PEZA eyes agri-processing, rubber, energy and halal to lift Mindanao's investment share

The Philippine Economic Zone Authority (PEZA) is promoting food processing, rubber-based manufacturing, logistics, renewable energy and halal exports as Mindanao's strongest investment prospects, as the region continues to capture only a small slice of the agency's approved investments, Mindanao Times reported.

Abdullah Adel-Khan Alug, PEZA zone administrator and Mindanao cluster head, made the pitch on Oct. 28 during the second day of the Mindanao Development Forum at Dusit Thani in Davao City. He identified four growth areas: high-value food and agribusiness, resource-based manufacturing, export infrastructure and logistics, and digital services.

For agro-industry, Alug pointed to value-added coconut products, premium cacao and coffee, processed tropical fruits and seafood. He said reliable raw material supply, product standards, cold-chain access, traceability and quality certification are key to success. He also promoted rubber products, molded components, footwear and sporting goods, citing existing sports equipment manufacturing in Mindanao as evidence of export-quality capacity, though he said local suppliers must meet standards for quality, traceability and consistent volume.

On energy, he cited opportunities in grid strengthening, substations, storage, and hydro, solar, geothermal and biomass sources to serve new and expanding zones. He also called for climate-resilient ecozone design, including drainage, flood protection and hazard planning.

For halal and regional exports, Alug proposed working with the Mindanao Development Authority and the Bangsamoro government, noting potential in the BIMP-EAGA subregion, while cautioning that such opportunities still need buyer and regulatory validation. He named Davao and Panabo as candidate areas for processing and manufacturing study.

"The challenge is to convert these advantages into investment-ready opportunities through strong partnerships among government, investors, economic developers, development institutions, and local communities," Alug said.

According to the report, PEZA approved P309.629 billion in investments nationwide from January to October 2026, up 76.56 percent year on year, but only P11.115 billion went to Mindanao. As of September, the region had 42 ecozones and 142 registered enterprises, with Davao Region hosting 19 zones, mostly IT parks and centers in Davao City plus industrial estates in Panabo City and Tagum City.

Mindanao ecozones have generated 112,416 jobs from 1995 to August 2026. Investors in PEZA zones may avail of incentives under the CREATE MORE law, including income tax holidays of four to seven years for projects below P50 billion and 10 years for larger ones, and land leases of up to 99 years.