ASEAN Integration: Challenges and Opportunities

A presentation by Dir. Romeo M. Montenegro, Head of International Relations,

Investment Promotion and Public Affairs, Mindanao Development Authority (MinDA)

ONE ASEAN COMMUNITY FORUMAVR 1, 2nd Floor, BA Bldg, University of Mindanao Bolton

March 6, 2015

Economic Integration Structure

Subregional level

Regional level

Overarching institution

So what is economic integration all about?

In the context of ASEAN…

• Narrowing development gap• Achieving inclusive growth• Sustainable development

INDONESIA MALAYSIA PHILIPPINES SINGAPORETHAILAND

BRUNEI

LAOS

MYANMAR

CAMBODIA

1967

1984

1995

1997

1999

1st ASEAN Summit

1976

ASEAN: ONE VISION, ONE IDENTITY, ONE COMMUNITY

VIET NAM

Treaty of Amityand Cooperation(TAC)

Cebu Declaration

2007

2009

Hua Hin Declarati

onMaster Plan of ASEAN Connectivity (MPAC)

2010 2011

Bali Concord

III

ASEAN COMMUNIT

Y 2015

2008

ASEAN: Fast Facts• A very big and fast growing market

• 10 member states at varying economic development

• 610 million people, which is 8.8% of the world's population

• Combined GDP  of US$ 2.34 Trillion with an average GDP per capita of US$ 3,787

• As a single entity, it ranks as 8th largest economy in the world

ASEAN: Fast FactsThe ASEAN six major countries (values in US$):

ASEAN: Fast FactsHuman Development Index (HDI) Performance:

ASEAN Dialogue and Development Partners

• ASEAN – Australia• ASEAN – Canada• ASEAN – China• ASEAN – European Union• ASEAN – India• ASEAN – Japan • ASEAN – New Zealand• ASEAN – Republic of Korea• ASEAN – Russia• ASEAN – United States

Means greater leveraging and market access

FDI Inflows to ASEAN, 1995-2011(US$ Million)

FDI inflows to ASEAN havebeen expanding

Aligned with the three (3) main pillars:

1. ASEAN Political Security Blueprint

2. ASEAN Economic Blueprint

3. ASEAN Socio-Cultural Blueprint

ASEAN Integration

1. Free flow of goods2. Free flow of

services3. Free flow of

investment4. Free flow of capital5. Free flow of skilled

labor6. Priority integration

sectors7. Food, Agri and

Forestry

ASEAN Economic Community

Single Market and Production Base

1. Competition Policy2. Consumer

Protection3. Intellectual

Property Rights4. Infrastructure

Development5. Taxation6. E-commerce

Competitive Economic Region

1. SME Development2. Initiative for ASEAN

Integration

Equitable Economic Development

1. Coherent approach towards external economic relations

2. Enhanced participation in global supply networks

Integration into the Global Economy

Dr. Cielito Habito; Philippine Business and the ASEAN Economic Community: Opportunities and Challenges; AEC Forum, April 2014

Dr. Cielito Habito; Philippine Business and the ASEAN Economic Community: Opportunities and Challenges; AEC Forum, April 2014

Member Sensitive List Highly Sensitive List

Indonesia None Rice and Sugar

Malaysia Swine, poultry, orchids, cabbages, bananas, pineapples, guavas, mangoes, and mangosteens, melons (including watermelons), papayas, durians, rambutan, langsat, starfruits, jackfruits, coffee, bamboos, rattans, tobacco and cigarettes

Rice

Myanmar Rice and Sugar None

Philippines Swine, poultry, manioc (cassava), sweet potatoes, maize (corn), grain sorghum, and sugar

Rice

Singapore none None

• Tariffs on products classified under the Sensitive List have not been eliminated and will instead have end rates of 5%

• Longer timeframe for tariff reduction/elimination on rice and sugar

Tariff Reduction/Elimination with AFTA

Priority Integration Sectors

PIS Goods Sectors

1. Agro-based goods2. Automotive products3. Electronic and electrical

goods4. Fisheries5. Rubber-based goods6. Textiles and clothing7. Wood-based products

PIS Services Sectors

1. Air Transport2. E-ASEAN3. Health Care Services4. Logistics Services5. Tourism

Provides for greater mobility of ASEAN professionals to provide their services in the region

Free Flow of Services

Seven Mutual Recognition Arrangements (MRAs) concluded

1. Engineering Services2. Nursing Services3. Architectural Services4. Surveyors5. Medical Practitioners6. Dental Practitioners7. Accountancy Services

In 2009, MRA on Tourism Professionals was adopted

• Expect increased competitive pressure

• Need to increase efficiency

• Master the rules

• Safety nets?

