Duterte presidency promises Mindanao economic boom says Lorenzo Tan

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Duterte presidency promises Mindanao economic boom says Lorenzo Tan

- in Economy, Opinion, Philippines

Mindanao is set to enter a golden age in infrastructure development during the six-year Presidency of Rodrigo Duterte. This is the outlook of former Bankers Association of the Philippines (BAP) president and one of the Philippines’ leading bankers, Lorenzo Tan.

According to Tan,

With establishment of the ‘Malacañan in the South’ under President Duterte, coupled with the start of Asean Economic Community, we can expect both economic growth and peace in the Mindanao region. The prospects of new infrastructure like railways and airports linking the various cities and provinces of Mindanao will create structural demand that will increase trade and business.

This sentiment is also shared by Finance Secretary Carlos Dominguez. In a speech before top clients of Banco de Oro, the secretary said

There will be no want of business opportunity, not only in the Davao region but all throughout the island. From being a net exporter of its population, Mindanao can look forward to inward migration, especially of young talent. The next generation will be suitably employed in high technology industries, BPOs (business processing outsourcing) and support businesses of every sort.

During the campaign, Duterte promised to prioritize the building of the much-delayed Mindanao Railways System and aggressively pursue peace agreements with both the Communist and Muslim insurgents that still affect parts of the countryside. With both programs quickly moving through the pipeline since Duterte took office, Tan and Dominguez’ predictions are well on its way to reality.

Speaking about real estate development, Tan says that

Structural demand will lead to a demand for all real estate product types including residential, office, retail, industrial warehouse, and hotel and leisure projects.

Another important factor for Mindanao growth is the the integration of the Philippines with it s southeast Asian neighbors. According to Tan,

ASEAN has a population of 620 million. This is a big market for products and services from Mndanao being the gateway to Brunei, Indonesia, and Malaysia.

Speaking about Davao, the city where Duterte was mayor for more than two decades, Lorenzo Tan predicts that

As people see an increase in GDP growth rates in Mindanao under Duterte administration, there will be tremendous ‘psychological lift’ in the local population that will create demand for primary and secondary homes, Move Up housing, and SME commercial spaces. This will be in addition to the many vertical residential developments that had already started in Davao years ago.

Looking at the growth prospects for what had previously been one of the most neglected areas of the Philippines, Tan is optimistic about the future of Mindanao.

The Duterte presidency could not have come at a better time for Mindanao.Exciting time to invest in Mindanao.

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