PART III. THREE WAYS TO IDENTIFY OPPORTUNITIES
D. Understanding Priorities within Local Corridor Context
Indonesia, Malaysia and the Philippines each have national and local corridors that coexist with the BIMP-EAGA corridors that could reinforce connectivity and, in some cases, strengthen the economic transformation of the subregion’s corridors.
Brunei Darussalam – Although there are no formal development corridors, Brunei Darussalam does have industrial corridors such as its Bio-Innovation Corridor and the industrial plan that can, in general, be designated as a development corridor for the country (Figure 5.1). The development areas include a proposed oil and gas-related cluster at Pulau Muara Besar; a petrochemical estate at Sungai Liang Industrial Park; a light manufacturing industries estate at Salambigar Industrial Park; and a high-tech estate at Rimba Digital Junction.
Indonesia’s Corridors – Indonesia has national corridors in Kalimantan and Sulawesi (Figure 5.2). The Kalimantan Corridor is considered to be the country’s center for
Figure 5.1. Brunei’s Development Areas
Source: Brunei Economic Development Board.
extracting and manufacturing mineral and energy resources, while the Sulawesi Corridor is the country’s center of production and manufacture of agricultural and fisheries products as well as nickel.36 Investment priorities therefore focus on high value added products, tourism, food security, marine products and services, and activities leading to capacity improvements in human capital. There are also investment opportunities in upgrading of existing infrastructure and construction of new infrastructure in areas that generate improved connectivity.37
Malaysia’s Corridors – In East Malaysia there are two economic corridors (Figure 5.3). The Sabah Development Corridor aims to provide higher value economic activities, balanced economic growth with equitable distribution, and sustain growth through environmental conservation. It recently completed its second phase (2011-2015) of moving Sabah to higher order value-added activities, while the current phase (2016-2025) focuses on the emergence of Sabah as a leading economic center in the Asian region. There are presently five focal areas of development:
o Kinabalu Gold Coast Enclave (tourism) o Brunei Bay Integrated Development (energy) o Interior Food Valley (livestock)
o Bio-Triangle (R&D)
o Agro-Marine Belt (marine resources and palm oil industry)
The key drivers for the corridor are human capital development, infrastructure and utilities, policies and regulations, and fiscal incentives.38
36 Indonesia Investment Coordinating Board (BKPM, 2014), “Indonesia: Investment Outlook, Policy and
Opportunity”. Presented at the 2nd BIMP-EAGA Trade And Investment Facilitation Cluster Meeting, Kota Kinabalu, Sabah, Malaysia, 17-18 September, 2014.
37 Strategic Asia (2012), “Implementing Indonesia’s Economic Master Plan (MP3EI): Challenges, Limitations and Corridor Specific Differences”. Available:
http://www.strategic-asia.com/pdf/Implementing%20the%20MP3EI%20Paper.pdf.
38 Government of Malaysia (2014), “Sabah Development Corridor 2008-2025”. ABC Media Conference & Workshop 2014, Ho Chi Minh City, Vietnam May 22-25, 2014. Available: http://abcm.org.my/abcmfiles/uploads/2014/06/mr-chong-shu-yaw-sabah.pdf.
Figure 5.2. Indonesia’s Kalimantan and Sulawesi Corridors
Source: Indonesia Investment Coordinating Board (BKPM, 2014),
“Indonesia: Investment Outlook, Policy and Opportunity”.
Presented at the 2nd BIMP-EAGA Trade And Investment Facilitation Cluster Meeting, Kota Kinabalu, Sabah, Malaysia, 17-18 September, 2014.
The Sarawak Corridor of Renewable Energy (SCORE) in central Sarawak targets ten key industries for development: tourism, oil, aluminum, metals, glass, fishing, aquaculture, livestock, forestry, ship building and palm oil. It focuses on five geographic growth nodes. Because of the state’s large energy resources, investors are being drawn to the area by the low energy prices and opportunities to investment in power generation and energy-intensive industries.
Commercial node connectivity is improving through the expansion of road and highway systems.39
Philippines’ Corridors – In Mindanao, there are three development corridors (Figure 5.4) that generally aim to improve transport and logistics support to tourism, manufacturing and agriculture through infrastructure development. Within these, there are five industrial clusters that have complementary roles and competitive advantages.40
o Western Mindanao Development Corridor contains the Mari-Culture and Trade Cluster.
o Northern Mindanao Development Corridor contains the Business and Industrial Cluster.
o South-Central Mindanao Development Corridor contains (a) Food Basket Cluster;
(b) Food, Agri-Business and Logistics; and (c) Biodiversity and Ecotourism Cluster.
39 Based on information provided in official SCORE website at http://www.recoda.com.my/ by the Regional Corridor Development Authority (RECODA), which is the agency tasked with overseeing and managing SCORE.
40 Mindanao Development Authority (MinDA, 2014), “Mindanao Development Corridors”. In MinDA homepage.
Available: http://www.minda.gov.ph/index.php/project-management-and-coordination/mindanao-development-corridors-mindc.
Figure 5.3. Malaysia’s Sabah and Sarawak Corridors
Source: Government of Malaysia (2014), “Potential Growth and Investment Opportunities in Malaysia”. Presented at the 2nd BIMP-EAGA Trade And Investment Facilitation Cluster Meeting, Kota Kinabalu, Sabah, Malaysia, 17-18 September, 2014.
Figure 5.4. Mindanao's Development Corridors
Source: Government of Malaysia (2014), “Potential Growth and Investment Opportunities in Malaysia”. Presented at the 2nd BIMP-EAGA Trade And Investment Facilitation Cluster Meeting, Kota Kinabalu, Sabah, Malaysia, 17-18 September, 2014.
The Western Mindanao Development Corridor is especially suitable to the BIMP-EAGA corridors because of its proximity to Sabah, North Sulawesi and Brunei. In an effort to increase trade relations between Mindanao and North Sulawesi, plans have recently been announced for the establishment of a Davao City – General Santos City – Tahuna – Bitung shipping service.41
41 R.J.F. Lumawag (2014), “Infra support, add'l trade routes needed in Mindanao”. SunStar Davao, 2 September 2014. Available: http://www.sunstar.com.ph/davao/business/2014/09/02/infra-support-addl-trade-routes-needed-mindanao-363150.