THE GOLDEN PROVINCE OF MINDANAO

Compostela Valley, called Comval is a province located in the Davao Region in Mindanao. This 4th newest province of the Philippines used to be part of Davao del Norte until it was made independent in 1998. It might interest you to know that this province was the location for the movie, I Come with the Rain starring Hollywood star Josh Hartnett

Majority of the inhabitants are migrants from Cebu and other Visayan provinces. The cultural minorities in the province include Mansaka, Mandaya, Dibabawons, Mangguangans and Aeta groups such as the Talaingod, Langilan, and Matigsalug.

Comval occupies a total land area 4,667 square kilometers; 24.7% of the total land area of the Davao Region. The province is rich in agricultural lands planted with coconut, bananas, white potatoes and mineral deposits which is mostly gold.

ComVal province, particularly Monkayo town, is the gold-mining center in the Southern Mindanao Region with its gold rich mining areas in Diwata of Monkayo, Bango of Compostela, Masara of Maco, Inupoan of Nabunturan, and Boringot, Diyat and Kingking of Pantukan.


The Jewelry industry of Comval

From the year 2008 to 2012, Philippine jewelers are eyeing exports of $400 million to the world's markets, according to the Guild of Philippine Jewelers. The World Gold Council (WGC) has cited the Philippines as the third biggest gold producer in Asia, next to Indonesia and Papua New Guinea and the 14th world's highest gold producer.

Some 100,000 workers are employed by the country's jewelry industry with gold and silver sourced locally from various gold mines in Camarines Norte, Davao Province, and Compostela Valley, according to WGC.

Gold and silver coming from various gold mines in Mindanao are expected to help boost the growth of the Philippine jewelry industry.

Because of the abundance of mineral deposits the province of Compostela Valley is now focusing on developing their jewelry industry. The gold and silver that will be used in the production of jewelries will be sourced within the province – from the gold rich area of Diwalwal and Monkayo.

Jewelry Cooperative

The province has also started cashing in on its precious minerals deposits by adding value to raw materials. The artisans of the province, through their cooperative, the Diwalwal Artisan Entrepreneurs Cooperative in the gold rush Diwalwal, Monkayo, have started making their jewelry like rings, pendants, necklaces and other similar items.

The cooperative can produce at least 100 pieces a month by processing raw gold and silver into jewelry pieces which are artistically designed and can compete with those made in Manila or in other countries. These pieces are reasonably priced since the gold and other precious stones used are found in the province

The provincial government is also very supportive of the industry. I learned that Gov. Arthur Uy and Cong. Zamora; both a strong advocate of the jewelry sector have set aside a significant fund to help develop the industry. This will go to the training of the artisans and craftsmen so that they can develop their skills and artistic abilities to manufacture and design beautiful pieces of jewelries that may be exported in the future.

The local business community is bullish in its pursuit to develop Comval as
Mindanao’s jewelry capital inspired by the experience of Meycauyan in Bulacan, an area where there is no gold reserves but has a very strong jewelry making industry.

The Solidarity Ring

The solidarity ring, a symbol of unity and oneness among the people of Comval is found in the capitol lobby. It is 18-karat two-toned ring with an interior diameter of 5 inches and exterior diameter of 6 inches, made up of 1.18 kilograms of gold of shining finish and 308 grams of 99.9 percent pure silver of diamond finish and weighing 1.488 kilograms,
The solidarity ring also is the best centerpiece of the province biggest jewel and assets – the gold deposits that changed many of their lives since the precious metal was found in their province in the 1980’s.

There are now many initiatives to harness the strength of ComVal in jewelry-making and among them is the P3.5- million jewelry-making skills training center that will soon rise in gold-mining town of Monkayo, Compostela .

Developments such as these should be given more focus by both the national and local government since these will result to more jobs and investments in the country side. When our people are gainfully employed and are able to provide for food and education to their family; then peace will truly be in our midst.


(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

MINDANAO CLOSE TO THE HEARTS OF MIDDLE EAST

The Mindanao Chambers of Commerce sent a full delegation of businessmen representing all the major cities and provinces of the island to the recently concluded 34th Philippine Business Conference held in Manila Hotel. Perhaps, because of our distance from Manila; it is always with great anticipation that we look forward to hearing Pres. Arroyo’s speech during the closing ceremonies. And we would listen intently whether the President would drop a word or two about Mindanao. And for the past many years ; she never fails to do so.

Shock Absorbers of the Economy

This year her speech focused on the measures being undertaken by the country to cushion the impact of the recession in the United States. She elaborated that the Philippines has a number of shock absorbers. Among them are our solid banking system ; our projected expatriate inflows was 10% growth; but actual growth so far is 18%. Even if the American economy would sink, the expatriates in that part of the world are in sectors that are less sensitive to recession . These are the teachers, nurses, information technology related workers and caregivers.
The Business Process Outsourcing (BPO) sector will balance off the slow growth in merchandise exports. In addition, pump priming will happen in many sectors and industry ; more so in agriculture, housing, infrastructure, lending support to small and medium sized businesses.

