First Quarter 2001 Regional Economic Situationer
Western Mindanao
Prepared by: National Economic and Development Authority, Regional Office IX
Date posted: 16 July 2001
(This report highlights the socio-economic performance of the region for the first three months of the year 2001
as well as the contributing factors, which led to the overall performance of the economy)
PART I: REGIONAL ECONOMIC SITUATIONER
The uncertainty in the business
sector-spawned by the political crisis that engulfed the nation in the last
quarter of 2000, and the instability and erosion in the peso reaching
P51.00:US$1, compounded by the significant drop in the tourism activities and
decline of some agricultural activities in the region-had slowed down the
economy.
Agricultural
production declined,
and these
include palay
(-20.1%), banana (-23.8%), coconut
(-4.9%), commercial fishery
production (-1.2%), and
aquaculture (-20.3%) (Annex 1 -
4). However, corn production surpassed its last year’s level by 1.2
percent, from 19,395 MT to 19,625 MT. This could be attributed to the increase
in area harvested as a result in the change in cropping pattern due to favorable
weather condition and continuous rainfall. Moreover, production of cassava,
mango and rubber went up this quarter compared a year ago at 52.9%, 3.3% and
3.4%, respectively.
Total fishery production during the quarter was lower by 6.4 percent from 103,378 MT to 96,784 MT compared to the previous year as a result of the decline in commercial and aquaculture production. Only municipal fishery production (accounting for about 34.7% of the total fishery production) posted an increase of 2.7 percent, from 32,754 MT to 33,634 MT, which can be partly attributed to the favorable weather condition (Annex 4A). In contrast, commercial fishery (which contributes 36.7% to total production) went down by 1.2 percent on account of the high cost of raw materials and warm sea surface water during this period. Aquaculture production (which contributes 28.5 percent to total production), composed of products from brackishwater, freshwater fishpond, seaweeds, marine fishcage and marine fishpen, was adversely affected as it declined by 20.3 percent due to a remarkable drop in seaweeds production (Annex 4B). This is due to strong waves and infestation caused by the “ice-ice” disease, which resulted to the poor quality of seaweeds production.
In
the livestock and poultry sub-sector, hogs and chicken production (measured in
no. of heads), which are the largest components of this subsector, increased by
9.8 and 7.3 percent, respectively (Annex
5).
Export
earnings in the region exhibited a hefty increase of 28.3 percent, representing
an export income of US$88.194 million for the first three months of this year,
compared to US$68.730 million during the same quarter in 2000 (Annex
6) This translates to an absolute increase of US$19.469 million export
revenue in Region IX. This significant increase was mainly on account of the
increase in the earnings from coco oil (traditional products) and marine
products (non-traditional products), with a combined value of US$77.482 million
from the previous year’s US$55.087 million, or an absolute increase of
US$22.395 million.
Despite
the significant increase in investments registered under SEC, total investments
declined by 69.7 percent, from P307.30 million in the first quarter of 2000 to
P93.07 million in 2001 (Annex 7A).
This is, however, not yet indicative of the total investments in the region. The
significant decline in investments is attributable to investment from Direct
Impact of DTI activities, from P302.571 million to P71.930 million during the
period.
Total
tourist arrivals went down by 34.7 percent from 84,452 to 55,162 as foreign
embassies continue to issue travel advisories cautioning their nationals from
traveling specifically to Zamboanga City, Basilan, Zamboanga del Sur, and
Zamboanga del Norte, among other provinces in Mindanao (Annex
8A). This led to the declined in
the total tourist expenditures by 34.3 percent from P707.7 million during the
previous year to P464.9 million in 2001 (Annex
8B).
The
higher employment (7.6%) posted by the industry sector did not offset the
decline in employment in the agriculture and service sectors which led to an
overall decline of employment in the region to 7.3 percent (Annex
9F). As
agriculture activities slowed down this quarter, employment in the agricultural
sector also went down by 4.5 percent which resulted in the lost of about 27,000
workers. This led to an increase in unemployment rate by 1.4 percentage point,
or from 6.0 percent to 7.3 percent (Annex 9D).
The increase in unemployment in this region is also caused by the retrenchment
of workers during this period, as indicated by reports from some selected
companies. This composed of around 84 workers from M and S Company in
Ayala, 75 workers from Everlast Construction,
36 workers from Westzam Trucking Services, 618 workers from Universal Canning
Corp, and 11 workers from Mega Fishing Company all in Zamboanga City.
