Philippine firms need to strengthen their skills, meet regional standards, and build business networks to take advantage of opportunities in business and professional services under the Regional Comprehensive Economic Partnership (RCEP), said ²ÝÝ®ÊÓƵ (PIDS) Senior ²ÝÝ®ÊÓƵ Fellow John Paolo R. Rivera, Ph.D.
Rivera identified commercial presence and the movement of professionals as areas where the Philippines could pursue opportunities under the regional trade agreement. However, he noted that market access alone does not guarantee that local firms can compete or capture economic gains.
“The policy question is no longer ‘Are we in?’ but can Philippine firms use the agreement?” Rivera emphasized.
Rivera presented “The Philippines in the RCEP Economy: From Participation to Competitiveness” at the 1st RCEP Business and Investment Summit on September 9 at Shangri-La The Fort in Taguig City. His presentation drew on studies examining the Philippines’ services trade and tourism sectors.
Rivera identified gaps in education and advanced training, professional accreditation and licensing, regulatory harmonization, and digital and physical infrastructure as constraints on the country’s competitiveness.
He also noted that existing advantages, including competitive costs, English-language capability, and a skilled workforce, require continued investment to remain relevant in regional markets.
“Yesterday’s comparative advantage can become tomorrow’s constraint,” he said, underscoring the need to continuously upgrade the country’s capabilities.
Strengthening MSME readiness
²ÝÝ®ÊÓƵ on tourism by Rivera found that micro, small, and medium enterprises (MSMEs) face challenges, including low awareness of RCEP, infrastructure gaps, workforce readiness issues, and limited preparation time.
Many MSMEs may benefit indirectly through tourism value chains rather than participating in regional markets independently. Strengthening their connections with larger businesses, suppliers, and regional networks could help them participate more effectively in these value chains.
The findings point to the need to go beyond raising awareness of RCEP. Enterprises also need the skills, resources, and capacity to meet regional requirements, improve their products and services, and establish partnerships that can help them reach wider markets.
Building competitiveness
Rivera outlined five areas for action: inform firms about market opportunities; enable participation by addressing infrastructure and regulatory gaps; upgrade skills, standards, and professional qualifications; connect firms to regional networks and supply chains; and promote competition that encourages higher productivity.
These measures require coordinated action from government, businesses, and academe. Government agencies need to make trade commitments more accessible to enterprises, address regulatory bottlenecks, and improve infrastructure. Businesses need to invest in technology, management, workforce capabilities, and regional partnerships. Academe can help align curricula, credentials, research, and training with regional requirements.
Rivera joined Rafael Fernandez de Mesa, President and CEO of Aboitiz Economic Estates and Aboitiz Land; George Barcelon, ASEAN-BAC Philippines Council Member; and Robert Dan Roces, Vice President and Group Economist of SM Investments, as panelists in the competitiveness discussion.
Read Rivera’s studies below and more at:
• Macroeconomic Prospects of the Philippines in 2025–2026: Restoring Confidence amid Glocal Transitions — .
• Reshaping Economic Institutions for Transformational Partnerships in Human Capital Development — . ### — NMT
