Exporters appeal for gov’t support anew

CEBU, Philippines - The export sector in the Philippines is once again asking the government to help them survive as the opening of the ASEAN integration posed another threat for the industry.

In a statement, Philexport president Sergio R. Ortiz-Luiz Jr. said the government should provide a clearer path for exporters specifically the small and medium enterprises to enable them to compete in the ASEAN market, particularly in their struggle in moving up the value chain and exporting finished goods,

The export leader said that while more than half of Philippine exports over the past five years have gone to the ASEAN region, “these are still mostly intermediate products.”

Exporting finished goods, he said will indeed be a huge challenge, especially considering that “we have similar products.”

Micro-small, and medium-size enterprises are the most vulnerable and most in need of help in adjusting to liberalized trading within the ASEAN, he further said.

“The MSME sector is anticipating the brunt of the influx of imported products especially if they will be left to fend for themselves,” he said.

Assistance thus needs to be stepped up “in big ways” to enable smaller entrepreneurs to overcome market entry difficulties.

This problem, he stressed, could only be achieved through public-private collaborations between business organizations and a network of government partners such as the Export Development Council and the Department of Trade and Industry.

In a separate interview with Department of Trade and Industry-7 regional director Asteria Caberte, she said that the agency has already an active partnership with the export sector in the region to assist them in taking advantage of the ASEAN market, so they won’t be left behind   by other countries within the ASEAN bloc.

Ortiz-Luiz suggested that among common services that the government and private sector can possibly  develop together for MSMEs is continued assistance in the areas of securing credit from banks, capacity building, improving labor and quality standards, and trade facilitation through one-stop export and import documentation.

“They can also offer help in productivity-and competitiveness-enhancement programs, participation in foreign and local trade exhibits, and online marketing,” he said.

Even more imperative, Ortiz  said, is for government to “sustain if not accelerate this [economic] momentum” that has helped gain market access for local exporters.

This is possible only if export leaders “engage in an aggressive advocacy for policy and regulatory reforms to make doing business in the Philippines less costly and less cumbersome.”

Domestic reforms can enable local industries and exporters to hold their own against their better-equipped foreign counterparts, he concluded.  (FREEMAN)