Wednesday, January 17, 2007 BIMP-Eaga benefits from Asean gab
AFTER the Asean leaders successfully agreed on some policies to boost the economy during the Asean Summit held in Cebu City, good opportunities are forthcoming for the BIMP-Eaga (Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area) region.
Mindanao Business Council (MinBC) chair Romeo Serra at Kapehan sa Davao held at SM City Monday said the 5th Freedom Traffic Rights has been approved during the summit.
As this developed there will be more passengers and better load factors among airlines within BIMP-Eaga.
The major breakthrough he said would open up the BIMP-Eaga to other markets not only travel but also on trade.
Serra said in his recent meeting with BIMP-Eaga counterparts there were mentions of opening up of new routes particularly in the Northern Territory with possible new routes to Darwin.
Other areas would involve the four countries in the Eaga to engage in sustainable fuel as well as the Halal industry that are undergoing initial talks.
Serra also announced that Indonesia will be putting up a Philippine Trade Center in Manado this year with the physical structures and other related aspects already in place.
"This is the initiative of Indonesia with no cost from the Philippines," he said.
He said Philippine products especially those coming from Mindanao will be opened to other markets once they are displayed at the center.
"With the coming in of new air routes as well as better trading policies in the BIMP-Eaga I would encourage the private sector to look at the latest development and take advantage of putting up the business," he said.
He also said that in November 2007, Mindanao will host the BIMP-Eaga Conference and Business Forum in Davao City and this will be held back to back with the Senior Officials meeting.
"This was held two years ago in Brunei and we hope to put up a good hosting this year," Serra said.
While there are good things happening in the Eaga region, Serra however said, that they need to look into the imbalance trading between Malaysia and the Philippines.
He said the Philippines last year accounted for $2 billion trading imports with Malaysia but the Philippines in terms of exports to Malaysia only accounted for about $200,000.
"We need to look into the possibility of balancing our trading with Malaysia," he said.
He said there are other activities not properly accounted because other individuals wanted to do business on their own but these are not accounted into the total value.
"The number shows that we have to exert more efforts to balance the trade," he said.
He said they have to conduct inventory of products that the Philippines sells to Malaysia.
Department of Trade and Industry assistant secretary Merly Cruz admitted that there is a 90 percent difference balance of trade of the Philippines between Malaysia.
But considering that there are similarities among the four countries of the region of products and other services the process of consolidation is ideal.
She emphasized however that market is not within the four countries but to explore the outside market.
Cruz said the focus has to be among the four priority products such as bananas, Halal chicken, fish and coal.
"There are good developments coming up and there will be good opportunities for 2007," she added.
