Martial law has no effect on business in Davao region

DAVAO CITY – The declaration of martial law in Mindanao has no significant effect on the business climate in Davao Region, Department of Trade and Industry (DTI)-11 regional director Maria Belenda Q. Ambi said.

Ambi said the productivity of companies in the region has not been affected since the May 23 declaration of martial law in the entire island of Mindanao by the first Mindanao President – Rodrigo R. Duterte – following the clash between military and Islamic Stateinspired Maute Group in Marawi.

She said that the region has been continuously growing with more interest coming from big investors, who expressed their intentions to set up their operations in the region.

Some of them even launched their projects after martial law was declared, she said.

According to the Preliminary Annual Report of DTI-11 released on Tuesday, the region has recorded investments amounting to R7.620 billion as of third quarter of this year. Most of these fresh investments were registered in Davao City (R4.903 billion), Davao del Sur (R1.783 billion), Davao del Norte (R546.81 million), and Compostela Valley (R386.74 million).

It added real estate has remained as the top industry here at 54 percent, then manufacturing 30 percent, agriculture, forestry and fishing 12 percent, and electricity, four percent.

“Despite the President has declared Mindanao in state of martial law, we have seen no significant change, deterioration, or slowdown in the production of the businessmen,” Ambi said.

Ambi said the tourism sector experienced “a temporary setback” as an immediate result of the declaration of martial law, but noted that the industry has since recovered because it’s a “different martial law this time,” compared with to the military rule imposed during the time of former president Ferdinand E. Marcos Sr. from 1972 to 1981.

DTI-11 assistant regional director Edwin O. Banquerigo admitted peace and security has remained to be a major hindrance in the region, along with pests and diseases and threats of climate change, affecting particularly the banana industry.

On peace and security, Bancquerigo added that they pushing coffee and cacao development in rural areas to address poverty, which he believes causes the insurgency problem.

“Poverty is the root cause of peace and order problem. Hopefully, we can address that through crop development,” he added.