TABLE OF CONTENTS
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Macroeconomic Performance . Inflation and Consumer Price Index Purchasing Power of Peso . Labor and Employment .
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II. Agriculture, Forestry and Fishery Sector Performance Crops . . . . . . Palay . . . . . . Rice Stock Inventory . . . . Corn . . . . . . Major Fruits . . . . . Vegetables and Root Crops . . . Non-food and Industrial and Commercial Crops . Livestock and Poultry . . . . . Fishery . . . . . . Forestry . . . . . .
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III. Trade and Industry Services Sector Performance Business Name Registration . . . Export . . . . . . Import . . . . . . Manufacturing . . . . . Mining . . . . . .
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IV. Services Sector Performance Financing . . Tourism . . Air Transport . . Sea Transport . . Land Transport .
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V. Peace and Security
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VI. Development Prospects
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MACROECONOMIC PERFORMANCE Inflation Rate Caraga Region’s inflation remained high in the last quarter of the year, which is pegged at an average of 5.3 percent. This represents a 3.2 percentage points higher than the inflation on the same period in 2017 of 2.2 percent. However, the region’s average inflation of 4.2 percent for 2018 was lower than the national average of 5.93 percent. The region’s inflation reached its peak in October 2018 at 6.2 percent from 4.4 percent in July. Incidentally, it slowed down in the last two months of the year, which settled at 4.2 percent by the end of December. This can be attributed to the stabilization in the price index of education and the decline in the price indices of food and non-alcoholic beverages (0.76 percent) and transportation (-0.40 percent). The deceleration in the price index of transport commodity group provided a drip in the prices of basic commodities in the market,
which was ascribed to the successive rollbacks in the prices of fuel due to the decline in the prices of fuel in the global market, as well as the subsidy provided by the government through the Department of Transportation under the Pantawid Pasada Program (3Ps). On the other hand, subsidizing the education sector through the implementation of Republic Act No. 10931, otherwise known as the “Universal Access to Quality Tertiary Education Act,” even out the cost in education during the period. Among the provinces, Surigao del Sur exhibited the lowest inflation rate at an average of 4.4 percent during the period. The provinces of Dinagat Islands and Surigao del Norte displayed higher inflation rates, even higher than the national average, with 8.2 percent and 7.2 percent, respectively.
Figure 1.0 Monthly Inflation Rates 4th Quarter 2017 vs 4th Quarter 2018
Source: PSA
Consumer Price Index The average price index for all items of basic commodities in the region, as measured in terms of Consumer Price Index (CPI), declined in the last quarter of 2018 by 33 percent. This was attributed to the stabilization in the cost of the education cost as well as the drop in the price indices of food and non-alcoholic beverages by 0.70 percent and transportation by 0.40 percent.
However, the year-on-year comparison in the average price index for all items of basic commodities generally increased by 5.32 percent from 113.47 points in Q4 2017 to 119.50 points of the same period in 2018. On a quarterly basis, there was a minimal increase of roughly 1 percent in the average price index of the region’s basic commodities from Q3 to Q4 of 2018.
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The prices of basic commodity groups in the provinces indeed increased following the expansion in the local inflation rates. The provinces of Dinagat Islands and Surigao del Norte experienced a substantial increase in the average price indices of the basic commodity groups in the last quarter of 2018 against the same period in 2017 with 8.18 percent and 7.19 percent, respectively. The considerable increase of 1.11 percent in the price index of
transportation commodity group in Q4 2018 in the province of Dinagat Islands dragged the gains generated particularly in food commodity group. On the other hand, the increase in the average price of basic commodities in Surigao del Norte was largely attributed to the increase in the prices of communication (1.21 percent), alcoholic beverages and tobacco (0.88 percent) and transportation (0.52 percent).
Figure 2.0 Monthly Consumer Price Index (CPI) 4th Quarter 2017 vs 4th Quarter 2018
Source: PSA
Purchasing Power of Peso The region’s purchasing power of peso (PPP), which is a measure of the real value of the peso in a given period, has weakened on a year-onyear basis. Apparently, the expansion in the region’s inflation rates squeezed the PPP to settle at an average of 0.84 to a peso in Q4 2018. This represents a 5.6 percent reduction from an average of 0.88 centavos to 1 peso of the same period in 2017. This implies that Caraganons could only buy PhP84 worth of goods for every PhP100 based on 2012 constant prices.
Figure 3.0 Monthly Purchasing Power of Peso 4th Quarter 2017 vs 4th Quarter 2018
Source: PSA
Labor and Employment The estimated data released by PSA as of October 2018 showed that the region’s labor force increased by 2.70 percent to reach 1.90 million as against the 1.85 million in the same period in 2017. However, labor force participation rate slightly shrunk by 0.3 percentage point to settle at 62 percent during the assessment period. The region’s employment rate also dropped by 0.3 percentage point to end at 96.0 percent in
October 2018 as compared to 96.3 percent in the same period in 2017. This has caused a marginal growth in the region’s unemployment rate, which rose by 0.3 percentage point during the period. On the other hand, the region’s underemployment rate declined by 1.3 percentage points in October 2018 to rest at 21.4 percent as compared to 22.7 percent in the same period in 2017.
