On back of strong investments
MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) has revised its growth targets this year to 11-11-11 percent for investments, exports and employment on back of strong growth in the past months.
PEZA Director-General Lilia B. De Lima told reporters they have decided to adjust the target after hitting P113.603 billion in investment approvals in the January-August period this year or 60 percent higher than the P70.958 billion a year ago.
The investment generation represented the project cost of a total of 426 export-oriented projects. The number of projects, De Lima said, was 28 percent higher than 332 projects registered in the same January-August period last year.
These projects are expected to generate $23.941 billion in annual exports once they go into full commercial operation. The exports projection was 2 percent higher than the $23.394 billion estimated exports from the 332 projects approved last year.
Employment in PEZA also increased 14 percent to 808,735 in the first eight months of the year from 711,839 a year ago.
Originally, PEZA had set a conservative 10-10-10 percent growth targets for 2011 for investments, jobs and exports over 2010.
In setting the original growth targets, De Lima said they have to tame their projections because they were coming from a very high growth base in 2010 of P204.394 billion or 16.55 percent higher than 2009.
PEZA’s total direct employment in 2010 was also over 20 percent to 728,318 from 606,350 jobs in 2009.
In terms of exports, the agency reported a 24.05 percent increase in export sales to $36.996 billion for the January-November period of 2010 year compared to the full year 2009 exports of $29.824 billion.
According to De Lima, investments growth driver would still be electronics and IT. The country’s booming tourism sector is also expected to give a boost to the tourism ecozones while investments in agrizones are also expected to contribute in 2011.
PEZA which grants tax and fiscal incentives to export-oriented enterprises have a high realization rate of 98 percent, meaning most of the projects it registered have gone into full commercial operations and fulfilled their export and employment generation commitments.
It has a realization rate of 98 percent of all its approved projects.
PEZA grants a maximum of eight years of income tax holiday to qualified investors, zero duty on capital equipment importation and five percent tax on gross sales in lieu of all other national taxes, among others.
Most of its locators are engaged in electronics product manufacturing operations for the export market. Japanese companies account for the bulk of its registered enterprises. (BCM)
Tuesday, 13 September 2011
Tuesday, 22 March 2011
REVENUE AT $52B
MANILA, Philippines – The Export Development Council (EDC) has revealed that exports in 2010 broke all previous records by staging a spectacular come-back, reflecting the recovery of major markets and posting the highest ever export revenues since 11 years ago.
In its preliminary assessment, EDC noted a major change in the sources of growth for the sale of Philippine goods - from its old trading partners in Europe and the United States to closer countries in the Asian region.
The report described as unprecedented the 33.7 percent growth in export revenues of $51.39 billion last year, breaching the peak record in 2007 at $50.27 billion. It was also the highest in the past 11 years.
"The growth was a reflection of the recovery of the economies of (some of the) Philippines' major markets, notably the United States, Japan, Hong Kong and the continued growth of China," the report said.
Banner holder in overturning a two-year losing streak into a winning sector in only a year was the electronics industry, which growth jumped by 44.1 percent over the previous year record with $31.08 in earnings.
Behind the spectacular change of fortune, the Semiconductor and Electronics Industries in the Philippines (SEIPI) reported to the EDC that the recovery was fuelled by heavy investments by individual manufacturers during the year under review.
SEIPI member companies injected a total of $2.32 billion in new technologies and production facilities last year, also a record high in the industry's history.
Electronics products make up the country's top exports, contributing more than half (59.89%) of total export earnings last year.
Also staging an impressive performance was the garments and textile industry, which, after many years of stagnation and decline, staged an 11.9 percent growth in 2010 on sales of $1.68 billion.
The third billion dollar industry, food, made an eleventh hour dash last December but its double digit growth that month was not enough to cover minimal growth in previous months. (EHL)
Tuesday, 8 March 2011
MANILA, Philippines - Exports growth from Clark Freeport Zone is expected to accelerate to $6 to $7 billion in the next three years versus its roadmap target of $2 billion exports by 2014 following the start of operation of two giant electronics firms in the freeport.
Clark Development Corp. president Benigno N. Ricafort told reporters at the sidelines of the recent forum on “Philippine Public-Private Partnership: Rising to the Challenge” in Makati that exports of TI Philippines and Phoenix Semiconductor of the Philippines, which is owned by the Samsung Group, exports commitments of $3 billion each annually once they come into full commercial operation.
TI has opened the first phase of its operation and has started initial exports. Phoenix, which is owned by Korea’s electronics giant Samsung, expects exports to hit between $300 million to $400 million by end this year.
“So, easily Clark could hit annual exports of $6-7 billion in 36 to 40 months or three years from now,” Ricarfort said.
Last year, Clark freeport exported $1.34 billion exports.
In terms of investments, Ricafort said that aside from Yokohama’s $600 million tire manufacturing project they have other project proponents.
“We are working on several projects pharmaceutical and support companies for semiconductor manufacturing,” Ricafort said.
