NOW that the southern Philippines’ agricultural powerhouse is stepping into the limelight, Mindanao, long known as the nation’s food basket, is reemerging as the country’s next great investment frontier.
Beyond conflict: A new story for Mindanao
For many years, the name “Mindanao” evoked images of conflict, insurgency, and instability, narratives that shaped both domestic and international perception. Yet, in the last decade, and particularly from 2023 onward, the story on the ground has changed dramatically.
A SunStar Davao report in 2023 noted that the persistent use of terms like “conflict” and “travel advisory” in coverage about Mindanao discouraged investors, even when the reality in most of the island was peaceful and business-ready.
Business groups in the region emphasized that the continued framing of Mindanao as unsafe failed to capture the progress being achieved in major growth centers such as Davao City, Cagayan de Oro, General Santos, and Zamboanga.
Today, peace and development are no longer distant ambitions, they are operational realities. Local governments, the Mindanao Development Authority (MinDA), and private sector groups are now working together to showcase Mindanao’s readiness for agribusiness, halal manufacturing, infrastructure, and clean energy ventures.
Agriculture as the heart of Mindanao’s economy
Mindanao’s agricultural base remains its greatest strength. Accounting for about 36 percent of the country’s total farmland and 42 percent of the national food trade, the island continues to drive the Philippines’ food security and exports. Bananas, coconuts, coffee, cacao, tuna, and palm oil dominate production, while new markets are being cultivated for high-value crops and halal-certified goods.
According to MinDA, Mindanao’s 10 million hectares of fertile land are now being supported by renewed infrastructure and irrigation programs. In 2024, MinDA highlighted the near completion of the P5.13-billion Malitubog–Maridagao Irrigation Project Phase II, which aims to irrigate 9,528 hectares in North Cotabato and Maguindanao del Sur. This expansion underscores a growing recognition that water access and irrigation are crucial to sustaining Mindanao’s farm productivity.
The Philippines–Malaysia Business Networking Session held in Kuala Lumpur in late 2024 also exemplified this agricultural pivot. Organized by MinDA in partnership with the Malaysian International Chamber of Commerce and Industry, the event drew Malaysian investors exploring opportunities in Mindanao’s agribusiness, halal food production, renewable energy, and infrastructure sectors.
“As President Marcos Jr. stressed, Mindanao is an emerging investment destination and is turning into a land of fulfillment and opportunities,” said MinDA Secretary Leo Tereso Magno.
Numbers that prove the promise
Mindanao’s economic growth over the past two years confirms its expanding role in the national economy. According to the Philippine Statistics Authority, the island’s total Gross Regional Domestic Product (GRDP) reached P3.60 trillion in 2023, driven largely by services, agriculture, and construction.
Davao City remains Mindanao’s top economic performer, contributing P532.54 billion, or nearly 15 percent of the island’s output, and posting a 7.5 percent growth rate that year. The wider Davao Region recorded 6.7 percent growth in 2023, according to SunStar Davao, fueled by agribusiness and real estate expansion.
Northern Mindanao followed suit, achieving a 5.3 percent growth rate in 2023 and crossing the P1-trillion GRDP threshold in 2024, growing by 6 percent. The Philippine Information Agency (PIA) noted that Region X’s inclusion in the “trillion-peso economy club” underscores its rise as an industrial and logistics hub, connecting central and southern Mindanao to the Visayas.
Meanwhile, the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) registered a 4.3 percent growth in 2023, followed by 2.7 percent in 2024. While its growth pace slightly slowed, the region’s long-term trend remains positive. BARMM’s investment board reported P3.1 billion in registered projects in 2023, surpassing 42 percent of its annual target by mid-2024. The investments were concentrated in construction, halal food processing, and energy sectors, signaling renewed business confidence under regional self-governance.
Infrastructure and connectivity: Building foundations for growth
Development momentum is increasingly anchored in infrastructure. In late 2024, MinDA unveiled a P3.9-billion water access program targeting 121 communities across Mindanao, a project designed to improve both quality of life and industrial potential.
