UPDATED SOCCSKSARGEN Regional Development Plan, 2013-2016

National Economic and Development Authority XII
National Economic and Development Authority XIINational Economic and Development Authority XII

The 2011-2016 SOCCSKSARGEN Regional Development Plan (RDP) serve as the region’s blueprint to achieve its twin goals of inclusive growth and poverty reduction.

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SOCCSKSARGEN:
2013-2016
UPDATED REGIONAL DEVELOPMENT PLAN
Philippine Copyright @2013
by the National Economic and Development Authority
Regional Office No. XII
Establishing Its Role as the
Sustainable Food Center of the South
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SOCCSKSARGEN’s Updated Regional Development Plan (RDP) draws from the
effective execution of development programs and policies in the first three years of
its implementation.
At the national level, the strong macroeconomic fundamentals resulted in
stronger investor interest, improved competitiveness rankings, and recent investment
grade status granted by credit rating agencies. However, we are mindful that the
experience of growth is still not enough to make a significant impact on our poverty
reduction and employment creation goals across the country. Thus, the need to
purposefully consider spatial and sectoral concerns becomes the thrust of the
Updated Philippine Development Plan (PDP) at the national level and the Updated
RDPs at the regional level.
The Regional Development Council (RDC), in crafting this plan, took stock of
the accomplishments achieved and challenges encountered in the first three years of
its implementation. Various stakeholders were engaged through a series of
consultations to ensure that the entire process of development would be inclusive.
With a renewed desire to deliver inclusive growth, this plan provides the
spatial dimension to the Updated PDP by identifying region-specific resources, needs
and interventions. While SOCCSKSARGEN’s Updated RDP provides the framework for
local development, strategies are parallel with the national plan to ensure alignment
of national and regional policies and programs.
This plan is a living document that validates RDC’s commitment to achieve the
region’s development goals. We hope that through this Updated RDP, development
in SOCCSKSARGEN shall be appropriately guided through the prudent use of its vast
natural resources and a productive partnership between government and an engaged
and active citizenry.
We, in NEDA, fully support the region’s desire for inclusive growth as we all
strive to not leave a single Filipino lagging behind our country’s economic successes.
ARSENIO M. BALISACAN
Secretary of Socio-economic Planning
NEDA Director-General
NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY
NEDA sa Pasig, Ortigas Center, Pasig City
M E S S A G E
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The 2011-2016 SOCCSKSARGEN Regional Development Plan (RDP) was
formulated to serve as the region’s blueprint to achieve its twin goals of inclusive
growth and poverty reduction. The said Plan is aligned with the Philippine
Development Plan (PDP) and supports the 16-Point Agenda of President Benigno S.
Aquino, as well as the social contract with the Filipino People which is to stabilize the
macro-economic situation by attaining a broad-based, inclusive and sustainable
growth in a peaceful society.
Three years after the formulation of the SOCCSKSARGEN RDP, the sectoral
committees of the Regional Development Council (RDC) XII which served as the
planning committees revisited the Plan to track the region’s achievement of its
targets. The Updated RDP focused on the assessment on the extent of its attainment
of the targets, identified the developmental challenges that need to be addressed,
adopted relevant strategies, and revised targets as maybe necessary.
A new feature of the Updated RDP is the inclusion of the revalidated Regional
Results Matrix (RRM) for each chapter of the Plan. The RRM includes statements of
objectives with matching indicator framework for the various levels of results to be
achieved in the RDP. The RRM also serves as a guide in the programming,
prioritization of programs and projects, and budgeting process of various
implementing agencies. Anchored on results-based management, the RRM shifts the
focus from input-output monitoring to an emphasis on the achievements of outcomes
and impact prioritized in the Plan.
The updated RDP is crafted after a series of thorough and arduous workshops
and consultations with various stakeholders in the region. On and in behalf of the
NEDA Regional Office XII, I wish to convey my deepest gratitude and appreciation to
all individuals and entities who contributed in the updating of the Plan. Together we
shall work towards realizing higher growth for the region’s economy and its people.
Move on SOCCSKSARGEN!
ARTURO G. VALERO, Ph.D.
Acting Chairperson, RDC XII and
Regional Director, NEDA XII
National Economic and Development Authority XII
REGIONAL DEVELOPMENT COUNCIL XII
Koronadal City
P R E F A C E
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Table of Contents
Title Page
Message ii
Preface iii
RDC XII Resolution No. 65, Series of 2013 iv
SOCCSKSARGEN Region Administrative Map v
List of Tables xi
List of Figures xiv
Acronyms xv
CHAPTER 1: REGIONAL DEVELOPMENT FRAMEWORK 1
I. Vision of Development 1
II. Comparative Advantages 1
III. Development Challenges 2
IV. Development Goal and Strategic Outcomes 2
CHAPTER 2: INCLUSIVE GROWTH AND POVERTY REDUCTION 8
I. Assessment 8
A. Economic Performance 8
1. Gross Regional Domestic Product 8
2. Prices 9
3. Investments and Exports 9
4. Average Family Income 9
5. Poverty and Food Threshold 9
6. Poverty Incidence 9
7. Livelihood and Employment 10
B. Fiscal Reforms 10
1. Local Income 10
2. Internal Revenue Tax 11
3. Internal Revenue Allotment 11
II. Development Challenges 11
III. Development Goals and Strategic Outcomes 11
A. Stable macroeconomy achieved 11
1. Maintaining Growth Rates in Agriculture, Hunting, Fishery and
Forestry
12
2. Sustain Higher Growth Rates in Industry 12
3. Increase Growth Rates in Services 12
4. Stabilizing inflation rates 12
5. Meeting the MDG Poverty Reduction Targets by 2015 13
6. Providing Livelihood and Employment 13
7. Management of Population Growth Rate 14
B. Stable fiscal management attained 14
1. Increasing local income 14
2. Intensifying collection of Internal Revenue Tax 14
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Title Page
3. Reducing dependency on Internal Revenue Allotment 15
CHAPTER 3 COMPETITIVE INDUSTRY AND SERVICES SECTOR 16
I. Assessment 16
A. Investments, MSMEs and Exports 16
B. Industry Clusters 16
C. Tourism Industry 18
D. Competitiveness in terms of Economic Dynamism 20
E. Consumer Welfare Awareness 21
II. Development Challenges 22
A. Low economic productivity 22
B. Need to improve competitiveness of regional industry and services 22
C. Need to increase consumer welfare awareness of their rights and
responsibilities and satisfaction of quality goods and services
22
III. Development Goals and Strategic Outcomes 23
A. Increase economic productivity 23
a. Increase the level of investments and exports 23
b. Increase tourist arrivals 23
B. Improve competitiveness of regional industry and services 26
C. Enhance the level of consumer welfare awareness of their rights
and responsibilities and satisfaction of quality goods and services
26
IV. Plan Targets 26
CHAPTER 4: COMPETITIVE AND SUSTAINABLE AGRICULTURE AND FISHERY
SECTOR
31
I. Assessment 31
A. Contribution to Rapid and Sustained Growth 31
II. Developmental Challenges 36
A. Low productivity and production in agriculture and fishery sector 36
III. Development Goal and Strategic Outcome 39
A. Increase productivity and production in agriculture and fishery
sector towards the attainment of food security
39
IV. Plan Targets 41
CHAPTER 5: ACCELERATING INFRASTRUCTURE DEVELOPMENT 46
I. Assessment 46
A. Integrated and effective transport system 46
1. Land transportation 46
a. Roads and bridges 46
b. Motor vehicle registration 47
2. Port development 50
3. Airport development 51
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Title Page
B. Efficient water resource management 51
1. Irrigation 51
2. Water supply 52
3. Flood control 53
C. Adequate and reliable energy supply 55
D. Effective communications and information management system 56
E. Adequate social infrastructure 56
F. Kilos Abante Priority Programs/ Projects 57
II. Development Challenges 58
III. Development Goal and Strategic Outcome 60
A. Integrated and effective transport system towards improved
mobility and accessibility
60
B. Water security 61
C. Adequate and reliable energy supply for socio-economic and
institutional development
61
D. Effective communications and information management system 62
E. Adequate social infrastructure 62
F. Priority programs/ projects 62
CHAPTER 6: TOWARDS A RESILIENT AND INCLUSIVE FINANCIAL SYSTEM 65
I. Assessment 65
II. Development Challenge 66
III. Development Goal and Strategic Outcome 66
IV. Plan Targets 66
CHAPTER 7: GOOD GOVERNANCE AND THE RULE OF LAW 67
I. Assessment 67
A. Good Governance 67
B. Strengthening of Justice System 77
C. Jail Management 80
II. Development Challenges 81
III. Development Goals and Strategic Outcome 81
A. Promote Effective and Transparent Governance 81
B. Enhance Access to Justice System 86
CHAPTER 8: SOCIAL DEVELOPMENT 89
I. Assessment 89
A. Health Care, Nutrition and Sanitation 89
B. Education and Training and Globally Competitive Human
Resources
91
C. Technical-Vocational Education and Training 92
D. Higher Education 92
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Title Page
E. Promoting Strong and Effective Social Protection Services 93
F. Adequate and Safe Housing 94
II. Development Challenges 95
A. Health Care, Nutrition and Sanitation 95
B. Education and Training and Globally Competitive Human
Resources
96
C. Technical-Vocational Education and Training and Higher Education 96
D. Promoting Strong and Effective Social Protection Services 96
F. Adequate and Safe Housing 96
III. Strategies 97
A. Health Care, Nutrition and Sanitation 97
B. Education and Training and Globally Competitive Human
Resources
97
C. Technical-Vocational Education and Training and Higher Education 97
D. Promoting Strong and Effective Social Protection Services 98
E. Adequate and Safe Housing 98
IV. Plan Targets 99
A. Health Care, Nutrition and Sanitation 99
B. Education and Training and Globally Competitive Human
Resources
99
C. Technical-Vocational Education and Training and Higher Education 100
D. Promoting Strong and Effective Social Protection Services 101
E. Adequate and Safe Housing 101
CHAPTER 9: PEACE AND SECURITY 102
I. Assessment 102
A. Improved Peace and Order 102
1. Crime prevention 102
2. Anti-Illegal Drugs Campaign 105
3. Internal Security 105
B. Improved Public Safety 107
C. Sustained peace and development 108
II. Development Challenges 109
A. Slow-paced rehabilitation and development of conflict-affected
areas
109
B. Vulnerability to security threats 109
C. Incidence of criminal activities 109
D. Inadequate capability for ensuring public safety 109
III. Development Goals and Strategic Outcomes 109
A. Accelerate development in conflict-affected areas 109
B. Reduce vulnerability to security threats 110
C. Acquire manpower, logistical and capacity building 111
D. Ensure public safety 112
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Title Page
CHAPTER 10: CONSERVATION, PROTECTION AND REHABILITATION OF THE
ENVIRONMENT AND NATURAL RESOURCES
113
I. Assessment 113
A. Rehabilitation, Protection and Conservation of Ecosystem 113
B. Improvement of the environmental quality for a cleaner and
healthier environment
115
II. Development Challenges 116
A. Environmental Degradation 116
III. Development Goals and Strategic Outcomes 117
A. Natural resources conserved, protected and rehabilitated 117
B. Environmental quality for a cleaner and healthier environment
improved
119
C. Improved capacities of human communities to natural disasters 120
PLAN IMPLEMENTATION AND MONITORING 122
DIRECTORY OF THE REGIONAL DEVELOPMENT COUNCIL XII, 2013-2016 124
RDC XII PLANNING COMMITTEES FOR THE FORMULATION OF UPDATED
SOCCSKSARGEN RDP, 2013-2016
125
RDC XII SECRETARIAT / NEDA REGIONAL OFFICE XII 126
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List of Tables
Table No. Title
2.1 Gross Regional Domestic Product By Industrial Origin Growth Rates, At Constant
2000 Prices, 2010-2012
2.2 Annual Per Capita Poverty Threshold and Poverty Incidence By Area, 2006, 2009
and 2012
2.3 Labor and Employment Indicators, 2010-2012, Region XII
2.4 Tax and Internal Revenue Collection, 2010-2012, Region XII
2.5 GRDP Growth Targets, 2011-2016, Region XII
2.6 Poverty Targets In 2015, Region XII
2.7 Employment Targets, 2013-2016, Region XII
2.8 Tax and Internal Revenue Collection Targets 2013-2016, Region XII
3.1 Regional Investments and Exports
3.2 Visitor Arrivals By Type, 2010-2012
3.3 Investments and Exports Target, 2013-2016
3.4 MSMEs Indicators and Targets, 2013-2016
3.5 Hotel Occupancy Rate By Area, 2013-2016
3.6 Visitor Arrivals Target By Type and Area, 2013-2016
3.7 Science and Technology Indicators and Targets, 2013-2016
3.8 Indicators and Targets of the Mining Industry, 2013-2016
3.9 Cooperative Development Targets, 2013-2016
4.1 Rice Self-Sufficiency Ratio, 2009-2012
4.2 Existing Areas with Irrigation Facilities, 2009-2012
4.3 Palay Productivity, 2009-2012
4.4 Corn Productivity, 2009-2012
4.5 Productivity of High Value Commercial Crops, 2009-2012
4.6 Land and Land Rights Indicators, 2010-2013
4.7 Productivity Cereal Crop Production in Mindanao
4.8 Productivity of HVCC in Mindanao (in MT/Ha)
4.9 Production Level in Fishery Sector in Mindanao (in Metric Tons)
4.10 Production Level in Livestock and Poultry Sector In Mindanao (‘000 MT/Live
Weight)
4.11 Existing Irrigated Areas and Targets (In Hectares), 2013-2016
4.12 Cereal Crops Existing Production Level and Targets (In MT), 2013-2016
4.13 Cereal Crops Existing Area Harvested and Targets (in Hectares), 2013-2016
4.14 Cereal Crops Existing Production Level and Targets (in MT), 2013-2016
4.15 Cereal Crops Existing Area Harvested and Targets (in Hectares), 2013-2016
4.16 Existing Crop Production Level and Targets For HVCC, 2013-2016
4.17 Livestock and Poultry Production Levels and Targets (MT of Live Weight), 2013-
2016
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List of Tables
Table No. Title
4.18 Fishery Production Levels and Targets (in MT), 2013-2016
4.19 Land and Land Rights Targets, 2013-2016
5.1 Roads and Bridges, 2010-2012
5.2 Status of Road Projects Implemented, 2012
5.3 Port Development, 2010-2012
5.4 Airport Development, 2010-2012
5.5 Irrigation Facilities, 2012
5.6 Major Programs/ Projects Implemented 2012
5.7 Water Supply Projects, 2010-2012
5.8 Flood Control Projects Implemented, 2012
5.9 Energy Supply, 2010-2012
5.10 Information and Communications Facilities, 2010-2012
5.11 Public School Classrooms Constructed, 2010-2012
5.12 NHA Housing Production, 2010-2012
5.13 Housing Indicators (Infra Component), 2010-2012
5.14 Roads and Bridges Targets, 2014-2016
5.15 Target Areas for Irrigation, 2014-2016
5.16 Number of Classroom Targets, 2014-2016
5.17 NHA Housing Production Targets, 2013-2016
6.1 Banking Institutions in Region XII, 2012
6.2 Number of Municipalities Without Banks, By Province, 2012
6.3 Loan Portfolio and Deposit Liabilities, Region XII, 2010-2012
6.4 Banking and Financial System Targets, Region XII, 2013–2016
7.1 Status of Transfer of Regional Agencies to Koronadal City, Region XII, 2010-2012
7.2 Proficiency Examinations Conducted, 2010-2012
7.3 Anti-Red Tape Act Implementation, 2010-2012
7.4 Plan and Policy Formulation, 2010-2012
7.5 Performance of the Region In Terms of Overall Performance Indicator, 2009-2011
7.6 Performance of Province / City In Terms of Overall Performance Indicator, 2009-
2011
7.7 Improving Local Governance and Local Special Bodies, 2010-2012
7.8 Formulation of DRR/CCA-enhanced PDPFPs
7.9 Technical Assistance on the Formulation of DRR/CCA-enhanced PDPFPs, 2010-2012
7.10 Level of Disaster Preparedness to Flood, 2012
7.11 Status of Roll-Out to Barangay on DRRM/CCA, 2012
7.12 Judicial and Quasi-Judicial Representations, Region XII, 2010-2012
7.13 Other Services Rendered, Region XII, 2010-2012
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List of Tables
Table No. Title
7.14 Inventory of Courts and Dockets, Region XII, 2012
7.15 3-Pronged Harmonized Rehabilitation Program, Region XII, 2011-2012
7.16 Inventory of Volunteer Probation Aides, Region XII, 2010-2012
7.17 List of Interventions for the Safekeeping, Welfare and Development of Inmates,
2011 and 2012
7.18 Transfer to Koronadal City Targets, 2013-2016
7.19 Anti-Red Tape Act Implementation Targets, 2013-2016
7.20 Preparation of Local Plans, 2013-2016
7.21 Selected Local Governance Indicators, 2013-2016
7.22 Targets Judicial and Quasi-Judicial Representations, 2013-2016
7.23 Targets on 3-Pronged Harmonized Rehabilitation Program, 2013-2016
8.1 Status of Health-related MDGs
8.2 Status of Core Health Indicators, 2010-2012
8.3 Basic Education Indicators, 2010-2012
8.4 TVET Indicators, 2010-2012
8.5 Higher Education Indicators, 2010-2012
8.6 Selected Social Protection Indicators, 2010-2012
8.7 Housing Indicators, 2010-2013
8.8 Targets for Selected Health Indicators, 2013-2016
8.9 Basic Education Targets, 2013-2016
8.10 TVET Targets, 2013-2016
8.11 Higher Education Targets, 2013-2016
8.12 Social Protection Targets, 2013-2016
9.1 Crime Solution Efficiency, By Provincial/City Police Office, 2011-2012
9.2 Police to Population Ratio, By Provincial/City Police Office, 2010-2013
9.3 PRO 12 Critical Infrastructure Projects, 2010-2012
9.4 Number of Activities Conducted for the Development and Management of Crime
Prevention and Deterrence Program, Regionwide, 2010-2012
9.5 Accomplishment on Anti-Illegal Drugs Programs, Region XII, 2010-2012
9.6 Distribution of Task Forces/Groups, By Urban Area, 2010-2013
9.7 Implementation of IPSP Bayahihan, Region XII, 2010- 2012
9.8 Fire Prevention and Suppression Accomplishments, Region XII, 2011- 2012
9.9 PAMANA Projects Implemented In Region XII, 2012
9.10 Crime Solution and Crime Clearance Efficiency Targets, 2013-2016
9.11 Crime Prevention and Control Program Targets, 2013-2016
9.12 Targets for Campaign Against Illegal Drugs, 2013-2016
9.13 Police to Population Ratio Targets, 2013-2016
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List of Tables
Table No. Title
9.14 Critical Infrastructure Target of the PNP, 2013-2016
9.15 Targets for the Implementation of AFP IPSP Bayanihan and Establishment of
Human Rights Offices at Battalion Level, 2013-2016
9.16 Fireman to Population Ratio Targets, 2013-2016
9.17 Fire Prevention, Suppression and Emergency Medical Service Targets, 2013-2016
10.1 Environmental Management Indicators in Region XII
10.2 Environmental Management Indicators in Region XII (Continued)
10.3 Targets for Selected Indicators of the Environment Sector in Region XII
10.4 Targets for Selected Indicators of the Environment Sector in Region XII (Continued)
List of Figures
Figure No. Title
1.1 SOCCSKSARGEN Development Vision
1.2 SOCCSKSARGEN Development Framework, 2013-2016
3.1 Inclusive Tourism Road Network Map
4.1 Livestock and Poultry Production Trend, 2010-2012
4.2 Fishery Production Trend, 2010-2012
5.1 Transportation Map of the SOCCSKSARGEN Region
5.2 Map of Flood-prone Areas of Region XII
7.1 Percentage of Passing Rate, Region XII
7.2 Region XII Annual Investment Program(AIP) By Sector, 2011-2013
8.1 Monitoring Organizational Structure
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Acronyms
4 Ps Pantawid Pamilyang Pilipino Program
AAGR Average Annual Growth Rate
ADB Asian Development Bank
ADSDPP Ancestral Domains Sustainable Development and Protection Plans
AEW Agricultural Extension Worker
AFP Armed Forces of the Philippines
AHFF Agriculture, Hunting, Fishery and Forestry
AHJAG Ad-hoc Joint Advisory Group
AHMP Accelerated Hunger Mitigation Program
AIP Annual Investment Program
AO Administrative Order
AOR Area of Responsibility
ARMM Autonomous Region in Muslim Mindanao
ARTA Anti-Red Tape Act
BAS Bureau of Agricultural Statistics
BESRA Basic Education Sector Reform Agenda
BFAR Bureau of Fisheries and Aquatic Resources
BFP Bureau of Fire Protection
BIMP-EAGA Brunei, Indonesia, Malaysia, Philippines-East ASEAN Growth Area
BIR Bureau of Internal Revenue
BJMP Bureau of Jail Management and Penology
BOC Bureau of Customs
BOD Biochemical Oxygen Demand
BPAT Barangay Peacekeeping Action Teams
BPLS Business Permits and Licensing System
BPO Business Process Outsourcing
BSP Bangko Sentral ng Pilipinas
CAAP Civil Aviation Authority of the Philippines
CADT Certificate of Ancestral Domain Title
CALT Certificate of Land Title
CAPE Consultancy for Agricultural Productivity Enhancement Program
CARHRIHL Comprehensive Agreement on Respect for Human Rights and International
Humanitarian Law
CARP Comprehensive Agrarian Reform Program
CBFM Community-based Forest Management
CBMS Community-Based Monitoring System
CCA Climate Change Adaptation
CCCH Ceasefire Committee on the Cessation of Hostilities
CCPO Cotabato City Police Office
CCSPC Cotabato City State Polytechnic College
CCT Conditional Cash Transfer
CDD Community Driven Development
CDF Control Dump Facility
CDP Comprehensive Development Plan
CEP Certified Establishment Program
CFCST Cotabato Foundation College for Science and Technology
CFL Compact Fluorescent Lamps
CHED Commission on Higher Education
CIS Communal Irrigation System
CLUP Comprehensive Land Use Plan
CMTS Cellular Mobile Telephone System
COA Commission on Audit
COP Culture of Peace
COTELCO Cotabato Electric Cooperative
CPPO Cotabato Provincial Police Office
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CPT Cleaner Production Technology
CSC Civil Service Commission
CSEE Career Service Executive Examination
CSO Civil Society Organization
CURE Comprehensive and Unified Response to Eliminate Red Tape
CY Calendar Year
DA Department of Agriculture
DAR Department of Agrarian Reform
DBM Department of Budget and Management
DENR Department of Environment and Natural Resources
DepED Department of Education
DFS Diversified Farming System
DILG Department of the Interior and Local Government
DOE Department of Energy
DOF-BLGF Department of Finance – Bureau of Local Government Finance
DOH Department of Health
DOJ Department of Justice
DOLE Department of Labor and Employment
DOST Department of Science and Technology
DOT Department of Tourism
DOTC Department of Transportation and Communications
DPWH Department of Public Works and Highways
DRR Disaster Risk Reduction
DRRM Disaster Risk Reduction Management
DRRMCs Disaster Risk Reduction Management Councils/Committees
DRRMO Disaster Risk Reduction Management Office
DSWD Department of Social Welfare Development
DTI Department of Trade and Industry
DU Distribution Unit
EC Electric Cooperative
ECC Environmental Compliance Certificate
ELA Executive Legislative Agenda
EMS Emergency Medical Service
EO Executive Order
EOD Explosive and Ordnance Division
EPIRA Electric Power Industry Reform Act
EPP Export Pathways Program
FAB Framework Agreement on Bangsamoro
FAPs Foreign Assisted Projects
FMS Force Multiplier System
FS Feasibility Study
GAA General Appropriations Act
GAP Good Agricultural Practices
G-EPS Government Electronic Procurement System
GFI Government Financing Institution
GID Governance and Institutions Development
GIS Geographic Information System
GOCC Government-Owned and Controlled Corporation
GPH Government of the Philippines
GRDP Gross Regional Domestic Product