. He said the committed contracts alone are expected to bring in around $1 billion already including that of Yokohama.
“It takes time to negotiate and investors would like to keep negotiations under wraps,” Ricafort said.
Investments are also expected to hit $1 billion this year largely due to the $600 million investments of Yokohoma Tire Philippines Inc. for a tire manufacturing facility in the freeport zone. (BCM)
Friday, 11 February 2011
JENNIFER A. NG
MERCHANDISE exports for the whole of 2010 breached the $50-billion mark on the back of the 40.11-percent increase in the shipments of electronic products, rising 33.7 percent to $51.39 billion, from $38.43 billion in 2009, the National Statistics Office (NSO) said on Thursday. This exceeded the government target of increasing shipments 15 percent.
The contributions of electronic products to the total merchandise exports were $31.07 billion, or 40.11 percent higher in 2009. Other top performers in 2010 were articles of clothing and apparel, coconut oil, woodcraft and furniture, and metal components.
Articles of clothing apparel went up 11.57 percent to $1.7 billion, while receipts from coconut oil were up 112 percent to $1.26 billion.
“If you will factor in the revenues generated from the services sector or those from the business-process outsourcing sector, total exports would be higher. We estimate that revenues from the services sector reached $8 billion in 2010,” said Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis in a telephone
He said the last time the country’s total merchandise exports breached the $50-billion mark, also on the back of the strong performance of electronic products, was in 2007, just before the financial crisis hit major markets for Philippine-made products.
University of the Philippines economist Benjamin Diokno said, however, that while merchandise export performance exceeded expectations, it is unlikely such will be repeated in 2011. “We’re not yet out of the deep hole. For one, our trading partners are currently in what you call fiscal austerity mode.”
At best, he added, merchandise exports for 2011 will post a 10-percent increase.
For the whole of 2010, the top three destinations for Philippine-made products were Japan, the United States and Singapore. Japan was the top buyer purchasing almost $7.8 billion.
Friday, 10 September 2010
By Cris Larano (Dow Jones)
Philippine July exports surprised on the upside, rising 36% from a year earlier and extending a recovery that started last November on the back of a rebound in electronic shipments--a development that bodes well for sustained robust growth of the domestic economy, at least into the third quarter.
Economists, however, note that easing sales of personal computers abroad and a slowdown in June imports--primarily raw materials for export--suggest growth in Philippine exports could slow in the months ahead.
The National Statistics Office reported Thursday that exports in July increased to $4.50 billion, from $3.31 billion in July 2009, but are down from June's $4.56 billion --the highest single-month tally since October 2007 when exports totaled $4.66 billion.
Shipments of electronic products, the country's main export item, rose 49% in July to $2.86 billion, from $1.92 billion in the year-earlier period, but were just shy of the $2.90 billion posted in June.
Double-digit growth was also reported in July for exports of copper cathodes, coconut oil, woodcrafts, ignition wiring sets and metal components.
In the seven months to July, exports totaled $28.22 billion, up 37% from the $20.54 billion recorded in the year-earlier period. "July exports surprised on the upside, with the main thrust stemming from electronics shipments," said Radhika Rao, an economist at Forecast Pte Ltd.
"While it is too early for the pullback in June imports to feed through to the export channel, nonetheless in the light of other leading indicators for the electronics sector, we expect exports to remain supported in the second half with the interim softness in raw materials and intermediate demand attributable to inventory adjustments and fresh orders being fulfilled from existing stocks," she added.
She said export growth of over 25% in the second half is still possible, even with the slowdown.
Wednesday, 12 May 2010
Daniel Anne B. Nepomuceno
PHILIPPINE MERCHANDISE exports grew 43.7% in March, fueled mainly by continued strong demand from major destinations.
The growth was the strongest annual jump recorded since 1981 with $4.18 billion worth of goods shipped for the month.
Monthly export figures further bolstered signs of global recovery, with outward shipments rising by 17% month-on-month in March, reversing the 0.3% month-on-month contraction recorded in February.
Shipments of electronic products, which accounted for more than 57.9% of the total export revenue for the month, jumped 49.1% in March to $2.42 billion, a rebound from the -33.8% recorded during the same period last year.
Last week, the government upgraded its full-year forecast for merchandise exports to 18%, give or take one percentage point, from a previous range of 10% to 14%.
The US was the top export market for the month, with receipts amounting to $703.32 million, 39.8% higher year-on-year.
Completing the top three were Japan and China, with export earnings growing by 52.8% and 58.2%, respectively.
Tuesday, 27 April 2010
ONE of the most interesting stories that Filipino first-timers to the United States like to share is going shopping, especially in those outlets in the suburbs where the best brands may be bought at bargain prices, and picking out clothes with the pride of someone eagerly anticipating being seen in them.
