How did the Philippines become an exporter of advanced electronic products?

According to reports EconomyOnline According to Fars, our country is an oil-rich geography and it has always been thought that being rich depends on having this black gold; But many non-oil-rich countries have created much more valuable sources of income, such as technology exports. Many of them are not in the category of developed countries, but they have been able to become top technology exporters by investing heavily in their capabilities. In the case of “minus oil”, we examine the path that these countries have taken.

The Philippines is one of the world’s most successful exporters; An Algerian country in Southeast Asia with a population of about one hundred and ten million and the 34th largest economy in the world. “61%” of Philippine exports are high-tech, valued at about 34 million dollars in 2018; That means “one-seventh of Saudi Arabia’s oil revenue,” which is the world’s largest and most lucrative oil exporter. The most important exports of Philippine technology are aerospace products, computers, pharmaceuticals, scientific research tools and electrical machinery.

Change in Philippine export approach since the 1970s

The Philippine government decided in the late 1970s to make the country an attractive place for foreign investment and industrial activities and to diversify its exports. By the first half of the 1990s, the electronics industry was gradually gaining ground in the country, leaving agriculture as the Philippines’ most important source of export earnings. Since then, the Philippines has always earned the bulk of its export earnings in this way. Although the global economic crisis in 2019 pushed the Philippines’ total electronics exports down 28 percent to $ 22 billion, exports rose 41 percent to $ 31 billion in 2020, a record high. Registered.

The presence of large technology companies in the Philippines has created an attractive job market for IT enthusiasts in the country and has led to the rapid implementation of creative ideas in this field. The production of semiconductors and chips in the Philippines is a booming industry, and Japan is the largest customer and buyer of this product.

Exports of Philippine electronics are expected to grow by about 10 percent in the coming years, according to forecasts by the Philippine Chamber of Commerce and Industry in the coming years, as the Corona epidemic subsides. This growth is projected to be between 8% and 12% for Philippine semiconductor products.

Keeping up with developments in the world of technology

The Philippines has always strived to take advantage of the latest technologies in the field and to update its industries regularly in order not to lag behind the developments in the IT world and maintain its export potential.

In 2018, the country ranked 55th out of 82 countries surveyed in terms of technology readiness, according to a list published by The Economist. With a score of 5.5 out of 10, it was next to countries such as Colombia, Jordan, Kazakhstan, Serbia and Sri Lanka. It ranked fourth compared to its competitors in Southeast Asia.

In recent years, the government and business owners in the Philippines have worked to reduce the digital divide and improve technological know-how in the country, and three general plans to increase access to high-speed, high-quality Internet, digital economy infrastructure, and open space for operations. They have implemented creative plans and initiatives.

The Philippines has taken the development of ICT infrastructure very seriously and has implemented a variety of initiatives to improve cybersecurity, access to e-government services, and access to the Internet in remote and rural areas.

Corona Benefits for the Philippine Electronics Industry

Forced housing due to the outbreak of Corona and telecommuting has increased the need for millions of people around the world to use electronic products such as computers and telephones to perform business duties. This has increased the need for a variety of hardware and software in world markets, and studies by the International Finance Institute in Washington show that this situation has worked out in favor of countries like the Philippines.

According to the research of this institute, changes in the process of people’s daily activities have also led to changes in their behaviors, such as increasing telecommuting and relying on online training. These developments have led to an increase in purchases of electronic and computer products and related tools, leading to, for example, 81 and 25 percent increases in exports of computer products to South Korea and Vietnam in the first half of 2020 compared to the same period last year.

The change has also benefited other countries, such as the Philippines and Malaysia, which have become hubs for electronics and computer exports. In May, the value of Philippine electronics and computer exports reached more than $ 2.29 billion. This means that 57.4% of the country’s total exports in May 2020 accounted for such products.

Of course, some closures and work constraints due to the corona have damaged the Philippines’ export potential. The value of this type of export to the Philippines in May 2019 amounted to $ 3.44 billion, which in May 2020 shows a decrease of about 33.4%. The Philippines has imposed very strict travel restrictions to prevent the severe outbreak of the corona. However, it still has significant export earnings from the sale of computer and electronic products.

