By Kris M. Crismundo
MANILA, Oct. 28 (PNA) — The country’s two-way trade of electronic products in January to August 2014 period was steady at US$ 25.6 billion, same level as last year.
Semiconductor and Electronics Industry of the Philippines Inc. (SEIPI) President Dan Lachica said during the business group’s CEO Forum and General Membership Meeting in Makati City Tuesday that the industry remained the top exporting product in the country while it is also the second largest importing sector in the first eight months of the year.
Lachica mentioned that electronics industry exported US$ 16.3 billion in January-August 2014 period, higher by 5.2 percent from last year’s export revenue of US$ 15.5 billion.
On the other hand, import payments of the sector declined by 7.6 percent year-to-date to US$ 9.3 billion this year from 2013’s US$ 10.1 billion import bill.
Lachica explained that lower import transaction in the first eight months of the year was mainly due to the expansion of local value-added.
Moreover, the SEIPI chief stressed the economic contributions of the electronics industry which include:
*that if the electronics industry ceases to produce output, purchase inputs and distribute products, gross domestic product will drop by 28 percent;
*that for every Php1.00 increase in export sales, the industry generates at least 12 centavos additional indirect taxes in the country; and
*that for every Php1 billion increase in investments, the industry generates about 620 to 1,408 additional quality jobs.
He also noted that in 2013, the electronics industry’s total direct tax contributions was around Php30 billion.
Lachica also mentioned opportunities for the Philippine in the US$ 325-billion worth electronics global market.
These opportunities include the projected US$ 87 billion automotive electronics market by 2030; US$ 1.27 trillion market of smart cities by 2019, with smart energy as the fastest growing sector with a growth rate of 20 percent; global market for connectivity and convergence expected to value at US$ 25.7 billion in 2020; and the future of wearables, that includes wearable cameras, smart glasses, smart watches, healthcare, sports activity and trackers, wearable 3D motion trackers, and smart clothing, which are expected to hit 164.2 million units in 2015.
Meanwhile, in order to increase the local industry’s participation to the global market, Economic Planning Secretary Arsenio M. Balisacan assured the business group of the government’s support to the industry.
“As we go hand in hand in working towards inclusive growth, we assure you that government continues its efforts to reduce transactions costs, address bottlenecks, and accelerate the roll-out of much needed infrastructure projects,” said Balisacan, who is also the Director General for National Economic and Development Authority (NEDA).
“We encourage the electronics industry to move up the value chain, develop new growth areas, and seize opportunities in Southeast Asia as free trade in the region is implemented in 2015,” he added. (PNA)