Philippine Businesses Urged to Accelerate RCEP Integration to Avoid Losing Regional Edge
Philippine businesses must accelerate their efforts to leverage opportunities under the Regional Comprehensive Economic Partnership (RCEP) or face the risk of falling behind neighboring countries, according to a prominent business leader. Jay Yuvallos, chair of the East Asia Business Council (EABC) Philippines, emphasized that local firms need to better integrate into the regional economy amid increasing global trade uncertainties.
Warning Against Fragmentation and Short-Term Thinking
Speaking at a forum organized by the Management Association of the Philippines, Yuvallos cautioned that the country could miss out on significant benefits from RCEP if it continues to operate in a fragmented and short-term manner. RCEP, which came into effect in 2022, unites 15 Asia-Pacific economies, accounting for approximately 30 percent of global output and a market of around 2.3 billion people. The agreement is designed to facilitate easier trade, investment, and supply chain connections among member nations.
Yuvallos stressed that the Philippines should view participation in RCEP as a long-term strategic initiative to help local businesses expand into East Asian markets. To support this goal, the EABC Philippines is implementing various programs, including:
- Business clinics to enhance understanding of RCEP provisions.
- Support units for companies entering regional markets.
- Tools to assist small businesses in joining supply chains.
Additionally, the council is promoting digital trade systems and sustainable business practices. "These initiatives are small steps, but when coordinated, they can create meaningful impact," Yuvallos remarked.
Cebu as a Model and a Cautionary Tale
He highlighted Cebu as an example of how local economies can build competitiveness through coordinated efforts. The province has developed economic corridors where industries such as manufacturing, logistics, shipbuilding, agriculture, and tourism mutually support each other. The Cebu Investment Center also plays a crucial role in attracting foreign investors.
However, Yuvallos pointed out that Cebu's experience underscores a broader national issue: a lack of coordination. "We must overcome our biggest challenge: fragmentation," he said. "Fragmented agendas, silos, and turf wars slow progress. The enemy is us."
ASEAN Chairmanship and Competitive Pressures
The urgency of this issue is heightened as the Philippines prepares to chair the Association of Southeast Asian Nations (ASEAN) in 2026. Yuvallos warned that the country must be ready to compete with neighbors like Malaysia, Singapore, Thailand, and Vietnam, which are already strengthening their positions in regional supply chains.
He added that the ASEAN chairmanship presents an opportunity for the Philippines to advocate for initiatives that benefit local industries, particularly micro, small, and medium enterprises, as well as emerging sectors such as semiconductors and critical minerals.
Focus on Future Leadership and Youth Engagement
Yuvallos also emphasized the importance of preparing the next generation of leaders. He noted that many young Filipinos express uncertainty about the future but are increasingly demanding more accountability and transparency. "We must do something for our youth and the future," he stated. "Their insights remind us that the future belongs to the prepared, united, and empowered."
In summary, Philippine businesses are at a critical juncture where swift and unified action is essential to capitalize on RCEP opportunities and enhance regional competitiveness.