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Table 1.0 Labor and Employment, Caraga Region 4th Quarter 2017 vs 4th Quarter 2018
Indicator Labor Force Labor Force Participation Rate Employment Rate Unemployment Rate Underemployment Source: PSA
Q4 2017 1.85 Million 62.3 96.3 3.7 22.7
Q4 2018 1.90 Million 62.0 96.0 4.0 21.4
Percent (%) Change 2.70 (0.3) (0.3) 0.3 (1.3)
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AGRICULTURE, FORESTRY AND FISHERY SECTOR PERFORMANCEBOR AND EMPLOYMENT Crops Palay Figure 4.0 Palay Volume of Production, Area Planted and Yield 4th Quarter 2017 vs. 4th Quarter 2018
Overall, the region’s palay commodity performed well in Q4 2018 with 2.13 percent increase in the volume of production from 172,705 MT in Q4 2017 to 176,384 MT. The huge growth of 38.04 percent in the volume of palay production in Surigao del Norte compensated the decline in the palay production in Agusan del Norte by 10.27 percent and Surigao del Sur by 19.84 percent. The palay production in the last two (2) provinces fell due to the reduction in the area harvested. Palay production in Agusan del Sur surged by 6.19 percent from 107,279 MT in Q4 2017 to 133,920.50 MT of the same period last year. The province contributed approximately 65 percent of the total palay production in the region. In Q4 2018, areas planted to palay totalled to 56,824 hectares. This represents a 1.9 percent increase from 55,767 hectares area planted in the same period of 2017. Among the provinces, Agusan del Sur has the biggest area planted to palay comprising 66.10 percent of the aggregate area harvested of the region. On the average, the region’s palay yield remained at 3.10 MT/ha by the end of 2018. Highest palay yield was noted in Agusan del Norte with 3.52 MT/ha in Q4 2018, which was slightly lower from its yield in Q4 2017 of 3.55 MT/Ha. Surigao del Norte followed with 3.32 MT/Ha, which was a little higher that its produce in Q4 2017 of 3.22 MT/Ha. On the other hand, palay yield in Surigao del Sur and Dinagat Islands decreased in Q4 2018 by 3.16 percent and 3.76 percent, respectively.
Source: PSA
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Rice Stock Inventory The NFA Caraga recorded an improved rice stock inventory in the region with 119,067 bags in Q4 2018, which represents 267.57 percent more than what the agency procured and stocked in the same period of 2017. This was attributed to the arrival of imported rice acquired by the government from Thailand. The stocks of procured locally produced palay, comprising of 4,689 bags, significantly increase in Q4 2018 as against 40 bags in the same period in 2017 due to additional buffer stocking incentives implemented by the agency. About 53.91 percent of these locally procured palay were coming from Agusan del Sur.
Corn The corn commodity exhibited an increase of 13 percent in its volume of production in Q4 2018 from 64,333 MT of the same period in 2017. Except for Agusan del Norte, which production plunged by about 13 percent, the rest of the provinces displayed a surge in the quantity of corn produced. A significant increase of 60.4 percent was noted in the province Dingat Islands, which was due to the expansion in its crop area harvested by roughly 38 percent. In terms of volume of production, Agusan del Sur accounted for roughly 78 percent of the region’s total corn production.
Figure 5.0 Rice Stock Inventory 4th Quarter 2017 vs 4th Quarter 2018
Source: NFA Caraga
Figure 6.0 Corn Volume of Production, Area Harvested and Yield 4th Quarter 2017 vs 4th Quarter 2018
As of Q4 2018, the region’s total area planted to corn covered 19,073 has. This represents a 10.7 percent growth from the recorded area harvested in Q4 2017 of 17,227 has. The largest area planted with corn was located in Agusan del Sur, which represents approximately 76 percent of the region’s aggregate area planted with corn in Q4 2018. Corn yields, though differed across provinces, were slightly up in Q4 2018. Among the provinces, Agusan del Norte has the highest yield of 4.31 MT/ha. in Q4 2018 with Dinagat Islands having the lowest yield of 1.70 MT/ha.
Source: PSA
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Major Fruits Among the major fruits produced in the region are banana, calamansi, mango and pineapple. The PSA data showed that the aggregate volume of production of said commodities slightly fell by 2.24 percent in Q4 2018, which ended at 81,790 MT as against the 83,668 MT in the same period in 2017. The quantity produced for banana and calamansi commodities shrunk by 2.53 percent and 5.36 percent, respectively. The expansion in the productions of mango with 2.51 percent and pineapple with 5.63 percent were unable to offset the drop in the volume of production for banana and calamansi.
