Showing posts with label Economic. Show all posts
Showing posts with label Economic. Show all posts

Monday, March 12, 2012

Malling in Basilan?

1. Wow! Malling Basilan. Perfect fish in order!

“It’s time the shopping mall magnates took a serious look at Basilan,” remarked Regional Board of Investments Chair Sakiran Hajan of the Autonomous Region in Muslim Mindanao (ARMM), as he kindly accompanied me in a series of visits and meetings in his home province last week. Anyone not familiar enough with the island province, especially one coming from faraway Luzon, would have dismissed the statement as wishful thinking.  But after an enlightening visit to this much-dreaded (unduly, to my mind) part of our country, the statement does make sense to me. With a local economy that has all the signs of dynamism and growing purchasing power, the Sy, Gokongwei, Gaisano or Zobel families would do well to have a look for themselves.  They may yet be convinced that putting up a moderately sized shopping mall in Isabela City, the province’s capital, could be a missionary investment that would not only make money, but would also help hasten Basilan’s emergence out of its killing-fields image.
Several ferries and fast craft ply the Basilan Strait daily between Zamboanga City and Isabela City or Lamitan City. It takes about an hour to negotiate the 31-kilometer crossing (or half that time with the fast craft).  Counting trips and seating capacities, Hajan calculates that more than 2,000 Basileños make that trip across each way every day, many of them to spend a day of shopping and recreation in Zamboanga City.  Basilan had a population of half a million as of 2007; it would be much more by now.  It has a bustling agricultural economy, with rubber, coconut, coffee, cassava, fruits, fish and seaweeds providing a good source of income for its farmers.  The island is also home to an estimated 10,000 overseas Filipino workers sending back large sums of remittance income.
All these add up to ample purchasing power within Basilan. Indeed, if my hometown of Los Baños, Laguna, with a population one-fifth that of Basilan, can support a Robinson’s town mall (and two supermarkets as well), there seems no reason why Basilan can’t.  If it’s any indication, Basilan now boasts a Jollibee restaurant—for many, a sure sign that a place “has arrived”—and it has been there for six years.  On the other hand, the closest that nearby Sulu has had so far is a “McMickey” knock-off of the other popular fast-food chain in Jolo.
While coconut remains the single biggest crop planted, it is rubber that has made the Basilan economy, both historically and again more recently.  In the past, the island hosted large rubber plantations of familiar names in rubber—BF Goodrich, Sime Darby and Menzi, among others—making Basilan the country’s rubber capital, then and now.  The University of the Philippines also obtained a 4,000-hectare land grant on the island, planted mostly to rubber and coconut. All that made Basilan a first-class chartered city in the 1950s and 1960s, exporting copra, coconut oil, rubber and lumber to California via Guam and Hawaii.
But the onset of the Moro conflict in the 1970s ravaged the local economy, and subsequent passage of the Comprehensive Agrarian Reform Program in 1988 dissolved Basilan’s multinational plantations. The large companies abandoned their investments on the island, leaving the coconut and rubber plantations to agrarian reform beneficiaries who managed the farms as cooperatives.  The UP Land Grant turned into the Sta. Clara Agrarian Reform Beneficiaries Integrated Development Cooperative, and the BF Goodrich and Sime Darby rubber plantations were merged and converted into the Latuan Agrarian Reform Beneficiaries Association Inc.  Vast tracts of the American-owned Yakan Plantation in Lamitan were initially acquired by then Defense Minister (now Senate President) Juan Ponce Enrile and turned into his Cocoland Plantation, but later redistributed as the Lamitan Agrarian Reform Beneficiaries Cooperative.
A massive rubber replanting program embarked on by the provincial government in 2003 has since returned rubber to prominence.  As of now, there are 26,000 hectares of productive rubber farms, and another 10,000 hectares of still immature rubber trees that will become productive in a few years.  Meanwhile, observers note how rubber has brought new life back into the once war-ravaged economy of Basilan, and the economic energy is evident to any new visitor right upon alighting from the Zamboanga ferry at the Isabela City port.  Driving through the island into the city of Lamitan, one cannot help but appreciate the great natural wealth in the island’s fertile agricultural lands and lush vegetation.
Endowed with a rich watershed and even climate, the island has much hydropower potential that remains largely untapped.  We were told of one existing mini-hydro power facility, which helps lower the overall cost of power dominantly coming from expensive diesel-fired power barges.  The Basilan Electric Cooperative, while still among the worst performing in the country along with other ARMM electric cooperatives, nonetheless performs better than its similarly placed Sulu and Tawi-Tawi counterparts.  Power generation is in fact one promising investment area in Basilan; we learned that an outside investor will soon bring the island’s now deficient 7.5-megawatt capacity up to 11.5 megawatts.  With current requirement estimated at 8 megawatts, there should be room for even more given the rate at which the local economy is booming—and especially if one of those mall chains decides to come in.  And there are many more investment opportunities in this rich, fertile, and much misunderstood island that once upon a time was among the most progressive local economies in the country—and could very well be again.
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E-mail: cielito.habito@gmail.com

