BIMP-EAGA Investment Opportunities in Corridor Value Chains
This report examines investment opportunities in cross-border value chains in the two economic corridors of BIMP-EAGA. Cross-border value chains offer a means of creating value across neighboring states by separating different stages of production in different locations and adding value to products.
At present, the West Borneo Economic Corridor and the Greater Sulu-Sulawesi Corridor function mainly as transport corridors. Transforming the two corridors into full-fledged economic corridors would require a number of structural and policy improvements, including putting in place more infrastructure to strengthen connectivity and adopting trade and investment facilitation policies.
The report identifies 12 priority industries along the two corridors as having a large potential for success as corridor-wide value chains, specifically from increased competitiveness, complementarities, cost efficiencies, employment generation, and increased access to inputs and markets. These include industries producing physical goods as well as those that provide services: agro-processing; aquaculture and fishery products; palm oil; pharmaceuticals; crude oil and gas extraction and petrochemicals; coal, aluminum and steel; agricultural products; livestock products; timber-based products; tourism; information and communication technology; and education.
Overall, the study finds that opportunities for investment in corridor value chains abound in both BIMP-EAGA corridors. Among the most compelling reasons to invest are potential benefits from knowledge transfers, cost reductions, upstream and downstream linkages, the ability of corridor value chains to attract investment from multinational enterprises, the subregion’s favorable policy and regulatory environment, and the ability of these types of investments to substantially broaden existing markets for goods and services in the subregion.
PART I. BIMP-EAGA Economic Corridors
Introduction to BIMP-EAGA Economic Corridors
Corridor and Local Development Strategies
PART II. Value Chain Opportunities
Finding Value Chain Opportunities
Ranking Industries for Potential Corridor Value Chains
PART III. Three Ways to Identify Opportunities
Value Chains Based on Local and National Priorities
Value Chains Based on Business Perception Surveys
Value Chains Based on Technological Intensity
PART IV. Company Highlights
Showcasing Companies in West Borneo Corridor
Showcasing Companies in Greater Sulu-Sulawesi Corridor 59
PART V. Investment Climate
Investment Incentives, Guarantees, and Priorities
Realizing the Potential of Corridor-Wide Investments