Mindanao investments down 63% in 1st half

Strong rebound seen as soon as Marawi crisis is over

Investments in Mindanao dropped by a hefty 63 percent in the first half of the year to R6.87 billion from R18.42 billion in the same period last year, but Trade and Industry Secretary Ramon M. Lopez expressed confidence of a strong rebound once the war in Marawi City is over, saying the government will pour in so much resources to implement a new masterplanned urban development to ensure Marawi can rise from the ashes a lot stronger, becoming a catalyst in the realization of the Mindanao promise.

Board of Investments data showed that investment pledges in four Mindanao regions outside of the ongoing conflict area of Marawi City dropped substantially. Region 10 (Northern Mindanao) got R1.382 billion, 81 percent decrease from R7.304 billion, Region 11 (Southern Mindanao) with R3.210 billion or 49.74 percent down from P6.386 billion, Region XII (SOCCSKSARGEN) with R927.8 million or 77.11 percent down from R4. 054 billion, and Region 9 got nothing from R648 million last year. Investments in Region 13 (CARAGA) rose 100 percent with R1.35 billion in new projects from zero in the first semester last year. There was no data on the Autonomous Region of Muslim Mindanao where Marawi is part of. But Lopez explained that Marawi, at present, has a miniscule impact given that ARMM alone has only 0.67 percent contribution in the country’s gross domestic product.

“Maybe it’s just timing. Based on people we talk to there is still strong interest given the fundamentals and the strong promise of Mindanao especially in agri processing, energy, property development and manufacturing,” Lopez said on the steep drop in Mindanao investments.

He admitted that with the security issue, investors have to rethink the timing of their business, “but not changing the destination of their investments because the parameters and the givens are still there, like good soil and climate that are necessary for their projects.”

“Those (businesses) that are not yet there, they are studying the timing but confidence is still in areas outside of Marawi like Cagayan de Oro and Iligan because Marawi is not Mindanao.”

Investors, he said, have a better picture of the Mindanao situation but they are not withdrawing from Mindanao, “The numbers are still there.”

Lopez, however, said that once the war in Marawi City is over, all roads will lead to this city, benefiting the entire Mindanao.

“As soon as the Marawi siege is over, maybe this year, there will be much higher confi(ARMM)