PHILIPPINE signing minister to the Brunei Indonesia Malaysia Philippines- East Asean Growth Area (BIMP-Eaga) Jesus G. Dureza said Malaysia has been reviewing the proposed Memorandum of Understanding on Customs-Immigration Quarantine-Security (CIQS) between the sub-regional economic group's member countries.

"We are waiting for Malaysia to go through it, let us give them the time," Dureza said, belying reports that Malaysia backed out of the agreement due to the non-prejudicial clause.

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One of the contents being reviewed is the non-prejudicial clause inserted by the Philippines to the Memorandum of Understanding (MOU), which in essence states that "the documents and agreements coming from the economic cooperation shall not be construed as to prejudice or affect the claims and rights of all the member countries."

The Philippines has not yet given up its claim on Sabah, a territory occupied and governed by Malaysia.

"We are now finalizing the Memorandum of Understanding on Customs-Immigration-Quarantine-Security on the BIMP Eaga level," Dureza said in an interview Friday. "All countries have set up their respective CIQS; we have just to sign the MOU."

Moreover, the Asian Development Bank is extending its support to sustain the initiatives undertaken for trade promotion and facilitation in the economic sub-region as its present technical assistance for the BIMP-Eaga will conclude on December 2009.

During the 3rd Heads of Customs Meeting at Brunei Darussalam, the ADB expressed that the follow-on assistance for trade facilitation will be the implementation of the CIQS and the Standard Operating Procedures in the priority entry points.

The project will be implemented with an indicative funding of US$1.5 million over three years starting 2010.

This will include assistance for the follow-through planning, validation and implementation of the standard operating procedures in the priority entry points that will be further supported by capacity building activities to enhance institutional and human resource capabilities of local CIQS agencies.

ADB added that the project will also support public-private sector partnership, particularly the conduct of regular dialogues between CIQS and the private sector at various levels, and feedback mechanisms to raise private sector awareness on the CIQS initiatives.

With regard to trade promotion, the ADB will look into the existing trade patterns in BIMP-Eaga to identify transport and logistics issues that prevent the efficient movement of goods across the region. Consultations with Eaga stakeholders are also underway as the project will assist in developing a viable supply chain development program for one priority sector as a pilot project for trade promotion.

The follow-on assistance is expected to increase the trade volume in Eaga and lower the cost of trade transactions. (CPM)