THE Philippine Exporters Confederation, Inc. (Philexport) is keeping its three- to five-percent growth projection for the local export industry this 2008, but might revisit next year’s eight- to 10-percent forecast should the economic problems in the United States persist.
“When the (US) sub-prime problem started, we have already factored that in the export growth. There is not really much change, we have been conservative already in the three to five percent. So, we are inclined to stay in that projection; after all, US is not such a big market for us now,” said Philexport president Sergio Ortiz-Luis in an interview.
Ortiz-Luis said exporters are targeting undeveloped markets like China, which could make up for the revenue losses in the US and other traditional markets.
“Right now, it’s good that Asia is not that much affected (by the US crisis) as the other areas in the world,” he noted.
Market niche
Ortiz-Luis said Philex-port has also been focusing on service exports development and creating market niche for some products.
“To a certain degree, this crisis is bringing more investments in the BPO (business process out-sourcing firms). That’s one of the bright sides (of this US economic slump) and hopefully, foreign direct investments and maybe even portfolio investments start shifting in this area of the world rather than in the US,” he added.
The industry leader noted efforts are likewise geared towards helping the exporters cope with the rising costs and improving their competitiveness.
“We bring down some of the costs and the Export Promotion Fund (EPF) and help in the areas where we are weak. (We have reforms like) simplification of procedures and (addressing) red tape and graft and corruption and hopefully, (expand) access to credit financing,” Ortiz-Luis noted.
Financing
The EPF was facilitated by the Export Development Council last year to provide supplemental financing for projects designed to promote growth of Philippine exports.
However, Ortiz-Luis further said they might review their eight to 10 percent growth forecast for next year if the US economic crisis lingers.
The electronic industry, which accounts for more than half of all exports, had already projected zero growth this year. Ortiz-Luis said there are doubts that the electronics sector would contribute to the target growth rate next year.
“We might revisit that. We’ll have to just wait probably later this year,” Ortiz-Luis said.
Based on the new Philippine export development plan, overall exports growth is targeted to reach eight to nine percent this year with revenues of $64.2 billion.
In 2009, this is targeted to increase by 14 percent and $73.2 billion in earnings; and by 15 percent for 2010 with $84.4 billion revenues.
Stakeholders are optimistic to hit the industry’s $ 84-billion revenue target by 2010, with a specific commitment of $13 billion by the BPO industry. (Philexport News and Features)
