investors seem confident the economy will strengthen -- the stock market is up 14% in 2012, and up by more than a third from Sep. 26, when it posted its lowest close for 2011.

...the resurgent industry

'Resurgent' PH electronics industry seen in 2-3 years

 

ABS-CBNnews.com

02/27/2012

 

 

MANILA, Philippines - A "resurgent" electronics industry is seen in the Philippines within the next 2 to 3 years, according to Singapore-based DBS.

 

In a report, DBS said the electronics investments in the Philippines in 2010 and 2011 point to a resurgent electronics industry in the next 2 to 3 years. Electronics investments reached $2.5 billion in 2011, from $2.3 billion investments in the previous year.

"According to Semiconductor and Electronics Industries of the Philippines Inc (SEIPI), each US dollar of investment will generate $2 of additional exports. Assuming that these investments start to operate at capacity in two years, this implies an additional $9.6 billion worth of exports (about 40% of the total value of electronics exports for 2011) By that time, electronics exports should also show a growth trajectory after staying essentially flat over the last decade," it said.

The disruption in electronics manufacturing in Thailand may also lead to a short-term shift in demand to the Philippines.  "The country may also benefit with firms looking to diversify their electronics manufacturing base away from Thailand following the flood disaster," DBS said.

This year, DBS said it sees a "cyclical" rebound in Philippine electronics exports, after the slump in 2011. 

Electronics and semiconductor shipments, which made up nearly half of Philippine export revenues, contracted 32.7% in December from a year ago.

"The US semiconductors book-to-bill ratio has come off the low of 0.71 registered in September and is at 0.95 in January. This divergence in this ratio and electronics exports suggests that a bottoming out in the electronics cycle may be imminent," it said.

"However, a sharp recovery (similar to post-global financial crisis) is not expected given ongoing concerns about the eurozone debt crisis and the state of the US economy."


PH lagging behind Asian neighbors

DBS noted the electronics industry in the Philippines has been lagging behind other countries in the current downturn.

"Electronics exports across Asia dipped sharply during the global financial crisis (GFC) and this was followed by a rebound of roughly the same magnitude across the different countries. Now, the Philippines is the worst impacted by the current electronics cycle downswing, with electronics exports dropping close to GFC-levels.

By contrast, electronics exports of Singapore, Taiwan, Thailand and South Korea are all hovering significantly off their GFC lows," DBS said.

The underperformance of the electronics industry cannot be attributed solely to the "industry-wide overhang weighing on prices" and suggests structural weaknesses.

"In fact, the longer-term picture shows that the value of electronics exports has essentially stagnated since 2000," DBS said.

The weak performance has been attributed to low investment in the electronics sector in the last decade and heavy dependence on the semiconductor segment, which has been hit with oversupply worries.

DBS noted that electronics investments in the country has stagnated. In 1995, electronics investments totaled over $2 billion, and over the 10 years, the average investments was only P700 million.

"The lack of sufficient investment during that time period could have hurt potential output growth and also means that the country could have missed out on the latest technology trends," DBS said.

---

...the bright prospect

After lean 2011, bright economic forecast and rosy signs for '12

GMA News

February 19, 2012

Economic planners of the Aquino administration are sticking to their merchandise exports forecast of 10 percent this year, despite their failure to meet their 2011 projection, National Economic and Development Authority Director-General Cayetano Paderanga Jr. said Sunday in a statement.

The NEDA chief did not give specifics on what the Aquino administration will do in the short term to attain the $62.3 billion goal – an uphill climb from $47.9 billion last year. He reiterated an oft-repeated remark about “diversification strategies... to minimize the country's vulnerability to adverse shocks, both external and domestic.”

Historical data on Philippine exports show 2009 and 2011 as decline years. From the dip in 2009, the exports sector recovered in 2010. Economic planners are hoping for a similarly strong performance in 2012.

Meanwhile, the Wall Street Journal painted this weekend a rosy picture of early 2012. "Investors appear to be responding positively" to Aquino's anti-corruption campaign, according to the newspaper's correspondent James Hookway, highlighting in particular the charges brought against ex-President Gloria Arroyo and the impeachment trial of Chief Justice Renato Corona.

The Journal reported that the Philippines in January sold $1.5 billion in US-denominated bonds "at a yield comparable with those of European countries such as Spain and Italy."

"International financial markets are reassessing the Philippines' place in the global pecking order as concerns over Europe's financial health increase," Hookway wrote.

