65 companies out of Philexport Cebu due to market uncertainties
THE export industry in Cebu has caught itself in a growing business uncertainty, as global trade remains lackluster and the cost of doing business rises.
Philippine Exporters Confederation Inc. (Philexport)-Cebu executive director Fred Escalona asserted that if the downward trend continues, “it will be catastrophic” for the export sector not only of Central Visayas but of the country as well.
“We are no longer competitive due to the increase in the cost of doing business and other pertinent costs,” the export official told SunStar Cebu Tuesday, Oct. 1, 2019.
Early this year, Philexport-Cebu’s membership dropped 17 percent or by 65 member companies due to the stoppage of operations owing to lack of orders, bankruptcy, relocation to cheaper provinces and change in corporate identity.
The group currently has 330 member companies, down from a high of 420 about four years ago, Escalona said.
He added that the group’s membership has been dropping at an annual average of 28 companies.
Escalona was sought comment on the recent petition of labor groups to raise the P386 minimum wage in Central Visayas.
Philexport-Cebu pointed out in its position paper that “any additional minimum wage adjustments at this stage will definitely add pressure on an industry that has the biggest challenge to face.”
The exporters group even raised the growing concerns of having to cut jobs in the industry.
Earlier, Cebu Labor Coalition filed for a P341.74 wage hike petition, raising the daily pay to P727.74.
Central Visayas minimum wage workers are currently earning P386 daily, the standard salary approved by the regional wage board in June last year.
Philexport-Cebu urged the Regional Tripartite Wages and Productivity Board to base any wage adjustments on the real inflation rate of basic commodities and transportation.
The country’s inflation rate climbed to its highest level last year, but it has since progressively declined to lower levels this year.
The Cebu export community has remained pessimistic on growth prospects, as the US-China trade dispute continues to weigh on the overall global trade outlook.
“Without any good news to expect in the near term, world experts are projecting that global trade will remain as lackluster as in 2018,” Philexport-Cebu said.
“This is indeed deemed an ominous warning to Philippine trade stakeholders this year,” he added.
Philexport-Cebu represents 11 export sectors in the Central Visayas region, namely electronics, industrial goods, furniture, seaweed, food, fashion accessories, gifts, toys and housewares, shellcraft, garments and tourism. (CSL)
Tags: hilippine Exporters Confederation Inc. Philexport-Cebu
