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EAGA Concept Feasible

Perhaps the strongest statement of EAGA's viability comes from the Asian Development Bank, after concluding its Investigative Report on the region.

The ADB has formulated a development strategy to accelerate private sector-led economic development, improve export competitiveness, and enhance the attractiveness of EAGA to local and foreign investment. In attaining sustainable development, this strategy is based on economic complementarities; shared natural resources, information, & technology; the specialisation and regionalisation of production. Eventually, ADB envisages that EAGA becomes a significant part of ASEAN's holistic development.

The EAGA Development Strategy

I. Improve the general environment for economic cooperation and development by empowering the private sector through the provision of:

  • Facilitative policy framework - the coordination and harmonisation of public policy to establish a conducive and unified investment climate
  • Adequate physical infrastructure - linking the businesses of the subregions and improving access to regional and global markets
  • Effective commercial infrastructure - finance, information and skills to establish entrepreneurial capacity and capability

II. Directly encourage the realisation of cross-border trading and investment opportunities through specific productive sector policy, program, and project measures that directly encourage increased investment in the productive sectors (agriculture, fisheries, forestry, tourism, industrial development)
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Source: ADB Study on EAGA, Volume 1 Part 1
Viable projects in agriculture, fisheries, and forestry include oil palm plantations in the Kalimantan provinces in Indonesia as well as seaweed cultivation in Western Mindanao. Brunei, known for its strict halal implementation, may undertake halal meat production and marine fishing. Malaysia likewise stands to benefit in rubber plantations alongside their oil palm industry.
The development of an EAGA Information Network has commenced, with the Working Group on Telecommunications in charge. A prototype has been tested, using four Internet servers around EAGA. The Network will be launched as soon as the nitty-gritty data requirements have been filled.
Opportunities are apl enty in EAGA's tourism industry as well. Tourist hotels and resorts and bus and chartered aircraft companies are only a handful of what can be realised.
Opportunities also beckon in construction, telecommunications, pharmaceuticals, oleochemicals, biotechnology, electronics, and textiles. Many projects of these general backgrounds are in their MOU stages, and still others have already taken off. Thanks to a generally pro-active private sector, EAGA development hasn't totally stalled despite the turmoil brought by the 1997-1998 Asian financial crisis.
The EAGA cooperation has impacted on the citizenry in myriad ways. In Brunei, continuing EAGA activities have raised consciousness of doing business with Sabah and Sarawak, evidenced in part by the increase in inquiries of this matter. In a separate but related effort, relevant authorities in Brunei are negotiating with their counterparts in Malaysia to establish car and passenger ferry services between Muara and Menumbok in Sabah. There is also a proposal to establish direct shipping services between Brunei and Mindanao in the Philippines.
The direct air connection between Davao and Manado has contributed to increased Indonesian trade with Mindanao. EAGA has also led to investments in timber ventures in Kalimantan, as well as a five-year project to develop a 12,000-hectare oil plantation in Sanggau, also in this province.
In Malaysia, the Sabah BIMP-EAGA Council was formed to cater specifically to the growing interest of Malaysian businessmen in the growth region. Sabah is also the recipient of another development in the telecommunications industry. International Communications and Electronics (ICE), an Australian Northern Territory company, has entered into a multi-million dollar joint venture with Malaysian partners to construct a RM140 million Sabah Ducting System (SDS), aimed to provide internal and external links throughout Sabah.
The economic boom around the Western Mindanao and Northeastern Sabah niche has brought about some improvement to local traders. Indonesia has also provided crucial assistance to the Philippines' initiatives for peace in its south.
To sum up, the EAGA is an initiative of four ASEAN governments to pave the way for increased economic and social activity between neighbours by re-establishing ancient links. The opportunities that emerge as a result of this pro-activeness are intended to energise the private sector into expanding business activities for them to be the primary engine of EAGA's growth. EAGA is consistent with today's global associations, and with continued synergy and cooperation among its leaders and people, EAGA may soon play an integral part in ASEAN's overall development. EAGA's achievements in the last four years manifest that it has made one small leap in this direction. [Authored by BIMP-EAGA BC. All rights reserved. Disclaimer of responsibility and liability applies.

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