Shrinking export industry points to need for more gov’t support, Philexport says
THE declining number of exporters reflects the need for more financial and technical support, the Philippine Exporters Confederation, Inc. (Philexport) said.
“We have always been praying for the government to look at export as an investment, not as an expense,” Philexport President Sergio R. Ortiz-Luis, Jr. said on the sidelines of the National Export Congress on Thursday.
“The Department of Trade and Industry (DTI), which is supposed to be in charge of export, wala halos budget (has hardly any funding) compared to other departments. And compared to our neighbors, pathetic,” he added.
In its midterm report, the DTI Export Marketing Bureau (EMB) tallied about 4,000 export enterprises.
“That is actually nearly half of what it was more than a decade ago,” said EMB Director Bianca Pearl R. Sykimte said.
“It could be that they do not want to do direct exporting anymore. We have seen a growing number of consolidators,” she said.
“Exporting can be a daunting process, so for a smaller company, it would make sense, especially for those that have smaller starting capital, to work with a consolidator,” she added.
She said that the declining number might also reflect enterprises’ shift to a domestic-market orientation.
She said that the department will be implementing firm-level support initiatives.
“We have programs with other governments that are focused on firm development, and we are also working with the World Bank,” she said.
The World Bank is funding a program aimed at helping small and medium-sized enterprises (SMEs) expand their reach in global markets.
In a project briefer, the World Bank said that the Department of Finance is seeking funding for the Philippines COMPETE Plus for SMEs project.
It is expected to cost $373 million, with the government providing $23 million. It is expected to be approved on Feb. 25, 2027. — Justine Irish D. Tabile
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