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A broader look at today’s business n
Sunday, November 3, 2024 Vol. 20 No. 24
P25.00 nationwide | 2 sections 12 pages | 7 DAYS A WEEK
THE SOUTH IS HEADING NORTH
WITH POLITICAL STABILITY FURTHER BEING SEALED AS THE REGION HEADS TO ITS FIRST PARLIAMENTARY POLLS NEXT YEAR, BARMM REFLECTS MINDANAO’S UNSTOPPABLE MARCH TO BEING A LAND OF OPPORTUNITY RATHER THAN CHAOS.
A VISION IN PINK The Dimaukom Mosque, or Pink Mosque, stands as a striking symbol of peace, unity and interfaith brotherhood in Datu Saudi Ampatuan, Maguindanao. Built with support from then-Mayor Samsudin Dimaukom on his family’s land, this vibrant pink mosque— crafted by Christian workmen—represents a powerful blend of cultural and spiritual harmony. Opened in 2014, its pink façade reflects Mayor Dimaukom’s vision of love and community, inviting visitors to experience the beauty of shared faith and fellowship. CAMILLE MORALES VIA CANVA
D
By John Eiron R. Francisco
ISTANCING Mindanao from the long-standing perception of a region marked by conflict and disorder, local officials are now striving to dispel this notion, presenting the region instead as a “land of opportunity and growth.” Shamera Acoymo Abobakar, Director II of Investments for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), told the BusinessMirror that they are determined to reshape this perception and showcase the region as a land of opportunity rather than chaos. BARMM, she noted, is rich in resources spanning various sectors, be it for agribusiness, manufacturing, agriculture, fisheries, aquamarine, renewable energy, and telecommunications, making the place highly conducive to investment. The BARMM, located in the southern Philippines—ranked as the country’s second-fastest growing region in 2021—contributed 7.5 percent to the national gross domestic product (GDP) of 5.7 percent, according to the Philippine Statistics Authority (PSA). PSA-BARMM data further revealed that the region’s GDP increased from P280.3 billion in 2022 to P292.2 billion in 2023, reflecting a growth of 4.3 percent, equivalent to an increase of P11.9 billion. This growth was primarily fueled by three key sectors in the region’s 2023 gross regional domestic product (GRDP): services, leading with P119.9 billion, followed by agriculture, forestry and fishing at P101.8 billion, and industry at P101.8 billion. As a result, BARMM’s per capita GRDP rose by 2.2 percent to
P58,217 from the previous year’s P56,970. Of the overall 4.3-percent growth, services contributed 2.7 percent; agriculture, forestry and fishing contributed 1.0 percent; and industry contributed 0.6 percent. Since the establishment of the Bangsamoro government under the Bangsamoro Organic Law (BOL) in 2019, the region has shown consistent economic growth and a trajectory toward positive peace, Abobakar said. “We are taking advantage of the peace and order. We are actually one of the most peaceful regions in Mindanao,” Abobakar pointed out. She emphasized that the region, with a strong population of over 4.9 million—more than half of whom are 25 years old and below—is youthful and increasingly educated, with significant tourism potential and a competitive cost of doing business. BARMM remains an “undiscovered gem,” she said, acknowledging that its progress may have been delayed due to previous conflicts. However, with enhanced peace and a wealth of investment opportunities, BARMM is attracting attention through national events, such as exhibitions and conferences organized or led by the Philippine Chamber of Commerce and Industry (PCCI), to showcase its potential. “You’ll see Mindanao as a com-
A SERENE view from the beach on Lanawan Island, Basilan, captures peaceful waves under a soft sky. AL-RAFFY ISMAD VIA DREAMSTIME.COM.
plete package—a limitless business hub in the country. We have everything here. We have our natural resources, our talented people, and our resilient communities, which can be our greatest assets for our economy,” Abobakar asserted. “When it comes to our agriindustrial economy, we will soon become, as they say, an economic powerhouse,” she added.
‘POSITIVE PEACE AND GOOD GOVERNANCE’
ABOBAKAR also noted that BARMM now enjoys “positive peace,” supported by “good governance.” She said the region is actively promoting a business-friendly environment, with the Bangsamoro government providing a mix of incentive packages under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, or Republic Act 11534, Executive Order 226, special laws, and other related legislation.
Asked about the relationship between local government and businesses, particularly small and medium-sized enterprises (SMEs), she described the relationship as strong, with local government units (LGUs) showing continuous support. Unlike other areas where leadership changes can disrupt support, the region remains consistently supportive even with shifts in leadership. According to the regional director for investments, politicians are united in their commitment to economic growth and development within their areas, with initiative of collaboration and the “power of consolidating everything,” as the LGUs are really engaged. By May 2025, BARMM will establish its first parliamentary government, becoming the only region in the Philippines governed by an Autonomous Regional Government. This government will be led by a Chief Minister and supported
by an 80-member Bangsamoro Parliament.
‘JUST CONNECT US’
MEANWHILE, as Mindanao presents itself as a vast potential business hub in the country, it must hurdle a daunting infrastructure gap, according to Jamju Rivera, Local Economic Development and Investment Promotions Officer (LEDIPO) of Isabela City, Basilan. Rivera noted that the region still trails behind Luzon despite both being large islands. He illustrated this by saying that while it’s easy to travel from Manila to Baguio and nearby provinces, travel across Mindanao “takes time.” “While our infrastructure is improving, there’s still a considerable gap. We need stronger infrastructure,” Rivera said. He highlighted the need for additional airports, better interregional connections, wider high-
ways, and larger logistics and transportation companies to effectively link Mindanao’s regions. “Mindanao has it all—innovation, creativity, diverse cultures, and rich history,” Rivera said. “All we lack is the infrastructure to connect our cities and bring out our full potential.” He called for greater connectivity not only within Mindanao but also across Southeast Asia, emphasizing the island’s strategic position to connect with Sabah in Malaysia, Indonesia, Cebu, Taiwan, China, and other neighboring provinces and countries. “Just really connect us,” he added. Another crucial factor to development are the increased public-private partnerships (PPPs). According to Elena Haw, Area Vice President for PCCI Mindanao and Director of Halal Industry Development, if development relies solely on public investment, progress will lag. She referenced successful infrastructure projects in Luzon, such as the South Luzon Expressway (SLEx) and the North Luzon Expressway (NLEx), as examples of effective PPP initiatives. However, Rivera noted that while PPPs are needed, the process needs to be simplified. Many investors are interested in developing infrastructure in Mindanao, but the complex requirements deter them from moving forward, she said. “Hopefully, through PCCI’s advocacy, we can engage the national government, possibly even Congress, to streamline these processes,” he said. “There’s significant interest in investing, but the complicated requirements and lack of clear profit assurances discourage investors,” he added. Haw further highlighted the need for policy stability, noting that in the Philippines, policy shifts often accompany changes in administration. Continued on A2
PESO EXCHANGE RATES n US 58.2540 n JAPAN 0.3800 n UK 75.5321 n HK 7.4955 n CHINA 8.1875 n SINGAPORE 44.0784 n AUSTRALIA 38.2845 n EU 63.2580 n KOREA 0.0423 n SAUDI ARABIA 15.5112 Source: BSP (October 31, 2024)