On one such trip, one journalist once recalled a first-time sojourn to Secaucus outlet in New Jersey and picking out several stylish Geoffrey Beene shirts, and then being taken aback, but pleasantly surprised, by the label: “Tailored in the Philippines.”
Of course, the reactions to such tags may vary depending on the mindset of the shopper. Some tourists get disappointed looking for something indigenous to a place, say, Australia, and finding 8 out of 10 souvenir items being made in China. That’s globalization for you. But back to the Geoffrey Beene shirts. As many Filipino tourists and shoppers have discovered through the years, a good chunk of the branded items, especially clothes, that they’d dreamt of buying in America were fashioned or crafted by their countrymen’s hands. Not surprising, considering the presence of so many export-processing zones here.
Now, with the recent elevation to the US Congress of the proposed Save Our Industries (SAVE) Act, labor leader and former senator Ernesto Herrera sees great economic opportunity in the sense that the bill enables the freer entry of Philippine-made garments into the highly lucrative US market.
“We are counting on the next Philippine president to move fast so that the US bill may hopefully be enacted before the November midterm elections there,” said Herrera, secretary-general of the Trade Union Congress of the Philippines, in a statement at the weekend.
While the bill is envisioned to “save” ailing American textile producers, it would also benefit the Philippines’ labor-intensive garments industry in a big way, according to Herrera, former chairman of the Senate Committee on Labor, Employment and Human-Resources Development.
He said the bill will “allow Philippine-made garments to enter the US market with considerably fewer restrictions, as long as the clothes use American textiles,” Herrera said.
He said ready to wear (RTW) clothes made in the Philippines using American textiles would enjoy definite advantages such as lower duties, thus making them even more price-competitive when they reach US stores.
“This will surely encourage more apparel makers from the US to build new factories here, bring in American textiles, harness skilled Filipino workers to design, cut and sew the garments, and then re-export the RTW clothes back to the US,” Herrera said. This is a throwback to the 1990s, when many such US firms were tapping factories in the Philippines to fashion the garments sold in US stores, including, yes, the Geoffrey Beene line then.
Per Herrera’s estimates, the local garments industry, now employing some 150,000 Filipinos, could easily add 100,000 new jobs once the US bill is enacted. He noted that local contract manufacturers for American apparel makers would also benefit, Herrera said.
“The Philippines already has a solid reputation when it comes to the manufacture of garments meant for American stores, particularly the high-end ones,” according to Herrera.
Such great economic potential, though, could be lost if the next administration after May 10 fumbles and fails to lobby the US Congress for the SAVE bill. Here’s one more vital addition to the proposed agenda of the new president, whoever he may be. With no pun intended for those great Filipino tailors of global brands, it seems this next president has his work cut out for him on this issue, at least.
Wednesday, 14 April 2010
D. A. B. Nepomuceno
PHILIPPINE MERCHANDISE exports surged 42.3% in February from a year ago to record their fourth consecutive month of growth since November 2009, as demand from key foreign markets continued to strengthen, the government reported yesterday.
The data prompted the country’s main exporter chamber and the group of semiconductor and electronics firms to consider upgrading their growth projections for the year.
Some $3.57 billion worth of goods were shipped out of the country, a hefty improvement from the $2.51 billion recorded during the same period last year, according to the National Statistics Office (NSO).
Japan remained the largest export market for the second straight month in February, with shipments accounting for 17.6% of total exports and rising 55.4%. The US and Singapore, meanwhile, ranked second and third in terms of being the largest export destinations, while demand from other key markets also got a lift.
On a month-on-month basis, however, exports contracted slightly by 0.4%, leading one private sector economist to caution against euphoria. Industry players and government planners, however, remained upbeat.
"The February figure is reflective of global economic recovery," acting Socioeconomic Planning Secretary Augusto B. Santos said in a text message.
"It (February figure) is consistent with the uptrend in global market demand," Dennis M. Arroyo, National Economic and Development Authority director for national policy and planning, said in a phone interview.
Sergio R. Ortiz-Luis, Jr., president of the Philippine Exporters Confederation, Inc. (Philexport), said the results topped industry expectations. "That is a happy surprise, I thought we’ll be seeing 30% growth only in February," he said.
Mr. Ortiz-Luis pointed out that the double-digit growth in February, which followed January’s 42.5%, "points to the fact that demand in global market is really back."
The weaker month-on-month numbers were not an indication that exports could still contract, he added.
Electronics, which accounted for 58.1% of total exports in February at $2.07 billion, sustained double-digit gains at 53.4%, a turnaround from the 45% contraction recorded a year ago.
Month on month, electronics rose 1.9%, though slower than January’s monthly gain of 8.1%.
"Demand for electronic products is strongerI think that the sector will have a good year this year," Arthur J. Young, Jr., chairman of the Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) said.
Mr. Young added that an upward revision to the industry’s current 15%-20% full-year growth forecast is likely.
The export sector’s sustained growth might also prompt Phil-export to recast its first-quarter and full-year growth projections, Mr. Ortiz-Luis said.
