Davao City registers P270B investments in 2017

Davao City. (From Glenn Lascuna Facebook)

THE total capitalization of investments in Davao City last year reached P270 billion, according to the Davao City Investment and Promotion Center (DCIPC).

The figure indicated an increase from 2016’s P230 billion capitalization, said DCIPC chief Lemuel Ortonio.

Based on the records of the city’s Business Bureau, Ortonio said there were 40,400 registered establishments in the city in the first three quarters of 2017. The fourth quarter data is yet to be validated.

Ortonio attributed the increased investments to the city’s streamlined business processing system, investor confidence, better peace and order situation, and President Rodrigo Duterte, who continues to draw investors to Davao City being his hometown.

Also in 2017, Ortonio reported that DCIPC approved six projects worth P12.9 billion that were granted business and tax incentives.

These projects were two feedmills (aquatic and animal feed) of the Davao South Feedmill Company, the Apo Highlands Subdivision and Alteza Grande by Primeland Properties, the Apo Agua Infrastructura, and the Davao Therma Biotech Corporation for a biodegradable waste fertilizer facility.

Ortonio is bullish this year because of continued interest of non-Davao companies, both new businesses and expansions, to locate in the city.

DCIPC has projected a five percent increase in capitalization of investments based on the average growth in the past five years starting 2012 to 2016.

“We have very good climate on investment and we foresee entry of more businesses on agriculture which is one of Davao City’s top industries and also on tourism with more business parks and specialized health facilities,” he said.

DCIPC also identified possible needs of the city for have more medical facilities as possible areas for investments.

Ortonio said there are already investors complying with the requirements for the fiscal incentive application, which is expected to be in during the first quarter.

The projects involved an expansion of a medical facility in the south and two boutique hotels, he said.

Even with a good projection in 2018, Ortonio said the city will continue reaching out to possible markets.

There is one international mission in Malaysia and Singapore in the third quarter of the year similar to the 2017 mission in Japan. This is to support direct flight to Kuala Lumpur and sustain the Singapore-Davao route.

There is also local road show which would involve visits to embassies and diplomatic offices in Manila to spread information on the opportunities in Davao and to show an aggressive marketing to draw more investors. This will also be complemented with meetings with foreign chambers of commerce in Manila.

The city officials will also meet with the Center for International Trade Exposition and Mission (CITEM) organizers for participation in events with international exposure. This will be a platform to hold briefings and presentation of business and economic activities to investors.

DCIPC is also eyeing the tourism road show this year to establish direct flights in Davao City. p: wjg