• Forum arbitrage

• Pressure for better governance: margins for policy mistakes narrower

Business Implications

KEY INITIATIVES IN PREPARATION FOR ASEAN INTEGRATION

• Supportive Government Policies • Funding Assistance/ Access to Financing• Capacity Building provided by govt and private sector• Seminars on doing business in Free Trade Areas• Set up of National Competitiveness Council• Industry Clustering approach• Promotion of sustainable food production and strengthening

of networks for R&D, techno transfers and farmers coops

Now, the question is…Are we ready?

We should be. We must be.

Here’s why…

Philippines Shifting to High Gears… received investment grade ratings from:

1st - Fitch (March 2013) 2nd - S&P (May 2013) 3rd - Moody’s (Oct 2013)

World Economic Forum: Ranked 59th from 152 countries in the Global Competitiveness Index (GDI)

HSBC: PH will be the 16th largest economy in the world by 2050

World Bank: PH dubbed as the “rising tiger of Asia.”…

Institute of Chartered Accountants in England and Wales: PH adjudged as one of the “brightest sparks in the ASEAN region.”…

Bloomberg: PH is the 2nd fastest growing economy next to China”

Source: Mid-Year Philippine Economic Briefing 2013

But wait, let’s take another closer look…

Official AEC Scorecard(As of July 2013)

ASEAN Member

StateImplemented Not

ImplementedImplemented

Ahead Ongoing Total Measures*

Implementation Rate**

Brunei 297 48 18 71 434 86.8%Cambodia 290 56 17 72 435 84.6%Indonesia 289 58 18 72 437 84.1%Laos 287 57 16 74 434 84.2%Malaysia 307 44 20 69 440 88.1%Myanmar 294 51 17 72 434 85.9%Philippines 302 47 19 71 439 87.2%Singapore 304 38 19 69 430 89.5%Thailand 307 43 20 69 439 88.4%Vietnam 307 41 16 73 437 88.7%

Source: ASEAN Secretariat

Implementation of AEC Scorecard Deliverables under Phase I – III (2008 – 13)

5th

• 6th in per capita GDP• 6th in Global Competitiveness• 6th in Ease of Doing Business• 6th in Enforcing Contracts• 6th in Logistics Performance• 7th in Starting a Business

How are we faring?

• According to the National Competitiveness Council of the Philippines

Assessing Competitiveness: Philippines vs ASEAN

• 7th in Information Technology• 7th in Global Innovation Index• 8th in Cost of Business• 8th in Dealing with Construction• 8th in Registering a Property • 8th in Ease of Paying Taxes

How are we faring?

Assessing Competitiveness: Philippines vs ASEAN

• According to the National Competitiveness Council of the Philippines

1. Laos (9th) 2. Singapore (10th) 3. Indonesia (12th) 4. Malaysia (13th) 5. Thailand (15th) 6. Vietnam (16th) 7. Philippines (18th)8. Myanmar (22nd)9. Cambodia (24th)

How are we faring?

Creative Productivity Index: Analyzing Creativity and Innovation in Asia by ADB

Creating Productivity Index

Out of 24 Asian Countries

• 2nd in Population• 2nd in Adult Literacy• 4th in Corruption Perception Index

• According to the National Competitiveness Council of the Philippines

Areas we fared better:

Assessing Competitiveness: Philippines vs ASEAN

Why does it matter?

Cambodia

Myanmar

Lao PDR

Philippines

Brunei Darussalam

Viet Nam

Indonesia

Malaysia

Thailand

Singapore

0.00 10,000.00 20,000.00 30,000.00 40,000.00 50,000.00 60,000.00 70,000.00

1274.9

0

426.7

3859.8

908.4

8900

18443.8

12297.4

12999.8

60644.9

FDIs net inflows, intra- and extra-ASEAN2013 Total Net Inflow per Country (in US million dollars)

ASEAN Statistics

Source: Accenture SEA Business Expansion Survey, 2011

Critical Business Expansion Enablers in South East Asia(% of businesses)

Increase talent availability and flow

Government incentives

Generate business opportunities

Facilitate regional investment

Promote regional trade

Improve business environment

0% 5% 10% 15% 20% 25% 30% 35% 40%

17%

17%

18%

29%

31%

36%

Where is Mindanao economy in the context of ASEAN and global trade?

