Electronics sector sees exports hitting $50 billion

MANILA, Philippines – The electronics industry is expecting exports to hit $50 billion in six years and investments to reach $2 billion in 2011 from only $1 billion this year.

“We will double up in the coming years. We have finished the roadmap and we will hit $50 billion in exports by 2016,” Semiconductors and Electronics Industry of the Philippines (SEIPI) President Ernesto Santiago said in an interview with reporters.

Electronics exports for this year is expected to hit $28 billion. This will represent a 27-percent increase from last year’s figure of $22 billion.

Santiago said that the growth will happen despite the strengthening of the peso against the dollar.

Santiago said that they have already presented the electronics exports roadmap to President Aquino last Friday.

In order to achieve the $50-billion target by 2016, Santiago said that four things must happen.

First, he said firms must be able to increase their capacity. He said this can be done through an increase in investments. Investments in the electronics sector for the first 10 months of the year went up by 84 percent when compared to the same period a year ago. From January to October 2010, investments stood at $734 million from $400 million a year ago.

This year, the investment target for the sector is $1 billion. Santiago said that this is achievable even if the industry usually slows down during the latter part of the year. For next year, Santiago said investments will double to $2 billion.

Second, he said the government must be able to bring down the cost of electricity. High electricity cost has always been cited by businessmen  as one of the major deterrents for investing in the country.

The third, Santiago said, is the technology roadmap. He said that the government must support the solar power initiatives to the next level.

The fourth is the business environment. Santiago said that the government must make the country a conducive place for business by clearing up the peace and order issues. –Ma. Elisa P. Osorio (The Philippine Star)