Philippines ready for Asean integration – Domingo

MANILA, Philippines - Department of Trade and Industry (DTI) Secretary Gregory Domingo said the Philippines is now ready to take on the challenges and seize opportunities in the upcoming full integration of the Asean Economic Community (AEC) next year.

Domingo, who is leaving his post next month or by November, will not be DTI chief once AEC takes full effect but has assured the country is well-positioned for the integration.

In a statement, Domingo said the country’s stable economic performance along with the various reforms implemented has put the Philippines in a good position to benefit from the upcoming Asean integration.

 “The country is in a sweet spot. We have been experiencing robust economic growth, consistent upward rankings in competitiveness, and successive credit rating upgrades. In fact, last year, the Philippines achieved an average growth rate of 6.3 percent, the highest five-year average during the past 40 years. That’s a very decent number which is probably one of the highest growth rates in this part of the world,” Domingo said.

Domingo said the future is looking bright for the Philippines as initiatives to liberalize the country and contribute to the steady growth of industries have already been put into place.

Among such significant economic reforms which Domingo cited include the amendment of the Banking Act, and enactment of the Competition Law and a cabotage-related law.

 “All of these endeavors are in line with our efforts to accelerate trade and investment in the region, all the while creating an enabling environment for businesses to prosper, and ensuring that every Filipino participates and seizes opportunities in the global market,” Domingo said.

The DTI chief said the country’s manufacturing sector in particular has been growing at an average rate of 8.8 percent annually as a result of the diversification of local products and liberalization.

 “While we may have suffered the initial pains of such a move, it still turned out to be beneficial because these restructuring measures improved the competitiveness of our local industries. Testament to this is our shift from manufacturing garments for lowend brands to highend brands such as Ralph Lauren, Cole Hahn, Coach, and Anne Taylor,” Domingo said.

Based on projections by HSBC and Goldman-Sachs, he said the Philippines is forecast to rank as the 14th largest economy in the world, the fifth largest economy in Asia and the largest economy in the Southeast Asian Region by 2050.

 “We are even poised to surpass other Asean countries. We only need to step up our efforts to improve the competitiveness and capability of our various local industries, as we participate in regional and global trade,” Domingo said.

For the Philippines to live up to such high expectations, Domingo said good governance should likewise be sustained.