Strong Public-Private Partnership

One of BIMP-EAGAs defining characteristics is the strong partnership between the private and public sectors, with each playing a clearly defined role. Since its inception, BIMP-EAGA recognized for growth in the subregion to be sustainable it must be marketdriven and private sector-led. The private sector is thus considered as the primary engine for BIMP-EAGAs growth. The role of the public sector is that of facilitator and enabler. As such, the participating governments are committed to provide BIMP-EAGA with: A facilitative framework created by coordinating and harmonizing public policy to establish a unified business climate conducive to investment Adequate physical infrastructure needed to link the businesses of the subregion and to improve their access to regional and global markets An effective commercial infrastructure, by providing avenues for financing, information, and skills to improve entrepreneurial capacity and capability.

Early Gains and Achievements

The strong commitment of the four participating governments enabled EAGA to demonstrate tangible results within three years after its inception. National policies were modified, cooperative agreements were facilitated and cross-border arrangements were explored. Among other achievements, the participating governments facilitated the liberalization of the transport sector to allow for greater mobility of people, goods and services. Within a short period, new and direct commercial air and sea linkages were established between major urban areas in the subregion. Several airport and seaport infrastructure facilities throughout EAGA were upgraded to accommodate the expected increase in passenger and cargo traffic. To facilitate intra-EAGA trade, uniform port tariffs in selected ports were established. To support tourism and promote travel within the sub region, policies on travel, including procedures and documentary requirements, were streamlined and exit taxes for travel within EAGA were waived. Another achievement was in telecommunications. Major telecom firms operating in the EAGA areas implemented substantial tariff reductions on long distance calls within the subregion, enabling greater interaction among businesses. Of the productive sectors in EAGA, tourism initially benefited the most, with significant increases in both domestic and cross-border investments in hotels and other tourism-related facilities and activities. EAGA-wide cultural events, trade fairs, tour exchanges and sports events were held by various public and private tourism organizations. This raised awareness not only of the subregions world-class destinations, but also of investment opportunities in tourism.

Organizational and Institutional Structures

To operationalize the EAGA cooperation initiative, institutional structures and cooperation mechanisms were established both at the country and at the subregional levels. The BIMP-EAGA Summit

The annual Summit of Leaders is the highest policy level mechanism of BIMP-EAGA. It is where the Leaders of the four member countries review the accomplishments and provide new directives to enhance cooperation. The Summits clearly demonstrate that BIMP-EAGA not only has full political support but also that Leaders are taking great interest in the developments in the subregion. The Senior Officials Meeting and Ministers Meeting (SOMM) At the subregional level, the principal mechanism for consultation among the member countries is the Senior Officials Meeting (SOM) and the Ministers Meetings (MM). The SOMM provides the subregions strategic directions and general policy guidelines, in addition to drawing the attention of the central governments to the development requirements of the growth area. The SOM is held at least twice a year and the MM takes place once a year. The Clusters and Working Groups The core operational mechanism for BIMP-EAGA consists of the four Working Group Clusters representing the subregions priority areas of cooperation. Within each cluster are Working Groups representing the priority sectors for development. Public and private sector organizations participate in both the Clusters and the Working Groups. Together they identify opportunities and constraints to cooperation development; establish the sub regions Flagship Projects; and formulate action plans to accelerate implementation of the Flagship Projects and improve growth in the subregion.

Cluster Transport, Infrastructure, & ICT Development (TIICTD)

Working Group Air Linkages Sea Linkages Land Transport Construction & Construction Materials Telecommunications & Information Communication Technology Agro-Industry Fisheries Cooperation Forestry & Environment Energy & Mineral Resources

Lead Country Brunei Darussalam

Natural Resource Development (NRD) Joint Tourism Development (JTD) SME Development (SMED) Customs, Immigration, Quarantine & Security (CIQS)

Indonesia

Joint Tourism Development Capital Formation & Financial Services Customs Sector Immigration Sector Quarantine Sector Security Sector

