Electronics exports seen 10% lower in 2024 By Andrea E. San Juan @andreasanjuan
P COMELEC Chairman George Erwin Garcia leads the demonstration of the new-Comelec approved Automated Counting Machine on the sidelines of a live news interview by DWIZ, Aliw 23, BUSINESSMIRROR and Pilipino Mirror at the headquarters of Aliw Broadcasting Company in Pasig City on Wednesday (July 3, 2024). BERNARD TESTA
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HILIPPINE electronics exporters are seeing a 10-percent decline in electronics exports for 2024 due to inventory correction and the product mix in the Philippines, according to the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi). “We had a board meeting. We projected a 10-percent contraction for the year, for 2024,” Seipi President Danilo C. Lachica told the BusinessMirror on the sidelines
of the Launch of the National AI Strategy Roadmap 2.0 and Center for AI Research on Wednesday. The head of the organization of foreign and Filipino electronics companies in the Philippines said exporters are seeing a 10-percent dip in electronics exports this year due to inventory correction and “the product mix we have in the Philippines.” “Inventory correction, carryover from last year. We contracted last year and then the product mix in the Philippines,” Lachica added. Asked if the tensions arising from China and Taiwan could
threaten the country’s outbound shipments of electronics, the Seipi chief expressed concern, but noted that so far, it’s “business as usual.” “Well it’s a threat because Taiwan is the major source of wafers for our industry. So we’re concerned about it so we’re monitoring it, but right now it’s business as usual,” Lachica also told this paper. Lachica, however, still expressed optimism on the performance of the country’s electronics exports this year as he is banking on the uptrend shown by data from the Philippine Statistics Authority (PSA).
“But I’m hoping it will improve because year to date April showed the growth of about 15 percent so if we can sustain that then hopefully we’ll revise the projection,” the Seipi chief said. PSA data showed that electronics exports earnings reached $14.04 billion in the January to April 2024 period. This is a 17.9-percent growth from the $11.90 billion recorded in the same period in 2023. In an interview with reporters in April, Lachica said that despite See “Electronics,” A
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BSP PROJECTS HIGHER NET FDI OF $9.5B IN Q1 By Cai U. Ordinario
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HE Bangko Sentral ng Pilipinas (BSP) credited Japan for the Philippines’s improved prospects in registering higher Foreign Direct Investments (FDIs) this year. In a statement on Wednesday, BSP Deputy Governor Francisco G. Dakila Jr. said the central bank initially projected a $9-billion net FDI position in the first quarter. However, thanks to the positive global economic environment signified by the interest of Japanese investors, Dakila said the estimate has since been raised to $9.5 billion. “Actually, this is still very conservative...in 2023, we had already achieved $8.9 billion. That projection is premised on both push and pull considerations,” Dakila said. Dakila said apart from positive global economic growth prospects, the improved outlook is based on the Philippine government’s commitment to attaining its growth targets. From 2019 to February 2024, Japan was the second largest source of Philippine FDIs, contributing an average share of 28.9 percent to net equity other than reinvestment of earnings during the period. This is second only to the 39.1 percent net equity other than reinvestment of earnings share from economies in the Association of Southeast Asian Nations (Asean) region. “We are very happy that Japan is both recognizing the potential of the country and supporting Philippine economic growth,” Dakila said. Recto: ‘Best friend In his keynote speech, Finance Secretary Ralph G. Recto highlighted the strong and long-standing bilateral ties between the Philippines and Japan, tagging it as “the Philippines’ best friend in the region.” The Finance Secretary further See “BSP,” A
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HE price of broadband packages in last-mile areas will continue to make it difficult for more Filipinos to access the internet, according to a UK-based think tank. In its latest commentary, Fitch solutions company, BMI, said that while the recently approved P16.1-billion Philippines Digital Infrastructure Project (PDIP) will improve internet penetration, more needs to be done for last-mile areas. BMI noted that consumers
are not immediately able to and consistently buy in long-term contracts with broadband prices averaging P1,500. “We believe that obstacles to consistent and widespread fiber uptake remain the prices of packages in last-mile areas, particularly stemming from the elevated costs of rollout that are further increased by the Philippines’ archipelagic configuration,” BMI said. Continued on A
DBM: 2025 budget priorities align with PDP, 8-pt agenda By Reine Juvierre S. Alberto @reine_alberto
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ITH the P6.352-trillion approved national budget for 2025, the development of infrastructure, human capital, enterprise and climatesmart and disaster-resilient communities; food security; research and development and innovation; government’s digital transformation; and devolution strategy will be prioritized. The Department of Budget and Management (DBM) said the budContinued on A
BUDGET Secretary Amenah F. Pangandaman: “We have crafted this carefully and meticulously to ensure that we stay on track with our economic growth targets while ensuring no one is left behind.”
CHARTING A COURSE FOR CALM Philippine Foreign Affairs Undersecretary Ma. Theresa P. Lazaro (left) and Chinese Vice Foreign Minister Chen Xiaodong shake hands during the 9th Bilateral Consultation Mechanism meeting on the South China Sea in Manila on Tuesday, July 2, 2024. The meeting aimed to ease escalating tensions following the worst confrontation in the disputed South China Sea on June 17. In one such incident (lower photo), a Philippine resupply vessel, Unaizah May 4, is hit by a Chinese Coast Guard water cannon blast as they tried to enter the Second Thomas Shoal (locally known as Ayungin Shoal) on Tuesday, March 5, 2024. The ranking diplomats were initially at loggerheads in the July 2 BCM meeting on how to defuse tensions in Ayungin Shoal, but managed to agree to go back to the negotiating table to halt a potential escalation into a full-blown armed conflict. Full story in A3 Nation. DEPARTMENT OF FOREIGN AFFAIRS & AP/AARON FAVILA
PESO EXCHANGE RATES Q US 58.8050 Q JAPAN 0.3643 Q UK 74.6000 Q HK 7.5265 Q SINGAPORE 43.3665 Q AUSTRALIA 39.1994 Q SAUDI ARABIA 15.6751 Q EU 63.1977 Q KOREA 0.0425 Q CHINA 8.0874 Source: BSP (July 3, 2024)