Vegetable and Root Crops
Figure 7.0 Major Fruits Production 4th Quarter 2017 vs 4th Quarter 2018
The aggregate volume of production for vegetable commodities in the region increased by 7 percent during last quarter of 2018, which summed up to 2,133 MT as compared to 1,993 MT in the same period of 2017. The substantial surge in peanut production by 22.9 percent compensated the decline in mongo production by 3.2 percent. Eggplant production contributed the biggest share, which comprised 82.56 percent of the aggregate vegetables produced in the region. On the other hand, the total production of root crop commodities decreased by 5.70 percent from 21, 095 MT in Q4 2017 to 19,8942 MT in Q4 2018 due to lower produce generated for sweet potato by 9.37 percent.
Source: PSA
Figure 8.0 Vegetables and Root Crops Production 4th Quarter 2017 vs 4th Quarter 2018
Source: PSA
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Non-food Industrial and Commercial Crops
Figure 9.0 NFICC Volume of Production by Commodity 4th Quarter 2017 vs 4th Quarter 2018
The volume of production for all non-food industrial and commercial crops (NFICC) increased in Q4 2018 at an average of 5.23 percent from 209,550 MT in the same period of 2017. Rubber commodity, which comprised 1.97 percent of the total NFICC production, exhibited the highest upsurge of 20.08 percent. Coconut contributed the biggest share comprising 96.80 percent of the region’s NFICC output.
Livestock and Poultry
Source: PSA
Poultry production performed well in Q4 2018, which rose by 10.60 percent from 5,204 MT of the same period in 2017. This was attributed to the substantial increase in the volume of production for all poultry products, particularly the chicken eggs with 101.67 percent. The chicken products comprised approximately 96.80 percent of the total poultry production.
On the other hand, livestock production declined by 3.8 percent during the last quarter of the year as compared the same period in 2017. The drop was ascribed to the decline by 28.7 percent in the region’s cattle production. For the past several years, the region has been a net importer on livestock products.
Figure 10.0 Livestock an Poultry Production 4th Quarter 2017 vs 4th Quarter 2018
Source: PSA
Fishery Fishery production grew despite the reduction in the fish catch of commercial fishing in Q4 2018. The aggregate quantity output for fishery products exhibited a 6.6 percent increase, producing a total fish catch of 21,080.82 MT during the period as compared to the yield generated in the same period in 2017 with 19,779.28 MT. Inland and aquaculture fishing displayed the largest
increase in fish production by 29 percent and 15.4 percent, respectively. The surge in inland and aquaculture fish production offset the drop of 3.7 percent in commercial fishing output. The municipal fishing, which yield increased by 3.4 percent, contributed the biggest share of 61,87 percent in the region’s aggregate fishery output in Q4 2018.
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Figure 11.0 Fishery Production by Type of Fishing 4th Quarter 2017 vs 4th Quarter 2018
Source: PSA
Forestry The region has been tagged as the Philippines’ Timber Corridor, supplying approximately 70 percent of the country’s aggregate log production. However, the implementation of Executive Order No. 23, declaring a moratorium in the harvesting of natural grown and residual forests all over the country, has adverse impact on the wood industry in the region.
from 120,746 cu.m. in the same period of 2017. Among the provinces, Agusan del Norte posted the highest increase in log production by 53.8 percent from 7,442 cu.m. in 2017. On the other hand, log production of Surigao del Norte dropped by 10.16 percent from 4,827 MT in 2017 to 4,337 in 2018. Agusan del Sur contributed majority of the region’s log production with 65.13 percent share, which is followed by Surigao del Sur with 23.61 percent.
Nonetheless, the region’s aggregate log production grew by 16.1 percent in Q3 2018 Figure 12.0 Log Production by Province 3rd Quarter 2017 vs 3rd Quarter 2018
Source: DENR-FMB
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TRADE AND INDUSTRY SERVICES SECTOR PERFORMANCE Business Name Registration The data generated by DTI Caraga on new business name registered at the local level through the agency’s Business Name Registration System (BNRS) exhibited an increase of 15.31 percent resulting in a total of 610 new business name registered in Q4 2018 as compared to 529 new business name registered in the same period of 2017. About 60 percent of the new business name registered were generated in Surigao del Norte. The significant increase in the number of new business name registered was attributed to the continued effort of DTI Caraga on the establishment of Negosyo Center at the local level and persistent visitation and advocacy activities conducted by the agency with local establishments to register in the BNRS. Consequently, a total of 898 jobs created in Q4 2018 from the newly registered businesses, doubling the jobs generated in the same period
of 2017 with 440 jobs. Surigao del Sur recorded the biggest share, comprising roughly 66 percent of the total jobs generated in the region during the period. Moreover, DTI Caraga recorded a total of PhP 21.47 Million domestic sales in Q4 2018. This represents a big improvement by 229.8 percent of the agency’s recorded domestic sales in the same period of 2017, which generated a total of PhP6.51 Million. A significant increase in generated local investments was also noted in Q4 2018 as recorded by the agency amounting to PhP 7.42 Million as against the PhP0.30 Million generated in the same period of 2017. The DTI Caraga ascribed this growth in local investments to the expansion in the capitalization of existing businesses and the number of new business name registered.
