GMA sees economic rebound with SEIPI

The Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) will make an economic rebound with increased exports in the next five years, President Arroyo said.

“Against the gale-force winds of the global economy, we remain bullish on our country and your industry. We are optimistic about your future,” Mrs. Arroyo said as she addressed more than 200 top executives of SEIPI member-companies who gathered at Malacañang for the SEIPI CEO Forum.

SEIPI is the leading and largest organization of foreign and Filipino semiconductor and electronics companies in the Philippines. The industry is acknowledged as the main driver of the Philippine economy, accounting for more than two-thirds or $31 billion of the total Philippine exports of merchandise goods in 2007.

Mrs. Arroyo said in spite of a slowdown in the global economy caused by the United States’ credit crash and housing problems, among others, SEIPI is beginning to show signs of recovery.

“Despite a negative growth rate for the first six months of the year, in June, SEIPI managed to grow 2.6 percent year-on-year. The slump is over.”

SEIPI president Ernie Santiago said they foresee a five percent growth next year followed by a 10 percent growth in 2010.

SEIPI chairman Arthur Young added they anticipate a robust 7.8 percent GDP growth in the next five years, anchored on a greater demand for more communications, computer and consumer electronic products.

Mrs. Arroyo’s confidence on SEIPI is further bolstered by the expansion of electronics giant Texas Instruments at the Clark Special Economic Zone in Clark Field, Pampanga.

SEIPI treasurer Dan Lachica also shared with the President how the government can help attract big semiconductor and electronics companies like Texas Instruments to invest in the country and grow the industry.

These include exploring opportunities in the solar industry, extensively promoting the industry in the local and regional levels, developing the education system to create MNS and PhD graduates that would serve the industry needs in IC design and packaging, implementation of “open access” and additional reduction of power rates, further development and improvement of infrastructures, and creating a more conducive business environment.

Mrs. Arroyo, who was accompanied by Trade Secretary Peter Favila, credited SEIPI for making tremendous contributions to the economy. “Because of SEIPI, the country has an 18 percent share of the global electronics market since 2006.”

The Chief Executive also cited SEIPI for being one of the country’s single biggest job generators next only to the Department of Education. Currently, SEIPI employs almost 500,000 engineers, technicians and operators in 926 companies located mainly in the Calabarzon and Metro Manila areas.