Middle East Relationship to Mindanao

Pres. Arroyo said that the “ Arab engine is up due to the past five years of costly oil. This is has led to the construction boom in the Middle East and a surge of remittances.
What really caught our attention was when she said “, In addition, the fact that the Philippines has a Mindanao close to the hearts of the Middle East, opens up opportunities not only for Mindanao but for the entire country.”

One of the markets that Mindanao has not fully developed is the Middle East, with its countries known not only for their “black gold” but also for their modern infrastructure facilities.

Opportunities for Mindanao

In recent years, the Middle East, most notably the Kingdom of Saudi Arabia and Dubai, has risen to greater heights in terms of investments. However, it was only recently though that Mindanao has slowly gained access to the Middle East markets.
Based on the report of the Bureau of Customs in Davao, the Middle East, in September, collectively brought about $5.763 million in goods from the region, the third among the top 10 countries that were destinations of exports from the region, next only to Japan and Malaysia.

For the Middle East, the bulk of its imports from the Davao Region during the period was fresh bananas with a value of $4.893 million with a volume of 17.758 million metric tons. The figure even excluded the banana imported by the United Arab Emirates which had a value of $447,521.

Even the controversial Iran rose to the fifth position with a value of $4.975 million, or 28.625 million metric tons of goods from the Davao Region, particularly fresh fruits like papaya and pineapple.

The figures would have been bigger had the figures from other regions were available. Nevertheless, the figures were already indicative that the Middle East markets have started taking notice of Mindanao as a big producer of products that its people need particularly as a supplier of food and fruits.

POSSIBLE INVESTMENTS FOR PEACE

Another notable development was the visit of a technical team from the Kingdom of Saudi Arabia whose task was to find areas where they can invest. The seven member team, headed by Ahmed M. AlSadhan of the kingdom’s Ministry of Commerce and Industry, arrived in Davao City late last month. They proceeded to Mati City, the capital of Davao Oriental, to discuss with Gov. Corazon N. Malanyaon the possibility of investing in rice and corn production. Gov. Malanyaon and Mati City Mayor Marie Michelle Denise Rabat gladly briefed the visitors about the province.

The development is one good start for people of Mindanao, particularly its leaders, to consider looking into intensifying trade between the island and the Middle East. People in Mindanao, particularly its local government and business leaders, should start discussing with leaders of the countries within the Middle East region on where they can invest to help the island fully develop its potentials..

Known for their help in achieving peace in Mindanao as most of these countries are members of the Organization of Islamic Conference(OIC) . This is the body that has facilitated peace talks between the Moro rebel groups and the government. I believe they are also interested in helping Mindanao develop into one big producer of the products that they will need – from food, hand made toys, gifts and house wares, furniture’s and furnishings and even in the area of medical , cultural adventure and eco-tourism.

Middle East would be one of the best trading partners of Mindanao not only in business but more importantly in peace and development.

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

AUSTRALIA’S RENEWED FOCUS IN MINDANAO

The Australian government is one of Mindanao’s active partner through their various aid programs in education, manpower and skills , gender equity and micro-enterprise support. Today, I am personally involved in Aus-Aid’s human resource development program called Phil-Australia Human Resource Development Facility(PAHRDF), in my capacity as Chairperson of Mindanao Technical Vocational Education Federation (MinTVET). PAHRDF is continuously supporting MinTVET in the training of teachers of technical vocational schools through a scholarship grant in Australia in various fields.

So, it was without hesitation that I immediately accepted the invitation of Mr. Albert Garcia, President of the Philippine Australia Business Council (PABC) when he invited me to attend the business session and luncheon with their counterpart, the Australia Philippine Business Council (APBC) to represent Mindanao. This was during the 2^nd Philippine-Australia Ministerial meeting held in Manila last Oct. 9, 2008.

PABC is one of Mindanao’s strongest partner, despite the fact that all, if not most of their members are Manila based businessmen. Since 1975, PABC and the APBC had implemented trade initiatives to enhance the bilateral partnership and much has also been achieved for the past 38 years of cooperation.

Renewed Partnership in Mindanao

The total foreign trade in Mindanao increased by 24% in 2007 which was valued at US$3.745 billion from US$3.0 billion in 2006. Export earnings grew by 23% valued at US$2.593 billion. Our total imports increased by 27% from US$901.54 million in 2006 and US$1.153 billion in 2007. Unfortunately. Australia is not one of our top ten export partners .

To quote PABC Pres. Garcia, “Unfortunately from a trade perspective there is still much work to be done by the Philippine side to reduce the trade gap.” The huge difference in trade figures in Australia’s favor strongly suggests the indifference by Phil. Business to seriously consider Australia as a lucrative and profitable export market. “.

The PABC is pushing both the Phil. and Australian government‘s bilateral relationship to focus in Mindanao as its principal beneficiary. It is time that our traders shift their attention from Manila and traditional business partners and look again very closely further south into the BIMP EAGA (Brunei –Indonesia-Malaysia-Phil. East Asean Growth Area) and then beyond to the Northern Territory of Australia.

