Electronics performed better than expected with $30-B exports

THE electronics industry performed better than expected in 2010, with the full-year exports believed to have exceeded $30 billion from only $22.2 billion in 2009, or a 35.1-percent growth that exceeded forecasts.

In terms of investments, the industry is seen to have attracted more than $1.3 billion in fresh capital for 2010, more than doubling the $480 million recorded in 2009.

“The industry has once again attained the billion-dollar level of direct foreign investments it last experienced in the years 2007 and 2000. These investments are coming from expansions of existing companies with base of operations here and from new industry entrants,” Ernie Santiago, president of the Semiconductor and Electronics Industries in the Philippines Inc. (Seipi), reported.

And for 2011, Santiago said Seipi sees a 10-percent growth in terms of exports.

He said the numbers that were reported to Seipi for the previous year were better than expected.

For exports, for instance, Santiago said the industry initially projected a 30-percent growth for 2010.

“But statistics show that for the first 10 months, the industry was still growing by 46 percent, indicating a strong start and encouraging finish.”

He said the huge January-to-September 2010 growth could be mainly attributed to the industry’s weak performance in the same period last year.

But while export growth slowed in the last quarter of 2010, Santiago said values were still in the positive territory in the late autumn, “and indeed may soon be leveling out.”

“Our normal consumer electronics-driven global holiday ‘busy season’ has ended, but end months of 2010 are still enjoying expansionary times,” Santiago said.

The industry, he said, is still bullish for 2011 and believes that the electronics sector will continue to be the driver of growth of Philippines exports.

“No global electronics ‘crash’ appears to be looming for early 2011,” he said. –Max V. de Leon / Reporter, Businessmirror