Sunday, February 12, 2012

Peace Business in ARMM and Mindanao


1. Peace is always been big capital business in the ARMM and entire Mindanao. The major players are Government officials, politician, NGO, donors, and rebels? 

Investment and peace in ARMM

TUESDAY, 07 FEBRUARY 2012 19:07 MERCEDES B. SULEIK / FREE ENTERPRISE
THE Mindanao problem has been festering for far too long. Many of us do not fully understand it nor the peace processes that have been continually bruited about by every administration. Neither do we appreciate what is necessary to bring peace and development to Mindanao. 
In two fora sponsored by the Eisenhower Fellows Association of the Philippines (Efap), efforts to bring about an understanding of the Mindanao conflict and the developmental requirements of the region were held at the Ayala Museum last Oct. 7, 2011 and  Jan. 20, 2012.
In October 2010, the issue tackled was what the paper presentor, Mr. Ariel C. Fernandez, dubbed as “The Other 50 Percent of the Mindanao Conflict and the Challenges Ahead” in which was discussed the proposal that all the peace talks in Mindanao could solve at best only 50 percent of the conflict.  
The other half, Mr. Hernandez opined, is about Demobilization, Community and Enterprise Development, and Reconciliation, which is different from the Demobilization, Disarmament, and Reintegration that was once offered by the Arroyo administration.  He emphasized the challenge of delivering the basic and social services to the communities affected by violent conflict, and the challenge to the business sector to invest in the conflict-ridden areas even as the peace agreement is still shaping up.  When people can participate in business and social enterprises, it will be the most effective demobilizing mechanism and will even be the answer to the disarmament issue.
Quite understandably, the business sector is wary of investing in conflict-ridden areas, and the question of whether or not it is possible to develop business models for expansion and replication from existing socil enterprises around Mindanao with cooperatives and NGOs.  Also, it is also asked if the time is ripe for business sector to actively participate in building a constituency of entrepreneurs as a key foundation to sustaining peace, and whether the business sector would be willing to share the production technologies and offer these to the market.
The second forum last January picked up from the first, and covered the topic “Opportunities Amid Conflict – A Forum on Business Opportunities in ARMM.”  Organized again by Efap together with the Australian Agency for International Development (AusAID), the forum reached out to several business groups such as the Makati Business Club, the Financial Executives Institute, and the Management Association of the Philippines as well as to the interested public.       The keynote speech of ARMM OIC Governor Mujiv Hataman stated that “Investing in the ARMM is good for business, good for peace,”  and presented in the forum his plans on how to institute reforms in the region with the support of P8.59 billion that the current administration promised to invest in the ARMM to fast-track its economic development.
A panel of speakers shared their experiences on doing business in the ARMM.  Mr. John Perrine, Chair of Unifrutti Philippines (who by the way claimed that he chose Filipino citizenship, thus emphasizing his commitment to this country), gave his thoughts as CEO of one of the country’s leading banana exporters, and how it is actually expanding its operations in ARMM. He debunked the general impression that ARMM is unsafe for business, saying that it was no more unsafe than other places in Luzon, and that he and his family have lived there in complete freedom of movement without the need for bodyguards.  
Another ARMM industry leader and President and CEO of EA Trilink Corp., Dr. Alfredo Panizales, provided insights from his experience in managing the only franchisee and licensee to provide telecommunication facilities and services in the ARMM.  He said that EA Trilink also implements the Rural Information and Communications Technology Program of the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area for the entire Mindanao and Palawan.
Two other panelists, Dr. Fermin Adriano, World Bank Consultant for Mindanao; and Mr. Ishak Mastura, former Chair of BOI ARMM also shared their insights for Mindanao peace and development.  
Dr. Adriano helped to formulate the World Bank strategy, which led to the creation of the multi-donor Mindanao Trust Fund.  He gave a list of 11 successful companies, some of which were foreign investors, with his observations on these companies operating in the conflict-affected areas (CAA), and some lessons obtaining from them. To cite a few:  (1)  Conflict did not prevent private investments in Mindanao’s CAAs; (2) Security and land access are critical investment constraints; (3) Risk-sharing through greater state participation; and (4) There is no single model for development. 
Mr. Mastura reported that as of the end of last year, private investments in the ARMM had for the first time reached the P1-billion mark, attributing the increase in investments to “gains in the peace process.”

