QRES

1 National Economic and Development Authority XII, Koronadal City
SOCCSKSARGEN
REGIONAL ECONOMIC SITUATIONER
1ST
QUARTER CY 2018
The Quarterly Regional Economic Situationer (QRES) provides a rapid assessment of the
region’s performance based on key indicators, such as production, investments, prices, security
situation, and critical incidents, among others, that could affect economic activities. It also
presents a development outlook for the succeeding two quarters.
General Assessment
 Irrigated palay production increased by 8.94 percent and rainfed palay production also
expanded but at a lower rate of 3.48 percent.
 Yellow corn production increased by 4.27 percent, while white corn production also
increased slightly at 1.22 percent.
 High-Value Commercial Crops (HVCC) posted varying growths during the period.
Among the commodities that posted production growth were abaca, banana, coconut, and
pineapple. Cacao recorded the highest production growth at 72.32 percent.
 Chicken and duck inventory recorded a significant increase at 14.03 percent and 19.90
percent, respectively. Cattle inventory slightly increased by 1.81 percent, as well as the
hog inventory which increased by 2.54 percent.
 Commercial fish production grew at 3.12 percent.
 The inflation rate for all items was estimated at 4.8 percent, which is within the Regional
Development Plan (RDP) target of below 5.0 percent. Alcoholic Beverages and Tobacco
posted the highest increase at 30.2 percent.
 Unemployment rate and underemployment rate decreased at 11.63 percent and 15.96
percent, respectively.
 Total crime volume decreased by 20.49 percent, and crime solution efficiency increased
by 55.94 percent.
 Tourist arrivals increased by 35.08 percent and hotel occupancy rate increased by 13.90
percent.
I. Assessment of the Regional Economic Performance
A.) Crop production
1. Increased palay and corn production
SOCCSKSARGEN Region produces both irrigated and rainfed palay. During the first quarter
of 2018, irrigated palay production grew by about 8.94 percent due to cropping movement and

Regional Economic Situationer 1st quarter
CY 2018
increased area planted with the assistance provided by the Department of Agriculture (DA)
XII through its Production Loan Easy Access (PLEA). The farmers planted earlier during the
4th
quarter of 2017 to avert the effect of floods to palay seedlings during their early and
vulnerable/weaker stage. The early maturity of the rice grains is a result of the hot weather
condition during the initial months of the quarter. Moreover, the rainfed palay production
increased by 3.48 percent due to the sufficient rainfall and increased in area planted during
the 4th
quarter of 2017.
The region also produces yellow and white corn varieties. Yellow corn production increased
by about 4.27 percent because of the intensive fertilizer application and increased area planted
due to sufficient rain during the 4th
quarter of 2017. A very minimal increase of 1.22 percent
was recorded for white corn production due to lesser area harvested resulted from crop
conversion, especially in Sarangani where some corn farmers shifted to Lacatan, Latundan
and Cavendish banana production.
Table 1: Palay and Corn Production (Metric Tons), Region XII, 1st Quarter, CY 2017
and 2018
Source of data: PSA XII
2. Varying production growth of High-Value Commercial Crops (HVCC)
Cacao production recorded the highest growth among the HVCC produced in the region. It
posted a 72.32 percent in production during the first quarter of CY 2018 because of the
sufficient rainfall during the fruiting stage of cacao and the increase in productive areas as more
bearing trees with a good quality cacao pods were harvested in Cotabato Province during the
period.
Slight production increase was also observed for several HVCC commodities, such as abaca
(4.48%), banana (3.70%), coconut (3.60%), pineapple (1.30%), and rubber (4.91%). The slight
production increase has been attributed to the sufficient rainfall during the fruit-bearing stage
of the crops and additional bearing hills from the expansion areas.
In contrast, coffee production posted a decrease of about 28.73 percent due to the rejuvenation
program of DA XII for the old/less productive coffee bearing trees and the infestation of berry
borers to the productive coffee bearing tree.
Meanwhile, asparagus logged a double-digit (17.74%) decrease in production due to crop
conversion. Some asparagus farmers shifted to Cavendish banana production under contract
with Dole-Stanfilco.
CROP
First Quarter Growth Rate
(%)2018 2017
Palay
Irrigated 355,035 325,907 8.94
Rainfed 54,071 52,352 3.48
Corn
Yellow 211,729 203,060 4.27
White 53,202 52,562 1.22