GSCPO General Santos City Police Office
GVA Gross Value Added
ha Hectare
HD-CCTV High Definition Closed Circuit Television
HDMF Home Development Mutual Fund
HFEP Health Facilities Enhancement Program
HH Household
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HR Human Resource
HRDMP Human Resource Development Management Plan
HUC Highly Urbanized City
HVCCs High Value Commercial Crops
IAs Irrigators’ Associations
ICC Independent Chartered City
ICC Indigenous Cultural Community
ICON Information Coordinating Network
ICRC International Committee of the Red Cross
ICT Information and Communication Technology
IDPs Internally Displaced Persons
IEC Information, Education and Communication
IFC International Finance Corporation
IFMA Integrated Forest Management Agreement
IHL International Human Rights Law
IPRA Indigenous People’s Rights Act
IPs Indigenous Peoples
IPSP Internal Peace and Security Plan
IRA Internal Revenue Allotment
ISO International Standard Organization
ISP Internet Service Provider
ISPF International Ship and Port Facility
JAGS-CT Jose Abad Santos-Glan-Sarangani Cooperation Triangle
KALAHI-CIDSS Kapit-Bisig Laban sa Kahirapan – Comprehensive Integrated Delivery of Social
Services
kg Kilogram
km Kilometer
KRA Key Result Area
kV kilo Volt
LED Light Emitting Diode
LGPMS Local Government Performance Monitoring System
LGU Local Government Unit
LHB Local Housing Board
lm Linear meter
LPRAT Local Poverty Reduction Action Team
LSDP Local Shelter Development Plan
LTO Land Transportation Office
MALMAR Malitubog-Maridagao
MBLT Marine Battalion Landing Team
MCLET Municipal Coastal Law Enforcement Team
MCTC Municipal Circuit Trial Court
MDG Millennium Development Goal
MFI Micro Finance Institution
MFPC Multi-sectoral Forest Protection Committee
MGB Mines and Geo-sciences Bureau
MILF Moro Islamic Liberation Front
MinDA Mindanao Development Authority
MMIP Malitubog-Maridagao Irrigation Project
MMR Maternal Mortality Rate
MOA Memorandum of Agreement
MPEX Manufacturing Productivity Extension Program
MRB Mindanao River Basin
MRBDMP Mindanao River Basin Development Master Plan
MRF Material Recovery Facility
MSMEs Micro Small and Medium Enterprises
MT Metric Ton
MTC Municipal Trial Court
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MTCCs Municipal Trial Court in Cities
MTEF Medium-Term Expenditure Framework
MVA Mega Volt Ampere
MVUC Motor Vehicle Users’ Charge
MW Mega Watt
NAPOLCOM National Police Commission
NCIP National Commission on Indigenous Peoples
NCPW National Crime Prevention Week
NCSPC North Cotabato Seed Production Center
ND No data
NEDA National Economic and Development Authority
NGAs National Government Agencies
NGOs Non-Government Organizations
NGP National Greening Program
NHA National Housing Authority
NHTS-PR National Household Targeting System for Poverty Reduction
NIA National Irrigation Administration
NIPAS National Integrated Protected Areas
NIS National Irrigation System
NNC National Nutrition Council
NRIP National Road Improvement Project
NSCB National Statistical Coordination Board
NSO National Statistics Office
NTC National Telecommunications Commission
OD Open Dump
OFW Overseas Filipino Workers
OPAPP Office of the Presidential Adviser on the Peace Process
OPI Overall Performance Indicator
PA Philippine Army
PA Protected Area
PAMANA Payapa at Masaganang Pamayanan
PAMB Protected Area Management Board
PAG-IBIG Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno
PAO Public Attorney’s Office
PBIS Performance-Based Incentive System
PCA Philippine Coconut Authority
PCCP Portland Cement Concrete Pavement
PCJS Philippine Criminal Justice System
PCT Provincial Core Team
PD Presidential Decree
PDEA Philippine Drug Enforcement Agency
PDP Philippine Development Plan
PDPFP Provincial Development and Physical Framework Plan
PEM Public Expenditure Management
PESFA Private Education Student Financial Assistance
PESO Public Employment Service Office
PFM Public Financial Management
PFMAT Public Financial Management Assessment Tool
PHIC Philippine Health Insurance Corporation
PhilGEPS Philippine Government Electronic Procurement System
Php Philippine Pesos
PIA Philippine Information Agency
PLPEM Provincial/Local Planning and Expenditure Management
PNP Philippine National Police
PNP-SAF Philippine National Police-Special Action Force
POs People’s Organizations
PPA Philippine Ports Authority
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PPA-DOJ Parole and Probation Administration-Department of Justice
PPP Public-Private Partnership
PRAISE Program on Awards and Incentives for Service Excellence
PRAT Poverty Reduction Action Team
PRC Professional Regulation Commission
PRO Police Regional Office
PSR Private Sector Representative
PSS Problem-Solving Session
PWD Person With Disability
RA Republic Act
RAP-LGU Resettlement Assistance Program to LGUs
RATE Run After Tax Evader
RBPMS Result-Based Performance Management System
RDC Regional Development Council
RDI Research and Development Institute
RDP Regional Development Plan
RE Renewable Energy
RGC Regional Government Center
RoRo Roll on-Roll off
RPMC Regional Project Monitoring Committee
RTC Regional Trials Court
SCPPO South Cotabato Provincial Police Office
SIFMA Socialized Integrated Forest Management Agreement
SKPPO Sultan Kudarat Provincial Police Office
SKSU Sultan Kudarat State University
SLF Sanitary Landfill
SLGR State of Local Governance Report
SMEs Small and Medium Enterprises
SMI Sagittarius Mines Incorporated
SOCCSKSARGEN South Cotabato, Cotabato Province, Cotabato City Sultan Kudarat, Sarangani,
General Santos
SOCOTECO South Cotabato Electric Cooperative
SOV Search for Outstanding Volunteers
SPPO Sarangani Provincial Police Office
SRIP Small River Impounding Project
SSF Shared Service Facility
SSL Salary Standardization Law
SUCs State Universities and Colleges
SUKELCO Sultan Kudarat Electric Cooperative
TB Tuberculosis
TC Therapeutic Community
TESDA Technical Education and Skills Development Authority
TIEZA Tourism Infrastructure and Enterprise Zone Authority
TOT Training for Trainors
TVET Technical-Vocational Education and Training
TWSP Training for Work Scholarship Program
UHC-AHA Universal Health Care - Aquino Health Agenda
USM University of Southern Mindanao
VIILPs Various Infra Including Local Projects
VPA Volunteer Probation Aide
WDP Wastewater Discharge Permit
WQMA Water Quality Management Area
1
CHAPTER 1
REGIONAL DEVELOPMENT FRAMEWORK
I. Vision of Development
The development vision of SOCCSKSARGEN reflects its desire to become a people of integrity and faith -
communing with God and living out His laws, and walking the paths of righteousness, justice, peace and
respect for human rights and the environment. The people of the region are empowered and are able to
influence others as they are motivated by dynamic and dedicated leaders toward a self-reliant and a
productive way of life.
The socioeconomic development of the region is accelerated by the people’s concerted efforts in harnessing
the region’s natural endowments in a manner that is sustainable. The region shall be known as provider of
quality products and services, particularly from the creative, innovative and responsible development of
high value crops, fishery, mineral resources, and tourism potentials.
It is likewise the vision of the people of the region to be living in an environment where all its elements
(land, water, air, climate and genetic resources) are healthy and green providing them the needed care and
attention for a sustained economy. The sustainable management and utilization of its natural resources is
the region’s legacy to its future generation. Figure 1.1 is the SOCCSKSARGEN Vision of Development
enunciated in the Regional Development Plan (RDP), 2011-2016.
FIGURE 1.1 SOCCSKSARGEN DEVELOPMENT VISION
II. Comparative Advantages
Given its natural endowment, SOCCSKSARGEN Region has great potentials for high levels of agriculture
production, tourism development, energy generation, and other resource-based industries. Support to
develop these industries includes the implementation of high impact infrastructure amenities, such as
airports and irrigation dams. The following are among the comparative advantages of Region XII:
 Region XII is strategically located in the south central part of Mindanao. Its location facilitates the
export of various products and eases mobility of people to Brunei, Indonesia, Malaysia, Philippines-
East ASEAN Growth Area (BIMP-EAGA) and Southeast Asia.
 SOCCSKSARGEN is among the leaders in the country in palay and corn production. It is the top
producer of high value crops like coffee, banana, asparagus, and oil palm. General Santos City is host
to 80 percent of tuna industry in the country. The region also ranks seventh in hog inventory.
“By 2016, Region XII is the home of God-centered, empowered,
culturally diverse people; a provider of world class high value
crops, fishery, mineral and tourism products and services,
propelled by dynamic and dedicated leaders, and living in a
green and healthy environment.”
2
 With the establishment of Halal Laboratory in Koronadal City, the region has vast potential to be the
source of Halal-certified products for export to the billion dollar Halal markets in Southeast Asia and
the Middle East.
 The region has existing infrastructure facilities, such as the General Santos International Airport and
the General Santos Port. In support of the development of the agriculture and fishery sector, the
Malitubog-Maridagao River Irrigation System (MALMAR) currently services around 5,500 hectares of
rice fields in the Provinces of Cotabato (Pikit, Carmen) and Maguindanao (Pagalungan, Pagagawan).
The completion of MALMAR Project 2 is expected to expand irrigable areas in both provinces of
Cotabato and Maguindanao.
 The Mt. Apo Geothermal Plant in Kidapawan City, Cotabato Province contributes to the power
requirement of the Mindanao Grid.
 The region boasts of various eco-tourism destinations, such as Lake Sebu, Mt. Apo, Gumasa beaches,
diving sites, historic caves, and bird and bat sanctuaries.
 The socioeconomic growth and development of the region is propelled by talented and highly skilled
population.
III. Development Challenges
To attain its development vision, the region shall address the challenges that continue to confront its people
and hinder its desire to move forward, namely its low and erratic economic growth and high poverty
incidence. These two major challenges are the combined effects of low economic productivity, low income
and lack of access to productive and decent employment, inadequate access to quality basic services,
inadequate infrastructure support, and environmental degradation, as well as the unstable power supply, and
difficulties in sustaining peace, and improving governance.
IV. Development Goal and Strategic Outcomes
The region’s stakeholders shall work together and take advantage of its strength in agriculture, ecotourism
and rich natural resources to sustain or even surpass the current growth of the regional economy and
achieve inclusive growth and poverty reduction by 2016. This shall be attained through a sustained boost in
investments, making available productive employment and increase in income and quality of livelihood
opportunities.
Also considered as critical factors that would contribute to the over-all development goal of inclusive
growth and poverty reduction are the provision of quality and adequate basic social services, resiliency of
the people and communities to all types of disasters, and at the same time, the presence of effective
infrastructure support and resilient financial system in the region.
All these development interventions shall occur with the backdrop of good governance highlighted by the
rule of law, transparency and accountability; green and healthy environment; reliable energy supply and
stable peace and order condition.
Figure 1.2 provides the SOCCSKSARGEN development framework for the next three years.
3
FIGURE 1.2 SOCCSKSARGEN DEVELOPMENT FRAMEWORK, 2013-2016
In pursuit of inclusive growth and poverty reduction
The overarching goals of SOCCSKSARGEN region are inclusive growth and poverty reduction. These
goals are consistent with the Social Contract of His Excellency President Benigno S. Aquino III and the
Philippine Development Plan (PDP), 2011-2016.
Inclusive growth refers to a growth that is rapid enough to matter, given the country’s large population,
geographical differences, and social complexity. It is sustained growth that creates jobs, draws the majority
into the economic and social mainstream, and continuously reduces mass poverty.1
For the past three
years, the SOCCSKSARGEN Region pursued strategies and implemented interventions aimed at reducing
poverty levels by increasing economic growth and job generation, providing basic social and infrastructure
services, ensuring good governance, and sustaining the gains in peace initiatives.
From 2010-2012, regional economic performance recorded low and erratic growth trend and high poverty
incidence. These two major challenges are attributed to low economic productivity and low income
because of lack of access to productive and decent employment.
Persistent challenges such as inadequate access of people to basic services, low infrastructure support,
inadequate and unreliable power supply for socioeconomic development, environmental degradation, and
poor governance, further pushed economic productivity down and poverty levels up. If these challenges are
not addressed, the development of the region would remain sluggish. Majority of its people will remain
poor and would not benefit from gains in economic growth.
Poverty reduction is the pro-active initiative of decreasing absolute and relative poverty. Absolute poverty
refers to the condition of the household below the food threshold level while relative poverty refers to the
gap between the rich and the poor2
. With all sectors of society benefitting from development through
inclusive growth, there is optimism that the Millennium Development Goal (MDG) target of 16.6 percent
poverty incidence shall be attained.
1
Philippine Development Plan (PDP), 2011-2016.
2
Republic Act (RA) 8425 “Social Reform and Poverty Alleviation Act of 1997.”
4
Strategic Outcomes
From the issues identified, the achievement of the following strategic outcomes is expected to contribute to
the realization of inclusive growth and poverty reduction.
1. Achieving stable macroeconomy
Regional economic performance as measured by the gross regional domestic product (GRDP) is targeted to
sustain growth rates within the range of 8% to 10% up to 2016. All the industry groups are expected to post
positive growths during the period. The region shall boost activities in the Services and Industry sectors as
the lead contributor to the economy. The linkage between production and processing shall be further
tightened and strengthened.
2. Meeting the MDG poverty reduction targets by 2015
With the expected growth in the regional economy during the plan period, a greater number of jobs are
expected to be generated which could provide higher and more stable sources of income, particularly for the
vulnerable sectors. Adequate income and access to productive employment are expected to contribute to
the reduction of poverty level in the region. The poverty incidence of population in the region is targeted to
decrease from 46.8% in 2000 to 23.4% by 2015; and, the poverty incidence among families from 40.7% in
2000 to 20.4% in 2015.
3. Providing livelihood and employment
Employment rate is targeted to hit 96.4% by the end of plan period. On the other hand, the reduction in the
underemployment rate is targeted between 15% and 18% in the remaining years of the plan period. To
attain the employment and underemployment targets, increased economic activities that contribute to job
generation in the Agriculture, Fishery and Forestry sector, as well as in the Industry and Services sectors
shall be pursued.
4. Managing the population growth rate
The high population growth in the region demands greater use of resources that are fast depleting. The
region shall therefore strive to manage its population growth by intensifying the implementation of
programs and projects that focus on responsible parenthood, family health, and other health-related
programs, including advocacy on acceptable reproductive health measures. Utilizing medium growth
population assumptions, the region is expected to achieve a slower population growth rate of 2.06% by
2016.
5. Enhancing productivity of MSMEs
The region recognizes the primary role of MSMEs in making the Industry and Service sectors more
competitive. To ensure the development of MSMEs and enhance their productivity, the Industry Clustering
Strategy shall continue to be adopted. This strategy is a goal-oriented cooperation of producers and
industry players to find and to respond to business opportunities not normally accessible to individual
players. It is a private sector-led and government-supported initiative that promotes private and government
collaboration.
6. Boosting investments and exports
By 2016, investments into the region are targeted to increase to PhP 11,800.20 million and exports are
expected to reach US$ 1,294.50 million. The target increase for investments and exports will largely come
from the Industry and Services sectors of the regional economy. This shall be realized through enhanced
policies and increased and sustained production of agricultural and industrial commodities.
5
7. Increasing tourist arrivals
To attract tourism investments and to increase tourist arrivals, DOT XII in collaboration with LGUs, hotel
and food operators, transport sector, and handicraft producers shall focus their interventions on the tourism
value chain to specifically develop and market competitive tourism products, improve market access,
connectivity and destination infrastructure, improve tourism institutions, and human resource capacities.
Tourist arrivals are targeted to increase by 10% annually from 682,468 in 2012 to almost one million tourist
arrivals in 2016. The increase in tourist arrivals would result from various initiatives consistent with the
strategies and activities in the tourism industry.
8. Increasing productivity and production in agriculture sector towards the
attainment of food security
The Department of Agriculture (DA) XII under the Agri-Pinoy Rice Program aims to increase the rice
production to an average of 4 tons per hectare for irrigated areas and 3.5 tons per hectare for rain-fed areas.
The target increase per hectare would result to an additional 542,075 metric tons of palay or equivalent to
43% increase in total production by 2016. DA XII also plans to expand an additional 72,893 hectares or
11% of the total production area for both irrigated and rain-fed palay. The expansion in irrigated palay
production is also supported by the NIA XII initiatives in expanding their target service areas.
For Agri-Pinoy Corn Program, DA XII targets to increase the production in 2016 by 205,753 MT or about
17% of its total production in 2012. The yellow corn production is almost 60% of the total corn production
in the region and it is expected to deliver an additional 124,178 MT by 2016. The area for corn production
is targeted to increase by 4% or about 18,204 hectares by 2016. Of the total target area expansion, 69% will
be utilized for yellow corn production since it has a greater market demand as compared to white corn.
The contribution of the vulnerable sectors and indigenous peoples (IPs) to agriculture production and hence,
to food security can be enhanced by ensuring them access to lands, granting them land rights, and
mainstreaming them into society.
9. Providing efficient and effective infrastructure facilities and services
The region shall sustain the implementation of road projects consistent with the thrust of President Aquino
to concrete all national and secondary roads leading to production areas and tourism sites by the end of
2016. The region shall likewise pursue the construction and rehabilitation of high priority irrigation
facilities to ensure water security for agriculture production and to provide tap water supply. To facilitate
regional integration, the development of digital infrastructure, such as the Cellular Mobile Telephone
System (CMTS) shall be intensified particularly in remote areas.
The delivery of basic social services shall be improved by constructing more facilities for education and
health infrastructure as well as affordable housing units.
10. Ensuring adequate and reliable energy supply for socio-economic and
institutional development
It is imperative for the region to address the unreliable energy supply that slows down industry activities
which could hamper the attainment of regional economic growth. The pace of industrial and commercial
progress in the region continues to grow with the establishment of more processing plants, malls, and hotels
triggering greater demand for power. The region shall pursue the promotion and shall fast track the
development of renewable energy sources, such as hydro and solar power to meet the ever increasing
demand for energy.
6
11. Establishing a resilient and inclusive financial system in the region
The financial system is essential for a regional economy in creating channels to transform savings into
investments. One of the factors that contribute to economic growth is the amount of savings that are
efficiently channeled into investment. The soundness and stability of banks can have the incentive and
influence in shaping the major decisions of individuals and enterprises as well as those of non-financial
companies on how much savings will be mobilized. By the end of plan period, it is targeted that total
number of banks would increase from 197 in 2012 to 205 in 2016. Loan portfolio is also expected to
increase from PhP17.27 billion in 2012 to PhP25.25 billion in 2016.
12. Maintaining good governance and the rule of law
The SOCCSKSARGEN Regional Development Framework, anchored on good governance, is expected to
contribute to the achievement of inclusive growth and poverty reduction. The region shall continue
institutionalizing reforms towards greater participation, accountability, transparency, effectiveness and
efficiency, equity and inclusivity and widened practice of the rule of law. The City Government of
Koronadal in partnership with regional line agencies shall continue the on-site development at the regional
government center in compliance to Executive Order 304 aimed at improving administrative efficiency.
13. Strengthening of justice system
One of the concerns on effective and efficient delivery of justice is the maintenance of a just and orderly
society. Access to justice system through representation shall be provided especially to indigents and
vulnerable clientele in the region. The provision of assistance to the victims of unjust imprisonment shall be
continued.
14. Ensuring adequate access to quality basic social services
The SOCCSKSARGEN Region considers the importance of developing its human resources as key to
inclusive growth. This shall be done through the provision of equitable and adequate access to quality basic
social services to ensure healthy, educated and skilled population in support of the President’s Social
Contract. The region shall continue to improve the efficient utilization, allocation and mobilization of
resources both at the local and regional levels.
The health sector shall ensure that the population has universal access to quality health care, nutrition and
sanitation. The education sector shall provide equal access to quality basic education, TVET and higher
education for all.
