February 15, 2019 Direct subsidies won’t save the export sector

Amid calls for government intervention to help save the dying export sector, a business leader however said that giving direct subsidies won’t help.

“Direct subsidies are not sustainable but indirect subsidies in the form of tax breaks and reduced bureaucracy for example will assist exporters,” said Cebu Business Club president Gordon Alan “Dondi” Joseph.

The export sector, Joseph said, is facing numerous problems including weak global market, supply of raw materials and supply chain management, as well as the need to upgrade production capabilities, but the least the government can do for now is giving the sector its special attention, tax break can provide an immediate relief.

Moreover, the Philippines has dropped in the competitive rankings, which indicates that real and immediate institutional changes are needed, Joseph said.

“It is getting more difficult to do business in the Philippines and the exporters are feeling this,” Joseph added.

Export leader, Pete Delantar on the other hand expressed hopes that if the government were serious in helping the sector, it could survive from the long battle of difficult times.

“The EMB/DTI and. its affiliates which mandated to do marketing and promotions should invigorate the infrastructure for export. They should make the needed tools and support available to ‘willing and active exporters’ to access the market and penetrate trade barriers,” Delantar said.

“We have great products (great design, great story, great quality) but the cost to export is making us uncompetitive,” Delantar further emphasized.