Secretary of Finance
September 18, 2025
Province of Cebu Governor Pamela Silagan Baricuatro; Cebu City Mayor Nestor Dionson Archival Sr.; fellow workers in government; our partners from the local and international business chambers; guests; ladies and gentlemen: Maayong adlaw kaninyong tanan.
Thank you for joining us here today. You might be wondering why we chose Cebu for the Visayas leg of our economic briefing.
The answer is simple: Because Cebu is front and center of the Philippine growth story.
For when we say “Building Better, Delivering More”, Cebu already proves that it can be done.
Central Visayas, where Cebu is the economic powerhouse, has been the fastest-growing regional economy in the country—expanding by 7.3% for two consecutive years.
The region’s dynamism helped fuel our national growth, averaging 5.9% since President Marcos, Jr. took office in 2022. This is among the fastest growth in Asia and nearly double the global pace.
And we achieved this despite an ocean of global uncertainties, such as the Russia-Ukraine war, the Israel-Gaza war, the Israel-Iran war, geopolitical tensions with China, a cold war, and trade wars.
This momentum has kept our fiscal consolidation on track, with our revenue effort hitting 16.7% of GDP last year—the highest in 27 years. This is also among the fastest compared to our neighbors.
Our recent credit rating upgrade and affirmations attest to the global investors’ strong trust in the Philippine economy.
This confidence translates into lower borrowing costs for government investments in infrastructure and human capital, and more affordable financing for private sector growth and expansion.
Another clear proof of investor confidence is the robust reception we received during our recent roadshows in Japan and India.
Expansion plans are already being set in motion, which will bring direct benefits to Cebu.
Around the world, inflation is expected to average 4.2% this year. But in the Philippines, we already brought it down to just 1.7% as of the end of August, below our target of 2-4%.
With inflation well under our control, we expect stronger domestic demand and continued improvements in our job market, which currently has 50.8 million workers in the labor force. And the majority of them have formal, stable jobs—clear signs of our growing middle class.
This also opens more room for the BSP to ease interest rates, bringing down borrowing costs, empowering households, and enabling MSMEs and big companies to invest and expand.
All these gains place us firmly on track to becoming the world’s 13th-largest consumer market by 2030—giving vast opportunities for businesses right here in Cebu.
The IMF projects that by the same year, we will rank among the world’s top 26 economies in terms of nominal GDP.
By 2051, projections show that we will become the 18th-largest economy. And fast forward to 2075, we are poised to become the 14th biggest economy in the world—outpacing France.
Our strong fundamentals and promising economic outlook will certainly sharpen Cebu’s edge as one of Asia’s premier outsourcing destinations.
This will also strengthen Cebu’s position as the vital gateway for trade linking Luzon, Visayas, and Mindanao to Asia and the rest of the world.
With PEZA’s establishment of its first-ever AI Tech Academy in Cebu, we anticipate the transformation of its 45 ecozones into hotspots for advanced manufacturing, data analytics, and AI-powered solutions. And we hope this to be replicated nationwide.
Our promising prospects will also cement Cebu’s leadership in shipbuilding, furniture, and food processing industries.
It is no surprise, then, that Japanese giant Tsuneishi chose Cebu to build the world’s first methanol-powered bulk carrier.
With the support of the French government, French company OCEA is also set to build 40 patrol vessels for us, twenty of which will be assembled locally here in the Philippines.
And with our aggressive drive to expand airports across the archipelago, led by the award-winning Mactan-Cebu International Airport, Cebu will remain one of our nation’s top tourism magnets.
We just privatized the NAIA as well as the Laguindingan and the Bohol-Panglao International Airports. In the next three years, we aim to award 12 more regional airport projects, including the Puerto Princesa International Airport.
At the same time, being home to some of the country’s finest universities, Cebu will keep producing a highly skilled, adaptable, and globally competitive Filipino workforce.
With a median age of just 25, the Philippines boasts one of the youngest populations in the world.
This is a powerful edge that allows us to forge strategic demographic partnerships across the globe: their capital and technology, our talent and vast domestic market.
Clearly, Cebu has outgrown its role as a regional hub.
It now stands as a national powerhouse that competes, creates, and connects the entire Philippines to the world.
And as Cebu raises the bar, the national government is fully prepared to match its dynamism.
With President Ferdinand Marcos Jr. as the foremost champion of transparency and good governance, we are cutting red tape, rewarding innovation, and making it easier, faster, and more profitable to do business in the Philippines.
We have also made it clear that this administration will never ever turn a blind eye to corruption. This is a powerful assurance to businesses that your investments will be safeguarded.
Because this administration is fully committed to doing everything in its power to help you succeed. For when the private sector wins, the Filipino nation wins as well.
This is why one of our first acts was to create the Private Sector Advisory Council—a direct channel where your ideas shape government action.