Inflation
rate in the region was 5.5 percent for the first three months of the year 2001, higher than the 2.7 percent recorded in the same quarter a year ago
(Annex 10A).
The increase was caused primarily by the faster rise in prices of most of the non-food items such as transportation and
communication (22.8%), light (16.6%), fuel (11.9%) and educational services
(10.7%). Moreover, the increases in the prices of tobacco, beverages and dairy
products, due to increasing cost of raw materials/inputs, and the devaluation of
peso contributed to the inflation. The January inflation was recorded at 5.6 percent and slowed down a bit to
5.3 percent in February, before it climbed again to 5.5 percent in March.
Tax
collected for the 1st quarter of 2001 totaled P268.7 million, or 27.2
percent higher than the P211.2 million collected for the same quarter of last
year (Annex
11). The BIR was also able to surpass its collection target for the
first three months of the year by P5.0 million, over its target of P263.7
million.
.
In
the land transportation sector, a total of 26,929 vehicles were registered in
the region during the 1st three months of the year, 90 percent of
which were renewal, while the remaining 10.0 percent were new registration (Annex
12). This figure is
higher by 12.4 percent compared to the 23,953 vehicles registered in the same
quarter of last year.
In sea transport, a
total of 9,560 shipcalls - the bulk of which were from domestic ships - were
made in the region for the 1st quarter of the year, higher than the
6,465 shipcalls recorded in the same quarter last year (Annex
13). Cargo
throughputs decreased by 4.8 percent, from 509,033 metric tons (MT) in the 1st
quarter of 2000 to 484,437 M.T. in the 1st three months of this year
due to the decline in domestic cargoes. Passengers’ traffic were reportedly lower by 2.4 percent, from 1.095 million to 1.069 million
this quarter. Only the ports of Isabela in spite of the decline in the ships
bound for Isabela reported higher passenger traffic (23.5%).
In
air transport, while passengers volume increased by a minimal 0.2 percent, total
volume of air cargoes declined by a minimal 0.3 percent (Annex
14A-B). The decline in air cargoes is attributed to the political and
economic crisis (i.e. the fall of the peso and fluctuating stock market) that
the country experienced in the last quarter of 2000 thereby limiting the entry
and exits of goods.
Postal revenue for the period amounted to P8.430 million which is 1.5 percent lower or P124,189.79 than the gross income of P8.554 million for the same period in 2000 (Annex 15D-E). Postage stamps sales remained the primary source of revenue (P5.8 million), followed by postage metered machine sales (P1.6 million) and domestic money order fees (P606 thousand).
The energy sales in the region in the first quarter of 2000 increased by 9.7 percent, from 144,210.61 MWH in 2000 to 158,134.65 MWH in 2001. This resulted from the increased energy sales of SIOM (Southern Island Oil Mill), MC-PNOC (Maria Cristina-Philippine National Oil Company) and BASELCO (Basilan Electric Cooperative) during the period (Annex 16A). The energy demand of the region likewise increased by 4.6 percent brought about by the increased demand from electric cooperatives (Annex 16B).
Both index and non-index crimes in the region
had declined from 440 cases to 314 cases and 274 cases to 231 cases,
respectively (Annex 18).
This led to the decline in the total crime volume by 23.7 percent.
However, total crime solved also declined by 21.5 percent in spite of the much
higher crime solution efficiency rate. This in turn led to the decrease in the
average monthly crime rate (per 100,000 population) by 1.8 percentage point,
from 7.5 to 5.7.
The succeeding sections present in detail the economic performance of the region in the 1st quarter of 2001 vis-à-vis the same quarter in 2000.
Agricultural Production
Non-Agricultural Output
INTRODUCTION
The following are views and opinions gathered from selected key
informants of various sectors of the regional economy who served as respondents
for the First Quarter 2001 Rapid Appraisal of the Regional Economy (RARE)
interviews. This report indicates the general sense of the public on the present
situation in their respective sectors and the regional economy in general as
well as major events and activities that transpired in the region for the period
covered.. The results of the
interviews are further substantiated with selected developmental news culled out
from local newspapers of the region. The
method is one way of validating whether the “hard” data on the key
indicators of the regional economy as reported by the government agencies are
actually happening. This is also one way of getting the pulse of the private
sector on the performance of the government sector and gathering their policy
recommendations and suggestions.
A –
SECTORAL DEVELOPMENTS
ECONOMIC
DEVELOPMENT SECTOR
I.