Mindanao in the context of AEC 2015: The New

Narrative

Mindanao... worth taking another

serious look

next viable investment destination

where investments yield high returns for peace

Mindanao in Figures…

Second largest Island in the Philippines (10.2 Million hectares)

Population of around 22 Million

Consists of 6 Regions, 26 Provinces, 33 Cities, 422 Municipalities, 10, 084 Barangays

80% of the country’s total

deposits of copper, nickel and gold are in

Mindanao

8 of the 18 major River

Basins in the Philippines are

in Mindanao

41% of Mindanao’s

total land area is certified

Alienable and Disposable land

Progress on the Peace Process

• Peace agreement signed in March 2014

• Bill on Bangasamoro Basic Law now in Congress

• Bangsamoro political entity to be established by 2016

Structure of the Mindanao Economy

The Mindanao economy is pegged at P 968.77B in 2013, or equal to 14.32% of the Philippine Economy.

24%

31%

44%AHFF

Industry

Services

Growth Rate (%)

0.99

9.6

7.086.3% GRDP INCREASE

in 2013

Mindanao: The Philippines Food basket and Source of Major Industrial Crops

Mindanao Priority Commodities

Contribution to Philippines

(in %)

Aquaculture 74

Cacao 89

Coconut 58

Coffee 75

Pineapple 89

Banana 82

Corn 50

Poultry 19

Rubber 99.97

Palm Oil 90

Source of Raw Data: PSA-BAS Processed by: MinDA Pineapple

Cacao

Banana

Aquaculture

Corn

Poultry

Coffee

Palm Oil

Rubber

Exports vs ImportsMindanao: The Philippines Food basket and Source of Major Industrial Crops

Mindanao Oil Palm: 60,000 hectares

• Agumil• Kenram• Filipinas Palmoil• Carmen Univanich• ABERDI• Zanorte• Bali Palm Oil

East Malaysia and Eastern Indonesia:

• 6.5 million hectares; • 35 million tons palm oil to 150 countries

STRENGTHEN MINDANAO’S ROLE AS FOOD BASKET a major source of globally competitive agri-based products

• One-third of Mindanao’s land area is devoted to agriculture

• One-third of the labor force is employed in the agriculture, fishery and forestry sectors.

• Contributes more than 30% of the national food requirements

pineapple

canned sardines

seaweed

banana

tuna

oil palm

Source of Raw Data: NSCBProcessed by: MinDA

EXPORT

IMPORT

Increased Export earnings by

24.37%

Imports Decreased by

1.3%

Mindanao’s total foreign trade increased by 14.96% in 2013

Trade Surplus increased by 59.65%

Exports vs Imports

China: Nickel ores, Live Fish, Crustaceans,

Animal or vegetable fats , Banana, Fruits,

seaweeds

USA: Banana, Coconut, fruits, Palm

oil, live fish, animal or vegetables oil, Acyclic

alcohols

Middle East: Coco water, Banana, Fruits,

animal vegetables

European Union: Coconut, Banana,

Animal or vegetables oil , Fruits , Fish,

seaweeds, Acyclic alcohols, Prepared or

preserved fish

Japan: Banana, Wood charcoal, Fish, Fruits

Russia: Fruits, Wood charcoal, Acyclic

alcohol

Australia: Coconut, fruits, water, Nickel

ore, prepared or preserved fish

Africa: Coconut, Fruits, Bananas, nuts,

Fish Mindanao

Korea: Coconut, Banana, Fruits

Source: NSO, 2012

ASEAN: Coconut, Fruits, Fish, Acyclic

Alcohol, Coco Water

Canada: Fruits, prepared or

preserved fish

Switzerland: Gold, Fish , Coconut

Our export destinations

Location 2010 2011 2012 2013

Region IX 326.660 546.366 2,586.902 Nda

Region X 2,837.030 2,688.006 3,648.996 48,123.32

Region XI 4,656.970 38,481.517 5,795.086 31,664.25

Region XII 504.177 65.00 1,222.875 6,530.70

Caraga 2,824.050 49,648.383 11,786.489 8,638.26

Total Mindanao Project Cost (Php in Million)

11,148.89 91,429.27 25,040.35 *94,956.53

BOI-APPROVED INVESTMENTS IN MINDANAO(In million Pesos)

Source: Bureau of Investments (BOI)Processed by: MinDA

BOI-Registered Investment Projects in Mindanao

Region XII

Communities General Santos, Inc., First Gen Mindanao Hydro Power Corp., Gensan FeedMill Inc., Kenram Palmoil Industries Inc., Phil. Best Canning Corp., Safi Agro-Industries Inc., Saranggani Agriventures.

