As delivered Opening Message of NEDA Secretary Arsenio M Balisacan at the 2nd Mindanao Development Forum
Esteemed guests of this year’s Mindanao Development Forum, colleagues in government, distinguished leaders and participants present today, maayong buntag kaninyong tanan (good morning to you all)!
I express my sincere gratitude and appreciation to the Mindanao Development Authority for organizing the second Mindanao Development Forum, themed “Sustaining Strategic Partnership for Mindanao Peace and Development.” I am honored to be invited to provide a message for this event.
First and foremost, I would like to share some positive news regarding our country’s overall economic performance. In 2022, our gross domestic product or GDP grew at a rate of 7.6%, and in the first quarter of 2023, it grew by 6.4%. This growth signifies our country’s sustained recovery and the return of our economy to the high-growth trajectory it displayed before the pandemic, particularly from 2010 to 2019. Despite the challenges faced in the first few months of 2023, this first-quarter performance surpassed expectations.
Additionally, when we examine the regional accounts, we find encouraging news. In 2022, all 17 regions of our country experienced positive growth. Mindanao, in particular, sustained improvements in its economic performance. It contributed significantly to the country’s overall growth, expanding at a rapid rate of 7.2% and contributing 17.2% to Philippine GDP. Davao and Northern Mindanao were the largest contributors among regions in Mindanao.
Although Mindanao faced setbacks due to the COVID-19 pandemic, several regions demonstrated robust poverty reduction between 2015 and 2018. While poverty incidence increased in some regions between 2018 and 2021, others experienced a decrease in poverty rates. This accomplishment showcases the economic resilience of Mindanao. Notably, the Bangsamoro Autonomous Region in Muslim Mindanao or BARMM achieved the largest decrease in poverty incidence, bringing it down from 61.8% in 2018 to 37.2% in 2021.
However, challenges remain, particularly, with respect to inflation. Inflation rates in Mindanao and the nation as a whole have shown a downward trend after reaching their peak in early 2023. We remain hopeful that this deceleration will continue, but we must remain vigilant. Our commitment is to bring down inflation rates to within the 2.0%-4.0% target by the fourth quarter of 2023. High inflation poses a significant threat to full recovery, especially from the economic and social scars inflicted by the Covid-19 pandemic. Broadly, uncontrolled commodity price increases hinder economic progress, human development, and poverty reduction. Domestic issues, constraints in local food production and importation policies, the spread of animal diseases, climate-related challenges, higher energy costs, and supply chain disruptions contribute to inflationary pressures.
Let me now turn to the Philippine Development Plan or PDP 2023-2028, which serves as our country’s medium-term development blueprint. It identifies strategies, priority policies, and legislative agenda aimed at addressing constraints to sustained and inclusive growth, as well as rapid poverty reduction. Anchored on President Bongbong Marcos’ 8-Point Socioeconomic Agenda, the PDP aims to reinvigorate job creation and accelerate poverty reduction in the medium term. It is aligned with our long-term vision, the AmBisyon Natin 2040, which seeks to achieve a strongly rooted, comfortable, and secure life for all Filipinos by 2040.
Aligned with our development plans for Mindanao, the PDP specifically focuses on improving the investment climate in the regions. The government is committed to scaling up domestic investment promotion and business-matching activities at the local level. We aim to map out value chains across sectors and foster regional industrialization. This approach includes supporting regional and urban centers specializing in industries where they are most competitive. Recognizing the value of regional industries as producers for the local market will help address regional growth and development disparities in our country.
Furthermore, we aim to develop platforms that support a culture of innovation. To achieve this, we will accelerate the commercialization of research and development outputs in the regions, equip universities to conduct industry-relevant research, and adopt technology solutions to create intellectual property. Our Regional Inclusive Innovation Centers, established in Mindanao from 2019 to 2021, particularly in Davao, Cagayan de Oro, Zamboanga, and Iligan, will continue to provide design thinking workshops and serve as venues for networking and collaboration between academia, industry, and other ecosystem players.
The PDP also emphasizes the government’s commitment to ensure peace and security, particularly in Mindanao. It outlines strategies to support the smooth and complete transition of the Bangsamoro government. This involves providing assistance to the Bangsamoro Transition Authority in institution building, personnel development, economic management, fast-tracking of normalization and transformation programs, and strengthening intergovernmental relations mechanisms between the national and Bangsamoro governments. These strategies, in partnership with our local and international development partners, are crucial for sustaining the gains of the peace process, especially in achieving social and economic development in conflict-affected communities.
