MANILA, Philippines – According to the Nordic Chamber of Commerce (NordCham) of the Philippines, the country will not suffer but will benefit on the imminent withdrawal of the UK from the European Union (EU), or commonly called as British Exit or “Brexit.”
Joona Selin, the executive director of NordCham, said that the Philippines is an economical option for the UK businesses particularly on the industry of outsourcing.
During the NordCham forum held at the BDO Corporate Center in Makati which is entitled “Trump & Brexit – What do these mean for EU and ASEAN?”, Selin said that in the outsourcing industry alone, even on a short-term basis, the outsourcing sector will be given a lot of opportunities by the Brexit. In difficult times like in the impending withdrawal of the UK, they will look for places where it is more cost-efficient, such as the Philippines, on the outsourcing industry.
Jorgen Ostrom Moller, a professor at the Singapore Management University and Copenhagen Business School, also spoke in the forum. He is a former ambassador, a great negotiator particularly in economic affairs, and a well-known analyst about the European affairs.
BDO had already hosted numerous Nordic affairs in the previous years because of its partnership with the bank through NordCham and Europe Desk.
According to Selin, the Philippines can also be an excellent choice for the UK companies to venture into the export market.
He explains that the Philippines will attract the British because they will have to find a new source of export market and that they cannot just depend on their domestic market particularly in this kind of time.
In his speech, Moller said that the members of ASEAN or Association of South East Asian Nations should look at how EU handles the political issues in their territories.
He continues by explaining that both EU and ASEAN have their political problems, although ASEAN can learn something from the system of EU. However, both regions should be able to promote a democratic system which is effective.
Both organizations, EU and ASEAN, are there to solve the problem of each country. They can’t address these problems on their own. However, if they don’t trust this method, they’ll not be interested and will not obey the system. The advantages of globalization are not felt that much in Europe and the US but Asia. The problem, though, is that economy is not enough in solving the problem but its education.
Experts have already said that the Brexit will not affect the economy of the Philippines. The relationship between the Philippines and the British economy is comparatively slim. Merchandise imports and exports between the Philippines and the UK contribute only 0.9% in 2010 and 0.5% on 2015.
The external debt of the Philippines from EU countries only accounts for 8.8% on the total debt. The majority of the Philippines’ stock debt is still in the currency of Yen and Dollars. However, the total remittances of OFWs in the UK accounted for about 1.5 billion dollars in 2015.