"For the first quarter, we are just looking at 20%-25% growth. However, stronger exports were recorded for the first two months and our forecast for the first quarter could be doubled," the industry official said.
"For the full year, I am now looking at 15%-20% growth in merchandise exports," Mr. Ortiz-Luis added, even as he clarifed that this was his personal view.
But Cid L. Terosa, an economist of the University of Asia and the Pacific, warned that global economic rebound is not yet in full swing. "The export sector needs to be cautious since the world economy has not fully recovered. Also, foreign exchange rate movements or the strengthening of the peso could upset the sustainability of recent gains in exports," he said.
The peso yesterday strengthened even further, closing at P44.675 to the US dollar from P44.740 last Monday, and averaging P44.729 from P44.746.
Thursday, 11 March 2010
By CRIS LARANO
The country’s exports surged in January, sustaining the double-digit rise that started in December, on a strong recovery in electronics shipments.
The National Statistics Office said Wednesday that exports in January rose 43 percent from the year-earlier to $3.58 billion, and expanded by 8.0 percent from the $3.31 billion in December.
In January last year, exports plunged 41 percent on year to $2.49 billion. Electronics products, the country's main export item, rose 51 percent from a year earlier to $2.03 billion in January, accounting for 57 percent of total exports for the month.
Other exports that showed strong year-on-year gains were coconut oil, ignition wiring sets for vehicles and aircraft, petroleum products and metal components.
The export recovery bodes well for the wider economy, possibly countervailing the risk posed by the El Niño-induced drought to the expected strong rebound this year. The government has warned that farm output, which accounts for a fifth of the country's gross domestic product, may contract in the first quarter due to the drought.
"What it (export recovery) does is help offset the negative impact the El Nino on the economy," said Luz Lorenzo, economist and market strategist at ATR-Kim Eng Securities. "We can have respectable (economic) growth despite the drought because of export recovery."
Japan was the main export market for the Philippines in January, accounting for $579.9 million of total sales for the month, up 50 percent from the $387.0 million total a year earlier.
The US was the next biggest market in January, with total exports at $574.9 million, up 26 percent from $456.9 million in the same period last year. Germany, China and Singapore, which complete the top five export markets for the Philippines in January, all recorded strong growth from the year-earlier period.
Saturday, 13 February 2010
THE growth in exports for the second month in a row augurs well for the Philippine economy, as it slowly recovers from the effects of the worst global slump in decades. Our economy luckily escaped experiencing a recession. This has placed us among the positively rated dozen of countries (mostly Asian) that experts see as the economies that will lead the world into full recovery.
This week, the National Statistics Office (NSO) announced that December exports grew by double digits, up from the single digit increase the month before.
The December growth was the fastest in nearly four years, led by the double-digit expansion in electronics shipments abroad.
The strong showing by the electronics sector, which accounts for at least 60 percent of Philippine merchandise sales abroad, validates the improvement in the book-to-bill ratio, which had shown earlier that orders outpaced deliveries as early as November last year.
Besides electronics, transport equipment—particularly ignition wiring sets—also surged by double digits last December, pointing to the possible recovery in the Philippines’ auto parts industry.
Indeed, the government had announced that imports last November woke up from a 14-month slide, indicating that exports going forward may turn for the better.
Another sign of a possible recovery in external trade is the improvement in the US’ purchases of Philippine-made goods. The US after all is our biggest export market.
Industry sector also positive
The rebound in exports also coincides with the positive showing of the industry sector. The NSO earlier said that factory output grew last November, rousing from a 12-month contraction.
Similarly, the average capacity utilization of local factories picked up, an indication that manufacturers are switching on previously idled machinery.
Industries responsible for the up tick in factory output were miscellaneous manufactures, basic metals, tobacco products, electrical machinery, petroleum products, non-metallic mineral products, rubber and plastic products and transport equipment.
The stock market welcomed the December exports figure, breaking several sessions of losses stemming from Europe’s fiscal woes.
But it remains to be seen whether the recovery in the export sector would be sustained, and if so, whether it would be faster than earlier expected.
Before the release of the December exports figures, many pundits were expecting domestic factors—remittance-led household and election-related spending—to prop up the Philippine economy in the first half.
This explains the Bangko Sentral ng Pilipinas’ (BSP) reluctance to pursue an exit from the liquidity enhancing measures it put in place at the height of the global financial turmoil.
So far, the BSP has wound up its generous rediscounting facility. Many observers expect a hike in bank reserve requirements to follow, especially after the surprise inflation last month showing price increases averaged below the central bank’s forecast.
Monetary authorities, however, are signaling that any further step to terminate its package of crisis measures may have to wait, pending the turnout of external developments such as the fiscal crisis of a growing number of European economies.
Caution should prevail
We agree that caution should prevail, as the global recovery is clearly not yet firmly underway.