Mindanao exporters should also look at the Northern Territory as the geographic gateway to Australia using the Darwin –Adelaide railway as linkage to the markets of South and Western Australia. This southern direction also points at export markets of the Pacific island economies which are the non - traditional markets, not only for Mindanao exports, but for the Phil. as well. These are the smaller nations like Papua, New Guinea, Noumea, Tonga, Vanuatu and Nuie.

Specific Sectors: Mining, Cattle Fattening and Ship Building

Mindanao also buys its cattle from Australia and “fattens” them in their farms. As a result, there is value in jointly developing a “halal” food industry.

PABC further advocates for the naval and maritime cooperation for peace and development to put into optimal use two significant Phil and Mindanao resources – our rich mineral and human resource relative to ship building technology, facility management and information and communication technology.

An official from the Board of Investment said that around October of this year, there were two(2) Australian mining companies that had started exploring minerals in Agusan del Sur and Surallah, South Cotabato. There is also the mining partnership between Asiaticus Management Corporation (Amcor) and Australian mining giant BHP Billiton which had a joint venture agreement to explore ore deposits at the Pujada Nickel Project in Davao Oriental. Australian Mining firm, Indophil is at Tampakan, South Cotabato .With ore deposits of over 12.8 million tons of 0.6 per cent copper and 15.2 million ounces of 0.2 grams per ton of gold; the Tampakan Copper and Gold Project is reportedly the biggest of its kind in Asia.

The PABC recommends that the mining firms incorporate a food security program to alleviate poverty as part of their social responsibility in the community where they operate

Tapping Mindanao’s Highly Skilled Human Resource

Australia must also contribute in practical terms to Phil. and Mindanao’s skills development. This country is one of the favorite of Filipinos who wants to work overseas because of its attractive migration incentives. PABC is pushing that Australia also contribute significantly to the technical skills and manpower education. As a result, we are also continuously ensured of a robust pool of manpower despite the toll due to rapid migration for better work in other countries. It is suggested that there must be an equivalency program between Australia education in higher and technical education.

Lifting of Travel Advisories to Mindanao

The Australian government ‘s travel advisory to Mindanao is a big hindrance to the realization of all of these objectives and initiatives. The PABC is asking Australia to clearly make a distinction between generally peaceful investment friendly cities such as Davao and Cagayan de Oro and to lift the negative advisory to these cities for a start. The other Mindanao cities such as Gen. Santos, Zamboanga, Butuan and Surigao, after a sufficient period of observation, can follow. These negative advisories are a great barrier to investments.

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

IMPROVING LOGISTICS FOR MINDANAO’S AGRI BUSINESS (2nd of 2 parts)

The agriculture sector continues to be remarkable in its performance mainly due to the fact that the island is within a typhoon-free zone. Production of crops such as banana and pineapple had substantial growth rates during the year. Staple food such as rice and corn have registered growth rates due to end of the drought induced by the El Nino

phenomenon. Currently, 37% of the total Mindanao output comes from the agriculture sector while 36% is from the services sector. The remaining 27% of the total output is from the industry sector.

Roads are important components to agricultural growth .The major road projects in Mindanao are mainly intended to bring farm produce to the market faster and at least cost and to cut travel time for travelers. These projects, which will be constructed until 2010, are being built for a total cost of P12.868 billion.

The Dinagat Island Road Network in Surigao del Norte involves the improvement and rehabilitation of 15 kilometersof the main road that shall connect the municipalities of Cagdianao and Loreto, Dinagat, San Jose, Basilisa, Libjo, and Tubajon. At a cost of P100 million, the project is divided into nine (9) sections. Construction started in April 2007 and the project shall be completed towards the end of this quarter.

The Surigao-Davao Coastal Road Project involves the rehabilitation and improvement of 448 kilometers of road at a cost of P6 billion. It functions as the main trunkline for the coastal municipalities that leads further to the Pan-Philippine Highway. Currently, the Manay - Mati Section in Davao Oriental is 93% complete, while the rest of the other sections are also undergoing civil works. The project is expected to be completed by May 2010.

The Zamboanga West Coast Road with a total length of 169 Kms. (begins at the boundary of the municipalities of Gutalac and Baliguian and traverses southwest along the western coast of the Zamboanga Peninsula through the Municipalities of Baliguian, Siocon, Sirawai,and Sibuco and ends at the Sibuco, Zamboanga del Norte and Zamboanga City ; has a total project cost of P 3.428 Billion with an overall accomplishment of 7% andwill be completed on December 2009. The P 385.40 Million initially released to the project is composed of ten (10) on-going sections with an accomplishment of 35.85%. However, the implementation of the project was hampered due to bad weather conditions.

Upi-Lebak Road, is an 88km project that traverses the provinces of Maguindanao and Sultan Kudarat. It shall provide access to the centers of agricultural, industrial, fishing, commercial and tourism activities in Mindanao. The whole project will be completed by October 2009.

INCREASING INTER-ISLAND TRADE

Southwestern Mindanao Roll on-Roll off (RORO) connections are Zamboanga City, Zamboanga del Sur Isabela and Lamitan in Basilan, Jolo and Siasi Island in Sulu

Agricultural products like fish products, fruits and vegetables, rubber are shipped to Zamboanga City from Basilan (Isabela). Inbound cargoes to Basilan include rice and palay, flour, bottled cargoes, manufactured goods, food and other consumer products. Volume of cargoes had increased from 19,000MT in 2006 to 27,000MT in 2007. Passenger traffic between Zamboanga and Basilan is also in an uptrend; from 268,000 in 2006 to 298,000 in 2007.