Malaysia Philippines Philippines

The National Secretariats

BIMP-EAGA initially had a fully decentralized institutional structure without a central secretariat. To ensure that in-country initiatives were sustained, each member country designated a ministry or government agency to serve as its BIMP-EAGA National Secretariat. The National Secretariats mainly coordinate in-country EAGA activities and ensure that commitments are delivered on a timely basis. The National Secretariats also provide technical and administrative support to their respective Senior Officials and Ministers. BIMP-EAGA Facilitation Center The fully decentralized structure gave BIMP-EAGA the flexibility it needed in its formative stages. However, with the anticipated increase in development projects and the growing interest from a number of external partners, the SOMM agreed to create the BIMP-EAGA Facilitation Center (BIMP-FC). The BIMP-FC is an important component of the concerted effort to revive the EAGA initiative. BIMP-FC is designed to accelerate cooperation development in BIMP-EAGA by establishing more structured institutional coordination and project facilitation mechanisms. The terms of reference of BIMP-FC include: Undertaking, jointly with the private sector, investment promotion and business networking activities; Establishing and maintaining an information database; Coordinating the promotion of trade-related events; Establishing systems and undertaking monitoring of project implementation activities; and Assisting the private sector in resolving issues related to the implementation of projects.

The BIMP-FC is public sector-led central secretariat. It complements the efforts of the BIMP-EAGA Business Council (BEBC) in coordinating trade and investment activities, and in facilitating the implementation and monitoring of priority development projects. The BIMP-FC also functions as the secretariat for the SOMM. Originally hosted and funded by the Federal Government of Malaysia and the State Government of Sabah, the four member governments of BIMP-EAGA now jointly fund the operations of the BIMP-EAGA FC. BIMP EAGA Business Council The BIMP-EAGA Business Council (BEBC), formerly known as the East ASEAN Business Council, was established on 19 November 1994. It is the official representative organization of the private sector in EAGA. In recognition of its standing as an equal partner in the development of the subregion, BEBC was accorded fifth country status in 1997. As the unified voice of the EAGA private sector, BEBC brings directly to the attention of the participating governments the concerns and views of the private sector. A Board of Directors governs BEBC composed of three directors from the designated focal private sector organizations. A Chairman leads the Board and a Deputy Chairman serving as the Executive Director are elected to serve three-year terms. Chairmanship of the Board is rotated among the four countries. The objectives of BEBC are to: Promote economic development and other business activities in EAGA; Foster closer relationships and economic cooperation among business organizations in the EAGA; Deal with issues of common concern and disseminate pertinent information; Make representations on behalf of the BEBCs members with the involved governments and to liaison between businesses, other economic entities and relevant governments authorities within EAGA; and Advocate for policies, plans, projects and regulatory changes. In 2003, BEBC successfully carried out its organizational restructuring, and is now re-focusing its attention on

the development of small and medium enterprises (SMEs).

Brunei Darussalam
The sultanate of Brunei Darussalam is a young nation-state, having gained independence from the British only in 1984. The country lies at the northwestern corner of Borneo Island. Bandar Seri Begawan is its capital. Brunei Darussalams economy is dominated by the oil and liquefied natural gas industries. The country is the third largest producer of oil in Southeast Asia and the fourth largest producer of natural gas in the world. Brunei Darussalams exports consist of three major commodities: crude oil, liquefied natural gas and petroleum products. Exports are mostly to Japan, Republic of Korea, the United States and ASEAN country. The second most important sector is the construction industry. This is mainly due to the increased investment by the Government in development projects and programs of the five-year National Development Plan. Brunei Darussalam has entered a new phase of development in its drive towards economic diversification. The contribution from the non-oil and gas-based sectors of economy, as a contribution to GDP, has steadily increased since the early 1990s. The private sector (other than the oil and natural gas sector) contributed 24.31%, compared to 46.43% of the oil and natural gas sector. The number of private sector establishments (registered) has also increased. Brunei Darussalam offers land resources and a variety of facilities throughout its four districts, including 12 industrial sites already developed. Extensive areas for agro-forestry and aquaculture are also available. Rental terms and tenancy agreements are competitive, and the sites offer a range of facilities, infrastructure and resources. Brunei Darussalam gives priority to sustainable management of the natural environment. All its development sites are free from pollution and are ecologically balanced. Brunei Darussalam has a rich culture and royal heritage dating back some 500 years. Local attractions include the worlds largest water village, Istana Nurul Imam, and the Ulu Temburong National Park.

