ASEAN DEBATE

Affirmative Group

Introduction
On August 8, 1967, Bangkok Thailand hosted the Heads of State/Government of Indonesia,
Malaysia, Philippines, Singapore and Thailand, who established AEAN through the ASEAN
Bangkok Declaration. The leaders of the 5 countries found it fitting to coalesce and share in the
responsibility of strengthening the economic and social stability of the region. Eventually, the
founding members of ASEAN were joined by Brunei, Vietnam, Laos PDR, Myanmar and Cambodia.
It was during the 30 th anniversary of ASEAN when the 10 Heads of State adopted the ASEAN
Vision 2020. After the adopetion of the Vision, The Leaders , during the 9 th ASEAN Summit in
2003, embarked on a grand goal to transform the organization into an ASEAN Community.
We talk as if the ASEAN economic integration is a day where the world will change
completely by December 31, 2015. It is simply a reference date for ASEAN countries to achieve
100 percent economic integration. The fact that 99.6 percent of goods in the region are trading
at zero tarrif since 2010 means that the integration is happening now. What we should talk about
is how strong we are to be part of it.
Economist Dr. Cielito Habito, Head of Trade-related Assistance and Development underscored
both the upsides and downside of the integration. The upsides being: Greater economies of scale
mean lower unit costs; technology-sharing will lower costs and prices for all; higher productivity
mean higher incomes; and strong interdependence will create regional cohesion and harmony. A
major downside, however, is that the integration makes it vulnerable to supply chain disruptions.
But one countrys disturbance is not reason enough that we should isolate ourselves. In the end,
the integration is a win-win situation. He also stressed that the ASEAN economic integration is
geared towards complementation rather than competition. It is also about cooperation, where
all ASEAN countries cooperate while being engaged in a healthy competition.

Under the AEC Blueprint, ASEAN seeks to achieve a well-integrated and smoothly
functioning regional financial system, characterized by more liberalized capital account
regimes and inter-linked capital markets. In 2011, the ASEAN Central Bank Governors
adopted the ASEAN Financial Integration Framework (AFIF) to provide a general approach to
the liberalization and integration initiatives under the AEC. The AFIF aims to have a semiintegrated financial market by 2020.
What are the accomplishments so far of financial integration?

Linkage of three ASEAN Exchanges (Malaysia, Singapore and Thailand) via a single
trading platform ---The ASEAN Linkage is expected to enhance the regions profile and visibility to
investors by providing convenient access to all ASEAN markets through an electronic
gateway
Harmonization of prospectuses for cross-border primary offerings of securities under
the ASEAN Equity Disclosure Standards and ASEAN Debt Disclosure Standards (ASEAN
Disclosure Standards)
Development of the Bond Market Development Scorecard, which measures the state of
ASEANs bond market development

 Harmonized Payments and Settlement Systems (PSS).

Convergence in Work Systems, ASEAN Integration and Implications to Professional

Practice:
The test of convergence is highlighted in the current efforts to promote the opening up of
the practice of Philippine professions to foreigners, in the context of the Constitution and related
laws, and its strategic interface with the labor market.
Article XII, Section 12 of the Philippine Constitution of 1987 provides as follows:
xxxThe practice of all professions in the Philippines shall be limited to Filipino citizens, save
in cases prescribed by law. Other provisions of the Philippine Constitution provide for the
sustained development of a reservoir of national talents consisting of Filipino scientists,
entrepreneurs, professionals, managers, high level technical manpower, and skilled workers
(Article XII, Section 1)
The Philippines has entered into commitments through the General Agreement on Trade in
Services (GATS) and the ASEAN Framework Agreement on Services (AFAS), among others. The
Philippines also has Mutual Recognition Agreements (MRAs) with other ASEAN countries which
include the health professions (nursing, dentistry, etc.); accountancy; engineering; and
architectural services. These are existing arrangements which affirm and bolster the countrys
direction towards liberalizing the professional services.
There were actually skepticism regarding the lifespan of ASEAN, such as if it would be able
to achieve its aims and purposes. Despite the challenges that face the organization and the
region as a whole, ASEAN, for all its flaws and limitations, remains as the sole regional
organization in Southeast Asia that embodies the interest of the 20 member-states. The
commitment of the organization to keep its relevance, assert its centrality and remains through
the creation of a regional community by 2015.
The significance of ASEAN integration is evident in the fact that in 2013 the ASEAN
economy grew between 5.3 and 6.0 percent compared with 5.7 percent in 2012. Strong domestic
demand continued to underpin ASEAN economic growth in 2013. The growth in ASEAN-5 stayed
steady at the end of 2013 while Brunei Darussalam and the CLMV economies (Cambodia, Lao
PDR, Myanmar and Viet Nam) grew at relatively higher levels. It is this growth pattern which will
be the foundation of substantial spurts in the ASEAN economy come 2015.

