The Department of Trade and Industry (DTI) is examining a possible creation of “longer term” export plan that will propel the export sector of the country, covering both merchandise and service exports.
DTI Export Marketing Bureau Director Senen M. Perlada said that the department is exploring the possibility of an export plan that will stretch for more years compared to the existing three-year blueprint Philippine Export Development Plan (PEDP).
The DTI chief said that the export marketing bureau is working on the 2017-2019 PEDP this year to be readied next year, citing the tedious process of convening and exchanging suggestions and comments with concerned agencies, organizations and stakeholders to formulate the three-year export plan that enlists the sector’s status and targets.
“We are actually looking at longer term plan than the [current]PEDP which is [for]three years only,” Perlada told The Manila Times on Wednesday.
The existing 2014-2016 PEDP is the export part of the Philippine Development Plan 2011-2016, which is the main economic and social blueprint of the government.
The PEDP contains the current status of the merchandise and service export market and the country’s export targets, as well as product and market strategies that are expected to boost growth amid the factors affecting the local and global markets within the three-year planning period.
Implementation of the PEDP is monitored by the joint pu blic and private sector group Export Development Council (EDC).
The EDC earlier revised its export target for the year, and now forecasts total exports to reach $100 billion by the end of this year, lower than the original PEDP target of $120 billion worth of exports by end-2016.
The revision was made amid the slower export performance of the country in 2015, which was attributed to continuing weak global demand.
Though service export and total export figures for 2015 have not yet been released, the Philippine Statistics Authority (PSA) reported that merchandise exports in 2015 declined by 5.6 percent to $58.65 billion from the $62.1 billion in 2014. On Thursday, the PSA released the January data, citing merchandise exports dipping by 3.9 percent to $4.2 billion in January 2016 from $4.4 billion in the same month last year.
Perlada said current exports consist of 70 percent merchandise and 30 percent services.
In an earlier interview, Perlada said services exports are seen to grow by “high single digits” or between 6 percent and 9 percent this year, mostly due to the robust information technology-business process management (IT-BPM) sector.
He added that the trade agency is “hopeful” that it can grow total exports by close to its “stretch targets” of 8 percent to 9 percent growth this year. The DTI target is higher than the lowered export target of the Development Budget Coordination Committee (DBCC), which revised its growth target to 5 percent from an initial 6 percent goal.