The Arroyo administration’s passage of the 2010 national budget—with provisions for continued pump priming—indicates the government’s readiness to keep up spending despite the bullish outlook for personal consumption expenditures.
But fiscal authorities have to step up borrowings amid the uncertain outlook for tax revenues, especially since the election season would discourage new tax measures.
The El Niño dry spell obviously would dampen this year’s farm output, which accounts for a fifth of the Philippine economy. Likewise, the near capacity situation in the power sector would temper economic expansion.
In this regard, the government should complete the reforms mandated under the Electric Power Industry Reform Act, particularly the state’s divestment from the sector, to allow the free play of market forces, which is key to jump-starting private investment in additional capacity.
Economic recovery this year—the return to something like half of the 2006-2007 record-setting growth we enjoyed in 2006 and 2007—is far from guaranteed. A lot depends on the continued recuperation of the economies of our rich customer-countries.
The completion of our own pending reforms and initiatives is also just as essential. This in turn requires their insulation from the oncoming onslaught of partisan electoral activity.
Thursday, 11 February 2010
The country’s exports bounced back in December 2009 with a 23.6 percent growth to $3.304 billion compared to $2.675 billion in December 2008.
The National Statistics Office (NSO), however, noted that export earnings on a monthly basis declined by 11 percent from $3.712 billion in November 2009.
Total exports in 2009 also dropped by 21.9 percent from $49.078 billion to $38.327 billion registered during the same period in 2008.
Electronic products remained the country’s top export in December 2009 with total export revenue of $1.881 billion, up by 41 percent from $1.335 billion in December 2008.
Semiconductors which comprised 39.2 percent of the total exports amounted to $1.295 billion, an annual increase of 36.9 percent. Month-on-month, electronic products went down by 12.4 percent from $2.148 billion in November 2009.
Earnings from apparel dropped by 18 percent to $131.54 million from $159.96 million in December 2008.
Coconut oil posted total export earnings of $87.40 million in December 2009 rose by 14.4 percent from $76.40 million in December 2008.
Ignition wiring sets grew by 85.3 percent from its year ago level of $46.22 million. Furniture exports declined by 16.1 percent to $68.16 million from $81.25 million registered in December 2008.
The other top exports in December 2009 were metal components with export earnings of $47.41 million up by 21.1 percent; copper concentrates with $35.33 million in revenue, up by 739.2 percent, the highest increase among the top ten exports in December 2009; petroleum products recorded sales amounting to $32.00 million, up by 118.9 percent; and cathodes with export revenue of $26.89 million, down by 49.4 percent.
The US which comprised 19 percent of the total exports in December 2009 remained the country's top export market with revenue amounting to $627.86 million, up by 9.4 percent from $573.98 million recorded a year ago.
Japan was the second top market with export earnings of $507.46 million. up by 11 percent from $457.68 million reported in December 2008.
Tuesday, 13 October 2009
MANILA (PNA) – The Philippines’ free-on-board gold export rose to US$ 79.23 million in the first eight months this year, up 4,33 percent from US$ 76 million a year ago, according to National Statistics Office (NSO).
NSO preliminary data released Tuesday also show that export of chromium ore went up 3.69 percent to US$ 8.83 million from USD8.52 million.
Outbound gold and chromium ore shipments pushed to US$ 950.24 million the country's total receipts from exporting mineral products this year.
This is only nearly half of 2008’s US$ 1.79 billion mineral product export receipts as financial difficulties continued plaguing the international community, however.
NSO data also show that exports of other mineral product slid down during the period.
Shipment of copper concentrates reached US$ 64.66 million in the first eight months this year from US$ 98.11 million; copper metal with US$ 449.58 million from US$ 888.05 million; iron ore agglomerates with US$ 54.37 million from US$ 85.37 million; and other mineral products with US$ 293.51 million from US$ 636.32 million.
NSO reported no export data for nickel.
Total export earnings from mineral products went down 30.33 percent to US$ 24 billion during the first eight months of the year, from US$ 34.45 billion during the same period last year.
Outbound shipments of agro-based products also went down to US$ 1.35 billion from US.91 billion; forest products from US$ 23.35 billion to US$ 22.85 million; petroleum products from US$ 975.88 million to US$ 184.92 million; manufactures from US$ 28.71 billion to US$ 20.61 billion; and special transactions from US$ 1.04 billion to US$ 883.93 million. (PNA)
Monday, 8 June 2009
Paul Anthony A. Isla
COAL producer Semirara Mining Corp. has successfully entered the Thailand market during the first quarter of the year, helped by its new trading partners.
The Philippine company, now in its third year of doing business in the international market, scored a success in gaining access to Thailand, a new market for Semirara.
Semirara said new partnerships in coal trading have been forged that helped it clinched the Thai market, adding that coal traders Noble Energy and Coal Pulse were instrumental in cultivating Thailand as a buyer of Philippine coal.
In a disclosure to the Philippine Stock Exchange, Semirara said coal exports remained robust in the three months to March, despite a two-percent decline in delive-ries compared to a year earlier.
