The electronics and semiconductor sector expects exports to rise by a modest 5 percent to $30.4 billion in 2016, despite election-related disruptions such as the gun ban that restricted the movement of chemicals across the nation.
The Semiconductor and Electronics Industries in the Philippines Inc. said the implementation of the six-month gun ban from January to June 2016 will impact on operations since each and every shipment is required to secure permit to transport.
The gun ban covered semiconductor chemicals that couild be used in the manufacture of explosives.
“Notwithstanding the fact that application fees increased ridiculously to P1,500 from just P50 per application, we are also concerned that application processing is taking too long, almost one month from what was published that was in about 10 working days,” Seipi president Dan Lachica said in a briefing Friday at the Board of Investments in Makati City.
The group has recently asked the Commission on Elections to reduce the processing time to one to two days for single shipment and one week for single application for a certain period of time, as well as bring back processing fee to P50 per shipment.
The Comelec required affected parties to secure a certificate of authority to transport chemicals identified by the Philippine National Police as ingredient explosives.
Lachica said Seipi member-companies were still optimistic the sector will perform well this year.
Government data showed that exports in 2015 amounted to $29 billion while imports stood at $20 billion from $26.8 billion and $15.3 billion, respectively.
Investments in 2015 reached P80 billion, up 40 percent from P57.5 billion in 2014, while employment increased 2 percent to 351,387 from 344,449 in 2014.
The group has adopted a performance guide on how companies can move up the value chain and improve the benefits to the economy.
“What we want here is to increase the ratio of electronics manufacturing service from semiconductor manufacturing service. We don’t mind increasing SMS alongside EMS, but we have to get bigger value if we improve on our EMS,” said Lachica.
He said the group aimed to bring in more original equipment manufacturers into the Philippines, where they can set research and development and produce the product right here.
Two existing companies in the Philippines are expanding into research and development, while two new ones plan to set up reserch and development and create local operations.
Seipi is a group of 274 EMS and SMS companies whose products comprise more than half of the country’s total exports.