#MINDANAO

In 2015 I had the privilege to help organize the Southern Mindanao Growth Corridor business conference, a gathering of business leaders from all over the country to explore the opportunities in the economic corridor composed of the  Soccsksargen region that covers the Cotabato provinces, Sultan Kudarat, and Sarangani and the adjacent Davao region which covers all Davao provinces and Davao City. Back then, many of the delegates who came for the conference were pleasantly surprised to find out just how the corridor is an area conducive to investment, commerce, and trade.

In the years after 2016, Davao City has grown a taller skyline, with new central business townships that can take investors in. General Santos now hosts a new campus of the University of Santo Tomas. The General Santos and Davao International Airports are prepared to welcome new flights from key Philippine and Asian cities. The highways linking the major urban areas of Tagum, Davao, Digos, General Santos, and Koronadal are impressive and scenic roadways.  This corridor’s proximity to the Brunei Indonesia Malaysia Philippines Growth area amplifies this potential.

According to the 2020 census, this large corridor’s population is per the 2020 census. Soccsksargen’s residents number 4,901,386 while the Davao region clocks in at 5,243,536 residents. When combined, this makes the region a big consumer market. It is also an economic powerhouse since it has the potential to produce homegrown products and export them since Agriculture, Fisheries and forestry account for 24.8 percent of the Soccsksargen economy, and 14.5 percent of the ₱1.02 trillion Davao Region economy. Homegrown income such as this makes the two regions resilient,  and a big market for goods and services.

In terms of business potential often take these two regions as one  since this used to be one administrative region, as the Soccsksargen provinces were taken together with the Davao provinces with Davao as the regional capital. Nonetheless, the trade and business links have endured and remained robust. Companies often integrate business and marketing operations in the Davao and Gensan markets. Some agribusiness companies based in Davao plant and harvest bananas and pineapples in the Soccsksargen area. 

Moving forward, I foresee that South and North Cotabato, for instance, will supply larger volumes of durian given the increase in export demand. Perhaps an updated roadmap from the Department of Trade and Industry and the Department of Agriculture for the durian industry is needed given these developments. Increased rural employment will be achieved.  Let’s look at bottlenecks to increased production volume, and even agro-processing opportunities to boost demand.

Knowing these things, expanding business in this area becomes a compelling proposition when you take these two regions together, accounting for the rise in population and economic growth over the last decade.

A key element to sustain and expand this growth is to promote more manufacturing to add value to the fresh produce and reach more markets. Having more markets pulls production up, expanding employment opportunities for residents. Having more jobs raises demand for more goods and services that, in turn, contribute to growing the economy and boosting opportunities further.

Another means to boost economic activity is ensuring more efficient and affordable logistics. Both regions bear a robust Agriculture Forestry and Fishery Sector that produce and export fresh products. Having more cold chain and port facilities at par with global standards promotes fast delivery to markets and global supply chains.

We look forward to this corridor’s economy growing even more into the future.