ASEAN DEBATE

Affirmative Group

TABIMINA, Iris Paola (Introduction)

PANGADER, Abdul (First Speaker)
MADALE, Reeza (Second Speaker)
GUIGAYOMA, Angelina (First Interpolator)
BANCE, Shayne Amor (Second Interpolator)
QUICOY, Czairmaine (Closing)

Introduction by Iris Paola Tabimina

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 30th anniversary of ASEAN when the 10 Heads of State adopted the
ASEAN Vision 2020. After the adopetion of the Vision, The Leaders , during the 9th 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; technologysharing 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: Abdul Pangader

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
ILO-ADB, 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-topeople 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: Reeza Madale

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 (Japan-Philippine 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 one-hundred percentage (100%) are key barometers to watch.
Closing Speech by Czairmaine Quicoy

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.