‘Resilient Asean presents growth opportunities for Phl firms’
The fast growing Southeast Asian region presents opportunities for Philippine companies to grow and expand, Ayala Corp. president and COO Fernando Zobel de Ayala said yesterday.
In his keynote speech during the Business World-Philippine Airlines ASEAN Regional Forum, Zobel said despite the challenges in the global economy, the Association of Southeast Asian Nations has remained resilient – something that Philippine companies should take advantage of.
“Clearly, ASEAN presents opportunities for growth,” Zobel said.
He noted that with 625 million people, ASEAN presents a compelling opportunity for Philippine companies. The population is expected to reach
700 million by 2025, he added.
“ASEAN had over five percent growth in the past decade and greater integration could boost growth by up to seven percent by 2025,” Zobel said.
However, he said the Philippines needs to maintain a strong business environment so that local companies can grow.
“First, we need to maintain a strong sustainable business environment, continuity in the governance structure and fiscal reforms that spur growth,” he said.
The Philippines also needs to maintain its traditional areas of strength such as the information technology and business process outsourcing sectors, while enabling other growth opportunities such as micro, small and medium enterprises.
For companies to succeed internationally, Zobel said there is a need to harness the global Filipino workforce, which is one of the strongest advantages the Philippines has over its peers.
“The global Filipino workforce is one of the strongest advantages that we have – language proficiency, talent and productivity. Filipinos are the best in terms of global adaptability because of their resilience and they are respectful of other cultures and are highly adaptable,” Zobel said.
For Philippine companies who want to expand in the region, Zobel said they need to develop in-depth market knowledge across borders and strategic relationships with ASEAN counterparts.
“Businesses will need to remain cognisant of executing ASEAN strategy. Finding a suitable local partner is essential in navigating local culture,” he said.
In all, he said Filipino businesses are in an exceptionally strategic position to compete on a regional global scale.
“We have stronger balance sheets, enhanced expertise and progressive thinking. Businesses are increasingly diversified,” Zobel said.
He cited companies that have successfully expanded in the region. These are the Gokongwei family’s Universal Robina Corp., San Miguel Corp., the Carlos Chan Group, United Laboratories and Philippine Airlines.
Yesterday’s forum sought to help companies and the business community in general gain deeper knowledge on the opportunities in the growing ASEAN region.
During his opening remarks, Miguel Belmonte, Business World and Philippine STAR president, expressed hope that companies would be more equipped after the forum.
“We hope to draw lessons from top executives who will share how they steered their companies in similarly challenging environments,” he said.
He said that in a time of great uncertainty, “we usually take comfort in the wisdom of companies that have outlived their contemporaries.”
In his introduction to Zobel, Belmonte added that few companies in the Philippines can match Ayala Corp.’s wealth and breadth of experience in dealing with adversity.