NEDA cites keys to achieving $50-B export target next year

The National Economic and Development Authority (NEDA) is confident that the country can achieve its $50-billion export target next year if it adopts a more balanced market mix and expanded base of products and services.

Likewise, the country must launch aggressive roadshows overseas on existing and new markets to further expose Philippine products for exports, a top economic planning official said.

Socioeconomic Planning Secretary and NEDA director general Augusto Santos said the Philippines also needs to diversify its exports.

"We must veer away from over-dependence on the exports of electronic products, which is currently estimated at 65 percent of the country’s total exports," Santos said, adding that much still depends on world demand.

According to Santos, measures and strategies are already underway to revitalize the country’s exports to boost the economy.

"The One-Town, One-Product (OTOP), for example is a program aimed at product or services development at the city or municipality level, providing more options for RP exports," he said.

Santos said, new approaches to manufacturing of exports such as bundling of product and services as drivers of competitiveness will be explored.

"The government also hopes to further extend the coverage of RP exports to include manufactured goods, services as well as those produced by knowledge sectors," he stressed, citing the Philippine Exports Development Plan for 2005-2007.

The National Statistics Office (NSO) recently reported export earnings slipped by 1.2 percent to $3.598 billion in September, reversing the 0.8 percent growth in the previous month.

This brought total export revenues over the nine-month period to $29.958 billion, up by 3.43 percent from the same period last year.

All major commodity groups registered negative growth except petroleum products, which grew 52.36 percent.

Electronic products, machinery and transport equipment, mineral products, and coconut products dragged exports down.

The electronics sector continues to experience spotty subsectoral growth. Electronic data processing shrunk by 10.2 percent, office equipment by 24.7 percent, consumer electronics by nearly four percent, telecommunications by 58.6 percent, communication and radar by nearly 12 percent, and control instrumentation by nearly 40 percent.

In contrast, semiconductors grew a mere 1.3 percent, automotive electronics by just 8.6 percent, with medical/industrial instrumentation as the only bright spot expanding by 169.5 percent.

The strong growth in the semiconductors follows the 5.6 percent year-on-year increase in worldwide sales as reported by the Semiconductor Industry Association (SIA).

SIA president George Scalise said that global semiconductor sales was strong in September despite concerns of rising energy prices and declining consumer confidence that would affect sales of electronics products.

Scalise reported that the September numbers show strong demand across most major product lines, reflecting continued strength in end-markets.

Garments and textiles, the second largest dollar earner, grew 5.52 percent, continuing an upward path since July 2005.

Exports of fruits and vegetables expanded by nearly 17 percent with pineapples and bananas growing 30 percent and 6.9 percent, respectively. This comes after Filipino pineapple exporters successfully complied with Australian quarantine regulations and started shipping last September.