Table 2.0 New Business Name Registered and Jobs Generated 4th Quarter 2017 vs 4th Quarter 2018
Province ADN ADS SDN SDS PDI Caraga Source: DTI Caraga
New Business Name Registered 4th Qtr. 2017 4th Qtr. 2018 % Change 328 179 22 529
361 218 31 610
4th Qtr. 2017
Jobs Generated 4th Qtr. 2018
% Change
143 271 26 440
264 597 37 898
84.62 120.30 42.31 104.09
10.06 21.79 40.91 15.91
Table 3.0 Investments and Domestic Sales 4th Quarter 2017 vs 4th Quarter 2018
Province ADN ADS SDN SDS PDI Caraga Source: DTI Caraga
Domestic Sales (In PhP Million) 4th Qtr. 2017 4th Qtr. 2018 % Change 5.48 0.33 0.70 6.51
4.64 15.90 0.93 21.47
(15.3) 4,718.90 32.90 229.8
Investments (In PhP Million) 4th Qtr. 2017 4th Qtr. 2018 % Change 0.30 0.30
-
-
6.82 0.42 7.42
40.0 2,373.0
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Export Based on the data released by PSA, the region’s volume of exported products declined by 6.79 percent in Q3 2018 resulting to an aggregate volume of 10.04 billion kilograms as compared to the 10.77 billion kilograms in the same period of 2017. The drop in the volume of exported products was attributed to the decrease in the shipment of nickel ores, banana chips and coconut and its by-products. The bulk of the region’s exported products, comprising roughly 99 percent, were mineral ores primarily nickel ores. Mineral ores in the region were transported to China and Japan for processing. The remaining 1 percent of the exported commodities comprised of agricultural products mostly coconut and its by-products and banana, which were exported to North and South American countries, Europe and other Asian countries. Banana chips are exported mainly to developed countries such as Canada, Denmark, France, Germany, Netherlands, Switzerland and the United
Figure 13.0 Export Volume and Value 3rd Quarter 2017 vs 3rd Quarter 2018
Source: PSA
States of America. Despite the lower volume of exported products, the aggregate free on board value of exported products rose by 8.27 percent in the Q3 2018 amounting to US13.39 Million as compared to US13.03 Million in the same period of 2017. This was due to higher value of unwrought products (mineral ores) and other exported products.
Import The region also engaged in the importation of some commodities such as rice, slaked lime, coal, washers and methanol. The volume of imported products went down by 32.19 percent, which totalled to 139.86 billion kilograms in Q3 2018 from 206.25 billion kilograms in the same period of 2017. However, the aggregate value of imported products increased by 2.77 percent from US$13.03 million in Q3 2017 to US$13.39 million of the same period last year due to the rise in the prices of methanol, rice and other imported products as affected also by the weakening value of the Philippine Peso. These imported commodities originated from Thailand, Korea, Indonesia, Malaysia, Vietnam, Russian Federation and China.
Figure 14.0 Import Volume and Value 3rd Quarter 2017 vs 3rd Quarter 2018
Source: PSA
Manufacturing Based on the data of DENR Caraga, there are only 34 wood processing plants operating in the region since the implementation of
Executive Order No. 23 in the early part of 2011, which declared a moratorium in the harvesting of natural grown and residual 10 | P a g e
forests. The manufactured products in the region comprised mostly of wood-based products such as plywood, veneer and lumber. Overall, the aggreggate quantity output of wood-based manufactured products in the region significantly increased by 34.6 percent in Q3 2018, generating a total volume of 74,754.93 cu.m. as compared to the output in the same period of 2017. The notable expansion in the plywood production by 77.22 percent, which comprised 63 percent of the total volume of the manufactured wood-based products in the region, offset the decline in lumber production by 6.31 percent. The wood-based manufactured products were produced mainly in Agusan del Norte, Agusan del Sur ang Surigao del Norte. Of these
Figure 15.0 Wood Manufactured Products 3rd Quarter 2017 vs 3rd Quarter 2018
Source: DENR-FMB
provinces, Agusan del Norte contributed 86.9 percent of the region’s total quantity output of wood-based manufactured products. Agusan del Sur followed with 10.1 percent share.
