PHILIPPINE gains from deeper integration with the Association of Southeast Asian Nations (ASEAN) are expected to be even due to issues related to competitiveness and digital readiness, a government think tank said.
In a report, the Philippine Institute for Development Studies (PIDS) added that the Philippines risks falling behind in reaping the benefits from its regional commitments.
“The progress toward ASEAN Economic Community (AEC) integration reveals a mixed landscape for the Philippines,” PIDS said in a report issued on Jan. 22.
This year, the Philippines is preparing to take the chairmanship of ASEAN.
“Notable gains have been made in trade openness, macroeconomic stability, and human development. However, significant challenges persist in sectoral productivity, climate resilience, and governance,” it added.
PIDS estimated that roughly 46% of the targets outlined in the Philippine Development Plan (PDP) 2023-2028 are unlikely to be achieved, based on indicators from the AEC (ASEAN Economic Community) Blueprint 2025.
This shortfall may be notable on sectors such as agriculture, infrastructure, peace and security, and social protection, “described as critical to regional and global competitiveness.”
“While the PDP is broadly aligned with AEC pillars, gaps remain in translating alignment into results,” it said.
It also noted that the country reduced import tariffs from ASEAN Free Trade Agreement partners to 1.05% in 2022, yet extra-ASEAN trade relative to GDP remains low.
Last year, the ASEAN-China Free Trade Area was signed to bring the region’s economic ties with China more in line with other global arrangement.
“The study notes that ASEAN’s deep trade and investment ties with China — while economically beneficial — also expose the region to spillover risks from geopolitical tensions,” it said.
Instead, it pushed for diversification and regional frameworks such as the Regional Comprehensive Economic Partnership to sustain investor confidence.
“There is no clear ownership or champion for ‘A Global ASEAN’ — a missed opportunity to frame global competitiveness, diplomacy, and sustainability under one coherent agenda,” the authors said.
Meanwhile, the think tank cautioned that a “business-as-usual” stance could erode the Philippines’ capacity to fulfill ASEAN commitments.
In response, PIDS recommended deepening intra-ASEAN economic integration by lowering trade costs, boosting micro, small and medium enterprise participation in regional value chains, reassessing non-tariff measures, and establishing targeted investment corridors.
It also called for faster digital adoption through stronger regulation, wider rural connectivity, digital skills training, and improved government system interoperability.
The discussion paper, “ASEAN Economic Community through the Years: Benchmarking, Emerging Trends, and Future Pathways,” was written by Francis Mark A. Quimba, Mark Anthony A. Barral, and Alliah Mae C. Salazar. — Aubrey Rose A. Inosante