Tuesday, February 7, 2012

Sulu Implements Infrastructure, Livelihood Projects

1. May this projects reach to the hand of Sulu people.


By NONOY E. LACSON
February 7, 2012, 6:09pm

JOLO, Sulu, Philippines – Multi-million-peso infrastructure projects and livelihood programs are being implemented in Sulu as part of the commitment of the provincial government to help its constituents improve their living conditions.
Sulu Governor Abdusakur Tan said the provincial government has embarked on a massive implementation of support and livelihood projects to help the local residents.
Tan said the projects are vital for the people of the province to improve their income.
He said his administration will continue to provide the necessary development in the province, geared towards improving the lives of the people.
In another development, Mindanao Business Council (MBC) head Vic Lao said the business sector will step in to save the benefits from the proposed Tampakan project in the municipality of Tampakan in South Cotabato.
In a recent meeting with the members of the academe in Davao City, Lao said “the Mindanao business sector has decided to step in because we do not want the benefits of this project put to waste.”
Adding that the proposed Tampakan project can contribute a solid one-percent to the gross domestic product (GDP), “and it is of Mindanao’s interest that we all help protect this investment.”
Lao lamented that several laws and regulations are not friendly with the business community in Mindanao particularly in the mining industry.
“Mining is one of the biggest contributors to the Mindanao economy and we will not allow the national government to deny Mindanao of this industry and its benefits,” Lao said.
Also last week, the MBC sent an official communication to Department of Environment and Natural Resources (DENR) Secretary Ramon Paje expressing the Council’s disappointment over the DENR head’s decision on the Tampakan project’s application for an environmental compliance certificate (ECC).
The MBC letter signed by Lao himself stated that the DENR head’s action “was based on an unfounded basis undermines and threatens investor confidence and impacts on the stability of the local business environment in Mindanao.”
According to the feasibility studies conducted by the Sagittarius Mines, Inc. (SMI), the government contractor for the proposed Tampakan project, “the Tampakan mining project can contribute an additional 10.4 percent to the gross regional domestic product of regions 11 and 12 percent annually, throughout the mine life of the project.”

Tuesday, January 24, 2012

P63 M for Sulu Agri Field

1. Good news for Sulu people if the P65 Million allotted for agri field will go to the hand of farmers safely.


P63 M allotted for irrigation to revive abandoned Sulu agri fields

By NONOY E. LACSON


Jolo, Sulu
ZAMBOANGA CITY, Philippines – The National Irrigation Administration (NIA) has programmed over P63 million for the construction of rice field irrigation canals in municipalities located in the first congressional district of Sulu province.

NIA regional director for Zamboanga peninsula Alejandro L. Alberca said the NIA has allotted P63.34 million for the improvement of rice field irrigation canals in some towns in Sulu.

The rice field irrigation canal projects in Sulu will be implemented by NIA-9 next month in coordination with the respective local government units where the project will be implemented, Alberca said.

Representative Tupay Loong (1st District, Sulu) said the irrigation canal projects is aimed at reviving the abandoned rice field in some towns in his district.

“Many rice field sites in my district has been abandoned for the past many years due to poor irrigation canals leading to rice field,” Loong said.

“Once the rice field irrigation canals will be completed, our rice farmers can engage again in planting rice for their consumption,” he said.

According to report, the rice field irrigation canals in Sulu has been abandoned for more than 40 years now due to the man-made calamity like insurgency and poor irrigation facilities.