Sufficient data on housing needs and backlogs in localities shall be generated as input to shelter
development planning. There is a need for most of the LGUs to formulate and update their Local Shelter
Development Plans (LSDPs). The creation or strengthening of the Local Housing Board (LHB) will pave
the way to an efficient and effective formulation/updating of the Local Shelter Development Plan of cities
and provinces in the region. A functional LHB which serves as an advisory body on housing concerns will
assist the LGUs in providing access to affordable housing especially for the poor and low-income
population. It shall also encourage private sector participation in housing production and facilitate multi-
sectoral interaction in shelter planning, plan review, and implementation.
15. Sustaining peace and security
From 2013 to 2016, SOCCSKSARGEN Region shall support the over-all thrust of the National
Government in winning the peace through a successful conclusion of ongoing peace processes. The peace
program of the region shall continue to be anchored on the PAMANA “Payapa at MasaganangPamayanan”
Program. The region’s development councils, as well as its peace and order councils at all levels shall serve
as mechanisms to draw broad support, increase the awareness of stakeholders about the gains of just and
lasting peace. In terms of establishing a secured environment to guarantee public safety, various forms of
interventions must be accelerated from 2013 to 2016 to attain the desired state of security for the people.
7
16. Maintaining a green and healthy environment
The environment sector shall take a proactive stance to provide a stable and predictable environment that
would enable communities and enterprises to carry out their production and consumption with minimum
risk and uncertainty. Protection land use shall be accorded high priority not only to National Integrated
Protected Areas (NIPAS) but also to Non-NIPAS areas such as coastal and freshwater wetlands, second
growth forest reserves, easements along waterways and shorelines, bird sanctuaries, and ecotourism sites.
Intensive implementation of the National Greening Program (NGP) shall be pursued, in close coordination
with LGUs and concerned regional line agencies, for a more efficient and effective convergence of efforts
and resources. To address the problems confronting the environment, it is not only important that
environmental laws are passed. Equally important would be the enforcement of such laws. Structural
mechanisms to this effect will be put in place.
8
CHAPTER 2
INCLUSIVE GROWTH AND POVERTY REDUCTION
I. Assessment
A. Economic Performance
1. Gross Regional Domestic Product
The GRDP measures the contribution of all sectors – agriculture, industry, and services – to total regional
economic output and growth. For the period 2010 to 2012, the GRDP grew at an average annual rate of
5.2%. This is almost the same level with the target of 5.0% in 2011 and 5.3% in 2012.
Over the years, the GRDP in the region posted increasing trends and recorded a shift in the structure from
predominantly agriculture to service and industry.
TABLE 2.1 GROSS REGIONAL DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN
GROWTH RATES, AT CONSTANT 2000 PRICES, 2010-2012
INDICATOR
ACTUAL TARGET
2010 2011 2012 AAGR (%) 2011 2012
Gross Regional Domestic
Product Growth Rate (%)
2.2 5.3 8.1 5.2 5.0 5.3
- Agriculture, Hunting, Fishery
and Forestry (AHFF)
0.4 1.8 5.4 2.5 4.6 4.9
- Industry Sector 3.0 10.0 10.8 7.9 5.4 5.7
- Service Sector 3.1 4.3 8.1 5.2 5.1 5.4
Source of data: NSCB
The Services sector contributed the biggest share to total GRDP at an average of 37.3% from 2010 to 2012.
The sector posted a growth rate of 8.1% in 2012, from only 4.3% in 2011 and 3.1% in 2010. Almost all of
its subsectors also posted accelerated growths. Financial Intermediation and Real Estate, Renting and
Business Activities are the high sources of growth in 2012 for the sector, followed by Trade and Repair of
Motor Vehicles, Motorcycles, Personal and Household Goods and Transport, Storage and Communication.
The Industry sector sustained high growths of 10% and 10.8% in 2011 and 2012, respectively. Its share to
total GRDP also improved from 30.5% in 2010 to 33.0% in 2012. Its sources of growth came from
manufacturing and construction activities in the region. A turnaround was noted in construction as this
recovered from negative growth in 2011.
The share of Agriculture, Hunting, Forestry and Fishery (AHFF) was 29.9% in 2012, a decline from its
contribution of 31.7% to the regional output in 2010. In 2012, the sector grew faster at 5.4% from 1.8% in
2011. Fishing, which comprised 5.2% share of the region’s AHFF, recorded a remarkable increase of 16.8%
in 2012 from a negative 11.5% in 2011. The lustrous performance was attributed to the increase in
commercial fish production due to the lifting of the fishing ban for tuna in the deep seas of Indonesia, Papua
New Guinea and Micronesia which are the main fishing grounds of Philippine’s commercial fishing.
In 2012, the region’s GRDP ranked third among the Mindanao regions in terms of its contribution to the
total Mindanao output. The largest shares came from Regions X and XI.
9
2. Prices
Inflation rate in the region was estimated at 4.4% in 2010 and 4.6% in 2011. This went down to 2.6% in
2012. By commodity group, the highest inflation rate in 2012 was recorded for alcoholic beverages and
tobacco and housing, water, electricity, gas and other fuels at 4.4%. Ranked second was health with
inflation rate of 4.1%, followed by education 3.8%.
3. Investments and Exports
The level of investments consistently increased, from PhP1.93 billion in 2010 to PhP6.30 billion in 2012,
registering a high annual average growth rate of 82.1%. Increases were attributed to the new commercial
and industrial establishments, small and medium enterprises (SMEs) through investment missions, business
matching, business name registration, investment facilitation, and the conduct of information and
communication technology (ICT) activities.
Exports value was recorded at US$610.40 million in 2010 to US$410.18 million in 2012, registering a
decline of about 32%.
4. Average Family Income
The average Annual Family Income (at current prices) in the region increased by about PhP40,000.00, from
PhP114,000.00 in 2006 to PhP154,000.00 in 2009. The 2009 figure is PhP52,000.00 lower than the average
annual family income of PhP206,000.00 at the national level.
5. Poverty Threshold
In 2012, the annual per capita poverty threshold in Region XII was estimated at PhP18,737.00. This was
higher by PhP2,332.00 compared with the 2009 poverty threshold. Cotabato City posted the highest poverty
threshold at PhP20,568.00, while Sultan Kudarat Province had the least at PhP17,597.00. In the region, a
family of five would be needing PhP93,685 a year (or PhP7,807.08 per month) for their food and other
basic requirements.
TABLE 2.2 ANNUAL PER CAPITA POVERTY THRESHOLD AND POVERTY INCIDENCE BY
AREA, 2006, 2009 AND 2012
AREA
ANNUAL PER CAPITA POVERTY
THRESHOLD (IN PESOS)
POVERTY INCIDENCE AMONG
FAMILIES (%)
2006 2009 2012 2006 2009 2012
REGION XII 13,319 16,405 18,737 31.2 30.8 37.1
Cotabato
Province
12,077 14,862 18,340 25.6 23.4 44.8
Sarangani 13,059 16,053 18,640 41.7 47.5 46.0
South
Cotabato
13,889 17,141, 19,847 26.1 25.7 25.8
Sultan
Kudarat
13,766 16,965 17,597 44.3 41.6 40.4
Cotabato City 14,629 18,103 20,568 27.5 29.9 34.5
Source of data: NSCB XII
6. Poverty Incidence
While the average family income increased based on the Family Income and Expenditure Survey, poverty
incidence among families in 2012 was estimated at 37.1% or an increase of 6.3 percentage points from the
2009 estimate of 30.8%.
The target of the region of halving the poverty incidence of 40.7% by 2015 based on the Millennium
Development Goals has a very low probability of attainment given the increasing record from 2009 to 2012.
10
7. Livelihood and Employment
a. Employment, Unemployment and Underemployment
While the number of population 15 years and over showed a decline in 2012, the labor force participation
rate increased from 64.4% in 2010 to 67.2% in 2012. The unemployment rate also increased to 4.0% in
2012 from 3.7% in 2010.
TABLE 2.3 LABOR AND EMPLOYMENT INDICATORS, 2010-2012, REGION XII
INDICATOR 2010 2011 2012 AVERAGE
Population 15 years and over (‘000) 2,601 2,678 2,648 2,642
Labor Force Participation Rate (%) 64.4 67.5 67.2 66.8
Employment Rate (%) 96.3 96.3 96.0 96.2
Unemployment Rate (%) 3.7 3.7 4.0 3.8
Underemployment Rate (%) 18.0 17.5 22.1 19.2
Source of data: NSO XII
A major concern facing the region is the rising rate of underemployment which sharply increased to 22.1%
in 2012 from 18.0% in 2010. The number of underemployed persons increased by around 87,000, from
290,000 in 2010 to 377,000 in 2012.
b. Labor Productivity
Regional labor productivity estimated by the gross regional domestic product (GRDP) over the employed
persons posted increasing trend from PhP93,578.00 in 2010 to PhP102,415.00 in 2012. Labor productivity
in 2012 was 8.1 percent higher than the 2011 record of PhP94,715.00.
Labor productivity nationwide was estimated at PhP167,864.00 posting an increase of 5.7 percent from
2011 estimate of PhP158,878.00.
c. Livelihood and Employment Opportunities
The provision of livelihood and employment opportunities, particularly for vulnerable groups was
intensified. Livelihood and microfinance assistance sustained sources of income particularly for self-
employed individuals. However, these were not enough as the employment levels fluctuated and
underemployment swelled in the past three years. The influx of skills not needed by the industries also
contributed to unemployment and underemployment, indicating that the job mismatch problem was not
fully addressed.
B. Fiscal Reforms
1. Local Income
Total real property tax (RPT) collection in 2011 increased by about 39%, but collections dropped by
17 %, in 2012. The highest amount of collection in 2012 was attained by South Cotabato, followed by
General Santos City. However, higher increase in collection between 2011 and 2012 was recorded for
Sultan Kudarat, followed by Tacurong City. All other LGUs posted declining collection during the said
periods.
TABLE 2.4 TAX AND INTERNAL REVENUE COLLECTION, 2010-2012, REGION XII
Source of data: DOF-BLGF XII
INDICATOR 2010 2011 2012
Real Property Tax Collection (PhP Million) 636.669 885.997 732.772
Local Revenue Tax Collection (Business Taxes, Fees
and Charges, and Economic Enterprise (PhP Million)
1,221.17 1,345.78 1,604.84
Internal Revenue Collection (PhP Million) 3,774.039 4,420.94 5,244.319
11
For local revenue collection, General Santos City and Cotabato Province led in the amount collected in
2012. In terms of growth in collection from 2011 to 2012, South Cotabato increased by 26.7%, Tacurong
City by 13.1%, Cotabato Province by 11.8%, General Santos City by 11.5%, and Koronadal City by 5.3%.
Other LGUs recorded a declining trend in local revenue collection.
2. Internal Revenue Tax
Internal revenue collection increased by 17.1% from PhP3.77 billion in 2010 to PhP4.42 billion in 2011.
The collection further increased by 18.6% in 2012, with the total collection reaching PhP5.24 Billion.
3. Internal Revenue Allotment
In 2011, the total amount of IRA for LGUs in the region reached PhP10.727 million, but decreased to
PhP10.091.89 million in 2012 or by about 6.0%.
II. Development Challenges
The regional economy posted positive growths between 2010 and 2012, but majority of its people continued
to be confronted by inadequate access to productive and decent employment. This inadequacy further
resulted to rising underemployment and lower income levels, thus contributing to high poverty incidence of
37.5% in the first semester of 2012.
While the fiscal sector of the region performed well from 2010 to 2012, the sector experienced declining
collection of real property tax during the period. The problem is attributed to the inability of LGUs to
maximize their revenue-generating capacities, while some are not updating their local revenue codes.
III. Development Goals and Strategic Outcomes
A. Stable macroeconomy achieved
Sustaining High Economic Growth
Regional economic growth as measured by the gross regional domestic product (GRDP) is targeted to be
sustained within the range of 8% to 10% until 2016.
TABLE 2.5 GRDP GROWTH TARGETS, 2011-2016, REGION XII
Indicator
Actual Target
2012
2013 2014 2015 2016
Low High Low High Low High Low High
Gross Regional Domestic Product
(GRDP)
8.1 7.5 8.8 8.2 9.2 8.3 9.3 9.1 10.1
- Agriculture, Hunting, Fishery
and Forestry
5.4 4.0 5.0 4.0 5.0 4.0 5.0 4.0 5.0
- Industry 10.8 10.0 11.0 11.0 12.0 11.0 12.0 12.0 13.0
- Service 8.1 8.0 10.0 9.0 10.0 9.0 10.0 10.0 11.0
Average per capita GRDP of
PhP52,000 to PhP54,000 by 2016
PhP40,043 45,050 45,620 48,750 49,830 50,460 52,060 52,330 54,480
Achieved a low and stable inflation
rate of below 5%
2.6 Below 5.0%
Source of data: NSCB XII
The region is optimistic that the economy can sustain its growth and the sources of expansion will mainly
come from the following:
12
1. Maintaining Growth Rates in Agriculture, Hunting, Fishery and Forestry, within 4% to
5%
a. Increase palay production with the support of irrigation development, use of high yielding varieties,
utilization of new production technologies, and proper post harvest management.
b. Expand commercial crop export base, such as corn, pineapple, banana, coffee, coconut, sugarcane, oil
palm, and rubber.
c. Expand the aquaculture farming areas for crabs, tilapia, bangus and prawn products in the provinces of
Sultan Kudarat and Sarangani and in Cotabato City.
d. Reduce the underlying risks to food security and advocate the adoption of appropriate technologies as a
support to stabilize economic growth.
e. Pursue reforestation activities in different areas of the region to supplement the outputs of the
agriculture, fishery, and forestry.
2. Sustaining Higher Growth Rates in Industry within 10% to 13%
a. Increase processing activities for the major export winners of the region:
 Tuna/Bangus/Prawn processing and canning/packaging in General Santos City and Sarangani;
 Pineapple (DOLE Philippines), coconut, asparagus, coffee and banana;
 Rubber processing in Cotabato Province; and
 Other agri-processing activities in South Cotabato (Kablon Farm Corporation, Pioneer Hybrid
Seeds, Bioseed) and in Sultan Kudarat (Kenram Industrial Development, Inc. and sugarcane/
muscovado).
b. Promote responsible mining activities in the region.
c. Increase construction activities particularly in power generation facilities, transportation (roads and
bridges), flood control, irrigation, water supply, school and health facilities, commercial and housing
facilities.
d. Promote/Develop micro, small and medium enterprises (MSMEs) that directly contribute to
agriculture, fishery, forestry, and service industries.
e. Diversion routes are also recommended to decongest traffic in the main roads.
f. Operationalize power plants and transmission lines and increase electrification coverage up to the
household level.
3. Increasing Growth Rates in Services within the range of 8% to 11%
a. Increase activities in transportation, communication and government services.
b. Strengthen trading, finance, tourism, ICT/BPO activities, real estate and public administration.
 Tourism services shall be improved considering the rich tourism potentials of the region, such as:
Mt. Apo in Cotabato Province; Lake Sebu, in South Cotabato; the presence of caves, waterfalls,
rivers and the conduct of several festivals celebrated in the different areas of the region.
c. Promote, push and enhance business climate, particularly in the urban centers of the region.
4. Stabilizing inflation rates
a. Maintain an inflation rate of not more than 5% within the plan period. Regular price monitoring shall be
implemented to avoid irrational price mark-ups by the unscrupulous business traders. Commodity flow
shall be unhampered to allow a continuing stream of supply in the region.
13
Equalized Development Opportunities
5. Meeting the MDG Poverty Reduction Targets by 2015
a. Support job generation activities which could provide higher and more stable sources of income
particularly for the vulnerable sectors.
b. Take advantage of the expected growth in the regional economy during the plan period where greater
number of jobs is expected to be created, provide access to productive employment to ensure adequate
income, which in turn could lead to a reduction of poverty levels in the region.
c. Reducing Poverty Incidence to 23.4%.
The poverty incidence of population in the region is targeted to be reduced from 46.8% in 2000 to 23.4% by
2015, while the poverty incidence among families will decrease from 40.7% in 2000 to 20.4% in 2015.
These targets are consistent with the Millennium Development Goals (MDG) target of halving the
proportion of people living in extreme poverty between 1990 and 2015.
TABLE 2.6 POVERTY TARGETS IN 2015, REGION XII
INDICATOR
ACTUAL TARGET
2000 2009 2012 2015
Poverty Incidence of Population 46.8 38.9 45.8 23.4
Poverty Incidence of Families 40.7 31.1 37.5 20.4
Source of data: NSCB XII
6. Providing Livelihood and Employment
Employment rate is targeted to hit 96.4% and underemployment rate is targeted to be reduced between 15 to
18% by the end of the plan period.
a. Increase economic activities that can contribute to job generation in the Agriculture, Hunting, Fishery
and Forestry sector, as well as in the Industry and Services sectors shall be pursued.
b. Expand skills training for out-of-school youth and jobless individuals provided by government
agencies and local government units and pursue the introduction of new livelihood skills to low income
families for additional sources of income.
c. Educational institutions to undertake job matching programs, considering the courses being offered by
these institutions and the forecasted skill/job requirements of industries in the region.
TABLE 2.7 EMPLOYMENT TARGETS, 2013-2016, REGION XII
Indicator
Actual Targets
2012 2013 2014 2015 2016
Employment Rate (%) 96.0 96.4 96.6 96.8 97
Unemployment Rate (%) 4.0 3.6 3.4 3.2 3.0
Underemployment Rate (%) 22.1 20.0 18.0 17.5 15.0
Source of data: NSO
d. Promote the creation of relevant jobs through livelihood and micro financing and to create relevant and
quality employment opportunities.
14
e. Support self-employment and entrepreneurship development programs. Livelihood convergence
models shall be developed. The LGUs, NGOs and cooperatives shall be oriented on accessing funds for
microenterprise development.
f. Intensify, reorient and develop relevant technical programs that would expand the beneficiaries covered
by the livelihood and employment generating activities.
7. Managing the Population Growth Rate
The region posted an average annual population growth rate of 2.46% from 2000 to 2010 which is higher
than the national rate of 1.90%. The population is expected to double in 2036 or about 25 years from 2011.
Utilizing medium growth population assumptions, the region is expected to achieve a lower population
growth of 2.06% by 2016. To influence lowering population growth, there is a need to intensify the
implementation of programs and projects that focus on responsible parenthood, family health, and other
health-related programs, including advocacy on acceptable reproductive health measures.
B. Stable fiscal management attained
1. Increasing local income
Revenue generation efforts shall be strengthened following the pronouncement of the President on “no
imposition of higher taxes or introduction of new taxes.” Reforms shall be geared towards addressing the
issues on smuggling and tax evasion of high profile taxpayers, thereby increasing revenue collection.
Policy reforms on maximizing and judicious utilization of resources to generate savings and income, and
the review of government expenditures vis-à-vis revenue collection with an end view of lowering yearly
budget deficit shall be pursued.
Revenue collection shall be strengthened by implementing the provisions in the Local Revenue Code on the
allowable percentage increase to real property taxes every three years. LGUs are enjoined to undertake
regular updating of their local revenue code to incorporate the allowable increase in the general revision.
Tax mapping shall be intensified to cover business establishments. Tax maps database shall be periodically
updated. LGUs must pursue zoning or reclassification based on the land use plan to get the right value of
real property tax.
LGUs are also encouraged to formulate and/or update their own revenue codes (economic enterprise code,
cemetery code, and slaughterhouse code, market code) to generate local revenues.
Real Property Tax Collection is expected to increase by 6% annually, while local revenue collection to
increase by 8% annually from 2013 until the end of the plan period.
TABLE 2.8 TAX AND INTERNAL REVENUE COLLECTION TARGETS
2013-2016, REGION XII
Source of data: BIR RR 18, BLGF XII, LGUs
INDICATOR
2012
ACTUAL
TARGETS (IN MILLION PESOS)
2013 2014 2015 2016
Real Property Tax Collection 732.772 806 887 975 1,073
Local Revenue Tax Collection
(Business Taxes, Fees and Charges,
and Economic Enterprise
1,604.84 1,830 2,086 2,378 2,711
Internal Revenue Collection 5,244.319 6,136 7,179 8,399 9,827
15
2. Intensifying collection of Internal Revenue Tax
Information drive, official receipts issuance campaign through tax mapping, close monitoring on tax
compliance, “Oplan Kandado”, support to Project RIP, intensify campaign against tax evaders through
“Run After Tax Evader (RATE)” and other activities aimed at increasing internal tax collection shall be
continuously intensified during the plan period. Strict monitoring of taxes due from professional services
shall likewise be sustained. The review of yearly goals to deduct transfer-out accounts and those with
centralized remittances including those of the multinational corporations which directly remit to Large
Taxpayer Division in Manila shall be adopted in the region.
Other strategies to be pursued to address the challenge of low revenue collection:
 Promotion of delivery of fast, efficient and courteous service to taxpayers as well as institute a system
for measuring the level of taxpayer satisfaction with BIR services thru the “Handang Maglingkod
Project”.
 Provision of income tax holidays during special occasions and tax amnesty.
 Support to rationalization of tax performance based incentive and sustaining the same to invite more
investors to conduct business in the country. This includes conduct of information campaign on the tax
incentives implemented applicable to business enterprises and other type of taxpayers.
 Intensification and strengthening of the implementation of the Joint Memorandum Circular # 1, series
of 2007, particularly the sound, efficient and effective management and utilization of government
resources; and the l mobilization of LGU resources through different strategies in revenue generation.
 Simplification of taxation system by coming up with a simplified taxation system in accounting the tax
due for business sector. This will facilitate and encourage easy filing of taxes due. On gross sales tax
receipt, computation of taxes shall be based on gross profit margin rather than on gross sales. The
increase of prices of goods due to the level of inflation rate will also increase the total gross sales but
not the gross profit margin.
3. Reducing dependency on the Internal Revenue Allotment
The high dependency on Internal Revenue Allotment (IRA) share by most LGUs in the region shall be
addressed during the plan period. There shall be a conduct of policy review or revisit of the formula used
in the allocation of IRA share by lowering the percent share allocation on population.
Following the MDG goal, the region shall strive to lower the IRA dependency of the LGUs from its CY
2011 level of 82.0% starting 2013 to 2016.
16
CHAPTER 3
COMPETITIVE INDUSTRY AND SERVICES SECTOR
I. Assessment
A. Investments, MSMEs and Exports
Investments. Regional investments posted fluctuating trends with a high level at P6.49 billion in 2008.
