JICA, MTIT industry clustering project in Mindanao eyed to lure investors, create jobs in conflict areas

July 25, 2019

A project on industry clustering under the Japan International Cooperation Agency (JICA) and the Ministry of Trade, Investment, and Tourism (MTIT) helped boost industries in five provinces in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) as part of efforts to attract buyers, investors, as well as create jobs in conflict-affected areas.

This was announced by the Japanese Embassy in a press statement Thursday.

Under the Market Driven Local Industry Promotion or MDLIP, six industry clusters were formed in BARMM. These were abaca, coconut, coffee, palm oil, rubber, and seaweed, further assisting 9,036 industry players in the region composed of farmers, producers, and micro enterprises. 

JICA’s partner for the project, MTIT, was formerly Department of Trade and Industry –Autonomous Region in Muslim Mindanao (DTI-ARMM).

“Through the project, coconut farmers were able to directly sell to manufacturers and exporters and increase our sales by as much as 30%,” said Bagiyan Angeles of the Maguindanao Coconut Industry Cluster.

As in the coconut industry cluster, the industry clustering strategy also benefited the Seaweed Industry Cluster as sales from seaweed reached P70-million in 2018, and P14 million in February alone, the highest over the past years.

Aside from direct access to processing companies, farmers are also able to improve the quality of their products and expand their markets.

“We were able to adopt good agricultural practices from the training under the project and our products commanded higher prices,” added Amirul Sahiron of the Sulu Coffee Industry Cluster.

The group sells their coffee at P110 per kilo from the P30 per kilo prior to the project after upgrading their products to export quality standards.

Industry cluster members have achieved economies of scale to meet the demand of the local and international market.

The Basilan Rubber Industry Cluster, for example, are working towards establishing two processing plants to improve the quality of rubber products and build the capacity of local workers.

Cluster members established linkages locally and internationally, while also benefiting from convergence of government efforts on industry development and promotion.

“As we transition to BARMM, lessons and best practices from MDLIP will help set directions in promoting the local industries in Mindanao. The project likewise created a handbook on industry clustering, and investor’s guide to help attract more investors into the region, create jobs, and uplift the lives of the people,” said Rosslaini Alonto-Sinarimbo, chief of technical management services of MTIT.

Despite abundant natural resources, investments in Mindanao’s conflict areas lagged behind other regions.

The MDLIP initiative cited the potential of said key industries to increase said investments and create jobs in the region.

Based on industry data over the past five years, the six industry clusters showed key competitive advantages that can help boost Mindanao’s economy.

For abaca, for example, BARMM has the highest production compared to other regions in the Philippines in 2018 with as much as 718 kilograms per hectare annually.

For coconut, BARMM is one of the top ten producers in the country with about over 376,000 hectares planted for coconuts.

For coffee, BARMM is among the Philippines’ top producers accounting for 10,436 metric tons annually.

In terms of other industry clusters, palm oil average yield per hectare is also among the highest in ARMM with 106,527 metric tons produced, accounting for 23 percent of total Philippine production.

For the rubber industry, the Basilan Rubber Industry Cluster Council or BRICC is helping industry development efforts among local rubber processors and suppliers.

For the seaweed sector, ARMM accounts for 45 percent of the Philippine production or 640,593 metric tons. DMS