The growth of the Philippine electronics industry depends heavily on exports. Electronics account for 66% per annum on the average of the country’s total exports for the period 2000-2007. However, after a series of declines, its share registered at only 58% in 2008 with export revenues amounting to only $26.5 billion, the lowest compared to previous years due to the global financial crisis. The global financial crisis has severely affected the electronics industry and endangered the 462,000 directly employed and the 3.2 million workers
indirectly employed by the electronics industry.
The government should resolve competitiveness issues hounding the industry (e.g., the high cost of electricity, the worsening infrastructure problems, and inadequate logistical support) and review the taxes and incentives imposed in export processing zones. Further, the government should encourage local and foreign investors to put up vertical industries that would cater to the needs of the industry and, as proposed by certain sectors, likewise aim for the coveted China +1 status—wherein multi-national companies (MNCs) apportion their investment between China and countries capable of respecting intellectual property rights (IPR). >>read complete document