Investments started to drop in 2009 and reached its lowest level at PhP1.93 billion in 2010. By 2011, it
started to recover and eventually reached PhP6.30 billion in 2012.
MSMEs. Among the sources of growth for the region in 2010 to 2012 are multinational companies and
various potential and emerging micro small and medium enterprises (MSMEs) that contributed to the
increased levels of investments reaching a total of 8,013 MSMEs assisted. The assistance provided to the
MSMEs or emerging firms are technology transfer and commercialization, testing and calibration services,
technical trainings, packaging and labelling, market linkaging and consultancy services. Among the
industry clusters assisted are information and communication technology, food, fishery, rubber and mining.
These MSMEs generated a total of PhP1,865.043 million domestic sales by penetrating or linking to 86 new
markets and providing a total of 27,626 jobs in the region.
The top five MSMEs assisted are tourism related enterprises (25%), Information and Communication
Technology-Business Process Outsourcing (ICT-BPO) (12%), bamboo entrepreneurs (11%), and banana
and tuna entrepreneurs (8%).
Exports. The trend in regional exports is also fluctuating but posted sustained increases in recent years.
From a level of US$584.88 million in 2009, it decreased to US$544.14 million in 2009 and sustained an
increasing trend in 2010 up to 2012 reaching a level of US$884.19 million. However, regional exports
were less diversified since the region’s leading export products continue to be largely traditional. Most of
the export products are canned tuna which posted the highest share at 29% (US$333.014 million), canned
pineapple at 23% (US$265.035 million), and crude coconut oil at 20% (US$223.06 million) of the total
exports value.
TABLE 3.1 REGIONAL INVESTMENTS AND EXPORTS
INDICATORS 2008 2009 2010 2011 2012
Investments
(In Billion Pesos)
1 6.49 2.28 1.93 3.96 6.30
Export earnings
(In Million Dollars)
2 584.88 544.14 632.38 815.59 884.19
Source of data: 1
DTI XII, 2
BOC-General Santos
B. Industry Clusters
The SOCCSKSARGEN region is endowed with varied resources with huge potential for developing
fishery, agriculture, and forest related products. For the past years, the region focused on six (6) priority
clusters that were developed.
1. Food
a. Coffee Cluster. SOCCSKSARGEN region is blessed with the climate in which four (4) varieties of
coffee (Robusta, Arabica, Excelsa and Liberica) could thrive and has a world class demand. The region
is the number one producer of Robusta coffee in the country. The biggest market is Nestle Philippines.
The coffee farmers are now into value adding and processing.
17
Producers have developed brands for roasted and ground coffee and acquired food safety standards
from the Bureau of Food and Drugs (BFAD) allowing them to market the products at a much higher
price. The small coffee farmers are now entrepreneurs with linkage to other medium and large scale
buyers in the domestic markets.
For the past three (3) years, various investment promotion road shows were conducted to package
information on investment cost, market, programs of NGAs and NGOs and financing facilities which
resulted in the establishment of community-based coffee processing facilities in Sultan Kudarat, South
Cotabato, which generated PhP 21.86 million investments and PhP 19.135 million domestic sales.
b. Muscovado Cluster. Muscovado is one of the emerging export industries of the region. An indirect
exporter of muscovado was able to generate PhP 15.39 million investments for the establishment of a
20-ton muscovado mill in Sultan Kudarat and generated PhP 15.87 million domestic sales during the
trade fairs, investment fora, and market facilitation. There are now three (3) big muscovado mills in
Sultan Kudarat with a combined production capacity of more than 25 tons per day.
c. Banana Cluster. Banana industry in the region is considered as one of the major focus industries due to
the presence of various multinational company investors. Since 2010, the banana industry generated
PhP 350 million investments from Del Monte and RNF Industries Corporation. The region’s banana
industry has sustained its increasing demand both in foreign and domestic markets. It is also one of the
industries that has a potential to support countryside development and to contribute in the attainment of
inclusive growth. SOCCSKSARGEN region ranks as the third largest producer of Cavendish banana in
the country and the leading producer of Lakatan for domestic market consumption.
d. Mango Cluster. The mango industry of the region was able to develop one brand - the Mangolicious.
However, its investment generation for the past year was lackluster since it only captured PhP10
million investments and generated PhP3.6 million in domestic sales. Given interventions for production
up to market linkaging, the mango industry could be expected to prosper and to contribute to the
economic growth of the region.
2. Fishery
a. Tuna Cluster. The tuna industry shares 91% of the total directly impacted exports earnings of the
region for the period 2010 to 2012. It is also one of the highly investment generating clusters and the
highest earning commodity in the domestic market. The industry generated PhP92.5 million
investments and PhP84.07 million domestic sales.
b. Pangasius Cluster. The Pangasius fish is slowly penetrating the market due to its taste, availability of
supply and affordability. It is suitable for processing or cooking into various menus because its taste
and flavor are very dominant and patronized by gourmets. With the series of seminars, product
development and branding, product research and trade fairs, pangasius farmer producers were matched
and linked with companies in the region which used to import pangasius fillet. Networking with other
markets generated PhP16.074 million domestic sales for the pangasius farmer producers.
c. Bangus Cluster. The bangus cluster is another emerging industry cluster in the region. For the past
years it has generated PhP 8.363 million worth of investments and PhP 6.128 million domestic sales.
3. Coconut
Among the products largely produced in the region are coconut oil, copra and its by products and the
coconut coir. To sustain the development of the industry the Philippine Coconut Authority (PCA) XII
implemented a program involving the Indigenous Peoples (IPs) and rebel returnees. This program
involves the provision of planting materials to the IPs and rebel returnees and a cash incentive of
Twenty Pesos (PhP 20.00) per coconut seedling planted, grown and stabilized in the field. The 2013
operations involved a defined target area of 4,900 hectares, which is greater than the 2012 target of
only 620 hectares. About 100 seedlings per hectare were provided by PCA from the North Cotabato
Seed Production Center (NCSPC).
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One of the coconut products in which the region is actively marketing is the coconut coir. In 2009 the
region produced a total of 2,451 metric tons of coconut coir which is 17.4% to the total production of
the country. Unfortunately in 2010, the volume of produced baling coir decreased by 5.2% because the
two producing provinces (Sarangani and South Cotabato) experienced difficulty in the sourcing of
coconut husk due to strong competition among other local producers in nearby region and the lack of
areas where they can dry their fibers even during rainy days.
4. Wearable and Homestyle
One of the products that belong to this industry is the T’nalak cloth. T’boli women had been weaving
the native abaca (Manila hemp) cloth and dying it using centuries-old method wherein they derive
natural dyes from the kenalum and loco trees. In weaving a T’nalak cloth, the weavers dream of the
pattern and are guided by the symbols of their dreams. Weaving a 20-feet T’nalak cloth takes 75 days
to finish and is done in a solemn environment free from distraction. A mistake in the process requires
the weaver to repeat the whole process from the beginning. The T’nalak’s colors represent the qualities
of its people. Red is for bravery, commitment and love, and black for the struggles and hard beaten-era
of pioneers which developed among them a strong character and perseverance. Like the people of
South Cotabato, the T’nalak was subjected to heat and beating process to achieve flexibility and better
quality cloth. The T’nalak products bring new opportunity to indigenous women of the locality
reaching the international fashion landscape and used as decorative materials and accessories due to its
rare and exotic design.
Tinalak weaving and the production of other tinalak products such as home decorations, jewelries,
fashion accessories, beddings, blankets, bags, sandals, frames and upholstery are concentrated in the
Municipality of Lake, South Cotabato. The T’boli women known as the “dream weavers” handcrafted
these products which are marketed in the local, as well as international markets. The indigenous tinalak
cloths are also exported to European markets for gowns and for home-use by making it part of
ornamental designs.
5. Industrial Crops
a. Oil Palm Cluster. The region’s oil palm cluster sustained the increase in production as well as in sales.
Various marketing agreements were entered into by the farmer producers and the oil palm industry
processor in the region. The industry was able to generate domestic sales of PhP72 million and PhP285
million of investment. With the increasing raw material production, the Kenram Industrial
Development, Inc. (KIDI) established a 60-ton palm oil mill in Isulan, Sultan Kudarat.
b. Rubber Cluster. The cluster is actively exporting rubber processed products such as natural crumb or
sheet rubber, to Dunlop Korea and South Africa. The industry generated PhP338 million worth of
investments.
6. Furniture and Woodcraft
The potential of the bamboo cluster in the region is very high. As of the year 2012, it generated an
investment of PhP15.540 million and domestic sales of PhP8.89 million. Engineered bamboo furniture
is highly patronized in the region because of its quality and sophisticated design. However, there is no
assurance of the availability of raw materials that can accommodate bulk orders.
C. Tourism Industry
The region’s tourism industry is a potential contributor to the service sector. It links the functions of travel
agencies and tour operators with tour guides, transportation, food and accommodation facilities like hotels
and resorts, the operators of tourist destinations or attractions and the organizers of events. While tourism is
generally services in nature, it influences the upstream sector on manufacturing, like food processors for
restaurants, craft or souvenir item producers for hotels or pasalubong centers, and other related products.
The money spent by tourists in the region has multiplier effect in terms of income and jobs generated.
19
1. Tourist Arrivals and Hotel Occupancy
Most data on tourist arrivals were taken from local government units where tourism is a significant
industry. It could be noted that there is a big slump from the 2011 to 2012 due to data non-availability for
some period. To address data gaps, the Department of Tourism XII (DOT) adopted a new scheme in
measuring tourist arrivals in 2012. The procedure no longer includes day tourists or the excursionists but
only those who are booked and have stayed at least overnight in hotels.
TABLE 3.2 VISITOR ARRIVALS BY TYPE, 2010-2012
Actual Tourist Arrivals Growth Rate (%)
2009 2010 2011 2012
2009-
2010
2010-
2011
2011-
2012
AAGR
(%)
Visitor Arrivals 659,139 673,841 682,468 281,578 2.23 1.28 (58.74) (18.41)
Local Tourist 652,283 665,344 674,940 268,901 2.00 1.44 (60.16) (18.90)
Foreign Tourist 3,765 4,317 3,990 12,673 14.66 (7.57) 217.62 74.90
Overseas Filipino
Workers
3,091 4,180 3,538 4 35.23 217.62 (99.89) (26.67)
Average Hotel
Occupancy Rate
(%)
64.31 62.44 37.65 (99.89) (39.71) (21.30)
AAGR – average annual growth rate
Source of data: DOT XII
At present, there are 106 travel agencies and tour operators in the region, together with media entities and
travel bloggers, which promote the region’s destinations and attractions. In terms of transport, passengers
can have access to three (3) airline companies that provide daily flights to and from Manila, Cebu and
Iloilo. There are four (4) bus companies that ply the route from the region to Davao City and Cagayan de
Oro City. Vans, jeepneys, and other utility vehicles could be contracted to take tourists to various tourism
sites in the region. The region has also around 278 food and accommodation establishments like hotels,
resorts and apartment hotels and 298 restaurants and food outlets that offer local and international cuisine.
Of the total establishments, only 24 were given accreditation by DOT.
2. Tourist Attractions
The Department of Tourism (DOT) in the region identified main attractions for each province/city.
Cotabato Province and Kidapawan City boast of Mt. Apo as its main attraction while several falls and
mountain resorts serve as natural attractions. Sultan Kudarat’s main attraction is agri-tourism where it
showcases coffee processing, muscovado milling and palm oil processing and serving as enhancers are bird
watching, spelunking in dozens of caves and the Muslim motif of its provincial capitol. South Cotabato
banners Lake Sebu as cultural and adventure tourism with agri-tourism serving as enhancers. Sarangani
claims to be the region’s pure adventure destination with paragliding, diving, river tubing, and water sports
as its pride. General Santos City retains its being the tuna capital of the country as its main attraction.
Cotabato City has always been known for its cultural values like inaul weaving, brassware making, and the
grand mosque.
3. Existing Hotels and Restaurants
The number of hotel rooms and restaurants in a locality is a good indicator of the capacity of an area to
accommodate the influx of tourists and visitors. The overall economic growth of the region is shown in the
rapid rise in the number of hotel rooms. General Santos City posted the highest number with 1,383,
Koronadal City with 422 rooms, Kidapawan with 411 rooms, Cotabato City with 392, while Tacurong has
the least with 139 rooms.
20
D. Competitiveness in terms of Economic Dynamism
1. Business Registration
In terms of the number of annual business registrations (new and renewal), General Santos City has the
most number with 8,793 total business registrations in 2012, followed by Cotabato City with 5,919,
Koronadal City with 2,674, Kidapawan City with 2,037, and Tacurong City with 1,654.
For business registrations (New and Renewal) covering the period January 2013, Koronadal City posted
the most number of business registration with 2,554, followed by General Santos City with 2,500. Tacurong
City had the least number of business registrants with 1,225.
2. Capitalization of Newly Registered and Renewal Businesses
From January to December 2012, General Santos City recorded a total capital of PhP2,998,873,210.30 from
newly-registered businesses. Koronadal City had PhP8,285,034,305.66, representing the highest number of
total capital from new and renewal businesses for the region. This was followed by Kidapawan City with
PhP4,049,931,439.10 and Tacurong City with PhP2,253,303,753.16. Cotabato City had PhP65,244,678.43.
3. Jobs created for new registration
For 2012, the following are the number of jobs created in the cities: General Santos - 46,063; Koronadal -
5,329; Cotabato – 651; and, Kidapawan -168. Tacurong City was not able to submit. The large number of
jobs created in General Santos City can be attributed to the equally large number of establishments which
opened in the city in 2012, such as hotels and restaurants, plants and factories, malls, beach resorts, and
agriculture, as well as poultry/hog industries. For January 2013, Cotabato City posted the highest number of
new jobs created at 6,022. Kidapawan City posted the lowest at 243 new jobs. No data were provided by the
cities of General Santos and Tacurong.
4. Cost of living
The cost of living is defined as the monetary cost of maintaining a particular standard of living, usually
measured by calculating the average cost of a number of goods and services. The cost of living is
customarily measured by a price index such as the consumer price index. Measurements of change in the
cost of living are important in wage negotiations. Cost-of-living measurements are also used to compare the
cost of maintaining similar living standards in different areas.
The cost of living standard in the region is based on the prevailing inflation rate. In 2012, Cotabato City
posted the highest inflation rate among the cities in the region at 3.7%. This was followed by General
Santos City at 3.2%, Kidapawan City at 3.0%, Koronadal City at 2.7%, and Tacurong City at 2.6%.
5. Productivity
Increasing productivity can raise living standards because more real income will improve people's ability to
purchase goods and services, enjoy leisure, improve housing and education and can contribute to social and
environmental programs. Productivity growth also helps businesses to be more profitable.
Local productivity as measured by the gross sales in revenue over the number of employed persons in the
given area, the workforce in Kidapawan City recorded the highest productivity level at PhP24.106 million
sales per employee. This is followed by General Santos City with PhP1.533million sales generated out of
one employee. This is in contrast with the productivity level of an employee in Cotabato City which
generated sales of only PhP7,644.54 per employee. For the cities of Koronadal and Tacurong, the
productivity levels are more than PhP400, 000 per employee.
21
At the municipality level, the municipality of Carmen, Cotabato recorded the highest productivity level at
PhP4.18 million per employee. The municipality of Malungon, Sarangani recorded the lowest productivity
level at PhP131, 461.40 per employee.
6. Organized business groups
The operation of several establishments in the region resulted to the creation of various workers and
business organizations and associations which are industry-based or industry-related. In the key city
category, General Santos City posted a total of 153 registered organized groups in 2012. This figure is more
than triple that of Cotabato, with the second largest number of groups organized in the region with 49. The
cities of Koronadal and Kidapawan have 44 and 31 organized groups/associations registered, respectively.
Tacurong had the least number of organized groups with only 7. For the municipality level category, the
municipality of Esperanza in Sultan Kudarat posted the most number of recognized organized groups with
60, followed by T’boli in South Cotabato with 55 organized groups, and Isulan in Sultan Kudarat with 53.
The municipality of Polomolok in South Cotabato has 46 organized groups in part due to the strong
presence of Dole Philippines, Inc., a multinational corporation operating in the area for decades, making the
pineapple industry a dominant force in the local economy.
7. Economic Governance
The economic governance score in Local Governance Performance Management System (LGPMS)
provides a gauge on entrepreneurship, business and industry promotion. The LGPMS system is a self-
assessment, management and development tool that enables local governments to determine their
capabilities and limitations in the delivery of essential public services. The five cities of the region received
varied scores in LGPMS economic governance on entrepreneurship, business and industry promotion.
Tacurong City garnered the highest with 4.67, followed closely by Cotabato City with 4.61, Kidapawan
City with 4.46, and Koronadal City with 4.04. General Santos City posted the lowest score with 3.94.
Among the municipalities, Midsayap in Cotabato Province recorded the highest score at 5.0, followed by
the municipality of Surallah in South Cotabato at 4.95. Among the largest municipalities, Isulan in Sultan
Kudarat had the lowest score of 2.60. For municipalities not belonging to the 3 largest, Columbio in Sultan
Kudarat had the lowest score in economic governance at 3.4.
E. Consumer Welfare Awareness
The Department of Trade and Industry (DTI) is mandated to create a business-friendly environment
conducive for growth of enterprises and supportive of fair and robust trade in goods and services in the
region. Its mandate focuses on the promotion of consumer welfare and protection of consumer
rights. Among the assistance extended to consumers include enforcement of trade and industry laws, action
on consumer complaints, and formation of consumer groups.
Based on the result of the most recent evaluation conducted by the agency, more than 50 percent of
SOCCSKSARGEN business establishments passed the government evaluation for responsible
entrepreneurship and management consumer rights and protection awareness. The evaluation process
recognized business entities actively involved in protecting consumers’ rights and welfare.
As of September 2013, out of the 12,000 registered establishments in the region only 60 awarded the
“BAGWIS” seal as proof that they provide customer-friendly products and services. The Bagwis seal,
formerly known as the DTI Certified Establishment Program (CEP), gives recognition to exemplary
business establishments that uphold customer rights and welfare, foster ethical business practices, and
practice self-regulation. Entrepreneurs assessed under the program were evaluated based on the following
criteria: presence of consumer welfare desk or recognized customer service counter, compliance to fair
trade laws, practicing social responsibilities, and complying or aligning to International Standards.
Of the 60 awardees, four were given silver “Bagwis” seal, namely: Soc Hardware of Sarangani Province,
Ntrprising Motor Corp., Honda Cars General Santos Inc., and MTL Gensan Motors Inc.
22
II. Development Challenges
A. Low economic productivity
1.1 Low level of investments and exports
 Inadequate processing facilities that are accessible to the production sites
 Constraints brought about by development policies, as non-quantitative restrictions like
compliance to international product standards and food safety that could impede the free flow of
goods and services in the market
 Limited financial capacities of MSMEs, since they could not access, infuse and acquire
technology, establish product standards and information system, comply with local and national
quality standards).
 Regional exports that remain traditional and less diversified
1.2 Limited tourism options
 Limited tourism product packages and promotions, and tourism products/events are not packaged
that could cater to the needs of tourists.
 Underdeveloped tourist destinations
 Poor connectivity from one tourism site to another, weak or limited access to tourism sites/tourist
destinations and road networks to tourism areas are not yet developed.
B. Need to improve competitiveness of regional industry and services
The region is still behind in terms of competitiveness in industry and services compared with other regions
in the country. Only Koronadal City and the municipality of Surallah, South Cotabato were included in the
most competitive ranking in the country. In terms of economic dynamism competitiveness, the cities of
General Santos, Koronadal, and Kidapawan and the municipalities of Surallah, South Cotabato and Isulan,
Sultan Kudarat are included in the top ten.
The SOCCSKSARGEN region competitiveness will be challenged with the impending ASEAN Integration
by 2015. The region has to be prepared to meet the competitive challenges when trade barriers in the
ASEAN region are lifted to allow the free flow of goods and services. The development of potential
opportunities for the ASEAN Integration increases the vulnerabilities of the region’s products to foreign
competition and exposure to market risks. One vulnerable sector is the agribusiness industry where
productivity targets will contribute to self-sufficiency and the surplus growth for export are found wanting.
Despite the opportunities from Free Trade Agreements, the region’s producers continue to be weighed
down by the abundance of unresolved issues that competing nations have already overcome. The region
must plan to mitigate the risks posed by cheap products and services and to strengthen our competitive
advantage.
There is also a need to improve the difficult and lengthy business registration and regulation at the LGU
level which the MSMEs and other entrepreneurs have difficulty in complying.
C. Need to increase consumer welfare awareness of their rights and
responsibilities and satisfaction of quality goods and services
Of the total 12,000 various businesses registered with DTI XII, only 0.5% were able to comply and to
consider the protection and promotion of consumer welfare and awareness. This shows that the region’s
population is not fully aware of their rights and responsibilities in terms of consumer welfare.
23
III. Development Goals and Strategic Outcome
The region recognizes the primary roles of MSMEs in making the Industry and Services sectors more
competitive. To ensure the development of MSMEs and enhance their productivity, the Industry Clustering
Strategy shall continue to be adopted. This strategy is a goal-oriented cooperation of producers and
industry players to find and to respond to business opportunities not normally accessible to individual
players. It is a private sector-led and government-supported initiative that promotes private and government
collaboration.
A. Increase economic productivity
a. Increase the level of investments and exports
1. Broadening and deepening the export base and intensifying investment promotion on the establishment
and upgrading of infrastructure facilities for priority industry (processed food-banana, coffee, mango
and muscovado, fishery-tuna, pangasius and bangus, wearable and homestyle - T’nalak cloth,
processed coconut products-copra meal/cake and coconut coir, furniture-engineered bamboo and
woodcraft and mining)
2. Strengthening LGU alliances and establishing economic zones.
3. Providing assistance and support to MSMEs in the following areas:
 Access to credit and financing (e.g. LGU financing assistance, technical assistance/capability
building to MSMEs and existing cooperative to access credit/capital from financing institutions,
increase/provide additional credit windows)
 Access to available technologies and technological services to improve product quality and
competitiveness;
 Market linkages in promoting and selling their products (e.g. access/linkages to international
markets);
 Support to exporting industries and SMEs through trade negotiations, promotion and development
of products for globalization;
 Development of other emerging industry clusters/groups (e.g. processed foods like spices).