Today, PSAC meets twice a month, dismantling roadblocks and aligning policies with your needs. And it is headed by Sabin Aboitiz whose family has deep roots in Cebu.
The CREATE MORE Act is one product of this strong partnership, which is designed to attract global capital while strengthening domestic enterprises to thrive and secure partnerships with international players.
For instance, you can now enjoy 4 to 7 years of income tax holiday, depending on the type and location of the project.
The Special Corporate Income Tax and Enhanced Deductions Regime are now extended to a period of up to 10 or 20 years.
Labor-intensive projects are allowed to apply for an extension of another 5 or 10 years.
An additional 100 percent deduction on power expenses and an additional 50 percent reinvestment allowance are available to those in the manufacturing and tourism sectors.
Export-oriented enterprises’ local purchases are zero-rated while importations are VAT-exempt.
And for projects with investment capital of at least 50 billion pesos or direct local employment generation of at least 10,000 workers, incentives could be tailored or bespoke for up to 40 years. That’s long-term certainty that you can bank on.
To ease our investors’ entry in Cebu, we have also set up Green Lanes that fast-track approvals for high-value investments.
Since its implementation in 2023, we have already app E’s roved 212 projects worth 5.92 trillion pesos.
This includes four renewable energy projects in Cebu, such as the Kandungaw Wind Power Project, Liloan Solar Power Project, Medellin Solar Power Project, and Daanbantayan Solar Project.
The Ease of Paying Taxes Law has also significantly simplified tax compliance procedures and embraced technology to make it easier for you to fulfill your obligations.
Businesses can now file and pay taxes anywhere. And we have made the system more responsive, fair, and straightforward.
And by the way, with the increase in the National Tax Allotment for local governments, Cebu now receives a bigger share, which means more resources for better public services.
We are also fighting smuggling through digital border systems and integrating cross-border invoicing for greater transparency.
Meanwhile, our Public-Private Partnership Code makes participation in our flagship infrastructure projects easier, faster, and more transparent than ever.
Of the 207 flagship projects under the Build Better More Program, 11 are right here in the Visayas region.
One of the upcoming projects is the 35-kilometer Cebu Bus Rapid Transit Project with full operations targeted by 2030.
This will transform mobility in Cebu, providing efficient, reliable, and sustainable public transport for our people.
After over a decade of planning, its first package is already targeted to be opened to the public by this quarter of the year.
We also have the New Cebu International Container Port, which officially began construction this year.
This will cement Cebu’s role as the trade and logistics hub in Asia, directly supporting entrepreneurs engaged in import and export activities.
Aside from the infrastructure boom that will unlock new growth corridors in Cebu, we have recently enacted new laws that are pro-business.
We have the VAT Refund for Foreign Tourists, which serves as a direct boost to Cebu’s tourism. This leads to bigger tourist receipts and more of that money circulating in Cebu’s local economy.
Not only that, it also lifts demand for our locally made products and goods, giving homegrown entrepreneurs a stronger market.
We recently reduced our stock transaction tax from 0.6% to just 0.1%. This makes our capital markets leaner, more liquid, and more attractive for local and foreign investors.
And we have already rationalized our mining fiscal regime. This will provide fiscal stability and certainty to current and potential mining investments here in Visayas, while ensuring that we continue to protect the environment.
We are also making investing in our country more stable than ever by allowing land leases of up to 99 years for foreign investors.
Your future foreign partners, whether in industrial estates, agro-industrial ventures, or agro-forestry, among many others, can now plan with confidence, knowing that the Philippines is committed to sustaining their investments across generations.
We are likewise exploring a general tax amnesty that will allow businesses and individuals to settle past liabilities through a simplified process, giving everyone a fresh start.
With all of these transformative reforms and polices in place, Cebu and the whole of the Philippines are more than ready. Ready with its talent, ready with its infrastructure, and ready with the drive to grow your business.
But to Cebu’s own entrepreneurs, I say this: do not stop here. Carry the Cebu brand of dynamism beyond your shores, as we, on our part, spotlight new growth hubs in our next briefings ahead.
Let us bring that same energy to Luzon, to Mindanao, and to every corner of our archipelago.
Together, let us build better, deliver more, and make the next chapter of Philippine growth not just a story of Manila and Cebu, but a story written by the rest of our islands too—in every province and in every Filipino.
Let us unlock the talents of our young workforce and build a nation where every Filipino can thrive, secure meaningful jobs, and improve their lives.
Because only then can we truly define our shared success. This means lifting 8 million more Filipino lives out of poverty by the end of the President’s term.
I am confident that with great partners like you, we can achieve this ultimate goal sooner than expected.
Rest assured, the government is here to help you grow and prosper.
We will guard your trust, protect your investments, and deliver on our promises.
Muli, daghang salamat, Cebu. Mabuhay kayong lahat! Mabuhay ang Bagong Pilipinas!
