To sustain economic growth: Expert warns Cebu needs to solve infrastructure, power woes

CEBU, Philippines — Cebu and the wider Central Visayas region are emerging as the Philippines’ most dynamic growth hubs, but more needs to be done to capture the attention of international investors, a renowned economist said.

Speaking at the “Business Summit 2025 “of the Mandaue Chamber of Commerce and Industry (MCCI), part of the celebration of Mandaue Business Month 2025, Marco Miguel Javier, Vice President and Head of Economics & Market Research at BPI Global Markets outlined both the opportunities and the hurdles for the region’s economic ascent.

“Central Visayas has achieved two consecutive years as the fastest-growing region in the Philippines, driven primarily by services, tourism, and a recovering agricultural sector,” Javier said. “But to sustain this momentum and draw global capital, infrastructure, energy stability, and investment efficiency must be urgently addressed.”

Javier noted that the Philippines, despite global trade tensions, remains among the least vulnerable economies in ASEAN due to its consumption-driven structure, with household spending accounting for 75 percent of GDP (gross domestic product).

Javier reported that consumer confidence and robust bank lending have supported expansion in real estate, retail, logistics, and tourism.

Cebu’s strategic location also positions it as a natural gateway for manufacturing diversification under the “China Plus One” supply chain strategy.

With international companies shifting production away from China, Javier argued that Cebu could rival Vietnam and Malaysia in attracting industrial parks, data centers, and export-oriented manufacturing — provided that policy support and investor confidence are strengthened.

Tourism remains another anchor. Cebu’s global reputation as a leisure and events destination, from the Ironman triathlon to high-end resorts, offers significant upside, particularly if the region addresses capacity constraints in airports, seaports, and hospitality infrastructure.

Despite the optimism, Javier cautioned that investment spending nationwide remains sluggish, growing only marginally in recent quarters.

In Cebu and the Visayas, chronic bottlenecks in infrastructure, logistics, and power reliability could deter foreign investors.

He emphasized three priority areas; First, the Infrastructure and Mobility – “We cannot continue to rely on roads alone. Cebu must invest in mass transit, better airport-to-city connectivity, and inter-island linkages if it is to compete with Thailand or Vietnam in scale.”

Second, Energy Security – Javier warned against a repeat of the 1990s brownouts that crippled investor confidence. “Stable, diversified energy sources — traditional and renewable — are non-negotiable for Cebu’s industrial future.”

Third, Business Climate and Efficiency – The Philippines ranks 51st in the IMD World Competitiveness Index, behind its ASEAN peers. Red tape and inefficiencies, he said, must be addressed to attract serious global capital.

Despite challenges, Javier struck a cautiously optimistic tone. Inflation is expected to remain within the Bangko Sentral ng Pilipinas’ target range, interest rates have room for cuts, and unemployment is at historic lows.

For Cebu and Central Visayas, the challenge lies not in proving economic vitality, but in scaling it to global standards.

“Cebu is already a success story,” Javier concluded. “The next test is whether it can transform that success into global competitiveness — to not only grow, but to lead in Southeast Asia’s investment map,” he added.