BIMP-EAGA: Unknown and Unheard Of

Probably many people don't know about or have never heard of BIMP-EAGA.

BIMP-EAGA is an economic bloc/cooperation initiative that stands for Brunei-Indonesia-Malaysia-Philippines-East ASEAN Growth Area, and is called "East ASEAN Growth Area" in Japanese.

Although I am often involved in projects in Southeast Asia, I embarrassingly did not know BIMP-EAGA or how to pronounce it. I became aware of it for the first time when the project in Brunei started. It is pronounced "Bimp-Earga."

As indicated by its initials, BIMP-EAGA is an economic bloc consisting of Brunei, Indonesia, Malaysia, and the Philippines, as shown in Figure 1 on the map. You can see that it is the economic bloc on the eastern edge of ASEAN.

Figure 1. Map of BIMP-EAGA

Source: Data from the Consulate-General of Japan in Davao (https://www.davao.ph.emb-japan.go.jp/files/100151779.pdf)

Overview of BIMP-EAGA: Four Times the Japan's Area, with a Population Slightly Under 80 Million

BIMP-EAGA was established in 1994 and has a history of nearly 30 years. It aims to promote the growth of trade, investment, and industry (agriculture and tourism) through the development of infrastructure (transportation and electricity) within the region. It also cooperates in the environmental, social, cultural, and educational fields.

The relevant areas include the entire nation of Brunei Darussalam, Indonesia's Kalimantan, Sulawesi, Maluku, and West Papua, Malaysia's states of Sabah and Sarawak as well as the Federal Territory of Labuan, and Mindanao Island and Palawan Province in the Philippines.

Even though the whole country of Brunei is included, it is a small country with a land area of 5,765 km² (about the same size as Mie Prefecture) and a population of 437,500. For Indonesia, Malaysia, and the Philippines, it pertains to areas that are far from the capitals and have small populations. The total land area of BIMP-EAGA is 1.6 million km² (4.2 times that of Japan, and one-third of the ASEAN region), but the population is approximately 79.84 million, which is relatively small.

The Economy is Still Small but Expanding Steadily

The economic scale, as of 2020, had a GDP of $322.8 billion, which is not particularly large. For reference, the U.S., ranked first in GDP by country, is at $20.8938 trillion, China at $14.8667 trillion, and Japan at $5.051 trillion, while Bangladesh ranks 42nd with a GDP of $323.0 billion, similar to BIMP-EAGA.

However, since its founding in 1994, the BIMP-EAGA economy has been growing steadily, with a GDP of $322.8 billion in 2020, which represents a 112.36% increase from $287.3 billion in 2017, showing double-digit growth. Despite being affected by the COVID-19 pandemic, direct foreign investment in 2020 was quite strong at $12.8 billion (up 132.0% from the previous year), and domestic investment was $9.2 billion (up 133.3% from the previous year), indicating it is an attractive economic zone with high interest from investors.

Infrastructure Projects Progressing in the Region: The Temburong Bridge has been Crossed

Many infrastructure projects involving BIMP-EAGA are ongoing, amounting to a scale of $24.23 billion as of October 2021. One example is the completion of the Temburong Bridge in Brunei in March 2020. This large bridge, covering 30 km², has improved significantly the access between the capital Bandar Seri Begawan and the Temburong enclave (an attractive area rich in nature that is progressing towards becoming a smart city). Our staff visited Brunei in July 2021 and crossed the Temburong Bridge. We will also introduce some local scenery and videos (Figures 2-6).

Figure 2. Map of Temburong and Temburong Bridge

Source: Created by our company based on Wikipedia's map

Figure 3. Image of Temburong Bridge

Source: ERIA Full Report – Formulation of Temburong Eco Town

Figure 4. Brunei Business Trip ①: Entrance to Temburong Bridge on the Bandar Seri Begawan side

Figure 5. Brunei Business Trip ②: Crossing the Temburong Bridge

Figure 6 Nature in Brunei: When I participated in a waterfall climbing tour

Reference: Video of Crossing the Temburong Bridge / YouTube by Hiroshi Okouchi

The Appeal of BIMP-EAGA: Nature as a Touristic Resource

BIMP-EAGA has a small population and a still small economy, but as can be seen from the landscapes of Temburong mentioned earlier, it is a region rich in nature and tourist attractions. Within BIMP-EAGA, there are abundant tourist resources, including Kota Kinabalu, the capital of Sabah state in Malaysia known for Mount Kinabalu and marine resorts, and Palawan Island in the Philippines, which is said to be the most beautiful island in the world.

Attention to the Relocation of Indonesia's Capital to Within BIMP-EAGA

On January 18, 2022, the Indonesian Parliament passed a resolution that will allow the relocation of the capital from the current state of Jakarta to East Kalimantan, which is included in BIMP-EAGA.

Due to serious overpopulation and traffic congestion in Jakarta, the Indonesian government plans to develop 250,000 hectares of forests in East Kalimantan, with the transfer of capital functions starting sequentially from 2024. The new capital will be named "Nusantara," which means "archipelago" in Indonesian (see Figure 1 for the location of the new capital). Indonesia is the world's fourth-largest country with a population of 270 million. The fact that the new capital will be relocated within BIMP-EAGA, aligning with the name Nusantara = archipelago, is intriguing as BIMP-EAGA is also an archipelago.

In 2022, it will be interesting to focus on the archipelago and BIMP-EAGA power, and you might find yourself saying, "Don't you know about BIMP-EAGA? It's a region worth paying attention to!"