MEMBERS of the Philippine delegation attending the upcoming Sabah International Expo (SIE) have revealed plans to focus on value-adding raw materials to attract and complement Malaysian investors, with a particular emphasis on industrializing raw materials to create more finished products for export.
Romeo Castañaga, assistant regional Director of the Department of Trade and Industry-Davao Region (DTI-Davao), who will be one of the 25 delegates at the event in Kota Kinabalu, Sabah, Malaysia, from September 24 to 27, explained that Mindanao aims to transform raw materials into finished goods for export, addressing the trade imbalance.
He expressed optimism about expanding exports within the Brunei Darussalam–Indonesia–Malaysia–Philippines East Asean Growth Area (Bimp-Eaga), Middle East, American, and other Asian markets, saying that the country is actively working on new strategies to enhance its export capacity.
Regarding trade imbalances within the BIMP-Eaga region, where the Philippines often imports goods such as coal and rubber products, Castanaga acknowledged the need to reevaluate trade strategies to rectify these imbalances.
"Looking at the situation, there is a difference in the configuration of our products and exports and trading in general [in BIMP-Eaga]. For example, in Indonesia, we are importing our coal or rubber products such as tires for cars and motorcycles, therefore, may trade imbalance talaga (there is really a trade imbalance)," Montenegro said. "We are even importing our coffee, the 3-in-1 coffee that is flooding our Philippine market, so in those situations, sometimes we have to rethink our strategies."
Meanwhile, Mindanao Development Authority (MinDa) Investment Promotions Division's development management officer Anelyn Binancilan said they would be addressing the trade deficit between the Philippines and Malaysia. While she couldn't pinpoint a single factor contributing to the trade deficit, she highlighted that the Philippines primarily serves as a regional net importer, exporting raw products in smaller quantities than imports.
Binancilan also noted the challenge of having "large similarities" in products between the two countries, making Malaysia seem like a competitor rather than a trade partner. The Philippines exports raw materials to Malaysia, such as rubber and coconut-based oil.
"If tanungin mo ako kung ano iyong export bulks natin sa Malaysia, it's our raw rubber yung cup plump, maganda sana kung tires na ang ating iexport diba (If you ask me what our export bulks to Malaysia, it's our raw rubber, the cup plump, it would be nice if we export tires, right)?" she added.
It can be noted that during his state visit to Malaysia last July 26, President Ferdinand R. Marcos Jr. and Malaysian Prime Minister Anwar Ibrahim expressed their commitment to strengthening trade and investment relations between the two countries.
During President Ferdinand R. Marcos Jr.'s state visit to Malaysia on July 26, discussions between the leaders of both nations highlighted their commitment to strengthening trade and investment relations.
Plans included enhancing cooperation and exploring opportunities for future partnerships across various sectors, including transnational crimes, agriculture, halal industry, Islamic banking, education, tourism, culture, sports, and the digital economy.
The leaders also agreed to resume the 8th Joint Commission Meeting in October, a bilateral consultative mechanism to foster closer ties. ICE