Investments sought to counter exports slowdown
Trade Secretary Ramon Lopez said the slowdown in export growth might have less to do with hiring policies but more with “structural deficiencies,” contrary to an industry official who blamed the decline on contractualization concerns.
The trade chief was responding to comments made by Sergio Ortiz-Luis Jr., president of the Philippine Exporters Confederation Inc., who said that some exporters had opted to put a hold on expansions and developments because they were not yet ready to hire workers under permanent jobs.
The issue develops as President Duterte recently issued an executive order on contractualization, which reiterated the government’s drive against illegal hiring policies.
“For me, it’s less of that issue (contractualization) but more of production capacity issues, structural deficiencies, which for decades [have] limited production capacities,” he said in a text message to the Inquirer.
According to the Philippine Statistics Authority, merchandise exports have declined for the third consecutive month, ending the first quarter with a 6-percent drop to $15.8 billion compared to the same three-month period last year.
For the month of March alone, exports dropped 8.2 percent year-on-year to $5.5 billion, the fastest decline in three months, preliminary data showed.
“Thus, [there is] the need to continue policies and programs to build the agriculture and manufacturing base through productivity enhancement program support, favorable exchange rate for exporters and manufacturers, and more enhanced and relevant incentive schemes,” he added. —ROY STEPHEN C. CANIVEL
