TRACKING THE

PHILIPPINES READINESS:

AN OUTLOOK TO ASEAN

2015

(TERM PAPER Econ3c)

Submitted by:

Maricar C. Lagura BSA-3

Monique Therese Secuya BSA-3

Joergen Mae Micabalo BSA-4

Submitted to:

Sir Illeyt Silva

I. Rationale

Philippines hailed as Asia’s emerging Economic Tiger as said in the

recent World Economic Forum East Asia is now one of the country’s set

foreign investors are eyeing for, according to the Asian Development Bank

despite the calamities and earthquakes that led to infrastructure devastations

and resource challenges. The Philippines has been able to attain a 6.4% GDP

and expected to rise up unto 6.7% this year. By this year 2015, the Philippines

was said to face one of the large scale changes in economic history of Asia

and that is the ASEAN Integration, during August 8, 1967 in Bangkok,

Thailand the leaders of the state of Indonesia, Malaysia, Singapore, Thailand

and Philippines declared establishment of Association of Southeast Asian

Nations or also known as the ASEAN. This five Southeast Asian agreed to

unite their countries development efforts through institutionalized cooperation

and action points which could potentially lead to a well-develop region seeing

that there was similarity of culture, history, challenges and interest among

them, this five countries believed that as united members of ASEAN they

could all achieve in developing, peaceful and wealthy economy. Philippine

being a member of ASEAN continuously seeks for more economic

opportunities inside and outside the national market. Because of this desire

the Philippines has agreed with the other nine ASEAN member countries to

pursue one of the keys in order for each of them to attain their economic

aspirations the ASEAN Economic Community through ASEAN integration. As

one, the heads of the state of ASEAN member countries developed and
declared ASEAN Economic Community Blueprint that is intended to fully

actualized this year 2015 and fully implemented by 2016. The ASEAN

Economic Community has a goal where a vision of unification and single

production base region. An economic unity in cooperation of the region is

highly competitive and has the ideal room for equitable economic

development, an economic region that is fully integrated into the global

economy. In the ASEAN economic community each member country aims to

build a single market and production base where the following must be attain

free flow of goods and services, AFTA or ASEAN Free Trade Area has been

established intended to remove tariffs and other form of trade barriers that

consequently block efficient system of various trade processes. In addition, to

fully realize the liberation of movements of goods and services, harmonization

and revision of standard service qualifications, technical regulations, and

conformity assessment procedures shall take place. And also attains in

creating free flow of investment, skilled labor and freer flow of capital.

According to, Dr. Steven DeKrey, president of Asian Institute of Management

the ASEAN economic community will be helpful and beneficial to member

countries that are bound to fulfill their commitment in realizing the integration.

However, the success always depends on their preparations. Thus, this

concern led us in questioning the preparations of the Philippines.

 The importance of studying this issue is to know on how prepared the

Philippines for the full implementation of the ASEAN. As what Federico

Macaranas explained in the Philippine Star dated November 18, 2013 “being

ready means implementing the national commitments in the various

documents signed by the country Philippines, amending existing laws and

crafting new ones, completing the implementing rules and regulations, and

interpreting policies in a regionalized setting.” It is necessary to prepare since

it requires its robust expansion through this year.

Nevertheless, this issue gives more value on knowing on how prepared

the Philippines is by tracking the said country and looking for various

information that would satisfy this study. And also giving its significant answer

on what are the lacking qualities that the Philippines needed in order to be

fully prepared in the ASEAN since according to Philippine Institute for

Development Studies and Institute for Labor Studies in the reports that the

effects of the ASEAN Integration in the Philippines are unlikeable.

Hence, we come up on this study that these unlikable effects must be

addressed as a result this specifies the area of our study. There is sufficient

answer that indicates that these unlikable effects would be agreeable.

Therefore, it is important to look at what some of these problems are and

attempt to offer proper actions and immediate time.

II. Major Problem

The study seeks to give detailed presentation on the issue entitled

“Tracking the Philippines readiness: An outlook to ASEAN 2015 and attempts

to answer the following questions:

 What should the Philippines do in order to address the unlikable

effects?

