DOMESTIC investors are expected to become more active in 2026, helping underpin cautious optimism among businesses in Cebu and the wider Visayas as tourism recovery, construction activity and regulatory reforms offset persistent global headwinds, a regional business leader said.
Melanie Ng, area vice president of the Philippine Chamber of Commerce and Industry-Visayas, said investor sentiment is likely to improve modestly next year as measures aimed at easing business friction gain traction, even as geopolitical tensions and global trade policy uncertainty continue to weigh on outlooks.
“Our outlook for 2026 is cautiously optimistic,” Ng said. “While there are clear headwinds, particularly from reciprocal tariffs and continued scrutiny over government spending, there are also strong positives that can support growth if reforms are implemented consistently.”
Ng, who was appointed co-chair of Regional Development Council-Central Visayas, said tourism could emerge as a key growth driver in 2026, supported by the opening of new large-scale convention facilities in Cebu City and Lapu-Lapu City, additional international flights, and a projected rebound in visitor arrivals after weaker foreign market performance in 2025. She said business tourism is expected to gain momentum as Cebu expands its meetings, incentives, conferences and exhibitions capacity.
Construction and real estate activity are also seen continuing their recovery, with the sector moving closer to pre-pandemic levels, while the IT-BPM industry is expected to sustain growth as firms shift toward higher-value services amid wider adoption of artificial intelligence.
Ng said domestic investors may step up activity as investment-friendly policies, including the Strategic Investments Priority Plan (SIPP) and other recent reforms, take fuller effect. Foreign investors, however, are likely to remain more cautious as they assess global trade developments and policy direction in major economies.
She added that improving ease of doing business, addressing infrastructure gaps—particularly flood control—and ensuring reliable and affordable power supply remain critical to strengthening the Visayas’ competitiveness in the year ahead.
SIPP draft consultation
The Board of Investments (BOI) has urged stakeholders to submit position papers on the proposed policies and guidelines of the draft SIPP for 2025–2028, following a hybrid public consultation held on Dec. 18, 2025.
The draft SIPP updates the 2022–2025 plan and serves as the national blueprint for industries eligible for tax incentives under the Create More Act. It aims to support job creation, innovation, sector upgrading, and national priorities such as sustainability and disaster resilience.
The proposed plan seeks to strengthen the investment priorities framework amid shifting global and domestic conditions, focusing on closing industrial value chain gaps and promoting inclusive growth. It is structured into three chapters: updated definitions, revised general policies, and overhauled sector-specific guidelines. Key changes include broader definitions of “new projects,” the introduction of an enhanced deduction regime, and a rationalized tiering system to grant higher incentives to advanced and strategic investments.
The BOI said consultations with the private sector are ongoing, with the current SIPP remaining in effect until approval of the new plan. Stakeholders have until Jan. 19, 2026 to submit comments. / KOC WITH REPORTS FROM PHILEXPORT NEWS AND FEATURES