Leaders and stakeholders from the BIMP-EAGA nations, namely Brunei Darussalam, Indonesia, Malaysia, and the Philippines, gathered in Palawan over the weekend to accelerate the reopening of the Palawan-Borneo sea route. The objective is to overcome obstacles in their respective industries, boost trade activities, and foster growth in the region.
Established in the 1990s, BIMP-EAGA is a sub regional economic cooperation initiative that promotes development in trade, investment, tourism, and socio-cultural exchanges among member countries.
Over a decade ago, the transportation of goods between Palawan and Borneo was disrupted when the sea route was suspended, impacting the movement of products within the sub-region. Currently, industry players from neighboring Southeast Asian countries, including Malaysia, Indonesia, Brunei Darussalam, and the Philippines, are actively working to facilitate the resumption of this once-thriving sea route to stimulate economic growth in BIMP-EAGA.
Officials and business leaders from the four countries met in Puerto Princesa from January 19 to January 21, announcing the long-awaited reopening of the Palawan to Sabah route. They anticipate this revival to materialize soon, supported by investor commitments aimed at enhancing cross-border mobility and trade.
The forum, organized by the business councils of the four countries within BIMP-EAGA, emphasized the crucial role of maritime transport in strengthening linkages and trade in the sub-region.
BIMP-EAGA encompasses diverse regions, including the entire sultanate of Brunei Darussalam; the provinces of Kalimantan, Sulawesi, Maluku, and West Papua of Indonesia; the state of Sarawak and the federal territory of Labuan in Malaysia; Sabah, which is claimed by both the Philippines and Malaysia; and the island of Mindanao and the province of Palawan in the Philippines. Despite being geographically distant from their national capitals, these areas are strategically close to each other.
“We will make things happen in BIMP-EAGA. We are serious this time,” asserted Alex Paglumutan, President of the BIMP-EAGA Business Council and Alternate Country Director in the Philippines.
The reopening of the sea route is anticipated to significantly benefit the fisheries and aquaculture industry, responding to the demand for fisheries and marine products in Sabah, Northern Borneo.
Datuk Foo Ngee Kee, co-founder cum president of the Small and Medium Enterprises Association of Sabah and a Malaysian business owner expressed their interest in sourcing fishery products from Palawan to meet the demands in Sabah. However, he emphasized that the viability of this trade depends on competitive prices and manageable connectivity and logistics costs.
Trade missions are being organized by their group to China and neighboring Southeast Asian countries through the BIMP-EAGA sub-region to explore the export potential of Sabah products.
Said Alih Sha, the President of Palawan Halal Ruminants Raisers Association, envisions Halal livestock such as cattle, sheep, and goats as potential exports to neighboring countries once the sea route reopens.
Raymundo Imaysay, a businessman in Princess Urduja, Narra, Palawan, and the General Manager of the Palawan Agrarian Reform Communities Federation (Parcofed), sees the potential for agrarian reform community cooperatives to facilitate the consolidation of livestock for the BIMP-EAGA market.
The ferry terminal in Kudat, Sabah, Malaysia, is furnished with a comprehensive customs, immigration, quarantine, and security (CIQS) complex, functioning as an international terminal. Businesses in the sub-region, particularly those involved in exporting and importing goods, view the route from Kudat, Malaysia, to Buliluyan, Palawan, as a designated entry route for tourists from both countries.
Since September 2023, an international ferry has been operating on an open sea route in Tawi-Tawi within the Bangsamoro region. The 300-seater M/V Prince Khalil fastcraft provides a twice-weekly trip from Bongao, Tawi-Tawi, to Lahad Datu, Sabah, Malaysia, with a cost of P7,000 per passenger and a travel time of just three hours.
However, despite the upgrade of the seaport in Buliluyan, Bataraza, in 2017, the sea route in Palawan has remained inactive for over a decade.
The business sectors in the BIMP-EAGA express confidence in the reopening of the sea route, anticipating it will stimulate growth in the area. – Gerardo C. Reyes Jr. is an Aries Rufo Journalism fellow.
