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Time Context Philippines ranks low as investment destination among SEA countries View Point SM Investments Corporation Central Problem
The Philippines ranked low as an attractive destination for investments among countries in the Southeast Asian region, according to a survey done by the Association of Southeast Asian Nations Business Advisory Council (ASEAN-BAC).

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Objective: Identify those

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Strengths Weaknesses Opportunities and Threats Analysis:

The ASEAN Business Advisory Council (ASEAN-BAC) was established by the ASEAN Heads of State and Government (HOSGs) at the 7th ASEAN Summit in November 2001 in Bandar Seri Begawan, Brunei Darussalam. Inaugurated at the ASEAN Secretariat in Jakarta, Indonesia in April 2003, ASEAN-BACs primary mission is to promote public-private sector partnership to achieve the integration of an ASEAN Economic Community (AEC). ASEAN-BAC provides private sector feedback on the implementation of ASEAN economic cooperation and identifies priority areas for the consideration of the ASEAN Leaders. The activities of ASEANBAC are to: a) Review/identify issues to facilitate and promote economic cooperation and integration; b) Submit annual recommendations for the consideration of the ASEAN HOSGs; and c) Organize the annual ASEAN Business & Investment Summit (ASEAN BIS) to coincide with the annual ASEAN Summits. The Philippines and Indonesia, ASEANs fastest growing economies, face tough challenges to effectively meet the regions economic community targets. Both countries appear far from being prepared to dismantle barriers to investments and significantly narrow income gap by 2015. Southeast Asia has been gearing up to pursue regional market integration through the ASEAN Economic Community (AEC) initiatives, which are set to be completed by the end of 2015.

Although 77.5% of the AEC Blueprint has already been mapped out, realising the remaining politically sensitive goals is immensely laborious. The Philippines and Indonesia, now considered ASEANs fastest-growing economies and brightest spots amidst gloomy global economic outlook, are both crucial to the establishment of the AEC. Assessing the level of preparedness of Indonesia and the Philippines to achieve AEC targets, however, indicates some daunting challenges, particularly in three critical areas, namely, (1) free flow of investments, (2) interconnectivity and infrastructure, and (3) poverty reduction and equitable economic development.