Sy-Coson: PH SMEs to benefit from Asean integration

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MANILA—Philippine small and medium enterprises can compete in a regional marketplace and benefit from the creation of a single economic community within Southeast Asia by 2015, business leader Teresita Sy-Coson said Friday.

Sy-Coson, a member of the Asean Business Advisory Council and vice chair of SM Investments, said small and medium enterprises, or SMEs, in the Philippine supply chain would benefit from closer economic integration in the Association of Southeast Asian Nations.

“These companies have been constrained by geographical and trade barriers for the longest time,” Sy-Coson said in a press statement.

“With Asean integration, they have an opportunity to grow into regional players, including those in the supply chain industry,” she added.

The statement comes amid some concerns that SMEs may be left out once the Asean Economic Community is established as the perception is that only the big players have had sufficient preparation for regional economic integration.

The Asean Business Advisory Council provides private-sector feedback to Asean in promoting closer integration. The grouping, which includes 10 emerging economies, is in the second phase of an 18-year effort to achieve a balanced regional development in infrastructure, labor, technology, trade and tourism.

By 2015, the member countries hope to complete physical transport and communication infrastructure such as roads, railways and air and sea links. This will boost the flow of goods and services within the region and lead to increased economic interaction.

“We expect a more robust regional logistics industry,” said SM vice president for corporate governance and risk management Gil Gonzales, who sits on the Asean advisory council. “SMEs can grow beyond national boundaries and these include Filipino companies.”

These enterprises can tap into some of the fastest-growing economies in Asia and benefit from increased market access to the four new members of Asean – Cambodia, Laos, Myanmar and Vietnam.

These four countries are the target of a region-wide initiative to close the so-called “national development gap” by bringing them up to speed with their faster-developing neighbors.