Government plans to spend P1.7B to support exporters

MANILA, Philippines - The government is planning to spend P1.7 billion to support exporters under the Philippine Export Development Plan (PEDP).

Senen Perlada, executive director of the public-private Export Development Council (EDC) and director of the Department of Trade and Industry’s Export Marketing Bureau told reporters that a budget worth about P1.7 billion has been proposed under the PEDP 2014 to 2016.
“We’re implementing it (PEDP) already…expect for those which need financing,” he said.

Trade Undersecretary Ponciano Manalo Jr. told reporters the Department of Budget and Management (DBM) has asked the Department of Trade and Industry (DTI) to submit details on the proposed budget.

“The fund will be used for financing of small and medium exporters. There is a line item for quality index products and also a component for promotions,” he said.

The PEDP sets targets and strategies to grow exports from 2014 to 2016.

Under the plan, total exports are targeted to grow by eight to 9.3 percent in 2014 from $78.5 billion in 2013.

For this year, the target is for total exports to rise by nine to 10 percent, while a growth target range of 10.1 to 11 percent has been set for next year.

Merchandise goods account for the bulk or 70 percent of the country’s total exports, while the remaining 30 percent is held by services which cover information technology – business process management and
tourism sectors.

The PEDP is banking on the performance of electronic products as well as the services sector to drive the country’s total export growth.

While the aim of the PEDP is promote the growth of exports, it is likewise seen to help the country achieve inclusive growth through the creation of more jobs.