THE IT and Business Process Association of the Philippines (Ibpap) and the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi) have forged a partnership aimed at enhancing the country’s export potential, to create more job opportunities and increase revenue streams.
In a statement, Ibpap said it recently signed a memorandum of agreement (MOA) with Seipi as both groups recognized the need to align their priorities for the future.
“The partnership is poised to harness the collective strengths of Seipi and Ibpap, heralding a new era of innovation, efficiency, and global competitiveness for the Philippine export industry,” said Seipi president Dan Lachica.
Together, the information technology and business process management (IT-BPM) and the semiconductor and electronics industries contribute significantly to the Philippine economy in terms of jobs and revenues, accounting for more than 20 percent of the country’s gross domestic product (GDP).
The MOA signed on Oct. 9, 2023 is geared towards amplifying the positive impact of their respective sectors in driving economic progress, fostering innovation, and promoting environmental, social and governance (ESG) initiatives in the country.
“This reaffirms Ibpap’s commitment to drive the sustained growth of the IT-BPM sector, generate more employment opportunities for Filipinos, and enable our economy’s upward trajectory,” said Jack Madrid, Ibpap president and chief executive officer.
5 areas of cooperation
The MOA covers five areas of cooperation to help accelerate the growth of both industries in the Philippines: ease of doing business, ESG agenda, industry development, investment promotion and job creation, technology and artificial intelligence (AI).
Under the ease of doing business, the partnership seeks to create a more business-friendly environment through consistent engagement with the national and local governments and by advocating for policy reforms that simplify and streamline business processes for investors.
In terms of ESG agenda, the two industries pledged to collaborate on initiatives that address current and emerging social, environmental, and corporate governance issues.
For industry development, both want to foster higher value business process outsourcing services in the semiconductor and electronics sector for research and development and integrated circuit design.
In the area of investment and job creation, the group seeks to attract and retain investors through comprehensive marketing and communication strategies, which enhance job opportunities.
Under technology and AI, the group seeks to leverage new technologies like AI to improve the inventory of practices of both industries, encourage knowledge sharing, and implement projects to promote the use of other emerging tools.
The IT-BPM expects to hit US$35.4 billion in revenues for 2023, up 8.8 percent than the previous year’s revenues of $32.5 billion.
If they reach the target by the end of the year, Madrid said the industry will account for 8.4 percent of the country’s GDP, compared to just seven percent last year.
In 2022, the Philippine semiconductor and electronics industry earned $49.09 billion, up 6.88 percent from 2021. It accounted for 62.27 percent of the $78.84 billion in total Philippine commodity exports.
The month-on-month electronics exports increased by 5.48 percent in June 2023 to $4.25 billion, or 63.44 percent of the $6.70 billion total Philippine exports, enabling the industry to retain its position as the country’s top commodity exporter and a significant contributor to economic recovery.