By John Tria
Hongkong- based airline Cathay Dragon's first regular scheduled flight lands at the Davao International Airport, creating Mindanao's first direct air link to the the world's second largest and fastest growing economy.
What this means for the 27 million people of Mindanao has deep implications that many in the nation's capital may not realize, yet need to understand in order to make sense of the many deep changes taking place in our economy.
This direct air connection brings to Southern Philippines' largest city the prospect of Chinese tourists and more direct trade links, which bring lower costs for local business people who are supplied by Chinese companies, and expands Mindanaos export potentials.
These direct dealings with China can lower costs for local businesses since they cut out the middle man, often a Manila-based trader or importer, and lower shipping costs, since direct shipping from China is often cheaper than shipping to and from Manila.
These links will make local business more competitive, and expose them to export markets that can consume our excess supply of several products, such as Durian, for example.
When in season, prices of the pungent fruit can drop to about 15 pesos per kilo. Recent exports to China, where this fruit has gained popularity, sap up this excess supply and create a demand for processed and frozen durian, adding value for producers. Mindanao already exports bananas to China.
This, in turn, promises to further boost the stellar growth performance of two Mindanao regions: Davao at almost 11% GRDP, and Socksargen at 8% Gross Regional Development Product (GRDP) clocked in 2017, above the country's 6.7% GDP. These recent figures can be pushed higher as infrastructure developments start breakjng ground and election spending ramps up.
Chinese Consulate opens
At the same time, the consulate of the People's Republic of China opens in Davao.
No less than Chinese Foreign Minister Wang Yi attended the opening, with Foreign Secretary Teddy Locsin Jr.
The Chinese consulate general will make travel access to China easier for those from Mindanao and further strengthen ties, given Mindanao's sizeable ethnic Chinese population and centuries of direct trade and cultural relations.
This is the fourth foreign consultate in Mindanao, after Malaysia, Indonesia, and Japan, amid a flurry of appointments of prominent locals as honorary consuls of Germany, Bangladesh, and Hungary.
The diplomatic community in Mindanao is growing.This underscores Mindanao's importance as a strategic location for investments and networking for many countries.
But these new openings to China and the world economy also coincide with some other local developments that can help Mindanao take better advantage of these links.
For one, the recent peace achievements with both the MNLF and MILF and their support for the recently enacted Bansamoro Basic Law cement what used to be fractured "piecemeal" arrangments into a more consolidated settlement that gives Muslim Mindanao a chance at forging a stronger growth path that can help cut poverty.
Another vital development is the emergence of better infrastructure that wil boost the economy and create better connectivity to, from and within Mindanao. Increased state budget allocations in 2018 set into motion many projects that can spur growth.
With these opportunities beginning to bloom, there are a few musts:
Mindanao's tourism stakeholders such as travel agents, hotels and restaurants will need to band together to strengthen the marketing of tourist products to this large market, and continuously assure the quality of offerrings to great a worthwhile experience for the guest. Every tourist is a potential investor.
The business groups and chambers of commerce in various areas of the island can also take advantage of these opportunities by engaging in direct discussions and getting deals. Exposure to foreign markets means they are no longer just small town traders looking to ink deals with Manileno businesses, but rather, entrepreneurs ready for the global stage.
China-Mindanao relations in history
These renewed direct ties with China lend focus to Davao's large and sprawling Chinatown district and reminds not a few of strong pre spanish trade and political relations where the East King of Sulu Paduka Pahala sailed to China with hundreds of Sulu and Mindanao noblemen to the Ming Dynasty era emperor. He died there in Shandong province and has since been part of Chinese history.
In addition, records of trade between the indianized Butuan kingdom also give rise to relationships that are older than the west can record. These historical facts cannot be denied, making Mindanao-Chinese relations part of our trading DNA.
As it is exposed to the larger global economy Mindanao will continue to grow and will no longer be the country's growth laggard. As its regional growth continues to rise on the back of developments in achieving peace and better infrastructure, expect a lot of opportunity for the southern part of this country.
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