THE Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) cited the benefits of the Indo-Pacific Economic Framework (IPEF) to member-countries of the Association of Southeast Asian Nations (Asean).
During a forum on “Strengthening Supply Chain Resilience” last Thursday, Seipi President Danilo C. Lachica said one of these benefits is having “extended technical assistance from member countries with advanced digital ecosystems to expand beyond digital inclusions.”
Lachica said that Asean member-countries can gain from the expansion and diversification of US foreign direct investments (FDIs) in the region, “especially on semiconductors and electronics.”
The businessman added that Asean member-countries could also have improved labor standards by monitoring and reporting labor issues.
Meanwhile, under the clean economy pillar of the US-led economic framework, Lachica, also senior vice president of First Philippine Holdings Corp., said Asean members can engage in environmental cooperation to promote climate resiliency and usage of green/renewable energy sources and technologies.
Moreover, Asean countries can also ensure “resilient” supply chains through the establishment of an intergovernmental crisis response mechanism, the Seipi chief said.
Higher value
LAST month, Trade Secretary Alfredo E. Pascual underscored the importance of the IPEF in moving the Philippines up the supply chain.
Pascual said during a forum in January that the IPEF will be an important platform for the US, noting that the US can help bring the Philippines to the higher value of the supply chain “because under the supply chain pillar of IPEF, there are provisions for training, technical cooperation and capacity-building that could be arranged by our partners.”
The 14 countries participating in the US-led economic framework are the United States, Japan, Australia, New Zealand, the Republic of Korea, India, Fiji and seven Asean countries (Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam). The IPEF has the following pillars: trade; supply chains; clean energy, decarbonization and infrastructure; and, tax and anti-corruption.
Effectiveness of Create
HOWEVER, to be able to realize the benefits of IPEF, Lachica said the tasks of Seipi should be done in cooperation with the government, industry and the private sector.
One of these, the Seipi chief noted, is to implement reforms that “complement” the sustainability framework of the IPEF.
Lachica also stressed the importance of improving the ease of doing business, reducing operating costs, and reviewing the “effectiveness” of the incentives rationalization under the Corporate Recovery and Tax Incentives for Enterprises Act for the Philippines to be the “preferred” investment destination of IPEF members.
Moreover, the Seipi chief said there is also a need to implement “full digitization” of the Bureau of Customs, the Bureau of Internal Revenue and other government agencies to enhance the country’s supply chain and take advantage of the technical assistance extended by other IPEF-member countries.
Lachica also underscored the importance of consulting with the private sector and stakeholders on commercial and economic issues.