The Ozamis-Mukas RORO route facilitates the travel of students to the universities in Ozamis City. Before the establishment of the route, students used to spend P500/week for lodging. Now, they only spend P160/week on RORO fare.

RORO has reduced transport cost in Mindanao and has resulted to increased mobility of people which resulted to growth in domestic tourism.

With all of these developments in infrastructure, Mindanao will be able to sustain its economic momentum inspite of all of the odds. There may be events that seems to beyond the control of businesspersons like me; but we all continue to have confidence in our region and this can be clearly seen with the many new investments, both big and small in the countryside. In Davao alone, there is the new Robinson’s Cyberpark which will soon be the hub of businesses in ICT (information communication technology) and the Ayala Shopping Mall and ICT Park which is now under construction. For us in business, all is well in Mindanao.

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The Mindanao Chambers of Commerce and Industry headed by VP-Mindanao, Ms. Elene Haw, came in full force to participate in the 34^th Phil. Business Conference of the Phil. Chamber of Commerce and Industry chaired by Ambassador Alfredo Yao, a firm supporter of Mindanao . It is these Chambers all over the island that makes these businesses thrive in their regions; it is them who continuously invests in their areas that results to jobs and better living conditions.

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation (www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

BUSINESS IS STILL ON THE GO IN MINDANAO

We are surrounded with news reports about the current peace situation in some of the areas which are a part of the Autonomous Region of Muslim Mindanao (ARMM). Again, as a Mindanaoan, I refused to say that the entire Mindanao is in trouble. However, we cannot discount the fact that whenever ARMM is wounded, the entire Mindanao bleeds. We are angered and at the same time very, very disappointed at the way the peace issues and concerns are being handled. There are just too many players from government, military, politicians with varied interests who are all dipping their hands into the problems. And the irony is that, most of them are not from Mindanao or have never even been to any of the ARMM areas.

I am very passionate about being from Mindanao; wherever I go, whether here or out of the country, I always tell business people I meet how beautiful and how comfortable life is in Mindanao. That Davao City is a perfect blend between urban and country life.

Yesterday, I was interviewed for a magazine that will be published by Go Negosyo where forty (40) businesswomen will be featured. I was asked by the writer whether I am planning to expand my school businesses in Manila and without batting an eyelash, I said that my pre-school, Tumble Tots and JiB eAcademy will be my only schools in Manila; my plans for expansion will be in Mindanao because I believe in the potentials of the island and besides I am a Mindanaoan.

Mindanao Today

Despite the bad publicity that it is getting due to the aborted signing of the controversial memorandum of agreement on the ancestral domain between the government and the Moro Islamic Liberation Front, Mindanao ‘s business and agriculture sector is upbeat.

In 2007, Mindanao has a population of approximately 18 million ; and an inflation rate of 3%; much lower than the national inflation rate which is around 5%-6%. Our balance of trade is USD 1.5 million; exports at USD 2.4 million and imports at USD 1.2 million.

Topping our agricultural exports are bananas at USD 401million; coconut oil or copra , USD 366M; pineapples, fresh and preserved, USD160M; dessicated coconut, USD 46M and of course tuna at USD54.55M. The top ten export destinations are Japan because of our bananas and tuna; USA, Netherlands, Korea, Taiwan, China, Malaysia. Singapore, United Arab Emirates and Iran

FEEDING MINDANAO (RICE AND CORN)

The data from the Bureau of Agricultural Statistics showed that Mindanao posted increases in corn and rice production with corn harvest registering about one-fourth higher than the volume during the same period last year. A notable improvement, indeed.

The data showed that rice production during the period increased about 4.78 percent to 999, 212 metric tons during the period from 953,metric 623 tons during the same period last year.

The highest growth in rice production was registered in the Caraga Region with 12.85 percent, although Central Mindanao was still the biggest producer during the period with 38 percent of the total production.

Corn production, on the other hand, was at a high of 883,409 metric tons during the period, way above the 722,269 metric tons produced during the first quarter last year. Again, Caraga registered the highest growth at 56.55 percent, but Northern Mindanao produced 36 percent of the total production, followed by Central Mindanao with 32 percent.

Production of rice and corn is expected to be sustained as the national government is rehabilitating irrigation systems in the island that will cover 2,000 hectares of rice fields.

The data also revealed that fisheries production for Mindanao was at a high of P18.83 billion with about 618,976.03 metric tons. Highest contributor to the production during the period was aquaculture at 342,356.41 metric tons. In value, fish production during the quarter hit P18.63 billion, although the biggest producers were the commercial fishing companies.

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

CALL CENTER FOR MUSLIMS

It’s the call center era nowadays. We see call centers sprout like mushrooms in our country, and more Filipinos are getting trained or employed as call center agents.