New technologies supported in the Philippines

In 2020, the Philippine Ministry of Science and Technology announced its new plans to strengthen the production of technological and electronic products in order to further strengthen and diversify the country’s export market. Among the products that will be produced in the Philippines in this regard are the following:

Inventing herbal ingredients to make new medicines: Filipino researchers have extracted 18 new ingredients from specific plants in the country that can be used to make special and fresh medicines. One of these herbal ingredients will be used to produce a drug that, for the first time in the world, can definitively treat dengue fever. The disease is transmitted to humans through a mosquito called AIDS. This mosquito, known as the Asian tiger, is found in the tropics of the world, especially in Southeast Asia, including Malaysia. The disease has recently spread widely and has left many casualties. Symptoms include headache, back pain, and back pain, usually high fever, and in some cases itching and pimples on various parts of the body. Deaths from the disease have been reported at one in a thousand.

Production of robotic products: Production of various robots is one of the new areas of activity in the Philippines. One of the Philippines’ special plans in this field is the production of robots based on artificial intelligence to help move injured, injured and treated people. One of these robots, called Agapi, whose body can be made quickly with 3D printers, helps injured people to move their limbs, especially their upper limbs, faster and better.

Artificial Respirators: Ginhawa is the name of an artificial respiration device made by Filipino researchers that has received special attention, especially after the outbreak of the Corona virus. This device can be used by both children and adults.

Help boost agricultural exports: The Philippines’ technological ingenuity also helps boost agricultural exports. One of these processes has been developed with the aim of helping to increase the reproduction of the coconut plant, which is one of the important export items of the Philippines. The technology used for this purpose is called somatic embryogenesis technology, and using it, different types of coconut plants with better genetic conditions are identified and various methods are used for their rapid reproduction. Using this propagation technology, 300 new coconut plants can be extracted from the tissues of a fruit that is genetically suitable.

Renewable energy boats: Philippine researchers have also announced the production of a new type of passenger boat that provides the energy needed to move through the energy of the waves. Given the proximity of much of the Philippines to the sea and the constant waves in this part of the world, this new invention could reduce transportation costs in the Philippines and reduce environmental and seawater pollution. . The boat is capable of carrying 150 passengers, 150 motorcycles and 4 vans and is called Trimaran.

Production of low-cost diesel engines: The Philippines has also put the production of simple and inexpensive diesel engines for installation on a variety of agricultural machinery on its agenda. One of these engines, which has 12 horsepower, can help modernize the agricultural industry and increase yields in the most remote parts of the country.

future plans

The Philippines as a whole intends to become self-sufficient in science and technology in the near future and to meet all its vital needs domestically. The coordinated agenda for science and technology (NSTP) implemented by the Philippine Ministry of Science and Technology since 2002 is the most important scientific executive document of the country, which solves internal problems with the aim of growing the country and reducing the risks posed by Natural disasters are its most important focal points. The implementation of this agenda has been seriously considered since 2014, and the Philippine government hopes that in addition to self-sufficiency in science and technology, it will be able to increase its exports.

Technologies considered in this agenda include remote sensing, radar processing, upgrading test and measurement capabilities, modeling to study climate change, performing complex computer calculations with high accuracy and speed, and Etc. pointed out. The Philippine Ministry of Science and Technology has also established new centers for extensive scientific research in areas such as nanotechnology, biotechnology, genetic engineering, materials and metallurgy, and more.

Philippine government surveys show that by 2024, the market value of software sales and software services in the country will exceed $ 78.4 million. In 2019, two-thirds of this market was owned by applications used by commercial companies. There are currently more than 400 American and European software companies operating in the Philippines that help digitize professional processes in the country.

In 2020, the government has allocated $ 800 million to implement the Philippines Digital Transformation Strategy, which aims to improve digital infrastructure, increase Internet and telecommunications, facilitate virtual work, and increase software usage. , Cloud services and online shopping systems and e-government. Creating smart cities for economic development, tackling the problem of population growth, increasing the speed of the Internet and helping to shape the digital economy are on the agenda.