Cebu needs unified business ecosystem to keep pace with regional rivals

CEBU CITY, Philippines — Cebu risks losing ground to its Southeast Asian competitors unless government and business leaders adopt a unified, ecosystem-based strategy for investment and trade, according to the Philippine chair of the East Asia Business Council (EABC).

Rather than relying on individual strengths in tourism, shipbuilding, business process outsourcing and infrastructure, Cebu must integrate these industries into a connected economic ecosystem similar to those that have helped Thailand, Malaysia and Vietnam capitalize on the Regional Comprehensive Economic Partnership (RCEP).

“We must begin to see Cebu as an ecosystem, not just a collection of isolated sectors,” said Jay Yuvallos, chair of EABC Philippines.

The Philippines continues to trail other RCEP members in maximizing the benefits of the 16-economy trade pact, which accounts for about 30 percent of global gross domestic product and 2.4 billion consumers, he said.

Low awareness, limited use

While China, Japan, South Korea and more proactive Asean economies such as Vietnam have expanded their regional value chains, the Philippines has struggled with low awareness and limited use of the agreement.

“The Philippines is lagging behind, largely due to lack of awareness and lack of a more aggressive push,” he said.

Small and medium enterprises should be integrated into regional supply chains even if they do not export directly.

The business leader pointed to Malaysia’s vendor acceleration program, which connects smaller businesses with companies operating in economic zones, as a model the Philippines could replicate.

To boost RCEP participation, the Cebu Chamber of Commerce and Industry (CCCI) recently partnered with the Department of Trade and Industry to establish a Regional Support Unit that will help local firms navigate the trade agreement, including its provisions on investment promotion and intellectual property.

IP protections, transport links

Yuvallos said RCEP’s stronger intellectual property protections could also help Cebu’s animation, game development, and film industries move beyond subcontracting and secure higher-value partnerships with regional firms, particularly in Japan.

“Right now, our problem is that we are often treated as subcontractors only,” he said. “With strong IP rules, we can partner on a higher level.”

Likewise, an ecosystem strategy must be supported by sustained infrastructure investment, particularly transport links connecting northern and southern Cebu, and closer coordination between national and local governments.

“What’s the point of these investments if they’re not aligned with an ecosystem strategy?” Yuvallos said.

The EABC is the official private-sector voice of the Asean+3 grouping—comprising the 11 Asean member states plus China, Japan and South Korea—and was established to support regional economic integration.

It will convene business leaders during the FEU Business Investment Summit on September 9 at Shangri-La The Fort, alongside the MAP International CEO Conference.

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