MANILA, Philippines - The Philippine electronics industry is seen sustaining its healthy state this year as more foreign electronics companies are being drawn to put up plants in the country, the Philippine Exporters Confederation Inc. (Philexport) said.
With rising demand for electronic products, Philexport trustee Francisco Ferrer said about 20 Japanese electronics companies in China are keen on relocating their operations to the Philippines next year amid higher wages in China and the high quality of Filipino talent pool.
Ferrer said revenues of the country’s electronics industry are expected to grow 10 percent to about $27.5 billion this year given the sustained robust overseas demand and operations of new foreign companies in the country.
He said this year’s expected growth rate would be higher than the five-percent expansion seen in 2015.
Ferrer said the demand for hard disk drives for computers remains strong due to the relocation of huge companies in the country while demand for automotive electronic components has been also increasing.
Total merchandise exports continued to drop in October, bringing 10-month exports down 6.2 percent to $48.87 billion from $52.124 billion in the same period the prior year, the Philippine Statistics Authority said.
Despite the decline, electronic exports increased 7.3 percent to $2.39 billion in October 2015 from $2.23 billion registered in the same period in 2014.
Electronic products remained the country’s top export with total receipts of $2.39 billion, accounting for 52 percent of the total exports revenue in October.
Components and devices (semiconductors) had the biggest share of 37.1 percent among electronic products in October. It grew 11.7 percent year-on-year to $1.704 billion.
Philexport said the country needs to address its infrastructure backlog and power issues to realize potential investments in the electronics industry.
Ferrer added that the country should likewise address skills mismatch in the labor market.