Conducting Business in the Brunei Darussalam Indonesia Malaysia Philippine East ASEAN Growth Area: Prospects, Opportunities and Challenges BIMP-EAGA Business Council Bernardino Moningka Vega, Jr

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Conducting Business in the Brunei
Darussalam Indonesia Malaysia PhilippineEast
ASEAN Growth Area Prospects, Opportunities and
ChallengesBIMP-EAGA Business Council
Bernardino Moningka Vega, Jr
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Content

• Sub Regional Growth Areas
• Growth Areas in Asia
• BIMP-EAGA brief history
• BIMP-EAGAs Cooperation
• Goals and Objectives
• Early Gains (1994 -1998)
• Accomplishments (2002 present)
• Prioritizing Strategic Directions for BIMP-EAGA
• Challenges and Issues
• Opportunities
• Institutional Mechanisms
• ASEAN Secretariat
• Intra BIMP EAGA

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Map of Growth Areas in East Asia
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The Various Sub Regional Cooperation in East
Asia
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The BIMP-EAGA Sub Region
BIMP-EAGA
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Brief History

• Proposed in October 1992
• Formally launched in March 1994 in Davao City,
  Philippines during the Inaugural Meeting of the
  Senior Officials and Ministers Meeting (SOMM)
• Key strategy for accelerating economic
  integration and development in the subregion

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BIMP-EAGA (update 2002)

• The four countries
• Brunei Darussalam (5,765 km2),
• Indonesia (1,262,301 km2)
• Kalimantan, Sulawesi, Maluku/ N. Maluku, Maluku
  dan W. Papua/ Papua
• Malaysia (198,161 km2)
• Sarawak, Sabah dan Labuan Federal Territory
• Philippines (164,023 km2)
• Mindanao dan Palawan
• Land Area 1,630,250 km2
• Population 69,426,400

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Characteristics of BIMP-EAGA

• Close proximity to one another as compared to
  their respective capitals (with the exception of
  Brunei)
• Strong historical, social and trade ties (since
  AD 800)
• Emphasis on natural resource, tourism and
  agro-based economy

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Goals and Objective
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GOAL
Increase
Trade Tourism Investments
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Basic Strategy

• Shared strategy to address the economic imbalance
  and to bring the BIMP-EAGA focus areas into the
  mainstream of economic development
• Supports the Initiative for ASEAN Integration
  (IAI)

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• Early Gains (1994 1998)
• Movement of People
• - Travel Tax Exemption
• - Establishment of Sea Air Linkages (ie.
  Manado Davao by Bouraq Airlines)
• - Liberalized Landing Rights
• - Uniform Reduced Port Tariff (ie. Pioneer
  Routes established in several BIMP-EAGA Ports)
• - Promote Socio-Cultural Events
• Provide Trade and Investment Incentives for the
  Private Sector
• - Establishment of Several Joint-Venture
  Investments such as 1) Sinar Mas Pure Foods
  tuna cannery, 2) Jaka Group desiccated coconut,
  3) Borneo Divers resort investment
• Institutional Mechanism
• - Designated the private sector as engines of
  growth the BEBC was given 5th Country
  Status

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Rationale

• Accelerate economic development
• Improve export competitiveness
• Enhance the subregions attractiveness to local
  and foreign investors
• Economic complementarities
• Shared natural resources, information and
  technology
• Joint action to cater to increased demand
• Joint action to overcome constraints
• Specialization and regionalization of production

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• 2002 Present
• Establishment of the BIMP-EAGA Facilitation
  Center
• - Kota Kinabalu, Sabah - Malaysia
• - Ensure institutional memory
• - Administration and implementation
  coordination
• Institutional Restructuring
• - Establish the 4 Cluster formation 1)
  Tourism, 2) NRD, 3) SMED, 4) TIICT
• - Revitalize BEBC more regional representation
• Introduction of the ADB as Development Advisor
• Establishment of the BIMP-EAGA Roadmap to
  Development (2005-2010)
• - Identification of flagship projects
  implementation of the value chain- 1)
• seaweed, 2) palm oil, 3) halal food, and 4)
  tourism
• Inclusion of the LGUs into the EAGA process
  (2006)

