MANILA,
Philippines - “We are not ready.”
This
was the blunt assessment of business leader Manny V. Pangilinan on the
Philippines’ readiness for the ASEAN economic integration in 2015, warning that
the Philippine government must now act to prepare local industries, specially
the agriculture sector, to compete in the new economic regime.
The
PLDT chairman admitted he is worried that the Philippines has not grasped the
wide-ranging impact ASEAN Economic Integration will have on jobs and income.
The
Philippines has committed to integration by 2015, which aims to create single
market and production base and to develop ASEAN as a highly competitive economic
region.
An
ASEAN Economic Community (AEC) briefing paper identified the following areas of
cooperation: human resources development and capacity building; recognition of
professional qualifications; closer consultation on macroeconomic and financial
policies; trade financing measures; enhanced infrastructure and communications
connectivity; development of electronic transactions through e-ASEAN;
integrating industries across the region to promote regional sourcing; and
enhancing private sector involvement for the building of the AEC.
“In
short, the AEC will transform ASEAN into a region with free movement of goods,
services, investment, skilled labor, and freer flow of capital,” the AEC
briefing paper added.
While
the objectives are laudable, Pangilinan said the country should be aware of the
impact on jobs, income and food security.
“Frankly
– we are not ready for this ASEAN Economic Integration,” Pangilinan said in an
interview with TV5.
Using
the Philippines’ sugar industry as an example, Pangilinan pointed out local
producers will not be able to survive the onslaught of cheaper priced imports.
“If tariffs go down by the end of 2015 as mandated by the ASEAN Free Trade
Agreement – then we have the ability to import sugar that is much cheaper from
Thailand,” Pangilinan said, warning “so paano yun? It will kill the sugar
industy.”
Nonetheless,
he said the government can still act: “Will we allow the sugar industry to get
slowly killed by that kind of regime?” and added, “By making our sugar industry
more efficient, we can be competitive. Otherwise, we’ll just be out of
business.”
Impact on labor, incomes
The
bigger concern is the impact on jobs and individual income.
“The
practical realities are really very serious. I mean, you could be putting
people out of work, right,” he said, “that’s where the rubber hits the road,
isn’t it?”
He is
skeptical as well on the claim that ASEAN Economic Integration will promote
mobility of labor, specially skilled labor and health workers, among member
countries. He believes each country would come out with regulations to protect
their own workers.
Using
Philippine doctors and nurses as an example, Pangilinan expressed concern that
other ASEAN countries would come up with policies favoring their own nationals
first for skilled jobs.
“Will
there be, as a matter of regulation, a requirement to be accredited in the
ASEAN countries? There lies the possibility of lack of mobility,” he said,
adding that “because one particular country, I would imagine . . . will try to
protect its own doctors and nurses.”
Maricel
Halili
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
No comments:
Post a Comment