Phl preparedness for ASEAN integration doubted

ZAMBOANGA CITY, Philippines - Government trade official allayed doubts of business leaders on the preparedness of the Philippines when the Association of Southeast Asian Nations (ASEAN) implements a deeper economic integration.

Officials of the Department of Trade and Industry (DTI) made the assurance during Tuesday’s regional forum on the 10-country members’ economic integration in the convention center of Grand Astoria Hotel here for business leaders, local government leaders, and government trade officials in Western Mindanao.

The ASEAN Economic Community (AEC) which will be established by 2015 is part of the 2020 vision of the ASEAN member countries. The Philippines is one of the five  founding members of ASEAN and is a signatory of the 2003 ASEAN Concord II or Bali Concord II.

The DTI executives said the key provision of the Bali Concord II is an ASEAN Community  should be established with three pllars,  namely political and security cooperation, economic cooperation, and socio-cultural cooperation to maintain peace and boost prosperity in the region.

The same vision was also reaffirmed during the 12th ASEAN Summit held in Cebu, which also sought to accelerate establishment of the ASEAN Economic Community.

“So this is not for ASEAN countries to compete with each other but rather help each other. We encourage all private sectors to (do a ) soul searching… do the strategic partnership,” said DTI Bureau of Expert Trade Promotion director Senen Perlada.

Despite the assurance, however, concerns remain about the Philippines' competitiveness among ASEAN's 10-member nations, with 616 million households.

Pocholo Rufus Soliven, president of the Regional Chambers of Commerce and Industry (RCCI) for Western Mindanao, said the business sector and the government has to really understand what the integration is all about.

“It can be a boon or bane defending on how we understand and how we can really prepare otherwise we will miss the opportunity,” he said.

Soliven called on the business sector to focus on its competency to address the weaknesses.

“We don’t have to reinvent the wheel, we have to look at our strength and address our weaknesses and take it as an opportunity as well as look at the threat because this is a free flowing of goods at zero tariff and labor,” he said.

According to Soliven, the apprehension is brought about by the little knowledge of what ASEAN integration is all about.

The business leader said the Philippines will contend with several issues to achieve this competitiveness.

Among these issues is the high cost of electricity in the country.

“Our power cost is the most expensive, second only to Japan, and it is most unreliable. So this affects the bottom line of the program,” Soliven said.

“There are so many weaknesses that we have to work on, especially our infrastructure, freight cost because it will be a factor on the price of our product that will pull us down. The factors of production like the light, land, labor cost, all of these will contribute as to how much our product will be sold to our neighbors,” he added.

“We are hounded by all these weaknesses that we have to address. I really don’t know how we can  [take advantage] of  ASEAN integration,” Soliven said.