Philippine exporters are seeking a bigger government fund allocation for export promotion, saying the country’s robust export development plan need not be curtailed by lack of support.
The group’s move aims to revitalize the country’s export sector, which proponents argue is currently hampered by insufficient financial support.
Sergio Ortiz-Luis Jr., president of the Philippine Exporters Confederation Inc. (Philexport), said in a recent interview that while the Philippines possesses a robust Export Development Plan, its implementation is significantly curtailed by a lack of funding.
He said the DTI’s overall budget, currently less than P10 billion, is among the lowest for government agencies.
Currently, the DTI integrates export development funding with investment development, a combined allocation that remains under P1 billion, data from the Department of Budget and Management showed.
Ortiz-Luis said the Center of International Trade Expositions and Missions (CITEM), a DTI-attached agency, can only subsidize a small fraction of exporters’ participation in international trade exhibitions.
“We are practically begging for funds,” Ortiz-Luis said, recalling past instances where the sector secured P20 million and P50 million for a designated Export Development
Fund.
However, he lamented that these resources encountered disbursement issues and were subsequently reallocated to the DTI for other purposes.
Ortiz-Luis harked back to the 1990s, when the export sector was considered a lynchpin of economic development, and the DTI actively marketed Philippine exports globally.
This period also saw significant foreign investment in the electronics industry. He cited a notable example:
“In 1998, at the height of the problems, the crisis all over the world, our export grew by 21 percent; this is, one of the highest, if not the highest in the whole world, at least the highest in Asia at that time and exports share to the GDP was 55 percent.”
He attributed this success directly to the robust promotional support exports received. Garments also emerged as a major export contributor during that era, generating an estimated $3 billion annually.
Beyond direct financial aid for research and development, product development, and marketing, exporters also require non-monetary support in terms of policy and ease of doing business, Ortiz-Luis stressed.
He contrasted the past competitiveness of Philippine exports, noting, “In the 1990s, we were very competitive. We were beating (other countries in the region). Afterwards, we lost this competitiveness to them.”
He reiterated that despite having a biennial export development plan, implementation falters due to insufficient funding, leaving the DTI, the primary agency for export promotion, with one of the lowest budgets.
Ortiz-Luis characterized a larger budget for DTI’s export promotion as a strategic investment. He suggested that even a fraction of the funds allocated for the conditional cash transfer program, which he last saw at P87 billion (with P15 billion for monitoring alone), could significantly bolster export development.
“If you give even just the monitoring money to export development, to DTI so that they can really improve their costs, I think it will go a long way,” he proposed.
He also expressed concern over the conditions of Philippine exhibition booths abroad, stating, “We cannot compete. Our exporters cannot afford to go, because they are not subsidized like Thailand, Malaysia.”
Despite these challenges, Ortiz-Luis affirmed exporters are “trying everything. They’re trying to find new markets, trying to improve their costs.” He concluded with a direct plea to the government: “Let’s take exports seriously.”