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• 2002 Present (contd)
• Accomplishments
• MOU on the 5th Freedom Traffic Rights (Air
  linkage)
• MOU on buses and coaches (Land)
• MOU on HoB (Heart of Borneo)
• Joint tourism marketing strategy EAGA as a
  single destination
• - establishment of the BETC (BIMP-EAGA Tourism
  Council)
• - joint tour packages in BIMP-EAGA countries
• - joint promotion (marketing materials) on
  BIMP-EAGA
• - Currently to establish the BIMP-EAGA Brand
• Pilot Project on CIQS single window
• - Entikong (Sarawak) Tibedu (W. Kalimantan )
• and Bitung (N. Sulawesi) General Santos
  (Mindanao)
• - Harmonization of CIQS RRPs

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• 2002 Present (contd)
• Accomplishments
• Development partners and donor agencies 1)
  North Territory of Australia, 2) GTZ (German
  Technical Cooperation), and 3) AUSAid,
• Identification of flagship projects in the
  context of the roadmap implementation of the
  value chain- 1) seaweed, 2) palm oil, 3) halal
  food, and 4) tourism
• Inclusion of the LGUs into the EAGA process
  (2006)

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Major Intra-EAGA Air and Sea Links
Air Sea
Puerto Princesa
Davao
Zamboanga
Gen. Santos
Kota Kinabalu
Labuan
Tawi-tawi
Bandar Seri Begawan
Sandakan
Manado
Tarakan
Kuching
Bitung
Pontianak
Balikpapan
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Prioritizing Strategic Directions for
BIMP-EAGAADB TA 6059 - REG
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Prioritizing Strategic Directions for
BIMP-EAGAADB TA 6059 - REG
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Prioritizing Strategic Directions for
BIMP-EAGAADB TA 6059 - REG
Strategy Components of EAGAS Revitalization
Harmonizing of Public Goods Policy
Training Ground for ASEAN Framework Agreement
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• Challenges and Issues Facing BIMP EAGA
• Cumbersome import/ export trade regulations
• Lack of coordination with local governments
• Lack of infrastructure development and linkages
• Need to harness the interest and opportunities
  offered by external Partners
• Lack of accessibility to SMEs financing
• Lack of capacity from private sector in
  optimizing the opportunities in EAGA

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Economy Ease of Starting
Dealing Employing Protecting Trade
Enforcing Doing
a Business with workers
Investor Across Contract
Business
Licenses
Border Singapore 1 2 1 1 1 1 2 Hong
Kong 2 2 12 9 2 2 1 Malaysia 4 11 19 12 3 3 10
Brunei 12 19 15 3 17 5 22 China 15 20 24 20 15
7 3 Indonesia 20 24 17 24 10 6 20 Philippines 21
22 16 21 19 11 17 Laos 23 13 20 18 24 23 16 Ti
mor Leste 24 21 18 16 18 14 24
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• Palawan
• Ecotourism

• Mindanao
• Process food
• Fisheries/ Aquaculture
• Logistics
• Plantation farming
• Light manufacturing

• Sabah/ Sarawak/ Brunei
• Ecotourism
• Energy/ oil gas
• Palm oil plantation
• Light manufacturing
• Process industries

• Sulawesi/ Moluccus
• Fisheries/ Aquaculture
• Marine/ Ecotourism
• Shipping
• Minerals

• Kalimantan
• Energy (coal/ oil gas)
• Palm oil Plantation
• Shipping
• Ecotourism

• Papua
• Oil gas
• Minerals/ metals minig (nickel ore,
• copper, gold, etc)
• Ecotourism
• Logistics

EAGA Investment Map
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• Other Opportunities
• Philippines
• Establishment of call center service
• Back office support business
• Indonesia
• Wholesaler/ retail outlet for domestic market
• Consumer goods processing and retailing
• Property
• Pharmaceutical industry
• Malaysia
• Establishment of call center service
• Property
• Manufacturing
• Pharmaceutical industry
• Brunei

