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Mindanao and BIMP-EAGA Updates
Posted 28 February 2008

The Mindanao Economic and Development Council, (MEDCo) presented an update on Mindanao and the BIMP-EAGA to former President Fidel V. Ramos and the Heads of the Regional National Government Agencies on February 22, 2008 at the MEDCo Conference Room, SSS Building, Davao City. The data presented were sourced from the National Statistical Coordination Board, Bureau of Agricultural Statistics, National Statistics Office, Board of Investments and other agencies. The NSCB RD 11 participated in this presentation.

Mindanao Economy in 2006

Mindanao posted an improved economic performance, posting a 5.2% percent growth in 2006, outpacing its 4.2% growth in 2005. All regions in Mindanao except Zamboanga Peninsula turned in better performances in 2006.

Davao Region posted a 4.4% growth in 2006 brought by the slight improvement in agri and services sector. Agri-Fishery is 27.2% of the region’s economy, Industry accounted for 30.9% and Services, 41.9%.

ARMM  grew by 4.1% in 2006, from 3.7% in 2005. The growth is attributed to improved performance of agri sector which benefited from the donor-assisted infrastructure and other projects which were poured into the area. New farm-to-market roads, post-harvest facilities, and small ports led to better commodity prices.

Caraga grew  by 4.9%in 2006 an acceleration from the 3.9% growth in 2005, Mining and quarrying have a remarkable growth of 101.2% compared to the previous year.

Zamboanga Peninsula exhibited a decelerated growth of 2.1% in 2006 from 6.9% in 2005 due to the substantial decrease of production in agriculture and fishery sector. Agri-Fishery contracted to a negative 1.3% in 2006 as the production of palay, corn, fishery and livestock slumped. The slump was due to the change in the cropping patterns, repair and rehab of irrigation systems in Zamboanga del Sur and flash floods brought about by the devastating typhoons.

Northern Mindanao accelerated to a 6.8% growth in 2006. All major sectors of the economy expanded in 2006 with the services sector posting the highest contribution to growth. The cheap power cost attracted investments in heavy industries such as those in the PHIVIDEC Industrial Estate. Its strategic location makes it less susceptible to typhoons.

SOCCSKSARGEN posted a significant 6.7% growth in 2006 due to the robust performance of its agri-fishery-forestry sector. High earnings in  the fishing industry propelled the region’s, likewise, High production in palay, corn, banana, coconut, sugarcane and fishery were also noted.

BIMP – EAGA Updates ( from the MEDCo Report to President Fidel V. Ramos)

Trade and Investment Linkages Thru BIMP-EAGA

Mindanao’s strategic location in Asia Pacific makes it a potential hub for transport, business, and telecommunications, among others.

Mindanao in Brunei Darussalam - Indonesia-Malaysia Philippines-East Asean Growth Area (BIMP-EAGA)  was dubbed as Asia’s playground in the 21st century due to our exquisite tourism assets, rich water resources and conducive climatic condition.

Mindanao’s rich soil and typhoon-free climate allows us to produce bountiful agricultural and fishery products.

BIMP-EAGA was meant to relive the old trade practiced by our forefathers centuries before; at the same time, it aims to formalize, facilitate and strengthen the ongoing trade in the south. Most importantly, it encourages the Mindanaoans and Palawenos to not always to look and rely on the far north for marketing and the like, but to turn around, take notice and take advantage of the market opportunities in the south. A major goal of this sub-regional cooperation is to expand the market horizons of Mindanao and Palawan, giving more flexibility and increasing the mobility of their people, goods and services.

During the 3rd BIMP-EAGA Leader’s Summit in Cebu City, Philippines on January 2007, one of the Leader’s directives was to enhance connectivity within BIMP-EAGA.  BIMP-EAGA has taken this directive to heart and 2007 indeed can be considered as the banner year for transport connectivity in the sub-region. The major developments include the signing of the Memorandum of Agreement (MoU) for the expansion of air linkages in BIMP-EAGA which granted Fifth Freedom Traffic Rights (FFTR) to seven (7) major EAGA airports (e.g. Bandar Seri Begawan, Balikpapan, Kota Kinabalu, Davao City), and, the agreement of Transport Ministers to designate additional five (5) airports with FFTR. The latter was reached during the 2nd Transport Ministers Meeting held in July this year in Davao City. These agreements indeed raised positive responses to the airline operators.

To date, the sub-region currently has four (4) intra-regional flights. Four (4) new direct intra-EAGA air services are expected to be operational by 2008. Three of the four new flights will connect Bandar Seri Begawan to Pontianak in Indonesia, Davao in Mindanao, and Kuching in Sarawak. The Kuching-Bandar Seri Begawan flight is in fact expected to start mounting by December 2007. The fourth air route will connect Puerto Princesa City in Palawan with Kota Kinabalu in Sabah. With the expansion air routes, we expect intra-EAGA tourism to increase, as well.