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    What Is ASEAN?

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    John Rey
    ASEAN is an economic union comprising 10 countries in Southeast Asia established in 1967. Its goal is to advance economic growth, social progress, and cultural development among its members and to provide opportunities for small and medium enterprises. The ASEAN Economic Community was formed in 2015 to create a single market allowing free movement of goods, services, investment, and skilled labor. However, the majority of Philippine businesses are SMEs who now face greater competition within ASEAN and must adapt to remain viable.

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    What Is ASEAN?

    Uploaded by

    John Rey
    50 views9 pages
    ASEAN is an economic union comprising 10 countries in Southeast Asia established in 1967. Its goal is to advance economic growth, social progress, and cultural development among its members and to provide opportunities for small and medium enterprises. The ASEAN Economic Community was formed in 2015 to create a single market allowing free movement of goods, services, investment, and skilled labor. However, the majority of Philippine businesses are SMEs who now face greater competition within ASEAN and must adapt to remain viable.

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    ASEAN is an economic union comprising 10 countries in Southeast Asia established in 1967. Its goal is to advance economic growth, social progress, and cultural development among its members and to provide opportunities for small and medium enterprises. The ASEAN Economic Community was formed in 2015 to create a single market allowing free movement of goods, services, investment, and skilled labor. However, the majority of Philippine businesses are SMEs who now face greater competition within ASEAN and must adapt to remain viable.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    50 views9 pages

    What Is ASEAN?

    Uploaded by

    John Rey
    ASEAN is an economic union comprising 10 countries in Southeast Asia established in 1967. Its goal is to advance economic growth, social progress, and cultural development among its members and to provide opportunities for small and medium enterprises. The ASEAN Economic Community was formed in 2015 to create a single market allowing free movement of goods, services, investment, and skilled labor. However, the majority of Philippine businesses are SMEs who now face greater competition within ASEAN and must adapt to remain viable.

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    Download as pptx, pdf, or txt
    of 9

    What is ASEAN?

    • ASEAN stands for the Association of Southeast


    Asian Nations.
    • It was established on August 8, 1967, in Bangkok,
    Thailand, with the signing of the ASEAN
    Declaration (Bangkok Declaration) by the
    founding members: Indonesia, Malaysia,
    Philippines, Singapore and Thailand.
    • Brunei Darussalam joined on January 7, 1984;
    Vietnam on July 28, 1995; Laos and Myanmar on
    July 23, 1997; and Cambodia on April 30, 1999.
    Cont.
    ASEAN –member countries are the following:
    • Brunei
    • Cambodia
    • Indonesia
    • Laos
    • Malaysia
    • Myanmar
    • Philippines
    • Singapore
    • Thailand
    • Vietnam
    What is AEC?
    • ASEAN leaders agreed to establish the ASEAN
    Economic Community or AEC in 2003 as the
    realization of the end-goal of economic
    integration.
    • AEC is envisioned as a single market and
    production base, which means businesses have
    to operate under a trade order characterized by
    freer flow of investments, capital, labor, goods
    and services.
    • The ten countries together create a market of
    more than 600 million people.
    Cont.
    • Under a single market, goods produced in one
    country can easily be moved and sold in another
    country.
    • The same thing goes for labor, investments,
    capital and services.
    • It is also good news for entrepreneurs, because
    they can set up business in any country in the
    community.
    Cont.
    • The challenge for the Philippines is to help
    business owners, particularly SMEs, remain
    competitive in the midst of tougher competition
    under a single ASEAN market.
    • It is a challenging task given that according to
    government data, 99.6% of enterprises in the
    Philippines are micro, small and medium-sized.
    Cont.
    “What the ASEAN trade agreement means is that
    our local companies are going to need to gear up
    because some of the protections they have for the
    business in the Philippines against businesses in
    other countries are going to go away.”
    - Steven DeKrey, president of the Manila-based
    Asian Institute of Management
    Small business, big reach
    • Number of Philippine enterprises (777,687)
    • Micro enterprises make up 91.3% (709,899); small
    enterprises 7.9% (61,979); medium enterprises 0.4%
    (2,786); and large enterprises also 0.4% (3,023).
    • The micro, small and medium-sized companies
    provide 62% of all jobs in the country.
    • Contributes 35.7% of value-added to the economy.

    (SOURCE: NATIONAL STATISTICS OFFICE, MSMED


    COUNCIL)
    Classification of MSMEs
    MSMEs are defined as those whose total assets
    (excluding land) fall into one of the following
    categories:

    • Micro – Php3.0M and below


    • Small – Php3,000,001 to Php15,000,000
    • Medium – Php15,000,001 to Php100,000,000
    Problems of SMEs in the Phils.
    • Lack of financing over the years. SMEs have had
    no choice but to do what they’ve done in the
    past to raise funds – borrow from relatives, sell
    assets or borrow from the informal sector.
    • Antiquated labor laws
    • Challenging business environment

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