Asian businessmen looking forward to creation of integrated Asean marketplace

ASIAN businesses are consolidating and anticipating the creation by the Association of Southeast Asian Nations of an integrated marketplace that is expected to make the region economically independent from the West, especially in light of the continued failure of developed nations to show signs of recovery.

Albert Kong, chief executive of Asiawide Franchise Consultants Pte. Ltd., said an integrated Asean marketplace will give businesses a market of close to 600 million consumers in a region with a combined gross domestic product (GDP) of about $1.1 trillion. The creation of this marketplace “will inject dynamism into Asia,” he said.

Kong is in the country to promote the Franchising and Licensing Asia 2010 expo opening in Singapore next month.

He said the economic state of Western nations has led them to “expect a lesser number of companies from the United States and Europe to participate this year [in the expo], considering the deep-running effects of their housing crisis.”

But Kong said he has high hopes franchisers from the Philippines will consider participating in the expo to see the opportunities for expansion in Asia, especially when some of them are already looking at expanding abroad.

“Filipino franchisers need to be ready to integrate in the region since a lot of regional people will be there and find partners to expand in the region.”

Citing World Trade Organization data, FLAsia 2010 organizers said in a statement that Asia will account for 60 percent of the global trade by 2020, “replacing North America and Europe as the centers of global trade.”

Kong said  he  sees a franchising boom next year when the zero-tariff environment is applied in Asean for its members. “It will be for the good, definitely not for the worst.”  

FLAsia2010 coincides with the International Symposium on Franchising hosted by the International Franchise Association, being held for the first time in Singapore.

“Singapore is poised to become the Asian hub for global franchising,” said John Reynolds, president of IFA Educational Foundation Inc.

The group is heralding franchising as a key business expansion strategy and helps budding entrepreneurs wanting to start their business. –Dennis D. Estopace / Reporter, Businessmirror