Speaking at a press conference shortly after presenting the report on the Davao Region’s 2022 Socioeconomic Performance and Development Outlook for 2023 last December 30 at the NEDA office-Davao, Lim said, the increase in IRA share would enable LGUs to embark on various interventions to draw investments.
“With increased shares from national taxes and wealth we can expect the LGUs to really ramp up their efforts in attracting more investments,” Lim said.
The Mandanas Ruling mandates a 55percent increase in IRA share among LGUs. This was implemented beginning last year (2022) by virtue of Executive Order 138 Series of 2022 that provides for the full devolution of certain functions of the Executive Branch to the LGUs, as well as the creation of a Committee on Devolution. This was issued by then President Rodrigo Duterte on 1June 2021 in consonance with the Supreme Court ruling on Mandanas.
“Also, with the devolution of certain functions of the executive branch of the national government to the LGUs, we see a much more prominent role for LGUs in supporting economic activities with these investments especially on agriculture and tourism,” Lim aid.
She also mentioned good governance among LGUs as one aspect to help increase investments like the implementation of business processing and permitting and licensing systems through digital platforms and also updating their investment approach to provide incentives to investors by conducting more promotional and marketing activities through festivals, fairs and exhibits. “These would be opportunities for more investors to come and invest in Davao Region,” she said.
In relation to good governance, Ma. Belinda Ambi- DTI 11 regional director at the same press conference said LGUs are currently doing their part in attracting investments.
“ LGUs right now are very bullish in attracting investments into their particular localities. They are in fact already active in the participation in the City and Municipalities Competitiveness Index (CMCI).” She said one of the objectives of CMCI is to capacitate the LGUs to strengthen their soft and hard infrastructure so that they can attract more investments.
“LGUs are now looking into their incentives code to make it more attractive to potential investors so the role now of the LGUs in attracting investments is very crucial at this point in time because the benefits of investments will accrue to them,” Ambi said.
In Lim’s report, NEDA sees growth in investments in Davao Region this year (2023) due to the speedy post pandemic recovery efforts of global, national, and local economies.
“The approved investments or those committed by Filipino and foreign investors in the Davao Region amounted to P6.2 billion for the 1st to 3rd quarter of 2022, compared to the P 2.4 of the same quarters for 2021,” Lim said.
Lim cited three major developments that would boost investments in the region including the Regional Development Council’s (RDC) declaration of Davao Region as a Tourism and Investment-Ready Destination. By this, Davao Region is expected to become an international logistics hub with the current administration’s thrust on more strengthened local public-private partnerships (PPPs).
She also cited the revitalization of the Micro Small Medium Enterprises (MSMEs) which is another priority of the current administration that will help boost investments. The MSMEs are seen to have a major role in economic regeneration, job generation and poverty reduction.
In her report, she said MSMEs assisted by the Department of Trade and Industry (DTI) in terms of loan facilitation increased by 39 percent in 2022, from 596 MSMEs for 1st to 3rdquarter of 2021 to 827 MSMEs in 2022 (Q1-Q3). The amount of loans extended to MSMEs amounted to P61.7 million or a 29 percent increase compared to the same period in 2021.
The transformation and modernization of agriculture, forestry, and fisheries (AFF) sector is another growth driver for investments, Lim said, adding that the reopening and adding of direct and international flights at the Davao International Airport is another key factor to increasing investments.
NEDA 11 Regional Director Maria Lourdes D. Lim presenting the overview of Region 11’s 2022 Socioeconomic Performance and 2023 Development Outlook Photo NEDA 11 FB page
From left OIC Abangan of PIA 11, Director Ambi of DTI 11,Director Lim of NEDA 11I, Lt Col Arojo of the Philippine Army’s 10th Infantry Division, and Director Monteagudo of the DA 11
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