AGRICULTURE SUB-SECTOR
Some
9 livestock raisers received their certificates of transfer of ownership for
their loaned animals during a program last January 6, 2001.
The beneficiaries received cattle, swine, carabao and chicken under the
livestock dispersal program initiated by the Department of Agriculture IX in
coordination with the City Veterinarian’s Office.
They were awarded the ownership certificates after complying with the
requirements.
Several
ADB-Funded Agricultural
projects costing P 6,638 million to boost the harvesting and marketing
activities in farm areas had been experiencing a lapse in implementation. One of
the projects is a P652 million agricultural program in five regions in Mindanao,
which had lapsed in completion target as the project
was originally set for completion in December 2000. The Rural
Infrastructure Development Project (RIDP) has lapsed in 95 percent of work
targets DA still awaits final report from the Project Management Office in
Zamboanga del Sur. The RIDP seeks
to provide farm-to-market roads, bridges, warehouses, and solar dryer to
farmers’ cooperative in Zamboanga Del Sur and Norte, particularly in the towns
of Ipil,
Payao,Titay, Tampilisan, Kalawit, Labason and Gutalac
Two
Japanese Investors Join HGA Kihada Export, a company based in Zamboanga City.
The two Japanese have been in the fishing industry of Japan for many
years. The HAS Kihada Export, has
been in operation for about a year. It
exports Grade A Tuna to Japan. The
processing plan is located at the Ben Go Wharf in Zamboanga City.
III. TOURISM SUB-SECTOR
The
Philippine Tourism Authority Travel Tax Unit in Zamboanga City increased travel
tax effective January 1, 2001. Per Memorandum Circular Number 001-2000,
processing fees collected for every travel tax certificate whether exemption,
reduced rate or refund is increased to P 100.00 This covers all passengers,
whether balikbayans, dependents of contract workers and those who are going to
Malaysia by boat or plane. This
supercedes Memorandum Circular No. 002-94 dated June 29, 1994.
SOCIAL
DEVELOPMENT SECTOR
I.
HEALTH
AND NUTRITION SUB-SECTOR
1. There is a sudden increase in cases of Acute Respiratory Infections (ARI) and influenza in Zamboanga City last January to February. About 548 people were afflicted with ARI while 42 suffered from influenza. The sudden increase of ARI was due to the prevailing cold climate in the city during those two months. Patinets suffering from ARI have symptoms of fever, running nose and cough. About 70 percent of the ARI patients in hospitals were aged below 5 years old.
II.
EDUCATION AND MANPOWER SUB-SECTOR
The Zamboanga del Sur National Highschool (ZDSNHS) is among the five top performers in Mindanao and among 15 in the country. A cash award of P 50,000 as Maintenance and Other Operating Expenses (MOOE) was given as part of the Department of Education, Culture and Sports’ Incentive System Program. The program seeks to promote continuing school improvement by giving due recognition and incentives to performing schools. These schools have shown outstanding performance in terms of instructional leadership, school performance, professional development, school climate and culture, student activities, resource generation and utilization and community development.
INFRASTRUCTURE
DEVELOPMENT SECTOR
A
4 Km. Farm access road connecting barangay Salaan and the sitios of Lugakit and
Baluno was inaugurated last March 11, 2001.
The opening of the farm-to-market road was carried out through the
appropriation of city funds amounting to P 8 million.
There is also an ongoing concreting of the Salaan farm-to-market road
with appropriation from city funds worth P 15 million.
II.
WATER RESOURCES SUB-SECTOR
The
Flood Control System in San Jose Gusu, Zamboanga City was inaugurated last
January 13, 2001. The funds for the project were appropriated under the
Congressional Identification Funds of Congressman Celso L.
in the amount of P 1 million.. The
rip-rapping of the river bank falls under the “Rio Limpio” Project.
DEVELOPMENT
ADMINISTRATION SECTOR
I.
FINANCE SUB-SECTOR
The
Bank of the Philippine Islands (BPI) opened its newest branch at Shopmark
Supermarket in Guiwan, Zamboanga City last January 15, 2001.
The BPI Guiwan Branch is the fourth BPI branch in the City.
The first and main BPI branch is the one along Nucasio Valderroza Street,
the second is at a new site at Sucabon, while the third branch is located along
Veterans Avenue.
II.
PEACE AND DEVELOPMENT
No
untoward incident was reported on New Year’s Eve.
