Phl urged to fast track readiness for AEC

MANILA, Philippines - The Philippines must now prioritize three major areas and apply relevant measures to fast track its readiness for the Asean Economic Community (AEC), which arrives a mere two years from now.

The three major areas requiring rapid improvement are investment and trade, the national single window, and transportation, according to Federico Macaranas, professor at the Asian Institute of Management.

At a recent forum on the Philippines’ preparedness for the full implementation of the Asean free trade agreement (AFTA), Macaranas said the country’s AEC scorecard in these three key areas still needs upgrading for the country to become truly regionally competitive and integrated.

“Being ready means implementing the national commitments in the various documents signed by the country, amending existing laws and crafting new ones, completing the implementing rules and regulations, and interpreting policies in a regionalized setting,” explained Macaranas.

Moreover, it requires a sweeping change in the mindset of the entire bureaucracy, encompassing the executive, legislative, and judicial branches of government.

 All stakeholders should also be prepared to “reap the rewards and face the consequences of a more politically, socially and economically integrated ASEAN,” Macaranas continued.

It is likewise important to create awareness of what integration means and build Filipino firms’ cooperative and competitive abilities “to maximize our benefits from regional engagements.”

Getting down to specifics, Macaranas recommends putting investment promotion agencies under one agency with a strong leadership, and creating an inter-agency committee to coordinate the various IPAs’ actions and plans.

To improve the operational environment and investment climate, the IPAs should closely collaborate with national agencies and local government units in automating and streamlining business procedures, making these procedures and guidelines transparent, implementing clear and consistent policies, and providing assistance to prospective investors.

Meanwhile efforts to install a National Single Window (NSW) should be aligned and merged with the more advanced automation efforts of some government agencies.

Macaranas also pointed out the lack of a sustainability plan for the NSW. “While the Philippines’ centralized funding of NSW assures implementation of this project for its first two years, the succeeding plans to sustain the project are unclear. The government needs to address this sustainability issue,” he added.

In the field of transportation, the professor said efficient public-private partnership is a vital factor for modernizing port infrastructure and operations.

At the same time, he called for the removal of conflicts of interest, noting how a regulatory agency also owns certain  infrastructure, creating an unfair playing field.

“Review the cabotage policy in light of the need for more competitive transport and logistics in the country,” he further said.

The Philippines can do much to reap the benefits of being part of the AFTA, he continued. This requires that the government and the private sectors work hand in hand in effecting a mindset change, instituting policy reform, and implementing more effective programs and projects.