 What are the following things that needs to be solved by the

Philippines itself particularly the government? And how to

address this unsolved problems?

 Is the Philippines fully prepared for ASEAN by 2016?

III. Related Literature

One of those unlikable effects is that Local industries are highly

affected if the preparations is not become highly prioritized in one of the

government’s concern and also unwanted atmosphere of competition on

SME’s and MNP’s. Department of Trade and Industry, Adrian Cristobal Jr. has

also stated that the loss of tariff protection could hurt agriculture particularly

the sugar.

Lack of infrastructure, alleged non-inclusive growth, and maritime

disputes: these are just some of the issues still plaguing the Philippines

despite its economic success story. But some businessmen express doubts in

the ASEAN stressed by ANC Business Nightly, May 22, 2014.

According to the Philippine Institute Studies we can only take

advantage of the upcoming ASEAN Integration if only the following things

solved by the Philippines itself particularly the government corruption,

inefficient government bureaucracy, inadequate supply of infrastructure, policy

and stability, and problems regarding access to financing and unjustified tax

regulations. Policy makers have to address some real problems. First, on the

fiscal side, the government has to make the tax system in sync with the rest of

the region. The high cost of doing business and poor governance, there has

been some improvements. The government has to continue to invest in

human capital to make sure that the growing labor force is healthy and is

equipped with the appropriate education and skills that can compete with the
rest of the global work force stated Macaranas in Philippine Star dated

November 18, 2013. From the Department of Trade and Industry Secretary

Gregory Domingo also emphasized in dti.gov.ph the need to place micro,

small and medium enterprises (MSMEs) at the front and center of regional

trade agenda. In the Philippines, MSMEs account for about a third of the

gross domestic product, represent 98% of all registered businesses, and

employ more than 50% of the entire domestic workforce. Among our key

priorities is advancing specific and concrete interventions to promote the

participation of MSMEs in regional and global markets, either through global

value chains (GVCs) or as direct exporters of finished goods and services.

We are quite successful in doing so during the APEC Ministers Responsible

for Trade (MRT) meeting. Member economies agreed to bolster the ability of

MSMEs to participate in cross-border business through the ‘Boracay Action

Agenda to Globalize MSMEs.

He added, “We have tripled our infrastructure budget from around

P165 billion in 2010 to P535 billion this year.” Well, that clarifies our thoughts

that nowadays, we have seen many trains, bridges, much better roads, and

skyways that some are finished and some are still under

construction. According to Domingo, that by the end of next year, we will feel

the benefits of an improved infrastructure system. He concluded that “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,”

 The Philippines is well positioned to seize opportunities and benefit

from the upcoming full integration of the ASEAN Economic Community (AEC)

next year, as it is buoyed by an impressive economic performance sustained

by the various economic reforms, according to Department of Trade &

Industry (DTI) Secretary Gregory Domingo. Domingo (left) joined Samuel

Lundquist (right), Wharton Vice Dean of External Affairs, during the Wharton

and Penn Alumni Association meeting held on 07 September 2015 in

Bonifacio Global City, Taguig.

V. Conclusion

Therefore, we concluded that the Philippines is fully prepared in the

upcoming ASEAN by 2016. Since, we have seen its preparation through the

infrastructure development system by tracking them not only that, but for

some reasons that has been said. The Philippines is well positioned for that

reason the fact that the unlikeable affects have been addressed and have

showed massive improvement this year. The Philippines is currently facing a

bright future since the country is experiencing a healthy economic

development.

On the other hand, some business men still express doubts but all they

must do is to set up all the necessary requirements needed. But the fact that

the ASEAN will be fully implemented by 2016 we could finally say that the

Philippines is ready due to some information and facts that has been stated

and gathered.

The Philippines must focus on improving in better government

management and its agricultural resources. They must improve their quality

and productivity which will enable businesses to compete with other entities.
VI. Reference

 asean.org

 Philippine Star dated November 13, 2014

 ANC Business Nightly, May 22, 2014

 Sun star

 http://www.gov.ph/2015/09/15/ph-ready-for-full-asean-

integration-in-2016/