CY 2018
Mango production recorded a decrease of 7.89 percent due to frequent rainfall experienced in
the region during the mango flowering stage which resulted to a much lesser fruit development.
A minimal decrease of 1.28 percent in the production of sugarcane was also observed as the
harvesting activities were hampered by frequent rainfall and lesser harvesters during the
observance of the Lenten season by the Christians.
Figure 1: HVCC Production Growth Rate, Region XII, 1st Quarter, CY 2017 and 2018
Note: * - includes young nuts
B. Increased Poultry Inventory
Carabao inventory decreased by 3.24 percent due to farm mechanization and continuous
expansion of plantation crops in the region. Cattle inventory slightly increased by 1.86 percent
as there were more raisers due to increasing demand, high live weight price, and cattle dispersal
in Sarangani.
Hog inventory increased by 2.54 percent because of the increased stock in commercial farms
in South Cotabato as swayed by the stable demand and better farm gate and market prices for
live hogs.
Table 2: Livestock and Poultry Inventory, Region XII, 1st Quarter, CY
2017 and 2018
Livestock and
Poultry
(%)2018 2017
Carabao 204,855 211,722 (3.24)
Cattle 201,674 197,995 1.86
Hog 784,497 765,057 2.54
Goat 226,794 229,899 (1.35)
Chicken 10,324,555 9,053,886 14.03
Duck 1,493,838 1,245,859 19.90

CY 2018
Goat inventory decreased by 1.35 percent due to more disposals as there was sustained higher
demand for chevon in the provinces of Cotabato and South Cotabato.
Chicken inventory significantly increased by 14.03 percent due to the increased number of
commercial broiler farms in South Cotabato as influenced by higher prices and better demand
for chicken meat in the market.
Duck inventory significantly increased by 19.90 percent due to lower disposals and
establishment of additional commercial farms in Sarangani Province.
C. Increased Commercial Fish Production
Commercial fish production, which accounts for most of the region’s fish production, grew by
3.12 percent due to the abundance of fish like big-eyed scad, round scad tuna, skipjack and
yellowfin tuna in the region’s fishing grounds as a result of the spawning during closure in the
high seas.
Municipal inland production slightly decreased by 0.04 percent due to less appearance of major
fish species, such as gourami and climbing perch.
Municipal marine fish production significantly decreased by 13.13 percent because of the lesser
appearance of major species, such as the round scad, frigate tuna, and bigeye scad in the
municipal waters of the region.
Aquaculture farming production decreased by about 7.85 percent due to discontinued operation,
especially in fresh water pens in Lutayan, Sultan Kudarat and cropping movement in the ponds
in Lake Sebu, South Cotabato.
Table 3: Fish Production in Metric Tons, Region XII, First Quarter, CY 2017 and 2018
Fishing Area
(%)2018 2017
Commercial 81,764.98 79,287.77 3.12
Municipal Inland 5,015.34 5,017.58 (0.04)
Municipal Marine 3,261.69 3,754.85 (13.13)
Aquaculture 3,773.26 4,094.55 (7.85)
D. Increased Inflation Rate
The effect of the RA 10963 (TRAIN Law) implementation is largely felt during the 1st
quarter
of CY 2018 as inflation rate for all items was pegged at 4.8 percent, which is higher than the
CY 2017 1st quarter inflation of 3.8 percent.
The prices of alcoholic beverages and tobacco have the highest increase at 30.2 percent,
followed by the food and non-alcoholic beverages at 5.1 percent. The rest of the commodity
group also experienced increased in price levels but their overall increase is very minimal as it
ranges from 0.1 to 3.5 percent.