It noted that coal exports dropped to 443,101 metric tons (MT) 453,670 MT during the same comparable period.
Also, Semirara noted that Holcim Cement as a buyer is a significant marketing breakthrough. Holcim is one of the county’s biggest cement companies.
Semirara said sales to cement plants dropped to 148,777 MT during the period from 232,125 MT, and sales to other power plants dropped by 62 percent to 77,421 MT from 138,381 MT.
Total sales volume for the coal producer fell 4 percent to 1,078,344 MT from 1,120.962 MT.
The company earlier bared plans to export 2.5 million MT of coal to India and Thailand this year.
Semirara has targeted coal production to reach 5 million MT this year, said its marketing manager Cesar Villanueva.
Villanueva added that half of its production target is for export buyers, the other half for the domestic market.
Semirara’s local customers include Global Power, Mindanao’s coal plant owned by STEAG State Power and Aboitiz Group, Asia Pacific Energy Corp.—majority-owned by Formosa Heavy Industries Corp. of Taiwan—as well as cement plants and other companies.
Based in Semirara Island, Caluya, Antique, Semirara is into mining and exploration, developing and selling coal resources.
Saturday, 23 May 2009
MANILA (PND) --- Philippine exports in March 2009 increased by 15.9 percent over that of February with majority of commodity groups posting month-on-month growth, indicating an easing of the recession in the country’s foreign markets.
Merchandise exports in March 2009 amounted to $2.9 billion compared to $4.2 billion for the same period last year, but better than last February’s $2.5 billion.
The figure represents the sixth consecutive month of export contraction as all major commodity groups, except for forest products, posted significant year-on-year declines.
On a cumulative basis, export revenues for the first quarter of 2009 amounted to $7.9 billion, 36.8 percent lower that the same period in 2008.
The National Economic and Development Authority (NEDA) said in a memorandum to President Gloria Macapagal-Arroyo that the Philippines’ Asian neighbors likewise experienced slowing down of their exports decline in March.
Malaysia’s export decline eased to 15.6 percent in March (from 15.9 percent in February); Hong Kong, 20.5 percent in March (from 22.4 percent in February); Singapore, 21 percent (from 24 percent in February) and China, 17.1 percent (from 25.7percent in February).
Exports of electronics and machinery/transport equipment, two of the country’s major manufactured products grew by 19.9 percent and 6.3 percent, respectively even as garments exports declined by 7.6 percent from Feb. 2009.
The slight rebound in electronics exports for March compared to February followed global trends where global sales of semiconductors grew by 3.3 percent with demand stabilizing somewhat as reported by the Semiconductor Industry Association (SIA).
Sales in the Americas, Europe, and Asia Pacific grew by 5.1 percent, 3.1 percent and 7.8 percent, respectively. Sales in Japan, however, were sharply lower by 9.4 percent from Feb. 2009.
On the bright side, the “global semiconductor manufacturing industry is expected to take a breather in the second quarter, as utilization rises by 60 percent as reported by iSupply Inc., a market research company.
Majority of the country’s electronics exports for March went to China, the Netherlands, United States, Japan and Hong Kong.
Agro-based products exports grew by 8.1 percent in March; mineral products, 5.7 percent, and petroleum products, 7.8 percent. Growth rates of these commodity groups, however, are still in negative territory compared to March 2008.
Export receipts from forest products increased by 22.4 percent and 48.8 percent, for month-on-month and year-on-year, respectively.
The United States remained the biggest market for Philippine goods with 17.3 percent share of total revenues for March 2009, followed by Japan with 15.4 percent share. Other major export markets were China, 106 percent; Hong Kong, 9.4 percent and the Netherlands, 9.2 percent. The aggregated shipments to China, Hong Kong and Taiwan reached 23.3 percent of merchandise exports in March 2009.
Leading exports were semiconductors, electronics data processing (EDP) machines and garments which made up 65 percent of the total shipments to the five biggest export markets in March 2009.
Wednesday, 20 May 2009
KORONADAL CITY — Mindanao’s pineapple industry posted robust growth last year despite the global economic downturn, generating export sales of $352.3 million, official data showed.
Pineapple export sales last year were 42.17% more than the previous year’s $247.8 million, the Bureau of Agricultural Statistics said in a report released recently.
The United States and Japan, two of the countries affected by the global financial turmoil, bought at least 60% of the country’s pineapple exports in 2008. Japan took the bulk of fresh pineapple, while the US bought canned products.
The volume of exports reached 809,315 metric tons (MT) in 2008, up 37.36% from the previous year’s 589,206 MT.
Mindanao produces nearly 90% of the country’s pineapples, a large part of which comes from Northern Mindanao (Region 10) and Central Mindanao (Region 12 or Soccsksargen), specifically in the form of canned products.
Northern Mindanao is home to the pineapple farms of Del Monte Philippines, Inc., while Region 12 hosts Dole Philippines, Inc. (Dolefil).
