Major investors are increasingly focusing on Davao's commercial and real estate sectors, marking a significant economic upswing for the southern Philippine city, according to regional development officials.
Discipline and Safety Fuel Investor Confidence
Arturo Milan, vice-chair of the Davao Regional Development Council, revealed that stable consumer spending, disciplined governance, and Davao's reputation for safety and order continue to attract both national and foreign companies. "Number one, the cleanliness... and the safety sa mga atoang mga guest," Milan emphasized during a business forum at Hukad, Abreeza, Ayala Malls on November 14, 2025.
The city's peaceful environment and public discipline remain its strongest assets, with Milan urging proactive promotion of these qualities. "We have to speak aloud na we are really peaceful in this part," he stated, noting that high hotel occupancy rates indicate strong business visitor traffic.
Independent assessments confirm Davao's safety credentials. Numbeo ranked Davao City as the third safest in Southeast Asia in both 2024 and 2025, scoring above 71 based on comprehensive security metrics.
Economic Performance Outpaces National Average
Davao's economic indicators show remarkable strength compared to national figures. The region's third quarter GDP registered at 4%, surpassing the national average, according to Milan's presentation.
Recent economic data reveals significant progress in controlling inflation, with rates dropping from 6.3% in 2023 to 4.0% in 2024, now within the government's target range of 2-4%.
The Annual Regional Economic Situationer report highlights Davao Region's substantial economic footprint, with gross regional domestic product reaching ₱1.02 trillion in 2023. Davao City alone contributed ₱532.54 billion, representing 52% of the regional total.
The city's 7.5% growth rate secured fifth position among highly urbanized cities nationwide, cementing its status as the region's economic powerhouse.
Infrastructure Development and Future Prospects
Milan identified efficient mass transportation as critical for sustaining long-term growth. "We cannot depend on the individual transport system... We need to have a mass transport system," he stressed, emphasizing the need for comprehensive railway solutions rather than piecemeal approaches.
Coordination with national government agencies has proceeded smoothly, with Milan noting "walay problema in terms of budget" for regional development projects. The budgeting process begins with Programs, Activities, and Projects (PAPs), ensuring alignment between regional priorities and national support.
Ongoing negotiations include high-value commercial projects, mixed-use estates, and expansion plans from major conglomerates, demonstrating robust confidence in Davao's growth trajectory despite broader economic uncertainties.
Milan attributed the region's success to its unique approach: "This is because of how we do things here," highlighting how disciplined governance, public safety, workforce protection, and strategic infrastructure planning continue to drive sustainable economic growth.