CY 2018
E. Decreasing underemployment
The region’s population of 15 years old and
above grew by 2.09 percent as compared to
its level during the 1st quarter of CY 2017.
Around 64, 000 individuals were added to
the regions labor force during the 1st
quarter
of 2018.
Labor Force Participation Rate was placed
at 62.4 percent, but 0.4 percentage point
lower than last year’s estimate.
Employment rate slightly increased by 0.52
percentage point. On the other hand, the
unemployment rate decreased by about 0.5 percent, while the region’s underemployment rate
was lower by 3.4 percentage points as compared to the 1st
quarter of CY 2017 data. The
significant decrease in the rates of unemployment and underemployment indicates that the job
fairs and job counseling initiatives of the different agencies in the region have a positive impact
on the region’s employment.
Table 5. Labor and Employment Performance,
Region XII
1st
Quarter 2017 and 2018
Indicator 2018* 2017 Growth
Rate
(%)
Population 15 years old and
above (‘000)
3,131 3,067 2.09
Labor Force Participation
Rate (%)
62.4 62.8 0.4
Employment Rate (%) 96.2 95.7 0.5
Unemployment Rate (%) 3.8 4.3 -0.5
Underemployment Rate (%) 17.9 21.3 -3.4
*preliminary result
Table 4: Consumer Price Index and Inflation Rate by Commodity Group, Region XII, 1st
Quarter,
CY 2017 & 2018
Commodity Group
First Quarter
Year-on-Year Change
(%)2017 2018
ALL ITEMS 156.6 164.2 4.8
Food and Non-Alcoholic Beverages 165.6 173.9 5.1
Alcoholic Beverages and Tobacco 202.7 263.9 30.2
NON-FOOD
Clothing and Footwear 143.6 145.9 1.6
Housing, Electricity, Gas and Other
Fuels
162.8 168.5 3.5
Furnishing Household Equipment,
and Routine Maintenance of the
House
128.5 129.6 0.9
Health 149.7 152.1 1.6
Transport 126.5 128.6 1.6
Communication 89.5 89.6 0.1
Recreation and Culture 117.6 118.3 0.6
Education 170.0 170.5 0.3
Restaurant and Miscellaneous
Goods and Services
137.4 141.3 2.9

CY 2018
F. Improved Peace and Security
The total crime volume recorded during the first quarter of CY 2018 was estimated at 4,408
cases, around 20.49 percent lower than the level during the same period of CY 2017. Of the
total crime volume, 978 crimes were index crimes or crimes against persons and property which
decreased by 45.42 percent, while the non-index crime accounted for 3,430 which also
decreased by 8.58 percent from its previous record.
The total crime solution efficiency was 23.63 percentage points higher compared to the
performance in the first quarter of CY 2017.
Table 6. Crime Statistics, Region XII, First Quarter, CY 2017 and 2018
Crime volume decreased in the first quarter of CY 2018 as compared to the same period in CY
2017 due to the following factors:
1. Checkpoint in some critical areas were conducted twice a day;
2. Intensified conduct of OPLAN Kapkap Bakal;
3. Mobile patrol and police presence for 24 hours in public convergence areas;
4. Police Integrated Patrol System (PIPS) and Foot Patrol Oplan Sleepless Nights being
conducted once a week;
5. Deployment of beat patrol in identified crime-prone areas;
6. Peace and Order Campaign through dialogue and other Police Community Relations
(PCR) activity in every barangay;
7. Implementation of “Speed Limit” in some municipalities in some provinces;
8. Full implementation of Lambat Sibat and the Project Double Barrel Reloaded;
9. House-to-house visitations; and
10. Awareness of the community with regards to implementing laws of the land.
In general, the crimes in Region XII during the 1st
quarter of CY 2018 reduced because of a
serious campaign of Police Regional Office (PRO) XII against all forms of criminality,
constant coordination with other Law Enforcement Agencies (LEAs) and AFP counterpart.
Outsourcing support to LGUs concerned with active support of the community is also a major
contribution on stabilizing the peace and order situation in the region.
Moreover, the City of Cotabato was declared as the safest city in Mindanao and top 2 safest
city in the country in CY 2017.
Crime Statistics
(%)2018 2017
Index Crime 978 1,792 -45.42
Non-Index Crime 3,430 3,752 -8.58
Total Crime Volume 4,408 5,544 -20.49
Total Crime Solved 2,891 2,332 23.97
Crime Solution Efficiency (in %) 65.69 42.06 23.63
Source of data: PRO XII

