South Luzon remains key to industrial expansion — Colliers

(Conclusion)

Last week, we discussed the rising competitiveness of Central Luzon as an industrial hub, particularly Pampanga, Bulacan, and Tarlac. This piece now highlights South Luzon’s prominence as the most competitive industrial hub in the Philippines.

Southern Luzon has long been a major growth driver of the Philippine economy. The region is among the largest contributors to the country’s annual economic output, accounting for about 15% of gross domestic product (GDP) in 2024.

Improving infrastructure connectivity has led to an influx of large multinational exporters and manufacturers, further strengthening Southern Luzon’s viability as a major industrial and manufacturing corridor.

STABLE INDUSTRIAL VACANCY
Industrial vacancy in the Calaba (Cavite-Laguna-Batangas) corridor fell to 11.4% in H2 2025 from 16.9% in H1 2025 due to stable demand. Over the past 12 months, firms that took up industrial space included manufacturers of equipment, electronics, air conditioners, air fresheners, as well as printing and packaging solutions.

The region also hosts several modernized and PEZA-accredited facilities, which remain key considerations for some high-value manufacturers and e-commerce firms. Shopee Xpress (SPX) leased its second warehouse facility with Robinsons Logistix (RLX) in Calamba, Laguna.

The Grade A warehouse features flexible layouts and state-of-the-art specifications designed to support high-volume and time-sensitive operations. We believe the continued growth of the country’s digital economy, alongside the influx of high-value manufacturing investments, should sustain demand for these facilities in Southern Luzon.

MORE MANUFACTURING INVESTMENTS ON THE HORIZON
Data from the Philippine Statistics Authority (PSA) showed that Region IV-A, or Calabarzon, received the largest foreign investment allocation of P100.4 billion ($1.7 billion) in 2025, equivalent to 37% of total approved pledges during the period. We believe these pledges should support industrial land and warehouse space take-up in the Calaba corridor once projects materialize.

Fujifilm will establish a 500-square-meter (sq.m.) Circular Manufacturing Center (CMC) within Carmelray International Business Park in Laguna, which will produce remanufactured multifunction printers (MFPs). Other major manufacturing investments in Laguna include Samsung Electronics’ $1-billion expansion project in Calamba Premiere International Park, which is expected to generate at least 3,000 high-technology jobs. Panasonic has also begun construction of a P3-billion ($52 million) factory in Ayala Land’s Laguna Technopark. The 37,000-sq.m. facility will produce refrigerators and washing machines.

In Batangas, Taiwan’s Aromate Industries is investing $4.3 million to construct a 15,300-sq.m. facility in Aboitiz InfraCapital’s LIMA Estate. Singapore-based MNEX will set up a P180-million ($3 million) plant in Science Park of the Philippines’ (SPPI) Light Industry and Science Park 3 (LISP 3), which will manufacture molded parts for various industries.

In Cavite, ASE Co. Ltd. plans to expand by 26,000 sq.m. in Gateway Business Park. The company manufactures electronic and semiconductor products. Several firms are also expanding within the Cavite Economic Zone, including Acuvex Corp., which specializes in jigs and fixtures; CIXIN Precision, which will produce heatsink products, CNC components, electroplating, and surface treatments; and Philippine Newly Ever Rise, which will manufacture and assemble transformers, power supplies, batteries, robotics products, solar systems, and electric vehicle parts.

The Calaba hub continues to attract global manufacturing players due to its highly skilled workforce, improving infrastructure, and the availability of master-planned communities developed by national property firms that offer expansive industrial spaces.

In our view, further improvements in business registration systems and the consistent implementation of business policies could further enhance the region’s attractiveness to high-value manufacturers.

Julius Guevara is senior director and head of Capital Markets and Investment Services, while Joey Roi Bondoc is director and head of Research at Colliers Philippines.