Region XI

Azdevelopers Corp., Communities Davao, Inc., DMC Urban Property Developers, Francisco M. Soriano & Co., Franklin Baker, Hedcor Sibulan Inc., Hedcor Tudaya, Inc., Nakayama, PNX-Chelsea Shipping, San Miguel Consolidated Ppower Corp., Seaoil Philippines, Simmons Leather Goods. Vifel Ice Plant andC old Sotrage

CARAGA

FirstGen Mindanao Hydro Power Corp., Mindanao Mineral Processing and Refining Corp.

Region X

Argusland Inc., Maharlika Agro-Marine Ventures Corp.

Total Mindanao Project Cost:

Php 94.96B*

Please note, in 2013, RBOI-ARMM reported Php 1.46 Billion registered investments in ARMM (four projects, 157% higher than than the Php 569 Million registered investments in 2012.

Of the 20 people aged 15 to 64 in MINDANAO

19 of them areEMPLOYED

But, of the 19, 5 of them are UNDEREMPLOYED

94.88% of Mindanao’s Labor Force are employed

Source: NSO

Labor Productivity of Mindanao vs Luzon, per GVA share, FY2013

Non-Agri Agriculture Retail Services

Handicrafts

National Capital Region (NCR)

466.00 429.00 429.00 -

Mindanao 208.00 -312.00

245.00 - 302.00

260.00 - 296.00

235.00

Latest Minimum Wage Rate Levels in Mindanao (Php)

Tourist Arrivals in Mindanao is growing…

Source of Raw Data: DOT-CO Processed by: MinDA

More competitive electricity rates*

*Electricity prices are the average of electricity price of all distribution units belonging to the same island group

Luzon: Php 10.10/kWh

Mindanao: Php 8.24/kWh

Visayas: Php 10.27/kWh

OVER- ALL COMPETITIVENESS

RANK CITIES

1Makati

2Cagayan De Oro

3Naga City

4Davao City

5Marikina City

6Iloilo City

7Cebu City

8Manila City

9Valenzuela City

10Paranaque City

RANK MUNICIPALITIES

1Daet, Camarines Norte

2General Trias, Cavite

3Kalibo, Aklan

4Carmona, Cavite

5 Nabunturan, Compostella Valley

6Lubao, Pampanga

7Isulan, Sultan Kudarat

8 Polomolok, South Cotabato

9 Manolo Fortich, Bukidnon

10 Taytay, Rizal

CITIES AND MUNICIPALITIES COMPETITIVE INDEX, 2014

Source : National Competitiveness Council

What steps are being taken to strengthen Mindanao’s enabling environment?

BIMP-EAGA : Mindanao’s Platform to the ASEAN

BIMP-EAGA

• A test-bed for ASEAN protocols and agreements

• A building-block towards achieving ASEAN Integration 2015

Strategic Pillars• Enhanced Connectivity

• Food Basket Strategy (Agri)

• Tourism Development

• Environment

• Socio-Cultural and Education (newest pillar adopted at 19th BIMP-EAGA MM on November 19, 2014 in Brunei Darussalam)

Sarawak Corridor of Renewable Energy (SCORE):• Palm Oil• Fish and

Aquaculture• Livestock

Sabah Development Corridor (SDC):• Agro-based

Industry

Mindanao Growth Corridors:• Tropical Fruits

(Banana, Pineapple & Mango)

