IMPROVEMENT IN EXPORTS OF SEMICONDUCTORS TO BE SEEN DESPITE DECLINE IN JANUARY 2013 – NEDA

MANILA—Improvement is expected for the growth of semiconductor exports despite its 23.2 percent contraction in January 2013, according to the National Economic and Development Authority (NEDA).

“The annual gain of worldwide chip sales recorded suggests an improvement for the industry for the year,” said Socioeconomic Planning Secretary Arsenio M. Balisacan.

Based on the report of the Semiconductor Industry Association (SIA), worldwide chip sales recorded an annual gain of 3.8 percent.

“Moreover, more orders for semiconductor equipment may be expected as indicated by the upward trend of book-to-bill ratios in major electronics production hubs like the United States (US) and Japan,” the Cabinet official added.

The Philippines’ lower overseas sales of semiconductors (-23.2%), electronic data processing (-72.7%), copper metal (-78.9%), communication radar (-63.7%), consumer electronics     (-53.4%) and machinery and transport equipment (-3.4%) mainly accounted for the contraction of manufactures (-5.8%), which eventually declined total export performance by 2.7 percent during the period.

“The decline in semiconductors exports may be partly attributed to lower value of outward shipments to Singapore, the People’ Republic of China (PRC), the US and Japan, which accounted for more than half (51.6%) of the country’s semiconductor revenues,” said Balisacan, who is also NEDA Director-General. 

Other manufactured exports that also declined year-on-year during the period were garments (-41.7%), machinery and transport equipment (-3.4%), miscellaneous manufactures (-13.9%), textile yarns/fabrics (-9.2%), iron and steel (-6.1%) and baby carriage and toys (-6.1%).

However, total agro-based exports were up by 33.3 percent (US$388.9 million) in January 2013 from US$291.7 million and 12.4 percent contraction in the same month last year.

This was driven by higher exports of bananas (151.7%), coconut oil (27.3%), copra meal/cake (380.8%), centrifugal and refined sugar (28.9%), natural rubber (222.3%), molasses (83.1%), pineapple concentrates (181.8%), pineapple juice (26.2%), fish products (1.9%) and ramie fibers (100.0%).

“It should be noted that despite the damage caused by Typhoon Pablo in major banana plantations during the latter part of 2012, exports of bananas sustained robust growth in January 2013,” he said.

Also, petroleum exports grew by 53.9 percent in January 2013 to US$72.8 million from US$47.3 million in the same period in 2012 as volume of petroleum shipments registered a 70.4 percent year-on-year growth. 

In terms of destination of Philippine exports, Japan was the top market accounting for 19.2 percent of total receipts. Following Japan were the Republic of Korea with a 14.1 percent share, the US (13.0%), the PRC (10.5%), and Hong Kong (8.2%).

M.R. No. 2013-031                                                                                

12 March 2013