MINDANAO could contribute more to national economic growth by shifting toward higher-value activities such as agro processing, manufacturing, and technology-enabled services, according to the Department of Economy, Planning, and Development (DepDev).
DepDev Undersecretary for Regional Development Group Carlos Bernardo O. Abad Santos said on Monday that while Mindanao has demonstrated its capacity to grow, the bigger challenge is improving the composition and quality of that growth.
‘The issue is not whether Mindanao can grow, it can. The issue is whether we can change the composition and quality of that growth,’ Abad Santos said at the Philippine Economic Briefing held in Davao.
Official data showed that Mindanao’s economy grew by 4.7 percent in 2025, faster than the 4.4-percent national growth recorded during the year.
Services led the region’s growth at 6.9 percent, while industry expanded by 2.7 percent, and agriculture by 1.9 percent.
For Abad Santos, the region’s growth needs to translate into greater productivity and more value generated within Mindanao, particularly in sectors with a large production base.
He said Mindanao needs to move beyond producing raw or low-value commodities by increasing processing and manufacturing activities and developing higher-value services.
The shift is particularly important in agriculture, where Mindanao accounts for 37.4 percent of the country’s total output from agriculture, forestry and fisheries, according to official data.
Abad Santos said Mindanao also needs to improve connectivity to reduce the cost and time of moving people, goods, and capital across the region.
‘First, we need to raise productivity by modernizing our productive base, particularly agriculture and fisheries. Second, we need to connect better by improving our transport and logistics systems,’ he said.
The region is pursuing an integrated intermodal transportation system involving airports, roads, rail, and ports, he said, adding that these investments should help businesses move goods and people more efficiently.
From there, Abad Santos identified four areas where Mindanao could build on its existing economic strengths: agribusiness and food systems; logistics and infrastructure; digital and higher-value services; and industry, including manufacturing, energy, and the green transition.
He said the region does not have to choose between traditional sectors and emerging industries, as existing activities can instead be upgraded into higher-value ones.
Agriculture, for instance, can expand into agro processing and food industries, while the region’s connectivity can support advanced logistics.
Its workforce can support digital services, while its resource base can be developed for new energy and green industries, he said.
He said this would require better infrastructure, skills aligned with the industries the region seeks to attract, stronger links between research and commercial applications, and regulations that make investment easier and more predictable.
The region would ultimately need investment capable of scaling these opportunities, he said.
‘If we get these conditions right, the payoff is simply not more investment. It is higher productivity, better jobs, more competitive industries in Mindanao,’ Abad Santos said.