Regional integration may require a certain size for firms to be competitive. In this case, mergers and consolidations point the way. Nevertheless, there are always niches for smaller firms with imagination, talent for quality, daring, and a regional outlook. The enhancement of the regional competitiveness of exporting companies strengthens the smaller firms that supply or service them. I am aware of the complaints of some Philippine business people about the factors that hobble their competitiveness.
Communications are inadequate and expensive, if improving.
Red tape and corruption are too much. In some sectors, labor productivity is not commensurate to labor cost. If that is indeed the case, the thing to do is not to wall off Philippine industry against the region. This would only keep efficiency from improving, hamper the flow of new technology, constrict economies of scale, keep costs and prices up and quality down, stifle vigor and innovation, and confine the Filipino consumer to his state as a captive market. If bad infrastructure hobbles the competitiveness of some Philippine industries, the response is to raise the quality of transport and communications and lower their cost.