Posted on August 30, 2016
PHILIPPINE EXPORTS of electronics are “still on track” to grow by a targeted 2-5% this year despite a weak outlook flagged by June’s significant drop in imports of these products, the president of the Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) said late last week.
“I’m not alarmed with lower imports,” Danilo C. Lachica, president of SEIPI, said in an August 26 mobile phone message, explaining: “It’s inventory correction.”
Philippine purchases of electronic components, which are used in turn to make electronics exports that make up half of total outbound shipment of goods, suffered a 15.8% decline to $1.697 billion last June from $2.016 billion in the same month last year. Electronics imports made up 24.8% of the total import bill in June.
Although eight of nine sub-sectors of the commodity grew annually in June, semiconductors — which accounted for the biggest share among electronic products at 16.8% — fell 30.2% to $1.155 billion from $1.653 billion last year, according to data SEIPI e-mailed.
Year to date, import of electronic products still surged 25.3% to $10.683 billion from $8.525 billion in 2015’s comparable six months, with semiconductors alone growing 9.5% to $7.162 billion from $6.543 billion.
SEIPI data showed Taiwan as top origin of Philippine imported electronics, accounting for 15.2% of the total, followed by China (14.8%), Japan (12.9%), United States Of America (12.3%) and Singapore (11.0%).
Latest available Philippine Statistics Authority data show that electronic products, while accounting for over half of total receipts, slid 5.1% to $2.429 billion in June from $2.558 billion in the same month last year.
SEIPI data show the first six months saw a nearly flat 0.9% increment in electronics exports to $13.604 billion from $13.483 billion a year ago.
Mr. Lachica remains confident however, saying that the “forecast is still 2-5% growth for the year.”
“So far we are still on track for the forecasted growth,” he added.
In a convention last June, Mr. Lachica said that SEIPI aims to once more achieve $31 billion worth of electronic exports last achieved in 2010. — Roy Stephen C. Canivel