CAGAYAN DE ORO CITY- The Chief Executive of a top Philippine company in the Forbes Global 2000 and the country’s largest in terms of market capitalization, recently lauded Cagayan de Oro’s economy and location as it grows into the fourth metropolitan center based on its projected population growth and functional role as a major gateway and transshipment hub in Northern Mindanao.
In his keynote speech during the March 28, 2025 1st Quarter General Membership Meeting of the Cagayan de Oro Chamber of Commerce & Industry Foundation, Inc. (Oro Chamber), Mr. Frederick C. DyBuncio, President & CEO of SM Investments Corporation and the 2GO Group, Inc., cited how “Cagayan de Oro is at a critical juncture in its development, and remains an ideal foothold for many companies, including those within the SM group.”
SM Investments Corporation (SMIC) a.k.a. SM Group, is a Filipino conglomerate with interests in various sectors, mostly in shopping mall development and management, retail, real estate development, banking, and tourism.
Publicly listed in 2005, it has become one of the largest conglomerates in the Philippines, being the country’s dominant player in retail with 4,470 retail stores nationwide, consisting of department stores under the SM Store; specialty stores; SM Supermarkets; SM Hypermarkets; SaveMore, Alfarmart and Waltermart stores..
The Company is engaged in property development SM Prime Holdings, Inc. and financial services through BDO Unibank, Inc. and China Banking Corporation.
Mr. DyBuncio is also the Chairman, President/Chief Executive Officer of 2GO Group, Inc., and Chairman of Atlas Consolidated Mining and Development Corporation.
“Furthermore, according to the National Economic Development Authority, geography will play a key role in accelerating development in this area. This is a very exciting time for the region, and it highlights the pivotal role that Cagayan de Oro will continue to play as a thriving business and investment hub in the coming years,” he stressed.
Logistics Hub
As demand for cold chain and ISO tank solutions continues to rise, he said Cagayan de Oro remains integral to 2GO’s operations, with shipments from CDO accounting for nearly 30% of 2GOs total ISO tank and flexibag cargo, consisting of food ingredients, additives, industrial chemicals, and compounds.
Additionally, hatching eggs and poultry meat from CDO made up another 15% of the group’s northbound cargo—figures that reflect the city’s growing importance in their expanding network, he added.
Cagayan de Oro presents an ideal atmosphere for businesses to flourish in Mindanao due to an assertive retail trade, growing manufacturing sector, robust motor vehicle industry, and an expanding service and hospitality sector.
“Your growing economy is considered as 2GO’s biggest shipping hub in Mindanao. SM’s one stop shop logistics solutions provider currently operates 4 times weekly voyages between Cagayan de Oro and Manila, as well as twice weekly service to and from Cebu, and is the only passenger-cargo operator plying the Cagayan de Oro-Manila route with one of the most modern and fastest vessels in the Philippines.
“With the challenges of being an archipelago, a reliable supply chain is very important for traders and consumers in order to optimize product shelf life. Moreover, a strong transportation and logistics partner empowers local businesses and industries to move goods and people efficiently and conveniently,” he said.
Mindanao Railway
On top of the Cagayan de Oro Baseport and the Mindanao Container Terminal (MCT) in Tagoloan, Misamis Oriental being Mindanao’s premier platforms, Cagayan de Oro is also undergoing greater connectivity especially with the railway system in the pipeline that is designed to link the industrial and commercial centers in northern Mindanao and provide connection to the two ports, the Laguindingan International Airport (now undergoing expansion under a Public-Private Partnership with Aboitiz InfraCapital), and the 3,000 hectare PHIVIDEC Industrial Estate, the Philippines largest.
Currently, the Tagum-Davao-Digos segment (Phase 1) has already secured government funding, while the Laguindingan-Cagayan de Oro-Villanueva, Misamis Oriental segment (Phase 3) has received approval for a feasibility study.
The Villanueva-Cagayan de Oro-Laguindingan-Iligan Airport Railway System has been a long-standing advocacy of Rep. Rufus B. Rodriguez (2nd District, Cagayan de Oro) since the 14th Congress in 2007. In 2009, he secured P60M for a Feasibility Study which was completed in 2010. In Sept. 2023, DOTr Secretary Jimmy Bautista approved P100 million from the Public-Private Partnership Center Project Development and Monitoring Facility (PDMF) Committee for the pre-feasibility study completed last July 2024. The final FS is now underway and once finished, construction of the project will start. A pre-FS for Phase III-A from Laguindingan Airport to Iligan City will then be funded and likewise pursued.
“There are high hopes pinned on this project as it entails the construction of passenger railway stations, cargo terminals, maintenance depots, operations control centers, and connections to seaports and commercial areas”.
Consumption Growth and Social Good
The rising population and degree of economic activity in Cagayan de Oro is also spurring growth in consumption. Local purchasing power has been evident in the growth in car sales, home ownership, urban development and education-related developments.
Providing access to modern retail, SM has two malls in Cagayan de Oro—SM City CDO Uptown and SM CDO Downtown which has a BPO Tower, an event hall and a water catchment underneath as part of disaster resilience efforts.
Mr. DyBuncio also revealed how there is growing demand from Filipino home-seekers in Cagayan de Oro as shown by the performance of Vail Residences, developed by SMDC, its residential property arm.
“SMDC is looking at another phase of Vail Residences which reflects the vibrancy in economic activity in the metropolis,” he added.
Digital Learning Hubs
Not the least, Mr. DyBuncio disclosed how Macasandig Elementary School, which was the 85th school building of the Foundation, has been equipped with 20 computer desktop sets and LCD monitors to provide students with the opportunity to develop their digital skills through hands-on experience with various computer programs and tools through SM Foundation, SM Retail, and Mastercard.
SM For All
In closing, Mr. DyBuncio said SM Investments recently marked their 20th anniversary as a publicly-listed firm, and he continues to take part in SM’s journey towards inclusive growth.
“Coming from humble beginnings, our founder, Henry Sy sought a better life for his family and the community he became part of. This is the same vision that drives SM today.”
“Through our foundation, we collaborate with the communities we operate in to uplift lives of underprivilege individuals, championing education, healthcare, agriculture and contributing to disaster relief efforts when needed. Our core business in retail, banking and integrated property developments, together with our portfolio investments continue to support job creation and MSMEs across the country.”
“Our brand promise, “WE’VE GOT IT ALL FOR YOU,” has served us well for years. But as we move forward, we aim to build an SM FOR ALL—one that reaches and benefits every Filipino, ensuring that our growth is shared by all across many generations.”
