Tuesday, August 21, 2007 PCCI bats for ‘unified’ Asean firm By Malou M. Mozo Sun.Star Staff Reporter
THE creation of a unified Association of Southeast Asian Nations (Asean) multinational firm, particularly in the furniture sector, will increase the chances of industry players within the Asean bloc to expand internationally and gain global competitiveness.
Philippine Chamber of Commerce and Industry (PCCI) president Samie Lim said he will personally initiate the activation of the Asean multinational firm bid in the furniture sector. He said the plan already gained positive responses from stakeholders during the Asean Furniture Industry Club Convention in Singapore recently.
“This will be a complementation program. An Asean formula of co-ownership,” Lim said.
The idea of the Asean multinational company will get industry players in the furniture, food and tourism sectors to pool together and commit to be part of the group and invest in different countries within the bloc.
The Asean consists of the Philippines, Brunei, Indonesia, Laos, Singapore, Malaysia, Vietnam, Cambodia, Thailand and Myanmar. The bloc also includes Japan, China and Korea.
Lim said that if a furniture company, for example, will participate in the loop, he owns a stake in an Asean-owned furniture store in Singapore, for instance. But, if an Asean furniture store will be based in the Philippines, 49 percent of which will be owned by the Filipino store owner.
An Asean furniture brand concept will offer different furniture products made by the Asean members.
Lim is optimistic that the concept will be beneficial for the Philippines, especially Cebu as the center of sought-after furniture products.
Convince
This is why he will convince the furniture makers in Cebu to participate in the Asean multinational bid in order to fully capture the Asean market and expand its market base, given the decrease in demand of furniture products in the United States.
“This will not be mere lip service,” said Lim, who has been active in the Asean Business Council.
In an interview with reporters, Lim expressed willingness to pursue the idea even if it means using his financial resources to organize the Philippine base of the Asean multinational bid.
He expects the Asean multinational firm to be formally organized in the country within the next two years.
Aside from furniture, Lim, who is also one of the largest players in furniture retailing in the country through his chain of furniture stores called Blims, will also invite other players in sectors like food and tourism to capitalize on this opportunity.
In a separate interview, Cebu Furniture Cebu Furniture Industries Foundation Inc. (CFIF) members and officials welcomed the plan, saying the idea could boost the furniture industry, amid the challenges it is facing.
CFIF president Michael Basubas said while Asean neighbors like Thailand, Indonesia and Vietnam are competing with the Philippines in the furniture business, pursuing the Asean multinational corporation could provide more advantages, like an increase in the interest of Western buyers that will eventually lead to growth in demand and supply, as well as the free flow of raw materials.
“We can not be an island, eventually we need to integrate with our neighbors,” said Basubas.
