The local export sector remains well-positioned to weather rising operational headwinds, as weakening peso provides a crucial buffer against surging global fuel prices and supply chain volatility, according to the country’s leading industry body.

Philippine Exporters Confederation Inc. (Philexport) president Sergio Ortiz-Luis Jr. said he considers the domestic export industry a “winner” after the peso plunged to its weakest level of 60.10 per United States (US) dollar last week.

He said the strengthening of the US dollar is helping exporters mitigate the impact of the Middle East conflict, which has raised fuel prices to unprecedented levels and placed the global supply chain under severe volatility.

“At least we can mitigate it. Can you imagine if their components increased and the exchange rate didn’t adjust? Our exporters would be even worse off,” he told Manila Bulletin.

Since exporters are now bearing the brunt of higher business costs, a stronger dollar would serve as a counterbalance by boosting export revenues.

“The exporters will have more competitiveness. Even the downstream industries that supply exporters will make money,” he said.

Within the export industry, Ortiz-Luis said the electronics industry may struggle with the weaker peso, as 70 percent of its inputs will now be more costly, putting more pressure on production costs.

But he said this will be more than offset when the finished products are exported abroad, since they will earn higher revenue. Electronic products, which include semiconductors, were the country’s top export commodity last year, hitting $49.64 billion.

Ortiz-Luis said this makes it clear that the depreciation of the peso is not a major concern right now, but rather the potential for large swings that could affect inflation.

“Our real problem is fuel and electricity. Foreign exchange is being blamed, but that’s only a small component. It is more a result of a lack of supply rather than a cause in itself,” he added.

To this end, he urged the Bangko Sentral ng Pilipinas (BSP) to implement the necessary intervention measures to temper swings “so that they don’t become inflationary.”

While the outlook is generally upbeat for exporters, Federation of Philippine Industries (FPI) chairperson Elizabeth Lee said local manufacturers are more concerned about the recent depreciation of the peso.

Unlike exporters, Lee said manufacturers focused on the domestic market would directly bear the impact of higher input costs without the advantage of higher foreign revenues.

She said higher production costs for these firms may gradually be reflected in consumer prices, which would weigh on household purchasing power.

“Small and medium-sized enterprises, with more limited capacity to manage currency volatility, remain especially sensitive to these shifts,” she said in a statement.

As such, Lee said the government should implement a calibrated monetary policy to dampen inflation expectations, alongside efforts to strengthen energy security and supply diversification.

“These interventions will be critical in cushioning cost pressures and supporting domestic demand amid external volatility,” she added.