Cebu seeks to revive manufacturing investments

CEBU, Philippines — Cebu is seeking to revive manufacturing investments and diversify its economy despite power-supply constraints, with the province turning to alternative energy sources to address shortages and improve its appeal to investors.

Brian To, a consultant to the Cebu provincial government and global strategist, said the province is pursuing foreign investments in manufacturing and emerging industries as it seeks to reduce its reliance on the services sector and create new jobs.

“We have to do something to mitigate,” To said in an interview with the Cebu Economic Journalists Association, referring to the potential impact of service companies leaving Cebu and the jobs tied to the sector.

The strategy is aimed at building a broader economic base that can generate employment and support related industries such as housing, education and health care.

One potential investment is electric-vehicle manufacturing. An Asean-based company is considering Cebu as a test site for electric motorcycles, To said. The company makes motorcycle parts and batteries and is involved in assembly.

To declined to identify the company or disclose investment details, saying its chief executive is expected to make a formal announcement at the upcoming Cebu Economic Forum 4.0.

Cebu has attracted investors from China, South Korea, Oman, Russia and Europe through three investment forums, To said. Vietnam and Singapore have also expressed interest.

About P4 billion in investments have been generated from previous investment and economic forums since the program began, with most projects focused on development and infrastructure rather than tourism, he said.

Power remains a key hurdle as Cebu competes for manufacturing projects. Investors typically consider labor, energy and water costs when choosing where to locate operations, To said.

The province is looking at alternative energy technologies as a near-term response to power constraints and as part of efforts to strengthen its competitiveness.

The investment push will take center stage at the two-day Cebu Economic Forum 4.0 on Sept. 8 and 9, where To will deliver the keynote address.

The fourth edition of the province-led forum will bring together government agencies, private-sector executives, financial institutions, local governments and potential local and foreign investors to identify projects and financing opportunities across Cebu.

Paulo Uy, the province’s investment and promotions officer, said the forum will focus on turning investment opportunities into projects, including those involving key cities and municipalities, provincial assets and public-private partnerships.

The province is also seeking to make it easier for investors to navigate government processes. A planned investment promotions office will include an ease-of-doing-business help desk to assist with permits and other requirements.

According to Uy, Cebu is also studying ways to develop idle government properties, including a proposed mega food hub on the Balili property in Naga City, southern Cebu.

“Cebu has never lacked opportunity. The challenge is to translate those opportunities into projects that investors can understand, evaluate and act on,” Gov. Pamela Baricuatro said.

The province’s broader goal is to attract industries that can bring jobs, technology and longer-term economic activity beyond traditional service-sector investments.

“We have the workforce. We have motivated people. We have multilingual people. We have an adaptable workforce. Retrainable,” To said.