At a time when U.S. companies are increasingly going abroad to source "sophisticated, mission-critical functions" because of a shortage of highly educated professionals in developed countries, the Philippines has become one of the preferred destination for these American companies, according to a study by Duke University, in North Carolina, and the consulting firm Booz Allen Hamilton.

And for good reasons because the Philippines has one of the highest literacy rates in the East Asian and Pacific area, with 92% of the population 10 years of age and older are literate. For these companies seeking to outsource, lower costs, high literacy rate, culture, and employee loyalty are the country's appealing factors.

Filipinos are more attuned to Western culture than most Asians; majority of the population can understand and speak English, thanks to a long history of contact with the United States, including several decades of American colonial rule. Call center employees find it easy to relate to Westerners and adapt to a variety of accents. Most call center employees receive intensive training to acquire the accent of the country that they will be calling.

In Mindanao, the call center industry has only just begun. Cagayan de Oro has three of the 10 call centers in Mindanao with over 800 call center representatives, while Davao has over 700 employees from three call centers. This growth is expected to double by next year.

The Autonomous Region in Muslim Mindanao (ARMM) is also catching up in the call center boon. There’s a huge labor potential in the ARMM for call center and business outsourcing. This labor force could cater to the Middle East companies.

In response to this untapped potential of the Muslims to work as call center agents, a Davao-base Call Center and Language School , trained native Muslims in Barangay Waan, Cabantian, Davao City in partnership with the Technical Education and Skills Development Authority (TESDA) and the Barangay officials. Waan is predominantly populated by Muslims and is an hour drive from the city proper. The free training aimed to create awareness and expose our fellow Muslim brothers and sisters to the best-in-class call center management technology that leads to better coaching and performance.

It started last November 6, 2006 with four (4) weeks focusing on English Language Proficiency lessons and an additional month long training in call center operations where they had hands-on-experience in making and answering calls.

All 51 participants are college graduates; some have a career in teaching and banking already, while others are unemployed. Now that they finished their basic call center training, a new door has opened for them.

The Muslim graduates are now very happy with their achievements ; they will have more access to job opportunities in the business process outsource sector with their newly found skills- English grammar, pronunciation, articulation and diction.

One student expressed that she can now use her speaking skills in dealing with their foreign customers at the bank, although she is open to a career in the call center industry. Another student, currently teaching Arabic studies in Waan, is excited to apply his learnings to his current profession.

Among the major challenges they encountered when the program was just starting was speaking with a neutral accent. They now boast of an improved accent, and higher self confidence in public speaking than when they first started.

This recently concluded training has now disproved the prevailing notion that ARMM workers have low level of skills and are not trainable. Provided with proper access to ICT and the right training, I believe that workers in the region are source of huge economic potentials that remain untapped until now. We want to prove that the ARMM is also a source of highly trainable and world competitive human resources. All we need to do is give the people access to technology and harness their potentials.

Establishing contact centers in Muslim Mindanao will help generate sustainable jobs, reduce unemployment rate, and eventually bring down poverty level in the region where armed conflict has slowed progress in the past.

The ARMM has consistently had the highest rate of poverty incidence in the country, reaching 71.3 in 2000. Although the poverty incidence decreased to 53.1 in 2003 (all regions registered lower rates of poverty incidence during this year), the ARMM remains the poorest region in the country.

The pilot training in Waan show that Muslims too are interested in the call center training and perhaps in the future – a call center may decide to locate in the ARMM.

(Joji Ilagan Bian is a strong advocate for Mindanao ; Chair, Mindanaworld Foundation Inc; Mindanao TVET; Mindanao Rep , Export Development Council ; Chair , Joji Ilagan Foundation ; Former Chair of the Mindanao Business Council. Email comments to jojibian2@yahoo.com)

BUSINESS AS USUAL IN BASILAN

For years, Basilan was considered a dangerous province in Mindanao because many have the perception that danger lurks in its every corner.

But then, organizers of the 4^th Zamboanga Peninsula Business Conference decided to hold these two day event, which took place last April 25-27, 2008 in the province with the main objective of highlighting both its investment and tourism potentials.

The event, considered the largest gathering of members of the business sector of Western Mindanao showed what the province has to offer for investment and tourism. There were over 102 participants coming from the chambers of commerce and industry of the cities of Dipolog, Zamboanga, Ozamiz, Pagadian and Basilan.

On its first day, a special session was conducted at the Isabela City Council Session Hall with the Philippine Chamber of Commerce and Industry - Philippine Chamber Development Institute as the main discussant on private-public sector partnership.

The opening ceremonies at the Juan S. Alano Compound's Julio Amphitheater was hosted by the city of Isabela where guests were treated to a banquet called “Pesong Kaam”, a Yakan term for welcome.

Main Business of the Day

Tackled during the summit of business men were sessions that discussed corporate social responsibility among companies, linkages between business and government; global trading and financial development for Mindanao. There were also representatives from Australian Aid’s Enterprise Challenge Fund and USAID’s Growth with Equity in Mindanao who spoke about development oriented projects that the business sector can avail of.

The joint meeting of the of the Isabela City Small & Medium Enterprise Development Council (ICSMEDC) and the One Town, One Product Technical Working Group also took place with the desire of strengthening the partnership among government agencies and the city's private sector.