Capital Land Area (sq. km.) Population GDP (in B$ billion) GDP Growth Rate GDP Per Capita (B$) Imports (in B$ billion) Exports (in B$ billion) Major Import Items

Bandar Seri Begawan 5,765 sq km 383,000 18.9 3.8% 49,400 2.481 * 10.397* Food, manufactured goods, machinery and transport equipment

Major Export Items Major Trading Partners

Oil & Gas (LNG), Garments Japan, South Korea, USA, ASEAN

From Brunei Darussalam Key Indicators 2006 Figures for 2006 * Figures are for 2005

Indonesia
Sulawesi (Celebes) lies between Kalimantan and Maluku and is Indonesias third largest island. A volcanic range stretches from north to south, covered mostly in rainforests and uninhabited areas. Sulawesi is divided into six provinces: North, South, West, Central, South East and Gorontalo. North Sulawesi lies on a narrow peninsula with six dormant volcanoes. Rich volcanic ash has made the provinces land extremely fertile. The lowland valleys produce rice, vanilla, nutmeg, corn, coconut, palms, and cloves. The predominant export is copra and cloves. North Sulawesi is heavily industrialized, and has higher standards of living than the other three provinces. Within a short distance from Manado, the provincial capital, there are 41 tourist spots, including extensive marine parks and scuba diving and beach resorts. South Sulawesis agricultural products include irrigated rice, sugarcane, cotton and corn and export plantation crops of coconuts, coffee and rubber. Its extensive grass plains support extensive herds of livestock. The province is Indonesias second largest exporter of cattle. Copper and oil deposits have been discovered in recent years. South Sulawesi is also famous for its tremendous scenery and the superior talent of its silk and silverwork industries. This province is a major Indonesian tourist destination, with many direct links overseas. Ujung Pandang (now Makassar), its capital, is a major airport and seaport, where passenger liners call frequently. West Sulawesi is one of the youngest provinces in Indonesia, which was established in 2004 resulting from the separation with the South Sulawesi Province. Mamuju is the capital city of the province. It has direct access to the Makassar Strait and to neighboring Kalimantan Island and to land strips connecting cities around Sulawesi Island. The provincial government of West Sulawesi is putting in place measures to open up the province to regional and international trade with small medium enterprises as the anchor for development. The province is rich in agricultural, fisheries and mineral resources. Major agriculture products include cocoa, coffee, coconut, and clove. Abundant sources of gold, coal and oil are found in the West Sulawesi. Tourism is one of the important emerging industries of the province. Central Sulawesi, situated at the heart of the Indonesia archipelago, features ancient megaliths, indigenous tribes, mossy mountains, blue lakes, the longest river for white water rafting, fantastic snorkeling and diving on coral reefs, and unpopulated small islands surrounded by endless white beaches. Until 1980, the province lay isolated, but with the recent opening of the Trans-Sulawesi Highway, the province now has access to both Manado in the north and to Ujung Pandang in the south. In the interior, rivers serve as the main means of transport. Major food crops include rice, corn, peanuts, and soybeans. Commercial crops include coconut, clove, rubber, cacao, coffee, and pepper. Commercial forestry products include rattan, resin, incense and logs. Southeast Sulawesi consists of three main islands (Peninsula, Buton and Muna) and other small islands spread out in the south and southeast of the peninsula. The province exports forest products and is famous for its fine silver crafts. A Japanese nickel project is a major investment here. Most of Southeast Sulawesi is covered by natural jungle, with extensive plantations of teak and ironwood. The beauty of the region is being preserved through the formation of national parks and nature reserves. Gorontalo was part of North Sulawesi until 2001, when it was declared a separate province. Gorontalo has 56

small islands, divided into the Boalerno Regency (38 islands) and Gorontalo Regency (18 islands). The current focus of the local government is on improving and expanding vital infrastructure, including the development of the airport, sea port and inter- and intra-province road networks. Gorontalos economy is largely agricultureand natural resource-based. Corn is the major product, and a development priority is the establishment of more commercial corn plantations. Other major products include coconut, cloves, nutmeg, cashew, cocoa and coffee. Gorontalo is known to have significant gold and copper deposits, which are still largely untapped. Tomini Bay, the largest bay in the world, bounds Gorontalo in the south. Lying along the equator, Tomini Bay offers a rare water quality that supports highly diverse marine life, including large and small pelagics, lobster, reef fish, and squid. The bay also provides 1,620 kilometers of pristine white sand beach ideal for tourism development. Gorontalo is an ideal location for investments in infrastructure, commercial plantation, fisheries, transport, and hotel and resort development.

