Paradigm shift deemed key to lure investors to Mindanao

CEBU, Philippines - Although Mindanao has been touted as an area with issues on peace and order, an official remains bullish that a paradigm shift could bring about change, attracting more investors and improving the region’s business climate and economic growth.

Butuan City Vice Mayor Lemuel Lawrence Fortun said in a press conference that it has been a challenge for the government to improve the image of the region taking into account the sensationalism from the public.

“We have to bring them there. Our local government units assure the protection of our investors. There are isolated cases but it is not alarming. That’s really not the case yet all other cities are affected,” he said.

He added that they have been aggressive in promoting the investment potentials of Mindanao and impress prospective investors that there are no peace issues at all.

He cited that the major areas of potential investments include oil palm, rubber, banana, wood, arts and crafts, mining, eco-tourism.

He further noted that Butuan City is the first city in the country to ever pass the Public-Private Partnership (PPP) code which is comprehensive ordinance covering 14 – 16 modalities including joint venture, bill transfer and public asset management designed to promote eco-tourism and enhance the business climate.

He further said that the PPP introduced Butuan to a lot of investors, resulting to 27 proposed foreign investments for the city reported this year alone.

Such investments, Fortun added, include hydropower plants and biomass generation.

Aside from the employment generation and additional income revenues, he said that the overall impact of the PPP creates a domino effect in the city wherein other small businesses started to operate.

Considering the longevity of business permit applications as one of the major concerns in the business environment, he added that the centralized and computerized Business Permits and Licensing Systems which facilitates process of business permits in less than 30 minutes contributes to the promotion of the city as a viable investment area.

He noted that there is actually an influx of new investments, citing that there are over 600 new businesses registered in the region last year.

Another reform in Butuan City is the rationalization of the provisions on the tax incentive ordinance, he continued.

Hosting the 21st Mindanao Business Conference, he then described the event as an avenue where opportunities are available for government and business leaders to build network and discover possibilities of cooperation.

Fortun added that participants could also exchange ideas and learn best practices from different regions on how to improve the business climate and competitiveness.

Since Cebu City is named as the furniture capital of the Philippines while Butuan is dubbed as the timber city of the south, he further encouraged Cebu businessmen to join the conference wherein they could discover potential sources of raw materials in Mindanao that could be utilized for the furniture production in Cebu.

Expected to draw 500 - 1000 attendees, he also noted that MBC 2012 is anticipated as a larger gathering than the conferences held in previous years.

Aside from its effect on the tourism and trade of the region, he said that MBC will significantly help the local industries to acquire more markets from both within and outside of the country.

Mainly focusing on wood industry, mining and eco-tourism, the MBC 2012 will be held on August 2 to 4 at the Almont Hotel Inland Resort, J.C. Aquino Avenue, Butuan City.

This year’s conference also concentrates on the formal presentation of the Mindanao Business Policy Agenda to the Office of the President which is a unifying stand of various stakeholders on the region’s most pressing economic policy concerns.

Started in 1991, the annual MBC serves as the official business conference of the Philippine Chamber of Commerce and Industry for the Mindanao area which aims to foster competitiveness and accelerate growth in the region by showcasing its trade and investment opportunities.  (FREEMAN)