Home >> Daily News >> Philippines News >> Trade >> Philippines expects electronics shipments to bounce back in 2010
|11 December 2009
Philippines expects electronics shipments to bounce back in 2010
Sales of the Philippines’ top export - electronic components - will likely recover earlier than expected based on strong orders received for the first quarter of 2010, GMA news quoted a leader of an industry group as saying.
Export sales are expected to grow by as much as 20 percent next year, better than an initial 10 percent estimate, Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) Chairman Arthur J. Young said late on Wednesday.
Sales for 2009, however, are still projected to drop by roughly 20 percent, Young said.
Based on official data, the new outlook means 2010 sales posting a return to the $21.047-billion performance seen in 2008 after falling by a fifth to $18.837 billion this year.
"By 2010, it could bounce back. We had projected this [recovery to occur] towards 2011 ... but orders for the first quarter already look strong when they are usually flat or down," Young said in a telephone interview.
"We think you can see a nice growth next year, higher than 10 percent based on bookings for January to March looking pretty solid. The growth will be in the high ‘teens’ to maybe 20 percent."
Young maintained earlier projections for 2009: a sales decline of around 20-23 percent.
"I still believe the fourth quarter will be better than [the same quarter last year]," he added.
Semiconductor export sales have so far fallen by 30.87 percent to $12.841 billion as of October from yearago levels, official data show. It accounted for 41 percent of total merchandise export sales in that period.
University of Asia and the Pacific economist Victor A. Abola backed the industry group’s 2010 outlook.
"I tend to agree. More than the recovery in the US market which will continue, end-consumer demand [for electronics] will be quite robust in China and East Asia, India, Brazil and Russia," Abola said yesterday.
Sergio R. Ortiz-Luis, Jr., president of the Philippine Exporters Confederation, Inc. (Philexport), likewise noted yesterday that merchandise exporters in general were seeing a healthy number of orders for early 2010.
But he said Philexport was so far maintaining its 10 percent growth outlook for sales of merchandise and services. Exporters are watching the strengthening of peso which could make exports more expensive to foreign markets, he added.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below