ATTRACTIVE incentives await existing and prospective investors once amendments to the 2019 Investment Incentive Code push through, an official from the Davao City Investment Promotions Center (DCIPC) revealed.
During the Business Matters on Friday, Christian Cambaya, DCIPC Investor Assistance Unit head, said the proposed amendments were already finalized and approved by the city’s Investment Incentive Board in February.
“The proposed amendment consists of more attractive incentives for existing and prospective investors,” Cambaya said.
“By the end of the month, we can submit this to the City Council for the approval of the ordinance, and before the change of administration we can implement this already,” he added.
One of the highlights includes the investment package of business tax, which will be extended from three years to five years; and the real property tax from two years to three years.
While the current list of priority investment areas is retained, Cambaya said there were proposed additional sub-sections and openings compared to the 2019 Code.
For instance, under light manufacturing, the current Code is limited to pharmaceuticals and cosmetics, construction-related materials, biotechnology, garments and footwear. With the amendment, food manufacturing is the new addition to the list.
Logistics related businesses and charging/refueling stations for alternative energy vehicles, on the other hand, will be added to the current infrastructure investment area.
Meanwhile, precision agriculture tech and digital health systems will be added for technology, which is currently limited to call centers, business/knowledge process outsourcing, computer software programs, applications development, start-ups, and financial technology, and innovation.
Under the Health area, it will be expanded to business catering to testing of communicable and infectious diseases and healthcare waste management.
While for agri-business, on top of the agro-processing, modern post harvest facilities, cold storage, packing facilities, trucking and agro-economic zones, the amended Code will include nitrogen freezing, individual quick freezing, and exports.
The official stressed a cost-benefit analysis study was conducted to mitigate anticipated revenue loss the city might face for longer incentives.
“Based on the analysis, it’s more beneficial to extend considering that these companies are required in return to provide employment opportunities for the people, in that sense it’s still beneficial,” he stressed.
Under the Code, if an investment reaches a specific ceiling cost, they are required to provide a specific number of employees.
He added that when a company operates, its allied industries can also have indirect benefits, citing, for example, the raw materials needed, which can be sourced from the existing operating industries in the city.
“They need power so the Davao Light gets income from that, in the long term the city government earns more, as we can collect more from Davao Light,” he added.
For the whole year of 2024, DCIPC approved a total of P3.4 billion investment from Monde Nissin Corp (P2.3 billion); Viking Cold Storage, Inc ( P700 million); Golden Senoritas, Inc (P365 million; and VA for Professionals (P9.8 million).
As of March 2025, approved investments reached P237 million, where P211 million is from Aerwall Philippines, Inc., an expanded polystyrene system wall panels manufacturing company; and P26 million from Nakashin Davao International, Inc., a frozen food and export company.