Kalimantan comprises roughly the southern three-quarters of Borneo, the third largest island in the world. The Malaysian states of Sabah and Sarawak and the sultanate of Brunei lie to the north, occupying the islands northwest quarter. The territory covers approximately 28% of Indonesias total land area, but has only 5.4% of its population. Kalimantan is divided into four provinces: East, West, South and Central. East Kalimantan is the second largest province of Indonesia. It is a major producer of oil and timber and is at present the most industrially advanced of the Kalimantan provinces. The main attractions of East Kalimantan are found along the Mahakam River. From the Bayur Estuary, the Mahakam reaches more than 350 kilometers northwest into the province with its 920 kilometers of running water. West Kalimantans capital, Pontianak, lies directly across the equator and is the main gateway to the province. The city is a bustling economic hub. Canals crisscross the city and one of Indonesias longest rivers, the Kapuas (1,143 kilometers long), divides the town into two, providing an essential and historical communications link. Like Java and Sumatra, West Kalimantan was once an important cultural crossroad. West Kalimantan is rich in a variety of minerals and precious stones that is largely still unexplored. Coastal areas are mainly swamplands with more than 100 rivers sculpting the flat plains. Riverboats are still the most important means of transport here, even if transport by road becomes more and more common. West Kalimantan is easily accessible from Jakarta or Singapore by air and boat and overland journeys provide a rare opportunity to see the interior of one of the worlds largest and richest islands. Places of interest in West Kalimantan are Pontianak; Betong (Long House); Pasir Panjang beach resort and the Gunung Palung National Park. South Kalimantan is divided into two distinct regions. The eastern part of the province is mountainous and lush with dense tropical rain forests, and is home to the Orang Gunung or mountain peoples. The southern section of the province is much flatter, with large rivers meandering through lowlands to vast mangrove swamps along the coast, helping to make South Kalimantan an exceptionally fertile land. South Kalimantan is full of colorful and distinctive traditional arts and cultures which can be seen in its peoples ways of life, art, dance, music, ancestral dress, games and ceremonies. Exquisite traditional and commercial handicrafts are all made from local raw materials that include a variety of precious stones, gold, silver, brass, iron, and wood species including bamboo and rattan. South Kalimantan is one of the largest wood producers in Indonesia. Extensive forests with a vast array of trees such as ironwood, meranti, pinus and rubber have helped to make the province unique and rich in natural resources. The provincial capital of Banjarmasin lies a short distance from the mouth of the Barito River. The rivers are the life-blood of the city and everything revolves around them. Central Kalimantan is the biggest province in the island. Approximately 80% of the provinces area is jungle. The northern area is mountainous and difficult to reach. Transportation facilities are limited due to the rough terrain and the central area is dense. Fertile tropical forests produce valuable commodities such as rattan, resin and the best woods. The southern area is swampy and has many rivers. Palangkaraya is the center of

government, trade and education of the province.

Papua Island (Irian Jaya) is a land of contrasts, with some of the most impenetrable jungles in the world and snowcapped mountain peaks towering over glacial lakes, representing almost 21% of the Indonesias total land area. Papua Island is the countrys easternmost area and covers the western half of the worlds second largest island. Papua Province has the largest area among all the provinces in Indonesia. Jayapura is its capital city. The province is located in the west of New Guinea and Jayapura is its capital city. It is rich in mineral resources including copper, gold, oil and gas. The mining sector represents more than 50% of the provinces economy. Papua has an estimated 2.5 billion tons of gold and copper reserves. Ninety percent of Papuas mainland is covered by forest with more than 1,000 species of plants. Although small plantations have been developed in recent years, commercial production of palm oil, cacao, arabica coffee, and rubber have immense potential in the province. The province is also known to have the best coral stone, the widest mangrove forest in the world. West Papua, home to only around 800,000 people, is the least populated province of Indonesia located on the western end of the island of New Guinea. Manokwari is the capital of West Papua. It covers the Birds Head (or Doberai) Peninsula and the surrounding islands. According to the World Wildlife Fund (WWF), Birds Head Peninsula is covered by the Vogelkop Montane Rain Forests Ecoregion, which includes more than 2.2 million hectares of montane forests at elevations of 1,000 meters and higher. Incredibly rich in glorious-looking birds, swathed in lush forests and steeped in thriving traditions, West Papua has more than earned its position as a biodiversity treasure through millions of years of evolution.

