SEIPI, he said, with its board members and networking committees, in partnership with government, will continue its drive to make a conducive environment for electronics business to grow in the Philippines.

In December last year, electronics was joined by copper concentrates, petroleum, ignition wiring sets and metal components among those that posted double-digit growth while cathodes, garments and furniture languished in the negative growth list.

On an annual basis, only pineapples, gold, activated carbon, raw tobacco, fine jewelry and sugar remained in the growth path in the midst of what was seen as the worst crisis that hit the export sector in more than a decade. --Abe P. Belena, PHILEXPORT News and Features <--back

2. RP gold, jewelry, furniture, food, clothing can make it in Australia, New Zealand

The door has been thrown wide open for Filipino enterprises to compete and win in the rich markets of Australia and New Zealand for a variety of products other ASEAN members have been selling lucratively down under.

This was made clear by resource speakers during the launching of ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) at the Philippine International Trade Center (PITC) conference hall the other day.

The new free trade pact took effect last January 1, but was only formally launched this week to demonstrate to exporters that a whole new market for Philippine products remains to be tapped in those developed countries in the subcontinent of Asia.

In her presentation to stakeholders, Philippine trade attaché to the two countries Michelle Sanchez, indicated that gold is the top exports of Singapore, Thailand and Indonesia to Australia while the Philippines, potentially the richest in gold reserves, does not sell that precious metal there.

Of the ASEAN-six countries that now include Vietnam plus the original ASEAN five which are Singapore, Thailand, Malaysia, Indonesia and the Philippines, the Philippines is number six in terms of export sales to Australia with a measly revenue of A$607.78 million, far below that of fifth placer Vietnam at A$4.39 billion.

Singapore is ASEAN’s top exporter to Australia, pocketing A$11.45 billion last year, followed closely by Thailand with revenues of A$10.74 billion, and a close third was Malaysia at A$8.32 billion. Indonesia came in 4th with A$5 billion in exports to the land of the kangaroos.

Except for Singapore that exports mostly manufactured goods, the rest of the ASEAN countries are selling seafoods, fish, jewelry, furniture and footwear to Australia, things where Philippine products are at par, or even better in terms of quality.

In New Zealand, the Philippines, until last year, was fifth in exports of $225 million New Zealand dollars against $151 million exports of Vietnam. Among the top Philippine exports to New Zealand were fruits and nuts, mineral fuel, preserved food and furniture plus manufactured goods like electrical machinery.

Assistant trade secretary Ramon Kabigting said during the briefing that the Philippines can now compete on equal terms with the rest of ASEAN nations, especially Thailand that previously had a bilateral trade with Australia, as minimal import tariffs for most products will be equally granted.

The pact, he said, does not only include the trading of goods but covers that on services, the free flow of investments, and the movement of natural persons. -- Abe P. Belena, PHILEXPORT News and Features <--back

3. 15M jobs needed in five years to solve joblessness

The true unemployment gap in the Philippines is 15 million able-bodied Filipinos that include the totally jobless, those who are holding part-time jobs during some periods of the year and Overseas Filipino Workers (OFWs) whose work contract have expired.

This was the conclusion made by Dr. Fernando Aldaba, former dean of the Ateneo School of Economics, in an eight-month study he made as the basis for the formulation of an industrial policy for the country by the National Competitiveness Council (NCC).

Dr. Aldaba presented his findings to leaders of key industries in the country including officers of foreign chambers of commerce who were called to join a Thought Leaders Forum Thursday to draw a roadmap to bridge the unemployment gap for the country in the next five years.

Setting the tone of the forum, NCC private sector Chairman Ceasar Bautista said, “As we chart the way forward for improving competitiveness and governance even after the May 2010 elections, we have to prepare plans for continuing the projects that have gained champions from the various business groups in both competitiveness and governance. It is predicated on the assumption that the private sector leaders will be able to present these proposals to the top leadership of the new government as this administration bows out in June.”

