THE industry and services sectors will be the primary growth drivers of the Davao Region in the coming years according the Davao Regional Development Plan (DRDP) 2017-2022.
Under the DRDP 2017-2022, the Regional Development Council (RDC) in Davao Region targets to expand the growth of Davao Region to 11.5 percent in 2022 from 7.9 percent in 2015, the baseline year.
The DRDP states that "under the industry sector, manufacturing and electricity, gas and water subsectors shall lead growth."
"While for the services sector, transportation, storage and communication; real estate, renting and business; financial intermediation; and trade subsectors shall grow the fastest," the plan states.
During the press conference on the DRDP on Friday, July 7, National Economic and Development Authority (Neda)-Davao regional director and RDC-Davao vice chair Maria Lourdes Lim earlier pointed out that for a long time the region's growth has been primarily driven by the services sector but under the development blueprint they hope to grow the industry sector to help spur the region's growth.
"We have to develop the manufacturing sector because it has the greatest multiplier effect, it has the most potential for creating jobs, raising income, and raising productivity," Lim said.
The DRDP 2017-2022 states that "the manufacturing subsector shall continue to contribute the bulk in the industry sector’s output due to the sustained performance of the processing industries, such as cement, food and beverages and steel production."
The entry of a P2.24 billion large-scale processing of
animal feeds, with a capacity of 204,201 metric tons per year (MTPY) and 2,969 MTPY for aqua feeds, in Sta. Cruz, Davao del Sur in 2018 and the P500 million manufacture facility of packaging products, which has a capacity of 24,000 MTPY, in Calinan, Davao City last year are manufacturing industries that are seen to help boost the region's growth.
The entry of the 300 megawatt (MW) Davao baseload power plant of Therma South Inc. in Davao City and Sta. Cruz, Davao del Sur; the 300 MW coal thermal plant of the San Miguel Consolidated Power Corp. in Malita, Davao Occidental; and Enfinity Philippines' 29-MW Digos solar plant in Digos City are also expected to pull the growth of the industry sector.
"The strategic position of Davao Region as the financial, trade and services center of Southern Mindanao will sustain the robust activities of the services sector," the DRDP states.
The services sector's growth will be "brought about by the proliferation of shopping malls, bank and non-bank institutions, recreation, health and wellness and educational service establishments including ICT/BPO, and exports."
The DRDP added that the massive property development will sustain the real estate subsector.