Maluku Islands. The over 1,000 islands of Maluku are sprawled across a vast expanse of ocean, sitting astride one of the worlds most volatile volcano belts. These are the famous spice islands which drew Indian, Chinese, Arab and eventually European traders in search of cloves and nutmeg. Maluku is a transition zone between the Asian and Australian fauna and flora, and also between the Malay-based cultures of western Indonesian and those of Melanesia. Maluku is divided into two provinces: Maluku and North Maluku. Maluku province comprises broadly the southern part of the Maluku Islands (also known as the Moluccas, Molucca Islands or Moluccan Islands). Maluku traditionally belongs to Melanesia and is one of the oldest provinces in Indonesia history. All the Maluku Islands formed a single province of Indonesia from 1950 until 1999 when the Maluku Utara Regency and Halmahera Tengah Regency were split as the separate province of North Maluku. Known as the Land of Thousand Islands, Malukus cultural diversity and natural resources is outstanding. Based on its geography of more sea than land area, the population heavily depends on sea transport to connect them to other areas around them. Ambon is the main city and capital of Maluku province. Agriculture drives the economy of the province. Principal commodities include palawija, corn, peanut, cassava and sweet potato. The plantation sector produces clove, nutmeg, cocoa, coffee and cashew. North MalukuI, one of the least populated provinces of Indonesia, covers the northern part of the Maluku Islands, which are split between it and the province of Maluku. Ternate, its capital, was once the seat of the most important kingdom made rich by the spice trade. In the sixteenth and seventeenth century, the islands of North Maluku were the original "Spice Islands". At the time, the region was the sole source of cloves. The Dutch, Portuguese, Spanish, and local kingdoms including Ternate and Tidore fought each other for control of the lucrative trade in these spices. Clove trees have since been transported and replanted all around the world and the demand for clove from the original Spice Islands has ceased, greatly reducing North Maluku's international importance. Today, the province relies heavily on agriculture, forestry, and marine fishery. Nickel and gold mining are emerging industries. Tourism is also fast becoming an important industry anchored on old customs and traditions and rich artifacts from ancient empires of the Ternate and Tidore Sultanate.

Malaysia
Sabah, the second largest state in Malaysia, is located on the northwestern tip of Borneo and shares a border with the Indonesian province of Kalimantan. Agriculture is the most important sector in Sabahs economy, contributing about 24.2% to the states GDP. The states agriculture sector remains dominated by the cultivation of oil palm. Presently, the land area planted is approximately 1.244 million hectares or 88.2% of the total agricultural land. Other major agricultural commodities exported include crude palm oil, cocoa and rubber. Major non-agricultural commodities include crude petroleum and plywood. The Sabah Development Corridor (SDC), launched in 2008 was initiated primarily to accelerate the growth of the Sabah economy and to bridge the rural-urban divide while ensuring sustainable management of the states resources. One of the dual objectives of the SDC is to accelerate development in less developed districts by creating economic opportunities, improving infrastructure and amenities to narrow the rural urban gap. To achieve that noble objective, growth corridors and growth centres will be developed in an integrated manner focusing on the three economic drivers for SDC namely agriculture, tourism and manufacturing, as well as enhancing Sabahs infrastructure and human capital. In the regional context, one of the SDC programs is to catalyse growth of manufacturing and downstream processing industries as well as increasing trade activities between the BIMP-EAGA countries and North Asia. The Halatuju a document on the strategic imperatives to bring development and progress to Sabah - is the principal guide for the states overall economic, social and political development. The document is crafted to reinforce past and current measures aimed at expanding overall productivity and improving on capabilities for regional tourism. It puts emphasis on the tourism, agriculture, and the manufacturing sectors as the primary engines of growth and development. Cross-border trade (barter trade) between Sabah and her neighbors, Southern Philippines and Eastern Kalimantan, is significant, with total trade values ranging between RM150 million (US$39.5 million) to RM300 million (US$78.9 million) per year. Barter trade plays an important role in enhancing and sustaining the socioeconomic development and growth of the local economies of the focus areas. To diversify its economic base the State Government is also actively promoting development of the tourism industry. Sabah is best known for its adventure and ecotourism attractions, such as Mount Kinabalu, South East Asias highest peak at 4,101 meters, pristine rainforests in the Danum valley, proboscis monkeys along the Kinabatangan River, the worlds largest orangutan sanctuary at Sepilok, and many beautiful islands and beaches with excellent diving sites offshore. Sarawak, the largest Malaysian state, shares borders with the province of Kalimantan on its south side and with the sultanate of Brunei Darussalam on its northeastern side. Sarawaks economy is largely driven by its abundant natural resources such as oil, gas and timber, but since the 1980s, Sarawak began diversifying and transforming its economy. The manufacturing sector is now the focus and catalyst for future economic growth and development of the State. The State also has a strong economic growth with low inflation rate. Sarawak GDP growth in 2005 was 5.0% with 2.2% inflation rate and in 2007, GDP growth was estimated at 5.8% with 2.0% inflation. Sarawak owes its economic growth to the sectoral shift from primary to secondary and tertiary sectors with focus on the manufacturing and services sector as well as agriculture in large-scale plantation. Sarawak has a wealth of natural resources from gas and petrochemical to agriculture and forestry. With an abundant supply of natural resource, the State is capable of sustaining resource-based industries and providing great opportunities for growth in value-added processing ventures. The Sarawak Corridor of Renewal Energy (SCORE) is a major development undertaking primarily to develop the central region and eventually transform Sarawak into a developed State in tandem with national policy and

