ARMM Investment Opportunities
GRAINS PRODUCTION
RICE
The regional output in rice in 2010 was about 623,343 MT in 2010 (BAS) another dramatic increase with the ASIAN Development Bank Funded/Kabulnan Irrigation and Area Development Projects which will irrigate 11,500 hectares . An additional area of 3,600 hectares will be irrigated by the Malmar Irrigation Project. More areas in Sulu and Tawi-Tawi are being considered for irrigated rice farming. Currently the region is participating in the national grains production program called "Gintong Ani" It is a program that provides production loans to farmers in two provinces of ARMM-Maguindanao and Lanao del Sur. In the near future, ARMM is expected to produce extra output so it can supply also nearby regions.
CORN
The ARMM provinces of Maguindanao and Lanao del Sur are traditionally producing bumper corn harvest during peak seasons. ARMM is ranked as one of the five leading corn-producing regions of the country. Even in times of drought, corn serves as the farmer's savior as thousands of hectares of wetland and swamps dries up for excellent corn farming. With this seasonal surge in production level, corn farmers of ARMM encounter marketing problems as most of the country's major corn user or processors are located in and around Manila. The country's shipping problem makes ARMM's corn relatively uncompetitive with corn imports because of high freight cost. Studies suggest that the alternative markets in the nearby BIMP-states should be developed and area-based processing industries such as feed mills be established in the region.
Production statistics for corn in 2010 is 855,668 M.T. and for the first semester of 2011, the region has already produced about 379,400 M.T.
HIGH VALUE COMMERCIAL CROPS
The region is pursuing its commercial high value crops development program. This concerns the expanded production of Durian, Mango, Jackfruit, Banana, Oil Palm, Cassava, Mangosteen and Cutflowers. ARMM is currently strengthening its effort to establish fruit nurseries all over the region to meet the rising needs for seedlings. Again, the commercial scale goal is designed to make the region a market player. Similar effort is being exerted for Cassava and Coconut.
FISHERIES AND AQUATIC RESOURCES
In the past years, the region has established its national leadership in seaweeds production by producing 72% of the national output. However, while the region is exerting effort to expand the production area, the problem on marketing and processing monopoly exists.
Efforts are therefore directed to find alternative markets and product handling support. Seaweeds trading agreements such as the one signed between the Sulu Federation of Seaweeds Growers, Inc. and the BIMP-EAGA Holding company are being pursued. In the recently concluded 1st ARMM Seaweeds Congress held at Zamboanga City, the Bureau of
Fisheries and Aquatic Resources national had pledge to appropriate a sizable funding support to strengthen and improve the Seaweeds industry in the region.
Both the seas, lakes and swamps of the region are being targeted for commercial-scale fishing industries needed to push the economy of the region.
Around 10 million genetically improved Tilapia Nilotica fingerlings were dispersed in the fresh water bodies of ARMM. Supply of fully grown tilapia becomes abundant due to high survival rate and fast reproduction. Consumers in ARMM now enjoy a cheap supply of fish. A commercial potentials of the abundant and cheap fishes is on fish meal production and canning.
The region has the second biggest lake in the country with an approximate area of 32,000 hectares. Lake Lanao, the deepest in the country and considered one of the major tropical lakes in Southeastern Asia, is the source of hydroelectric power for the whole island of Mindanao aside from providing irrigation water and various fishes of commercial potentials. It has other minor lakes such as Lake Buluan and Lake Dapao that are also potential resource of commercial scale fish products. The region has the largest share of swamp area of around 105,000 hectares that is being programmed for extensive agricultural and fishery development.
LIVESTOCK
The region has identified goat production not only for domestic consumption but for export market . Goat production as one of its production strengths due to cultural compatibility with ARMM, considers its largely Muslim inhabitants and the need of the nearby Muslim states. Commercial scale cattle production is also being pushed along the effort to improve Carabao and goat breed.
BANANA
Cavendish Banana has been one of the major export product of ARMM. RBOI-ARMM has registered 3 firms engaged in banana production with a combined area of about 3,500 hectares. Maguindanao and Lanao del Sur provinces have vast track of lands suited for banana production.
OIL PALM INDUSTRY
The region has been identified and proven to be very feasible for Oil Palm Industry . Practically all the five provinces are best suited for oil palm plantation . The strengths of the palm oil industry are manifold. The oil palm is superior in productivity as demonstrated in its yield per hectare at 5 metric tons of crude palm oil, which is 5 to 10 times more than the yield of any oil crop. This makes oil palm growing very feasible when the oil palm farms serve as outgrowers to an anchor farm, which provides technology and planting materials, and a milling plant which buys and processes the raw products.
At present, the ARMM has a total of 12,550 hectares of land planted with oil palm but ships its crude kernel to a nearby Oil Mill in the province of Sultan Kudarat. The RBOI-ARMM have already registered an Oil Palm Mill located at Buluan municipality in the province of Maguindanao with a capacity of 9 MT per day.
PINEAPPLE
Pineapple is one of the region’s dollar earner along with banana cavendish. An RBOI registered firm based at Wao, Lanao del Sur is engaged with commercial production of pineapple for export. But there are other areas in Lanao del Sur and Maguindanao which produced this in smaller quantity for local market only. Total production registered in 2010 was 1,134.85 M.T.
