MANILA, Philippines - The Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) has adjusted its growth projection for electronics exports this year due to strong global demand.
“We are upping our projection to five to eight percent this year despite port congestion issues. The second quarter result was bullish for some of our members so at the minimum, we expect to achieve five percent growth (this year),” SEIPI president Dan Lachica said yesterday.
The SEIPI’s initial forecast is a five percent growth for outbound electronic shipments this year from $21.823 billion in 2013.
The country’s exports of electronic products were valued at $13.974 billion as of end-July this year, 4.2 percent higher than the $13.413 billion in the same period last year.
Electronic products account for the biggest share in the country’s total exports.
SEIPI chairman Arthur Tan said the growth is expected to be supported by the demand for electronic products overseas.
The recovery in the US and European markets have resulted in greater demand for electronic products.
Tan said strong demand is also seen from other markets such as Southeast Asia and Japan. “Overall, global demand is high,” he said.
While there is strong demand for electronic products and 70 percent of raw materials used in production are imported by air, he said SEIPI’s member firms’ capacity to expand operations is limited by the port congestion as the large equipment being used are brought in to the country via ships.
“As far as the industry is concerned, the port congestion affects 30 percent of our total but in the long-term, it affects operations because the key materials we use go through the ports,” Tan said.
The expanded truck ban imposed in Manila in February has resulted in the piling up of containers at the city’s ports.
Even as Manila City Mayor Joseph Estrada lifted the truck ban earlier this month, Lachica said the port congestion is still a concern for the SEIPI given the seasonal increase in imports with the upcoming Christmas season.
“Hopefully by Q1 (first quarter), it (ports) will normalize,” Tan said.