Tuesday, February 13, 2007 RP needs to find niche amid Asean economic integration
THE Philippines needs to find its niche in the Southeast Asian region once the Association of Southeast Asian Nations economic integration pushes through, a foreign economist said.
“China has long positioned itself for cheap labor and India for providing both high and low-end services. The Philippines still needs to find its edge,” said Nicholas Kwan, Standard Chartered Bank regional head of Research in Asia.
“Positioning will be a major economic issue for the country in the next five years,” he added.
Behind
While the country trails behind the economic boom being enjoyed by China and India, Kwan said there is still a strong potential for the country to be competitive in the global market.
In an interview, Kwan, has identified the electronics sector, e-services, high English proficiency skills and human resources as among the areas where the Philippines can take the lead.
Nurture
However, he said the country needs to draw specifications on how to nurture these advancements.
Meanwhile, Kwan said that unlike China and India, he foresees improved economic development for the Philippines, especially with the high remittances from overseas Filipino workers and US immigrants.
“Stable remittances will be a contributory factor for the continuing strength of the Philippine economy,” he said.
Tougher
Kwan also added that while the global economic landscape is showing “tougher times” due to the slow down of the US market, the Philippines will continue to improve since its economy is not export-driven.
“Unlike Taiwan and Thailand which rely heavily on exports, the Philippines’ growth is driven by domestic demand, such as consumption and investment,” he said.
However, Kwan warns that because of the volatile nature of the economic performance of the world market, the Philippines needs to further strengthen its political and economic platform to cushion itself from any negative effects of the election.
Landscape
He said the country also needs a solid pool of economic analysts that will assist in redirecting the platform of government officials toward improving the economic landscape of the country.
Kwan spoke during the 2007 Global and Philippine economic and investment perspective forum held recently at the Marco Polo Plaza. (MMM)