 Priority S&T interventions based on the market niches and industry clusters by providing support
to MSMEs, strengthening linkages, partnerships and networking to stakeholders.
 Support to the Halal industry to open opportunity for the region to access the continuously
growing Halal world market.
 Capability building for MSMEs and existing cooperative to become self-reliant and more
competitive (e.g. trainings on managerial/entrepreneurship skills, organizational development).
 Promotion of employment and protection of basic rights of workers and accompanied by adequate
social safety nets to protect the vulnerable workers.
b. Increase tourist arrivals
To increase tourist arrivals and to attract tourism investments, the DOT XII shall focus their
interventions on the tourism value chain specifically in developing and marketing competitive tourism
products, improving market access, connectivity and destination infrastructure and improving tourism
institutions, governance and human resource capacities as well as working collaboratively with other
government sectors in the area. Specific strategies to be implemented to the next few years are as
follows:
1. Developing and marketing competitive tourist products
 Development of diversified product portfolio linked to a strategic and prioritized destination and
strengthened road/sea tourism circuit framework
 Raising the standards of facility and services, and facilitate tourism investment especially in
accommodation and lower business costs
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UPDATED SOCCSKSARGEN Regional Development Plan, 2013-2016

  • 1. 1
  • 2. i SOCCSKSARGEN: 2013-2016 UPDATED REGIONAL DEVELOPMENT PLAN Philippine Copyright @2013 by the National Economic and Development Authority Regional Office No. XII Establishing Its Role as the Sustainable Food Center of the South
  • 3. ii SOCCSKSARGEN’s Updated Regional Development Plan (RDP) draws from the effective execution of development programs and policies in the first three years of its implementation. At the national level, the strong macroeconomic fundamentals resulted in stronger investor interest, improved competitiveness rankings, and recent investment grade status granted by credit rating agencies. However, we are mindful that the experience of growth is still not enough to make a significant impact on our poverty reduction and employment creation goals across the country. Thus, the need to purposefully consider spatial and sectoral concerns becomes the thrust of the Updated Philippine Development Plan (PDP) at the national level and the Updated RDPs at the regional level. The Regional Development Council (RDC), in crafting this plan, took stock of the accomplishments achieved and challenges encountered in the first three years of its implementation. Various stakeholders were engaged through a series of consultations to ensure that the entire process of development would be inclusive. With a renewed desire to deliver inclusive growth, this plan provides the spatial dimension to the Updated PDP by identifying region-specific resources, needs and interventions. While SOCCSKSARGEN’s Updated RDP provides the framework for local development, strategies are parallel with the national plan to ensure alignment of national and regional policies and programs. This plan is a living document that validates RDC’s commitment to achieve the region’s development goals. We hope that through this Updated RDP, development in SOCCSKSARGEN shall be appropriately guided through the prudent use of its vast natural resources and a productive partnership between government and an engaged and active citizenry. We, in NEDA, fully support the region’s desire for inclusive growth as we all strive to not leave a single Filipino lagging behind our country’s economic successes. ARSENIO M. BALISACAN Secretary of Socio-economic Planning NEDA Director-General NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY NEDA sa Pasig, Ortigas Center, Pasig City M E S S A G E
  • 4. iii The 2011-2016 SOCCSKSARGEN Regional Development Plan (RDP) was formulated to serve as the region’s blueprint to achieve its twin goals of inclusive growth and poverty reduction. The said Plan is aligned with the Philippine Development Plan (PDP) and supports the 16-Point Agenda of President Benigno S. Aquino, as well as the social contract with the Filipino People which is to stabilize the macro-economic situation by attaining a broad-based, inclusive and sustainable growth in a peaceful society. Three years after the formulation of the SOCCSKSARGEN RDP, the sectoral committees of the Regional Development Council (RDC) XII which served as the planning committees revisited the Plan to track the region’s achievement of its targets. The Updated RDP focused on the assessment on the extent of its attainment of the targets, identified the developmental challenges that need to be addressed, adopted relevant strategies, and revised targets as maybe necessary. A new feature of the Updated RDP is the inclusion of the revalidated Regional Results Matrix (RRM) for each chapter of the Plan. The RRM includes statements of objectives with matching indicator framework for the various levels of results to be achieved in the RDP. The RRM also serves as a guide in the programming, prioritization of programs and projects, and budgeting process of various implementing agencies. Anchored on results-based management, the RRM shifts the focus from input-output monitoring to an emphasis on the achievements of outcomes and impact prioritized in the Plan. The updated RDP is crafted after a series of thorough and arduous workshops and consultations with various stakeholders in the region. On and in behalf of the NEDA Regional Office XII, I wish to convey my deepest gratitude and appreciation to all individuals and entities who contributed in the updating of the Plan. Together we shall work towards realizing higher growth for the region’s economy and its people. Move on SOCCSKSARGEN! ARTURO G. VALERO, Ph.D. Acting Chairperson, RDC XII and Regional Director, NEDA XII National Economic and Development Authority XII REGIONAL DEVELOPMENT COUNCIL XII Koronadal City P R E F A C E
  • 5. iv
  • 6. v
  • 7. vi Table of Contents Title Page Message ii Preface iii RDC XII Resolution No. 65, Series of 2013 iv SOCCSKSARGEN Region Administrative Map v List of Tables xi List of Figures xiv Acronyms xv CHAPTER 1: REGIONAL DEVELOPMENT FRAMEWORK 1 I. Vision of Development 1 II. Comparative Advantages 1 III. Development Challenges 2 IV. Development Goal and Strategic Outcomes 2 CHAPTER 2: INCLUSIVE GROWTH AND POVERTY REDUCTION 8 I. Assessment 8 A. Economic Performance 8 1. Gross Regional Domestic Product 8 2. Prices 9 3. Investments and Exports 9 4. Average Family Income 9 5. Poverty and Food Threshold 9 6. Poverty Incidence 9 7. Livelihood and Employment 10 B. Fiscal Reforms 10 1. Local Income 10 2. Internal Revenue Tax 11 3. Internal Revenue Allotment 11 II. Development Challenges 11 III. Development Goals and Strategic Outcomes 11 A. Stable macroeconomy achieved 11 1. Maintaining Growth Rates in Agriculture, Hunting, Fishery and Forestry 12 2. Sustain Higher Growth Rates in Industry 12 3. Increase Growth Rates in Services 12 4. Stabilizing inflation rates 12 5. Meeting the MDG Poverty Reduction Targets by 2015 13 6. Providing Livelihood and Employment 13 7. Management of Population Growth Rate 14 B. Stable fiscal management attained 14 1. Increasing local income 14 2. Intensifying collection of Internal Revenue Tax 14
  • 8. vii Title Page 3. Reducing dependency on Internal Revenue Allotment 15 CHAPTER 3 COMPETITIVE INDUSTRY AND SERVICES SECTOR 16 I. Assessment 16 A. Investments, MSMEs and Exports 16 B. Industry Clusters 16 C. Tourism Industry 18 D. Competitiveness in terms of Economic Dynamism 20 E. Consumer Welfare Awareness 21 II. Development Challenges 22 A. Low economic productivity 22 B. Need to improve competitiveness of regional industry and services 22 C. Need to increase consumer welfare awareness of their rights and responsibilities and satisfaction of quality goods and services 22 III. Development Goals and Strategic Outcomes 23 A. Increase economic productivity 23 a. Increase the level of investments and exports 23 b. Increase tourist arrivals 23 B. Improve competitiveness of regional industry and services 26 C. Enhance the level of consumer welfare awareness of their rights and responsibilities and satisfaction of quality goods and services 26 IV. Plan Targets 26 CHAPTER 4: COMPETITIVE AND SUSTAINABLE AGRICULTURE AND FISHERY SECTOR 31 I. Assessment 31 A. Contribution to Rapid and Sustained Growth 31 II. Developmental Challenges 36 A. Low productivity and production in agriculture and fishery sector 36 III. Development Goal and Strategic Outcome 39 A. Increase productivity and production in agriculture and fishery sector towards the attainment of food security 39 IV. Plan Targets 41 CHAPTER 5: ACCELERATING INFRASTRUCTURE DEVELOPMENT 46 I. Assessment 46 A. Integrated and effective transport system 46 1. Land transportation 46 a. Roads and bridges 46 b. Motor vehicle registration 47 2. Port development 50 3. Airport development 51
  • 9. viii Title Page B. Efficient water resource management 51 1. Irrigation 51 2. Water supply 52 3. Flood control 53 C. Adequate and reliable energy supply 55 D. Effective communications and information management system 56 E. Adequate social infrastructure 56 F. Kilos Abante Priority Programs/ Projects 57 II. Development Challenges 58 III. Development Goal and Strategic Outcome 60 A. Integrated and effective transport system towards improved mobility and accessibility 60 B. Water security 61 C. Adequate and reliable energy supply for socio-economic and institutional development 61 D. Effective communications and information management system 62 E. Adequate social infrastructure 62 F. Priority programs/ projects 62 CHAPTER 6: TOWARDS A RESILIENT AND INCLUSIVE FINANCIAL SYSTEM 65 I. Assessment 65 II. Development Challenge 66 III. Development Goal and Strategic Outcome 66 IV. Plan Targets 66 CHAPTER 7: GOOD GOVERNANCE AND THE RULE OF LAW 67 I. Assessment 67 A. Good Governance 67 B. Strengthening of Justice System 77 C. Jail Management 80 II. Development Challenges 81 III. Development Goals and Strategic Outcome 81 A. Promote Effective and Transparent Governance 81 B. Enhance Access to Justice System 86 CHAPTER 8: SOCIAL DEVELOPMENT 89 I. Assessment 89 A. Health Care, Nutrition and Sanitation 89 B. Education and Training and Globally Competitive Human Resources 91 C. Technical-Vocational Education and Training 92 D. Higher Education 92
  • 10. ix Title Page E. Promoting Strong and Effective Social Protection Services 93 F. Adequate and Safe Housing 94 II. Development Challenges 95 A. Health Care, Nutrition and Sanitation 95 B. Education and Training and Globally Competitive Human Resources 96 C. Technical-Vocational Education and Training and Higher Education 96 D. Promoting Strong and Effective Social Protection Services 96 F. Adequate and Safe Housing 96 III. Strategies 97 A. Health Care, Nutrition and Sanitation 97 B. Education and Training and Globally Competitive Human Resources 97 C. Technical-Vocational Education and Training and Higher Education 97 D. Promoting Strong and Effective Social Protection Services 98 E. Adequate and Safe Housing 98 IV. Plan Targets 99 A. Health Care, Nutrition and Sanitation 99 B. Education and Training and Globally Competitive Human Resources 99 C. Technical-Vocational Education and Training and Higher Education 100 D. Promoting Strong and Effective Social Protection Services 101 E. Adequate and Safe Housing 101 CHAPTER 9: PEACE AND SECURITY 102 I. Assessment 102 A. Improved Peace and Order 102 1. Crime prevention 102 2. Anti-Illegal Drugs Campaign 105 3. Internal Security 105 B. Improved Public Safety 107 C. Sustained peace and development 108 II. Development Challenges 109 A. Slow-paced rehabilitation and development of conflict-affected areas 109 B. Vulnerability to security threats 109 C. Incidence of criminal activities 109 D. Inadequate capability for ensuring public safety 109 III. Development Goals and Strategic Outcomes 109 A. Accelerate development in conflict-affected areas 109 B. Reduce vulnerability to security threats 110 C. Acquire manpower, logistical and capacity building 111 D. Ensure public safety 112
  • 11. x Title Page CHAPTER 10: CONSERVATION, PROTECTION AND REHABILITATION OF THE ENVIRONMENT AND NATURAL RESOURCES 113 I. Assessment 113 A. Rehabilitation, Protection and Conservation of Ecosystem 113 B. Improvement of the environmental quality for a cleaner and healthier environment 115 II. Development Challenges 116 A. Environmental Degradation 116 III. Development Goals and Strategic Outcomes 117 A. Natural resources conserved, protected and rehabilitated 117 B. Environmental quality for a cleaner and healthier environment improved 119 C. Improved capacities of human communities to natural disasters 120 PLAN IMPLEMENTATION AND MONITORING 122 DIRECTORY OF THE REGIONAL DEVELOPMENT COUNCIL XII, 2013-2016 124 RDC XII PLANNING COMMITTEES FOR THE FORMULATION OF UPDATED SOCCSKSARGEN RDP, 2013-2016 125 RDC XII SECRETARIAT / NEDA REGIONAL OFFICE XII 126
  • 12. xi List of Tables Table No. Title 2.1 Gross Regional Domestic Product By Industrial Origin Growth Rates, At Constant 2000 Prices, 2010-2012 2.2 Annual Per Capita Poverty Threshold and Poverty Incidence By Area, 2006, 2009 and 2012 2.3 Labor and Employment Indicators, 2010-2012, Region XII 2.4 Tax and Internal Revenue Collection, 2010-2012, Region XII 2.5 GRDP Growth Targets, 2011-2016, Region XII 2.6 Poverty Targets In 2015, Region XII 2.7 Employment Targets, 2013-2016, Region XII 2.8 Tax and Internal Revenue Collection Targets 2013-2016, Region XII 3.1 Regional Investments and Exports 3.2 Visitor Arrivals By Type, 2010-2012 3.3 Investments and Exports Target, 2013-2016 3.4 MSMEs Indicators and Targets, 2013-2016 3.5 Hotel Occupancy Rate By Area, 2013-2016 3.6 Visitor Arrivals Target By Type and Area, 2013-2016 3.7 Science and Technology Indicators and Targets, 2013-2016 3.8 Indicators and Targets of the Mining Industry, 2013-2016 3.9 Cooperative Development Targets, 2013-2016 4.1 Rice Self-Sufficiency Ratio, 2009-2012 4.2 Existing Areas with Irrigation Facilities, 2009-2012 4.3 Palay Productivity, 2009-2012 4.4 Corn Productivity, 2009-2012 4.5 Productivity of High Value Commercial Crops, 2009-2012 4.6 Land and Land Rights Indicators, 2010-2013 4.7 Productivity Cereal Crop Production in Mindanao 4.8 Productivity of HVCC in Mindanao (in MT/Ha) 4.9 Production Level in Fishery Sector in Mindanao (in Metric Tons) 4.10 Production Level in Livestock and Poultry Sector In Mindanao (‘000 MT/Live Weight) 4.11 Existing Irrigated Areas and Targets (In Hectares), 2013-2016 4.12 Cereal Crops Existing Production Level and Targets (In MT), 2013-2016 4.13 Cereal Crops Existing Area Harvested and Targets (in Hectares), 2013-2016 4.14 Cereal Crops Existing Production Level and Targets (in MT), 2013-2016 4.15 Cereal Crops Existing Area Harvested and Targets (in Hectares), 2013-2016 4.16 Existing Crop Production Level and Targets For HVCC, 2013-2016 4.17 Livestock and Poultry Production Levels and Targets (MT of Live Weight), 2013- 2016
  • 13. xii List of Tables Table No. Title 4.18 Fishery Production Levels and Targets (in MT), 2013-2016 4.19 Land and Land Rights Targets, 2013-2016 5.1 Roads and Bridges, 2010-2012 5.2 Status of Road Projects Implemented, 2012 5.3 Port Development, 2010-2012 5.4 Airport Development, 2010-2012 5.5 Irrigation Facilities, 2012 5.6 Major Programs/ Projects Implemented 2012 5.7 Water Supply Projects, 2010-2012 5.8 Flood Control Projects Implemented, 2012 5.9 Energy Supply, 2010-2012 5.10 Information and Communications Facilities, 2010-2012 5.11 Public School Classrooms Constructed, 2010-2012 5.12 NHA Housing Production, 2010-2012 5.13 Housing Indicators (Infra Component), 2010-2012 5.14 Roads and Bridges Targets, 2014-2016 5.15 Target Areas for Irrigation, 2014-2016 5.16 Number of Classroom Targets, 2014-2016 5.17 NHA Housing Production Targets, 2013-2016 6.1 Banking Institutions in Region XII, 2012 6.2 Number of Municipalities Without Banks, By Province, 2012 6.3 Loan Portfolio and Deposit Liabilities, Region XII, 2010-2012 6.4 Banking and Financial System Targets, Region XII, 2013–2016 7.1 Status of Transfer of Regional Agencies to Koronadal City, Region XII, 2010-2012 7.2 Proficiency Examinations Conducted, 2010-2012 7.3 Anti-Red Tape Act Implementation, 2010-2012 7.4 Plan and Policy Formulation, 2010-2012 7.5 Performance of the Region In Terms of Overall Performance Indicator, 2009-2011 7.6 Performance of Province / City In Terms of Overall Performance Indicator, 2009- 2011 7.7 Improving Local Governance and Local Special Bodies, 2010-2012 7.8 Formulation of DRR/CCA-enhanced PDPFPs 7.9 Technical Assistance on the Formulation of DRR/CCA-enhanced PDPFPs, 2010-2012 7.10 Level of Disaster Preparedness to Flood, 2012 7.11 Status of Roll-Out to Barangay on DRRM/CCA, 2012 7.12 Judicial and Quasi-Judicial Representations, Region XII, 2010-2012 7.13 Other Services Rendered, Region XII, 2010-2012
  • 14. xiii List of Tables Table No. Title 7.14 Inventory of Courts and Dockets, Region XII, 2012 7.15 3-Pronged Harmonized Rehabilitation Program, Region XII, 2011-2012 7.16 Inventory of Volunteer Probation Aides, Region XII, 2010-2012 7.17 List of Interventions for the Safekeeping, Welfare and Development of Inmates, 2011 and 2012 7.18 Transfer to Koronadal City Targets, 2013-2016 7.19 Anti-Red Tape Act Implementation Targets, 2013-2016 7.20 Preparation of Local Plans, 2013-2016 7.21 Selected Local Governance Indicators, 2013-2016 7.22 Targets Judicial and Quasi-Judicial Representations, 2013-2016 7.23 Targets on 3-Pronged Harmonized Rehabilitation Program, 2013-2016 8.1 Status of Health-related MDGs 8.2 Status of Core Health Indicators, 2010-2012 8.3 Basic Education Indicators, 2010-2012 8.4 TVET Indicators, 2010-2012 8.5 Higher Education Indicators, 2010-2012 8.6 Selected Social Protection Indicators, 2010-2012 8.7 Housing Indicators, 2010-2013 8.8 Targets for Selected Health Indicators, 2013-2016 8.9 Basic Education Targets, 2013-2016 8.10 TVET Targets, 2013-2016 8.11 Higher Education Targets, 2013-2016 8.12 Social Protection Targets, 2013-2016 9.1 Crime Solution Efficiency, By Provincial/City Police Office, 2011-2012 9.2 Police to Population Ratio, By Provincial/City Police Office, 2010-2013 9.3 PRO 12 Critical Infrastructure Projects, 2010-2012 9.4 Number of Activities Conducted for the Development and Management of Crime Prevention and Deterrence Program, Regionwide, 2010-2012 9.5 Accomplishment on Anti-Illegal Drugs Programs, Region XII, 2010-2012 9.6 Distribution of Task Forces/Groups, By Urban Area, 2010-2013 9.7 Implementation of IPSP Bayahihan, Region XII, 2010- 2012 9.8 Fire Prevention and Suppression Accomplishments, Region XII, 2011- 2012 9.9 PAMANA Projects Implemented In Region XII, 2012 9.10 Crime Solution and Crime Clearance Efficiency Targets, 2013-2016 9.11 Crime Prevention and Control Program Targets, 2013-2016 9.12 Targets for Campaign Against Illegal Drugs, 2013-2016 9.13 Police to Population Ratio Targets, 2013-2016
  • 15. xiv List of Tables Table No. Title 9.14 Critical Infrastructure Target of the PNP, 2013-2016 9.15 Targets for the Implementation of AFP IPSP Bayanihan and Establishment of Human Rights Offices at Battalion Level, 2013-2016 9.16 Fireman to Population Ratio Targets, 2013-2016 9.17 Fire Prevention, Suppression and Emergency Medical Service Targets, 2013-2016 10.1 Environmental Management Indicators in Region XII 10.2 Environmental Management Indicators in Region XII (Continued) 10.3 Targets for Selected Indicators of the Environment Sector in Region XII 10.4 Targets for Selected Indicators of the Environment Sector in Region XII (Continued) List of Figures Figure No. Title 1.1 SOCCSKSARGEN Development Vision 1.2 SOCCSKSARGEN Development Framework, 2013-2016 3.1 Inclusive Tourism Road Network Map 4.1 Livestock and Poultry Production Trend, 2010-2012 4.2 Fishery Production Trend, 2010-2012 5.1 Transportation Map of the SOCCSKSARGEN Region 5.2 Map of Flood-prone Areas of Region XII 7.1 Percentage of Passing Rate, Region XII 7.2 Region XII Annual Investment Program(AIP) By Sector, 2011-2013 8.1 Monitoring Organizational Structure
  • 16. xv Acronyms 4 Ps Pantawid Pamilyang Pilipino Program AAGR Average Annual Growth Rate ADB Asian Development Bank ADSDPP Ancestral Domains Sustainable Development and Protection Plans AEW Agricultural Extension Worker AFP Armed Forces of the Philippines AHFF Agriculture, Hunting, Fishery and Forestry AHJAG Ad-hoc Joint Advisory Group AHMP Accelerated Hunger Mitigation Program AIP Annual Investment Program AO Administrative Order AOR Area of Responsibility ARMM Autonomous Region in Muslim Mindanao ARTA Anti-Red Tape Act BAS Bureau of Agricultural Statistics BESRA Basic Education Sector Reform Agenda BFAR Bureau of Fisheries and Aquatic Resources BFP Bureau of Fire Protection BIMP-EAGA Brunei, Indonesia, Malaysia, Philippines-East ASEAN Growth Area BIR Bureau of Internal Revenue BJMP Bureau of Jail Management and Penology BOC Bureau of Customs BOD Biochemical Oxygen Demand BPAT Barangay Peacekeeping Action Teams BPLS Business Permits and Licensing System BPO Business Process Outsourcing BSP Bangko Sentral ng Pilipinas CAAP Civil Aviation Authority of the Philippines CADT Certificate of Ancestral Domain Title CALT Certificate of Land Title CAPE Consultancy for Agricultural Productivity Enhancement Program CARHRIHL Comprehensive Agreement on Respect for Human Rights and International Humanitarian Law CARP Comprehensive Agrarian Reform Program CBFM Community-based Forest Management CBMS Community-Based Monitoring System CCA Climate Change Adaptation CCCH Ceasefire Committee on the Cessation of Hostilities CCPO Cotabato City Police Office CCSPC Cotabato City State Polytechnic College CCT Conditional Cash Transfer CDD Community Driven Development CDF Control Dump Facility CDP Comprehensive Development Plan CEP Certified Establishment Program CFCST Cotabato Foundation College for Science and Technology CFL Compact Fluorescent Lamps CHED Commission on Higher Education CIS Communal Irrigation System CLUP Comprehensive Land Use Plan CMTS Cellular Mobile Telephone System COA Commission on Audit COP Culture of Peace COTELCO Cotabato Electric Cooperative CPPO Cotabato Provincial Police Office
  • 17. xvi CPT Cleaner Production Technology CSC Civil Service Commission CSEE Career Service Executive Examination CSO Civil Society Organization CURE Comprehensive and Unified Response to Eliminate Red Tape CY Calendar Year DA Department of Agriculture DAR Department of Agrarian Reform DBM Department of Budget and Management DENR Department of Environment and Natural Resources DepED Department of Education DFS Diversified Farming System DILG Department of the Interior and Local Government DOE Department of Energy DOF-BLGF Department of Finance – Bureau of Local Government Finance DOH Department of Health DOJ Department of Justice DOLE Department of Labor and Employment DOST Department of Science and Technology DOT Department of Tourism DOTC Department of Transportation and Communications DPWH Department of Public Works and Highways DRR Disaster Risk Reduction DRRM Disaster Risk Reduction Management DRRMCs Disaster Risk Reduction Management Councils/Committees DRRMO Disaster Risk Reduction Management Office DSWD Department of Social Welfare Development DTI Department of Trade and Industry DU Distribution Unit EC Electric Cooperative ECC Environmental Compliance Certificate ELA Executive Legislative Agenda EMS Emergency Medical Service EO Executive Order EOD Explosive and Ordnance Division EPIRA Electric Power Industry Reform Act EPP Export Pathways Program FAB Framework Agreement on Bangsamoro FAPs Foreign Assisted Projects FMS Force Multiplier System FS Feasibility Study GAA General Appropriations Act GAP Good Agricultural Practices G-EPS Government Electronic Procurement System GFI Government Financing Institution GID Governance and Institutions Development GIS Geographic Information System GOCC Government-Owned and Controlled Corporation GPH Government of the Philippines GRDP Gross Regional Domestic Product GSCPO General Santos City Police Office GVA Gross Value Added ha Hectare HD-CCTV High Definition Closed Circuit Television HDMF Home Development Mutual Fund HFEP Health Facilities Enhancement Program HH Household