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BIMP-EAGAInstitutional Mechanism
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Secretary-General
Deputy Secretary-General (Economic Cooperation)
Deputy Secretary-General (Functional Cooperation)
Office of the Secretary-General
Special Assistant (Institutional Affairs)
Finance Personnel and Training
Administration ASEC IT Special Duties Food,
Agriculture, Fisheries Forestry, COCI, ASEAN
Foundation Special Assistant (Executive
Affairs) ASEAN Summit, AMM, ARF, SOM, ASC
Research and Analysis Public Affairs Office
IAI Unit
Special Projects Unit Transnational Issues
Drugs Disaster Management Law Legal
Matters Immigration
Bureau for External
Relations and Coordination ASEAN
Plus 3 ASEAN Dialogue Partners ASEAN non-dialogue
partners Inter-regional Org. Relations Programme
Coordination ASEAN cooperation plans
Evaluation Trust Funds Accounts Resource
Mobilization BIMP-EAGA
Bureau for Resources
Development Human Development Labour Civil
Service Social Policies Health Education
Natural Resources Agriculture / Fisheries
Forestry Environment Culture and Information
Bureau for Finance and
Integration Support Finance
Macroeconomic Surveillance Statistics Infrastru
cture Energy Minerals Transport
Telecommunications e-ASEAN / ICT Science
Technology
Bureau for
Economic Integration Trade Policies
Tariffs Non-Tariffs Customs Standards
Conformance IPR Liberalization of Services
Tourism External Trade Investment Industry,
SMEs , Legal
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• BIMP-EAGA Organizational Structure and
  Institutional Mechanisms

In-Country
EAGA-Wide
Private Sector
Signing Minister
Ministerial Meeting
LGU Forum
Focal organizations
Brunei Dar.
Senior official
Senior officials Meeting
Indonesia
BIMP-FC
BEBC
Malaysia
BEBC Sec.
Nat. Secretariat
Philippines
Clusters (4)
WG/Cluster/Line Agencies/Private Sectors/
Regional Government and Stakeholders
Working Groups (11)

• Note
• Brunei Darussalam, Lead Country of Cluster on
  Transport, Infrastructure dan ICT Development.
• Indonesia, Lead Country of Cluster on
  Agro-Industry and Natural Resources Development.
• Malaysia, Lead Country of Cluster on Tourism
  Development
• Philippines, Lead Country of Cluster on SME
  Development

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BIMP-EAGA Institutional Structure
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Role of Government Facilitator

• Establish the necessary institutional cooperation
  framework to facilitate trade and investment
• Building of infrastructure
• Create the enabling environment for investment

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Role of Private Sector Engines of Growth

• Identify and take advantage of trade and
  investment opportunities
• Provide responsible representation to
  government for the formulation of policy

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The Meeting of Senior Officials and Ministers
(SOM/M)

• Primary mechanism of consultations and
  deliberations between the member countries.
• Provide strategic direction and guide lines for
  cooperation.
• To raise the attention of the national government
  in addressing the development needs of the
  cooperation.
• Rotational of chairmanship among the four member
  countries
• Continual meetings, dialogues as well as informal
  exchanges.

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BIMP-EAGA Clusters
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Clusters Working Groups

• Represents EAGAs priority sectors and provides
  implementation mechanisms for projects and
  initiatives.
• Consists of both public and private sector
  individuals.
• General framework
• Identifies opportunities and cooperation
  parameters
• Formulizes plans and approaches to accelerate
  economic growth in the sub region
• Provides strategic interventions in the various
  sectors in the sub region.
• Mechanism to strengthen in-country consultations
  and develop development plans for cooperation.
• Monitor and Evaluate implementation and action
  plans on flagship projects.

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National Secretariats (NS)

• Focal point for the exchange of information and
  coordination of in-country BIMP-EAGA initiatives
  and programs
• Tasked with ensuring that in-country initiatives
  are maintained and sustained
• Provides administrative and technical support to
  their respective Senior Officials and Ministers

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BIMP EAGA Business Council (BEBC)

• The official organization representing the voice
  of the private sector in BIMP-EAGA
• BEBC has been designated a 5th Country status
  in 1997
• BEBC is focal point based with close
  collaboration with local chambers and other
  business organizations.
• Primary competency provide advocacy on
  regulation and the facilitation of trade and
  investment. It also provides supporting role in
  investment promotions and business services for
  focal point members.
• Identify flagship projects.

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BIMP Facilitation Center (BIMP-FC)

• Strengthens coordination among the EAGA
  institutions ie., National Secretariats, Task
  Force/ Working Groups, Clusters and BEBC.
• Monitor the implementation of the flagship
  projects as well as cooperation agreements.
• Provides an institutional framework to support
  the private sector.
• Commenced operations on 19 Agustus 2003 in Kota
  Kinabalu, Sabah - Malaysia.
• Funding support of the Center is provided by all
  four member countries.

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TERIMA KASIH THANK YOUMARAMING SALAMAT
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GDP Annual Growth Rate in the BIMP-EAGA Sub
Region
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Land Area and Population by Component Area in the
BIMP-EAGA Sub Region