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Philippines sees lower electronics export growth at 0-4%

Posted: 03 Sep 2015 ?? ?Print Version ?Bookmark and Share

Keywords:electronics? export? GDP? manufacturing?

Electronics export from the Philippines could possibly not grow this year as major trading partners post lower demand, according to an electronics industry group.

The Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) cut anew its export growth forecast for 2015 from the 3-5 per cent estimate announced in July to anywhere between 0 per cent and 4 per cent, Reuters reported. The original projection released earlier this year was 5-7 per cent growth.

SEIPI President Danilo C. Lachica told Reuters that the lower growth forecast is due to the weak global economy led by China. Also, both the United States and Japan have not recovered yet.

The latest SEIPI data show receipts from the country's outbound electronics shipment growing 4 per cent annually to $13.353 billion last semester. Last year, the country's electronics export earnings rose 9.02 per cent to $61.81 billion, making it to the industry group's projection of 7-11 per cent.

China, the Philippines' third-largest export market, experienced a slump recently that also pulled many Asian economies reliant on exports to the second-biggest economy of the world.

While electronics exports constitute about 40 per cent of the Philippines' total shipments of goods, SEIPI values its members' foreign sales make up almost a third to gross domestic product (GDP), Business World noted. This means that the weaker growth forecast may have negative effects to the country's overall economic growth.

The government is aiming for a 7-8 per cent GDP growth this year and in 2016. However, Economic Planning Secretary Arsenio M. Balisacan said recently that a 6-6.5 per cent growth in 2015 is more realistic after announcing a 5.3 per cent rise for the second quarter. Other factors that might affect the economy include risks from an El Ni?o weather pattern and slow-moving exports.

SEIPI is composed of more than 200 semiconductors and electronics manufacturers, which include units of Texas Instruments and Samsung Electronics.


Another Southeast Asian country also experienced contraction in electronics manufacturing.

The Economic Development Board of Singapore reported that the country's manufacturing sector fell year-on-year for the sixth straight month due to the low output in electronics, as well as in the pharmaceuticals and rigs clusters.

The electronics manufacturing sector fell 5.8 per cent year-on-year in July with the semiconductors and computer peripherals segment registering weak output. However, not everything is on the down side as the electronics modules and components and data storage segments recorded output growth.

Taken as a whole, the electronics cluster logged a 2.3 per cent drop in its output from January to July compared to the same period last year.

- Stephen Padilla

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