Performance monitoring, like most countries everywhere, is hampered by a lack of reliable statistics.  So far, individual industry estimates are used by private sector associations to estimate their industry performance.  However, there are ongoing efforts to have a coherent system that is in line with international standards, and in addition will also cater to the marketing and business planning needs of the private sector.

From the financial sector’s point of view, the Balance of Payments (BOP) statistics are the more relevant series kept.  The BOP recorded trade in services (excluding labor-related payments) at US$4.2 billion in 2004, with 50 percent of the exports being travel-related.  This 2004 figure is a growth rate of 4.5 percent over 2003, and represents 4.5 percent of 2004 GNP.

The Philippine Export Development Plan 2005-2007

The Philippine Export Development Plan set an end of 2007 export target for Goods and Services at US $58.2 billion.  This is from the base figure of US $42.8 billion in 2004, as shown in the following table.

Priority Target Markets

To achieve these targets, specific strategies were formulated on a per market basis.  For the ASEAN market for services, the strategies include accelerated market liberalization by 2010; accelerated development of Mutual Recognition Agreements; and aggressive promotion of joint ventures and cooperation.

For the United States, continuing promotion will focus on Business Process Outsourcing and other ICT-enabled services.  For Europe, the focus will be intensified trade and investment promotion on ICT services (considered the least language-sensitive).

Priority Service Sectors

On a product line basis, the priority remains ICT Services.  Training to qualify for prospective higher value ICT jobs will be conducted, to prepare for the more technically challenging tasks that will multiply as more companies explore the opportunities in outsourcing and shared services.

Construction services will be used as a take off point in selling more construction materials.  Joint ventures with foreign companies will be encouraged to enable local companies to get a foothold in the markets.

Logistics, as an enabler for trade and investments, will be the priority area for development for the Subic and Clark area in Central Luzon. A complete end-to-end logistics management system will be encouraged, through the provision of incentives and support infrastructure.

Health and Wellness Tourism has already started, and the government is responding with a coordinated effort involving the multiple government agencies and private sector service suppliers.

PSC Focus Sectors
The PSC sectors in focus are a response to the initiatives in the PEDP.  However, in line with the GATS, the sectors will be analyzed based on the Modes of Delivery.  The sectors are a mix of the traditional (in sense of a long standing Philippine tradition of supplying world class seafarers) and the modern (specific ICT-enabled services).  A new focus sector is Franchising, a recognition that business ideas and systems are a viable Philippine export product.

Selection of the sectors for study was agreed on by the project proponents in consultation with the private sector; with the private sector selecting their own Service Export Champions.

Based on the sectoral studies the PSC will formulate and implement marketing strategies on a per target country basis starting mid 2006 for the sectors deemed to most ready for international competition.  For example, for Construction Services, the service will span the range of Greenfield design, project and human resource management, and solutions to materials and logistics problems.  Joint ventures and cooperation with third country construction firms in third countries like those in the Middle East will be sought to enable the local Construction Services suppliers to gain entry into the markets.