The Brunei Darussalam, Indonesia, Malaysia, the Philippines — East ASEAN Growth Area (BIMP-EAGA) will push for four initiatives during its meeting this week.
Mindanao Development Authority (MinDA) International Relations Division Development Manager Officer Jonathan Miral told the Philippine News Agency (PNA) that the 12th BIMP-EAGA Summit aims to discuss how the sub-region will enhance transport connectivity, generate more private investments, enhance trade, and increase local government engagement.
Under the initiative of enhancing transport connectivity in the region, BIMP-EAGA will launch on Sunday the Davao-GenSan-Bitung roll-on roll-off (RoRo) ferry service to be led by President Rodrigo Duterte and Indonesian President Joko Widodo.
The Davao-GenSan-Bitung RoRo route will provide faster and cheaper shipping services to facilitate trade in goods in the BIMP area — cutting sailing time to one-and-a-half day and savings of up to USD1,500 (PHP74,000) per 100 twenty-foot equivalent unit (TEU).
The current route of Davao-GenSan-Manila-Manado takes sailing time of three to five weeks and costs USD2,200 (PHP109,098) per TEU.
The BIMP-EAGA is also discussing with airline companies plans to service three priority air routes that will improve linkages in the sub-region.
Miral mentioned that BIMP-EAGA wants to have direct flights between Davao and Manado, Indonesia; Zamboanga and Sandakan, Malaysia; and Puerto Princesa and Kota Kinabalu, Malaysia.
Aside from transport connectivity, the sub-region has the ongoing BIMP-EAGA Submarine Terrestrial (BEST) Cable System project, which involves the laying of fiber optics cable within the area for better and cheaper internet access.
The BEST Cable Corp. Pte. Ltd., a joint venture of Brunei International Gateway Sdn. Bhd., Sabah Economic Development Corp. Communication Sdn. Bhd., and Mindanao’s EA Trilink Corp., is undertaking the project.
Moreover, the official said the BIMP-EAGA targets to increase the participation of local governments in the sub-region to support, promote, and roll out the initiatives for the BIMP area.
Miral also noted that policy support coming from local government units can enhance the business environment in the region and entice the private sector to invest in the area.
He added that BIMP-EAGA wants to provide an incentive package to investors to boost economic activities in the sub-region.
These initiatives will contribute in improving trade in the BIMP-EAGA, Miral stressed.
Asian Development Bank data show that total trade in the EAGA in 2013 reached USD166 billion, up from USD97 billion in 2009; while foreign direct investments climbed to USD10.2 billion from USD4 billion in the same period.
The BIMP-EAGA is holding its Senior Officials’ Preparatory Meeting here ahead of the 12th BIMP-EAGA Summit on Saturday. (PNA)