  • 18. xvii HR Human Resource HRDMP Human Resource Development Management Plan HUC Highly Urbanized City HVCCs High Value Commercial Crops IAs Irrigators’ Associations ICC Independent Chartered City ICC Indigenous Cultural Community ICON Information Coordinating Network ICRC International Committee of the Red Cross ICT Information and Communication Technology IDPs Internally Displaced Persons IEC Information, Education and Communication IFC International Finance Corporation IFMA Integrated Forest Management Agreement IHL International Human Rights Law IPRA Indigenous People’s Rights Act IPs Indigenous Peoples IPSP Internal Peace and Security Plan IRA Internal Revenue Allotment ISO International Standard Organization ISP Internet Service Provider ISPF International Ship and Port Facility JAGS-CT Jose Abad Santos-Glan-Sarangani Cooperation Triangle KALAHI-CIDSS Kapit-Bisig Laban sa Kahirapan – Comprehensive Integrated Delivery of Social Services kg Kilogram km Kilometer KRA Key Result Area kV kilo Volt LED Light Emitting Diode LGPMS Local Government Performance Monitoring System LGU Local Government Unit LHB Local Housing Board lm Linear meter LPRAT Local Poverty Reduction Action Team LSDP Local Shelter Development Plan LTO Land Transportation Office MALMAR Malitubog-Maridagao MBLT Marine Battalion Landing Team MCLET Municipal Coastal Law Enforcement Team MCTC Municipal Circuit Trial Court MDG Millennium Development Goal MFI Micro Finance Institution MFPC Multi-sectoral Forest Protection Committee MGB Mines and Geo-sciences Bureau MILF Moro Islamic Liberation Front MinDA Mindanao Development Authority MMIP Malitubog-Maridagao Irrigation Project MMR Maternal Mortality Rate MOA Memorandum of Agreement MPEX Manufacturing Productivity Extension Program MRB Mindanao River Basin MRBDMP Mindanao River Basin Development Master Plan MRF Material Recovery Facility MSMEs Micro Small and Medium Enterprises MT Metric Ton MTC Municipal Trial Court
  • 19. xviii MTCCs Municipal Trial Court in Cities MTEF Medium-Term Expenditure Framework MVA Mega Volt Ampere MVUC Motor Vehicle Users’ Charge MW Mega Watt NAPOLCOM National Police Commission NCIP National Commission on Indigenous Peoples NCPW National Crime Prevention Week NCSPC North Cotabato Seed Production Center ND No data NEDA National Economic and Development Authority NGAs National Government Agencies NGOs Non-Government Organizations NGP National Greening Program NHA National Housing Authority NHTS-PR National Household Targeting System for Poverty Reduction NIA National Irrigation Administration NIPAS National Integrated Protected Areas NIS National Irrigation System NNC National Nutrition Council NRIP National Road Improvement Project NSCB National Statistical Coordination Board NSO National Statistics Office NTC National Telecommunications Commission OD Open Dump OFW Overseas Filipino Workers OPAPP Office of the Presidential Adviser on the Peace Process OPI Overall Performance Indicator PA Philippine Army PA Protected Area PAMANA Payapa at Masaganang Pamayanan PAMB Protected Area Management Board PAG-IBIG Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno PAO Public Attorney’s Office PBIS Performance-Based Incentive System PCA Philippine Coconut Authority PCCP Portland Cement Concrete Pavement PCJS Philippine Criminal Justice System PCT Provincial Core Team PD Presidential Decree PDEA Philippine Drug Enforcement Agency PDP Philippine Development Plan PDPFP Provincial Development and Physical Framework Plan PEM Public Expenditure Management PESFA Private Education Student Financial Assistance PESO Public Employment Service Office PFM Public Financial Management PFMAT Public Financial Management Assessment Tool PHIC Philippine Health Insurance Corporation PhilGEPS Philippine Government Electronic Procurement System Php Philippine Pesos PIA Philippine Information Agency PLPEM Provincial/Local Planning and Expenditure Management PNP Philippine National Police PNP-SAF Philippine National Police-Special Action Force POs People’s Organizations PPA Philippine Ports Authority
  • 20. xix PPA-DOJ Parole and Probation Administration-Department of Justice PPP Public-Private Partnership PRAISE Program on Awards and Incentives for Service Excellence PRAT Poverty Reduction Action Team PRC Professional Regulation Commission PRO Police Regional Office PSR Private Sector Representative PSS Problem-Solving Session PWD Person With Disability RA Republic Act RAP-LGU Resettlement Assistance Program to LGUs RATE Run After Tax Evader RBPMS Result-Based Performance Management System RDC Regional Development Council RDI Research and Development Institute RDP Regional Development Plan RE Renewable Energy RGC Regional Government Center RoRo Roll on-Roll off RPMC Regional Project Monitoring Committee RTC Regional Trials Court SCPPO South Cotabato Provincial Police Office SIFMA Socialized Integrated Forest Management Agreement SKPPO Sultan Kudarat Provincial Police Office SKSU Sultan Kudarat State University SLF Sanitary Landfill SLGR State of Local Governance Report SMEs Small and Medium Enterprises SMI Sagittarius Mines Incorporated SOCCSKSARGEN South Cotabato, Cotabato Province, Cotabato City Sultan Kudarat, Sarangani, General Santos SOCOTECO South Cotabato Electric Cooperative SOV Search for Outstanding Volunteers SPPO Sarangani Provincial Police Office SRIP Small River Impounding Project SSF Shared Service Facility SSL Salary Standardization Law SUCs State Universities and Colleges SUKELCO Sultan Kudarat Electric Cooperative TB Tuberculosis TC Therapeutic Community TESDA Technical Education and Skills Development Authority TIEZA Tourism Infrastructure and Enterprise Zone Authority TOT Training for Trainors TVET Technical-Vocational Education and Training TWSP Training for Work Scholarship Program UHC-AHA Universal Health Care - Aquino Health Agenda USM University of Southern Mindanao VIILPs Various Infra Including Local Projects VPA Volunteer Probation Aide WDP Wastewater Discharge Permit WQMA Water Quality Management Area
  • 21. 1 CHAPTER 1 REGIONAL DEVELOPMENT FRAMEWORK I. Vision of Development The development vision of SOCCSKSARGEN reflects its desire to become a people of integrity and faith - communing with God and living out His laws, and walking the paths of righteousness, justice, peace and respect for human rights and the environment. The people of the region are empowered and are able to influence others as they are motivated by dynamic and dedicated leaders toward a self-reliant and a productive way of life. The socioeconomic development of the region is accelerated by the people’s concerted efforts in harnessing the region’s natural endowments in a manner that is sustainable. The region shall be known as provider of quality products and services, particularly from the creative, innovative and responsible development of high value crops, fishery, mineral resources, and tourism potentials. It is likewise the vision of the people of the region to be living in an environment where all its elements (land, water, air, climate and genetic resources) are healthy and green providing them the needed care and attention for a sustained economy. The sustainable management and utilization of its natural resources is the region’s legacy to its future generation. Figure 1.1 is the SOCCSKSARGEN Vision of Development enunciated in the Regional Development Plan (RDP), 2011-2016. FIGURE 1.1 SOCCSKSARGEN DEVELOPMENT VISION II. Comparative Advantages Given its natural endowment, SOCCSKSARGEN Region has great potentials for high levels of agriculture production, tourism development, energy generation, and other resource-based industries. Support to develop these industries includes the implementation of high impact infrastructure amenities, such as airports and irrigation dams. The following are among the comparative advantages of Region XII:  Region XII is strategically located in the south central part of Mindanao. Its location facilitates the export of various products and eases mobility of people to Brunei, Indonesia, Malaysia, Philippines- East ASEAN Growth Area (BIMP-EAGA) and Southeast Asia.  SOCCSKSARGEN is among the leaders in the country in palay and corn production. It is the top producer of high value crops like coffee, banana, asparagus, and oil palm. General Santos City is host to 80 percent of tuna industry in the country. The region also ranks seventh in hog inventory. “By 2016, Region XII is the home of God-centered, empowered, culturally diverse people; a provider of world class high value crops, fishery, mineral and tourism products and services, propelled by dynamic and dedicated leaders, and living in a green and healthy environment.”
  • 22. 2  With the establishment of Halal Laboratory in Koronadal City, the region has vast potential to be the source of Halal-certified products for export to the billion dollar Halal markets in Southeast Asia and the Middle East.  The region has existing infrastructure facilities, such as the General Santos International Airport and the General Santos Port. In support of the development of the agriculture and fishery sector, the Malitubog-Maridagao River Irrigation System (MALMAR) currently services around 5,500 hectares of rice fields in the Provinces of Cotabato (Pikit, Carmen) and Maguindanao (Pagalungan, Pagagawan). The completion of MALMAR Project 2 is expected to expand irrigable areas in both provinces of Cotabato and Maguindanao.  The Mt. Apo Geothermal Plant in Kidapawan City, Cotabato Province contributes to the power requirement of the Mindanao Grid.  The region boasts of various eco-tourism destinations, such as Lake Sebu, Mt. Apo, Gumasa beaches, diving sites, historic caves, and bird and bat sanctuaries.  The socioeconomic growth and development of the region is propelled by talented and highly skilled population. III. Development Challenges To attain its development vision, the region shall address the challenges that continue to confront its people and hinder its desire to move forward, namely its low and erratic economic growth and high poverty incidence. These two major challenges are the combined effects of low economic productivity, low income and lack of access to productive and decent employment, inadequate access to quality basic services, inadequate infrastructure support, and environmental degradation, as well as the unstable power supply, and difficulties in sustaining peace, and improving governance. IV. Development Goal and Strategic Outcomes The region’s stakeholders shall work together and take advantage of its strength in agriculture, ecotourism and rich natural resources to sustain or even surpass the current growth of the regional economy and achieve inclusive growth and poverty reduction by 2016. This shall be attained through a sustained boost in investments, making available productive employment and increase in income and quality of livelihood opportunities. Also considered as critical factors that would contribute to the over-all development goal of inclusive growth and poverty reduction are the provision of quality and adequate basic social services, resiliency of the people and communities to all types of disasters, and at the same time, the presence of effective infrastructure support and resilient financial system in the region. All these development interventions shall occur with the backdrop of good governance highlighted by the rule of law, transparency and accountability; green and healthy environment; reliable energy supply and stable peace and order condition. Figure 1.2 provides the SOCCSKSARGEN development framework for the next three years.
  • 23. 3 FIGURE 1.2 SOCCSKSARGEN DEVELOPMENT FRAMEWORK, 2013-2016 In pursuit of inclusive growth and poverty reduction The overarching goals of SOCCSKSARGEN region are inclusive growth and poverty reduction. These goals are consistent with the Social Contract of His Excellency President Benigno S. Aquino III and the Philippine Development Plan (PDP), 2011-2016. Inclusive growth refers to a growth that is rapid enough to matter, given the country’s large population, geographical differences, and social complexity. It is sustained growth that creates jobs, draws the majority into the economic and social mainstream, and continuously reduces mass poverty.1 For the past three years, the SOCCSKSARGEN Region pursued strategies and implemented interventions aimed at reducing poverty levels by increasing economic growth and job generation, providing basic social and infrastructure services, ensuring good governance, and sustaining the gains in peace initiatives. From 2010-2012, regional economic performance recorded low and erratic growth trend and high poverty incidence. These two major challenges are attributed to low economic productivity and low income because of lack of access to productive and decent employment. Persistent challenges such as inadequate access of people to basic services, low infrastructure support, inadequate and unreliable power supply for socioeconomic development, environmental degradation, and poor governance, further pushed economic productivity down and poverty levels up. If these challenges are not addressed, the development of the region would remain sluggish. Majority of its people will remain poor and would not benefit from gains in economic growth. Poverty reduction is the pro-active initiative of decreasing absolute and relative poverty. Absolute poverty refers to the condition of the household below the food threshold level while relative poverty refers to the gap between the rich and the poor2 . With all sectors of society benefitting from development through inclusive growth, there is optimism that the Millennium Development Goal (MDG) target of 16.6 percent poverty incidence shall be attained. 1 Philippine Development Plan (PDP), 2011-2016. 2 Republic Act (RA) 8425 “Social Reform and Poverty Alleviation Act of 1997.”
  • 24. 4 Strategic Outcomes From the issues identified, the achievement of the following strategic outcomes is expected to contribute to the realization of inclusive growth and poverty reduction. 1. Achieving stable macroeconomy Regional economic performance as measured by the gross regional domestic product (GRDP) is targeted to sustain growth rates within the range of 8% to 10% up to 2016. All the industry groups are expected to post positive growths during the period. The region shall boost activities in the Services and Industry sectors as the lead contributor to the economy. The linkage between production and processing shall be further tightened and strengthened. 2. Meeting the MDG poverty reduction targets by 2015 With the expected growth in the regional economy during the plan period, a greater number of jobs are expected to be generated which could provide higher and more stable sources of income, particularly for the vulnerable sectors. Adequate income and access to productive employment are expected to contribute to the reduction of poverty level in the region. The poverty incidence of population in the region is targeted to decrease from 46.8% in 2000 to 23.4% by 2015; and, the poverty incidence among families from 40.7% in 2000 to 20.4% in 2015. 3. Providing livelihood and employment Employment rate is targeted to hit 96.4% by the end of plan period. On the other hand, the reduction in the underemployment rate is targeted between 15% and 18% in the remaining years of the plan period. To attain the employment and underemployment targets, increased economic activities that contribute to job generation in the Agriculture, Fishery and Forestry sector, as well as in the Industry and Services sectors shall be pursued. 4. Managing the population growth rate The high population growth in the region demands greater use of resources that are fast depleting. The region shall therefore strive to manage its population growth by intensifying the implementation of programs and projects that focus on responsible parenthood, family health, and other health-related programs, including advocacy on acceptable reproductive health measures. Utilizing medium growth population assumptions, the region is expected to achieve a slower population growth rate of 2.06% by 2016. 5. Enhancing productivity of MSMEs The region recognizes the primary role of MSMEs in making the Industry and Service sectors more competitive. To ensure the development of MSMEs and enhance their productivity, the Industry Clustering Strategy shall continue to be adopted. This strategy is a goal-oriented cooperation of producers and industry players to find and to respond to business opportunities not normally accessible to individual players. It is a private sector-led and government-supported initiative that promotes private and government collaboration. 6. Boosting investments and exports By 2016, investments into the region are targeted to increase to PhP 11,800.20 million and exports are expected to reach US$ 1,294.50 million. The target increase for investments and exports will largely come from the Industry and Services sectors of the regional economy. This shall be realized through enhanced policies and increased and sustained production of agricultural and industrial commodities.
  • 25. 5 7. Increasing tourist arrivals To attract tourism investments and to increase tourist arrivals, DOT XII in collaboration with LGUs, hotel and food operators, transport sector, and handicraft producers shall focus their interventions on the tourism value chain to specifically develop and market competitive tourism products, improve market access, connectivity and destination infrastructure, improve tourism institutions, and human resource capacities. Tourist arrivals are targeted to increase by 10% annually from 682,468 in 2012 to almost one million tourist arrivals in 2016. The increase in tourist arrivals would result from various initiatives consistent with the strategies and activities in the tourism industry. 8. Increasing productivity and production in agriculture sector towards the attainment of food security The Department of Agriculture (DA) XII under the Agri-Pinoy Rice Program aims to increase the rice production to an average of 4 tons per hectare for irrigated areas and 3.5 tons per hectare for rain-fed areas. The target increase per hectare would result to an additional 542,075 metric tons of palay or equivalent to 43% increase in total production by 2016. DA XII also plans to expand an additional 72,893 hectares or 11% of the total production area for both irrigated and rain-fed palay. The expansion in irrigated palay production is also supported by the NIA XII initiatives in expanding their target service areas. For Agri-Pinoy Corn Program, DA XII targets to increase the production in 2016 by 205,753 MT or about 17% of its total production in 2012. The yellow corn production is almost 60% of the total corn production in the region and it is expected to deliver an additional 124,178 MT by 2016. The area for corn production is targeted to increase by 4% or about 18,204 hectares by 2016. Of the total target area expansion, 69% will be utilized for yellow corn production since it has a greater market demand as compared to white corn. The contribution of the vulnerable sectors and indigenous peoples (IPs) to agriculture production and hence, to food security can be enhanced by ensuring them access to lands, granting them land rights, and mainstreaming them into society. 9. Providing efficient and effective infrastructure facilities and services The region shall sustain the implementation of road projects consistent with the thrust of President Aquino to concrete all national and secondary roads leading to production areas and tourism sites by the end of 2016. The region shall likewise pursue the construction and rehabilitation of high priority irrigation facilities to ensure water security for agriculture production and to provide tap water supply. To facilitate regional integration, the development of digital infrastructure, such as the Cellular Mobile Telephone System (CMTS) shall be intensified particularly in remote areas. The delivery of basic social services shall be improved by constructing more facilities for education and health infrastructure as well as affordable housing units. 10. Ensuring adequate and reliable energy supply for socio-economic and institutional development It is imperative for the region to address the unreliable energy supply that slows down industry activities which could hamper the attainment of regional economic growth. The pace of industrial and commercial progress in the region continues to grow with the establishment of more processing plants, malls, and hotels triggering greater demand for power. The region shall pursue the promotion and shall fast track the development of renewable energy sources, such as hydro and solar power to meet the ever increasing demand for energy.
  • 26. 6 11. Establishing a resilient and inclusive financial system in the region The financial system is essential for a regional economy in creating channels to transform savings into investments. One of the factors that contribute to economic growth is the amount of savings that are efficiently channeled into investment. The soundness and stability of banks can have the incentive and influence in shaping the major decisions of individuals and enterprises as well as those of non-financial companies on how much savings will be mobilized. By the end of plan period, it is targeted that total number of banks would increase from 197 in 2012 to 205 in 2016. Loan portfolio is also expected to increase from PhP17.27 billion in 2012 to PhP25.25 billion in 2016. 12. Maintaining good governance and the rule of law The SOCCSKSARGEN Regional Development Framework, anchored on good governance, is expected to contribute to the achievement of inclusive growth and poverty reduction. The region shall continue institutionalizing reforms towards greater participation, accountability, transparency, effectiveness and efficiency, equity and inclusivity and widened practice of the rule of law. The City Government of Koronadal in partnership with regional line agencies shall continue the on-site development at the regional government center in compliance to Executive Order 304 aimed at improving administrative efficiency. 13. Strengthening of justice system One of the concerns on effective and efficient delivery of justice is the maintenance of a just and orderly society. Access to justice system through representation shall be provided especially to indigents and vulnerable clientele in the region. The provision of assistance to the victims of unjust imprisonment shall be continued. 14. Ensuring adequate access to quality basic social services The SOCCSKSARGEN Region considers the importance of developing its human resources as key to inclusive growth. This shall be done through the provision of equitable and adequate access to quality basic social services to ensure healthy, educated and skilled population in support of the President’s Social Contract. The region shall continue to improve the efficient utilization, allocation and mobilization of resources both at the local and regional levels. The health sector shall ensure that the population has universal access to quality health care, nutrition and sanitation. The education sector shall provide equal access to quality basic education, TVET and higher education for all. Sufficient data on housing needs and backlogs in localities shall be generated as input to shelter development planning. There is a need for most of the LGUs to formulate and update their Local Shelter Development Plans (LSDPs). The creation or strengthening of the Local Housing Board (LHB) will pave the way to an efficient and effective formulation/updating of the Local Shelter Development Plan of cities and provinces in the region. A functional LHB which serves as an advisory body on housing concerns will assist the LGUs in providing access to affordable housing especially for the poor and low-income population. It shall also encourage private sector participation in housing production and facilitate multi- sectoral interaction in shelter planning, plan review, and implementation. 15. Sustaining peace and security From 2013 to 2016, SOCCSKSARGEN Region shall support the over-all thrust of the National Government in winning the peace through a successful conclusion of ongoing peace processes. The peace program of the region shall continue to be anchored on the PAMANA “Payapa at MasaganangPamayanan” Program. The region’s development councils, as well as its peace and order councils at all levels shall serve as mechanisms to draw broad support, increase the awareness of stakeholders about the gains of just and lasting peace. In terms of establishing a secured environment to guarantee public safety, various forms of interventions must be accelerated from 2013 to 2016 to attain the desired state of security for the people.