Mining Mining is one of the economic drivers in the region. As of end of December 2018, MGB Caraga recorded a total of 15 operating mining companies in the region. The mineral products found in the region are nickel, iron and gold. Some of the local nickel ores are transported and processed as semi-finished product in Taganito High-Pressure Acid Leaching (THPAL) processing plant located in Claver, Surigao del Norte. However, the bulk of the region’s nickel ores have been shipped out to China and Japan for processing. As of Q3 2018, the region’s total number of shipment of mineral ores declined by 9.81 percent from 265 shipments in Q3 2017 to 239 shipments in the same period of 2018. Surigao del Norte topped the region’s overall shipment comprising 47.28 percent of the total volume shipped out to foreign countries. It was followed by Surigao del Sur with 31.38 percent. The mineral ores shipments from the provinces of Surigao del Norte and Dinagat Islands increased by 5.61 percent and 66.67 percent, respectively. However, such increases were not able to compensate the substantial decline in the number of shipments in the province of Agusan del Norte and Surigao del Sur by 72.73 percent and 21.05 percent, respectively. Gold production in the region dropped by 68.43 percent, while nickel ore and cobalt mixed sulfide eked out a tenth of a percent in Q3 2018
as compared to the same period in 2017. Agusan del Sur, the only large-scale gold producing province, yielded a lower quantity output in Q3 2018 that summed up to 10,505 ounces of gold against the 33,274 ounces produced in the same period of 2017. Meanwhile, mineral production in the provinces of Surigao del Norte and Dinagat Islands rose by 30.01 percent and 57.29 percent, respectively. However, Agusan del Norte and Surigao del Sur production plummeted by 72.19 percent and 22.08 percent, respectively. 11 | P a g e
In particular, mineral ores production in Agusan del Norte dropped due to the stop operation of SR Metal Inc., which has long been under maintenance care. Consequently, the aggregate actual gross value of the shipped out minerals from the region shrunk significantly by 23.97 percent from PhP15.6 Billion in Q3 2017 to PhP11.89 Billion of the same period last year. Except for the Province of Dinagat Islands, which generated a 2.10 percent increase in its actual gross value, the rest of the provinces were experiencing a significant drop in income generated from shipped out mineral products. The excise tax generated from mining development almost doubled, gaining by 91.86 percent or PhP228 million more in Q3 2018 as compared to the collected tax during the same period in 2017. The increase in the generated excise tax was attributed to the implementation of new excise tax rate from 2 percent to 4 percent pursuant to the new TRAIN Law. Surigao del Norte generated the biggest chunk in the collected excise tax, comprising roughly 60 percent of the total collection. The excise
tax of the province significantly jumped by 165.6 percent in Q3 2018. Similarly, the provinces of Dinagat Islands and Surigao del Sur also posted improved excise tax payment by 104.21 percent and 93.68 percent, respectively. However, Agusan del Norte and Agusan del Sur provinces recorded a drop in the provinces’ excise tax by 51.89 percent and 35.05 percent, respectively. On the other hand, royalty tax collected from mining operations in the region increased by 24.27 percent or its equivalent of PhP104 Million in Q3 2018 as compared to the Q3 2017 collected tax. All provinces achieved an increase in royalty tax collection with Surigao del Norte in the top generating PhP332 Million, or an increase of 32.80 percent. Surigao del Sur and Dinagat Islands posted upsurges in royalty tax by 17.62 percent and 2.10 percent, respectively. No royalty tax were recorded in Agusan del Norte and Agusan del Sur since the provinces have no declare mineral reservation areas. The 5 percent royalty tax will only be collected from mining companies operating within the declared mineral reservation area.
Table 4.0 Volume of Mineral Production by Commodity 3rd Quarter 2017 vs 3rd Quarter 2018 Minerals Gold and Silver (oz) Nickel Orde and Cobalt Mixed Sulfide
Q3 2017 33,274.376 13,893,381.61
Volume Q3 2018 10,505,302 13,908,629.90
Gross Value (PHP Million Pesos) Q3 2017 Q3 2018 % Change 1,781.85 578.66 (67.52) 13,855.43 11,310.22 (18.37)
% Change (68.43) 0.11
Total
15,637.28
11,888.88
(23.97)
Source: MGB Caraga
Table 5.0 Excise and Royalty Taxes 3rd Quarter 2017 vs 3rd Quarter 2018 Province ADN ADS SDN SDS PDI Total Source: MGB Caraga
Excise Tax (In PhP) Q3 2017 Q3 2018 22,766,226.84 10,953,239.31 35,637,087.11 23,146,319.96 24,360,931.59 49,746,458.71 100,018,367.56 265,651,062.72 65,087,353.95 126,058,071.88 247,869,967.05 475,555,152.58
% Change (51.89) (35.05) 104.21 165.60 93.68 93.68
Royalty Tax (In PhP) Q3 2017 Q3 2018 60,902,328.98 62,183,073.38 250,045,918.92 332,063,828.40 117,709,118.51 138,447,781.97 428,657,366.41 532,694,683.75
% Change
2.10 32.80 17.62 24.27