CY 2018
G. Increasing Tourists Arrivals
Tourist arrivals in the region increased by 35.08
percent from 1,097,771 in the first quarter of
2017 to 1,482,816 in the same period of 2018.
About 74.5 percent or 1,104,252 of the tourists
in the first quarter of 2018 were day tourists,
while 25.5 percent were overnight tourists. The
tourist arrival in the region is dominated by
domestic tourist. Only 0.5 percent of the day
tourist are foreigners and 0.83 percent for the
overnight tourists.
The hotel occupancy rate recorded an increase of
4.89 percent in the first quarter of CY 2018. It
grew from 35.19 percent last year to 40.08
percent this year.
The 1st
quarter of 2018, which was generally hot in the country, the sun, sand, and beach
tourism is the most visited destination of the day-tourists. About 32.21 percent of the total
tourist arrival visited Sarangani province which hosts most of the beaches in the region.
Meanwhile, the City of General Santos is the top destination for the overnight tourists. The city
was able to capture the 32.59 percent of the total overnight tourist during the 1st
quarter of 2018.
As reflected in Table 7, foreign tourist arrival in the region decreased by about 47.54 percent
for the overnight tourist and 20.64 percent for the day tourists. The decrease in the arrivals can
be attributed to the extension of Martial Law in Mindanao until the end of 2018.
II. Critical Incidents
 On January 1, 2018, the Republic Act No. 10963 or popularly known as the Tax Reform
for Acceleration and Inclusion (TRAIN) law took effect. The TRAIN law modernized
the outdated National Internal Revenue Code (NIRC) or the Tax Reform Act of 1997.
The most popular feature of the law is the reduction of personal income tax for an
individual taxpayer. It also provides exemptions on the value-added tax (VAT) on drugs
and medicines for diabetes, high cholesterol, hypertension; increase in the VAT
threshold and exemptions for the lease of residential unit and other fees as collected by
the homeowners’ associations/corporations. Moreover, the TRAIN law also increased
the tax for the passive income, such as interests’ income on foreign currency, shares of
stocks and on excise tax on cigarettes, manufactures oils, mineral products and
automobiles. Under the said law, PCSO winnings are also subject to tax if it is more
than PhP 10,000.00. The implementation of the law affects the inflation rate for some
commodities, goods, and services.
Table 7. Tourist Arrivals, Region XII, First
Quarter CY 2017 and 2018
Indicator
1st Qtr
2018
1st Qtr
2017
Growth
Rate
(%)
TOTAL 1,482,816 1,097,771 35.08
Overnight 378,564 276,776 36.78
Domestic 375,436 270,813 38.63
Foreign 3,128 5,963 -47.54
Day Tourists 1,104,252 820,995 34.50
Domestic 1,100,618 816,416 34.81
Foreign 3,634 4,579 -20.64
Occupancy
Rate (%)
40.08 35.19 4.89
Source of data: DOT XII

CY 2018
 The approval of the Philippine Congress on the extension of Martial Law in Mindanao
until the end of 2018.
III. Development Outlook
 The continuous increase in tourist arrivals due to the approaching school vacation, long
weekend holidays, and summer season.
 The sustained establishment of malls and corporate fast-food and grocery chains
(Citimall, Jollibee, 7-eleven, etc.) in the major cities and municipalities in the region.
 The increasing investments of the Chinese businessmen in the region, such as the
construction of the Regional Drug Rehabilitation Facility in Sarangani province with a
total floor area of 6,707.56 square meters and the modern airport, seaport, and sports
complex in Cotabato City.
 The security issues to be confronted by the PRO XII, AFP, and other stakeholders due
to the upcoming synchronized Barangay and Sangguniang Kabataan election on May
14, 2018.

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