• Rice• Poultry• Coconut• Mariculture

Indonesia Growth Corridor• Corn• Fertilizer• Cement

BIMP EAGA Economic Growth Corridors & Transport Connectivity

International Airport

Principal Airport

Sea Port

International GatewayStrategic Tourism Destinations

BIMP-EAGA Proposed Air Linkage

Proposed ADB-PPTA

Proposed JICA Logistics

Existing National Road

Identified Projects under Mindanao Growth Corridors

BIMP-EAGA Proposed Sea Linkage

Davao- Kota Kinabalu

Zamboanga – Muara

Zamboanga- Sandakan

Davao- Manado

Davao – GenSan – Bitung

RORO Shipping Network

Proposed MTPIP III

NORTHER MINDANAOGROWTH CORRIDOR

SOUTHERN MINDANAOGROWTH CORRIDOR

WESTERN MINDANAOGROWTH CORRIDOR

MINDANAO TRANSPORT & LOGISTICS NETWORK SUPPORTING MINDANAO DEVELOPMENT CORRIDORS

BASILAN-SULU-TAWI TAWI-ZBO CORRIDOR- Concreting of Calugusan-Balas-

Sengal Road to Lamitan City Port- Sanga-Sanga Bangilan Road

Section- Improvement of the Bongao

Port- Concreting of Bato-Bato->Lapid-

Lapid Road, Panglma Sugala- Bongao Port- Improvement of Siasi Port

Western Mindanao Economic Growth Corridor

BIMP EAGA Initiative on Non-Convention Sized Shipping

BIMP EAGA OSAC

Mariculture Processing Complex

Region IX Area:Projects• Pulauan Port Alternate Road,

Dapitan City • Dipolog Airport Improvement• Pagadian Airport Improvement• Liloy-Labason-Gutalac Road

Upgrading• Pagadian Port Access road• Road Upgrading of Liloy-Lamao Port• Tumaga River Structural

Improvement Measures Flood• Zamboanga Port Improvement• New Zamboanga International

Airport Development• Balinsungay Irrigation project,

Zamboanga City• Lower Sibugay River Irrigation

System, Zambo Sibugay• Titay Valley Irrigation Project,

Zambo Sibugay

Caraga Area:Projects• Education: Minerals development

related courses• Education: Technical Vocational

Courses• Coconut processing in Tandag City

and Butuan City• Minerals processing in Surigao del

Norte and Tubay, Agusan del Norte• Improvement of strategic roads to

processing and business centers

Region X Area:Projects• Education: ICT and BPO/KPO Related Courses in

CDO• Education: Agriculture, animal science, and food

processing related courses in Bukidnon• Education: Technical Vocational Courses• Cold storage facilities in Bukidnon• Minerals processing in Manticao, Misamis Oriental• Mini-Hydro

ARMM Area:Projects• Cassava processing in Parang and

Marawi City• Aquaculture and aquaculture

processing in Parang and Marawi City• Hydro Power

Primary Growth

Center

Secondary Growth

Center

Existing Power

Plant

Proposed/

Indicative

Power Plant

On-going/

Committed

Power Plant

Airport

Seaport

Mindanao Industry & Trade Corridor

SOCCSKSARGEN Area: General Santos as the

Food Business CenterProjects:• Improvement of

strategic roads to processing and business centers

Davao Area: Davao City as the Mindanao

Business Center and ICT HubProjects• International Airport (service

improvement)• National Research

Development for Banana in Davao City (USEP)

• Improvement of strategic roads to processing and business centers

South Caraga Area:• Bislig City as Aquamarine

Processing Center • Agroforestry HubProjects:• Paper mill (Private)• Develop PICOP as Agro

Industrial Zone• Improvement of strategic

roads to processing and business centers

Cotabato Area:Halal Meat Processing Center in Cotabato City Projects:• Rubber Testing Center• Improvement of

strategic roads to processing and business centers

56MW SPPC

100MW Geo

32MW PB104

100MW PB118

58.69MW Dav light3.70 MW Talomo

Southern Mindanao Economic Growth Corridor

Tagum-Dvo-GSC High Standard Highways

Panabo Port Devt

Food Terminal Complex

ASEAN RoRo Study

ADB TA on CIQS

Legend:

Existing Air Linkages

• Davao-Manado (Sriwijaya)

• Puerto Princesa – KK (MASwings)

• KK – BSB (Maswings)

• Kuching - BSB (MASwings)

• Kuching – Pontianak (MASwings)

• Tawau – Tarakan (MASwings)Existing

Proposed

Proposed Air Linkages

• Zamboanga – Sandakan (Pal Express)

• Balikpapan – Kuching (MASwings)

• Balikpapan- KK (MASwings)

• Pontianak- Miri (Kalstar Air)

• Tarakan – KK (Kalstar Air)

Existing Sea Link

• Zamboanga – Sandakan (Passenger-Cargo Ferry)

