While DDB Worldwide handles international business, the as-yet-unnamed new agency will focus on winning and managing local accounts.
Gil Chua, the DDB Philippines group president, said the move was driven by the need to customise client service and boost profitability.
"The expectations and needs of clients are changing," he added. "We want to tailor our offer around the individual client."
The group is also looking to acquire or launch digital, activation and retail specialist operations during the coming year.