Improving connectivity through the expansion and upgrading of infrastructure in Mindanao remains a top priority for the Marcos Administration in the next six years. Infrastructure plays a critical role in supporting the island group’s rapid growth and its sustained contribution to our food and agriculture sector. Mindanao regions account for 38% of the country’s gross value added in agriculture, forestry, and fishing. Key commodities like bananas and pineapples constitute a sizeable portion of our agricultural exports, with Mindanao being a major producer of such commodities.
Out of the 194 infrastructure flagship projects (IFPs) recently approved under the Marcos administration’s Build-Better-More program, Mindanao is home to 51 IFPs, accounting for about a quarter of the total projects. These projects include regional and interregional initiatives, mainly focusing on physical connectivity and water resources. The infrastructure subsectors cover roads and bridges, urban transport, air, maritime, and rail infrastructure. Additionally, irrigation, flood management, water supply projects, post-harvest facilities, and logistics are included. This demonstrates the government’s commitment to ensuring that the region’s physical assets support future investments.
Examples of Mindanao IFPs include the Mindanao Irrigation Development Project, the ongoing upgrading of the General Santos Fish Port, Phase 3 of the Mindanao Railway Project, New Zamboanga Airport, the Naawan-Opol-Cagayan de Oro City – Villanueva Expressway, the Cagayan de Oro Bus Rapid Transit, the modernization of Davao and Zamboanga’s public transport systems, and the construction of the Central Mindanao High Standard Highway.
In support of our food security agenda, the Mindanao Inclusive Agriculture Development Project, valued at PhP 6.6 billion, was approved by the NEDA Board earlier this year as one of the high-impact infrastructure projects. This project aims to enhance agricultural productivity, resilience, and market access for organized farmers and fisherfolk across selected ancestral domains in all regions of Mindanao.
To ensure the successful implementation of these projects, the government is committed to utilizing various funding sources, from pre-project preparation to approval and actual execution. Therefore, we express our gratitude for the continuous and robust support of our development partners in realizing our ambitious, yet achievable, goals for the transformation of the Mindanao economy.
The Marcos Administration remains fully committed to sustaining the momentum and drive to attract investments. We acknowledge that strengthening the foundation of our economy, alongside essential governance, policy, and regulatory reforms, is vital in attracting investments in sectors that generate high-quality employment opportunities. Specifically, we aim to stimulate investment in agriculture, manufacturing, food processing, IT-BPOs, tourism, and high-tech sectors. While significant progress has been made in opening up our economic sectors in recent years, it is imperative that we maintain the momentum of reforms to unlock our full potential.
Allow me to conclude my presentation by emphasizing the significant role played by our Regional Development Councils or RDCs. In order to achieve our national vision and development objectives, it is crucial that we implement our development strategies at the local level. Through the collaboration and partnerships between our NEDA Regional Offices, RDCs, and their counterparts in the BARMM, along with regional government agencies, local government units, and various stakeholders, we have formulated Regional Development Plans or RDPs. The operationalization of these RDPs necessitates a comprehensive approach involving the entire government and society, with the RDCs spearheading the implementation of development efforts in the regions.
We highly value the RDCs as our primary partners in steering the country’s development and shaping the economic and social transformation of the regions. President Bongbong Marcos has recognized the pivotal role of RDCs, as evident in the prompt appointment of almost all the RDC Chairpersons and Vice-Chairpersons within the first six months of his term. Consequently, we aim to strengthen the influence and relevance of RDCs in regional decision-making processes, particularly, in ensuring that priority regional programs and projects are integrated into the national investment program and budget, and subsequently executed. Moreover, we are actively working to enhance the participation of Private Sector Representatives, alongside members of civil society and academia, in formulating regional development policies, as well as in regional planning, investment programming, budgeting, and monitoring and evaluation.
In closing, I assure our officials, partners, and stakeholders of our unwavering commitment to expanding economic opportunities throughout our regions and achieving our socioeconomic goals in the medium term. Guided by the Philippine Development Plan, the NEDA is eagerly looking forward to collaborating with everyone towards the realization of a prosperous, inclusive, and resilient Mindanao.
Thank you, and have a wonderful day.
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