Bimp-Eaga: Mindanao-Palawan Development

(Empowering the Filipino People)

By Former Philippine President Fidel V. Ramos
March 26, 2011, 10:06pm

MANILA, Philippines – Last 11 March, as TV reports flashed world-wide on the devastation from an 8.9 magnitude earthquake causing 10-meter-high tsunamis that shattered Sendai, Fukushima, and other northeast Japan prefectures, FVR was in Kota Kinabalu to foster sustainable tourism and environmental conservation in the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).

Seeing the massive destruction of lives, property, and the environment, FVR discarded his keynote speech for the EAGA 2011 Expo, and declared to a large audience: “Let us promote BIMP-EAGA as a quake-free investment area.”

This turned out to be a strong message to market BIMP-EAGA! While in Sabah, FVR cancelled his visit to Tokyo, scheduled 14-18 March, to address the graduating class at J.F. Oberlin University and conveyed his deep sympathy to his Japanese hosts for the grievous tragedy.

Ingredients for modernization

Today, we focus on Mindanao-Palawan access and marketing development and their connectivities from other components of BIMP-EAGA. Coincidentally, we recall that last 24 March was the 17th anniversary of the formal launching of BIMP-EAGA in Davao in 1994.

So, what still should the Philippine government – both national and LGUs – plus the private sector – do to facilitate long-delayed progress in the Southern Philippines?

In his remarks at the opening of BIMP-EAGA 2011 Expo in Kota Kinabalu and, similarly, at the Tourism Development Centre launch at the University of Malaysia-Sabah, FVR emphasized:

“This is a good time to revitalize our East ASEAN Growth Area – since the Asia-Pacific region is returning to growth after a second, even more severe global recession in 2008 caused by immoderate greed in America’s financial system.

“BIMP-EAGA has the ingredients for sustainable modernization, being rich in human power and natural resources, and is linked by that great avenue of global commerce – the South China Sea. EAGA counts on political leadership strong and intelligent enough to guarantee the stability that capital, labor and knowledge need to create social wealth.

“EAGA has an area of 1.6 million square kilometers or 5 times that of the Philippines, and a combined population of 70 million vigorous people (the largest component coming from Mindanao/Palawan).”

Need for a free trade zone in BIMP-EAGA

Some 100 delegates from the Philippines (mostly from ARMM, Palawan, and Northern Mindanao) – including Palawan Governor Abraham Mitra; General Jose Magno, chairman of the Citra-Metro Manila Tollways Corporation; Maan Hontiveros, CEO, AirAsia-Philippines; Cagayan de Oro Congressman Peter Unabia; and ARMM Executive Secretary Naguib Sinarimbo – participated.

Together with other Philippine delegates, FVR dialogued with senior leaders, notably Sabah Deputy Chief Minister Joseph Pairin Kitingan, Industrial Development Minister Raymond Tan, and Sabah Tourism Board Chairman Zainal Adlin. Sabah Chief Minister Musa Aman, official host of the Expo and Tourism events, was then in India on mission.

In Sabah in September, 2004, FVR proposed (and now reiterates): That ASEAN leaders consider making EAGA a free-trade zone within the larger ASEAN free-trade area. This will attract global investors to avail of various incentives.

There were some 30,000 visitors at the Expo, which featured 100 exhibition displays (14 from the Philippines), showcasing the sub-region’s best in Malay nativecraft; industrial, marine and agri-aqua products such as processed food; and tourism packages.

Maritime heartland in the South China Sea

Throughout history’s ebb and flow, East ASEAN’s sealanes have been conduits not only of trade and technology but also of great religions and civilizations.

Only during the “Age of Colonization” – at its height in the 19th century – did Southeast Asia’s economic centers of gravity shift to the emergent capitals of the region’s new states: Jakarta, Kuala Lumpur, Manila, and Bandar Seri Begawan.

Under this colonial pattern of development, our country’s southern islands receded into obscurity and neglect – though Mindanao possesses tremendous agricultural potentials and Palawan contains vast hydrocarbon resources.

The US and China, now the “Big Two,” are the rival poles of the global power balance. Only China – a continental country that is a civilization in itself – has the long-term potential to challenge America’s preeminence.

Their erstwhile rapport (generated by 9-11 jihadist terrorism) has been replaced by “strategic mistrust,” although not yet outright “strategic antagonism,” according to US analysts.

The Pentagon has been shifting its overseas deployments from Western Europe to the Pacific, and from Northeast Asia southward – toward Guam, the Philippines (with its Visiting Forces Agreement), and Singapore (where US warships have anchorage spaces).

China makes no secret of building a “blue-water” navy – to protect its coastal logistics hubs and seaborne trade, which generate 60-70% of GDP. Already, China’s Navy is beginning to contest US dominance of the South China Sea, which is ASEAN’s “maritime heartland.”

The warming up between Washington and Beijing following President Hu Jintao’s state visit last February is an important happening for the EAGA community which would be among the victims – should armed conflict erupt between these two titans.

Revitalizing EAGA

The BIMP-EAGA 2011 Expo and Tourism Development Center are praiseworthy efforts of Sabah authorities. No less than Brunei Minister of Foreign Affairs and Trade Jock Lim, BIMP-EAGA Business Council Chairman Andru Subowo (of Indonesia), and delegates of Australia’s adjacent states were on hand to push partnership programs.

Now, because the time is right, EAGA and its constituent local governments should complete badly needed infrastructures.

Our EAGA sub-region claims some success in integrating RORO land-sea transport services, following the Philippine system that has cut down travel costs for goods and people in our 7,107 islands.

Our four BIMP countries have improved many small air-seaports for inter-island access and are planning electric-power grids and communications systems to link component regions.

