ZAMBOANGA CITY – More investments are expected to pour into the autonomous Muslim region in Mindanao as the southern peace talks between the government and the largest Moro rebel groups are nearing completion with the signing of the comprehensive peace deal projected within the first quarter.
“There seems to be a trend for enterprises in the region to register with the Regional Board of Investments (RBOI) now that the region is set on a trajectory of high growth brought about by the stability engendered by the Mindanao peace process,” Board’s chief Ishak V. Mastura said in a statement.
He said they projected the Muslim region’s investment growth this year will beat 2013’s staggering P1.463 billion worth of fresh capitals, shoring up economic activities in the region.
Mr. Mastura said while four firms registered with the RBOI in 2014, he foresees at least eight, or more firms be registering with RBOI to avail of fiscal and non-fiscal incentives for their investments.
“This year 2014 is set to repeat the achievement of 2013 in bringing more than P1 billion investments to ARMM. Indeed, investment prospects in ARMM are set to take-off in 2014,” he said.
“Although, this rate of registration of firms with RBOI is still very far from what the BOI in Manila experiences in any given year, for ARMM it is already a veritable rush of registration of investments by the firms in the region,” he added.
He said the developments of the ongoing peace negotiations between the government and the Moro Islamic Liberation Front (MILF) helped in bringing back the confidence of investors to bring their businesses in the Muslim region, which is noted to have vast resources.
The Muslim region’s economy has remained dormant despite its rich resources due to instability and security problem with armed groups fighting for a “genuine self-rule” in their ancestral lands. This is the main issue that the ongoing talks are to trying to fix.
Peace negotiators of the government and the MILF have already signed at least three of the four annexes, including wealth and power sharing between the national government and the future Bangsamoro region. The one annex – normalization, and the addendum of Bangsamoro waters are expected to be negotiated within this month to complete the Framework Agreement on the Bangsamoro, which will eventually be the comprehensive peace pact.
“Previously, firms operated in the grey economy or informal sector with minimal transparency but as the peace and order situation in the ARMM (Autonomous Region in Muslim Mindanao) normalizes firms operating in the region are rushing to register with the RBOI their investment projects and their expansion programs,” Mr. Mastura said.
He said the banana export industry has been a mainstay for RBOI in terms of registration of their investments.
“Now, mining firms in the ARMM are beginning to realize the advantages of registering their investments with RBOI,” he added, adding that this has been reflected in the last year’s data, citing that the top investor to register with RBOI with P707 million worth of investments was nickel-mining operator, Al Tawitawi Nickel Corporation.
The firm has been extracting nickel in the southernmost island province of Tawi-Tawi.
This year at least two other nickel-mining firms also operating in Tawi-Tawi are set to register with the RBOI, it said.
Oil palm plantations and infrastructure projects are being eyed by RBOI as sources of more investments for the region in 2014 and beyond. Oil-palm is a leading industry in Malaysia and the Philippine embassy in Kuala Lumpur has been promoting Malaysian investments in oil-palm in the ARMM after the signing of the Malaysian-facilitated peace agreement with the Moro Islamic Liberation Front last year, the Board said.
Infrastructure investments are also set to grow in the region after decades of neglect brought about by instability, which are now on the mend after the peace agreement with the MILF, so the prospects are good for the construction and allied industries in the region, it added. (FPG/PIA9-ZBST/OPAPP)