Electronics recovery seen in 2014
The electronics sector sees a recovery next year with a projected 5 percent growth in exports from a 10-12 percent decline this year, said the Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI).
SEIPI President Dan Lachica said that year 2013 would still remain in the negative territory with an expected 5 percent decline in exports but 2014 will be a recovery year.
“We will probably close 2013 with exports of between $20 billion to $21 billion, which is 5 percent lower than 2012,” said Lachica adding that 2013 was a carry-over of the previous year, thus it was absorbing the remaining unsold inventories of 2012.
According to Lachica, the growth in 2014 will be supported by the continuing increase in automotive and consumer electronics products. Exports of the semiconductor segment would still remain flat, but exports of telecommunications products (items that are use for transporting electronic signals) are expected to make significant strides in 2014.
As of October this year, reduction in the exports of the semiconductor sector was at 9.3 percent while the electronics data processing at 7.3 percent and the control and instrument items at 14.5 percent.
Likewise, exports of telco products declined by 35.7 percent, communication/radar items by 24.4 percent, and medical/industrial instruments by 23.4 percent.
Growth in 2014 will also be supported by the steady recovery in the US economy and some countries of the EU. Japan’s economy is also on an impressive growth path.
“We expect to see recovery in 2014, but not to the point that we are really bullish because this is not yet a double-digit growth, so we are not quite there yet,” he noted.
With a 5 percent growth in the electronics exports in 2014, this industry is also expected to remain the country’s single biggest export sector with 40 percent share of total exports.
Of the total $45.1-billion Philippine exports in the January-October this year, the electronics industry contributed $18 billion, lower than the $19.5-billion industry exports in the same period in 2012.
Thus, Lachica said there is no need to revise its projection under the planned new Philippine Exports Development Plan.