Suddenly I woke up this morning at 3:00 a.m.
Then I remembered I had to meet my wife and eldest daughter at the city bus terminal who were coming home from Manila. They were there already for the past two days to shop for merchandise for sale here in Naga City, which is where we reside.
I was happy for them. They had a passion to get on with our source of livehilood, trading and manufacturing. It is not with little joy especially that my eldest daughter, altho a college graduate and a cum laude at the Ateneo de Naga, decided to take a shot at business. And she’s doing alright.
She is employed at the Naga College Foundation as a marketing consultant but she finds time to engage in business at the side. After trying out several businesses (pizza making, small computer printing, handicraft-making, etc.), she finally found a business comfortably suited to her personal disposition- the making of women’s accessories.
She discovered to her tripping joy that accessories are forever in demand. Women being vain and conscious of how they look, do not stop buying things that would enhance their beauty and their attraction to men. This is not, of course, discounting the fact women fix themselves up to feel good inside and not purposely to bait a man.
But this is not the real subject of my blog. If ever, it is just to comment that in our family entrepreneurship is a big word. I myself and my wife are not employed ever. I quit teaching just after one year and started a business. Since then I have never looked back.
But the centerpoint of my little story is about the two shirts my wife brought home and of bigger things about Philippine business. It was a delight to augment my bare wardrobe with two attractive polo shirts whose designs would be a plus to my sartorial collection.
My wife was absolutely satisfied with her purchase for she got the shirts apiece at only P150.00. When I looked at the collar tag I saw they were made in Thailand.
I was happy for the gifts but I was sad for it dawned on me globalization had already caught up with our Philippine economy. Imperceptibly, slowly, our own industries are dying because of
intense lopsided competition from products abroad, especially those coming from China, Thailand, Taiwan, Malaysia and other Asian countries.
I looked at the shirts and I estimated if these shirts were made here they would not sell for P150.00 each. They would be priced above P250.00 apiece here. Clearly, no garment manufacturer can withstand this kind of competition. I dread to imagine how many of our workers would be run out of jobs when our garment industry collapses.
The whole economic landscape is bleak in fact.
All our industries are at siege. Local electronic products are much underpriced by Asian competition. For instance, a GE light bulb is priced at P25.00 here in Naga. A similar one coming from Indonesia is priced at P16.00. A paint brush, 2 inches in width, and made in China is being sold at P18.00. A similar item locally made, but even poorer in quality, is being sold for P20.00.
Baguio vegetable growers are up in hands for their products are being outsold in Divisoria by imported vegetables coming from China and Taiwan. The vegetable importers who, for the most part are Filipino-Chinese, claim the vegetables coming from abroad are cheaper and of higher quality. What can you say to that?
At a talk show on TV that discussed precisely this problem of uneven competition, one Fil-Chinese businessman was asked where the Philippines could possibly excel in the face of mounting competition from other Asian countries.
He said there are three areas where the Philippines can compete: tourism, services and agriculture. He mentioned agriculture not so much with the view of exporting products abroad but to ensure food sufficiency for the country.
As an astute businessman, he does not see a bright future for Philippine manufacturing as the local market is small and there’s no Chinaman’s chance for the local manufacturers to export and compete with big Asian manufacturers who are already deeply entrenched in the wide Asian market and which have fully attained vertical and horizontal integration in their manufacturing activities.
This economic outlook for the country offers much for us to ponder. We must take stock of our resources and see where we can really be strong in and go from there.
There are, of course, bright spots. One expatriate manager on assignment here in the Philippines commented that we tend to look at our situatioin very negatively. He observed the Philippines is way, way much better than Egypt, Columbia, the Middle East or Africa.
He pointed out, for instance, that before 1995 there was no huge telecom infrastructure to speak of. After deregulation, billions of dollars have been invested in fixed line and cellular networks producing a system with over 5,000 kms of fiber optic backbone. Fixed line capacity increased from 900,00o in 1995 to over 7 million today. Cellphones were non-existent in 1995. Now, Smart has over 15 million subscribers, Globe around 10 million and SunCellular around 1.5 million.
Today, we have the MRT, the SKYWAY, the NAIA Terminal 2 and many skyscrapers that were not there before year 2000.
He said Philippine exports increased by over 600% for the past eight years. And we are producing and exporting all electronic chips used by Nokia in all its electronic products.
There other good stories around. Call centers are sprouting everywhere and even in the provinces. It is estimated this service industry will employ about 100,000 workers within a span of five years.
Well, perhaps the Philippine story is not all bleak after all. We just have to keep on improving, improvising and innovating to become world-class competitors ourselves.