Businesses paint rosy picture for 2024
Various industries engaged in exports as well as those catering to the local market such as pharmaceuticals and automotive industries have penned positive growth forecasts for 2024. The Philippine Exporters Confederation Inc. (Philexport) is projecting a five to six percent growth this year for the exports industry, propelled by the recovery of the US economy and the expansion of the electronics sector.
Philexport chairman George Barcelon said they are hopeful that 2024 would be better compared to 2023 as inflation has been mitigated amid the decline in fuel and commodity prices.
“We are talking to some of the exporters, they are hopeful. Probably, if we can get a midpoint of five to six percent increase, I think it would be good,” Barcelon said, adding that the electronics sector would push up the numbers.
He is also optimistic on the recovery of the US economy.
“The US economy, if you noticed, is bouncing back especially in the electronic sectors because AI (artificial intelligence) is now popular and these are all really electronics so it is being hyped and the stock market seems to reflect it,” he said.
Aside from electronics, Barcelon said some export sectors have been doing well, including the furniture sector.
“With GSP (Generalized Scheme of Preferences) Plus, there are about 6,000 items that give the Philippines an advantage without tax. This has been highly used by our exporters so those factors can really boost the export,” he added.
Furniture makers are eyeing a 15 to 20 percent growth in sales this year, driven by its innovative efforts to serve demand in the overseas markets.
Various industries engaged in exports as well as those catering to the local market such as pharmaceuticals and automotive industries have penned positive growth forecasts for 2024.
“I am very hopeful (about growth) because buyers are coming in again. They come to visit (the country),” Philexport trustee for the furniture sector Myrna Bituin said.
Meanwhile, the Foreign Buyers Association of the Philippines (FOBAP) sees the country’s exports of garments, textiles and apparel growing by two percent next year, reaching around $1.33 billion, as industry players expand into new markets to boost revenues.
PHARMACEUTICAL INDUSTRY
Optimism is also seen for the country’s pharmaceutical industry as it is targeting a 10 percent growth this year, according to an official of the Philippine Pharmaceutical Manufacturers Association (PPMA).
“We are looking at an increase of 10 percent this year from last year,” PPMA president Higinio Porte Jr. said.
“We are looking at growing it to about P300 billion, but this does not include the imported vaccines. That is separately procured by the government,” he added, noting that the industry is currently valued at P257 billion.
He said the sector is collaborating with the Department of Health (DOH) on the supply of certain medicine.
Porte also expressed optimism for the implementation of the outpatient benefit under the Universal Health Care Law.
“Before, when you go to a government hospital, you’re an outpatient, you will be given a prescription, but you will buy the medicine,” Porte explained.
“With this program of the government, you will be given a voucher, then you will redeem it in participating drugstores. So that would boost the growth of the market,” he added.
The country’s automotive sector is seen to once again hit record-breaking numbers this year as Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Rommel Gutierrez said it’s possible for vehicle sales to hit 500,000 units.
This would mark an increase of 16.3 percent from the 429,807 units sold in 2023, breaching its 423,000 target.
“Possible, because we grew by 21 percent last year,” Gutierrez said.
The growth would be driven by production, new models, and improved macroeconomic performance, with reference to the country’s gross domestic product and moderated inflation rate.
He also mentioned remittances from overseas Filipino workers as another sales driver for the sector.
OPTIMISM FOR GROWTH
Aside from the optimism on the growth of various industries, business groups have also expressed optimism for the country’s economy.
For the Philippine Chamber of Commerce and Industry (PCCI), bright prospects are seen for the Philippine economy this year as it forecasts it to grow faster, or by at least six percent this year.
Newly elected PCCI president Enunina Mangio said the growth would be driven by resilience and domestic consumption, increase in government spending on infrastructure projects and a gradual recovery in some sectors.
Mangio is upbeat on the business environment this year, acknowledging both the efforts of the government and the private sector to address the issue of the ease of doing business.
“We are looking forward to a better year,” she said in an earlier interview with ANC.
Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) president Cecilio Pedro is cautiously optimistic about the economic outlook for this year.
“FFCCCII welcomes 2024 with cautious optimism, coinciding with the auspicious Year of the Dragon commencing on Feb. 10, the Chinese Lunar New Year,” Pedro said.
“Let us focus on unity, stability, continuous reforms, working for peace with all our neighboring countries in order to attract more foreign direct investments and tourists,” he added.
Management Association of the Philippines (MAP) president Rene Almendras emphasized the need for vital policy reforms to improve the country’s global competitiveness.
“Recent economic realities, together with globalization, highlights the need to enhance our country’s competitiveness, as all the other economies are so doing,” Almendras said during the recent induction of MAP officers.
“To help improve the global competitiveness of the Philippines, we will push for vital policy reforms, through executive or legislative action, that will eliminate corruption, improve the ease of doing business, ensure food security through agricultural productivity, and sustain an enabling business environment for local and foreign investors. The aspiration is to attract greater and more diverse job-creating investments for more Filipinos to be gainfully employed,” he added.
To make the country more attractive to investors, Mangio stressed the need for the country to strengthen its foreign relations and to continue upskilling the workers.
She said reskilling and upskilling the laborers is important so that the country’s foreign partners would be able to appreciate the potential of Philippine workers.
In relation to this, the German- Philippines Chamber of Commerce and Industry (GPCCI) president Stefan Schmitz recently stressed the need for laws to improve the skills of Filipinos as more German businesses expressed interest in increasing their employment in the country.
“Aside from continuing to liberalize the Philippine economy for foreign players, we urge the Philippine government to take advantage of this momentum by instituting laws that seek to improve skills development of Filipinos such as amending the outdated apprenticeship system and strengthen enterprise-based education,” Schmitz said.