Yakan Crafts and Wares

The partnership with the Basilan Chamber of Commerce & Industry, Inc. and the Isabela City Tourism Office and the Department of Trade and Industry – Isabela City and the Alano Group of Companies led to the inauguration of the Isabela City Pasalubong Center . The center was a show room of Isabela City's products, specifically the Yakan crafts and weaves, bamboo appliances and furniture and hand-woven mats. These are used in home furnishings which are at times featured in architectural magazines. If you want to get them for a bargain price;its time to go to Isabela.

The Isabela City Exposition and the Annual Isabela City Agro-Industrial Fair was opened with City Mayor Cherrylyn Santos Akbar leading the event held at the Plaza Rizal. Supporting the trade exposition were the delegations from Zamboanga City, Zamboanga Sibugay and Zamboanga delNorte, as well as local producers' associations and local craft and livelihood organizations showcasing their products.

The Business Students of Isabela

To highlight the important role of the young and future entrepreneurs , the 1st Zamboanga Peninsula-Autonomous Region of Muslim Mindanao Business Camp for Business students of the different public and private tertiary educational institutions was held at the Juan S. Alano Memorial School, Inc.

The students were from the cities of Isabela and Lamitan, Zamboanga and Dipolog. The event also held a series of plenary sessions on entrepreneurship handled by the Nagdilaab Foundation Inc. – Asosasyon ng mga Nagkakaisang Kabataan tungo sa Pag-unlad at Kapayapaan and the Metro Basilan Junior Jaycees (MBJJCs).

Now who says life and business is dull in Basilan?

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August will be very busy month for the academe and the tourism industry of Mindanao. Davao City will be the host of the largest gathering of technical vocational schools, labor and business leaders all over the island. The 7^th Mindanao Human Resource and Skills Development Forum will be held on August 6-8, 2008 at the Mandaya Hotel. This years theme is “Beyong Borders.Meeting the Challenges of Change”. The main organizers is the Mindanao TVET Association and the Technical Education and Skills Development Authority (TESDA)

The biggest tourism and travel exposition; the 3^rd Mindanao Travel and Trade Expo will be on August 8-10,2008 at the Shoemart Entertainment Center. This year’s theme is “Barkadahan sa Octo-break” and this will be participated by the Local Government Units of Mindanao, the Department of Tourism Regional Offices and Travel and Tour Operators

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(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

SAILING THE BIMP EAGA SEAS

The sea linkage between two trading points, or among several others, is very important considering that this is needed in hastening the movement of goods and products at a lower cost. Businessmen and traders will always want lower transportation cost.

I notice that while much has been taking place in the air linkages within the Brunei-Indonesia-Malaysia-Philippines (BIMP) East Asean Growth Area (EAGA) in an effort to facilitate tourism promotion, the sea linkage proposals have not improved that much despite the signing of two memoranda of agreement last year among the four countries.

INITIATIVES

Based on the report of the Mindanao Economic Development Council, as a result of the meeting in April in Bandar Seri Begawan, the capital of Brunei Darussalam, there was no significant movement in the sea linkages among the four countries.

However, the report mentioned some "flagship programs and projects" that the top officials of the four countries were considering,

Among others, the report cited the discussion on a proposal for a tariff reduction of the roll-on roll-off ship operation between Zamboanga and Sandakan, Malaysia. In that meeting, Philippine representatives wanted the Philippines and Malaysian governments to enter into a bilateral arrangements that will reduce port tariffs for their ports. For Malaysia, the agreement will be implemented in its Sandakan port.

The Philippines also requested that the ship be accommodated at a roll-on-roll off terminal.

SOLE LINKAGE and OTHER INITIATIVES

Today there is only the Zamboanga-Sandakan shipping route that is being served by two Zamboanga City-based companies, the Aleson Shipping Lines and the Sampaguita Shipping Lines.

The servicing of the General Santos City-Bitung, Indonesia route has been suspended.

The implementation of a memorandum of understanding on the "establishment and promoting efficient integrated sea linkages" was also one of the key points being explored. The officials for the four countries raised the issue of updating one another on the development of port facilities including the privatization of some of them. This is necessary because this will allow each of them to come up with their respective plans on sea linkages, taking into consideration the viability of using the ports of their trading partners.

The representative of the Asian Development Bank, the sub-regional advisor, was tasked to update the four countries on the pre-investment study that would identify the "shortfall in ports performance and capacity among the designated BIMP EAGA gateway ports and develop project priorities for bridging the performance and capacity gaps as mandated by the BIMP EAGA MoU on Sea Linkages."

There is so much has to be done to improve sea linkages and that it will take much time and political will for all the stakeholders , both government and private sector to make these sea linkages sustainable. Volume of traffic, both passengers and goods have to be present. More business activities have to be created.

I share the optimism of those who are involved in these endeavor, taking note of their efforts in promoting trade among the four countries.

As a leader of the Mindanao business sector, it is also my desire to see that every plan, big or small, finally takes shape to realize the dream of making the sub-region one big borderless economy.