Recovery from 2011

That is welcome news after the doldrums of 2011. The National Statistics Office (NSO) said last Feb. 10 that goods exports fell “20.7 percent to US$3.3 billion in December 2011 compared to the previous year, with full-year earnings for 2011 contracting by 6.9 percent.”

NEDA chief Paderanga said the export sector is still expected to earn $62.3 billion this year but there could be “significant downside risks to projections, associated with the weak global demand resulting from slower growth in advanced economies and other major markets such as the Peoples Republic of China and ASEAN..."

He chose to take a medium-term view that stresses “trade logistics, business and policy environment, labor productivity, the link between exporters and micro, small and medium enterprises, research and development, and technology in order to move up the value chain and enhance the competitiveness of the export sector."

Paderanga said contract manufacturers of electronics exports “could continue to experience weak growth in 2012.” This sub-sector is responsible for more than 50 percent of merchandise goods shipped out to the rest of the world. The value of outbound electronics shipments plunged nearly 24 percent to $23.72 billion in 2011.

"Industry reports noted that contract manufacturing business, which is composed of electronic manufacturing services and original development manufacturing, is anticipated to decline slightly worldwide in 2012. It was also reported that total contract manufacturing revenue will decline by approximately one percent (or US$3 billion) from US$360 billion in 2011," said Paderanga.

Exporters see growth areas

Philippine Export Confederation (Philexport) president Sergio Ortiz-Luis Jr. points to non-electronics exports and the markets of Japan, China and the United States as the “good news” sectors.

Ortiz-Luis stressed in a recent message to his Philexport colleagues that “our non-electronics products are now performing” as evidence by the “minimal” decline in total exports compared to the plunge in electronics exports.

He specifically noted the growth in earnings of exporters of automotive electronics, fruits and vegetables, furniture, basketwork, and garments.

As to markets, Ortiz-Luis said, “Japan gave indications of recovery” followed by the United States and China.

Japan, China, Thailand and Taiwan were the Philippines' top export markets that took in more merchandise shipments from Filipino producers in 2011. Presented are the export growth rates in 2011.

Historical data on Philippine exports show 2009 and 2011 as decline years. From the dip in 2009, the exports sector recovered in 2010. Economic planners are hoping for a similarly strong performance in 2012.

Data of the NSO support the Philexport president’s observations. Among the highest growth rates in agro-based product exports in 2011 were:

• Coconut oil - $1.78 billion
• Centrifugal and refined sugar - $354.3 million
• Fruits and vegetables - $978.5 million
• Shrimps and prawns - $367.58 million

Other sectors also chipped in last year to make up for the decline in electronics exports:

• Garments - $1.89 billion
• Wood manufactures - $1.68 billion
• Chemicals - $1.89 billion
• Processed food and beverages - $1.03 billion
• Copper metal - $1.13 billion
• Gold - $214.39 million

Japan, Taiwan, Thailand and China were among the country's top 10 markets and all four posted significant increases in export growth rates while other markets in the top 10 recorded declines.

— Earl Victor Rosero/LBG/HS, GMA News

...the aggie sector rebound

Food Exports Expected To Recover

 

February 18, 2012

Manila Bulletin

 

 

MANILA, Philippines — Although the country’s agriculture exports lagged behind other ASEAN countries, industry leaders believe there is great potential not just to catch up with neighbors but to be the leading food exporter of some agro-food products where the Philippines has the competitive advantage.

Roberto C. Amores, president of Philippine Food Exporters (Philfoodex), said at the launch of the 11th Philippine Food Expo that the government just have to step up its productivity enhancement programs in order to reverse the problem of declining agricultural production, which is making the supply of raw materials scarce and costly.

Other cost issues are the high prices of fuel, labor rates and commodity prices will increase production costs.
“Thus, despite the higher export value, producers and processors will gain less income because of rising cost of materials and other production inputs,” Amores said.

Amores, who is also the Chairman of the Philippine Okra Producers and Exporters Association (POPEA) also mentioned that there is a need to speed up the market and trade protocols to expand access to markets of our agro-food products like China and Korea.

The case of okra, he said, the Philippines had been exporting fresh okra to Japan with Thailand as its main competitor. But the demand of okra in Japan is seasonal and limited.

To increase export sales performance, there is need to explore other markets like Korea (for fresh okra) and the USA and Europe (for frozen okra) through an expanded support on market research and promotions.

Recently, POPEA discovered that okra can access the Korean market. The opportunity to enter the Korean market would be attained once the protocols are established by the Bureau of Plant Industry Quarantine Service in coordination with Korean Plant Quarantine.

