2015 ASEAN Integration: Benefits and Implications to

Philippine Businesses Prof. Federico (Poch) M. Macaranas

Asian Institute of Management

AIM ASEAN 2015 Project Leader

Presentation to the Philippine Association of National Advertisers (PANA)

6th General Membership Meeting

Makati Shangri-La Hotel

24 June 2014

WHY CARE ABOUT ASEAN 2015?

First, the integration is a fact, and those who are better prepared will

experience more success. This is true for all industries.

More than this, the integration will greatly transform the perception

of Philippine businesses—from a local one to a regional one. This

broadening of scope leave room for plenty of exciting opportunities.

Let’s watch a cartoon explaining the ASEAN in a simple way.

WHAT DID WE LEARN?

1 2 3 4 5

ASEAN has three communities.

The main objective is to raise well-being.

More inputs from ASEAN can be used in local production.

Products can be freely sold anywhere in ASEAN.

People can freely move across the region.

1967

Birth of ASEAN

1977

ASEAN PTA

1992

AFTA

1995

AFAS

1997

ASEAN Vision 2020

1998

AIA & HPA

2003

Bali Concord II

2007

AEC Blueprint

2008

ASEAN Charter

2010

AFTA Realization

2012

Start RCEP Negotiations

2015

KEY MILESTONES ASEAN has actually been upon us for a while. Here are some

ASEAN ECONOMIC COMMUNITY

STRATEGIC SCHEDULE OF THE AEC BLUEPRINT (2008-2015)

Pillar 1 Single Market & Production

Base

• Free flow of goods • Free flow of services • Free flow of

investment • Freer flow of capital • Free flow of skilled

labor • Priority Integration

Sectors • Food, agriculture and

forestry

Pillar 2 Competitive

Economic Region

• Competition policy • Consumer protection • Intellectual property

rights • Infrastructure

development • Taxation • E-Commerce

Pillar 3 Equitable Economic

Development

• SME development • Initiative for ASEAN

Integration

Pillar 4 Integration

into the Global Economy

• Coherent approach towards external economic relations

• Enhanced participation in global supply networks

HUMAN RESOURCE DEVELOPMENT RESEARCH AND DEVELOPMENT

Source: http://www.mckinsey.com/insights/public_sector/understanding_asean_seven_things_you_need_to_know

Source: Daza, T. (2014). ASEAN Economic Community 2015.

Source: FAOSTAT. (2012). Food and Agricultural Commodities Production. Retrieved June 13, 2014, from Food and Agriculture Organization: http://faostat.fao.org/site/339/default.aspx

Source: FAOSTAT. (2012). Food and Agricultural Commodities Production. Retrieved June 13, 2014, from Food and Agriculture Organization: http://faostat.fao.org/site/339/default.aspx

Sources: Alcantara, E. C. (2014). AEC 2015 Prospects: Qualifying for FTA Tariffs. BusinessWorld , p.S1/4. Cruz, J. C. (2014). AEC 2015 Prospects: Services Integration. BusinessWorld , p.S1/2. Cruz, J. C. (2014). AEC 2015 Prospects: Services sector abroad. BusinessWorld , p.S1/3. Noel, C. P. (2014). AEC 2015 Prospects Part 5: Attracting Investments. BusinessWorld , p.S1/3. Noel, C. P. (2014). AEC 2015 Prospects Part One: Overview and Trade in Goods. BusinessWorld , p.S1/6.

Source: 2014 Philippine Investment Overview, Cushman & Wakefield Philippines

Source: 2014 Philippine Investment Overview, Cushman & Wakefield Philippines

Source: 2014 Philippine Investment Overview, Cushman & Wakefield Philippines

Source: 2014 Philippine Investment Overview, Cushman & Wakefield Philippines

Source: 2014 Philippine Investment Overview, Cushman & Wakefield Philippines

As part of the services sector,

ADVERTISING can enjoy what others have

done in the digital age beyond

commercial presence, which

is mode 3 in the Four Modes

of Supply of the GATS.

MODE 1 MODE 2 MODE 3 MODE 4

Cross-border supply

Consumption abroad

Commercial presence

Movement of natural persons

So how will ASEAN 2015

affect the local ad industry?

There are aspects to consider: 3 PRICING QUALITY TIMELINESS

In summary, we can generalize that successful campaigns have the following characteristics.

1 2 3 4 5 6 7

They have a clear purpose and goal.

They aren’t afraid to try out new ideas.

They believe in their people.

They do not lie.

They keep up with changing tastes and technology.

They creatively keep costs down.

They keep at international perspective.

SO OVERALL, what can we say about the ASEAN?

It has great potential to grow in regional and

global influence. Why?

• Indonesia is the 4th most populous country

in the world. Singapore is the 2nd most

competitive country in the world.

• Member states have not engaged in

violent conflict with each other.

• Leading ASEAN countries are thriving in

the post-2008 economic world while the

West remains sluggish.

Nevertheless, there are also several

weaknesses to manage.

• The ASEAN has no peacekeeping force

and no concrete mechanism for enforcing

human rights.

• The ASEAN Secretariat is just one-tenth

of the European Commission.

• ASEAN leaders have a low international

profile compared to, say, leaders of the

Arab League.

ASEAN VIDEO

http://www.youtube.com/watch?v=YrnK5UQDdO0

ASSOCIATION OF SOUTH EAST ASIAN NATIONS (ASEAN)

Maraming Salamat Po

OR KUN

kho khob chai than Kyay Zu Tin Par Tae

Kop Khun

Ca’m On

Terima kasih