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments joji@jojiilagancareercenter.com

FLYING THE EAGA SKIES

Today, tourism is one of the key sectors that the Brunei-Indonesia-Malaysia-Philippines-East Asean Growth Area (EAGA) is given much emphasis. Not only because it increases people and business mobility but it is one of the fastest means of ensuring that intra regional cooperation and linkages will actually happen on the ground.

The Mindanao Economic Development Council (MEDCO) reported during the 14^th anniversary of the sub-regional group that several air linkages were being opened or on the discussion tables.

Among these linkages are the flights between Zamboanga and Sandakan which is being served by the Asian Spirit; and Malaysia’s Air Asia which flies from Kuching, Malaysia to Bandar Seri Begawan, Brunei. Several other airlines are also looking into possibly servicing other viable routes.

The attempt to establish air and sea linkages fits well into the desire of the four countries to intensify travel and tourism between and among them and encourage more business exchanges. But more importantly, the cost of travel must be reasonable and affordable for both business and tourism so that activities within the region will flourish.

There is a need for all the airlines to study their fare structure very carefully and to ensure competitiveness or else people from the regions will not be motivated to travel either for business or tourism. Budget fares can easily result to greater number of cultural and student exchanges; businessmen visiting theareas to explore what they can do together; more tourists shopping, eating and spending their money.

New Air Route

Just last week, Indonesia’s Wings Air, a subsidiary of Lion Air, has started its chartered flight between Davao City and Manado, a route that has been abandoned so many times because of very thin traffic.

This time the Indonesian government will exert efforts to help sustain the service by bringing in greater volume of goods from Manado, Indonesia. Indonesian Consul Gen. Lalu Malik Partawana who is based in Davao City informed us that his office will exert all efforts to support the new air route.

I am now in Bali, Indonesia enjoying the week with my family. I could had flown directly from Davao; if there was a much easier air routes and cheaper fares. But since there was none; we decided to fly from Singapore.

This is what I had discussed with the Consul when I visited him in his office in Davao City; that we should make the air linkages work this time; and this can be done by creating activities that would bring about movement of people from the Davao to Manado and other Indonesian cities and provinces. And rates of travel is a critical issue – it can be a deterrent if priced wrongly and a strong motivator if the cost is just right.

Fifth Freedom Rights

Load cargo has always been the problem in traveling in the sub-regional destinations. This is the factor that prompted the four countries to declare the implementation of the fifth freedom rights so that airline companies can service destinations within the sub-region outside of their assigned destination.

The four countries even approved the “multiple designation of airlines with no restriction on frequency and capacity” and the “adoption of sub-regional multilateral agreement on common airport tariffs,” hoping that this will trigger the travel intensity among the peoples of the sub-region and those that are visiting its beautiful tourist spots.

What Needs to be Done

Having been actively involved in the promotion of this sub-regional group in the past, I believe that air linkages are very much necessary if the four countries, or their designated areas in the sub-region. They can pushed budget airlines to look into servicing the routes between and among them. This will not only heighten the trade relations among the participants, but would even pave the way for them as a group to look for a bigger trading partner like China or Japan.

This is also very important to the tourism sector, especially now that the industry is looking into promoting itself as one big destination to tourists particularly Europeans who love to travel for days to several destinations. The linkages will serve as a come-on for these travelers to consider the BIMP countries as a single destination within the sub-region.

There is a need to massively promote successful partnerships or business ventures; initiatives and exchanges, cultural and educational linkages that is worth talking about. All of these must be brought up in the open so that the EAGA excitement will again be in everyone’s heart!

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

DAVAO LIGHT AND DABAWENYOS- FORMIDABLE PARTNERS

While politicians and various sectors in Metro Manila are trading barbs over the high power rates, Davao City has been blessed with the best power utility. Davao Light and Power Company is the third largest privately-owned electric utility in the Philippines. It holds the franchise for distributing electric power to Davao City, the largest city in the world in terms of land area, as well as Panabo City and the municipalities of Carmen, Dujali, and Sto. Tomas in Davao del Norte.

In 2007, the company sold 1.331 billion kilowatt-hours to 247,341 customers with a peak demand of 245 megawatts (MW). And while these experts and politicians were trying to go deeper into the so-called systems losses, our power utility here is surprisingly registering systems loss below what the government allows. Based on the data obtained from the company, its systems loss was at 8.8 percent, way below the 9.5% percent that government allows.

Systems loss is defined as energy loss due to technical problems and to pilferage. Under the law, a power utility whose systems loss goes beyond 9.5% is restricted to pass it on to consumers.

Davao Light maintains a 54.7 MW standby diesel power plant, operated as needed to stabilize voltage as well as augment the power supply of its primary generating sources. It makes use of a fully functional automated mapping and facilities management (AM/FM) system to track the location of electric distribution assets in its 3,561 square kilometer franchise. Also in place is a Supervisory Control and Data Acquisition (SCADA) system, a facility that allows remote real-time data gathering and control of equipment in all power substations.

High-end computers, sophisticated software, and other devices are being used to speed up meter reading, streamline billing, provide efficient and prompt response to customer inquiries, generate management information, and analyze electrical grid information.