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SERVICES SECTOR PERFORMANCE Financing The data of BSP Caraga showed improved financial performance in the region as of September 2018 as compared to the same period in 2017. The region’s total assets statistics exhibited an increase of 29.60 percent about PhP16.343 Billion in 2018, while its total loans gained by PhP4.494 Billion more in 2018 or an increase of 21.37 percent. However, total gross operating income only eked out less than 1 percent in 2018, which pegged at PhP2.31 million. As to type of bank, universal, commercial and thrift banks booked bigger figures in September 2018 as compared to the same period in 2017. Overall, universal and commercial banks posted improved performance in all three financial indicators, i.e. total assets, operating income and loans. The universal and commercial banks achieved the widest margin on total loans at 58.78 percent
Type of Bank
Universal and Commercial Bank Thrift Banks Rural Cooperative Banks Total
increase in 2018. Thrift banks expanded by 8.74 percent. In all three financial indicators, only the rural and cooperative banks displayed a dismal performance with -35.09 percent. Figure 16.0 Banking Statistics, Caraga Region Sept 2017 vs Sept 2018
Source: BSP-Butuan
Table 6.0 Banking Statistics by Type of Bank September 2017 vs September 2018 Total Assets Total Gross Operating Income (In PhP Billion) (In PhP Billion) Sept Sept % Sept Sept % 2017 2018 Change 2017 2018 Change 41.16 57.70 40.16 0.66 0.91 36.61
Total Loan’s Net (In PhP Billion) Sept Sept % 2017 2018 Change 10.14 16.11 58.78
5.59 8.47 55.22
5.35 5.52 21.01
7.42 6.45 71.56
32.77 (23.86) 29.60
0.65 0.99 2.30
0.73 .067 2.31
12.18 (32.16) 0.43
5.81 3.58 25.5
8.74 (35.09) 21.37
Source: BSP-Butuan
Agusan del Sur and Surigao del Sur recorded growth across the three (3) financial indicators. Agusan del Sur posted the highest increase in total assets at 64.49 percent and followed by Surigao del Sur with 44.60 percent. Interestingly, all provinces registered improved performance in total loans with Dinagat Islands leading by a remarkable 170.91 percent increase. The province also
booked the highest accomplishment in total gross operating income at 11.92 percent. However, its total assets declined by 8.47 percent in September 2018. Except in total loans, Surigao del Norte posted declines in total assets and total gross operating income at 3.75 percent and 1.73 percent, respectively.
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Table 7.0 Banking Statistics by Type of Bank September 2017 vs September 2018 Type of Bank ADN ADS PDI SDN SDS Source: BSP-Butuan
Total Assets (In Billion) Sept Sept % 2017 2018 Change 22.75 30.54 32.23 8.17 13.44 64.49 0.47 0.43 (8.47) 15.09 14.53 (3.75) 8.73 12.63 44.60
Total Gross Operating Income Sept Sept % 2017 2018 Change 0.88 0.85 (2.81) 0.52 0.54 3.71 0.005 0.006 11.92 0.39 0.38 (1.73) 0.51 0.53 3.01
Sept 2017 10.05 4.38 0.03 3.07 3.48
Total Loan’s Net Sept % 2018 Change 12.20 21.39 5.59 27.58 0.08 170.91 3.74 22.04 3.89 11.70
Tourism
URISM The data released by DOT Caraga revealed that more tourists have visited the region in Q4 2018, as measured in terms of tourist arrival, as compared to the same period in 2017. The recorded tourist arrivals reached 1.348 Million in Q4 2018, representing a slight increase of 0.22 percent from the Q4 2017 figure of 1.345 Million. Among the provinces, Surigao del Sur exhibited a significant increase in tourist arrival by 30.40 percent. Agusan del Sur followed with 16.17 percent growth in its tourist arrival. On the other hand, tourist arrival in Butuan City and Agusan del Norte contracted by roughly 32 percent and 2 percent, respectively The domestic tourists encompassed 93.62 percent of the aggregate tourist arrival in the
region, which slightly dropped by 1.4 percent in Q4 2018 as compared to the figure generated in Q4 2017. On the other hand, more foreign nationals visited the region in Q4 2018, which increased by 33.3 percent. Overseas tourists arrival, which accounted less than 1 percent of the total tourist arrival of the region in Q4 2018, substantially fell by 23.8 percent. Surigao del Norte turned out to be the most visited province in the region by domestic and foreign tourists. About 33 percent of domestic tourists and 85 percent of foreign tourists went to the province. Meanwhile, Butuan City was most visited by overseas tourists in the region. .
Figure 17.0 Tourist Arrival by Type of Tourists and Province 4th Quarter 2017 vs 4th Quarter 2018
Source: DOT Caraga
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Air Transportation Air transport in the region performed well in Q3 2018 as compared to the same period in 2017. The total number of fights were up by 49.50 percent, indicating additional 1,395 flights in Q3 2018 against the figure of the same period in 2017. Siargao Airport exhibited the largest margin increase of 244.19 percent in its number of flights during the period. It is followed by Butuan City Airport at 10.24 percent increase. Meanwhile, the number of flights at Surigao City Airport significantly fell at 38.51 percent as Philippine Airlines (PAL) ceased its operation since July 2018. Said airport has been under rehabilitation from the damage caused by an earthquake that occurred in Q1 2018.
