Exporters lament lack of gov’t support

The country’s merchandise exports should be accelerating at a much faster pace if enough support is given to the sector that contributed 54 percent to the country’s gross domestic product in the third quarter, according to Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr.

“Basically, we still have to see support for the export sector, which we have not been seeing. The support of government to the export sector consists only of prayers. No budget,” Ortiz-Luis told The STAR.

“Out of the Department of Trade and Industry (DTI)’s budget, which was only about P3 billion to P4 billion in the past, P500 million is assigned to its international trade group wherein eight agencies share that budget. Of that, 80 percent goes to salaries and wages and administrative costs, so what is

left there is some P100 mil- lion. That is the one we are directly spending for export promotion while the others are spending trillions,” he said.

Ortiz Luis said because of the lack of government funding and support, the country’s export sector continues to lag behind its regional neighbors.

“Thailand in the last year, even at the height of the political upheaval there, they mounted four shows. Us, on the other hand, we cannot even join at the (trade) fare in Milan where we are supposed to be the Milan of Asia because we have no budget. So we will really be left behind,” he said.

According to Ortiz-Luis, the government should allot billions for the sector, especially for financing the small and medium enterprises.

By participating in trade fares abroad, he said the Philippines gets to promote the country to investors and at the same time help local exporters reach new markets.

Data from the Philippine Statistics Authority showed that total exports for January to September 2017 rose 12.2 percent to $47.71 billion from $42.52 billion in the same period last year.

For the month of September alone, shipments grew 4.3 percent to $5.59 billion from $5.36 billion the previous year, boosted by increased outbound shipments of gold, coconut oil, machinery and transport equipment, metal components, other manufactured goods, and electronic products.

Given the robust growth in the first three quarters driven by the continued recovery of foreign markets and the country’s improving ties with non-traditional allies like China and Russia, export stakeholders from both the public and private sectors are confident that merchandise exports would finish the year on a strong note.

For this year, DTI is looking at a modest four to five percent growth in the export of goods.