The European Chamber of Commerce of the Philippines-Southern Mindanao Business Council projected in January 2025 that Mindanao’s economy could grow by 6 to 7 percent this year, citing improvements in transport networks, telecommunications, and tourism facilities. These infrastructure upgrades, the Chamber said, are enabling businesses to scale operations while fostering investor confidence in the region’s readiness.
From roads and ports to irrigation systems and industrial estates, Mindanao’s infrastructure transformation has shifted from promise to practice. The island’s participation in the Brunei Darussalam–Indonesia–Malaysia–Philippines East Asean Growth Area (BIMP-Eaga) continues to strengthen trade corridors and cross-border logistics, further integrating Mindanao into regional commerce.
Halal, energy, and emerging industries
Beyond agriculture, Mindanao is carving a niche in halal production and clean energy, sectors that align with its demographic and natural advantages. The global halal industry is valued at over $2 trillion, and with its Muslim-majority provinces, Mindanao is positioning itself to become a regional hub for halal-certified goods and services.
At the same time, renewable energy investments are gaining momentum. Projects in solar, wind, and hydroelectric power are underway in various provinces, supported by foreign partners from Malaysia, Japan, and South Korea. These ventures are not only diversifying the energy mix but also creating jobs and driving rural development.
Service sectors are also growing. According to the ECCP-SMBC, tourism, ICT, and real estate will be among Mindanao’s main growth engines in 2025, particularly in Davao City, Cagayan de Oro, and Zamboanga. Business process outsourcing firms are expanding their footprints, while tourism campaigns are repositioning Mindanao as a destination for eco-tourism and cultural experiences rather than risk.
Regional highlights: Mindanao’s diverse growth centers
Each region of Mindanao now contributes a unique strength to the island’s collective economic rise.
In Davao Region, the local economy continues to lead Mindanao’s recovery, with Davao City alone accounting for P532.54 billion of GRDP in 2023. The region’s 6.7 percent growth reflects strong performance in real estate, trade, and agriculture. Davao’s focus on sustainability and innovation has positioned it as an emerging urban hub of Southern Philippines, bridging domestic and Asean markets.
Northern Mindanao, comprising Cagayan de Oro, Iligan, Bukidnon, and Misamis Oriental, grew by 5.3 percent in 2023 and surged to 6 percent in 2024, surpassing P1.04 trillion in GRDP. This milestone, according to PIA, places the region among the Philippines’ trillion-peso economies, a first for Mindanao. Its expansion is fueled by manufacturing, logistics, and agri-industrial processing zones.
In Barmm, steady gains in agriculture, services, and governance have anchored peace with productivity. PSA records show that the services sector now accounts for more than 40 percent of Barmm’s economy, signaling a shift from reliance on subsistence agriculture to formal enterprises. The region’s investment board aims to attract P10 billion in investments by 2026, focusing on halal and energy ventures.
Reframing the narrative: From risk to opportunity
One of the greatest challenges and triumphs of Mindanao’s resurgence is the shift in perception. For decades, news coverage of conflict overshadowed its stories of resilience, peace, and enterprise. Yet as SunStar observed in a 2024 editorial, “There are conflicts in some parts of Mindanao, yes, but there are also many stories of peace, progress, and hope that never make it to the headlines.”
This reframing is now being championed not only by the media but also by business groups, development agencies, and government institutions. Through initiatives like MinDA’s “Building a Better Mindanao” campaign, investors are being shown that stability, not strife, now defines the region.
Why now is the moment to invest
The confluence of factors shaping Mindanao’s growth makes the current moment pivotal. Its vast agricultural base offers room for value-added industries, its infrastructure is catching up, and its peace process has matured into policy-driven autonomy. From Davao’s urban dynamism to Northern Mindanao’s manufacturing surge and BARMM’s halal and energy ambitions, the island presents a mosaic of opportunities.
As the European Chamber noted in early 2025, Mindanao’s projected 6–7 percent growth rate outpaces national expectations, driven by investor optimism and a widening middle class. More importantly, the momentum is sustained not by subsidies or short-term programs but by systemic improvements in governance, connectivity, and trust. DEF