Moreover, the total number of passengers grew by 28.30 percent in Q3 2018 as compared to the 2017 figure. Siargao Airport contributed to the upsurge in the volume of inbound and outbound passengers in the region with 166.75 percent increase during the period. Approximately 90 percent of the aggregate passengers in the region passed through Siargao Airport. Meanwhile, the volume of passengers passing through the Surigao Airport substantially dropped by 38.49 percent, which resulted in the reduction of the number of flights and airlines operations. Butuan City Airport, comprised 63.52 percent
Figure 18.0 Volume of Flights, Caraga Region 3rd Quarter 2017 vs 3rd Quarter 2018
Source: CAAP Butuan and Surigao
share of the region’s total passenger distribution, which posted an increase of 7.10 percent. Total cargoes grew by 33.97 percent in Q3 2018 reaching 2,967,768 kilos as compared to 2,215,169 kilos in the same period in 2017. Siargao and Tandag airports posted remarkable growth with 311.45 percent and 186.55 percent, respectively. Butuan City Airport generated 32.90 percent increase and accounted 98.75 percent of the region’s total cargo throughput. However, no cargo throughput recorded for Surigao City Airport during the period.
Figure 19.0 Volume of Cargo and Passenger by Airport Location 3rd Quarter 2017 vs 3rd Quarter 2018
Change
Source: CAAP Butuan and Surigao
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Sea Transportation The PPA-Project Management Office Surigao recorded an increase in ship calls by 2.79 percent in Q3 2018, which summed up to 4,200 ship calls as compared to 4,086 ship calls in Q3 2017. Domestic ship calls comprised 94 percent of the aggregate ship calls in the region during the period. This improvement was attributed to the additional fast craft passenger vessels operating in the area, increased frequency of trips and the upsurge in trips transporting construction materials to island municipalities. Additional fast craft vessels, such as MV Sean Ferry 2, MV Yohan White and RORO MV Maria Yasmina, were operating and plying the Surigao to Dapa route and vice versa. The RoRo vessels at the Lipata Port, did not only increased the frequency of trips, but also provided additional vessels operating in the area, namely: LCT Star Asia and MV Nelsin Jules. In addition, Cokaliong lines expanded the number of trips by having daily schedules instead of providing six (6) trips a week. Moreover, conventional cargo and LCT vessels also increased their ship calls in transporting cement and sand and gravel to the island municipalities. On the other hand, foreign ship calls declined by 2.68 percent. From a total of 261 ship calls in Q3 2017, it went down to 254 calls in the same period in 2018.
Total cargo throughput of the Port of Surigao decreased by 0.41 percent from 13.41 million metric tons (MMT) in Q3 2017 to 13.36 MMT in the same period of 2018. This was due to the drop in foreign shipment, As of Q3 2018, domestic inbound and outbound cargo throughput increased by 31.59 percent and 48.93 percent, respectively. Growth in domestic inbound was due to increase in the shipment of cement and other construction materials at Port of Surigao, Cantilan, Tandag, Dapa, Socorro and San Jose driven by construction projects in the region, including government infrastructure projects. Shipment of basic commodities, animal feeds and other commodities at the Port of Suigao and Dapa also contributed to the increase in domestic cargo throughput. Foreign import throughput in Q3 2018 exhibited a decrease of 21.67 percent, which was attributed to low importation of sulfuric acid and slake lime at Taganito HPAL Plant in the Municipality of Claver. Also, foreign export throughput slightly declined by 0.95 percent due to low price of nickel ore in the international market.
Figure 20.0 Number of Ship Calls and Volume of Cargo Throughput 3rd Quarter 2017 vs 3rd Quarter 2018
Source: PPA-PMO Surigao
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Land Transportation The region’s motor vehicle registration increased both in new registration and renewal. New registration rose by 5.75 percent, while renewal was up by 2.79 percent during the Q4 2018 as compared to Q4 2017. Private
vehicles comprised about 95 percent of the registered vehicles. For hire vehicles and those owned by government accounted for 2.90 percent and 1.61 percent, respectively.
Figure 21.0 Vehicle Registration 4th Quarter 2017 vs 4th Quarter 2018
Source: DOTr-Caraga
PEACE AND SECURITY Criminality Overall the region’s total crime volume increased by 31.03 percent from 1,724 in Q4 2017 to 2,259 in the same period in 2018. The increase was attributed to the upsurge in nonindex crime by 46.7 percent, which comprised approximately 56 percent of the total crime volume. Non-index crimes include mostly violation of special laws, traffic accidence and other minor crimes. Among the provinces, Surigao del Norte showed improved performance in criminality by registering a negative 16.43 percent from 426 in Q4 2017 to 356 in Q4 2018. Apparently, incidence of index (heinous) crime substantially declined by 11.9 percent. Except for the province of Agusan del Norte, which
exhibited an increase of 17.0 percent in its index crime, the rest of the provinces and Butuan City displayed a drop in the number of incidence for this type of crime. Crime clearance efficiency (CCE) of the region rose from 59.33 percent in Q4 2017 to 77.67 percent in the same period in 2018, representing an increase of 18.33 percentage points. Crime solution efficiency (CSE) also increased by 32 percentage points, from 57.0 percent in Q4 2017 to 87.33 in the same period of 2018. The province of Dinagat Islands topped among other provinces in the region in terms of CCE and CSE, which were pegged at 97 percent and 92 percent, respectively.