The NCC was created through an executive order in 2006 to help government avert the continued decline of the country’s competitiveness rating which has continued to skid to the lowest ranks of the most uncompetitive economies in the world in recent years.

In dissecting the unemployment situation in the country, Dr. Aldaba noted that Filipinos that are out looking for jobs number 2.82 million. The underemployed, mostly in low-paying jobs in the services sector number another 7.3 million.

Returning OFWs every year whose contracts have ended number about 5 million. In all, he said, quality jobs are needed by 15.16 million Filipinos.

Philippine business must be able to create an average of three million quality jobs a year for the next five years, Aldaba asserted, to be able to bridge the real unemployment gap and bring down unemployment rate at two percent by the end of the fifth year.

Consulted were leaders of the mining industry, the tourism sector and manufacturing, particularly those in the automotive and electronics industry on how many jobs they can commit to create for that planned period.

Benjamin Romualdez, president of the Chamber of Mines of the Philippines, said that the mining industry is one bright area where thousands of jobs can be created yearly. The biggest hurdle, however, are local government units that have come to declare moratoriums in the development of mining prospects in their territories.

He urged government for consistent policy as the geological prospects for various metals are very high in the country.

Another big job generator that was identified is the tourism sector which is said to be able to create three jobs for every foreign tourist that arrives in the country. The industry which was the envy of the rest of Asia in the 1970s, has lagged behind its neighbors in terms of investments.

In the export sector, Ernesto Santiago, president of the Semiconductors Electronics Industries of the Philippines, Inc., said that investments have been the main driver for job creation. He revealed that in the electronics sector, a P1 million investment creates one quality job. In the garments sector, P50,000 of investment creates one job while P30,000 is needed by a furniture maker to create one job.

A consensus was arrived at by participating business leaders that the manufacturing sector must lead in job creation as they are the ones that create decent, good-paying jobs.

There are also bright prospects for agri-business and tourism as the big job creators in the immediate future. -- Abe P. Belena, PHILEXPORT News and Features <--back

4. LGUs to develop cohesive, efficient system of truck restriction

Adjacent local government units (LGUs) in the urban areas are expected to closely work together to come up with a cohesive and efficient system of truck restriction, taking into account the role of trucks and freight carriers in the national economy.

Dr. Primitivo Cal, deputy leader of a team preparing the country’s transport plan and policy framework, said such thrust is among the policy areas identified in the draft Transportation Policy Act.

The proposed Act sets the direction and parameters for the development and regulation of the transportation system in the country.

Cal said apart from urban transport, other policy areas covered include cost recovery and subsidies, resource generation and allocation, regulation of passenger transport services, transport logistics, governance; and criteria for the preparation of agency plan, programs and projects.

“We have drafted the Transport Policy Act that we hope the next Congress will pass. Then, this has to be followed by the implementing units, including the LGUs. It is an important basis for LGUs that if they think about truck ban, they have to bear in mind that transport is the heart of the urban economy,” he said at the sideline of a national stakeholders’ consultation workshop.

Such rule is expected to help address concerns of exporters who have been advocating for the lifting of the truck ban and number coding scheme as these affect the speedy delivery of goods, particularly food items.

The Metro Manila Development Authority (MMDA) reiterated last year its solid position that lifting such schemes was not possible, as its priority was to decongest Metro Manila traffic.

Assistant team leader George Esguerra, for his part, said a national transport plan which key stakeholders are formulating also supports trade facilitation in the country.

Esguerra pointed out that the transport policy framework covers policy directions and specific regulatory concerns of the sector.

He particularly cited the proposed single shipment document system. This shall cover issues confronting shippers and maritime firms on the different types of documents for shipment.