In anticipation for the increase in demand of power within its service areas, the company has also signed with sister company Hedcor Inc. an agreement that will allow it to buy power produced from the power plants of the latter in Sibulan, Sta. Cruz, Davao del Sur

and those that it will build in Suawan, Tamugan and Panigan in the hinterland of the city.

And until late last month, the main man behind the company was a young and energetic executive known for his humility and candidness. Luis Alfonso Y. Aboitiz, known to friends as “AL” who at the time of his death was at the helm of the company’s operations .

In the past when the power firm would petitioned for increases; Al would do the explaining himself instead of turning over the responsibility to his subordinates. Armed with his power point presentation, Al would patiently discuss the issues on hand to the business sector and leaders of progressive organizations. He would answer every question even those irrelevant ones.

Under his leadership, the company was also known as among the leaders in corporate social responsibility work, having done so many community-related activities from education, health and enterprise development for the people within its service area.

But one achievement that Al was always proud of is the city’s emergency system which is the Central 911 which was patterned after the US and Canada.

The project was conceptualized in collaboration with Davao City Mayor Rodrigo Duterte using the Electronic Computer Aided Dispatch system of the power utility in responding to distress calls. Today, 911 is Davao’s partner in saving lives.

His untimely death not only meant a lot to his family and his company but also to the city which has benefited from his leadership. This maybe late but this column extends its condolences to the family that Al left behind. He will be remembered well by all Dabawenyos.

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

SULU’S RESPONSE TO GLOBAL FOOD CRISIS

From well-oiled automatic rifles and smoke grenades, the Tausogs in Luuk, Sulu are now arming themselves for a different kind of war – a battle for full stomach and patience – to win over the scourge of poverty where it breeds terrorism.

Security officials in the country has been alarmed by the reality of food shortage that triggered riots erupting worldwide and is now gauging the security implications of the crucial rice and food situation in the country.

The Tausogs in this island of more than half a million Muslims are armed not with weapons, but farm implements battling to save themselves from the looming food crisis the country is facing.

Luuk, which literally means, ”low elevation”, was established in 1918 when Maas Kamlon, a very famous Tausog warrior fought against the government. The province is among the poorest provinces in the country and registered with the lowest human development index. It lagged behind in terms of economic development and the people here lived in a lonely island of poverty but ironically in the midst of a vast ocean of natural resources.

Agricultural Revolution

The Tausugs are now in the midst of what they call an agricultural revolution and are planting hundred of hectares of farms with cassava, corn and vegetable.

People here are now conscious enough and know very well the consequences, that if eventually supplies of imported of rice will decrease and will come in trickles, they can always eat cassava as an alternative.

Because they consider cassava as their staple instead of rice, the farmers are able to slowly cushion the impact of the soaring rice prices.

The local government led by Mayor Abdurahman Arbison, together with his Father and the entire government, rallied the people to engage in livelihood projects by tilling their lands and planting them with cassava and other crops, Arbison said that in the advent of a global rice shortage, people in Sulu need not to worry anymore, as they can always go back to their staple which is cassava and since they have an abundance of it ; they can even export it if needed.

Aside from planting essentials, fisher folks at its coastal area here are also concentrating on lobsters (tiger) and groupers (lapu-lapu) culture at sea.

The only fishpond in Sulu is found in this coastal town; and employs people from Iloilo in the Visayas (Ilongos). They manned the fishpond and at the same time teach bangus culture to the locals.

Ilongo’s are known in the Visayas to be industrious and are experts in cultivating fresh water seafoods to include tilapia and sugpo(prawns), however, the Tausogs are not used to eat fresh water fish but is now learning and beginning to like it.

Developments in Sulu

Access roads to near by municipalities connecting to the center town are now under construction and are to be operational before the end of this year. Roads to this areas before it was concreted, were not accessible due to big holes, mud -like soil and boulders of rocks.

Leisure Park, a few hundred meters away from the Tanduh Batu Port which is also adjacent to more than a kilometer from the Boulevard by the Sea is nearing completion.

When operational the park’s centerpiece is a Water Fountain complete with colored light bulbs that will illuminate the rolling and sprouting water above 12 feet from the ground.

The lighted Boulevard by the Sea has a walkway in the side of the riff-raff shoulders to accommodate early morning joggers and sunset lovers who are expected to troop the area.

Opposite the boulevard will rise a Sports Complex complete with Basketball and Tennis Courts with many indoor games.

More commercial stalls around the area will be built in uniform models to accommodate goods and products to be sold at bottom low prices that will showcase native and indigenous products.

Sulu had hosted the visit of two heads of states, two (2) Philippine Presidents, Pres. Gloria Arroyo and Former Pres. Joseph Estrada; and the son of the Great Libyan-Arab Jamahiriya Col. Muammar Khadafi.

Personally, Sulu is one of the areas in Mindanao that continues to attract me. I know so many business people that would really want to go and explore Sulu and see for themselves the economic progress that is now happening. Do it. Now is the time.

(My thanks to fellow MIndanaoan Mr. Ed General of MindaNews for the information in this column).

(Joji Ilagan Bian is a strong and respected advocate for the development of the island. She is Chair of Joji Ilagan Foundation , Phil. Call Centers Alliance, Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)