mission towards the year 2020 and beyond. The development of the regional corridor will capitalize on the regions abundance of energy resources such as hydropower, coal and gas, a pre-requisite for the development of energy-based industries to have access to relatively cheaper-priced electricity, its rich silica deposits, vast potential in palm oil and timber as well as new resource-based industries such as aquaculture and livestock. One of the most attractive features of Sarawak is its cultural diversity, which has helped establish the state as one of the most popular tourist destinations in the region. Sarawak is also known for its adventure and ecotourism. Among the popular sites are the Mulu Caves (one of the largest limestone cave systems in the world), Niah Caves, inland rivers, and several excellent national parks. The Federal Territory of Labuan is an island situated off the west coast of Sabah. Labuan is Malaysias International Offshore Financial Centre, which in 1991 was also declared a duty-free port. The tiny island is strategically located along the international shipping and air routes between the Indian and the Pacific oceans. Business and investment opportunities abound in Labuan, particularly in oil and gas, manufacturing, trading, tourism, cargo handling and bunkering, deep-sea fishing, offshore finance, insurance and education.

Facts Capital Land Area (sq. km.) Population (000) GDP (RM billion) GDP Growth Rate Per Capita GDP (RM) Imports (RM Million) Exports (RM billion) Major Import Items Major Export Items Major Trading Partners

Sabah Kota Kinabalu 73,997 2.99 15.9 5.5% 5,305 21.8 27.1 Machinery & Transport Equipment, Manufactured goods, Food, Mineral fuels, Lubricants and Chemicals Palm Oil, Crude Petroleum, Plywood, Sawn Timber, Palm Kernel Oil, HBI, Methanol, Veneer Sheets Peninsular Malaysia, USA, Japan, Korea, China, India, Singapore and the Netherlands

Sarawak Kuching 124,449 2.40 24.6 5.8% 9,863 22.3 61.2 Machinery & Trans equipment, manufactured goods, food and mineral fuels LNG, Crude Petroleum, forestry products Japan, Korea, Peninsular Malaysia

Philippines
Mindanao, long seen as the land of promise, is emerging as the Philippines forerunner in economic development. The second largest island in the Philippine archipelago, with a total land area 102,000 sq. kilometers Mindanao is composed of 25 provinces, 27 cities, and 403 municipalities, grouped into six regions: Zamboanga Peninsula (Region IX), Northern Mindanao (Region X), Davao Region (Region XI), Soccsksargen Region (Region XII), Caraga (Region XIII), and the Autonomous in Muslim Mindanao (ARMM). Blessed with a typhoon-free climate, abundant rainfall, numerous river basins and fertile soil, the island has been identified as the Philippines food basket, with a capacity to feed the whole country and the rest of East ASEAN. Basically agriculture-based and export oriented, it is the countrys leading producer of rubber, cacao, banana, coffee, coconut, corn, pineapple, carageenan, and tuna. A number of global agri-business firms, such as San Miguel Corporation, Nestle Philippines, Cargill, Dole and Del Monte are located in Mindanao. Mindanao is an active player in the world market with major trading partners that include Japan, USA, Netherlands, Korea, and China. Cross- border trade within the EAGA is also increasing with a robust exchange of goods with Indonesia and Malaysia. Mindanao is accessible by sea, air, and land transport. Major hubs are located in the key cities. Domestic and international vessels call at Mindanaos major ports located in Davao, General Santos, Zamboanga, Polloc, Cagayan de Oro, Surigao, Nasipit, Cotabato, Ozamis, Pagadian, Dipolog and Jolo. Palawan, an island-province in the Southern Tagalog region, is an acknowledged nature paradise and one of the worlds premier tourism destinations. The Philippines largest province, Palawan features about 1,780 islands and islets of white sand beaches, emerald forests and deep sapphire waters off the Sulu and South China Seas. Its coastline is dented by coves and bays ideal for fishing and harbors, and is generally free from typhoons and far from geologic fault lines. At the heart of Palawan is quaint Puerto Princesa City, its capital, a 55-minute flight from Manila. Palawans economy is agriculture-based with rice, corn and coconut as its major products. Its rich fishing grounds are sources of tuna, mackerel, lobster, shrimp, and carrageenan, among others. As the only oil-producing province in the country, Palawan produces crude oil at seven oil fields off the northern coast. Natural gas reserves in the Camago Malampaya gas fields in the northwest are estimated at 3.0 trillion cubic feet. Palawans abundant mineral resources offer great potential. Industrially valuable deposits include nickel, chromites, mercury, iron, saprolite, feldspar, talc, marble, silica, sand and gravel. Nickel ore is mined at Rio Tuba, Bataraza in Southern Palawan.