  • 27. 7 16. Maintaining a green and healthy environment The environment sector shall take a proactive stance to provide a stable and predictable environment that would enable communities and enterprises to carry out their production and consumption with minimum risk and uncertainty. Protection land use shall be accorded high priority not only to National Integrated Protected Areas (NIPAS) but also to Non-NIPAS areas such as coastal and freshwater wetlands, second growth forest reserves, easements along waterways and shorelines, bird sanctuaries, and ecotourism sites. Intensive implementation of the National Greening Program (NGP) shall be pursued, in close coordination with LGUs and concerned regional line agencies, for a more efficient and effective convergence of efforts and resources. To address the problems confronting the environment, it is not only important that environmental laws are passed. Equally important would be the enforcement of such laws. Structural mechanisms to this effect will be put in place.
  • 28. 8 CHAPTER 2 INCLUSIVE GROWTH AND POVERTY REDUCTION I. Assessment A. Economic Performance 1. Gross Regional Domestic Product The GRDP measures the contribution of all sectors – agriculture, industry, and services – to total regional economic output and growth. For the period 2010 to 2012, the GRDP grew at an average annual rate of 5.2%. This is almost the same level with the target of 5.0% in 2011 and 5.3% in 2012. Over the years, the GRDP in the region posted increasing trends and recorded a shift in the structure from predominantly agriculture to service and industry. TABLE 2.1 GROSS REGIONAL DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN GROWTH RATES, AT CONSTANT 2000 PRICES, 2010-2012 INDICATOR ACTUAL TARGET 2010 2011 2012 AAGR (%) 2011 2012 Gross Regional Domestic Product Growth Rate (%) 2.2 5.3 8.1 5.2 5.0 5.3 - Agriculture, Hunting, Fishery and Forestry (AHFF) 0.4 1.8 5.4 2.5 4.6 4.9 - Industry Sector 3.0 10.0 10.8 7.9 5.4 5.7 - Service Sector 3.1 4.3 8.1 5.2 5.1 5.4 Source of data: NSCB The Services sector contributed the biggest share to total GRDP at an average of 37.3% from 2010 to 2012. The sector posted a growth rate of 8.1% in 2012, from only 4.3% in 2011 and 3.1% in 2010. Almost all of its subsectors also posted accelerated growths. Financial Intermediation and Real Estate, Renting and Business Activities are the high sources of growth in 2012 for the sector, followed by Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods and Transport, Storage and Communication. The Industry sector sustained high growths of 10% and 10.8% in 2011 and 2012, respectively. Its share to total GRDP also improved from 30.5% in 2010 to 33.0% in 2012. Its sources of growth came from manufacturing and construction activities in the region. A turnaround was noted in construction as this recovered from negative growth in 2011. The share of Agriculture, Hunting, Forestry and Fishery (AHFF) was 29.9% in 2012, a decline from its contribution of 31.7% to the regional output in 2010. In 2012, the sector grew faster at 5.4% from 1.8% in 2011. Fishing, which comprised 5.2% share of the region’s AHFF, recorded a remarkable increase of 16.8% in 2012 from a negative 11.5% in 2011. The lustrous performance was attributed to the increase in commercial fish production due to the lifting of the fishing ban for tuna in the deep seas of Indonesia, Papua New Guinea and Micronesia which are the main fishing grounds of Philippine’s commercial fishing. In 2012, the region’s GRDP ranked third among the Mindanao regions in terms of its contribution to the total Mindanao output. The largest shares came from Regions X and XI.
  • 29. 9 2. Prices Inflation rate in the region was estimated at 4.4% in 2010 and 4.6% in 2011. This went down to 2.6% in 2012. By commodity group, the highest inflation rate in 2012 was recorded for alcoholic beverages and tobacco and housing, water, electricity, gas and other fuels at 4.4%. Ranked second was health with inflation rate of 4.1%, followed by education 3.8%. 3. Investments and Exports The level of investments consistently increased, from PhP1.93 billion in 2010 to PhP6.30 billion in 2012, registering a high annual average growth rate of 82.1%. Increases were attributed to the new commercial and industrial establishments, small and medium enterprises (SMEs) through investment missions, business matching, business name registration, investment facilitation, and the conduct of information and communication technology (ICT) activities. Exports value was recorded at US$610.40 million in 2010 to US$410.18 million in 2012, registering a decline of about 32%. 4. Average Family Income The average Annual Family Income (at current prices) in the region increased by about PhP40,000.00, from PhP114,000.00 in 2006 to PhP154,000.00 in 2009. The 2009 figure is PhP52,000.00 lower than the average annual family income of PhP206,000.00 at the national level. 5. Poverty Threshold In 2012, the annual per capita poverty threshold in Region XII was estimated at PhP18,737.00. This was higher by PhP2,332.00 compared with the 2009 poverty threshold. Cotabato City posted the highest poverty threshold at PhP20,568.00, while Sultan Kudarat Province had the least at PhP17,597.00. In the region, a family of five would be needing PhP93,685 a year (or PhP7,807.08 per month) for their food and other basic requirements. TABLE 2.2 ANNUAL PER CAPITA POVERTY THRESHOLD AND POVERTY INCIDENCE BY AREA, 2006, 2009 AND 2012 AREA ANNUAL PER CAPITA POVERTY THRESHOLD (IN PESOS) POVERTY INCIDENCE AMONG FAMILIES (%) 2006 2009 2012 2006 2009 2012 REGION XII 13,319 16,405 18,737 31.2 30.8 37.1 Cotabato Province 12,077 14,862 18,340 25.6 23.4 44.8 Sarangani 13,059 16,053 18,640 41.7 47.5 46.0 South Cotabato 13,889 17,141, 19,847 26.1 25.7 25.8 Sultan Kudarat 13,766 16,965 17,597 44.3 41.6 40.4 Cotabato City 14,629 18,103 20,568 27.5 29.9 34.5 Source of data: NSCB XII 6. Poverty Incidence While the average family income increased based on the Family Income and Expenditure Survey, poverty incidence among families in 2012 was estimated at 37.1% or an increase of 6.3 percentage points from the 2009 estimate of 30.8%. The target of the region of halving the poverty incidence of 40.7% by 2015 based on the Millennium Development Goals has a very low probability of attainment given the increasing record from 2009 to 2012.
  • 30. 10 7. Livelihood and Employment a. Employment, Unemployment and Underemployment While the number of population 15 years and over showed a decline in 2012, the labor force participation rate increased from 64.4% in 2010 to 67.2% in 2012. The unemployment rate also increased to 4.0% in 2012 from 3.7% in 2010. TABLE 2.3 LABOR AND EMPLOYMENT INDICATORS, 2010-2012, REGION XII INDICATOR 2010 2011 2012 AVERAGE Population 15 years and over (‘000) 2,601 2,678 2,648 2,642 Labor Force Participation Rate (%) 64.4 67.5 67.2 66.8 Employment Rate (%) 96.3 96.3 96.0 96.2 Unemployment Rate (%) 3.7 3.7 4.0 3.8 Underemployment Rate (%) 18.0 17.5 22.1 19.2 Source of data: NSO XII A major concern facing the region is the rising rate of underemployment which sharply increased to 22.1% in 2012 from 18.0% in 2010. The number of underemployed persons increased by around 87,000, from 290,000 in 2010 to 377,000 in 2012. b. Labor Productivity Regional labor productivity estimated by the gross regional domestic product (GRDP) over the employed persons posted increasing trend from PhP93,578.00 in 2010 to PhP102,415.00 in 2012. Labor productivity in 2012 was 8.1 percent higher than the 2011 record of PhP94,715.00. Labor productivity nationwide was estimated at PhP167,864.00 posting an increase of 5.7 percent from 2011 estimate of PhP158,878.00. c. Livelihood and Employment Opportunities The provision of livelihood and employment opportunities, particularly for vulnerable groups was intensified. Livelihood and microfinance assistance sustained sources of income particularly for self- employed individuals. However, these were not enough as the employment levels fluctuated and underemployment swelled in the past three years. The influx of skills not needed by the industries also contributed to unemployment and underemployment, indicating that the job mismatch problem was not fully addressed. B. Fiscal Reforms 1. Local Income Total real property tax (RPT) collection in 2011 increased by about 39%, but collections dropped by 17 %, in 2012. The highest amount of collection in 2012 was attained by South Cotabato, followed by General Santos City. However, higher increase in collection between 2011 and 2012 was recorded for Sultan Kudarat, followed by Tacurong City. All other LGUs posted declining collection during the said periods. TABLE 2.4 TAX AND INTERNAL REVENUE COLLECTION, 2010-2012, REGION XII Source of data: DOF-BLGF XII INDICATOR 2010 2011 2012 Real Property Tax Collection (PhP Million) 636.669 885.997 732.772 Local Revenue Tax Collection (Business Taxes, Fees and Charges, and Economic Enterprise (PhP Million) 1,221.17 1,345.78 1,604.84 Internal Revenue Collection (PhP Million) 3,774.039 4,420.94 5,244.319
  • 31. 11 For local revenue collection, General Santos City and Cotabato Province led in the amount collected in 2012. In terms of growth in collection from 2011 to 2012, South Cotabato increased by 26.7%, Tacurong City by 13.1%, Cotabato Province by 11.8%, General Santos City by 11.5%, and Koronadal City by 5.3%. Other LGUs recorded a declining trend in local revenue collection. 2. Internal Revenue Tax Internal revenue collection increased by 17.1% from PhP3.77 billion in 2010 to PhP4.42 billion in 2011. The collection further increased by 18.6% in 2012, with the total collection reaching PhP5.24 Billion. 3. Internal Revenue Allotment In 2011, the total amount of IRA for LGUs in the region reached PhP10.727 million, but decreased to PhP10.091.89 million in 2012 or by about 6.0%. II. Development Challenges The regional economy posted positive growths between 2010 and 2012, but majority of its people continued to be confronted by inadequate access to productive and decent employment. This inadequacy further resulted to rising underemployment and lower income levels, thus contributing to high poverty incidence of 37.5% in the first semester of 2012. While the fiscal sector of the region performed well from 2010 to 2012, the sector experienced declining collection of real property tax during the period. The problem is attributed to the inability of LGUs to maximize their revenue-generating capacities, while some are not updating their local revenue codes. III. Development Goals and Strategic Outcomes A. Stable macroeconomy achieved Sustaining High Economic Growth Regional economic growth as measured by the gross regional domestic product (GRDP) is targeted to be sustained within the range of 8% to 10% until 2016. TABLE 2.5 GRDP GROWTH TARGETS, 2011-2016, REGION XII Indicator Actual Target 2012 2013 2014 2015 2016 Low High Low High Low High Low High Gross Regional Domestic Product (GRDP) 8.1 7.5 8.8 8.2 9.2 8.3 9.3 9.1 10.1 - Agriculture, Hunting, Fishery and Forestry 5.4 4.0 5.0 4.0 5.0 4.0 5.0 4.0 5.0 - Industry 10.8 10.0 11.0 11.0 12.0 11.0 12.0 12.0 13.0 - Service 8.1 8.0 10.0 9.0 10.0 9.0 10.0 10.0 11.0 Average per capita GRDP of PhP52,000 to PhP54,000 by 2016 PhP40,043 45,050 45,620 48,750 49,830 50,460 52,060 52,330 54,480 Achieved a low and stable inflation rate of below 5% 2.6 Below 5.0% Source of data: NSCB XII The region is optimistic that the economy can sustain its growth and the sources of expansion will mainly come from the following:
  • 32. 12 1. Maintaining Growth Rates in Agriculture, Hunting, Fishery and Forestry, within 4% to 5% a. Increase palay production with the support of irrigation development, use of high yielding varieties, utilization of new production technologies, and proper post harvest management. b. Expand commercial crop export base, such as corn, pineapple, banana, coffee, coconut, sugarcane, oil palm, and rubber. c. Expand the aquaculture farming areas for crabs, tilapia, bangus and prawn products in the provinces of Sultan Kudarat and Sarangani and in Cotabato City. d. Reduce the underlying risks to food security and advocate the adoption of appropriate technologies as a support to stabilize economic growth. e. Pursue reforestation activities in different areas of the region to supplement the outputs of the agriculture, fishery, and forestry. 2. Sustaining Higher Growth Rates in Industry within 10% to 13% a. Increase processing activities for the major export winners of the region:  Tuna/Bangus/Prawn processing and canning/packaging in General Santos City and Sarangani;  Pineapple (DOLE Philippines), coconut, asparagus, coffee and banana;  Rubber processing in Cotabato Province; and  Other agri-processing activities in South Cotabato (Kablon Farm Corporation, Pioneer Hybrid Seeds, Bioseed) and in Sultan Kudarat (Kenram Industrial Development, Inc. and sugarcane/ muscovado). b. Promote responsible mining activities in the region. c. Increase construction activities particularly in power generation facilities, transportation (roads and bridges), flood control, irrigation, water supply, school and health facilities, commercial and housing facilities. d. Promote/Develop micro, small and medium enterprises (MSMEs) that directly contribute to agriculture, fishery, forestry, and service industries. e. Diversion routes are also recommended to decongest traffic in the main roads. f. Operationalize power plants and transmission lines and increase electrification coverage up to the household level. 3. Increasing Growth Rates in Services within the range of 8% to 11% a. Increase activities in transportation, communication and government services. b. Strengthen trading, finance, tourism, ICT/BPO activities, real estate and public administration.  Tourism services shall be improved considering the rich tourism potentials of the region, such as: Mt. Apo in Cotabato Province; Lake Sebu, in South Cotabato; the presence of caves, waterfalls, rivers and the conduct of several festivals celebrated in the different areas of the region. c. Promote, push and enhance business climate, particularly in the urban centers of the region. 4. Stabilizing inflation rates a. Maintain an inflation rate of not more than 5% within the plan period. Regular price monitoring shall be implemented to avoid irrational price mark-ups by the unscrupulous business traders. Commodity flow shall be unhampered to allow a continuing stream of supply in the region.
  • 33. 13 Equalized Development Opportunities 5. Meeting the MDG Poverty Reduction Targets by 2015 a. Support job generation activities which could provide higher and more stable sources of income particularly for the vulnerable sectors. b. Take advantage of the expected growth in the regional economy during the plan period where greater number of jobs is expected to be created, provide access to productive employment to ensure adequate income, which in turn could lead to a reduction of poverty levels in the region. c. Reducing Poverty Incidence to 23.4%. The poverty incidence of population in the region is targeted to be reduced from 46.8% in 2000 to 23.4% by 2015, while the poverty incidence among families will decrease from 40.7% in 2000 to 20.4% in 2015. These targets are consistent with the Millennium Development Goals (MDG) target of halving the proportion of people living in extreme poverty between 1990 and 2015. TABLE 2.6 POVERTY TARGETS IN 2015, REGION XII INDICATOR ACTUAL TARGET 2000 2009 2012 2015 Poverty Incidence of Population 46.8 38.9 45.8 23.4 Poverty Incidence of Families 40.7 31.1 37.5 20.4 Source of data: NSCB XII 6. Providing Livelihood and Employment Employment rate is targeted to hit 96.4% and underemployment rate is targeted to be reduced between 15 to 18% by the end of the plan period. a. Increase economic activities that can contribute to job generation in the Agriculture, Hunting, Fishery and Forestry sector, as well as in the Industry and Services sectors shall be pursued. b. Expand skills training for out-of-school youth and jobless individuals provided by government agencies and local government units and pursue the introduction of new livelihood skills to low income families for additional sources of income. c. Educational institutions to undertake job matching programs, considering the courses being offered by these institutions and the forecasted skill/job requirements of industries in the region. TABLE 2.7 EMPLOYMENT TARGETS, 2013-2016, REGION XII Indicator Actual Targets 2012 2013 2014 2015 2016 Employment Rate (%) 96.0 96.4 96.6 96.8 97 Unemployment Rate (%) 4.0 3.6 3.4 3.2 3.0 Underemployment Rate (%) 22.1 20.0 18.0 17.5 15.0 Source of data: NSO d. Promote the creation of relevant jobs through livelihood and micro financing and to create relevant and quality employment opportunities.
  • 34. 14 e. Support self-employment and entrepreneurship development programs. Livelihood convergence models shall be developed. The LGUs, NGOs and cooperatives shall be oriented on accessing funds for microenterprise development. f. Intensify, reorient and develop relevant technical programs that would expand the beneficiaries covered by the livelihood and employment generating activities. 7. Managing the Population Growth Rate The region posted an average annual population growth rate of 2.46% from 2000 to 2010 which is higher than the national rate of 1.90%. The population is expected to double in 2036 or about 25 years from 2011. Utilizing medium growth population assumptions, the region is expected to achieve a lower population growth of 2.06% by 2016. To influence lowering population growth, there is a need to intensify the implementation of programs and projects that focus on responsible parenthood, family health, and other health-related programs, including advocacy on acceptable reproductive health measures. B. Stable fiscal management attained 1. Increasing local income Revenue generation efforts shall be strengthened following the pronouncement of the President on “no imposition of higher taxes or introduction of new taxes.” Reforms shall be geared towards addressing the issues on smuggling and tax evasion of high profile taxpayers, thereby increasing revenue collection. Policy reforms on maximizing and judicious utilization of resources to generate savings and income, and the review of government expenditures vis-à-vis revenue collection with an end view of lowering yearly budget deficit shall be pursued. Revenue collection shall be strengthened by implementing the provisions in the Local Revenue Code on the allowable percentage increase to real property taxes every three years. LGUs are enjoined to undertake regular updating of their local revenue code to incorporate the allowable increase in the general revision. Tax mapping shall be intensified to cover business establishments. Tax maps database shall be periodically updated. LGUs must pursue zoning or reclassification based on the land use plan to get the right value of real property tax. LGUs are also encouraged to formulate and/or update their own revenue codes (economic enterprise code, cemetery code, and slaughterhouse code, market code) to generate local revenues. Real Property Tax Collection is expected to increase by 6% annually, while local revenue collection to increase by 8% annually from 2013 until the end of the plan period. TABLE 2.8 TAX AND INTERNAL REVENUE COLLECTION TARGETS 2013-2016, REGION XII Source of data: BIR RR 18, BLGF XII, LGUs INDICATOR 2012 ACTUAL TARGETS (IN MILLION PESOS) 2013 2014 2015 2016 Real Property Tax Collection 732.772 806 887 975 1,073 Local Revenue Tax Collection (Business Taxes, Fees and Charges, and Economic Enterprise 1,604.84 1,830 2,086 2,378 2,711 Internal Revenue Collection 5,244.319 6,136 7,179 8,399 9,827
  • 35. 15 2. Intensifying collection of Internal Revenue Tax Information drive, official receipts issuance campaign through tax mapping, close monitoring on tax compliance, “Oplan Kandado”, support to Project RIP, intensify campaign against tax evaders through “Run After Tax Evader (RATE)” and other activities aimed at increasing internal tax collection shall be continuously intensified during the plan period. Strict monitoring of taxes due from professional services shall likewise be sustained. The review of yearly goals to deduct transfer-out accounts and those with centralized remittances including those of the multinational corporations which directly remit to Large Taxpayer Division in Manila shall be adopted in the region. Other strategies to be pursued to address the challenge of low revenue collection:  Promotion of delivery of fast, efficient and courteous service to taxpayers as well as institute a system for measuring the level of taxpayer satisfaction with BIR services thru the “Handang Maglingkod Project”.  Provision of income tax holidays during special occasions and tax amnesty.  Support to rationalization of tax performance based incentive and sustaining the same to invite more investors to conduct business in the country. This includes conduct of information campaign on the tax incentives implemented applicable to business enterprises and other type of taxpayers.  Intensification and strengthening of the implementation of the Joint Memorandum Circular # 1, series of 2007, particularly the sound, efficient and effective management and utilization of government resources; and the l mobilization of LGU resources through different strategies in revenue generation.  Simplification of taxation system by coming up with a simplified taxation system in accounting the tax due for business sector. This will facilitate and encourage easy filing of taxes due. On gross sales tax receipt, computation of taxes shall be based on gross profit margin rather than on gross sales. The increase of prices of goods due to the level of inflation rate will also increase the total gross sales but not the gross profit margin. 3. Reducing dependency on the Internal Revenue Allotment The high dependency on Internal Revenue Allotment (IRA) share by most LGUs in the region shall be addressed during the plan period. There shall be a conduct of policy review or revisit of the formula used in the allocation of IRA share by lowering the percent share allocation on population. Following the MDG goal, the region shall strive to lower the IRA dependency of the LGUs from its CY 2011 level of 82.0% starting 2013 to 2016.