At present, the POPEA has started doing their own market research and promotions of fresh okra through some Korean buyers. The Korean Plan Quarantine officials have visited one of the packing house and production area of an exporter in Tarlac last November, 2011.

To further expand demand of fresh okra especially that of the Japanese variety in the domestic market, new food preparations with okra as the main material will be conceived by a culinary group. Food sampling of okra based on these innovative food preparations will be one of the special events to be featured in the 11th Philippine Food Expo.

“Our Philippine okra shall be positioned as a healthy and nutritious vegetable food of choice. And if the POPEA program promoting our okra in the local market gets on stream, we expect that the increase demand will redound to benefit our small producers in terms of the incremental income which can be coming from the increased recovery of export grade rejects and increased volume,” said Amores.

Philfoodex is inviting everyone to visit the 11th Philippine Food Expo which is scheduled on February 23 to 26, 2012 at the World Trade Center, Pasay City, Metro Manila.

With the theme, “From Farm to Fork: The Best Philippine Food Products to the World ” the annual premier trade event seeks to highlight the importance of strengthening the food supply chain amid the expanding demand of global consumers.

The theme also underscores the need to build stronger ties with all players in the Philippine food sector to enhance its competitiveness in the global market and expand markets for existing and new food products.

With expanded participation of the fresh and processed food producers and exporters including allied industries, this year’s Philippine Food Expo is expected to draw many visitors and serious trade buyers which are expected to surpass last year’s recorded level of more than 27,000 visitor’s.

Philippines food export sales as of November 2011 reached $2,356.33 million or 24.06% higher than last year’s $1,899 million. By product groups, processed food/beverages contributed $ 941.80 million, fruits and vegetables, $907.52 million and marine products accounted for $ 507.01 million.

Data further showed that by products, cavendish bananas showed a strong sales performance of $440.87 million from the January to November, 2011 period. This was followed by tuna exports valued at $261.98 million and canned pineapple which generated sales of $174.47 million

...the transparent government

Transparency drive lauded by investors

By MAR T. SUPNAD

August 18, 2011

Manila Bulletin

MARIVELES, Bataan, Philippines — President Benigno S. Aquino III’s clampdown on graft and corruption earned a positive review from foreign investors, among them executives of a Hong Kong-based garments firm who noticed an “improvement” in government transactions in this industrial town.

Luen Thai President Raymond Tan said Thursday that the government’s campaign against corruption has improved a lot and this is the reason why his firm signed a Memorandum of Understanding with the Freeport Area of Bataan (FAB) for the setting up of a manufacturing plant here.

Tan did not pinpoint which particular agency of government he was referring to about corruption but newsmen gathered that there was a previous incident allegedly involving certain representatives of the Board of Investments (BoI) that hindered foreign investments.

Luen Thai’s project in this town will add to its other branches in Clark, Tarlac and Cebu, employing around 12,000 workers for its export-quality apparel brands like Polo Ralph Lauren, Carhartt, Dillard’s and Levi’s, among others.

...the coco water

RP eyed as source of Pepsi coco water

 

March 14, 2011

Manila Bulletin

 

 MANILA, Philippines – Global beverage giant PepsiCo Inc. is looking at the distribution of ‘coconut water’ in the US market with the Philippines as primary source.


Trade officials said that Brazilian businessman Rodrigo Veloso, founder and CEO of One Natural Experience (O.N.E.), who came here over a year ago to explore for the sourcing of young ‘coconut water’, has renewed interest in the Philippines.


Based on the plan, O.N.E. will produce the ‘coconut water’ in the country but PepsiCo will take care of distribution in the US market.


“They should produce it here because the tendency for this kind of product is to produce it at source,” the official said.


The initial volume of ‘coconut water’ that O.N.E. would like to source from the Philippines is 10 containers a month. The country’s total coconut production is placed at 16 million tons a year.


Last year, PepsiCo and O.N.E., a Los Angeles, California-based coconut water company, has announced PepsiCo’s increased investment in O.N.E., thereby acquiring a majority stake in the company. This represents a second round of investment in O.N.E. by PepsiCo and Catterton Partners, a private equity firm based in Greenwich, Conn.


Coconut Water is one of the fastest growing categories in the U. S. beverage market.


The trade official, however, said that there is not enough supply of coconut water that can be produced in the country.


The number of productive coconut trees in the country has dwindled over the years because of neglect due to the lower price of copra. It was only lately that prices of copra have reached an all-time high of P60 per kilo following the strong demand of coconut oil in the world market.


Trade and Industry undersecretary Merly Cruz said the biggest producers of coconuts in the country are Davao , Bicol, Samar, Leyte and Quezon, but coconut production has dwindled over the years because there have been lesser coconut development programs and no more replanting.


