Face integration with “coopetition”

CEBU, Philippines - Small and Medium Enterprises are told to change the way they do business in the face of the regional economic integration and adopt an inclusive "coopetition" in order to strongly gain access to the 600 million consumer base in the ASEAN market,

The country's top economist and the USAID head for trade related assistance and development  Cielito Habito told businessmen from the Visayas during the 23rd Visayas Area Business Conference  yesterday, that a change in mindset should be adopted to engage in the ASEAN,  and clustering among SMES, coopetition instead of competition should be instilled coulpled with teamwork, are the main tools to gain a foothold in the ASEAN market.

Habito, who is the former National Economic and Development Authority  secretary, said that the businesses should not be overwhelmed on the country's readiness in the ASEAN integration, as it has already done its part in readying the Philippines for the integration.

In fact, he said the "buzzword" now is no longer "readiness" for the ASEAN, but "what we should be talking about is--if we are [already] strong enough to face it."

In terms of framework and compliance to the Asean Economic Community, the Philippines is in fact ahead with the other member countries. "We are in fact mostly complied."

The Philippine's game plan in the AEC is already ongoing, such as the clustering initiatives and share services facilities and the series of doing business in Free Trade Areas Fora, of the Department of Trade and Industry a; the Industry Road Map of the Board of Investment, Inclusive Finance Program of the Bangko Sentral Ng Pilipinas, the current review of Competition Law in the Congress, Trade Facilitation For SMEs of the Bureau of Customs, among others,

In general, he said the Philippines is 87 percent compliance based  on the AEC score-card. However, there is still 13 percent of policy commitments that are left to be done.

Because of this, Filipino companies particularly the SME sector should join hands together by way of cooperation, clustering to guard its 100 million consumer-based in the Philippines, at the same time grab a large chunk of the 600 million consumers within the ASEAN bloc.

Habito who also served as the country's chief economic planner in the Cabinet during the administration of President Fidel V. Ramos, stressed that the Philippines as an economy is doing something different and is obviously on the right growth direction. What is important for the Philippines to take the spotlight as the regional integration goes into full-swing next year, is the SMEs ability to change the way they do business, by way of "coopetition", rather than "competition."

Professionalizing financial and overall management is a must now for SMEs, he said adding that along with embracing the global standard for business operation, SMEs should shun from "kanya-kanya" attitude, but embrace clustering and "coopetition" culture.

As a country, he said "we are ready." ASEAN integration he said is largely an opportunity of the Filipino businesses to increase their consumer size, therefore dxpect higher growth index,

He also urged SMES, which comprise of over 90 percent of the Philippine business profile across industries, to study the opportunities in doing businesses within or outside ASEAN--the Free Trade Agreements that the Philippines has entered in, and avail of the duty free priviledges.

He said, while ASEAN integration offers exciting opportunities for businesses, SMES should be able to do its "homework", otherwise they will fall into the other side of ASEAN integration impact--being swallowed by overwhelming competition.

Over 300 businessmen from the Visayas, mostly members of the 17 chambers attended the 23rd VABC Conference held yesterday at the Oakridge Business Park in Mandaue City.

The VABC Conference is part of the Mandaue Business Month 2014 flagship events hosted by the Mandaue Chamber of Commerce and Industry. (FREEMAN)