Loong said he wanted to make his district food sufficient in the coming years by irrigating some areas of the district and infuse more fruit trees for planting and livelihood opportunities.

Loong had earlier distributed some 150,000 hybrid coconut seedlings purchased from the Philippine Coconut Authority (PCA) station in this city to replace the old coconut trees in the towns of Hadji Panglima Tahil, Indanan, Jolo, Maimbung, Pangutaran, Parang, Patikul, and Talipao – all located in the 1st district of Sulu.

Loong also distributed about 2,000 heads of ducks to the residents living along the coastal municipalities in his district.

He expressed belief that livelihood programs are the key to bail people out from poverty and eradicate insurgency in his district in the province.

“Always remember that the root cause of insurgency is poverty. Now, if I will continue to introduce a series of livelihood programs for my constituents in my district, it is just as good as saying, I am helping the authorities reduce the insurgency rate of Sulu by feeding them with food and livelihood opportunities,” Loong told journalists here.

He said agricultural seedlings like abaca, rubber and other high valued agricultural plants have also distributed last week to the people of Sulu.

Tuesday, January 17, 2012

Mindanao is the Future of the Philippines

1. The 65% of National income are coming from Mindanao, however the 15 Top Poorest Provinces out of 20 provinces  are coming from Mindanao. 
2. National Government focus the development to Luzon while the kitchen island Mindanao is suffering. 
3. Mindanao is really future of the Philippines and also the future of Southeast Asian countries. If only the National Government is sincere to develop Mindanao and people of Mindanao are also willing to reform themselves. 

More fun in Mindanao

By: 



“Mindanao is the future of the Philippines,” remarked my daughter last week. She was marveling at the futuristic new city hall rising in Tagum City, Davao del Norte (“looks like Singapore,” she said), the wide highways we traversed to get there, and the great natural wealth visible in the lush agricultural crops around. It struck me how she could make this observation on what was only her second visit to Mindanao. She had formed her first impression of Mindanao several years ago when a friend invited her to their place in Bukidnon, and was deeply impressed then at how well endowed our southern regions are.
I told her I could not agree with her more. As my current work involves helping uplift the economies of erstwhile conflict areas in Muslim Mindanao, I assured her that much more would be coming especially once these areas achieve lasting peace and draw stronger interest from business investors. For anyone who lives in or has traveled in Mindanao, the island region’s superior natural endowments relative to the rest of the country are readily apparent. But beyond what it has, key trends in the outside world also give Mindanao much headway in securing a prominent place in the country’s economic future. These key global trends are being impelled by at least four forces, namely: technological change, changing resource availabilities, evolving market preferences and growing regional economic integration.
Rapid advances in biotechnology (manipulation of individual genes) and nanotechnology (manipulation of individual atoms and molecules) are conditioning the nature of both products and markets in the world economy. Biotechnology, particularly genetic engineering, has been touted to revolutionize agriculture and dramatically boost productivity. However, this has generated a backlash of concern over food safety and environmental considerations, which has created a special and rapidly growing niche market for organically grown farm products. Mindanao’s traditional comparative advantage in agriculture, and its growing capacity in organic agriculture, will be among the strengths that could be harnessed to respond to these technologically induced global economic trends.
Meanwhile, changing resource availabilities also condition the supplies of and costs of producing both primary and manufactured products worldwide. Among these changes is the prospect of declining oil resources based on projections that the peak of the world’s finite oil reserves is about to be (if not already) reached. They also include shifts in the availability of mineral supplies, depleting fisheries and tightened labor markets due to aging populations abroad (subject of last week’s column). Mindanao’s rich natural resource endowments, especially its minerals and marine resources, will be prominent in its response to changing world market conditions induced by such resource shifts in the world economy. The general trend towardbusiness process outsourcing (BPO) due to escalating labor costs in advanced economies is also an opportunity that Mindanao has begun to cash in on, with a growing number of Mindanao cities hosting BPO firms.
Market preferences in world markets are shifting over time, partly in response to some of the above trends. Last week, we pointed out how aging populations abroad have spurred rapid growth in demand for geriatric products and services. Similar rapid growth is seen in demand for organic products, especially in wealthier markets that now place a significant premium on “natural” products. In addition, rapid growth in the giant economies of China and India is spurring new demands for food, apparel and a wide range of consumer products. It has also created a corresponding high-growth segment in the international tourism market. Demand for horticultural products (fruits, vegetables and beverages—the crops that are most prominent in Mindanao) has been surging in developed countries of the West, and within Asia itself. Growing Muslim populations in Western countries, the Middle East and Asia are also rapidly expanding the demand for halal products, which Mindanao is well positioned to meet. All these trends bode well for Mindanao as it is well positioned to meet the shifting preferences of world and regional markets.
Finally, increased regional economic integration holds great opportunities for Mindanao. Deliberate moves toward stronger regional economic integration especially within the Association of South East Asian Nations (Asean) have been ongoing for decades and are shifting to high gear. In this context, it is significant to note that while Muslims comprise a minority in the Philippines and in Mindanao, they make up the majority of the aggregate population in Southeast Asia. Thus, Asean integration is of particular significance for our minority Muslim population especially in Mindanao, as it increases the opportunity for economic activities geared toward Islamic markets, such as halal industries and Islamic finance. Beyond economic integration, Mindanao is also the logical front liner to the social, cultural and political dimensions of our closer integration with the broader Southeast Asian community, as it best embodies the Philippines’ commonalities with its Asean neighbors.
I haven’t even begun to talk about the great tourism potentials in Mindanao, which I had my family sample firsthand for the first time last week. Everyone’s now mouthing our new tourism slogan, “It’s more fun in the Philippines.” Well, we discovered that family vacations could be even more fun in Mindanao.
I think my daughter had it right: our country’s future is in Mindanao.
Opinion Channel