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Table 8.0 Crime Statistics 4th Quarter 2017 vs 4th Quarter 2018 Province Q4 2017 Butuan City ADN ADS PDI SDN SDS Caraga Source: PNP Caraga
Index Crime Q4 2018 % Change
77 47 125 18 90 104 461
58 55 96 14 83 100 406
-27.7 17.0 -23.2 -22.2 -7.8 -3.8 -11.9
Non-Index Crime Q4 2017 Q4 2018 325 173 351 30 336 348 1,563
440 235 478 45 273 382 1,863
% Change 35.4 35.8 36.2 50.0 -18.75 9.8 19.19
Q4 2017 402 220 476 48 426 452 2,024
Total Q4 2018 498 290 574 59 356 482 2,259
% Change 23.88 31.82 20.59 22.92 -16.43 6.64 11.61
Table 9.0 Crime Statistics 4th Quarter 2017 vs 4th Quarter 2018 Province
Butuan City ADN ADS PDI SDN SDS Caraga Source: PNP Caraga
Crime Clearance Efficiency (%) Q4 2017 Q4 2018 % Change 82.0 48.0 58.0 75.0 68.0 73.0 59.33
92.0 93.0 93.0 97.0 92.0 92.0 77.67
10.0 45.0 35.0 22.0 24.0 19.0 18.33
Crime Solution Efficiency (%) Q4 2017 Q4 2018 % Change 63.0 44.0 51.0 63.0 59.0 62.0 57.0
85.0 90.0 87.0 92.0 86.0 84.0 87.33
22.0 46.0 36.0 29.0 27.0 22.0 30.33
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DEVELOPMENT PROSPECTS Agriculture Development •
The implementation of two (2) infrastructure projects of LGUs, which will be funded under the DA’s Philippine Rural Development Program (PRDP) amounting to PhP158 Million, namely: the construction of communal irrigation system in Brgy. Poblacion, Rosario, Agusan del Sur worth PhP50 Million; and the construction of the 3.62 km farm-to-market road (FMR) located in Brgy. R.E. Ecleo, San Jose, Dinagat Islands. (Source: Fretcher Magatao, DA Caraga/PIA Caraga, 31 January 2019)
•
Roll-out of infrastructure and enterprise support to different provinces in Mindanao under the DA-PRDP with 13 subprojects costing PhP809.62 Million are located in Agusan del Sur. (Source: Joy M. Montecalvo/PRDP Mindanao, 11 February 2019)
•
DA will pursue the development of 3,000 hectares potential irrigable areas under the Maunlad na Agrikultura sa Nayon Program, targeting 4,000 farmer organizations to be provided with farming machinery and other irrigation equipment amounting to PhP350 Million. (Source: Mike Crismundo/Manila Bulletin, 31 January 2019)
•
Trade and Industry SM Prime Holdings, Inc., the country’s largest publicly-listed mall developer, is set to open its SM Prime in Butuan City by the end of 2019 with a total floor area of 48,000 sq. m. (Sources: Jenniffer B. Austria,
Ongoing construction of the CityMall in Surigao City, which is set to open in 2019.
Energy Development • The establishment of two (2) power generating companies in the region, which have already secured a Certificate of Endorsement from DOE, namely: the Peakpower San Francisco, Inc. located in San Franscio, Agusan del Sur; and Asiga Green Energy Corporation located in Santiago, Agusan del Norte. These companies have a combined installed capacity of 18.4 MW. The Peaker Power operates as a bunker diesel-fired power plant, while the Asiga Green Energy is a mini-hydro power plant. Tourism Development •
The Duros Group of companies is eyeing Siargao Island for the expansion plans and strengthening tourism operations through their Gana Siargao Island Resort. Said company is engaged in the construction and real estate development. (Source: C. Lato-Ruffolo, CebuDailyNews, Jan. 2019)
•
Distribution of six (6) hauling tracks worth PhP21.2 Million to the six (6) agrarian reform beneficiaries in the region under the Agrarian Reform Community Connectivity and Economic Support Services (ARCCESS) Program of DAR. (Source: Gil E. Miranda, DAR Agusan del Norte/PIA Agusan del Norte)
•
•
Ongoing construction of the Amaris Prime Hotel situated along J. Resales Avenue, which is a eight-storey and roof deck hotel providing personalized service and accommodation both for business and leisure. (Source: Amaris Suites Facebook Page)
Housing and Hospital Construction •
Construction of Camella Prima Butuan, a 38-hectare house and lot development located in Ampayon, Butuan City.
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Lumina Homes’ 10-hectare housing development located in Brgy. Taguibo, Butuan City.
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Ongoing construction of Allied Care Expert (ACE) – Medical Center, an eight-storey building located along South Montilla Boulevard, Butuan City. (Source: Allied Care
manilastandard.net, 03 March 2019) •
POLYFORM Chemical Corp., which is located at J. C. Aquino Avenue, is set to open its Butuan Branch in 2019. (Source: Tempwell Company Butuan Branch Facebook Page posted on 01 March 2019)
Experts Medical Center - Butuan Facebook Page)
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