The Davao Region also exports mostly fresh pineapple to Japan.
Pineapple production in 2008 rose by 9.6% to 2.2 million MT from 2 million MT the previous year. "The gain was attributed to area expansion in Northern Mindanao and Soccsksargen. Producers were encouraged by the increasing market demand," the report explained.
Area planted to pineapple rose to 58,000 hectares from 54,000 hectares in 2007. — RSS
Saturday, 16 May 2009
Firms at the Subic Freeport exported $359.45-million worth of goods in the first quarter, up 54.8% from year-ago levels, the Subic Bay Metropolitan Authority (SBMA) said in a statement on Friday.
The top 10 exporters of the freeport accounted for 92% or $332.33 million of export sales in that period.
"This makes us all the more confident that hard work on the part of the SBMA and the business locators here would enable us to pull through these hard times," the statement quoted SBMA Administrator and Chief Executive Officer Armand C. Arreza as saying.
Korean shipbuilder Hanjin Heavy Industries Co.-Philippines led the pack, with sales hitting $179.36 million.
The other nine leading exporters were manufacturers mostly of computers, appliances, and other machinery. They were:
- Hong Kong cell phone trader Lets Do Mobile Philippines, $57.43 million;
- Taiwanese computer maker Wistron Infocomm (Phils) Corp., $36.13 million;
- Japanese ATM-maker Hitachi Terminals, $16.46 million;
- Japanese micro-motor manufacturer Sanyo Denki, $16.23 million;
- Japanese wood products maker Juken Sangyo $8.73 million;
- Danish eyewear manufacturer Lindberg Subic, Inc. ($6.38 million);
- Taiwanese lock maker Tong Lung (Phils.) Metal Industry ($4.34 million);
- Taiwanese aircon maker Hitachi ($4.48 million); and
- Japanese electronics sensor maker Nicera ($2.79 million).
The state agency reported earlier this week that investment pledges to the freeport — mostly in shipping, trading and tourism ventures — grew 13.6% to P1.5 billion in the first quarter from the same period last year.
Thursday, 27 November 2008
By EDU LOPEZ
The Manila Bulletin
The country’s total exports posted a modest growth of 4 percent to .86 billion in the first nine months of the year from .359 billion in the same period in 2007.
The National Statistics Office (NSO) said that total imports rose by 12.4 percent to $ 45.286 billion from $ 40.278 billion during the 9-month period last year.
The balance of trade in goods (BOT-G) during the 9-month period in 2008 registered a deficit of $ 6.419 billion from $ 2.919 billion deficit in the same period last year.
Total external trade in goods for January to September 2008 reached $ 84.152 billion, up by 8.4 percent from $ 77.638 billion during the 9-month period in 2007.
Total merchandise trade for September 2008 rose by 1.9 percent to $ 9.302 billion from $ 9.133 billion in September 2007.
Exports receipts in September 2008 totaled to $ 4.439 billion, up by 1.1 percent from last year s $ 4.389 billion.
The country's merchandise imports, on the other hand, increased by 2.5 percent to $ 4.864 billion from $ 4.744 billion in September 2007. The balance of trade in goods (BOT-G) in September 2008 recorded a deficit of $ 425.00 million from $ 354.00 million deficit in the same period last year.
Imports of electronic products which accounted for 35.5 percent of the import bill, dropped by 26.1 percent in September 2008 to $ 1.724 billion.
Month-on-month, however, reflected an increase of 3.6 percent from $ 1.665 billion recorded in August 2008. Among the major groups of electronic products, semiconductor had the biggest share of 27.2 percent, down by 28.4 percent to $ 1.324 billion from $ 1.848 billion in September 2007.
Imports of mineral fuels and lubricants in September 2008 ranked second with 20.0 percent share and posted a growth of 52.1 percent to $ 970.32 million over the previous year s level of $ 637.77 million.
Cereals contributing 5.7 percent to the total import bill, was the the country s third top import for the month with payments placed at $ 277.53 million from last year s $ 81.28 million or an increase of 241.5 percent. This was due to the increase in the importation of rice and wheat.
Industrial machinery and equipment ranking fourth with a share of 4.8 percent at $ 231.20 million worth of imports, went up by 31.6 percent from its year ago level of $ 175.68 million.
Transport equipment ranked fifth as foreign bill amounted to $ 221.17 million, up by 8.5 percent from $ 203.86 million last year.
Iron and steel registered $ 109.23 million worth of imports, up by 63.1 percent from its year ago level of $ 66.97 million.
Friday, 10 October 2008
Philippine exports grew 6.5 percent from a year earlier to 4.38 billion dollars in August, but shipments in the key electronics sector fell, the government said Friday.
The figure was down 1.1 percent compared to July, when exports grew 4.3 percent to 4.42 billion dollars.
The figures come as the head of the main tax collection agency quit her job as commissioner of the Bureau of Internal Revenue after a year in office, the government said Friday.