First Speaker
Ladies and Gentlemen, Atty. Batula, Members of the Negative Side Good evening! Before I
start with my speech tonight let me share with you a story that best summarize why the ASEAN
Integration must happen now and Philippines should participate with it.
There once was a farmer who grew award-winning corn. Each year he entered his corn in
the state fair where it won a blue ribbon.
One year a newspaper reporter interviewed him and learned something interesting about
how he grew it. The reporter discovered that the farmer shared his seed corn with his neighbors.

How can you afford to share your best seed corn with your neighbors when they are
entering corn in competition with yours each year? the reporter asked.
Why sir, said the farmer, didnt you know? The wind picks up pollen from the ripening
corn and swirls it from field to field. If my neighbors grow inferior corn, cross-pollination will
steadily degrade the quality of my corn. If I am to grow good corn, I must help my neighbors
grow good corn.
As to the question whether the ASEAN Integration will bring in benefits to the country or
not, we, on the Government Side strongly contends that it will benefit us and it is more
advantageous if it will happen.
To prove our benefit, I, the first speaker from the Government Side will discuss the
Beneficiality and Necessity of the ASEAN Integration and the 2nd Speaker will discuss the
Necessity of the integration.
We contend that the ASEAN Integration is necessary and beneficial due to the following
arguments: 1. It will Address the Growing Globalization 2. Financial Integration is an important
tool to deepen regional financial markets, strengthen regional sources of funding, and reduce the
impact on Asian economies from negative shocks. 3. It will create more jobs 4. It creates a family
approach to problems
Now as to my first point, the ASEAN Integration, specifically the creation of ASEAN
Economic Community, will help address-growing globalization. The world is displaying a
heightened interconnectedness that will influence future political, economic, and business
endeavors. Gone are the days when one country dominated the world economy and where
countries were based in particular geographic locales. With the current status of the country
today, it would be hard for the Philippines to compete globally. Our economy is still in its infancy
stage and the better way for it to mature is for it to learn from its neighboring countries where it
shares almost the same culture and values. According to the DTI, majority of the businesses here
in the Philippines are Small to Medium Enterprises and with the ASEAN Integration coming they
are in the best position to tap and make use of the increase opportunities of an open market. The
ASEAN Integration will prepare small and medium enterprise in entering the Global Market. We
concede that the increased market opportunities will increase competition within the market but
we have to look at the other side of this story. Increased completion will require greater
exchange of technology and innovation and lead to efficient services and cheaper goods. It will
bring about innovations that will boil down to the benefit of the end consumers and the regular
Filipino.
Looking forward, ASEAN shall continue to be the facilitator of better integration of its
members economies into the global trading system and pursue an open regionalism agenda. As
stated in its declaration in December 1997, the Association adopted a vision for 2020,
emphasizing the objective of ...transforming ASEAN into a stable, prosperous, and highly
competitive region with equitable economic development, and reduced poverty and socioeconomic disparities. The goals of this regional integration agreement have been to drive deep
economic integration, accelerate growth and boost development. In doing this, the AEC also
seeks to bridge the development divide amongst ASEAN countries.

On my second point, the high trade complementarity of some ASEAN countries to the
regionindicating that exports of those ASEAN member countries are in high demand in other
countries of the regionpoints to significant gains from further trade within ASEAN.
According to earlier studies conducted in 2009 sponsored by the World Bank, The ASEAN
Integration will increase per-capita incomes by 26 percent to 38 percent in the resource-rich
original group of ASEAN countries compared to the baseline, including the effects of higher FDI.
Greater inflow of FDI with an increase in FDI stocks by 28 to 63 percent
.
According to a joint report issued by the ASEAN Secretariat and the East Asia and Pacific
Region office of the World Bank, integration will help attract FDI, both from outside and
particularly from inside the region. Within the ASEAN region, FDI flows have also increased
markedly from an average of USD 5 billion in the 1990s to USD 13 billion in the last three years.
Attractive factor prices and good connectivity in the region have no doubt played a key role in
drawing FDI to the region. Regional integration has been found to increase the attractiveness of
the region to foreign investors, and ASEAN in no exception. There is also a suggestion that FDI
not only supplies ASEAN countries with necessary funds, but also helps in exporting outside the
region. Foreign investments will do more good than harm in this country. These foreign
investments will result into infrastructures and job generations that will surely benefit the
country and its people.
On my third Point and as I have mentioned in my 2nd point, ASEAN Integration will drive
foreign investments within the country and this will translate into jobs. To quote Secretary
Purisima, The Philippines is well situated. In an integrated ASEAN, we'd be the youngest... the
second largest in terms of population," "The positive demographic structure of the country is an
advantage. By next year, more than 50% of our population will be in working age. They will be
needing our human resource." This contention is even supported by a study conducted by ILOADB, which states that the ASEAN Economic Community could create an additional 3 million jobs
in the Philippines by 2025, compared to a scenario without it.
On my last point, The ASCC will work to ensure that it is the people of ASEAN who will
benefit from all of these integration initiatives. ASEAN member-states are expected to invest
heavily on its peoples education, training, science and technology development, job generation,
and social protection. The ASCC is expected to bring into the peoples consciousness the
acceptance of a regional identity and graduate from being boxed in having a domestic identity.
To be able to successfully do this, the people, should first and foremost, have national
consciousness to be able to promote a regional one and a shared identity. For its part, ASEAN has
heavily encouraged closer people-to-people contact by making travel easier. The entire
integration in 2015 will make ASEAN a bigger and united community that is ready and able to
face all the challenges of a globalized economy.
For all of these reasons, we at the Government Side, strongly supports the ASEAN
Integration and strongly believes it is necessary in order for our country to be ready and well
equipped with increased globalization and that the benefits outweighs the cost. For this, we rest
our case.
Second Speaker