She said there is also a huge demand for coconut water concentrates in the U.S. after a Thai supplier has stopped its export business.


Cruz said the government is pursuing an advocacy to develop high-value added products out of coconut by-products to create awareness among Filipinos that there is money in these lowly products and in doing so they would be encouraged to cultivate their coconuts and replant new ones. (BCM)

...the historic export

Electronics exports hit record high

Rise in investments drove up shipments in 2010

By Abigail L. Ho
Philippine Daily Inquirer
 03/11/2011

MANILA, Philippines—Investments in the local electronics sector hit a record $2.3 billion last year, driving exports to reach $31.1 billion, also the highest in the industry’s history.

In a briefing yesterday, Seipi president Ernesto Santiago said electronics exports had the potential to grow by at least 10 percent a year and could hit the $50-billion mark by 2016.

Last year, electronics exports accounted for 61 percent of the country’s merchandise exports. Of the $31.1-billion total, 71 percent came from semiconductors and 23.4 percent from electronic data processing or computer-related products, Santiago said.

In terms of employment, the electronics industry provided jobs to an additional 25,000 people in 2010, he added.

According to the industry rule of thumb, each direct job in the electronics industry gave rise to seven indirect jobs. This meant that the industry provided livelihood to an additional 175,000 individuals last year.
As the industry continued to expand, he said it would be possible for engineers in Libya to be repatriated and given jobs in the country.

“There’s a possibility of hiring engineers from Libya, if they will be qualified. There may also be (information technology) engineers who can be absorbed by the local industry,” Santiago said.

To ensure that the projected growth of the industry materializes, however, yearly investments must reach at least $2 billion, Santiago said.

Just three months into the year, Seipi chair Dan Lachica said hitting the $2-billion investment level this year was highly possible, considering that there were already more than $200 million in investments committed by two industry players.

Lachica related how Toshiba recently committed to invest $100 million to expand its operations in the country.

First Philec, a Lopez company where Lachica serves as chief executive, will also be investing $104 million for a new joint venture with Korean company Nexolon.

The new company, to be called First Philec Nexolon Corp., will perform the same functions as First Philec Solar Corp., but will serve the requirements of Nexolon instead of American firm Sunpower.

“We need to expand capacity to boost exports. To do this, we need to promote the Philippines, enhance the competitiveness of Filipinos, lower the cost of power, and make a conducive environment for business to grow,” Santiago explained.

...the exporters

Philexport to double exports to $100 B

By EDU LOPEZ

March 8, 2011

 MANILA, Philippines – The Philippine Exporters Confederation (Philexport) is aiming to double exports to over $100 billion in five years by 2016 from last year's total merchandise exports of $ 51.3 billion.

The target quantifies the goal of the newly approved three-year Philippine Export Development Plan (PDEP) drawn up by private and public sector leaders under the Export Development Council (EDC).

"The target is modest in comparison to last year's 33.1 percent jump. It aims to post an 11 percent year-on-year growth between now and 2013 as the sector gets back its' bearings," said EDC vice chairman Sergio R. Ortiz-Luis, Jr. and concurrent Philexport president.

"Faster growth is expected to take off between 2014 and 2016 when we put in place an agro-industrial development program for the resource-based industries," said Ortiz-Luis.

The new plan has made major adjustments in strategy in the fields of policy directions, product development, marketing and promotions in the aftermath of the 2008-2009 global recession.

It took full consideration of the fact that the full recovery of the export sector last year was driven by dramatic hikes in imports by Asian countries whose economies proved more dynamic than the country's traditional markets in Europe and the United States whose imports from Philippines continued to decline.

In the immediate term, the new strategies will be funded by pooling the promotional budget resources of the Department of Trade and Industry, the Department of Agriculture, the Board of Investments, the special economic zones and the Department of Agriculture into a synchronized and orchestrated investment and trade promotions offensive.

This will be done as stakeholders work for the establishment of a National Export Development and Competitiveness (NEDAC) fund patterned after the Export Support Fund granted once by the past administration and administered by the EDC and the DTI at the height of the two-year global recession.

...sustainability

Philexport sees sustained export growth in 2011

By EDU LOPEZ

mb.com.ph

December 19, 2010

The Philippine Exporters Confederation (Philexport) is confident that the export sector's strong recovery this year would be sustained in 2011.

Philexport forecasts that export earnings would hit $50 billion by the end of 2010 compared to last year's level of $38.4 billion.

Total export sales from January to September 2010 already reached $38.298 billion, led by the electronic products.

