Philippines apace with AEC integration

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The Philippines is continuing apace with its efforts to integrate with the other 10-member nations of ASEAN in the ASEAN Economic Community (AEC) by 2015, preparing for increased competition that will be brought about through the liberalisation of trade and labour flows, the Philippine Inquirer quoted experts as saying at the Punongbayan & Araullo CEO Business Forum in Makati City.

Though integration compliancy, which takes into account policy and tariff rules, ran slower in the 2010 to 2011 period compared to the 2008 to 2009 period, the country remains “on track”, maintaining potential to play a pivotal role in banking, trade and tourism, ASEAN Deputy Secretary General Dr. Lim Hong Hin said in a speech.

“In the past, the Philippines has been considered as one of the developmentally challenged economies in Asia and it’s good that we are seeing a change in perception. The Philippine government is right on track in introducing the right policy and to go through the process to make sure that whatever policy gets introduced, the key beneficiary is the private sector and the people,” Hin told media.

Incoming competition

However, according to the Department of Trade and Industry, while some investors are eagerly eying a two- to three-year window for a boom in economic expansion, others are more wont to sell the integration short, expecting debilitating foreign competition in young and hitherto protected industries.

Integration will likely present more risk for domestic agriculture, for example, leading to higher unemployment as farmers encounter a constricted job market. Highly skilled English-speaking will, however, gain access to the markets 10-member states under the liberalisation plans.

This future tilt in the balance of employment has lead local companies to devise forward strategies.

The Philippines’ largest fast-food chain, Jollibee, has been preparing for outward expansion for seven years, researching regional expansion and job creation and working towards ambitious goals in ASEAN fast food.

However, the lifting of tariffs in 2015 may create more problems at home, derailing expansion plans unless price and quality competitiveness are boosted. One solution that has been considered is the increased importation of cheap raw materials from Vietnam and Thailand, such as chicken, sugar and rice.

 

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Reading Time: 2 minutes

The Philippines is continuing apace with its efforts to integrate with the other 10-member nations of ASEAN in the ASEAN Economic Community (AEC) by 2015, preparing for increased competition that will be brought about through the liberalisation of trade and labour flows, the Philippine Inquirer quoted experts as saying at the Punongbayan & Araullo CEO Business Forum in Makati City.

Reading Time: 2 minutes

The Philippines is continuing apace with its efforts to integrate with the other 10-member nations of ASEAN in the ASEAN Economic Community (AEC) by 2015, preparing for increased competition that will be brought about through the liberalisation of trade and labour flows, the Philippine Inquirer quoted experts as saying at the Punongbayan & Araullo CEO Business Forum in Makati City.

Though integration compliancy, which takes into account policy and tariff rules, ran slower in the 2010 to 2011 period compared to the 2008 to 2009 period, the country remains “on track”, maintaining potential to play a pivotal role in banking, trade and tourism, ASEAN Deputy Secretary General Dr. Lim Hong Hin said in a speech.

“In the past, the Philippines has been considered as one of the developmentally challenged economies in Asia and it’s good that we are seeing a change in perception. The Philippine government is right on track in introducing the right policy and to go through the process to make sure that whatever policy gets introduced, the key beneficiary is the private sector and the people,” Hin told media.

Incoming competition

However, according to the Department of Trade and Industry, while some investors are eagerly eying a two- to three-year window for a boom in economic expansion, others are more wont to sell the integration short, expecting debilitating foreign competition in young and hitherto protected industries.

Integration will likely present more risk for domestic agriculture, for example, leading to higher unemployment as farmers encounter a constricted job market. Highly skilled English-speaking will, however, gain access to the markets 10-member states under the liberalisation plans.

This future tilt in the balance of employment has lead local companies to devise forward strategies.

The Philippines’ largest fast-food chain, Jollibee, has been preparing for outward expansion for seven years, researching regional expansion and job creation and working towards ambitious goals in ASEAN fast food.

However, the lifting of tariffs in 2015 may create more problems at home, derailing expansion plans unless price and quality competitiveness are boosted. One solution that has been considered is the increased importation of cheap raw materials from Vietnam and Thailand, such as chicken, sugar and rice.

 

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