A trader at the Philippine stock exchange in Manila signals a drop in share prices near the giant electronic board (AFP)

Rexcel Sorza, IOL Correspondent

ILOILO CITY, Philippines , January 29 (IslamOnline.net) – The Philippine government vowed Thursday, January 29, to tap the wealth of Mindanao in its bid to revitalize the growth of its economy.

"I made Mindanao my first official visit because the area has much to offer in terms of investment and trade," newly appointed Philippine Trade and Industry Secretary Cesar Purisima told reporters.

He described Mindanao as "a gateway of opportunity" for both local and foreign businessmen.

The minister emphasized that the revitalization of the Philippine economy hinges on how the government can develop the businesses in Mindanao .

He admitted, however, that the island needs government assistance in terms of investment promotion, financial assistance and infrastructure development.

Purisima also underlined the need for greater cooperation between government and business, both local and foreign, to fully tap the wealth of the home of most of the country’s Muslim population.

"The lead role in the development of Mindanao is the private sector which should be the engine of growth. The challenge is to attract big businesses, so that the much-needed capital could start flowing in to the region," he said.

Purisima explained that they would encourage a partnership between big businesses and local producers, usually smaller firms, to supply the businesses’ raw materials and other production requirements.

He believed this will promote the rapid growth of small and medium enterprises that will create more jobs for the residents of Mindanao .

Food manufacturing firms can consider investing in Mindanao , specifically Central Mindanao , expected to be the major producer, processor and exporter of high value agricultural and marine products.

There are also mining opportunities in CARAGA, the northeastern region that holds the country’s largest gold deposits.

CARAGA, which is composed of the provinces of Surigao del Sur, Surigao del Norte, Agusan del Sur, and Agusan del Norte, is also known for its agriculture and marine resources.

On Friday, September 26, Manila announced that the Autonomous Region in Muslim Mindanao (ARMM), one of the poorest and least economically developed areas in the Philippines , stands to receive multimillion-dollar development assistance as soon as a peace agreement is finalized.

Around 250 business leaders and members of various chambers of commerce in the ARMM, most of whom were Filipino Muslims, expressed confidence in the region's ability to make a major economic turnaround at the recent 2nd ARMM Business Congress in the Islamic City of Marawi.

Purisima said that he would discuss the BIMP-EAGA (Brunei-Indonesia- Malaysia- Philippines-East Asian Growth Area) as a strategy to jumpstart the economy of the region through cross-border trade.

BIMP-EAGA, with a total land area of 1.54 million square kilometers, aims to facilitate the freer movement of people, goods and services within the region to stimulate the expansion of its market and resource base.

As of 1997, EAGA investments in Mindanao and Palawan amounted to US$29 million, mostly coming from Malaysia .

Meanwhile, the Philippine domestic economy remained resilient in 2003, successfully withstanding the combined effects of the SARS outbreak, the war in Iraq , the Oakwood mutiny, and the recurring peace and order problems and political instability.

The country’s Gross Domestic Product (GDP) grew by 4.5% in 2003, from 4.4% in 2002.

The robust growth of 18.9% from Net Factor Income from Abroad (NFIA) further shored up the economy, pushing the growth of Gross National Product (GNP) upward to 5.5%, from 4.5% a year ago, the National Statistical Coordinating Board reported Thursday.