Electronics exporters slash 2012 growth target to zero
MANILA, Philippines - Due to the strong peso and high electricity costs, the Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) does not see any growth in electronic product exports this 2012.
In a statement on December 11, SEIPI President Ernie B. Santiago added the weak global demand for consumer electronics is also causing a drop in the earnings booked by electronic manufacturers this 2012.
This is SEIPI's latest cut in its 2012 growth forecast for electronic exports. The original forecast was a 10% to 15% growth, which was cut to 5% to 6% by mid-year.
"The SEIPI Board of Directors mentioned that the heightened global uncertainty - a depressed export market, weak consumer electronics demand, and a generally poor global economic climate, and Philippines’ high cost of power and strong peso brought the industry to a flat growth for 2012," Santiago explained.
Santiago reported the country's electronics exports in the last two months of the year would compensate for the near-negative growth experienced during the first 10 months.
Latest electronics exports for October of US$1.9 Billion showed a modest increase of 3.79% against September of this year and positive 0.28% against the same month last year.
Cumulative exports data for the January to October 2012 period totalled US$19.32B compared to US$20.67B for the same period last year or a negative growth rate of 6.56%.
"However, the industry projects it will grow by 5-6% in 2013 due to new plant facility transfers of some electronics companies in the Philippines and investments made during the previous year which will be mostly operational by next year," Santiago said. - Rappler.com