A top business leader in the Visayas region has expressed cautious optimism for the economic prospects of Cebu and the wider area in 2026, anticipating a more active role from domestic investors.
Drivers of Growth Amid Global Headwinds
Melanie Ng, the area vice president for the Philippine Chamber of Commerce and Industry-Visayas and newly appointed co-chair of the Regional Development Council-Central Visayas, shared this outlook. She stated that while persistent global challenges like geopolitical tensions and trade policy uncertainty remain, local positives are expected to provide balance.
"Our outlook for 2026 is cautiously optimistic," Ng said. She acknowledged clear headwinds from reciprocal tariffs and scrutiny of government spending but emphasized that strong positives could support growth if reforms are implemented consistently.
Tourism and Construction as Key Engines
Ng identified tourism as a potential key growth driver for the coming year. This is supported by several developments:
- The opening of new large-scale convention facilities in Cebu City and Lapu-Lapu City.
- The addition of more international flights to the region.
- A projected rebound in visitor arrivals after a weaker performance from foreign markets in 2025.
She noted that business tourism, specifically meetings, incentives, conferences, and exhibitions (MICE), is expected to gain significant momentum.
Furthermore, the construction and real estate sector is seen continuing its recovery, moving closer to pre-pandemic activity levels. The IT-BPM industry is also forecast to sustain growth, with firms shifting toward higher-value services aided by the wider adoption of artificial intelligence.
Domestic Investors to Take Center Stage
A significant shift noted by Ng is the expected increased activity from domestic investors. This is anticipated as investment-friendly policies, including the Strategic Investments Priority Plan (SIPP) and other recent reforms, take fuller effect.
In contrast, foreign investors will likely remain more cautious as they assess global trade developments and policy directions in major economies.
Ng stressed that for the Visayas to strengthen its competitiveness, critical issues must be addressed. These include improving the ease of doing business, closing infrastructure gaps—particularly in flood control—and ensuring a reliable and affordable power supply.
Consultations Open for New Investment Blueprint
In related news, the Board of Investments (BOI) is moving forward with updating the national investment plan. Following a hybrid public consultation held on December 18, 2025, the BOI has urged stakeholders to submit position papers on the proposed draft SIPP for 2025–2028.
This draft plan updates the 2022–2025 version and serves as the national blueprint identifying industries eligible for tax incentives under the Create More Act. Its goals are to support job creation, innovation, sector upgrading, and national priorities like sustainability and disaster resilience.
The proposed SIPP aims to strengthen the investment priorities framework by focusing on closing industrial value chain gaps and promoting inclusive growth. Key proposed changes include broader definitions for "new projects," an enhanced deduction regime, and a rationalized tiering system to grant higher incentives to advanced and strategic investments.
The BOI confirmed that consultations with the private sector are ongoing. The current SIPP remains in effect until the new plan is approved. Stakeholders have until January 19, 2026, to submit their comments on the draft.
