NEDA URGES POLICY SUPPORT TO ADDRESS DIVERSIFICATION AND COMPETITIVENESS ISSUES
MANILA— Following the release of exports figures for January 2012, the National Economic and Development Authority (NEDA) said government should intensify policy support to address diversification and competitiveness issues in the exports sector.
“The government should promote other industries with potential comparative advantage such as food, garments, coconut and motor vehicles and parts. These industries were identified in the Philippine Export Development Plan (PEDP),” said NEDA Deputy Director General Margarita R. Songco, who is currently Officer-in-Charge of NEDA while Secretary Cayetano W. Paderanga, Jr. is on official travel.
Songco stressed that intensified policy support to non-electronics industries should be pursued given that non-electronics exports account for less than half of total exports. To promote these industries, she said, government should launch information campaigns to encourage the private sector to bank on trade agreements, undertake business matching activities to link domestic suppliers and foreign buyers as well as engage in market intelligence to identify opportunities and consumption patterns of trade partners and thus increase market presence.
“The government should also continue to improve infrastructure and logistics, lower power and communication costs, and offer travel and shipment options,” Songco emphasized.
The NEDA official said improving infrastructure requires big investments which could be done by strengthening public-private partnership. In addition, measures to enhance productivity and further human resource and skills development must be undertaken.
“We need to benchmark the industry’s skill needs against competitor countries and close possible skill gaps through increased expenditures in training and close monitoring of training achievements,” she said adding that reviewing wage structures to remain globally competitive might also be considered.
The National Statistics Office (NSO) reported that merchandise exports grew by 3.0 percent to US$4.1 billion in January 2012 from last year’s US$4.0 billion, breaking the eight consecutive months of contraction since May 2011.
This placed the Philippines as the strongest performer among its Asian neighbors in terms of exports growth. Exports contracted in many countries in the region in January 2012. China (-0.5), Malaysia (-1.3), Japan (-2.6), Vietnam (-3.0), Singapore (-3.3), Korea (-7.0), Hong Kong (-8.4), and Taiwan (-8.4) all posted negative year-on-year growth rate.
In terms of market destination of exports, Japan remained as the top overseas market for Philippine products in January 2012 with a 17.2-percent share. Second is the United States with a 16.0-percent share followed by China (14.3%), Hong Kong (8.7%) and Singapore (8.2%).
MR No. 2012-020
, March 14, 2012
