PH retains $81.53B export target

MANILA, Philippines—The Philippines will stand by its export target of $81.53 billion for 2013 on the back of rising non-electronics shipments and a robust services sector, according to trade officials.

The country aims to chalk up $61.10 billion in merchandise shipments, and $20.43 billion in services exports for 2013, according to Department of Trade and Industry (DTI) data.

In 2012, the country slightly missed its export target of $70.9 billion, as actual shipments only reached $70.594 billion.

Senen M. Perlada, head of the DTI’s Bureau of Export Trade Promotion and executive director of the Export Development Council, said weak semiconductor shipments, due to shifting consumer demand from personal computers and tablets to mobile devices, dragged actual shipments last year.

Philippine manufacturers are bound to shift production toward electronic parts for smartphones. But it will take some time before this produces results, he said.

In the meantime, non-electronics shipments such as fresh and processed food are expected to grow, Perlada said.

In the first three months of 2013, merchandise exports contracted by 6.2 percent to $12.1 billion from the $12.9 billion recorded in the same period of 2012, according to data from the National Economic and Development Authority.

The country should thus boost competitiveness in attracting manufacturing and services investments, Perlada said.

According to the 2012 yearend Market View report by commercial real estate services firm CBRE, the lease rates and land values at the country’s industrial sites may be kept steady throughout the year as landlords retain their competitive edge through lower rents despite the anticipated increase in industrial locators.

Still, the Philippines must aggressively develop new products for export, DTI Undersecretary Ponciano Manalo pointed out.

Services, which include information technology and business process outsourcing, presently account for about a fifth of total exports. This sector must also be supported to cushion the effects of a volatile electronics market, economic analysts said.

The DTI is also conducting seminars for Philippine exporters so they can take advantage of duty-free export facilities under trade partnerships with markets such as Japan, South Korea, Taiwan, Australia and New Zealand, Manalo added.