Facts Capital Land Area (sq. kms.) Population (000)

Mindanao

Palawan Puerto Princesa

102,043 sq.km 19,871.398

16,403.sq.km 755,412

GDP (in PhP Million) GDP Growth Rate (%) Per Capita GDP (PhP) Exports (US$ Million) Imports (US$ Million) Major Export Items Major Import Items Major Trading Partners

184,329 2.87% 9,915 1,228.94 627.94 Bananas, Tuna, Coconut oil, Pineapple, Fruits, Shrimps Iron, Wheat and Meslin, kraft liner, rice, urea Japan, USA, Netherlands, Australia

15,340 3.12% 20,300 .512 70.33 Fishery products Manufactured goods

JOINT STATEMEN BRUNEI DARUSSALAM-INDONESIA-MALAYSIA-THE PHILIPPINES-EAST ASEAN GROWTH AREA (BIMP-EAGA) LEADERS MEETING BALI, 6 OCTOBER 2003 1. We, the Leaders of Brunei Darussalam, Indonesia, Malaysia, and the Philippines held a meeting today to discuss the development in the Brunei, Indonesia, Malaysia, PhilippinesEast ASEAN Growth Area (BIMP-EAGA). Our discussion primarily focused on reviewing the activities undertaken thus far by BIMP-EAGA, and determining the future direction of the development in the sub-region. 2. We reaffirmed the importance of BIMP-EAGA as a sub-regional growth area within the overall context of bridging the development gaps in ASEAN, and the importance of accelerating its economic development to improve the livelihood of its inhabitants, ensure the fair distribution of the benefits of growth, increase prosperity, and maintain security stability in the sub-region. 3. We noted the on-going progress in the sub-regional cooperation led by the private sector under the East ASEAN Business Council (EABC) and the support of regional governments by providing various investment incentives and trade facilitation schemes. To better respond to the needs of the private sector, we tasked our relevant ministers to develop more attractive trade and investment regimes, promote the development of external trade and undertake measures to eliminate trade impediments so as to reduce the cost of doing business in the BIMP-EAGA region. 4. We are determined to enhance BIMP-EAGA initiatives by strengthening the institutional set-up of the BIMP-EAGA sub regional cooperation. We therefore tasked our concerned ministers and senior officials to strengthen the coordinating mechanism of the BIMP-EAGA cooperation with the establishment of a BIMP-EAGA Facilitation Centre in Kota Kinabalu and by empowering national focal point institutions. We commended the Government of Malaysia for providing the support to the establishment of the Centre. 5. We agreed to pursue a more pragmatic approach in forging cooperation by initiating BIMPEAGA flagship projects that will produce greater impact in the sub-region. We endorsed the recommendation of our ministers and senior officials to focus, among others, on cooperation in tourism, transportation, and agro-industry sectors, even as they continue to cooperate in other prime-mover sectors which reflect the strength of the sub-region. 6. We tasked our transport ministers to meet and take the lead in further promoting the development of land, air and sea linkages so as to encourage the flow of tourists, goods and services. 7. We acknowledged with appreciation the support of the Asian Development Bank (ADB), as the regional development advisor of BIMP-EAGA, and the ASEAN Secretariat, and requested their continued support for the formulation and implementation of the BIMP-EAGA development programmes in line with the Initiative for ASEAN Integration (IAI). 8. We welcomed the support by the Plus 3 countries (China, Japan, Korea) in the development of BIMP-EAGA. Their participation in the future of the sub-region is will contribute towards achieving our long-term vision of an integrated East Asian Community. We also took note of the interest of the Northern Territory of Australia to establish close linkages and partnership with the BIMP-EGA region.

