"We have to help exporters reduce their cost. We cannot do anything about the exchange rate so we are looking at exporting by the container," Romulo L. Neri NEDA Director General said in an interview.
Exporters were hurt by the strengthening of the peso against the dollar because it meant higher costs for them.
Aside from the stronger currency, another challenge for exporters is the predicted soft landing of the American economy which would lead to a decrease in consumption in the US, the country’s number one export market.
As such, exporters are looking at Eastern Europe as a potential market for Philippine products.
Latest export data show that American consumers remain to be the biggest buyers of Philippine products. In November last year, 18 percent of local goods sold overseas went to the US.
"They (exporters) want to develop Eastern European markets," Philexport President Sergio Ortiz-Luis Jr. said. He explained there is a demand for agriculture products, low cost furniture and houseware in that region.
According to him, the development of this market is one of the potential proposals to be reviewed for funding of the newly established public-private partnership for the promotion of the export industry.
The government and a group of exporters has put up P280 million to bankroll the creation of the Export Promotion Fund (EPF) tasked to supplement the financing for the promotion and development of local exports.
The EPF will provide supplemental financing to projects that are expected to promote growth of the export sector and provide opportunities for job creation. The projects to be funded must be sustainable and will focus on capacity building, product design and market research.
Seed contributions were from the Department of Budget and Management (DBM) which gave P100 million; the Department of Trade and Industry (DTI), P100 million; Bangko Sentral ng Pilipinas, P50 million; NEDA representing the National Government as the owner of the Industrial Guarantee and Loan Fund, P20 million; and the Philippine Exporters Confederation Inc., P10 million.