Proposed Sea Linkages

• Davao – GenSan – Bitung

• Brooke’s Point – Labuan – Muara

• Zamboanga – Muara

Mindanao and EAGA Corridors Link

Heights of Mt. Kinabalu to the depths of PPUR

Western Mindanao and Sabah Festivals

Mindanao Tourism Loop/Mindanao and North Sulawesi Festivals

Mindanao Budget Allocation

In Billion Pesos

InfrastructureDistribution of FY 2011- 2014 Budget by Region:

(Based on GAA-Capital Outlays, Projects)

NORTHERN LUZON P90.87 B ($2.07B)

(23.1%)CAR, I, II, III

MINDANAOP99.12 B ($2.25B)

(25.2%)IX, X, XI, XII, XIII

NCR P54.27 B ($1.23B)

(13.8%)

SOUTHERN LUZONP76.84 B ($1.75B) (19.5%)

IV-A, IV-B, V

VISAYAS P72.23 B ($1.64B)

(18.4%)VI, VII, VIII

TOTAL : P393.33 B$ 8.94 B* Excluding Inter-Regional/Nationwide-P132.10 B

Project SitesUni Frutti – 6,000 haDel Monte – 10,000 ha Dole Phils. – Pineapple Sumifru – 600 haKenram – CPO MillAgumil Phils. – 10,000 haPBGEA – Banana Export ICTSI Port Development ANFLOCOR Henry Chua Industrial Mr. Carlos Vargas / Dr. Mazaki Flatwood Solutions Malaysian Investor – 40,000 haKhodian Holdings – 30,000 ha Jerry Taray Hejem Furigay Nestle Phils. Kennemer Foods Frankiln BakerBill Ho E-vehicles

Inclusive Business Program

Mindanao Power Development

At the rate committed projects are being built, it looks like Mindanao will have more than enough power after 2015…

MW

2014 2015 2016 2017 2018 2019 20200

500

1000

1500

2000

2500

3000

3500

4000

SupplyDemand

Reliability of Power Supply

Green Power Bukidnon Biomass (40 MW)=2013

EDC Mindanao Geothermal 3 (50 MW)=June2016

Southern Mindanao (Sarangani) CFTPP (2x100 MW)= Sep2015 & Nov2016

Therm(a South (Aboitiz) Coal Davao (300 MW)=Mar/June 2015

Mapalad Diesel Power Plant (15 MW)=Oct2013

Project Location

- Hydro Power

- Diesel Fired

Committed Private-Sector Initiated Power Projects

- Wind, Biomass, Solar

- Coal Fired

SMC Davao Power Plant-(Phase 1-300MW)=2015 & 2016

FDC CFB Coal Fired PP (3x135 MW)=2016

GN Power PsagCorp Coal fired PP (3x135MW)= 2017

Limbatong HEP (9MW) = 2017

Puyo HEP (30MW) = 2015

DOE List of Power Projects as of May 2014

- Committed Projects = 1,981.7MW

Peak Power Bunker Diesel Plant (20.9 MW)=Sep 2014

Peak Power Bunker Diesel Plant (5.2 MW)=Sep 2014

Lake Mainit(25MW) = 2016

Phil Bio Biomass (1.6 MW)=2017

Moving Forward

Source: Dr. Tans Sri YenYen

• Connectivity and accessibility difficulties

• Infrastructure development challenges • Security and safety issues • Promotion Strategies – Product quality and

branding • Human resource capacity

Overcoming Challenges

Turning odds to favor: Philippines has young and growing population

• Vietnam - 28.1• Indonesia - 28.5• Singapore – 31.5• China - 35.9• Japan – 45.4

Our Strength: DEMOGRAPHIC DIVIDEND

Source: Dr. Bernardo Villegas, University of Asia and the Pacific

Comparing Median Age: Philippines - 23.1 y.o.

With right skills and education, Philippines can sustain edge high labor productivity in ASEAN

We have distint competitive advantage within ASEAN

High level of tertiary education Adaptable and multicultural workers Fluent in English Familiar with the culture of the biggest market in the

world, the U.S. Low labor cost Labor peace

Our Strength: DEMOGRAPHIC DIVIDEND

Source: Dr. Bernardo Villegas, University of Asia and the Pacific

Alignment to Priority Sectors

Daghang Salamat!

Integrating Mindanao.

www.minda.gov.phinfo@minda.gov.ph