2ND BRUNEI DARUSSALAM-INDONESIA-MALAYSIATHE PHILIPPINES-EAST ASEAN GROWTH AREA SUMMIT (2ND BIMP-EAGA SUMMIT) 11 December 2005, Kuala Lumpur 1. We, Leaders of the Brunei Darussalam-Indonesia-Malaysia-the Philippines - East ASEAN Growth Area (BIMP-EAGA), have concluded a productive meeting today, which primarily focused on addressing and building upon the achievements since the 1st BIMP-EAGA Summit in Bali, October 2003, as well as determining the future development direction of the sub-region. 2. We reaffirm the importance of BIMP-EAGA as a sub-regional growth area within the overall context of narrowing development gaps in ASEAN and note the need to accelerate its economic development. In view of this, we agree to adopt the BIMP-EAGA Roadmap to Development, which will guide the stakeholders in the implementation of doable, practical and sustainable strategies, programs and projects that will benefit the communities of the member-countries. 3. The BIMP-EAGA Roadmap to Development will be implemented for a period of five (5) years beginning 2006. The BIMP-EAGA Ministers and Senior Officials are directed to pursue, monitor and review the implementation of all programs and projects in order to ensure attainment of development goals and targets set forth in the Roadmap. 4. To better respond to the needs of the private sector, we task our respective BIMP-EAGA Ministers and other relevant ministers pertaining to transport, tourism, agriculture and agro-based industries as well as Small and Medium Enterprises (SMEs) to coordinate the provision of necessary support mechanisms to facilitate and to ensure a conducive business environment in the sub-region. 5. We direct our Transport Ministers, coordinated by Brunei Darussalam; Tourism Ministers, coordinated by Malaysia; Agriculture and Agro-based Industries Ministers, coordinated by Indonesia; SMEs Ministers, coordinated by the Philippines, to work closely in addressing their respective issues and concerns, and if necessary, undertaking policy improvements on trade facilitation, particularly through the strengthening of BIMP-EAGA Custom, Immigration, Quarantine and Security (CIQS) mechanisms, investment generation, improvement of transport linkages and infrastructure, and extensive tourism marketing and promotions and especially enhancing security in the sub region, specifically undertaking joint security patrols to address transnational crimes and terrorism. 6. Recognizing the role of the provincial/state governments in sustaining BIMP-EAGA initiatives, we encourage the Governors, Chief Ministers, Heads of Local Government to hold meetings among themselves and the private sector prior to the BIMP-EAGA Ministerial Meetings to address issues of common concern with their respective stakeholders. 7. In light of the critical role of the private sector as the engine of growth, it is imperative for the private sector, particularly the BIMP-EAGA Business Council (BEBC), to undertake proactive measures in realizing the programs and projects identified in the Roadmap, and to ensure cohesive and dynamic private sector participation. In order to strengthen this effort, we likewise encourage BEBC to initiate linkages and explore possible assistance and support from the ASEAN Business Advisory Council (ABAC) and other related international business organizations. 8. We reaffirm the importance of the initiatives and commitment to strengthen the coordinating mechanism of the BIMP-EAGA cooperation with the establishment of a BIMP-EAGA Facilitation Centre in Kota Kinabalu, Sabah. We acknowledge the major role it plays in facilitating and coordinating the mplementation of EAGA-wide programs, projects and activities. We commit to provide financial support for the continued operations and strengthening of the BIMP-FC. 9. We note the encouraging progress achieved so far in strengthening partnerships to promote trade, investment and tourism. We acknowledge and welcome the participation of the Northern Territory of Australia and the Peoples Republic of China as Development Partners in the BIMP-EAGA. We are encouraged to note Japans support and involvement in the sub region. We note with appreciation the continued assistance extended to BIMP-EAGA initiatives by the Asian Development Bank (ADB), the ASEAN Secretariat and the German Technical Cooperation Agency (GTZ). We encourage the articipation of other ASEAN Dialogue Partners and other international bodies in BIMP-EAGA.

10. We recognize the importance of establishing a database on trade, investment and tourism in the subregion. We urge the ADB to expedite the completion of the BIMP-EAGA Database on Trade, Investment and Tourism. This will allow BIMP-EAGA to quantify its achievements. 11. We recognize the need to enhance energy cooperation among BIMP-EAGA member countries. In relation to this, a study will be undertaken to explore possible areas of cooperation. 12. We acknowledge the growing interactions among the people and communities in the sub region since the establishment of BIMPEAGA. We encourage further intensification of people-to-people activities such as BIMP-EAGA Friendship Games, cultural and youth exchanges and interactions among academia. 13. We agree to convene the BIMP-EAGA Summit annually in conjunction with the ASEAN Summit.