This is the assessment of the Task Force Zamboanga on the New Year’s
Eve and day celebration. An elite
force of the headquarters, the Reconnaissance Company, a Special Forces
Battalion and a reserve company have maximized deployment in strategic areas in
entry and exit points of Zamboanga City since December 23, 2000.
The different units have sealed all possible entry points to prevent
terrorists from slipping into the City.
III.
NATURAL DISASTER/CALAMITY
At
least 20 small houses were destroyed when a flashflood hit Curuan in the east
coast of Zamboanga City. The
flashflood was brought about by the continuous rainfall that hit the city for
three days. There was no report of
casualty. However, about 20
families were listed as victims and have sought refuge at the house of
relatives. Damage was placed at P
5000,000.
B-
SEMINARS/ WORKSHOPS/ TRAININGS/ CONFERENCES CONDUCTED
1.
First Philippine Border Jamboree - Zamboanga
City was the host of the 1st Philippine Border Jamboree last January
7 – 12, 2001 at the Zamboanga Freeport in San Ramon. The theme of the said
Jamboree was “Scouting Towards Peace and Prosperity”. The six-day affair was ushered by top officials of the Boy
Scouts of the Philippine led by National President Jeojomar Binay who is the
Chairman of the Metro manila Development Authority; City Mayor Maria Clara L.
Lobregat; Congressman Celso L, Lobregat; Ecozone Chairman Manuel A. Dalipe; and
the different heads of the overseas contingent as well as the 104 Scout Councils
nationwide. About 500 scout delegates attended the jamboree.
The affair served as an opportunity to turn around the image of the city
after the negative impact it has suffered from the Mindanao peace crisis.
2.
Regional
Science Fair – The Department of Science and Technology Science Education Institute (DOST-ISE) in coordination
with the Department of Education, Culture and Sports (DECS), Science Clubs
Advisers Association of the Philippines (SCAAP), Philippine Society of Youth
Science Club (PSYSC) and the Ateneo De Zamboanga conducted the 2001 Intel
Philippine Science Fair – Regional Level Competition last January 16 – 19,
2001 at
the Ateneo
De Zamboanga gymnasium. The Intel Philippine Science Fair
(Intel PSF) is an annual and nationwide competition that aims to promote
science and technology consciousness among elementary and high school students
in the country. Ultimately it seeks
to identify the best and the most creative among the science-inclined and
technology conscious Filipino youth who can ably represent the country in
various international science competitions.
A total of 24 entries joined this year’s regional fair representing
nine (9) secondary schools in the region.
3.
Mindanao
Red Cross Administrators Conference - The Conference which was hosted by the Zamboanga City Red
Cross Chapter was held at the Red Cross Youth Hostel from January 12 – 13,
2001. It was attended by 26 Chapter
Administrators from all over Mindanao and other ranking national officials such
as Julma Dela Peña, Director for Services and Elizaga Iguirin, Director for
Finanace. The two-day conference
focused on the 2000 Chapter performance, as issues and concerns, and action
plans for 2001.
4.
Seminar on Business Opportunities – The
Department of Trade and Industry IX in coordination with the Philippine Embassy
in Kuala Lumpur, Malaysia held a seminar on Business Opportunities in Malaysia
last January 22, 2001 at the Grand Astoria Hotel, Zamboanga City Dubbed “Doing
Business Malaysia”, the conduct of the seminar was in line with the visit of
the Philippine Commercial Attaché to Malaysia Mr. Glenn G. Peñaranda in
Mindanao to promote business opportunities in Malaysia and conducted
consultations with the business sector and government agencies on trade and
investment between Philippines and Malaysia.
There is a felt need to strengthen the coordination between the
Philippine Embassy and the role-players in Mindanao in implementing promotional
activities. Sabbah and Sarawak are potential markets for consumers,
products and services and can also be sources of investments particularly for
projects under BIMP-EAGA..
5.
5th Biology Teachers Association (BIOTA) Conference-Seminar - The
5th BIOTA Confab was
held last January 25-27, 1001 at the Zamboanga State College of marine Sciences
and Technology. The theme was
“Enhancing Teaching Competencies Towards Critical Thinking in the Biology
Classrooms” It is lamentable to
note that the country’s students in both
the elementary and secondary levels are very slow in science and
mathematics subjects. .There is a need to train more or less some 2,000 science
teachers annually if we hope to solve the science teacher deficits.
6.
