Palawan, Sabah eye cross-border trade links

DAVAO CITY — Government and business leaders from both Brooke’s Point in Palawan and Kudat in Sabah, Eastern Malaysia have signified interest in opening up direct cross-border trade and investment ties.

Both Palawan and Sabah form part of the Brunei, Indonesia, Malaysia and the Philippines-East ASEAN Growth Area (BIMP-EAGA) geo-economic grouping that was created in 1994 to spur growth and development in what are mostly considered the backwaters of the four countries.

The BIMP-EAGA, which has a combined market of over 50,000 consumers, is considered to be one of the fastest growing geo-economic blocs within the Association of Southeast Asian Nations (ASEAN).

The prospect of port-to-port trading was stipulated in a memorandum of understanding which Kudat and Brooke’s Point officials recently signed in Kota Kinabalu.

The accord was aimed at promoting intra-EAGA trade, tourism and investments in the area of agro-industry and natural resources, transport, infrastructure, information and communication technology, and development of small and medium enterprises in the two places.

Kudat, a town located on the northernmost coast of Sabah, is about 137 nautical miles away from Brooke’s Point, which is on the southeastern tip of Palawan.

Trading between the two areas was reportedly brisk during pre-colonial times. Sea travel between Brooke’s Point and Kudat takes about 12 hours.

According to Mindanao Economic and Development Council (Medco) officials, the two places can serve as strategic gateways to bigger markets.

Kudat is seen as an entry point for Filipino traders to expand trade to Labuan, Sandakan, Kota Kinabalu and even Brunei Darussalam.

Brooke’s Point, on the other hand, could serve as gateway for Malaysian traders to other parts of southern Palawan, particularly the towns of Bataraza, Balabac, Rizal, and Quezon.

Based on initial prospects, Palawan can potentially trade marine products, corn, fruits, coconut, virgin coconut oil, cashew nuts and seaweeds with Kudat.

Medco officials said Kudat businessmen, for their part, could bring noodles, cooking oil and other merchandise to Brooke’s Point.

Plans are also afoot for direct shipping services between Brooke’s Point and Kudat.

This was adopted as a priority project in the third meeting of the BIMG-EAGA Transport, Infrastructure and ICT Development Cluster last March in Pontianak, Indonesia.

Brooke’s Point is reportedly the only town in southern Palawan, which has a port that can accommodate smaller ocean-going vessels.

Medco said the Bureau of Immigration has an extension office in Brooke’s Point, while the Customs and other government offices in Puerto Princesa City are willing to extend support services to the town to jumpstart its trade relations with Kudat.

Meanwhile, Customs, quarantine and security support services are available in the Kudat port.

Kudat officials vowed to make representations with Malaysian authorities to set up an immigration office in their port area. — Edith Regalado