Electronics sector loses cheer (‘We think the industry will go negative rather than flat’ — SEIPI)
will be experienced across the industry, Mr. Young said.
“But as quickly as this has gone down, it can go up again depending on the credit situation,” he added.
Philippine Exporters’ Confederation, Inc. ( Philexport) President Sergio R. Ortiz- Luis maintains, however, is upbeat that total merchandise exports will hit 3-5% growth this year as forecast.
“We’re posting a positive outlook for exports even if electronics is negative because other goods such as agriculture and mining exports remain strong,” Mr. OrtizLuis said in a telephone interview.
Electronics exports were down 1.65% as of August, according to government data. The sector accounts for some 60% of total Philippine exports.
Local electronics manufacturers may impose shorter work hours or even resort to retrenchment, a Philippine Exporters’ Confederation, Inc. statement quoted Technical Education and Skills Development Authority Deputy Director General Milagros D. Hernandez as saying.
Mr. Young confirmed this, saying, “While layoffs are our last option, certainly we are working at reducing workweeks. Instead of the usual oneweek shutdown in December, maybe we’ll have a two-week shutdown.”
The sector employs 456,000 direct workers, he said.
“That means... lower incomes and purchasing power, slower consumer spending and finally slower economic growth,” University of the Philippines economist Benjamin E. Diokno said in a mobile “text” message.
But the impact may be minimal as the sector does not comprise the majority of the Philippine labor force, University of Santo Tomas economist Alvin P. Ang said.
“It will certainly have an effect on consumer spending, but the bulk of workers are not in that sector. Hopefully the effect on consumption won’t be that significant,” Mr. Ang said.