“And since the country has signed the ASEAN framework agreement on multi-modal transport, it is logical that the country now starts moving towards a single shipment document. We have provided firm recommendations to the government on this area, as it addresses the policy matters on trade facilitation,” he said. -- Danielle Venz, PHILEXPORT News and Features <--back

5. Effective actions to create climate-smart world urged

Developing nations, including the Philippines, have been urged to undertake effective actions to reduce greenhouse gas emissions to address climate change which impacts on their economic growth.

The recommendation was highlighted in the World Bank published World Development Report (WDR) 2010 which estimated that these countries would bear 75 to 80 percent of the costs of damages caused by the changing climate.

“Economic growth alone is unlikely to be fast or equitable enough to counter threats from climate change, particularly if it remains carbon intensive and accelerates global warming,” it noted.

“An examination of year-to-year variations in temperature (relative to the country’s average) shows that anomalously warm years reduce both the current level and subsequent growth rate of GDP (gross domestic product) in developing countries,” the Report said.

The WDR thus asked affected nations to “act differently” to create a climate-smart world.

t cited the need to radically transform the world’s energy systems so that global emissions drop by 50 to 80 percent.

“Infrastructure must be built to withstand new extremes. To feed three billion more people without further threatening already stressed ecosystems, agricultural productivity and efficiency of water use must improve,” the report stressed.

Countries were also asked to implement robust economic and social strategies that take into account increased uncertainty and those that enhance adaptation to a variety of climate futures.

WB climate change specialist Alexander Lotsch said countries should manage competing demands for land and water.

“Climate change will depress agricultural yields… and efforts to mitigate climate change will put more pressure on land,” he said.

Lotsch said agricultural production has also to be raised rapidly through faster adoption of technologies that increase yields.

Moreover, the WDR advised climate change-affected countries to work together address the problem, with high-income nations taking aggressive action to reduce their own emissions.

“That would free some “pollution space” for developing countries, but more importantly, it would stimulate innovation and the demand for new technologies so they can be rapidly scaled up. It would also help create a sufficiently large and stable carbon market,” it reasoned.

The Report pointed out that national and international support is crucial to protect the most vulnerable through social assistance programs, to develop international risk-sharing arrangements, and to promote the exchange of knowledge, technology and information. -- Danielle Venz, PHILEXPORT News and Features <--back

6. Product, market diversification key to achieving export revenue growth

Furniture exporters will continue to diversify into new product lines and target non-traditional markets to survive market competition and attain a 20-percent revenue growth this year.

Emmanuel P. Padiernos, vice president for market development of Chamber of Furniture Industries of the Philippines, said some industry players have diversified into the local market to sustain operations, citing the growing construction and tourism industries which need furniture items.

Likewise, Padiernos said they will continue organizing trade or selling missions abroad to gain more buyers.

He also expressed optimism that international buyers will come and book orders, particularly during the Philippine furniture show slated next month here.

“And now is the time to develop new products, designs and technologies for us to become more competitive. So when the economy turns around, we have new products to show to the buyers and the world,” he stressed.

Padiernos said export revenues of the furniture industry were projected to reach around $270 million in 2010 from last year’s estimated more than $250 million.

Roberto Locsin, general manager of Locsin International, said they have already expanded to other raw materials for outdoor furniture items which were acceptable both to their middle and high-end markets.

But Locsin said they are keeping most of their indigenous raw materials like rattan, sea grass, abaca and handmade paper.

He noted that aside from Europe and United States, his company is also setting its sights on new markets like South America, Eastern Europe and other Asian countries.

“Our traditional buyers are also coming back. And we are catering to the local market because it also helps our business,” he added.

Woodcrafts and furniture were the country’s fifth biggest dollar earners in December 2009, posting $68.16 million. Top exports also included electronic products, articles of apparel and clothing accessories, coconut oil, and ignition wiring set and other wiring sets used in vehicles, aircrafts and ships.

Total merchandise exports during the month rose by 23.6 percent year-on-year reaching $3.3 billion. This was the highest recorded growth since the 27.7-percent growth in March 2006. -- Danielle Venz, PHILEXPORT News and Features <--back