Entrepreneurship in Relation to ASEAN 2015

ONE more year and the member countries of the Association of Southeast Asian Nations (ASEAN) are gearing towards freer and wider market in its Economic Integration pushing for the realization of the ASEAN Economic Community (AEC). Such countries are Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Lao PDR, Myanmar and Cambodia;  with China, Japan, and South Korea in the ASEAN Plus.

To those who are not so familiar with the ASEAN Economic Integration, let me put it in simple terms – “free-flow”. With it, people would be allowed to purchase, sell products and services, work and invest in any of the member countries of the ASEAN with lesser restrictions unlike what we are used to – strict protectionism. Instead of having to spend so much in terms of tariffs and complying with bloody requirements, strict procedures and other trade burdens, trading would be a lot easier, because the aim of the ASEAN is to have zero or near zero trade barriers. This would be enjoyed by all ASEAN member countries.  In addition, Southeast Asians wanting to work overseas (in ASEAN countries) would experience easier processes. Free-flow of work-force would happen.  Investors could capitalize their resources freely as they expand from one nation to another nation in the ASEAN.

Entrepreneurs would directly benefit from the ASEAN Economic Integration. There is a lot to be excited about for them.

The Philippines would be able to compete in the global setting through the one market and production base of the ASEAN. In this sense, there would be unity and more productivity among the member countries. Ironically, as member countries compete in terms of the ability to offer lower prices to consumers brought by removing or lessening trade barriers, the whole of ASEAN could benefit as a group – bonded together in creating economic progress. The free-flow would give reason for entrepreneurs to be able to cut costs for their production materials, equipment and manpower, because they would be able to get it at significantly cheaper amounts. They could have the needed edge to compete with the other larger companies in the whole world.

At a regional scale, the lending and borrowing from banks would be easier as it would have to adjust with the changes and accompany the needs for capitalization of entrepreneurs. I believe that bank transactions between and among ASEAN countries would be a lot busier compared before and it would mean significant money coming in and out of the country.

The country’s local government units (LGUs) are being improved to become business-friendly and competitive. LGUs have programs that streamline Business Permits and Licensing System (BPLS) and develop the economy through the Local Economic Development (LED) programs. In this way, the country’s budding entrepreneurs who would like to take the opportunity to do business in the ASEAN would have better access to acquire the necessary documents they need to possess in order to establish legitimate enterprises.

Free-flow could not flourish if not for state-of-the-art infrastructure as well.  Entrepreneurs know the hassle of transporting precious goods from one point to another.  Even though we already have some notable infrastructure, there is still so much that need to be improved. With the ASEAN Economic Integration, lagging behind would not be an option. The budget and plans in developing infrastructure would have to be applied, so that the country would be able to connect with the member nations internally and externally – roads, bridges and ports would have to be made.   Entrepreneurs would be able to transport their products in the country more safely and accessibly, in all of its provinces and cities and of course out of the country to all other ASEAN countries. Consequently, entrepreneurs that focus on the tourism sector would benefit from the ease of travel. Good news for all businesses in our tourist spots.

The ASEAN Economic Integration would also mean more opportunities for the country to develop its communications and information technology facilities. In this age of high technology, entrepreneurs could benefit even more from the World Wide Web when they try to compete with the tigers and reach their customers in the global setting. We know of it as entrepreneurs have established their on-line stores which are gaining more and more attention from customers who would rather remain in the comforts of their homes and order the latest products at best deals!  Entrepreneurs who are home-based and who are mostly just starting up do business on-line. Why not?  Communications brought by the internet has proven to be very effective and efficient.

With free-flow, the market is even wider and tougher and we could expect even greater – tons of exportation and importation dealings happening from one corner of the world to another with the use of the internet. Imagine how else entrepreneurs could speed up the increase of their sales, but with the use of the continually developing communications and information technology! Almost everything could be just one click away from happening.  In order to “go with the flow”, the free-flow would have to be accompanied with improved communications and information technology.

Investors coming in the country for expansion would provide entrepreneurs that sub-contract for more opportunities to do business. Entrepreneurs who would like to invest in another ASEAN country would be encouraged and would enjoy none, if not fewer restrictions.

The Philippines would have to adjust and better its competitiveness as it would need to keep up with the requirements of the AEC and integrate with all member countries.                  There would be no other sensible way, but to improve. Sink or swim they say, but I am confident, our country’s entrepreneurs would have what it takes to take advantage of the free-flow and run with the tigers.

 

Reference:

“Rising as one: The Filipino Nation Towards The ASEAN Economic Integration” by Local Government Academy