Bangsa, tuhan, tao, salamat. These are just some of the shared words across Asia`s largest regional grouping, the BIMP-EAGA. In a bid to revive cultural ties of centuries back through trade, governments of Brunei, Indonesia, Malaysia and the Philippines (BIMP) entered into an economic cooperation called East Asean Growth Area (EAGA) formalized in Davao City 13 years ago.
This year, the nations are focusing on ICT (Information, Communication and Technology) to strengthen regional exchange. The first of its kind, an ICT fair was on display at the BIMP EAGA Confab held on October 23-27 alongside the Mindanao ICT Congress in the island`s trade center in Davao City.
The working theme of the 6th congress is “Borderless ICT Collaboration on Human Resources, Infrastructure and Technology Innovation.” The event aimed to explore the possibilities of synergizing the ICT initiatives of the EAGA member nations.
This coincides with the EAGA Senior Officials and Ministers Meeting (SOMM) discussion points: developing ICT infrastructure; strategic business development via e-commerce; human capital development; and e-governance. The event was a good opportunity for Mindanao ICT players to get to know their counterparts in Sabah, North Sulawesi, Brunei, and other areas covered by the Eaga.
BIMP-EAGA has so far engaged in cooperation in industries such as tourism, shipping, agriculture and travel. Air links in EAGA expanded to 11, from only five before the EAGA initiative. According to the BIMP-EAGA`s Secretariat website, the Davao - Kota Kinabalu route in particular registered an incoming and outgoing passenger load increase of more than 50 percent while the Davao - Manado link grew an estimated 20 percent in terms of incoming and outgoing passenger load. Two more routes connecting Brunei and Palawan, and Kota Kinabalu and Manado have been proposed. A new airline is already linking Palawan and Brunei link. EAGA has also seen the birth of another airline in Sarawak-based SAEAGA Air, but was unfortunately driven to closure by the Asian financial crisis.
EAGA`s sea transport industry also has marked developments. An addition to EAGA vessels plying the fast-growing Zamboanga - Sandakan sea link is a Malaysian-registered fast ferry. A small economic boom between these two cities has grown notable, where with increased shipping had generated more opportunities. The volume of Mindanao-bound cargo along this route has shown an average quarterly growth rate of more than 160%.
Links between Indonesia and the Philippines have led to the increased movement of people between Indonesia and the Philippines. The Mindanao Economic Development Council (MEDCo), Philippine Secretariat for EAGA, reports more than 50 percent increase in local shipping`s incoming and outgoing.
There is likewise a link from Cotabato to Labuan, which serves as a transit point for Philippine goods bound for Brunei. Traditional craft also continue to sail the Zamboanga - Labuan and Zamboanga - Manado routes.
Uniform port dues for Bruneian, Indonesian, and Philippine EAGA-plying vessels are already being levied in selected ports around these countries.
BIMP-EAGA is eyed as a major location in ASEAN of high value added agro-industry, natural resource- based manufacturing, and high-grade tourism as well as non resource-based industries.
Spanning Asia`s largest regional grouping, the BIMP land area is roughly 1.54 million square kilometers and is home to more than 50 million.
Mindanao contribution and investment
Mindanao and Palawan are the Philippine islands that are members of the BIMP-EAGA. Mindanao accounts for over 40 percent of the Philippines` food requirements and contributes more than 30 percent to the national food trade, according to MEDCo.
A total of P5.2 billion were invested in Mindanao in 2006, which generated at least 3,000 more jobs to Mindanawons, according to MEDCo specialist Ever Abasolo. More than one-third of the island`s labor force is employed in the agriculture, fishery and forestry sectors.
He also reported an almost 16 percent increase in Mindanao`s exports this year, based on the freight on board (FOB) value.
The region`s production is dominantly agriculture and fisheries-based. According to MEDCo, agriculture is the driving force behind Mindanao`s economy with close to a third of its land area devoted to agriculture.
The island`s top exports are marine and agricultural products from Western Mindanao and canned pineapple products from Northern Mindanao. The intra-regional Halal industry is being improved.
Mindanao`s agriculture, fisheries and forestry sectors posted a growth of 3.8 percent. Its exports to Indonesia grew by 96.89 percent in 2003, $12.5 million, than in 2002, $6.4 million. Export to Malaysia for the same period also grew by more than 6 percent.
Exports in 2004 were valued at $1.4 billion while in 2003 it was $1.2 billion. Its major exports are coconut oil, banana, tuna, pineapple, iron ore agglomerates, pineapple juice concentrates, rubber, nickel ores, and desiccated coconut.
Mindanao`s six regions collectively posted a 5.2 percent growth in 2006, with five of its six regions posting higher growth rates, according to figures released by the National Statistical Coordination Board (NSCB). Abasolo said the Mindanao rate is even higher compared with Luzon`s 4.5 percent and the Visayas`s 4.9 percent.
Mindanao`s growth rate was a marked increase from the 4.2 percent in the island`s gross regional domestic product (GRDP) in 2005.
Source: www.manilatimes.net (26 Oktober 2007)
