By David Cagahastian Catherine N. Pillas
THE Philippines will focus on stimulating economic growth in subregions within the Association of Southeast Asian Nations (Asean) when it takes over the chairmanship of the regional bloc next year.
In his speech before the Asean Leaders’ Summit in Lao PDR on Wednesday, Mr. Duterte outlined the priorities that the Philippines will push for in the 49-year-old regional bloc’s meetings next year.
“First, Asean must ensure the effective implementation of various agreements concluded through the years,” he said. “I note that since the establishment of Asean in 1967, several key economic agreements have facilitated regional economic integration of natural persons and mutual recognition, arrangement of certain professions. It certainly took to an immense amount of effort and compromise, as member-states shared their commitment and political resolve to accommodate and reconcile national interest with the regional the aspiration of one nation Asean community.”
“On the part of the Philippines, our economic focus will be toward the promotion of inclusive growth through innovation in four areas: micro, small and medium enterprises (MSMEs), e-commerce, youth and women entrepreneurship,” Mr. Duterte added.
He said Asean should focus on the growth of certain subregional cooperation frameworks, which are based on geographical locations, such as the Greater Mekong Subregion and the Indonesia-Malaysia-Thailand Growth Triangle.
BIMP-Eaga
Duterte also said the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area (Bimp-Eaga) should be revitalized.
“Hailing from Mindanao, I commit to promote BIMP-Eaga,” the President said. “We intend to open up our other major islands, like Mindanao and the Visayas, with high-quality backbone infrastructure.”
Launched in 1994 as a cooperation initiative by Brunei Darussalam, Indonesia, Malaysia and the Philippines, the BIMP-Eaga initiative sought “to accelerate economic development in areas that are geographically distant from their national capitals, yet in strategic proximity to each other.” According to an Asian Development Bank (ADB) document, the initiative eyes to hasten development “in one of the world’s most resource-rich regions that include the Heart of Borneo and Sulu-Sulawesi Marine Ecoregion.”
BIMP-Eaga covers the entire sultanate of Brunei Darussalam; the provinces of Kalimantan, Sulawesi, Maluku and West Papua of Indonesia; the states of Sabah and Sarawak and the federal territory of Labuan in Malaysia; and Mindanao and the province of Palawan in the Philippines. The subregion covers a land area of 1.6 million square kilometers, with an estimated population of 70 million, according to the ADB document.
“We will accelerate infrastructure spending by improving national roads and bridges, such as the Mindanao Logistics Infrastructure Network (MLIN) and other network master plans, including the interisland linkages,” Mr. Duterte said. “We have to further expand our roll-on, roll-off facility to Davao-General Santos and Bitung in Indonesia.”
The MLIN is a long-term development plan of the road network in Mindanao. According to Public Works Secretary Rogelio L. Singson, the Department of Public Works and Highways spent an initial P16.2 billion for the 410 kilometers of the 16 local and national road in the island-province.
Two priorities
Duterte said the other two priorities of the Philippines as chairman of Asean next year are the support for MSMEs and the greater trade cooperation with Asean neighbors, such as China, Japan, India, Australia, New Zealand and South Korea.
Support for MSMEs was the focus of the Asia-Pacific Economic Cooperation meetings in the Philippines last year.
“We will work and collaborate with Asean in helping the MSMEs look for all ways to connect them in the countries of Asean and the world,” Mr. Duterte said. “We will work in advancing our policy and regulatory environment, providing an affordable and innovative digital platforms, and accessing best practices and financial resources.”
Rule of law
Duterte also said Asean needs “stronger resolve and action to combat transnational crime” and noted that illicit and illegal-drugs trade undermines “social cohesion, the rule of law and the socioeconomic programs of a country.”
Speaking before members of the Asean Business Advisory Council, which gathers leading CEOs, heads of chambers and commerce and industry and business organizations from Asean member-states, the President emphasized that sensibly crafted and well-implemented laws are imperative toward bringing good governance and order, as well as providing an enabling environment for the country’s progress and prosperity.
“We should act together in concert to ensure that the economic gains we made so far will advance at full speed, so that Asean can confidently play its rightful role as a global player contributing to economic growth and prosperity,” he concluded.
The Abis is the Asean’s premier annual business and investment event, which coincides with the 28th Asean Summit. Per organizers, Abis is where the Asean private sector identifies, discusses and develops answers to pressing issues that impact the region’s investment attractiveness and business potential.
The Abis 2016, carrying the theme “Operationalizing Asean Economic Community—Turning Vision into Reality,” aimed at charting new ideas, opportunities and insights to propel the business sector toward regional development.
Image credits: AP/Bullit Marquez