Smartphones assembled in PHL? Govt hopes so By Andrea E. San Juan
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THE government is pinning its hopes on smartphone manufacturing companies considering the Philippines as assembler for their products, given its “strength” in semiconductor and electronics, a Department of Trade and Industry (DTI) official said. “... I think Apple is venturing with Vietnam already for the assembly of iPhone products, so again we hope that...other companies into smartphone manufacturing . . . can consider the Philippines because of our strength in electronics and semiconductor industry,” DTI Assistant Secretary for International Trade Policy and Trade Negotiation Allan B. Gepty said.
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If the Philippines wants to position itself as a manufacturing hub, one area it should look at are highvalue technology products, he added. “High-value technology products in the sense that given that we already have a very strong semiconductor industry and electronic industry, why not attract companies to manufacture or at least assemble final products here in the Philippines?” Gepty told the recent Policy and Advocacy Committee Meeting hosted by the German-Philippine Chamber of Commerce and Industry (GPCCI). Philippine Statistics Authority (PSA) data showed the local semiconductor and electronics industry retained its position as the country’s top commodity exporter.
In 2022, it accounted for US$49.09 billion, a 6.88-percent annual growth from 2021. According to the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI), this was 62.27 percent of the US$78.84-billion total Philippine commodity exports. Aside from projecting itself as a manufacturing hub for high-value technology products, the Philippines can also engage in research and development for the said type of products, Gepty said. “Computers, I mean we do not have an assembly on final products of computers or even cameras or smartphones. So, since all of the materials basically are here, why not enter into that?” the Trade official stressed.
According to the SEIPI website, as of January 2023, Hong Kong ranks first among the countries of destination for Philippine electronics exports, accounting for 14.45 percent. The USA ranks second with 12.47 percent share and China ranks third with 11.78 percent. The other destinations in the top 10 and their shares: Germany, 5.90 percent; Taiwan, 5.15 percent; Vietnam with 3.91 percent; Thailand with 3.82 percent; and South Korea with 3.63 percent. Meanwhile, a Bloomberg report published in March 2023 said Apple Inc. partner Foxconn Technology Group plans to invest about $700 million on a new plant in India to ramp up local production. See “Smartphones,” A2
BusinessMirror Monday, April 10, 2023 Vol. 18 No. 175
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Durian exports to China seen to draw $260M revenue
HE ASEAN+3 Macroeconomic Research Office (AMRO) advised the Bangko Sentral ng Pilipinas (BSP) and the central banks of Korea and Singapore to maintain their tight monetary stance until inflation cools.
In its recent ly relea sed A SE A N+3 Reg iona l Economic Outlook (AREO 2023), the research arm said monetary policy should remain tight in economies in the region where inflation remains above target. Inflation in the Philippines is still above 8 percent, significantly higher than the 2 to 4 percent medium-term inf lation target. Core inflation also remains elevated and posted a 24-year high in March at 8 percent (full story here: https://businessmirror.
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com .ph /2023/0 4/06/pr icesmay-stay-high-despite-easinginflation-in-march/). “In the Philippines, the central bank raised its policy rate to curb rising inflation and the emergence of second-round effects. Given these three economies’ mid- and late-cycle positions, AMRO staff recommends that their central banks maintain a tight monetary policy stance until inflation pressures subside,” AMRO said in its report. See “AMRO,” A2
EASTER RITES The Salubong, an Easter tradition in the Philippines that reenacts the meeting of the risen Jesus and his mother, the Blessed Virgin Mary, on the first Easter morning, is performed at the National Shrine of Saint Padre Pio in San Pedro, Santo Tomas, Batangas, on Sunday, April 9, 2023. The celebration starts with two dawn processions: a group of men with the statue of the Risen Christ and a group of women with the statue of the Blessed Virgin Mary covered in black veil coming from opposite directions and meeting (salubong) in front of the church, where the veil is removed by a child dressed as an angel while a host of other “angels” sing songs of praise. ROY DOMINGO
DOES PHL TOURISM RELY UNDULY ON CHINA? By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
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T may be time for the Department of Tourism (DOT) and stakeholders to review the source markets for travelers they are relying on for the recovery of the tourism sector. Like many countries around the world, the Philippines has been highly dependent on China for the bulk of its tourist arrivals. “The government and the pri-
vate sector really have to review the market mix because there have been so many changes in the global environment,” said Philippine Hotel Owners Association (PHOA) executive director Benito C. Bengzon Jr. in an interview with the BusinessMirror. “I mean, for the last several years, we were looking at Northeast Asia; the question is, will they go back to their percentage share prepandemic? So, this is also where creativity will come in on the part of the government.”
Prior to the pandemic, China placed second to South Korea among the Philippines’s source markets for tourists, accounting for some 21 percent or 1.74 million of the 8.3-million total foreign tourists in 2019. The DOT is now working with the Department of Foreign Affairs and the Department of Justice on the issuance of evisas for tourists from China and India to help lift international arrivals. See “PHL tourism,” A2
HE country shipped the first batch of durian to China on April 6 as part of the bilateral agreement in January, the Department of Agriculture reported. In a statement, the Department of Agriculture (DA) said the deal is expected to gain $260 million or P14.3 billion in revenue for the local durian industry. The 28-ton durian cargo, which approximately weighs 28,000 kilograms, was sourced from producers and processors in Mindanao, and passed the stringent requirements of the General Administration Customs of China (GACC). “Another shipment of 28 tons was sent off via airfreight, while 10 container vans loaded with a total 7.2 tons was transported via sea vessel, on Saturday, April 8,” the DA said. Prior to the first batch of export, the GACC released the list of qualified facilities and farms that received the “green light” from the Chinese government. This consists of five packaging facilities and 58 durian farms. Following the signing of the “Protocol of the Phytosanitary Requirements for Export of Fresh Durian from the Philippines to China” on January 4, the DA began preparatory measures including the support to durian growers and processors thus enabling them to meet the protocol requirements. See “Durian,” A2
PESO EXCHANGE RATES n US 54.5760 n JAPAN 0.4143 n UK 68.2527 n HK 6.9529 n CHINA 7.9360 n SINGAPORE 41.1708 n AUSTRALIA 36.8497 n EU 59.8044 n KOREA 0.0416 n SAUDI ARABIA 14.5517 Source: BSP (April 5, 2023)