At a recent business forum in Cebu, Special Assistant to the President for Investment and Economic Affairs Frederick Go urged companies to capitalize on what he described as an unprecedented investment landscape under the Marcos administration. Speaking at the Cebu Business Month (CBM) 2025 Business Investment Forum held in early July, Go said the country now offers its most liberal and future-ready investment climate to date.
“Our goal is clear: to build an investment-led economy that brings in long-term capital, creates many jobs, and improves the lives of all Filipinos,” stressed Go.
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Growth drivers
During the talk, Go highlighted that the Philippine economy grew by 5.6% in 2024 and 5.4% in early 2025, making it one of the fastest-growing in the region and globally. Inflation has dropped to 1.4%, employment is strong at 96.1%, and credit ratings remain stable. The government is working toward a stronger credit grade to make borrowing cheaper, and the country is on track to reach upper-middle-income status by 2025, depending on currency shifts.
To boost investor interest, Go touted the Create More Act as a key reform offering long-term tax breaks for priority projects and streamlining approvals through investment promotion agencies. He added that a global investment roadshow is planned once talks with the US on tariff reciprocity are completed.
Meanwhile, the Build Better More program continues to drive infrastructure growth, with over 200 flagship projects valued at nearly ₱10 trillion across transport, energy, water, agriculture, and digital connectivity. On digitalization, Go noted that more than 93 million Filipinos are now enrolled in the national ID system via the eGovPH app.
Go said the government is pushing key reforms to attract more investors, including laws on right-of-way, mining taxes, and a measure to extend land lease terms to 99 years. “Our investment policy is no longer about restriction. It’s about readiness,” he said. “Now is the time to invest in the Philippines — and especially in Cebu.”
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Cebu’s undeniable growth
In 2024, the Central Visayas region, which includes Cebu and Bohol, posted a 7.3% GDP growth, making it the fastest-growing regional economy in the Philippines, surpassing the national average of 5.7%.
Tourism plays a significant role in the island’s economy. In 2024, Central Visayas, dominated by Cebu, recorded 7.52 million overnight tourist arrivals, a 37% increase over 2023. As of April 2025, around 1.5 million people in Central Visayas depend on tourism for their livelihood, whether through direct employment or through supporting industries and services.
Cebu was named Asia’s Leading Wedding Destination for 2024 by the World Travel Awards. “This recognition underscores Cebu’s ability to provide a diverse and enriching tourism experience for couples, families, and all travelers,” noted DOT-7 Director Judy Gabato.
She highlighted Cebu’s top-tier infrastructure, including Mactan Cebu International Airport. Central Visayas tourism establishments also earned accolades in the 2024 ASEAN Tourism Standards Awards, with Bai Hotel and Jpark Island Resort among the recognized venues.
But as Cebu and the rest of the country pursue inclusive growth and global competitiveness, one critical enabler is coming into focus: electricity. More than just a utility, reliable, sufficient, and affordable power is now the linchpin for sustaining momentum in key sectors — from industry and services to tourism, health, education, and digital connectivity.
As of May 2024, peak demand in Cebu reached 1,223 MW, while local generation capacity stood at only 1,123 MW, leading to a 100 MW shortfall and frequent power interruptions. Department of Energy (DOE) projections indicate Visayas’ peak demand could grow up to 10,678 MW by 2050, with Cebu responsible for nearly half of that load. Metro Cebu’s population is projected to hit 3.8 million by 2030, placing a rising demand on its power infrastructure.
Cebu’s key economic drivers, including tourism, manufacturing, and IT are heavy energy consumers. The ILAW Foundation, a non-profit advocating for reliable and affordable electricity, warned that Cebu’s current energy stability may not last without urgent infrastructure upgrades. In a recent focus group, the group in Cebu, daily outages cost large businesses an estimated ₱216,000, while MSMEs lose about ₱82,000 per day.
Meanwhile, electricity accounts for nearly 40% of operational costs in factories, and an inefficient or unstable power supply could deter investors.
Mandaue Chamber of Commerce and Industry (MCCI) President Marc Ynoc stressed that a stable power supply is vital for a tech-driven economy. With energy-hungry sectors like AI and data centers driving growth, ensuring a strong and responsive grid has become essential. “Electricity costs play a crucial role in attracting venture capital and foreign investments,” he stated.
