MINDANAO'S recent economic expansion, led by the Davao Region’s continued trillion-peso economy, is putting the island at the center of the government’s investment push as economic managers seek to develop new industries and attract more private capital outside Metro Manila and Luzon.
Finance Secretary Frederick D. Go said the next chapter of Philippine growth will be shaped in Mindanao as the administration of President Ferdinand Marcos Jr. brought its economic and investment agenda to Davao City during the Philippine Economic Briefing (PEB) 2026 Strategic Investment Priority Plan (SIPP) Roadshow–Mindanao Leg on August 24.
“The next chapter of Philippine growth will be shaped in Mindanao. So let us make future industries happen here and in the Philippines,” Go, who is also an investment czar, said during the briefing held at Dusit Thani Davao.
The PEB focused on the country’s economic outlook, investment policies and priority industries, with government officials and business stakeholders discussing opportunities in infrastructure, agriculture, energy, manufacturing, tourism, logistics and digital services.
Go said Davao City remains central to Mindanao’s economic activity, describing it as the economic center of the island and a link for businesses, workers, capital and markets.
“Davao is an important part of the Philippine growth story. It is the economic center of Mindanao. The region has been connecting businesses, employees, capital, and markets,” Go said.
Davao Region maintains trillion-peso economy
The Davao Region recorded 5.1% economic growth in 2025, higher than the Philippines’ 4.4% gross domestic product (GDP) growth during the same period.
Its Gross Regional Domestic Product (GRDP) reached ₱1.14 trillion in 2025, keeping the regional economy above the ₱1-trillion level for the third consecutive year.
Davao City also recorded 7.9% growth in 2024, with its economy reaching ₱574.72 billion, up from ₱532.52 billion in 2023, based on Philippine Statistics Authority data.
The figures place Davao City among the country’s major urban economies and make it the largest economic center in the Davao Region.
Investment approvals near ₱2 trillion
At the national level, investment approvals reached ₱1.917 trillion in 2025, according to figures presented during the briefing.
The government also reported that Philippine goods exports reached a record $84.5 billion in 2025, representing a 15.2% increase from the previous year.
The Philippines recorded 4.4% GDP growth in 2025, while the country’s national government debt-to-GDP ratio stood at 63.2%.
The economic briefing also cited the Philippines’ recent classification as an upper-middle-income country by the World Bank, following decades of efforts to raise national income levels.
Government moves to cut business costs
Go also presented measures being implemented by economic agencies to reduce costs and administrative requirements for businesses.
The Securities and Exchange Commission reduced document-request fees by 62.5% and lowered registration fees for micro, small and medium enterprises.
The Bureau of Customs extended importer accreditation validity from one year to three years, while reducing the fee from ₱6,000 to a one-time ₱5,050 payment.
The Bureau of Internal Revenue also reduced the Creditable Withholding Tax rate for local manufacturers and direct importers from 1% to 0.5% in identified sectors, including vehicles, pharmaceuticals and fuel.
These measures were presented as part of the government’s broader effort to reduce transaction costs and improve the operating environment for businesses.
Future industries targeted
The briefing also highlighted investment opportunities under the government’s 2026 Strategic Investment Priority Plan, which identifies industries targeted for investment support and development.
Among the sectors discussed were manufacturing, agriculture, energy, infrastructure, logistics, tourism and digital services.
The government cited major investments supported by recent economic reforms, including ₱50 billion in investments by Samsung Electro-Mechanics Philippines under the CREATE MORE Act.
The Public-Private Partnership Code and the Electric Vehicle Incentive Strategy were also cited among policies intended to support infrastructure development and emerging industries.
The EVIS provides incentives for investments in the electric vehicle industry, while the PPP Code establishes a framework for private-sector participation in public infrastructure and development projects.
With this, Go called on business leaders and industry partners to invest, build, and grow in Mindanao, helping develop globally competitive industries and creating more opportunities for Filipinos.
“The opportunities before Mindanao are immense and require our concerted efforts. Achieving our development goals calls for a whole-of-government approach and strong collaboration with the private sector and development partners. By working together, we can create the conditions for investments to flourish and ensure that the benefits of development reach more communities across the region,” he said.
The PEB 2026 Mindanao leg was held as the government continues to promote the island’s priority industries and integrate regional investment opportunities into the national economic agenda. DEF