  • 36. 16 CHAPTER 3 COMPETITIVE INDUSTRY AND SERVICES SECTOR I. Assessment A. Investments, MSMEs and Exports Investments. Regional investments posted fluctuating trends with a high level at P6.49 billion in 2008. Investments started to drop in 2009 and reached its lowest level at PhP1.93 billion in 2010. By 2011, it started to recover and eventually reached PhP6.30 billion in 2012. MSMEs. Among the sources of growth for the region in 2010 to 2012 are multinational companies and various potential and emerging micro small and medium enterprises (MSMEs) that contributed to the increased levels of investments reaching a total of 8,013 MSMEs assisted. The assistance provided to the MSMEs or emerging firms are technology transfer and commercialization, testing and calibration services, technical trainings, packaging and labelling, market linkaging and consultancy services. Among the industry clusters assisted are information and communication technology, food, fishery, rubber and mining. These MSMEs generated a total of PhP1,865.043 million domestic sales by penetrating or linking to 86 new markets and providing a total of 27,626 jobs in the region. The top five MSMEs assisted are tourism related enterprises (25%), Information and Communication Technology-Business Process Outsourcing (ICT-BPO) (12%), bamboo entrepreneurs (11%), and banana and tuna entrepreneurs (8%). Exports. The trend in regional exports is also fluctuating but posted sustained increases in recent years. From a level of US$584.88 million in 2009, it decreased to US$544.14 million in 2009 and sustained an increasing trend in 2010 up to 2012 reaching a level of US$884.19 million. However, regional exports were less diversified since the region’s leading export products continue to be largely traditional. Most of the export products are canned tuna which posted the highest share at 29% (US$333.014 million), canned pineapple at 23% (US$265.035 million), and crude coconut oil at 20% (US$223.06 million) of the total exports value. TABLE 3.1 REGIONAL INVESTMENTS AND EXPORTS INDICATORS 2008 2009 2010 2011 2012 Investments (In Billion Pesos) 1 6.49 2.28 1.93 3.96 6.30 Export earnings (In Million Dollars) 2 584.88 544.14 632.38 815.59 884.19 Source of data: 1 DTI XII, 2 BOC-General Santos B. Industry Clusters The SOCCSKSARGEN region is endowed with varied resources with huge potential for developing fishery, agriculture, and forest related products. For the past years, the region focused on six (6) priority clusters that were developed. 1. Food a. Coffee Cluster. SOCCSKSARGEN region is blessed with the climate in which four (4) varieties of coffee (Robusta, Arabica, Excelsa and Liberica) could thrive and has a world class demand. The region is the number one producer of Robusta coffee in the country. The biggest market is Nestle Philippines. The coffee farmers are now into value adding and processing.
  • 37. 17 Producers have developed brands for roasted and ground coffee and acquired food safety standards from the Bureau of Food and Drugs (BFAD) allowing them to market the products at a much higher price. The small coffee farmers are now entrepreneurs with linkage to other medium and large scale buyers in the domestic markets. For the past three (3) years, various investment promotion road shows were conducted to package information on investment cost, market, programs of NGAs and NGOs and financing facilities which resulted in the establishment of community-based coffee processing facilities in Sultan Kudarat, South Cotabato, which generated PhP 21.86 million investments and PhP 19.135 million domestic sales. b. Muscovado Cluster. Muscovado is one of the emerging export industries of the region. An indirect exporter of muscovado was able to generate PhP 15.39 million investments for the establishment of a 20-ton muscovado mill in Sultan Kudarat and generated PhP 15.87 million domestic sales during the trade fairs, investment fora, and market facilitation. There are now three (3) big muscovado mills in Sultan Kudarat with a combined production capacity of more than 25 tons per day. c. Banana Cluster. Banana industry in the region is considered as one of the major focus industries due to the presence of various multinational company investors. Since 2010, the banana industry generated PhP 350 million investments from Del Monte and RNF Industries Corporation. The region’s banana industry has sustained its increasing demand both in foreign and domestic markets. It is also one of the industries that has a potential to support countryside development and to contribute in the attainment of inclusive growth. SOCCSKSARGEN region ranks as the third largest producer of Cavendish banana in the country and the leading producer of Lakatan for domestic market consumption. d. Mango Cluster. The mango industry of the region was able to develop one brand - the Mangolicious. However, its investment generation for the past year was lackluster since it only captured PhP10 million investments and generated PhP3.6 million in domestic sales. Given interventions for production up to market linkaging, the mango industry could be expected to prosper and to contribute to the economic growth of the region. 2. Fishery a. Tuna Cluster. The tuna industry shares 91% of the total directly impacted exports earnings of the region for the period 2010 to 2012. It is also one of the highly investment generating clusters and the highest earning commodity in the domestic market. The industry generated PhP92.5 million investments and PhP84.07 million domestic sales. b. Pangasius Cluster. The Pangasius fish is slowly penetrating the market due to its taste, availability of supply and affordability. It is suitable for processing or cooking into various menus because its taste and flavor are very dominant and patronized by gourmets. With the series of seminars, product development and branding, product research and trade fairs, pangasius farmer producers were matched and linked with companies in the region which used to import pangasius fillet. Networking with other markets generated PhP16.074 million domestic sales for the pangasius farmer producers. c. Bangus Cluster. The bangus cluster is another emerging industry cluster in the region. For the past years it has generated PhP 8.363 million worth of investments and PhP 6.128 million domestic sales. 3. Coconut Among the products largely produced in the region are coconut oil, copra and its by products and the coconut coir. To sustain the development of the industry the Philippine Coconut Authority (PCA) XII implemented a program involving the Indigenous Peoples (IPs) and rebel returnees. This program involves the provision of planting materials to the IPs and rebel returnees and a cash incentive of Twenty Pesos (PhP 20.00) per coconut seedling planted, grown and stabilized in the field. The 2013 operations involved a defined target area of 4,900 hectares, which is greater than the 2012 target of only 620 hectares. About 100 seedlings per hectare were provided by PCA from the North Cotabato Seed Production Center (NCSPC).
  • 38. 18 One of the coconut products in which the region is actively marketing is the coconut coir. In 2009 the region produced a total of 2,451 metric tons of coconut coir which is 17.4% to the total production of the country. Unfortunately in 2010, the volume of produced baling coir decreased by 5.2% because the two producing provinces (Sarangani and South Cotabato) experienced difficulty in the sourcing of coconut husk due to strong competition among other local producers in nearby region and the lack of areas where they can dry their fibers even during rainy days. 4. Wearable and Homestyle One of the products that belong to this industry is the T’nalak cloth. T’boli women had been weaving the native abaca (Manila hemp) cloth and dying it using centuries-old method wherein they derive natural dyes from the kenalum and loco trees. In weaving a T’nalak cloth, the weavers dream of the pattern and are guided by the symbols of their dreams. Weaving a 20-feet T’nalak cloth takes 75 days to finish and is done in a solemn environment free from distraction. A mistake in the process requires the weaver to repeat the whole process from the beginning. The T’nalak’s colors represent the qualities of its people. Red is for bravery, commitment and love, and black for the struggles and hard beaten-era of pioneers which developed among them a strong character and perseverance. Like the people of South Cotabato, the T’nalak was subjected to heat and beating process to achieve flexibility and better quality cloth. The T’nalak products bring new opportunity to indigenous women of the locality reaching the international fashion landscape and used as decorative materials and accessories due to its rare and exotic design. Tinalak weaving and the production of other tinalak products such as home decorations, jewelries, fashion accessories, beddings, blankets, bags, sandals, frames and upholstery are concentrated in the Municipality of Lake, South Cotabato. The T’boli women known as the “dream weavers” handcrafted these products which are marketed in the local, as well as international markets. The indigenous tinalak cloths are also exported to European markets for gowns and for home-use by making it part of ornamental designs. 5. Industrial Crops a. Oil Palm Cluster. The region’s oil palm cluster sustained the increase in production as well as in sales. Various marketing agreements were entered into by the farmer producers and the oil palm industry processor in the region. The industry was able to generate domestic sales of PhP72 million and PhP285 million of investment. With the increasing raw material production, the Kenram Industrial Development, Inc. (KIDI) established a 60-ton palm oil mill in Isulan, Sultan Kudarat. b. Rubber Cluster. The cluster is actively exporting rubber processed products such as natural crumb or sheet rubber, to Dunlop Korea and South Africa. The industry generated PhP338 million worth of investments. 6. Furniture and Woodcraft The potential of the bamboo cluster in the region is very high. As of the year 2012, it generated an investment of PhP15.540 million and domestic sales of PhP8.89 million. Engineered bamboo furniture is highly patronized in the region because of its quality and sophisticated design. However, there is no assurance of the availability of raw materials that can accommodate bulk orders. C. Tourism Industry The region’s tourism industry is a potential contributor to the service sector. It links the functions of travel agencies and tour operators with tour guides, transportation, food and accommodation facilities like hotels and resorts, the operators of tourist destinations or attractions and the organizers of events. While tourism is generally services in nature, it influences the upstream sector on manufacturing, like food processors for restaurants, craft or souvenir item producers for hotels or pasalubong centers, and other related products. The money spent by tourists in the region has multiplier effect in terms of income and jobs generated.
  • 39. 19 1. Tourist Arrivals and Hotel Occupancy Most data on tourist arrivals were taken from local government units where tourism is a significant industry. It could be noted that there is a big slump from the 2011 to 2012 due to data non-availability for some period. To address data gaps, the Department of Tourism XII (DOT) adopted a new scheme in measuring tourist arrivals in 2012. The procedure no longer includes day tourists or the excursionists but only those who are booked and have stayed at least overnight in hotels. TABLE 3.2 VISITOR ARRIVALS BY TYPE, 2010-2012 Actual Tourist Arrivals Growth Rate (%) 2009 2010 2011 2012 2009- 2010 2010- 2011 2011- 2012 AAGR (%) Visitor Arrivals 659,139 673,841 682,468 281,578 2.23 1.28 (58.74) (18.41) Local Tourist 652,283 665,344 674,940 268,901 2.00 1.44 (60.16) (18.90) Foreign Tourist 3,765 4,317 3,990 12,673 14.66 (7.57) 217.62 74.90 Overseas Filipino Workers 3,091 4,180 3,538 4 35.23 217.62 (99.89) (26.67) Average Hotel Occupancy Rate (%) 64.31 62.44 37.65 (99.89) (39.71) (21.30) AAGR – average annual growth rate Source of data: DOT XII At present, there are 106 travel agencies and tour operators in the region, together with media entities and travel bloggers, which promote the region’s destinations and attractions. In terms of transport, passengers can have access to three (3) airline companies that provide daily flights to and from Manila, Cebu and Iloilo. There are four (4) bus companies that ply the route from the region to Davao City and Cagayan de Oro City. Vans, jeepneys, and other utility vehicles could be contracted to take tourists to various tourism sites in the region. The region has also around 278 food and accommodation establishments like hotels, resorts and apartment hotels and 298 restaurants and food outlets that offer local and international cuisine. Of the total establishments, only 24 were given accreditation by DOT. 2. Tourist Attractions The Department of Tourism (DOT) in the region identified main attractions for each province/city. Cotabato Province and Kidapawan City boast of Mt. Apo as its main attraction while several falls and mountain resorts serve as natural attractions. Sultan Kudarat’s main attraction is agri-tourism where it showcases coffee processing, muscovado milling and palm oil processing and serving as enhancers are bird watching, spelunking in dozens of caves and the Muslim motif of its provincial capitol. South Cotabato banners Lake Sebu as cultural and adventure tourism with agri-tourism serving as enhancers. Sarangani claims to be the region’s pure adventure destination with paragliding, diving, river tubing, and water sports as its pride. General Santos City retains its being the tuna capital of the country as its main attraction. Cotabato City has always been known for its cultural values like inaul weaving, brassware making, and the grand mosque. 3. Existing Hotels and Restaurants The number of hotel rooms and restaurants in a locality is a good indicator of the capacity of an area to accommodate the influx of tourists and visitors. The overall economic growth of the region is shown in the rapid rise in the number of hotel rooms. General Santos City posted the highest number with 1,383, Koronadal City with 422 rooms, Kidapawan with 411 rooms, Cotabato City with 392, while Tacurong has the least with 139 rooms.
  • 40. 20 D. Competitiveness in terms of Economic Dynamism 1. Business Registration In terms of the number of annual business registrations (new and renewal), General Santos City has the most number with 8,793 total business registrations in 2012, followed by Cotabato City with 5,919, Koronadal City with 2,674, Kidapawan City with 2,037, and Tacurong City with 1,654. For business registrations (New and Renewal) covering the period January 2013, Koronadal City posted the most number of business registration with 2,554, followed by General Santos City with 2,500. Tacurong City had the least number of business registrants with 1,225. 2. Capitalization of Newly Registered and Renewal Businesses From January to December 2012, General Santos City recorded a total capital of PhP2,998,873,210.30 from newly-registered businesses. Koronadal City had PhP8,285,034,305.66, representing the highest number of total capital from new and renewal businesses for the region. This was followed by Kidapawan City with PhP4,049,931,439.10 and Tacurong City with PhP2,253,303,753.16. Cotabato City had PhP65,244,678.43. 3. Jobs created for new registration For 2012, the following are the number of jobs created in the cities: General Santos - 46,063; Koronadal - 5,329; Cotabato – 651; and, Kidapawan -168. Tacurong City was not able to submit. The large number of jobs created in General Santos City can be attributed to the equally large number of establishments which opened in the city in 2012, such as hotels and restaurants, plants and factories, malls, beach resorts, and agriculture, as well as poultry/hog industries. For January 2013, Cotabato City posted the highest number of new jobs created at 6,022. Kidapawan City posted the lowest at 243 new jobs. No data were provided by the cities of General Santos and Tacurong. 4. Cost of living The cost of living is defined as the monetary cost of maintaining a particular standard of living, usually measured by calculating the average cost of a number of goods and services. The cost of living is customarily measured by a price index such as the consumer price index. Measurements of change in the cost of living are important in wage negotiations. Cost-of-living measurements are also used to compare the cost of maintaining similar living standards in different areas. The cost of living standard in the region is based on the prevailing inflation rate. In 2012, Cotabato City posted the highest inflation rate among the cities in the region at 3.7%. This was followed by General Santos City at 3.2%, Kidapawan City at 3.0%, Koronadal City at 2.7%, and Tacurong City at 2.6%. 5. Productivity Increasing productivity can raise living standards because more real income will improve people's ability to purchase goods and services, enjoy leisure, improve housing and education and can contribute to social and environmental programs. Productivity growth also helps businesses to be more profitable. Local productivity as measured by the gross sales in revenue over the number of employed persons in the given area, the workforce in Kidapawan City recorded the highest productivity level at PhP24.106 million sales per employee. This is followed by General Santos City with PhP1.533million sales generated out of one employee. This is in contrast with the productivity level of an employee in Cotabato City which generated sales of only PhP7,644.54 per employee. For the cities of Koronadal and Tacurong, the productivity levels are more than PhP400, 000 per employee.
  • 41. 21 At the municipality level, the municipality of Carmen, Cotabato recorded the highest productivity level at PhP4.18 million per employee. The municipality of Malungon, Sarangani recorded the lowest productivity level at PhP131, 461.40 per employee. 6. Organized business groups The operation of several establishments in the region resulted to the creation of various workers and business organizations and associations which are industry-based or industry-related. In the key city category, General Santos City posted a total of 153 registered organized groups in 2012. This figure is more than triple that of Cotabato, with the second largest number of groups organized in the region with 49. The cities of Koronadal and Kidapawan have 44 and 31 organized groups/associations registered, respectively. Tacurong had the least number of organized groups with only 7. For the municipality level category, the municipality of Esperanza in Sultan Kudarat posted the most number of recognized organized groups with 60, followed by T’boli in South Cotabato with 55 organized groups, and Isulan in Sultan Kudarat with 53. The municipality of Polomolok in South Cotabato has 46 organized groups in part due to the strong presence of Dole Philippines, Inc., a multinational corporation operating in the area for decades, making the pineapple industry a dominant force in the local economy. 7. Economic Governance The economic governance score in Local Governance Performance Management System (LGPMS) provides a gauge on entrepreneurship, business and industry promotion. The LGPMS system is a self- assessment, management and development tool that enables local governments to determine their capabilities and limitations in the delivery of essential public services. The five cities of the region received varied scores in LGPMS economic governance on entrepreneurship, business and industry promotion. Tacurong City garnered the highest with 4.67, followed closely by Cotabato City with 4.61, Kidapawan City with 4.46, and Koronadal City with 4.04. General Santos City posted the lowest score with 3.94. Among the municipalities, Midsayap in Cotabato Province recorded the highest score at 5.0, followed by the municipality of Surallah in South Cotabato at 4.95. Among the largest municipalities, Isulan in Sultan Kudarat had the lowest score of 2.60. For municipalities not belonging to the 3 largest, Columbio in Sultan Kudarat had the lowest score in economic governance at 3.4. E. Consumer Welfare Awareness The Department of Trade and Industry (DTI) is mandated to create a business-friendly environment conducive for growth of enterprises and supportive of fair and robust trade in goods and services in the region. Its mandate focuses on the promotion of consumer welfare and protection of consumer rights. Among the assistance extended to consumers include enforcement of trade and industry laws, action on consumer complaints, and formation of consumer groups. Based on the result of the most recent evaluation conducted by the agency, more than 50 percent of SOCCSKSARGEN business establishments passed the government evaluation for responsible entrepreneurship and management consumer rights and protection awareness. The evaluation process recognized business entities actively involved in protecting consumers’ rights and welfare. As of September 2013, out of the 12,000 registered establishments in the region only 60 awarded the “BAGWIS” seal as proof that they provide customer-friendly products and services. The Bagwis seal, formerly known as the DTI Certified Establishment Program (CEP), gives recognition to exemplary business establishments that uphold customer rights and welfare, foster ethical business practices, and practice self-regulation. Entrepreneurs assessed under the program were evaluated based on the following criteria: presence of consumer welfare desk or recognized customer service counter, compliance to fair trade laws, practicing social responsibilities, and complying or aligning to International Standards. Of the 60 awardees, four were given silver “Bagwis” seal, namely: Soc Hardware of Sarangani Province, Ntrprising Motor Corp., Honda Cars General Santos Inc., and MTL Gensan Motors Inc.
  • 42. 22 II. Development Challenges A. Low economic productivity 1.1 Low level of investments and exports  Inadequate processing facilities that are accessible to the production sites  Constraints brought about by development policies, as non-quantitative restrictions like compliance to international product standards and food safety that could impede the free flow of goods and services in the market  Limited financial capacities of MSMEs, since they could not access, infuse and acquire technology, establish product standards and information system, comply with local and national quality standards).  Regional exports that remain traditional and less diversified 1.2 Limited tourism options  Limited tourism product packages and promotions, and tourism products/events are not packaged that could cater to the needs of tourists.  Underdeveloped tourist destinations  Poor connectivity from one tourism site to another, weak or limited access to tourism sites/tourist destinations and road networks to tourism areas are not yet developed. B. Need to improve competitiveness of regional industry and services The region is still behind in terms of competitiveness in industry and services compared with other regions in the country. Only Koronadal City and the municipality of Surallah, South Cotabato were included in the most competitive ranking in the country. In terms of economic dynamism competitiveness, the cities of General Santos, Koronadal, and Kidapawan and the municipalities of Surallah, South Cotabato and Isulan, Sultan Kudarat are included in the top ten. The SOCCSKSARGEN region competitiveness will be challenged with the impending ASEAN Integration by 2015. The region has to be prepared to meet the competitive challenges when trade barriers in the ASEAN region are lifted to allow the free flow of goods and services. The development of potential opportunities for the ASEAN Integration increases the vulnerabilities of the region’s products to foreign competition and exposure to market risks. One vulnerable sector is the agribusiness industry where productivity targets will contribute to self-sufficiency and the surplus growth for export are found wanting. Despite the opportunities from Free Trade Agreements, the region’s producers continue to be weighed down by the abundance of unresolved issues that competing nations have already overcome. The region must plan to mitigate the risks posed by cheap products and services and to strengthen our competitive advantage. There is also a need to improve the difficult and lengthy business registration and regulation at the LGU level which the MSMEs and other entrepreneurs have difficulty in complying. C. Need to increase consumer welfare awareness of their rights and responsibilities and satisfaction of quality goods and services Of the total 12,000 various businesses registered with DTI XII, only 0.5% were able to comply and to consider the protection and promotion of consumer welfare and awareness. This shows that the region’s population is not fully aware of their rights and responsibilities in terms of consumer welfare.
  • 43. 23 III. Development Goals and Strategic Outcome The region recognizes the primary roles of MSMEs in making the Industry and Services sectors more competitive. To ensure the development of MSMEs and enhance their productivity, the Industry Clustering Strategy shall continue to be adopted. This strategy is a goal-oriented cooperation of producers and industry players to find and to respond to business opportunities not normally accessible to individual players. It is a private sector-led and government-supported initiative that promotes private and government collaboration. A. Increase economic productivity a. Increase the level of investments and exports 1. Broadening and deepening the export base and intensifying investment promotion on the establishment and upgrading of infrastructure facilities for priority industry (processed food-banana, coffee, mango and muscovado, fishery-tuna, pangasius and bangus, wearable and homestyle - T’nalak cloth, processed coconut products-copra meal/cake and coconut coir, furniture-engineered bamboo and woodcraft and mining) 2. Strengthening LGU alliances and establishing economic zones. 3. Providing assistance and support to MSMEs in the following areas:  Access to credit and financing (e.g. LGU financing assistance, technical assistance/capability building to MSMEs and existing cooperative to access credit/capital from financing institutions, increase/provide additional credit windows)  Access to available technologies and technological services to improve product quality and competitiveness;  Market linkages in promoting and selling their products (e.g. access/linkages to international markets);  Support to exporting industries and SMEs through trade negotiations, promotion and development of products for globalization;  Development of other emerging industry clusters/groups (e.g. processed foods like spices).  Priority S&T interventions based on the market niches and industry clusters by providing support to MSMEs, strengthening linkages, partnerships and networking to stakeholders.  Support to the Halal industry to open opportunity for the region to access the continuously growing Halal world market.  Capability building for MSMEs and existing cooperative to become self-reliant and more competitive (e.g. trainings on managerial/entrepreneurship skills, organizational development).  Promotion of employment and protection of basic rights of workers and accompanied by adequate social safety nets to protect the vulnerable workers. b. Increase tourist arrivals To increase tourist arrivals and to attract tourism investments, the DOT XII shall focus their interventions on the tourism value chain specifically in developing and marketing competitive tourism products, improving market access, connectivity and destination infrastructure and improving tourism institutions, governance and human resource capacities as well as working collaboratively with other government sectors in the area. Specific strategies to be implemented to the next few years are as follows: 1. Developing and marketing competitive tourist products  Development of diversified product portfolio linked to a strategic and prioritized destination and strengthened road/sea tourism circuit framework  Raising the standards of facility and services, and facilitate tourism investment especially in accommodation and lower business costs