HALAL INDUSTRY
Religious leaders and other stakeholders in the Autonomous Region in Muslim Mindanao (ARMM) have approved the halal certification standards that will be observed in the region as it strives to penetrate the $150 billion global market for halal products. This will serve as a guide on slaughtering, preparing, processing, handling, packaging, distribution and serving of halal food. It very likely for the Halal market to grow as the worldwide Muslim community and the global Halal trade is growing at a fast pace as even the non-Muslims are buying Halal certified food and other products due to their high quality, hygiene and nutritious value.
ARMM has a comparative advantage when it comes to Halal Industry because it is the only Muslim region in the Philippines and the natural starting point for Halal Industry in the country. ARMM plans to produce a niche market of Halal certified products not only for 4 million Muslim consumers in the country, but also for about 1.4 billion consumers world-wide. ARMM officials urged manufacturers to obtain Halal certification because this is the only way for them to tap lucrative Halal market.
INVESTMENT OPPORTUNITIES
PROPOSED CY 2012 INVESTMENTS PRIORITIES PLAN OF THE
AUTONOMOUS REGION IN MUSLIM MINDANAO
I. PREFERRED ACTIVITIES
A. EXPORT ACTIVITIES
1. Export Trader and Service Exporters
2. Support Activities for Exporters
B. AGRICULTURE, AGRIBUSINESS/AQUACULTURE & FISHERY
This covers the production of processed foods (production of “Halal” meat and foods), vegetable oils, food crops, integrated coconut processing and plantation , activated carbon, production of beverage crops and plantation, seaweeds production and processing, fruit processing, aquaculture (fish production and processing), young/sweet corn production, potato and sweet potato plantation/processing, cutflower production/processing, abaca plantation/processing, oil palm plantation/processing/refining and germinated oil palm seeds, feeds production, jatropha plantation/processing, sugarcane plantation/processing and refineries, quality seed and seedlings of fruit trees and other planting materials propagated asexually or by tissue culture, pearl culture/processing, production of livestock and poultry that includes processing, crocodile farming and processing, sericulture, feeds production and production of plantation crops and other pharmaceuticals, medical herbs/essential oil plants, biomass, rubber, carrageenan, mangosteen and moringa.
C. BASIC INDUSTRIES
This covers the production of pharmaceuticals such as antibiotics and medical devices, textile and textile products, inorganic and organic fertilizers using solid wastes materials, mining exploration and development of mineral resources ( mining and quarrying of metallic and non-metallic minerals which includes small scale as defined under P. D. 1899 but to exclude river beds in operations and processing of minerals such as beneficiation and other metallurgical methods) and cement production of at least 1.0 million MTPY capacity (clinker based).
D. CONSUMER MANUFACTURES
This covers processing of rubber products to be integrated with plantation and leather products.
E. INFRASTRUCTURE AND SERVICES
This covers public utilities with developmental route of the five provinces and one city of ARMM and other adjacent cities and provinces such as common carriers, electric transmission/distribution, electric motor vehicle and its parts and components, water supply facilities/waterways and sewerage systems, buses/cargo trucks, other specialized mass transport systems, power generation like hydro power, geothermal and natural gas, and telecommunications with international gateways.
F. INDUSTRIAL SERVICE FACILITIES
This covers the following activities: common centers to include testing and quality control laboratories, training and demonstration centers, tool shops and similar facilities, metal casting, metal working, furniture, ceramics and food processing., petrochemical complex and industrial gases.
G. ENGINEERING INDUSTRIES
This covers engineering products, electronics and telecommunication products, fabrication of construction materials and hydro power plant.
H. LOGISTICS
This covers shipping of cargoes (air, sea and land) and forwarders.
I. BIMP – EAGA TRADE AND INVESTMENT ENTERPRISES
This covers enterprises located or have their base of operation in the BIMP – EAGA, namely, Brunei; Sabah and Sarawak in Malaysia; Malusu, Sulawesi, Kalimantan and Iringaya in Indonesia; and Mindanao and Palawan in the Philippines, who shall invest and engage in economic activity in the ARMM including the age old and Traditional Barter trading in the BIMP – EAGA.
J. TOURISM
This covers the establishment of tourism estate subject to guidelines developed jointly by RBOI-ARMM and the Department of Tourism – ARMM, tourist accommodation facilities, tourist transport facilities and development of retirement villages which shall include health and medical facilities including amenities required by the Philippine Retirement Authority (PRA) and subject to the guidelines to be approved by RBOI-ARMM in consultation with the PRA, the Department of Health (DOH), the Regional Planning and Development Office (RPDO) and other concerned agencies.
K. HEALTH AND EDUCATION SERVICES AND FACILITIES
The ARMM has the lowest indication in the country regarding health and education as reflected in the Human Development Index. For this purpose, there is a need for incentives to be given to investors in the health and educational sectors such as putting – up of private hospitals, medical clinics, wellness centers, primary education, secondary education, tertiary education (colleges, universities and vocational - technical schools) and ancillary services including any and all health and education - related investments.
L. HALAL INDUSTRY
The MTPDP 2004 – 2010 provided that ARMM shall be the production and processing center for the Halal industry. ARMM being the only Muslim region in the country, has a comparative advantage in the Halal industry. Any Halal related business enterprises shall be covered. Halal refers to the permissible products and services under Islamic Law.