Ladies and gentlemen, assalam wa laikom! Why ASEAN Integration? How practical is it for
the Philippines?
The Philippines earn an investment grade rating upgrade of BB+ to BBB- from foreign
investment rating agencies, means that it is able to fully guarantee its obligation and payment
on time to all its creditors without default. It also improved its Global Competitive Index (GCI),
The economy grew by 7.2 percent in 2013 despite several calamities that hit the country,
higher than the 6.4 percent registered in the year 2012. The manufacturing roadmap initiated by
the current Philippine President Noynoy Aquino is a very promising government plan now on its
final stage of implementation. When this plan is finally put into action sometimes early next year
2015, a resurgence of manufacturing activities will usher in a new robust sector that will
contribute to the countrys overall economy and entry into the highly industrializing category
spearheaded by the Philippine Economic Zone Authority (PEZA) and Board of Investments (BOI).
Regional economic zone are already sprouting within the Philippine archipelago and more
are being develop of which majority are undertaken by the private eco-zone developers. The
timing of the mega-economic deal between the Philippines and Japan on the JPEPA Law (JapanPhilippine Economic Partnership Agreement) which was put into effect six years ago in the year
2008 were already gaining more foreign direct investments with majority coming from the
Japanese investors shifting their regional manufacturing and mother production based to the
country.
Tourism sector is another new key economic driver of the Philippines. Tourist arrival for the
year 2012 registered and met the target of 4.5 million new tourists and the tourism direct gross
value added worth about US$14.8 Billion were reported at the end of 2012. and whats with the
figure LADIES s, it means more hospital sector, construction sector (more hotels), million of jobs,
entertainment sector, foreign direct investments (FDIs) and real estate sector was among the
main channels for investment.
The Philippines is already enjoying a boom in economic activities for the past several years
and is already been noticed by many big foreign investors wanting to expand their market,
manufacturing hub and activities in the country. Our country is on the sweet spot for these
foreign MNCs now seriously considering entering into several business engagements mainly on
huge younger population entering the market as early as 2015.
The increases in the city-migration of Filipino families to the megacity of Metro Manila and
other key regional cities in the Philippines are in direct conjunction to proximity in employment,
schools, hospitals, entertainment / performing arts, shopping malls, government agencies,
foreign embassies, major international airport and seaport.
Mobility and accessibility are the two key major aspects of rapid shift in lifestyle
changes.Innovations and new technologies such as the use of green and recyclable materials,
architectural ideas in the design of sustainable green living, passive indoor cooling, natural
lighting, energy efficient appliances and lights which consume less energy, intelligent water
management, alternative and renewable energy are already gaining wide acceptance all
throughout the ASEAN community. These innovations and new technologies espouse the
practical use of environmentally sustainable green initiatives.

On the other newest Philippine industry updates, it recently passed two (2) important
economic laws that will further cement the countrys position among the ASEAN member states
as the fastest growing economy in the region. The Philippine real estate investment trust (P-REIT)
Law and the opening of the Philippine banking sector to full-foreign ownership of up to onehundred percentage (100%) are key barometers to watch.
Closing Speech

There are always risks the question is, are those risks big enough for us to pass up
an opportunity for growth?
My colleagues have already expounded on the benefits and they definitely outweigh
whatever disadvantage the other side, out of fear, might come up with.
It is high time for this country to be practical to step up and be one with its neighbors
and pursue a more aggressive path towards progress. Whether the Philippines is ready or
not, whether the country is mature enough or not for integration, the fact remains that
whether we join or not, this is happening. Will we choose to be left behind or are we going to
face the challenge of a borderless market head on?
Yes, a few will be negatively affected and we are not discounting that. But this is not
an issue of ALL OR NOTHING. Rather than scrap a very good idea altogether, wouldnt it be
better wouldnt it be more proactive to actually come up with ideas to mitigate whatever
minimal negative effects.
They say that small and medium scale enterprises will suffer but again this is
founded on fear. This is founded on the wrong presumption that SMEs cannot adapt with the
changing market. This does not take into account the fact that integration will provide for
more opportunities for investments and capital which our country, SMEs in particular, need.
Thus, we in the affirmative side, strongly believe that we should be a part of ASEAN
Integration 2015.