BIMP-EAGA

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BIMP-EAGA
East ASEAN Growth Area
Type Subregional economic cooperation
Members
Establishment March 24, 1994
Website
Official site

The East ASEAN Growth Area (BIMP-EAGA) is a subregional economic cooperation initiative in Southeast Asia. It has 4 member Brunei, Indonesia, Malaysia, and the Philippines and it was founded in Davao City, the center of trade and commerce in the Southern Philippines.

Background

BIMP-EAGA was launched in 1994 as a cooperation initiative by Brunei Darussalam, Indonesia, Malaysia, and the Philippines, all of which are member-countries of the regional Association of Southeast Asian Nations (ASEAN). The objective behind the creation of BIMP-EAGA is to accelerate economic development in the four countries' “focus areas” which, although geographically distant from their national capitals, are in strategic proximity to each other, in one of the world’s most resource-rich regions. The BIMP-EAGA initiative is market-driven, and operates through a decentralized organization structure involving the four governments and the private sector.

BIMP-EAGA cooperation aims to increase trade, tourism and investments inside and outside the subregion by:

  • Facilitating the free movement of people, goods, and services
  • Making the best use of common infrastructure and natural resources
  • Taking the fullest advantage of economic complementation

Geography

BIMP-EAGA covers a land area of 1.6 million square kilometers and has a combined population of 57.5 million.

It comprises the following focus areas: the entire sultanate of Brunei Darussalam; the provinces of Kalimantan, Sulawesi, Maluku, West Papua and Papua in Indonesia; the states of Sabah and Sarawak, and the federal territory of Labuan in Malaysia; and the island of Mindanao and the province of Palawan in the Philippines.

The subregion has exceptional natural resources, encompassing two of the world’s largest rainforests (in Borneo and Papua), and biodiverse marine systems in the South China Sea, Celebes Sea, and Sulu Sea.

BIMP-EAGA has a long history of participation in the global economy, stretching back to the silk route and spice trade between Europe, China, and other parts of Asia. EAGA supplies the export markets of ASEAN, North and South Asia, and the Middle East, following the expansion of its air, shipping and land transport links, and the development of investment incentives.

Key Sectors

Agro-industry. Major agriculture products include coconut, palm oil, livestock and poultry, and high-value tropical fruits and vegetables. EAGA areas are focusing on expanded production, complementation, processing and export, to supply specialty markets such as the halal food trade.

Fisheries. The subregion is a global center for the production and processing of important marine products, with tuna and seaweed among its major exports.

Tourism. EAGA is a leading ecotourism destination. It has pristine rainforests and vast coral reefs, and is ethnically and culturally diverse. Tourist activities include visits to cultural sites, as well as diving, snorkeling, trekking, mountain climbing, game fishing, and other adventure sports. Several World Heritage Sites are in EAGA, including Mount Kinabalu in Sabah, the Tubbataha Reef off Palawan, and the Mulu Caves of Gunung Mulu National Park in Sarawak.

Transport and Shipping. EAGA is connected by sea and air to most major cities in Asia. To ensure its competitiveness, the subregion is in the process of upgrading its airports and seaports, and implementing multilateral agreements to facilitate cross-border movement.

Energy. Energy resources are abundant in the subregion. In addition to oil, natural gas and coal resources, EAGA offers investment opportunities in the renewable energy sector, taking advantage of geothermal, biomass, hydro and wind power.

EAGA Institutions

Brunei Darussalam, Indonesia, Malaysia and the Philippines hold an annual Senior Officials Meeting and Ministers Meeting (SOMM) which serves as the main consultative forum and platform for EAGA cooperation. A National Secretariat for each member-country coordinates in-country and subregional activities.

The BIMP-EAGA Facilitation Center (BIMP-FC) was established in 2003 to ensure coordination among the various organizations engaged in the BIMP-EAGA initiative, and support implementation of activities consonant with the BIMP-EAGA Development Roadmap.

Working Groups formulate action plans for priority sectors, and assist in implementing flagship programs and projects. The Working Groups focus on: air linkages, sea linkages, construction, telecommunications/ICT, agro-industry, fisheries, forestry and environment, energy, joint tourism development, capital formation and financial services, and CIQS (customs, immigration, quarantine, and security). The Working Groups are grouped into four Clusters that coordinate and integrate their activities.

The private sector participates in the Working Groups by providing inputs for policy formulation, helping to prioritize projects, and implementing cross-border economic projects. The BIMP-EAGA Business Council (BEBC) serves as an umbrella organization for the private sector in the subregion and enjoys “fifth country” status in EAGA cooperation.

Selected Urban Centers

 Brunei
Sultan Omar Ali Saifuddin Mosque in Bandar Seri Begawan.

 Indonesia

 Malaysia
A bird's eye view of Kota Kinabalu from Penampang.

 Philippines

BIMP-EAGA Air Transport Liberalisation

On April 2007, 4th BIMP-EAGA Transport, Infrastructure and ICT Development Cluster Meeting, the EAGA working group on air linkages agreed to grant fifth freedom traffic rights (FFTR) to all passenger and cargo services in the airports of Bandar Seri Begawan in Brunei Darussalam, Balikpapan and Pontianak in Indonesia, Kota Kinabalu and Kuching in Malaysia, as well as Davao City and Zamboanga City in the Philippines.Manado and Tarakan in Indonesia, Labuan and Miri in Malaysia, Puerto Princesa and General Santos in the Philippines. Additional FFTR designated points in BIMP-EAGA are Manado and Tarakan in Indonesia, Labuan and Miri in Malaysia, Puerto Princesa and General Santos in the Philippines.

Implementation of the Fifth Freedom Traffic rights have been targeted in the air routes as a result of the signing of the Memorandum of Understanding on the Expansion of Air Linkages in BIMP-EAGA during the 3rd BIMP-EAGA Summit recently held in Cebu City on 12 January 2007. As part of the road map, full liberalisation of FFTR in BIMP-EAGA are scheduled by December 2008.

Recent added FFTR points agreed in 2013 include Tawau, Mulu, Makassar and Cagayan de Oro. Cebu, Solo and Johor Baru will be added as co terminalisation points.

Selected sources

  • BIMP-EAGA Integration: Issues and Challenges, Association of Development Research and Training Institutes of Asia and the Pacific (1997) ISBN 978-967-9910-47-6
  • Asian Economic Cooperation and Integration: Progress, Prospects, and Challenges, Asian Development Bank (2005) ISBN 971-561-549-X

External links

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