Clockwise from top left: Trade and Industry Undersecretary Abdulgani Macatoman of the Philippines, Deputy Minister of Finance and Economy (Economy) Abdul Manaf Metussin of Brunei Darussalam, Acting Deputy Minister for International Economic Cooperation Edi Prio Pambudi of Indonesia, Asian Development Bank Director General Ramesh Subramaniam, ASEAN Secretary General Lim Jock Hoi, and Minister Sri Mustapa Bin Mohamed in the Prime Minister's Department (Economy) of Malaysia.
The coronavirus disease (COVID-19) pandemic affected the economies of the BIMP-EAGA, reducing trade and production last year. Yet, investments still increased by more than 30% and several targets were met despite the crisis.
“We are deeply concerned with the protracted impact brought about by the COVID-19 pandemic as it continues to affect lives and livelihoods in the subregion,” said the Ministers of Brunei Darussalam, Indonesia, Malaysia, and the Philippines in a statement after meeting virtually via Zoom on 11 October. “We meet in extraordinary times calling for robust cooperation in bouncing back stronger together.”
The 24th Ministerial Meeting was held to assess the status of projects and initiatives to spur development in remote and less developed areas of the subregion and to provide strategic policy directions.
This year’s meeting was chaired by Abdulgani Macatoman, Undersecretary for Special Concerns and Trade Promotions, Department of Trade and Industry, Philippines. The other ministers in the meeting were Dato Seri Paduka Dr. Awang Haji Abdul Manaf bin Haji Metussin, Deputy Minister of Finance and Economy (Economy), Brunei Darussalam; Dr. Edi Prio Pambudi, Acting Deputy Minister for International Economic Cooperation, Coordinating Ministry of Economic Affairs, Indonesia; and Dato' Sri Mustapa Bin Mohamed, Minister in the Prime Minister's Department (Economy), Malaysia.
Poised for a robust rebound
“We are encouraged that despite the COVID-19 crisis, our macroeconomic fundamentals remain robust,” the ministers said.
The BIMP-EAGA economy contracted by 3.5% in 2020 with the subregion’s combined gross domestic product (GDP) at $322.8 billion. Before the pandemic, the subregion posted a 6.9% growth in GDP. Total trade in goods fell by 11.4% to $95.3 billion last year from $107.6 billion because of weaker demand.
Foreign direct investments however rose by nearly 32.0% to $12.8 billion in 2020 from $9.7 billion in 2019. Domestic investments also increased to $9.2 billion last year, up 33.3% from $6.9 billion in 2019.
The ministers expect the increase in investments to boost BIMP-EAGA economies toward recovery from the pandemic as the subregion builds on its achievements in improving connectivity, strengthening trade and supply chains, and promoting inclusive growth.
Priority infrastructure projects
The ministers noted that BIMP-EAGA remains on track in achieving its Vision 2025 goals based on preliminary findings of the mid-term review being conducted with the assistance of the Asian Development Bank (ADB), its regional advisor.
Of the 88 Priority Infrastructure Projects (PIPs), 27 or 31% have been completed to date, 8 have been completed in phases, 10 are nearing completion, and 43 are in various stages of implementation. These include 16 connectivity infrastructure projects completed in economic corridors, which are crucial to pandemic recovery and which will facilitate the seamless movement of goods and people. They cited the Temburong Bridge (Sultan Haji Omar Ali Saifuddien Bridge) in Brunei, the Manado–Bitung Link (Toll Road) in Indonesia, the LNG ISO Tank Export Facilities in Bintulu Port in Malaysia, and the General Santos Astropolis Airport in the Philippines.
In the energy sector, the ministers welcomed the completion of the enclave interconnections in North Kalimantan in Indonesia for the Tidang Pale-Malinau Segment of the Tanjung Redep–Malinau Transmission and the Mindanao Transmission Backbone Upgrading in the Philippines. They also cited the signing of the Sabah–Sarawak Power Interconnection Power Exchange Agreement between SESCO, a subsidiary of Sarawak Energy Bhd, and Sabah Electricity Sdn Bhd. They said this paves the way for establishing the Borneo Grid and the ASEAN Power Grid.
Recovery and resilience measures
The ministers said it is important for BIMP-EAGA to align its measures with the ASEAN Comprehensive Recovery Framework’s broad strategies, given the subregion’s role as a building block of ASEAN integration. This includes aligning the BIMP-EAGA Tourism Recovery Framework with the ASEAN Post Pandemic Recovery Plan.
Tourism is the hardest-hit sector in the subregion. Visitor tourist arrivals dropped by 76.0% while tourism receipts fell by 79.1% to $6.2 billion in 2020 from $29.7 billion in 2019.
“We commit to work toward tourism revival and support the essential steps to establish travel bubbles in the subregion,” the ministers said. They asked the public and private sectors to work together toward reviving travel and tourism and ensuring the safety of travelers and regaining their confidence.
The ministers also called for the adoption of the Bandar Seri Begawan Roadmap: An ASEAN Digital Transformation Agenda to Accelerate ASEAN’s Economic Recovery and Digital Economy Integration. They said BIMP-EAGA startups will be joining the virtual ASEAN Startup Festival on 8 December 2021.
They said they expect the signing of the Letter of Intent for the One Borneo Quarantine Initiative in 2022 will help ensure the safe opening of borders to trade and enhance protection from pests and diseases.
The ministers also acknowledged the work of stakeholders and partners in sustaining BIMP-EAGA cooperation during the crisis. “We extend our sincere gratitude to the Senior Officials, BIMP-Facilitation Centre, National Secretariats, Clusters and Working Groups, BIMP-EAGA Business Council (BEBC), Asian Development Bank (ADB), local governments, ICT CEO Forum, private sectors, and development partners for working tirelessly to deliver priority programs and projects.”
The ministerial meeting was also attended by Secretary General Dato Lim Jock Hoi of ASEAN, Director General Ramesh Subramaniam of ADB’s Southeast Asia Department, senior officials, and state/provincial ministers.