Advent of peace in Mindanao a potential magnet for investments

Foreign investors in the country hailed as a “positive development” the landmark framework agreement between the Philippine government and the Moro Islamic Liberation Front, saying it could serve as a magnet for investments to strife-torn Mindanao.

 

"This is a positive development because it brings peace. Anything that brings peace is positive," European Chamber of Commerce in the Philippines (ECCP) president Michael Raeuber told reporters in a briefing in Makati on Tuesday.

 

"It should be successful in bringing development in Mindanao,” he said, citing the Philippines’ fellow ASEAN members Malaysia, Thailand and Indonesia as possible sources of investment. “Investments are anticipated when Mindanao is at peace."

 

The signing of the framework agreement and the prospect of peace in the region will make it easier for government to transform Mindanao into the Philippines’ food basket, the country’s agriculture chief said Tuesday.

 

After congratulating President Benigno Aquino III in Malacañang on Monday, Agriculture Secretary Proceso Alcala said the President told him “’this is a good time for the government’, but would mean more work for my department." 

 

In the past, Alcala said going into the region was a “chicken and egg situation” for many potential investors. “Some were waiting for [Mindanao] to be peaceful [before putting up businesses], but the Aquino administration believes that there can be no peace if our brothers in Mindanao do not have jobs," he added.

 

"Investor confidence [shot] up as soon as the agreement was signed,” he said.

 

With this peace, infrastructure projects should be a priority, said ECCP executive vice president Henry Schumacher. He added that European companies could be a part of this stage of development in southern Philippines.

 

"Creating more international airports in Mindanao... will make change" for a more vibrant tourism and manufacturing activities, he said.

 

However, Schumacher – a longtime Philippine resident – said Filipinos should take the initiative in spurring economic activity in Mindanao for foreign investors to follow. "They want to see our Muslim brothers come first so they could come in too," he said. Pledging session for Mindanao

 

The Aquino administration is preparing for a pledging session on Mindanao, gathering institutional lenders and aid agencies under a Philippine Development Forum early next year, the Department of Finance revealed on Tuesday.

 

Slated for January 2013, the forum would focus on eliciting support for strife-torn southern Philippines where many places have been crippled by decades of armed conflict between government troops and Muslim rebels, Finance Undersecretary Rosalia de Leon told reporters in an interview.

 

During the forum, multilateral and bilateral lenders and aid agencies are expected to pledge a combination of loans, grants, and technical assistance.

 

The administration’s first development forum – focusing on fighting corruption and reducing poverty – was staged in February 2011.

 

The Philippine forum partners are the World Bank, Asian Development Bank and Japan Bank for International Cooperation (JAICA).

 

Saying he does not expect the real impact of the peace deal to come about overnight as "there are ground rules that should be set up," Schumacher nevertheless noted that its impact on investments should be visible. Otherwise, investors “will not be convinced to locate in Mindanao," he said.

 

"Freedom comes with responsibilities," Schumacher added.

 

In a statement issued after the peace pact was signed in Malacañang, JAICA noted its role as an active participant in the development of Mindanao under the Japan-Bangsamoro Initiatives for Reconstruction and Development. The group is also part of the International Contact Group that has advised the Philippines and the MILF, and sat on peace talks as an observer.

 

The World Bank said the agreement is an important step to a lasting peace, security, and development for the benefit of all Filipinos.

 

“The World Bank stands ready to work with the government, MILF and other sectors of Philippine society to intensify our efforts to improve the lives of many Filipinos, particularly the poor in Mindanao, and help build the momentum for lasting peace and inclusive growth,” the bank added. — VS/BM, GMA News