Gov’t urged to name czar for Asean integration

MANILA, Philippines - The government should designate a czar who will be responsible for policies to make local industries competitive for the upcoming Association of Southeast Asian Nations (ASEAN) economic integration.

“There must be a decision that we will compete and we will align policies and there should be a czar,” Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr. told reporters.

He said the czar will set the direction to betaken to make local industries competitive for the ASEAN EconomicCommunity (AEC).

The AEC which will be in place by the end of next year and is expected to transform ASEAN into a region with free flow of goods, services, skilled labor, investments and capital.

The ASEAN economic integration is seen to create opportunities for businesses as the region has a market of over 600 million consumers and combined gross domestic product of nearly $3 trillion.

A czar as well as clear policy direction are needed as Ortiz-Luis noted that the Philippines currently does not have an industry that can be considered competitive relative to its peers in the region.

“I don’t see where we are ahead,” he said.

While mining is seen to be an industry where the Philippines is seen to have an advantage over its neighbors, firms have been on await-and-see attitude with no new fiscal regime in place.

Ortiz-Luis also said that even as the AEC is seen to open opportunities for expansion, many local businesses are not prepared todo so.

“The advantage of AEC no doubt is expanding the market but many of our businesses are not ready,” he said.

He said access to financing which is needed to help businesses grow, remains difficult particularly for small and medium enterprises (SMEs).

Even as Republic Act 9501 or the Magna Carta for Micro, SMEs mandates lending institutions to allocate a portion of their portfolio for the MSME sector, businesses still find it difficult to borrow for they are considered risky.

Apart from access to financing, the high power costs and regulatory environment are also cited as concerns of businesses.