BUSINESS leaders in Cebu challenged national economic managers to explain how the country’s steady growth figures can be translated into more jobs and investments on the ground.
In a panel discussion during the Cebu leg of the Philippine Economic Briefing held at a hotel in the North Reclamation Area, Cebu City, on Thursday, September 18, 2025, a former official of the Cebu Chamber of Commerce and Industry (CCCI) questioned why the government’s 5.5 percent national gross domestic product (GDP) growth in the second quarter and Central Visayas’ 7.3 percent expansion in 2024 have yet to ease persistent concerns over unemployment and poverty.
“GDP numbers look strong, but many communities are not feeling this in terms of jobs and livelihood. We need investor confidence and more projects funded under the national budget for Cebu and the Visayas,” said Virgilio “Nonoy” Espeleta, former CCCI president, during the open forum.
The panelists included Finance Undersecretary Domini Velasquez; Office of the Special Assistant to the President for Investment and Economic Affairs (Osepia) Undersecretary Maria Angela Ignacio; Department of Development (DepDev) Assistant Secretary Reynaldo Cancio; Bangko Sentral ng Pilipinas (BSP) Deputy Governor Zino Abenoja; and Department of Budget and Management (DBM) Director Mary Joy De Leon.
Before the panel discussion, Finance Secretary Ralph Recto and DepDev Undersecretary Carlos Bernardo Abad Santos described Central Visayas—particularly Cebu Province—as robust and “outpacing national averages” in growth, employment and poverty reduction.
Espeleta acknowledged Cebu’s strong demographics but pointed out inconsistencies in the government’s birth control program. He added that the educational attainment and skill sets of the population remain a concern.
He called for stronger investor confidence and more local projects funded under the national budget, which he said can be achieved through governance reforms.
Subdivision and Housing Developers Association (SHDA)–Central Visayas president Harold See, meanwhile, sought clarity on tax policies affecting the property sector, including the implementation of the Real Property Valuation and Assessment Reform Act (RPVARA).
Velasquez said no capital gains tax hikes are in the pipeline and that RPVARA will take effect in 2027.
Economic performance
Velasquez outlined the government’s fiscal strategy, anchored on improving tax collections through digitalization, pushing priority revenue measures such as the mining fiscal regime and value-added tax (VAT) on digital services, and raising non-tax revenues from government corporations and idle assets.
The Department of Finance (DOF) also highlighted the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (Create More) law, which has so far approved P254 billion worth of investments across 285 projects, generating an estimated 67,000 jobs.
Cancio said the government must shift the growth model from consumption-led to investment-driven, backed by infrastructure spending equivalent to 5 to 6 percent of GDP.
He added that poverty reduction is tied to job creation outside the National Capital Region, with a focus on health, education and food security.
For the BSP, Abenoja said the policy rate had been reduced to 5 percent, with inflation easing to 1.5 percent in August—among the lowest in Asia.
He highlighted digital finance as a tool for inclusion, noting that 57 to 59 percent of retail payments are now digital and 26 million Filipinos have opened basic deposit accounts. He also cited the issuance of licenses for digital banks to expand financial technology access.
De Leon cited reforms in the new Government Procurement Act, including an electronic marketplace, open contracting and the use of government procurement cards to improve transparency and efficiency.
She said the country ranked as Asia’s most fiscally transparent in the 2023 Open Budget Survey. The remark drew reactions from the audience, prompting her to explain that the ranking came from an independent body.
Visayas outlook
Osepia noted that the Visayas contributed 14 percent of national GDP growth in 2024, with projects such as the Bohol-Panglao Airport public-private partnership and the Panay-Guimaras-Negros bridge driving infrastructure-led development.
The IT and business process management and logistics sectors in Cebu have been identified as growth drivers. Cebu remains a hub, with Osepia citing ongoing foreign investor interest in outsourcing and digital services.
Cebu’s ports and shipping sector are seen as crucial for handling rising intra-Asean trade volumes.
Efforts are underway to expand export markets beyond traditional destinations such as the United States and Japan, strengthening ties with the European Union, Middle East and Australia, and leveraging Cebu and Visayas ports as gateways.
Osepia encouraged local chambers and industry groups to align investments with national priority sectors, especially tourism, manufacturing, agribusiness and renewable energy.
Recto acknowledged that sustaining growth while ensuring inclusivity remains a challenge but vowed to work with local stakeholders to align national fiscal policy with regional development needs. (EHP)