Philexport president Sergio Ortiz-Luis Jr. told a recent Philexport general membership meeting that the foreign exchange rate may not affect this year's revenue forecast, citing the peso's depreciation to P44 despite the influx of dollar remittances sent by the overseas Filipino workers for their families during the Christmas holidays.

The peso closed at P44.15 to the US dollar on Thursday from previous day's P43.94. The high growth path may no longer come from Philippine traditional trading partners, said Ortiz-Luis.

He said that exports to the United States and Europe continued to decline until September this year, an indication that economies of these countries have not fully recovered.

In contrast, sales to the ASEAN trade bloc have accounted for 30 percent of total. And for the whole of East Asia, Philippine exports already represents close to half of all exports at 41 percent, he added.
Ortiz-Luis sees bright market prospects in Asia, particularly China and India.

"China and India alone have a combined population of 2.5 billion people, millions of them getting more prosperous each day. We need to find out what we can produce in abundance that the Chinese and Indians may want to buy," he said.

The government is helping industry players open and expand markets with these two huge markets as well as with other new trading partners like New Zealand and Australia.

"This new decade, more Asian countries are riding on the crest of the third and perhaps final wave of rapid development in the rest of Asia. We now know where we are going and must move in concert now and get there."

Ortiz-Luis said the aggressive push in opening up new markets with the country's trading partners in Asia plus the market for halal food in the Middle East was specifically spelled out in the new Philippine Export Development Plan (PEDP).

The PEDP for the years 2011 to 2013 is now being fine tuned in time for implementation starting next month.
Apart from this initiative, another new strategy that has been added in the plan is the strengthening of the value chain.

This is through new investments and long-term partnerships for each of the export industries, particularly those that use indigenous raw materials like food processing, furniture, handicrafts, fine and fashion jewelry and Christmas décor.

...percent story

NEDA: RP August exports among Southeast Asia’s highest

10/12/2010 | 03:11 PM

 

The Philippines ranked among the highest in exports growth in East and Southeast Asia in August and may exceed its export target for the year, the National Economic and Development Authority (NEDA) said Tuesday.

“With a 36.6 percent year-on-year increase, the Philippines joined Vietnam as top performers among neighboring Asian economies in terms of export growth in August," according to NEDA officer-in-charge Rolando Tungpalan.

“At this rate, we are optimistic that the country could exceed the 2010 exports growth target of 15 percent, Tungpalan said.

Vietnam exports grew 48.4 percent in the same period, while others Asian peers that recorded strong exports include Hong Kong SAR (36 percent), China (34.4 percent), Indonesia (30 percent), and South Korea (27.7 percent).

Philippine exports for the month totaled $4.7 billion, led by shipments of manufactured goods, which grew by 36.3 percent, and agro-based products, which grew by 75.4 percent. “This marked ten consecutive months of positive year-on-year growth since November 2009," NEDA said.

Eight-month receipts

From January to August this year, cumulative export receipts amounted to $33 billion, up by 37.3 percent from the same period in 2009.

Exports of manufactured goods, which grew 36.3 percent in August this year compared to last year, were supported by the 45.3 percent growth in electronic products.

“The brisk outward shipments of semiconductor components and devices reflected the strong growth in global sales in August, which increased by 32.6 percent based on figures from the Semiconductor Industry Association (SIA)," NEDA said.

The markets for personal computers and wireless products, “along with infrastructure expansion in emerging markets, particularly China and India, continue to drive sales," Tungpalan said I n the report, quoting the SIA.

Semiconductor exports are expected to post positive growth in the coming months, with the North American Semiconductor Equipment Industry recording a book-to-bill ratio of 1.17 in August, Tungpalan noted.

Agro-based products

Meanwhile, coconut and sugar products led the growth in agro-based exports.

“Local exporters of coconut products took advantage of favorable prices in the world market, which saw copra and coconut oil prices increasing by more than 50 percent from a year ago, to record a 148.1 percent uptick," Tungpalan said.

“Sugar exporters, likewise, were enticed by the 34.3 percent hike in US sugar prices from August last year, prompting an increase in the value of shipments from a low $620,000 to $14.4 million in August 2010," the NEDA OIC said.

Singapore, with a 20.3 percent share, was the single biggest buyer of Philippine exports for the third month in a row.

Following Singapore were the US (13.5 percent), Japan (12.7 percent), China (12.4 percent),
and Hong Kong (8.5 percent).

Exports to the ASEAN accounted for 27.6 percent of total exports, NEDA said. — VS, GMANews.TV