CAGAYAN DE ORO CITY – A top executive from one of the Philippines’ largest conglomerates has praised Cagayan de Oro’s rapid economic progress, recognizing its transformation into a vital gateway for Mindanao’s trade and logistics sector. As the city moves toward becoming the country’s fourth metropolitan center, its growing population and commercial activities continue to attract investment.
During the first-quarter general membership meeting of the Cagayan de Oro Chamber of Commerce & Industry Foundation, Inc. (Oro Chamber) on March 28, 2025, Frederick C. DyBuncio, President and CEO of SM Investments Corporation (SMIC) and 2GO Group, Inc., underscored the city’s significance as a prime location for businesses, including those under the SM Group.
Expanding Business and Economic Influence
SMIC, a major player in retail, property development, banking, and tourism, has grown into the largest retail operator in the country. DyBuncio emphasized that Cagayan de Oro’s strategic position enhances its role as a commercial and industrial hub, aligning with national economic objectives.
Strengthening Logistics and Infrastructure
As an essential logistics center, Cagayan de Oro plays a crucial role in 2GO’s operations, particularly in cold chain and ISO tank solutions. Nearly 30% of 2GO’s shipments, consisting of food ingredients, chemicals, and industrial products, originate from the city. Additionally, poultry-related shipments account for 15% of its northbound cargo, highlighting the city’s role in national supply chains.
2GO operates multiple weekly voyages between Cagayan de Oro, Manila, and Cebu, ensuring efficient transportation of goods and passengers. DyBuncio stressed that a reliable supply chain is crucial for businesses and consumers, especially in an archipelagic country like the Philippines.
Boosting Connectivity with the Mindanao Railway Project
Infrastructure projects such as the Mindanao Railway further strengthen Cagayan de Oro’s economic prospects. This railway system will connect industrial and commercial centers in Northern Mindanao, improving access to ports, airports, and business districts. Additionally, the Laguindingan International Airport is undergoing expansion through a public-private partnership, enhancing the region’s connectivity.
The government has already secured funding for the Tagum-Davao-Digos segment (Phase 1) of the railway, while the feasibility study for the Laguindingan-Cagayan de Oro-Villanueva segment (Phase 3) has been approved. Once completed, the project is expected to enhance transport efficiency and attract further investments.
Rising Consumer Demand and Social Initiatives
The city’s economic expansion has driven growth in consumer spending, as reflected in rising car sales, real estate developments, and retail expansion. SM operates two malls in Cagayan de Oro—SM Uptown and SM Downtown—and continues to invest in the region. SM Development Corporation (SMDC) is also planning a new phase of its Vail Residences project to accommodate increasing housing demand.
Beyond business growth, SM Investments remains committed to social development. Through its foundation, the company has equipped Macasandig Elementary School with digital learning tools, including computers, in partnership with SM Retail and Mastercard.
Commitment to Sustainable and Inclusive Growth
Celebrating two decades as a publicly listed company, SM Investments continues to prioritize inclusive economic development. DyBuncio reiterated the company’s mission to uplift communities through education, healthcare, and disaster relief efforts.
“Our founder, Henry Sy, envisioned SM as a way to create opportunities for Filipinos,” he stated. “As we move forward, we aim to build an SM that benefits everyone across generations.”
With strong support from industry leaders like SM Investments, Cagayan de Oro continues to solidify its role as a key economic hub in Mindanao, driving progress and opportunities for businesses and communities alike.
