The National Chamber of Commerce and Industry of Brunei Darussalam, the Indonesian Chamber of Commerce and Industry (KADIN), BIMP-EAGA Sarawak Association, the Malaysian International Chamber of Commerce and Industry - Sabah Branch, and the Philippine Chamber of Commerce and Industry (PCCI) signed a memorandum of cooperation this week to enhance trade and investments in the BIMP-EAGA subregion.
The agreement was formalized during the 1st PCCI BIMP-EAGA Trade, Investment, and Halal Industry Conference in Manila on 20 August.
The conference was organized by PCCI and the Mindanao Development Authority (MinDA), in partnership with the Department of Trade and Industry (DTI) and supported by the Philippine Exporters Confederation (PHILEXPORT), the United States Agency for International Development (USAID), the USAID Regulatory Reform Support Program for National Development (USAID RESPOND), and the University of the Philippines Public Administration Research and Extension Services Foundation (UPPAF).
Engine of growth
The theme of the conference was “The Vital Role of Chambers of Commerce as Drivers of Growth in BIMP-EAGA.”
In his keynote speech, MinDA Secretary Leo Tereso Magno, who is the Philippines’ Signing Minister for BIMP-EAGA, said “BIMP-EAGA’s success hinges on the cooperation, inspiration, and support of the private sector. We extend our gratitude to private sector groups for initiating conferences like this, which remind us that we are indeed partners in growth.”
BIMP-EAGA is an intergovernmental economic cooperation program with the private sector serving as the engine of growth. The private sector is crucial in mobilizing trade and investments to support sustainable and inclusive development in the subregion.
A report from the Philippine News Agency said the chambers of commerce agreed to support in particular the development of the halal industry in the subregion.
PCCI President Consul Enunina Mangio said the halal industry offers a unique opportunity for increased collaboration because of cultural and economic ties in the subregion.
The rise of halal hubs
BIMP-EAGA’s large Muslim population makes it a key halal market as well as a major producer and supplier of halal products and services in Southeast Asia.
Brunei Darussalam has a strong halal ecosystem with certification standards considered to be among the best in the world. Brunei International Airport has received certification as a halal-compliant terminal with halal auditors who ensure that halal cargo is processed and managed throughout the supply chain in full compliance with the general principles of Shari'ah.
Indonesia, which has the second-largest Muslim population in the world, is vying to become a major player in the global halal value chain. RPJMN 2019–2024, the national medium-term development plan, targets the development of three halal hubs by 2024.
Malaysia considers the halal industry as a key component of its economy and a strong promoter of socioeconomic growth. It has created a master plan that will grow the industry to $113.2 billion by 2030.
The Philippines launched its “Halal-Friendly Philippines” campaign this year, and it plans to develop a halal value chain and expand halal certification.
Secretary Magno said President Marcos “specifically identified BIMP-EAGA as a vital mechanism to enhance the integration of our halal supply chains” during his state visit to Brunei Darussalam in May. He added that Mindanao, which is part of the subregion, is being positioned as the country’s hub for halal production.
The State of the Islamic Global Economy 2023/224 Report estimates the global Islamic economy at $ 2.3 trillion in 2022.