BIR-PICPA Holds Tax Symposium – The
Bureau of Internal Revenue (BIR) and the Philippine Institute of Certified
Public Accountants (PIICPA) Zambonga –Basilan Chapter held a Tax Symposium
last February 2, 2001 at the Crystal Ballroom of the Grand Astoria Hotel in
Zamboanga City. Topic included
7.
Accreditation of Tax
Agents and
Practitioners; Services
Performed by
Professionals, Banks, Non-Banks. Financial Intermediaries; and the
Issuance of TCC-RR; Implementation of the Establishments and Functions of the
Excise Tax Areas; Review of the Salient Features of RA 8424 covering the Income
Tax Law for Individuals and Corporations; and Protest on Assessments, Tax Refund
and other Legal Matters.
8.
GO-PA Training Workshop - The
Sibuguey Valley Management Council (SVMC) and the Governance for Philippine
Agenda 21 (GO-PA) conducted a Project Development Training Workshop at
Cecile’s Pension House, Tumaga, Zamboanga City last February 12 – 16, 2001.
The Training Workshop was conducted in response to the persistent
problems identified, that is lack of technical capability among local government
units and Non-Government Organizations in project proposal preparation,
packaging and preparation. The Training-Workshop is one of the capability building
activities beading conducted by the GO-PA, in nine pilot areas in the
Philippines aimed at mainstreaming Philippine Agenda 21 and sustainable concepts
at all levels of governance. The in
pilot sites are: ARMM (Tawi-Tawi). Regions 6, 7, 8, 10, 11, 12, and in Region 9,
Sibuguey Valley, Zamboanga Del Su, covering seven municipalities.
Participants to the Training-Workshop were the Local Planning Officers,
Project management Office, Technical Staff, NGOs and staff from the Provincial
Planning Office of Zamboanga del Sur and members of the Local Council for
Sustainable Development of Panglima, Sugala, Tawi-Tawi.
C – PROSPECTS/ POTENTIALS FOR SECOND
QUARTER 2001
1. 1. The Zamboanga Freeport, which is popularly known as Zamboanga Ecozone, is intensifying its effort to receive investments after three years of massive infrastructure development and preparation. It’s road network is now almost completed with water and power facilities already in place. Relatedly, two Korean businessmen expressed their interest in putting up a vehicle reconditioning plant inside the first industrial park of the Zamboanga Freeport Authority. They plan to import various vehicles from South Korea and recondition these. These vehicles have export markets in neighboring Asian countries. .The businessmen were impressed with the substantial fiscal incentives and financial privileges that the Freeport offers.
2.
The
Philippine Coconut Authority (PCA) said that prices of coconut oil and copra are
expected to increase by the second quarter of this year. Coconut prices in the world market now average $200 per
metric tons. Local price of copra
ranges from P 6.00 to 8.00 per kilo at mill gate.
The local price of copra and coconut oil are influenced by the world
market just like the effect of the world market on the local prices of gasoline
and diesel fuel. The prevailing low
prices are attributed to the high supply of coconut in the world market as
buyers have a full inventory consisting of palm and other oil substitutes. The
surplus crude coconut oil can however be used as substitute of bunker fuel,
power generators, ships and vessels and other industrial and mechanical
utilities employing bunker oil-fed broilers.
3.
Zamboanga
Del Sur is one of the pilot areas of Barangay Telephone Project, a joint
undertaking of the Department of Transportation and Communications (DOTC) and
the Canadian Government with a funding of $139 million.
Installation of telephone sets and refection of antennae towers for 520
barangays is expected to be completed by January 2002.
The civil works for Phase Which includes the erection of towers is
accordingly 50.6 percent completed and installation of wireless equipment from
Tambulig to Tungawan starts anytime March to April 2001.
The project is under contract with S.R. Telephone, which now holds office
at corner of Urro and Alano Streets in Pagadian City
4.
The
creation of Zamboanga Sibugay province will deprive the mother province of
Zamboanga Del Sur some P 97,928 taxable parcels of land with a combined assessed
value of P 1,020,399,750. The Third
District is now separated from the mother province has the biggest number of
taxable parcels compared to the 2nd and the 1st districts
with only 70,744 and 67,661 with assessed value of only P 598,915,940 and P
754,402,060, respectively. Certainly,
the creation of the new province will reduce the realty tax collection of the
mother province. Likewise, with
lesser territorial jurisdiction, the number of personnel and budget for salaries
and projects will be reduced. Meanwhile,
a survey is being conducted among 62 personnel as to their preference to be
retained in Zamboanga del; Sur or transferred to the
new province.