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Ministers Laud BIMP-EAGA’s Steady Growth as Subregion Marks 30th Anniversary

Date Published
October 22, 2024

From left: The Philippines Department of Trade and Industry Regional Director Romeo Castañaga, Malaysia Minister of Economy Rafizi Ramli, Indonesia Senior Advisor to the Minister for Digital Transformation, Creativity, and Human Resources at the Coordinating Ministry for Economic Affairs Rizal Edwin, and Brunei Darussalam Ministry of Finance and Economy's Department of Economic Planning and Statistics Acting Director General Hairol Hamid.

After 30 years of cooperation, BIMP-EAGA is making good progress and accelerating the growth of trade, investment, and tourism in the subregion.

At the 27th Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA) Ministerial Meeting in Kota Kinabalu in Malaysia on 16 October, ministers said the BIMP-EAGA economy (combined gross domestic product at current prices) stood at $401.6 billion in 2023, accounting for 18.2% of the four member countries’ GDP.

Tourism continues to improve with arrivals increasing to 126.4 million in 2023 from 114.8 million in 2022. Domestic investments grew to $12.4 billion in 2023 from $9.5 billion in 2022, while foreign direct investments amounted to $19.5 billion in 2023. BIMP-EAGA’s trade balance was recorded at $60.2 billion in 2023.

“We are encouraged by BIMP-EAGA’s steadfast economic growth amid challenging global conditions,” said the ministers in a joint statement.

The meeting was chaired by Rafizi Ramli, Minister of Economy, Malaysia and attended by Hairol Hamid, Acting Director General, Department of Economic Planning and Statistics, Ministry of Finance and Economy, Brunei Darussalam; Rizal Edwin, Senior Advisor to the Minister for Digital Transformation, Creativity, and Human Resources, Coordinating Ministry for Economic Affairs, Indonesia; and Romeo Castañaga, Regional Director, Department of Trade and Industry, the Philippines.

The ministers acknowledged the initiatives and efforts of BIMP-EAGA states, provinces and local governments as well as the BIMP-EAGA Business Council, which represents the private sector, in promoting trade, investment, tourism, and other cross-border activities in the subregion. 


Catalyst for growth

BIMP-EAGA is a cooperation initiative established in 1994 to spur development in remote and less developed areas.

The ministers emphasized the vital role of regional connectivity as a catalyst for economic growth and social inclusion in the subregion. In the last 8 years, BIMP-EAGA’s rolling pipeline of priority infrastructure projects (PIPs) has increased to 210, with 52 successfully completed and an additional 158 in various stages of implementation. These projects include roads, railways and bridges, inland transport services, airports, seaports, power and energy infrastructure, information and communication technology (ICT), trade facilitation (including customs, immigration, quarantine, and security systems; economic zones; and industrial parks), and urban and border town development.

The ministers tasked senior officials, as well as clusters and working groups, to expedite the work on the remaining PIPs under the BIMP-EAGA Vision 2025 (BEV2025). They also urged senior officials to fast-track the preparatory work for BIMP-EAGA’s post BEV2025 strategy and support the newly reconfigured economic corridors in the subregion.

A study led by the Asian Development Bank (ADB) is proposing the reconfiguration and expansion of BIMP-EAGA’s three existing economic corridors and a new fourth economic corridor, and investment projects to support their development. 


Enhancing connectivity

The ministers lauded recent accomplishments to enhance connectivity to make it easier and faster to travel within and outside BIMP-EAGA, improve the flow of goods and services, create a conducive business climate, and raise the quality of life of local communities.

They  welcomed new transport links, including the Kota Kinabalu–Manado and Kuching–Jakarta air routes. “We look forward to the upcoming Kuching–Balikpapan and Kota Kinabalu–Bandar Seri Begawan routes by AirAsia and support the revival of the Davao–Manado air route as well as Kuching–Singkawang and Kuching/Lubok Antu–Putussibau bus routes,” they added. They urged key stakeholders to collaborate with the private sector to ensure the sustainability of critical air, land, and sea routes.

The ministers also took note of progress in facilitating the cross-border movement of goods and people. They recognized the Philippines’ effort to improve the interviewing skills of immigration officials and hoped this will be replicated in other member countries. They also acknowledged progress in the operational readiness of the Ba’Kelalan Immigration Border Post in Malaysia as well as the implementation of the One Borneo Quarantine Initiative. 


They took note of the draft terms of reference for the Brunei Darussalam–Indonesia–Malaysia–Philippines Power Integration Project Task Force as a first step to assess and evaluate cross-border electricity trading by 2025. They also acknowledged the progress being made in setting up a renewable energy certificate market in BIMP-EAGA countries. The study, which is supported by a grant from the BIMP-EAGA–Republic of Korea Cooperation Fund (BKCF), is expected to be completed in December 2024.

The ministers urged action to address digital disparities and expand the subregion’s digital infrastructure. They called on relevant ministries and BIMP-EAGA’s development partners for further support and assistance in growing and nurturing a BIMP-EAGA innovation and startup ecosystem. “We need to build capacities and improve our digital skills in artificial intelligence, internet of things, robotics, data analytics, electronics, cybersecurity, virtual and augmented realities technology, Web3.0 and other technologies,” they said.

Addressing shared challenges

The ministers also recognized accomplishments amid shared challenges in enhancing tourism, agriculture, the environment, and human resources development.

Noting the increase in direct flights and new air routes that have led to significant growth in tourist arrivals, the ministers touted the successful implementation of workshops and training programs that have enhanced the skills of tourism service providers, especially in rural areas. They also welcomed the potential expansion of the Sister Tourism Village program into the Tourism Villages Network, and the establishment of the Experience BIMP-EAGA Tourism Website.

Ensuring food security is among BIMP-EAGA’s developments. The ministers expressed support for initiatives boosting BIMP-EAGA’s priority commodities. They commended a project helping coconut farmers and hoped for similar progress in other commodities. They also welcomed an initiative to support the salt industry.

Environment sustainability remains a priority for the subregion. The ministers expressed support in ensuring all BIMP-EAGA meetings are green. They also welcomed initiatives to advance climate action in Kota Kinabalu and Indonesia, the implementation of a waste management program in Malaysia, and the compilation of green and environmentally friendly practices among small and medium-sized enterprises in BIMP-EAGA.

With human resources development one of BIMP-EAGA’s development pillars, the ministers lauded a planned cooperation between Konsortium Universiti Universitas Borneo and the Philippines EAGA Higher Education Institutions Consortium. “It is an important milestone for the collaboration and cooperation among universities in BIMP-EAGA. We look forward to expanding the collaboration with Brunei Darussalam and Indonesia universities,” they said.

Recognizing the role of micro, small, and medium enterprises (MSMEs) in driving economic growth, trade, investment, export growth, and job creation, the ministers stressed the importance of developing growth pathways to enhance MSME competitiveness, specialization, and innovation through capacity building, market access, and digital tools.