Lilian Hefti cited "health reasons" in her resignation letter to President Gloria Arroyo, and her replacement will be announced shortly, presidential spokesman Anthony Golez told reporters.
The Philippines posted a lower-than-forecast budget deficit of 18 billion pesos (about 379 million dollars) in the first half, when revenues grew 11.7 percent to 570 billion pesos, 1.5 percent above target, while spending rose 6.7 percent to 588 billion pesos, or 2.4 percent below the ceiling set by the government.
Electronics, which make up the largest segment of Filipino merchandise exports, dropped 2.8 percent from the previous year to 2.53 billion dollars in August, the National Statistics Office said.
Exports for the eight months to August rose 4.41 percent to 34.42 billion dollars, a pace that was slightly below the government's revised 2008 growth target of five percent.
Electronics shipment for the first eight months eased by 1.65 percent to 20.228 billion dollars, the government agency said in a statement.
The Philippine government is aiming for export growth of at least five percent this year. The original target was 11 percent.
Sunday, 7 September 2008
By MELODY M. AGUIBA
The Manila Bulletin
The Philippines is projected to post a sugar production of 2.45 million metric tons (MT) this current crop year, at least a 20-year high record that’s sending a huge surplus and export of around 400,000 MT.
Rafael L. Coscolluela, administrator of the Sugar Regulatory Administration (SRA), said the country is set to export 175,000 MT of raw sugar to the US and to the world market up to Jan. 15.
This is as surplus is expected to have risen to 590,000 to 630,000 MT. However, this surplus is foreseen to decline by the end of crop year (CY) September 2008 to August 2009 through government’s intervention.
"Through the export program we’re adopting, we’re looking at an ending inventory of 400,000 tons," said Coscolluela in an interview.
The projected sugar production this crop year indicates a growth of 8.7 percent from 2.257 million MT in CY 2007-2008.
Sugar Order No. 1 is allocating 10 percent of total sugar production for CY 2008-2009 for the US sugar export quota or 245,000 MT and seven percent for the world market or 171,780 MT. Domestic sugar gets 68 percent of raw sugar production for this crop year and reserve sugar, 15 percent.
Coscolluela said government expects a losing price for sugar farmers from the export market. While production cost is at P950 per 50-kilo bag, US export price is placed at P750 per bag and the world market at a significantly lower price of P600 per bag.
"These are rough figures because we know where to sell sugar, but we’ll sell it at a loss," he said.
Local price of sugar is at a more attractive P1,100 per bag. The country’s sugar production has consistently grown over the last 10 years, except for a few calamity-hit years, with farmers’ increased use of high yielding varieties.
Despite the huge surplus this crop year, SRA projects that the country will experience some imbalance when the Philippines begins implementing the Biofuels Act. The law provided for a five percent bioethanol-gasoline mix starting 2009. While the law does not discriminate on any feedstock for bioethanol, the Philippines is more prepared to use sugarcane for bioethanol feedstock with the upcoming completion of the sugarcane-based ethanol plant of San Carlos Bioenergy in Negros Occidental.
Another company, Leyte Agri Corp. has already started producing bioethanol in Ormoc, Leyte using molasses.
Saturday, 9 August 2008
The Manila Bulletin
Philippine exports rose 8.3 percent on year in June, due mainly to increased shipments of electronics items and commodities, but economists weren’t impressed by the performance.
"It’s probably inflated by higher cost of exports," said Jose Vistan, an economist at AB Capital Securities, suggesting that exports may have actually contracted if adjusted for inflation. "The depreciation of the peso in June may have also helped."
Economists also see dark clouds looming in the horizon, citing weaker demand from the US, the country’s top export market. Manufacturing in China, another key market, is likely to slow as it hosts the Olympics. Together, the US and China account for a quarter of the Philippines’ exports by value.
Earlier Friday, the National Statistics Office said that products shipped overseas increased to $ 4.49 billion from $ 4.15 billion in the same month last year. In May, exports were up 2.3 percent on year.
Exports were 6.4 percent higher compared with the revised $ 4.22 billion shipped in May.
The government is aiming for export growth of 5 percent this year, down from an original target of 11 percent, given weaker global demand.
Electronics items, which accounted for 59 percent of exports in June, increased 6.4 percent on year to $ 2.63 billion.
Total exports in the first half of the year rose 4.0 percent on year to $ 25.58 billion.
The US continued to be the Philippines’ top export market, accounting for 15.6 percent of shipments June despite a 0.1 percent on-year contraction in its purchases to $ 702.7 million.
Exports to China showed an 8.8 percent on-year increase, while those to South Korea continued to surge at an annual pace of more than 60 percent .
"We saw a lift from the resources sector, but whether this is sustainable remains a question. We still see a volatile ride, with manufacturing likely more subdued in the second half because of uncertainty," said Song Seng Wun, regional economist at CIMB-GK Singapore.