PHILIPPINE exporters of garments and hard goods expect their sales to grow by 5 percent this year to about $1 billion, as more foreign companies start to either put up or expand their respective operations in the country.
This expectation was based on reports that some 20 manufacturers of soft and hard goods as well as food products are now looking to invest around $50 million and employ 5,000 workers in the Philippines, said Robert Young, president of the Foreign Buyers Association of the Philippines (Fobap).
In a statement, Young was quoted by the Philippine Exporters Confederation Inc. (Philexport) as saying that investors are likely to flock to the country once a new administration has settled in after the highly divisive elections in May.
Although some companies were expected to delay their decisions until after the elections, Young expressed confidence that this would not adversely affect investor sentiment as the Philippines was deemed to have made significant impression in the global business community when it hosted the series of Asia Pacific Economic Cooperation (Apec) meetings last year.
“After the election, we can have somehow a lot of investors coming in due to the new administration that will give them some—not excitement—but somehow encouragement to do business,” he said.
“The Apec (meetings) will have some good impact—recall impact—on the buyers … This is a very big plus factor for the foreign buyers to come back and it is some sort of reminder for them that we are still on the map,” he added.
Local exporters of garments and hard goods were also expected to benefit from the Asean Economic Community, which was officially launched late last year.
“This Asean integration will be an eye opener to the local manufacturers on how to compete globally. They will understand now that their products should be priced as such, otherwise, they cannot sell. Their (product) quality must be as such in this level, otherwise, they cannot sell in the Asean market,” Young said.
He also stressed on the need for exporters and manufacturers to comply with the social audit requirements of importers.
“We have no choice but to really be compliant. Otherwise, if we don’t shape up, we will be shipped out,” he added.