Cebu eyes small-scale manufacturing, AI projects to turn interest into jobs

CEBU Philippines —  Cebu is pursuing smaller, staged manufacturing investments and technology ventures as it seeks to convert growing investor interest into new businesses and jobs, with a proposed electric motorcycle battery assembly project and an artificial intelligence (AI) research center among the initiatives under development.

Brian To, a consultant to the Cebu provincial government and global strategist, said several projects are undergoing due diligence and partner negotiations, with memorandums of understanding, joint-venture arrangements and other agreements expected before the end of the year.

These are among the outcomes of Cebu Economic Forum 4.0, organized by the Economic Enterprise Council of the Province of Cebu, which drew 515 participants from 13 countries on Sept. 8–9, 2026.

In an interview with To, he said the strategy favors micro- and light-manufacturing operations that can be established incrementally, requiring less capital upfront than large industrial facilities and allowing investors to expand as commercial prospects become clearer.

Rather than commit immediately to projects employing thousands of workers, investors could develop smaller operations and add capacity over time, reducing the financial risks associated with large-scale expansion, he said.

One example is a proposed electric motorcycle venture that would initially assemble batteries before potentially expanding into other components and, eventually, complete vehicles.

The project, associated with entrepreneur Sheldon Lee, co-founder of Singapore-based electric mobility company Kilats, is being developed through discussions on production sites, permits, logistics, manufacturing requirements and potential sources of raw materials. The company has not publicly disclosed its proposed investment, location, production capacity or employment targets.

The phased approach reflects Cebu’s effort to build manufacturing capabilities in an industry where the province has yet to establish a significant automotive production base.

Local suppliers could benefit if the project sources components domestically, although the extent of local procurement remains unclear. The venture’s eventual economic impact will depend on whether the initial assembly operation proceeds to commercial production and attracts a broader network of suppliers.

To said the longer-term ambition is to manufacture an entire electric motorcycle, but emphasized that the company would need to demonstrate its capabilities through successive stages rather than commit to a large undertaking immediately.

AI research center targets security

Separately, three companies — one based in Cebu, one from China and another from South Korea — are being brought together to establish an artificial intelligence research and development center focused on AI security, he said.

The proposed center would operate from office space rather than a data center, with the companies expected to combine their technological capabilities and develop a consolidated business plan.

Employment projections and investment requirements have yet to be determined, as the parties are still working through the structure of the proposed venture.

The project could create opportunities for software developers, cybersecurity specialists and other technology professionals, building on Cebu’s existing pool of skilled workers and its established information technology and business-process outsourcing sector.

The focus on AI security also places the proposed venture in a specialized segment of the technology industry, where companies are increasingly concerned about the safety, reliability and governance of AI systems used for research and decision support.

However, the center’s commercial activities, funding arrangements, operating timeline and prospective customers have not been disclosed.

Turning inquiries into investments

The projects are part of efforts to strengthen investor support in Cebu, where officials from Economic Enterprise Council of the Province of Cebu, are fielding inquiries from companies seeking potential locations, partners and financing.

According to To the approach now includes guiding investors through regulatory procedures and helping align projects with suitable partners and funding sources. Startup sessions are also being planned to support new ventures as they move from initial discussions toward development.

The process remains at an early stage for several investments, making the conversion of proposals into funded and operational businesses a key test of the province’s strategy.

To expressed optimism that agreements could be signed before the year-end holidays and that the resulting projects would begin contributing to economic activity and employment next year.

But agreements alone will not guarantee new jobs or production. Investors must still finalize business plans, secure financing, identify sites and complete the necessary regulatory requirements before projects can proceed.

For Cebu, the immediate challenge is to turn investor interest into operating businesses while ensuring that new manufacturing and technology ventures create opportunities for local workers and suppliers.