Monday, January 16, 2012

Dubai Pork from Mindanao

1. While Thailand (The Kitchen of the World) patronizing Halal products, a Muslim country Dubai promoting pork imported from Mindanao.


Mindanao eyes pork shipment for OFWs in Dubai
KORONADAL CITY (MindaNews/15 January) – Cut pork meat products from Mindanao may soon become an export commodity in the United Arab Emirates (UAE) to serve the palates of Overseas Filipino Workers (OFWs) there, a regional Department of Agriculture official said.
Evelyn Jaruda, feeds and veterinary drugs control officer of the DA in Region 12, said that Dubai City was initially identified as the shipment destination of “pork-in-a-box” products.
“There is huge demand for pork products not only from OFWs but also from other nationalities like the Indians,” she told reporters here last week.
Dubai is an open city and it could be used as a distribution center towards the other neighboring states in the UAE, she added.
A hog raisers industry dialogue has been conducted early this month in South Cotabato province with an official from the Philippine embassy in Dubai in attendance, Jaruda said.
If the pork export in Dubai will push through, she noted that this will be a very good breakthrough for the livestock industry in Region 12, also called SOCCSKSARGEN or Southwestern Mindanao region.
Jaruda said the sampling of pork meat products coming from the region is expected to commence this month to determine if it could pass the food safety requirements of Dubai.
She said they have already accredited hog farms in Region 12 that would supply the foreign shipment.
These are located in the cities of General Santos and Koronadal and in South Cotabato province, and one of them was identified as the Progressive Farms, Inc., one of the piggeries under the Lucio Tan Group of Companies.
If the export to Dubai pushes soon enough, this could be the first foreign pork shipment of the country.
Last December, Agriculture Assistant Secretary Davinio P. Catbagan announced that the country may start exporting pork through Malaysia, with the supplies coming from Luzon, “early this year.”
In December 2008, the country should have its first foreign pork shipment to Singapore had it not been for the detection of the Ebola Reston virus in a hog farm in Luzon.
Hog raisers in Mindanao, though far from Luzon, were all set for that shipment when the Agriculture department ordered its abortion.
The Matutum Meat Packing Corp., which is based in Polomolok, South Cotabato, was cleared by Singapore’s Agri-Food and Veterinary Authority to ship the pork meat products in the island-state.
It is the only Triple A slaughterhouse in the area that is also expected to process the pork meat should Dubai allow their entry.
Domestically, hog farms in the SOCCSKSARGEN region also supply the markets in Metro Manila, Cebu and Davao and in the provinces of Samar and Leyte. (Bong S. Sarmiento / MindaNews)

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