The Philippines is stimulating local industry through a “One Town, One Product” (OTOP) rural strategy, although still lacking in post-harvest, food-preservation, and other facilities.

BIMP-EAGA’s future

Clearly, governments can only do so much. At bottom, individual enterprise must supply the motive power for sustainable development.

Private sector linkages must connect separate islands into the synergetic whole that our political leaders of the mid-1990s envisioned for East ASEAN.

What future can we foresee for EAGA? We frankly say: Our sub-region’s future is what its leaders will make of it – for better or for worse.

To restore EAGA to its former glory of eight centuries ago, the first thing to do is to again make it the virtually borderless trading and cultural community that it was before the “Age of Colonization.”

This was the rationale for our previous proposal to make EAGA a Special Free Trade Zone.

Developments on BIMP-EAGA initiatives

As of February, 2011, the BIMP-EAGA Facilitation Center (the official Secretariat), reported these initiatives since 2008:

(1) Enhancing intra-EAGA linkages: Indonesia, Malaysia, and the Philippines provided incentives to airlines; designated more entry points; and adopted common shipping policies.

(2) Optimizing ICT: in tariff rationalization, financial services, and planned submarine cables.

(3) Intensifying tourism development: Thru unified marketing programs, community-based ecotourism projects, and EAGA’s “Wonders of the Natural World.”

(4) Marketing “value-added” products: With a “Fisheries Consortium” and Foodbasket Concept (including “Halal” items).

(5) Strengthening SMEs.

(6) Harmonizing Customs, Immigration, Quarantine, and Security rules.

(7) Fortifying LGU participation.

(8) Reinforcing trade, investment, and tourism collaboration with strategic partners (China, US, Japan, EU, Australia, South Korea, Canada, Russia, etc.).

BIMP-EAGA’s potentials barely fulfilled

Concurrently, our four governments must build the physical and intellectual infrastructure that will raise local economies to the level of our main islands.

The truth is that we have barely scratched the surface of EAGA’s potentials.

The challenge for the Philippines is to optimize our assets for the benefit of those who live and work in our southern islands. As elsewhere in East Asia, the success of BIMP-EAGA will depend on how closely governments and the private sector work together.

Cooperation for mutual benefit is the kind of synergy we encourage. This is why Filipinos should welcome opportunities to exploit EAGA’s potentials and support BIMP joint ventures. After all, more than being close neighbors, we are all members of the Southeast Asian family.

Since the ingredients for a dynamic, competitive economy exist abundantly in EAGA, there is no reason why cooperative endeavors should not expand and provide long-term benefits for the peoples of our sub-region.

Recommendations to Malacañang, LGUs, and private sector

We urgently recommend to our national and local authorities -- in partnership with the private sector -- the following:

(1) Urge our Mindanao Authority (MINDA), created by R.A. 9996 in February, 2010 (which, unfortunately, was not represented in Expo 2011 by any ranking official due to “lack of budgeted funds”) to engage more positively with EAGA counterparts, particularly in program implementation.

(2) Focus on current and longer-term initiatives outlined above.

(3) Support Mindanao-Palawan tourism development in terms of access and marketing, particularly Palawan’s “Underground River” which is a top contender in the ongoing “Wonders of the Natural World” contest.

Kaya ba natin ito (CAN WE DO THIS)? Kaya natin (YES, WE CAN)!

Please send any comments to fvr@rpdev.org. Copies of articles are available at www.rpdev.org.

INVESTMENT

KOTA KINABALU: The Sabah Development Corridor (SDC) attracted RM30.06 billion in investments from the private sector and government-linked companies under Phase 1 of its implementation from 2008 to 2010.
More than RM11.9 billion in projects had already been carried out, surpassing its target of RM11.3 billion.

Sabah Economic Development and Investment Authority (Sedia) said in a report that it was now in the midst of negotiations with potential investors from Brunei, Middle Eastern countries, the United States, the United Kingdom, Australia, China, India, South Korea and Japan.


A key measure of success for the first phase was the implementation of all flagship SDC projects, such as the Palm Oil Industrial Cluster (POIC) Lahad Datu, POIC Sandakan, Sandakan Education Hub and the Keningau Integrated Livestock Centre.

Other projects that have commenced are the Sabah Agro-Industrial Precinct and a number of agropolitan and infrastructure projects.

All the SDC Phase One projects, worth RM1.27 billion, had been tendered out and awarded to Sabah-based contractors by Sept 30.


In terms of job opportunities and employment creation, about 32,900 new jobs were made available in 2008 and 40,000 in 2009.

Launched in January 2008, the SDC is to be implemented in three phases.

The second phase commences this year and lasts until 2015.


The final phase is from 2016 to 2025.

Under the SDC blueprint, the focus phase is to lay the foundation for growth.

It will set off and intensify economic initiatives, plugging gaps in the infrastructure, and implement social and environmental initiatives, especially poverty eradication programmes.

Phase Two would be aimed at accelerating economic growth by attracting greater private investment and would provide specialised infrastructure with first-class human capital.

Sedia anticipates tourism to surpass the 10 per cent share of gross domestic product.

It also sees the creation of a critical mass of small and medium enterprises, serving downstream manufacturing companies.

The plan also includes agro-businesses, featuring high-value agriculture.

"The key measure for the Phase Two is for GDP to double by 2015 or for it to reach RM32 billion from 2006 figures," the Sedia report said.

The final phase of the SDC is all about expansion, aiming for Sabah to emerge as one of the leading economic regions in Malaysia, especially in resource-based industrie



Read more: Sabah Corridor gets RM30b invesments http://www.nst.com.my/nst/articles/11kors/Article#ixzz1GgA7Rx4t