Mindanao economy seen to expand 9%

MANILA, Philippines - The Philippine Chamber of Commerce and Industry (PCCI) expects Mindanao’s economy to grow by close to nine percent in 2016 from 6.8 percent last year as the region is being promoted as a destination for investments and a gateway to Southeast Asia. 

In a press conference held yesterday for the upcoming 23rd Mindanao Business Conference, PCCI regional governor in SouthWestern Mindanao and conference director Rey Billena said the group expects the region’s economic growth to exceed the 7.2 percent target for 2016 and expand by close to nine percent.

“We think the target is conservative with the development ongoing and priming of Mindanao as growth area for the Philippines,” he said. 

For this year, the region is expected to grow by around seven percent. 

With the upcoming Association of Southeast Asian Nations (ASEAN) economic integration, Billena said Mindanao is being positioned as a gateway to the region and growth area for the country. 

“In anticipation of this development, we look to Mindanao, not just as a gateway but as a valuable key to bolstering our country’s economic framework in relation to the ASEAN member states,” he said. 

As the region is being promoted as a gateway to the region and a place for business, he said more investments would be needed in the energy sector.

He said that a total of 3,000 megawatt capacity would be installed in the region towards 2030. 

As Mindanao is being promoted to investors, he said, a sea route would also be made available from the ports of General Santos City and Davao City to transport goods to Tahuna and Bitung in Indonesia. 

The maiden voyage of Indonesia’s shipping line PT Kanaka for the new route would be on Aug. 30. 

“Upon putting up shipping facility, next is air service between General Santos or Davao and Manado Airport (in Indonesia),” Billena said. 

The PCCI is hopeful the air service from General Santos or Davao to Manado would be operational by the first quarter or second quarter of next year with flag carrier Philippine Airlines, Inc. and an Indonesian carrier being tapped to provide the service. 

Billena said air services from Mindanao to Manado were available before but the operations were discontinued in 2007 amid weak demand. 

In line with of drumming up investor interest in Mindanao, the Mindanao Business Conference, to be held on September 1 to 3 in General Santos City is being organized by the group to promote the area and look into its role in the ASEAN economic integration.

The ASEAN economic integration which would become a reality by the end of next year, aims to create a single market and production base for member states to promote free movement of goods, services, investment and skilled labor across the region.