#MINDANAO
John Tria
In mid 2016, I wrote a column asking people, particularly businessmen, if they had a business plan or strategy for Mindanao. Many, especially those from Manila, must have wondered why I wrote it that way. Perhaps many of them could not see then that there would be a benefit in establishing operations on an island which was then perceived as full of potential, but was problematic.
Yet the reality of the years following the 2016 election of former president Rodrigo Duterte saw a changing business climate, and as a result, a new perception of Mindanao.
One change was the presence of more visitors. The SMX Convention Center in Davao was newly opened, allowing the hosting of large national and international conferences. That brought thousands of convention visitors who in the later months returned with their families and friends to enjoy the sights and culture of the place. The visits encouraged the setting up of new businesses. That time brought improved infrastructure which attracted property investments and changed the skylines of Mindanao’s cities.
Today, Mindanao is the country’s second largest economy after Luzon, achieving the nation’s highest 2020-2021 growth rate at 6.1 percent, and beating that of Luzon and the Visayas (PSA, 2022). In a recent article by Adrian Tamayo, public relations head of the Mindanao Development Authority (MINDA), he noted that Mindanao’s $53.6 billion economy contributed 17.2 percent to the nation’s GDP. If Mindanao’s economy were compared to some European countries, it would be larger than Iceland and Cyprus, and comparable with Slovenia, according to Tamayo.
These comparisons give us a new perspective to view the Mindanao economy and its potential.
Moreover, Mindanao’s population, at 26.25 million, and growing at 1.78 percent (MINDA, 2021), is larger than some ASEAN countries, and almost as large as the combined population of the five Nordic countries at 27.59 million. It is also larger than all of Australia at 25.71 million, according to statista.com.
Mindanao’s population which is predominantly a young, and diverse population with opportunities for growth, will lower current poverty levels and result in collective development to expand growth and opportunity. Their capability to connect with the outside world will be crucial to tap more opportunity.
The better roads in the island, and the more stable peace and order situation contributed to this growth. Can you imagine the potential of such an economy when boosted by even more infrastructure, and direct connectivity to the world, starting with the nearby regions in Indonesia and Malaysia? I certainly can, and hope that as these elements improve, growth, peace and development will continue.
In the recent Mindanao Business Conference, Mindanao’s local chambers of commerce gathered for the first time face to face in Tandag City in Surigao del Norte last week, bringing with them their experiences and hopes as they face the new normal, and see the implementation of vital economic reforms of the past administration.
The 23 conference resolutions focused on pushing the implementation and promulgation of various reforms aimed at boosting economic growth. Mindanao’s business sector is finding its own voice, as its agenda for growth capitalizes on the unique potentials that differentiate it from Luzon and the Visayas.
This dynamic set of leaders are thinking bigger and bolder, and carry with them hopes for Mindanao’s economic future.
With these numbers, it’s safe to say that Mindanao’s economy is moving forward, using its potentials to boost its own, and the country’s growth.