Manila: Investments approved by the Philippine Economic Zone Authority (PEZA) surged by more than 80 percent from January to May this year. Data released on Tuesday highlighted that during this period, PEZA approved 102 new and expansion projects valued at PHP66.34 billion, a significant increase from PHP36.83 billion in the same period last year.
According to Philippines News Agency, these projects are projected to generate over USD1 billion in export revenues and approximately 29,000 direct Filipino jobs. The approved projects encompass advanced manufacturing, semiconductors, IT-BPM, logistics, and renewable energy sectors.
In terms of industry, food and beverage secured the largest share of approvals at 43.74 percent, followed by ecozone development and IT-BPM. South Korea emerged as the largest source of investments, contributing about 16.12 percent of the total approved investments. PEZA attributed this increase to the recently implemented South Korea-Philippines Free Trade Agreement, which has bolstered investor confidence and strengthened bilateral economic relations.
Other significant sources of investments include the United States, China, Japan, and the Netherlands. PEZA noted that the sustained rise in investor interest is also linked to the recent passage of the CREATE MORE Act, which enhanced fiscal incentives for both export- and domestic-oriented enterprises.
PEZA Director General Tereso Panga commented on the current situation, mentioning some ongoing uncertainties regarding US tariffs under negotiation. Nonetheless, he expressed confidence in promoting the China+1+1 strategy to attract China-based companies to the Philippines. Panga also revealed ongoing discussions with Malaysian and Indonesian companies interested in establishing operations in the country as part of their supply chains.
Panga emphasized the importance of nurturing these interests to enhance inter-trade ties within the ASEAN region, aiming to create a more cohesive economic area. PEZA remains committed to driving development in rural areas and generating employment opportunities by streamlining approval processes, embracing digital transformation, and accelerating ecozone development.
