Economist: Exporters must keep focus on Asia to sustain growth

CEBU, Philippines - While the Asian region has successfully sustained its strength despite the challenging financial pressure in the global landscape, exporters are again called to make extra effort in penetrating the Asian market.

Economist Nicholas Kwan, head for Standard Chartered Bank research (East) said the growth in Asia as a market for exporters is evident, as last year’s figure showed that export performance especially by Asian countries grew because of the sustained demand within the region.

He said 90 percent of growth of exports of Asian countries, is coming from the region itself. Because of this, it is highly recommendable that in order for exporters to sustain its momentum, the focus should be the countries in Asia.

Even, non-Asian countries including Europe and United States are now looking at Asia, as a good growth driver market for its products, he said.

While giant economies are suffering, Kwan recommended that exporters should start now in reaching out to the emerging market—which are the countries in Asia.

“See those countries that are growing or emerging,” he said.

According to Kwan, the world now is watching Asia. Asian traders should take advantage of this.

“Asia has recovered well. We gained from our fundamentals whether the US Dollar is strong or weak,’ he said.

Although, exporters have been encouraged to shift their focus on the Asian market in the last few years, still some have remained targeting the non-Asian countries, especially US, and Europe.

He said the world is watching Asia now, because of the region’s resilience during the global recession, some countries including the Philippines didn’t fall into the pit.

Asia covers 40 percent of the world’s GDP. The world after the crisis is now divided into two—the industrial world which are now on recession, and the emerging world—the growing side which is Asia.

In Cebu, furniture exporters for instance are already starting to penetrate the Asian market, especially China, although some countries within Asia is its top competitors like Indonesia and Vietnam.

Strengthening its market base, Asia is seen to provide “air” for relief to furniture makers this time, while US and Europe markets are still on an unpredictable stage, said furniture exporter Charles Estreegan in an earlier interview.

China, which is considered as a big competitor for some export products in the Philippines, especially in the manufacturing sector, is not regarded as competitor by the furniture makers, instead it is a good emerging market for them, Streegan said.

“China is never our competitor. We offer certain products that are not offered by the Chinese,” Streegan said.

While it is still early to get the rewards of the market diversification focus, exporters in Cebu hope to fasten its growth with the Asian region.

On the other hand, seaweed exporter Benson U. Dakay said that for processed seaweed or carrageenan products, Asian market cannot sustain the survival of the industry.

He said Europe and the United States are still the main “bread winners” for the survival for the seaweed export industry in the Philippines. (FREEMAN)