Rex Bryann Zambra

11- HUMMS 6 GARDNER

POLITICAL SCIENCE POSITION PAPER

Is ASEAN Integration is Beneficial to the Philippines?

Philippines has been boosting it’s economy today, because of the ASEAN integration and it gives a
good benefit to the Philippines. According to Philippine Daily inquirer, The Philippines has benefited
from a substantial increase in trade and investments with the economic integration of the Association
of Southeast Asian Nations (ASEAN) which created a wide choice of goods for consumers thus
supporting local businesses to expand overseas.

According to Zaldy Patron, Executive Director of the Department of Foreign Affairs (DFA) Office of
ASEAN Affairs, said the creation of ASEAN Free Trade Area (AFTA) has allowed products of
ASEAN countries gain access to the Philippine market.

“Now with AFTA, you go to supermarket and you see Indonesian, Malaysian, Thai products. In the
same manner, if you go to their countries, you can also find (Philippine brands) Jack ‘n Jill,
Penshoppe, Oishi,” he said in a forum.

The ASEAN member states, which include the Philippines, signed the AFTA agreement in 1992. It
covers trade in goods, trade in services, investment and other areas of cooperation.

“And (the benefits of ASEAN economic integration are) not only in terms of trade but also in terms of
investments. (Conglomerate) San Miguel Corp. is in Indonesia, Julie’s Bakeshop and then you have
Kopiko also from Indonesia coming here,” he added.

ASEAN also groups Indonesia, Malaysia, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar and
Cambodia.

“I think it’s good. There is a direct correlation between the ASEAN economic integration and the
economic growth of the members of ASEAN,” Patron noted.

Likewise, Patron said the Philippines has benefited from ASEAN tourism strategy to promote the
region as a single tourist destination.

“(Also) visa-free travel to the ASEAN member states… They can come here without visa. The
reduction of travel cost so that made it affordable to go to these countries as well,” he said.

Patron further said the Philippine hosting of the ASEAN Summit and Related Meetings this year also
boosted local tourism and the country’s Meetings, Incentives, Conventions and Exhibitions (MICE)
industry.

“They say tourism is good stimulus of the economy because when visitors come, they stay in lodging
places, in hotels and they spend. And they also hire transportation services, they buy your SME
(small and medium enterprises) products, souvenir products,” he added.
Here are a few reasons on how the ASEAN’s economic integration can benefit every Juan:

Opportunity to buy cheaper and wider range of goods and services from within the region.

Ever wanted that famous snack from Thailand? Or even those lovely coffee beans from Vietnam? With
the help of ASEAN integration, goods and services across the region will easily become more accessible
as tariffs are lowered or even eliminated for goods traded within the region.

Opportunity to travel within the region.

We all have a desire to wander and travel, but not everyone is blessed with the resources or even the
time to roam around the world. Thankfully, it will become easier for us to travel within ASEAN since it
will be relatively cheaper, VISA-free, and most importantly, more ways to travel by air, sea and land. The
ASEAN region is blessed with natural resources, infrastructure, etc. It’s almost like seeing a glimpse of
how magical the world really is.

Opportunity to earn more.

Since the region’s 10 economies are integrated into one large economy, the move could lead to larger
market opportunities for intra-ASEAN trade in local materials and products, thereby creating more job
opportunities across the ASEAN, meaning more foreign investments in our country, and for business
owners, more potential customers to sell their products to.

Opportunity for more jobs locally.

Similar to the one stated above, an integrated and open ASEAN economy and allows for more cross-
border investments that will mean more job opportunities not only in our country but across the ASEAN
region. It is important to note that one of the goals of the AEC is to decrease unemployment and
underemployment across all ASEAN Member States.

Opportunity to work in any country in the region.

Having a job while being able to immerse yourself in a different country and culture is what most of us
can only dream about before. Thankfully, ASEAN is already paving the way for us, so we can make our
dreams turn into a reality. Through the Mutual Recognition Agreement, skill-sets honed in one ASEAN
country will be held with equal value in another ASEAN Member State.
HSBC said that with export figures conservatively expected to surge five-fold to $329 billion in
2050, the Philippines remains one of the fastest-growing economies in Asia.

It noted that the country was continuing a positive growth trajectory that started in the first
quarter of 1999. The bank reiterated that HSBC Global Research forecasts placed the Philippines
as rising to become the world’s 16th largest economy by 2050 given its demographics and rising
education standards.

HSBC’s latest outlook on the Philippines accompanied new forecasts for the Asia Pacific region,
laid out in the bank’s Trade Winds report.

In the report, HSBC said Asia was poised to ignite a decade of global trade growth and be the
starting point for a quadrupling of worldwide exports to an estimated $68.5 trillion by 2050.

It forecast that the cost of shipping would fall, driven by a combination of larger vessels and the
expansion of shipping lanes.

New airports, improvements in energy efficiency and further streamlining of border control
processes will speed up trade and reduce air freight costs, HSBC added.