Powering public services
Reliable energy does more than fuel economic growth. It drives social progress at the grassroots by powering essential services that lift communities out of poverty and improve quality of life. This helps ensure that even the most marginalized areas benefit from the development that Cebu and the nation are striving toward.
At the “Powering Cebu” business forum, Cebu Chamber of Commerce and Industry (CCCI) President Jay Y. Yuvallos highlighted that a stable and reliable power supply is essential for mitigating economic risks and sustaining progress.
“In the Central Visayas Regional Development Plan for 2023 to 2025, [it was] mentioned that if we are able to sustain a growth rate of 6.5 to 8.5%… we are going to see a reduction of poverty incidence in Central Visayas from 26.7% to 10.5%. That’s a lot of impact,” he said. According to Yuvallos, this level of growth could lift more than 200,000 families out of poverty, underscoring how vital dependable energy is to inclusive development.
According to the Philippine Institute for Development Studies (PIDS), frequent power supply interruptions not only diminish local government revenues by nearly ₱10.7 billion in lost business and real estate taxes per incident but also constrain LGUs’ ability to fund housing, community programs, employment services, and other welfare initiatives worth around ₱3.8 billion.
Additionally, unstable electricity significantly undermines healthcare delivery and patient safety in the Philippines. In March 2024, the Department of Health (DOH) reported that numerous hospitals faced power disruptions alongside water shortages as the country prepared for the El Niño phenomenon.
When a sudden grid failure isolated the entire Panay-Guimaras region in January 2024, Iloilo and its surrounding provinces were plunged into darkness for over 24 hours. This blackout forced the suspension of face‑to‑face classes at 284 public schools and disrupted industries, services, and local businesses.
“In three days, we would have lost P1.5 billion. What a way to start the new year!” said Iloilo City Mayor Jerry Treñas, describing the blackout as an “economic sabotage.”
Strengthening Cebu’s energy security
Because Cebu still imports around 60% of its electricity from neighboring islands, it is highly vulnerable to external disruptions, natural disasters, or technical faults.
This prompted the advocacy group ILAW to call for new baseload power sources to prevent future outages and protect the tourism economy from major losses. Baseload power is the constant, minimum level of electricity supplied by reliable sources to meet ongoing energy demand. It is typically provided by reliable and steady power sources, such as coal, natural gas, geothermal, or hydroelectric plants, that can run continuously, ensuring a stable electricity supply regardless of fluctuations in demand.
To strengthen Cebu’s energy security, multiple efforts are underway. Among them is the 169 MW expansion of the Toledo power plant. Simultaneously, Cebu is ramping up renewable energy, with over 150 MW of solar projects underway in Daanbantayan, Dumanjug, and Toledo—initiatives led by Acciona Energía and Freya Renewables to meet growing demand and stabilise long-term costs.
Supporting these generation efforts, the National Grid Corporation of the Philippines (NGCP) continues to upgrade transmission infrastructure. The full activation of the Mindanao-Visayas Interconnection Project in early 2024 now allows real-time power sharing across the country’s three major grids—enhancing supply flexibility and resilience.
Still, it is important to note that Cebu’s energy transition remains a work in progress. While new renewable projects and power plant expansions mark significant steps, achieving true stability requires coordinated planning, timely permitting, and continuous investment in both generation and transmission infrastructure.
Sources:
https://www.sunstar.com.ph/cebu/go-urges-investors-bet-on-cebu-bet-on-ph
https://businessmirror.com.ph/2024/08/30/cebus-hi-tech-ambitions-hinges-on-energy-abundance
https://pia.gov.ph/central-visayas-tourism-industry-logs-80-recovery-rate
https://www.facebook.com/watch/live/?ref=watch_permalink&v=1263027161491911
https://www.pna.gov.ph/articles/1220722
https://tribune.net.ph/2024/01/04/panay-blackout-points-to-ngcp-lapses-erc
https://tribune.net.ph/2024/06/29/adequate-power-supply-backstops-cebu-growth
https://en.wikipedia.org/wiki/National_Grid_Corporation_of_the_Philippines