BIMP-EAGA also continues to be confronted with broader economic and development challenges which affect and is affected by connectivity issues, most of which have persisted since its inception in 1994. Some of the more pressing challenges are: G) continued dependence on primary resource-based economic activities and lisle sub-regional investment flows in agro industry which is the BIMP-EAGA focus; (ii) weak private sector with equally weak capacity to capitalise on opportunities; (iii) high incidence of poverty in the sub-region; and, (i) lack of vital infrastructure particularly in the Indonesia and Philippines components of EAGA which are major bottleneck to private sector investments These broader development challenges faced by the BIMP-EAGA sub-regional initiative are described in detail in Appendix 2.3