PANABO CITY, Davao del Norte — Determined to reposition itself as a major investment destination in Southern Mindanao, Panabo City has launched an aggressive campaign to lure more investors, unveiling a revamped investment code, expanded fiscal incentives, and a citywide promotion effort following its newly acquired first-class city status.
This intensified push took center stage during the Business Symposium on Ease of Doing Business (EODB) Innovation: Business Processing Goes Digital, held on November 12, 2025, at the Anflo Industrial Estate (AIE) Experience Center and staged in conjunction with Investors Protection Week. The event also marked the launch of the Investment Education Road Show, a comprehensive, year-long initiative aimed at preparing stakeholders, strengthening the city’s investment climate, and aligning policy reforms with Panabo’s larger goal of capturing new capital inflows.
City officials, national regulators, barangay leaders, business chambers, academe partners, and aspiring entrepreneurs gathered to assess the city’s readiness and understand the roles they must play in reshaping Panabo’s investment landscape. For city administrator Pedrito Misoles, the event functioned as both an orientation and a rallying point, urging stakeholders to take part in a new era of proactive, targeted investment promotion.
“We are here to strengthen Panabo City’s appeal to investors and ensure our stakeholders understand their shared responsibility in transforming our economic landscape,” Misoles said. He emphasized that Panabo is shifting from a passive, wait-and-see approach to one anchored in data-driven promotion, ease of doing business enhancements, and industry-focused engagement.
Capital attraction as a strategic priority
Panabo reclassified from Third Class status to First Class effective January 1, 2025.
The reclassification is based on the income range provided under Republic Act No. 11964 or the Automatic Income Classification of LGUs Act. It is scheduled for implementation in 2025 through Department Order No. 074-2024 of the Department of Finance.
In order for a city to qualify for First Class status, an LGU must achieve an average annual income of P1.3 billion or more over the three fiscal years preceding a general income reclassification.
With this new income classification, the city will have the capacity to improve public service with a stronger local governance structure. It will also impact urban development and the economy, which may lead to an influx of investments and job opportunities.
Panabo’s upgraded city classification has intensified expectations for stronger economic performance, amplifying the need for strategic investment generation. While the city ranked fifth nationwide in resiliency under the 2024 Cities and Municipalities Competitiveness Index, Misoles noted that the city scored lower in economic dynamism, infrastructure, innovation, and government efficiency—competitiveness pillars crucial to attracting investors.
“These rankings remind us that we must work harder,” he said. “If we want to compete with established centers like Davao City and fast-growing Tagum, we must enhance our investment climate and create conditions that make Panabo a serious contender.”
Panabo’s answer is a stronger, more assertive investment campaign designed not just to catch up, but to position the city as a preferred destination in the region’s expanding economic corridor.
A more aggressive Investment Code
A central element of Panabo’s investment agenda is its newly amended 2024 Local Investment and Incentive Code, which city officials describe as the boldest and most competitive incentive package the city has ever offered. The revised code expands the city’s fiscal incentives, allowing qualified projects to enjoy tax holidays of up to ten years, a significant increase from the previous maximum of three years.
Investments located in urban centers may be granted incentives for up to five years, while those located in rural barangays and designated growth corridors—areas identified as priority development zones—may qualify for the full ten-year tax relief. This tiered incentive structure aims to direct growth toward underdeveloped parts of the city where land remains abundant and agricultural potential is strong.
Misoles explained that the incentive program was deliberately designed to encourage equitable development across Panabo.
“Rural areas receive the highest incentives because that is where we want investments to take root,” he said. “We want progress not just in the center but in communities that have long waited for real development.”
Beyond fiscal perks, the code institutionalizes crucial non-fiscal benefits such as one-stop business facilitation, streamlined permitting, regulatory guidance, and a dedicated “green lane” for strategic investments. These provisions aim to deliver a faster, more predictable, and more investor-friendly experience.
Two years of legislative battles
Councilor Omar Ranain, who championed the ordinance, recounted the challenges encountered during the two-year revision process. He described lengthy debates, strong objections from several council members, and political maneuvering that nearly stalled the passage of the code. Critics questioned the scope of the incentives, the potential revenue impact on the city, and the composition of the investment board.
Ranain defended the reforms, arguing that competitive incentives are essential for cities that want to attract industries capable of generating employment and expanding commercial activity. He emphasized that LGUs inevitably benefit from new investments through permits, taxes, job creation, and the rise of ancillary businesses. The ordinance, he said, ultimately passed because the city recognized the necessity of modernizing its investment policies and preparing Panabo for the next stage of growth.
Positioning Panabo as Davao Region’s next investment hotspot
Panabo’s reinforced investment drive is anchored in its strategic geography. Located between Davao City’s metropolitan center and Tagum City’s rapidly expanding commercial zones, Panabo offers investors a cost-efficient alternative with less congestion, easier movement of goods, and direct access to strategic facilities.
Acting Local Economic Development and Investment Promotions Officer Michael Angelo Resueño described Panabo as a city with the land availability, industrial backbone, and logistical access that make it an ideal expansion site.
He noted that Panabo’s proximity to the Davao International Airport, its access to port facilities, and its developing industrial estates place it in a unique position to absorb investments that may no longer find space or cost-efficiency in nearby cities.
“Panabo has space, connectivity, and an emerging industrial structure,” Resueño said. “This is the right time for investors to revisit our city and recognize the opportunities here.”
Agriculture and agri-industrial development at the forefront
Panabo’s investment pitch is anchored in its identity as an agricultural powerhouse. The city’s vision is to become an agri-industrial gateway in Southern Mindanao, transitioning from traditional agricultural production toward higher-value processing and manufacturing. Resueño emphasized that Panabo aims to modernize its farming practices, diversify crop production, incorporate more mechanized systems, and encourage investors to build processing facilities that will allow the city to export finished agricultural products rather than raw goods.
He also highlighted growth opportunities in renewable energy, mariculture, green development, waste management, and logistics—all sectors included in the city’s updated investment priority areas. These areas reflect Panabo’s intention to pursue not only economic expansion but also sustainable and inclusive development.
Asserting the city’s investment identity
The Business Symposium represents only the beginning of a broader, year-long effort to sharpen Panabo’s investment identity. The city government plans to conduct targeted investor consultations, technical forums, business-matching sessions, and barangay-level orientations to ensure that communities, business owners, and local leaders understand and support the city’s investment strategy.
City officials remain aware of existing challenges, including the need for better infrastructure, more efficient regulatory processes, and stronger competitiveness rankings. However, they express confidence that Panabo’s decisive reforms, strengthened incentive program, and coordinated investment campaign will position the city as one of Southern Mindanao’s rising economic hubs.
“This is our moment to redefine who we are as an investment destination,” Misoles said. “If we can bring in the right investors, we can drive economic growth that reaches every barangay. This is just the beginning of Panabo’s rise.” RGL