OVERSEAS demand and the output of new foreign companies in the country will drive the electronics industry to grow by 10 percent at $27.5 billion in revenue terms next year.
The sector’s performance in 2016 compares with the 5-percent expansion this year, said Francisco Ferrer, a trustee for the electronics sector at Philippine Exporters Confederation Inc.
The demand for hard drives for computers remains strong, particularly as major manufacturers have moved to the Philippines.
The automotive electronic components have also shown a significant improvement in output, especially after the Board of Investments (BOI) released the Implementing Rules and Regulations for Executive Order 182 or the Comprehensive Automotive Resurgence Strategy (CARS) Program, Ferrer noted.
Some 20 Japanese electronics companies in China are keen on relocating in the Philippines next year as wages have started rising in China, Ferrer said, noting the preference for the quality of Filipino workers.
However, Ferrer emphasized the need for the country to address infrastructure backlogs and power issues for the potential investments to materialize, saying these are significant factors when investors make a decision.
He noted the skills mismatch in the labor market, which the authorities must also address.
Electronic products account for 52 percent of the Philippines exports. It grew by 7.3 percent to $2.39 billion in October 2015 from $2.23 billion a year earlier.