There were 24 new investments approved by the agency in December, with ventures expected to generate $286.9 million worth of exports and 4,515 new job
There are clear indications the Marcos administration is making headway in attracting foreign investments as a key component of efforts to boost the country’s over-all economic growth and development.
The Philippine Economic Zone Authority, an attached agency of the Department of Trade and Industry, is tasked to promote investments, extend assistance, register, grant incentives to and facilitate the business operations of investors in export-oriented manufacturing and service facilities inside selected areas throughout the country proclaimed by the President as PEZA Special Economic Zones.
The creation of PEZA, the development of Special Economic
Zones throughout the country, and the very competitive incentives available to investments inside PEZA Special Economic Zones are embodied in the Special Economic Zone Act passed by Congress in 1995.
The agency is actually part of the government’s over-all effort to achieve sound and balanced development by promoting viable and sustainable economic zones and by bringing in targeted investments to generate jobs, exports and economic opportunities, especially in the countryside.
PEZA enhances ecozone linkages with local governments, communities, businesses and other stakeholders to spur countryside development and create integrated/green townships and industry clusters. and continues to provide a globally competitive and sustainable business environment through effective management of economic zones, efficient administration of incentives and delivery of services.
Under the Marcos administration, the Philippines is accelerating efforts to attract more investors from the United States and Japan. This is part of the government’s commitment to sustain the momentum of economic growth.
According to PEZA, part of their current thrust is “to aggressively reach out to (electronics manufacturing service firms) and (semiconductor manufacturing service companies) not just in the US, but even in Japan.”
In fact, the agency sent a delegation to Las Vegas, Nevada, to participate in the Consumer Electronics Show 2024, which ran for four days in January this year, to attract more tech investors.
The CES is the biggest electronic event in the US participated in by many emerging tech providers and innovators.
By taking part in this international forum, PEZA wanted to attract more foreign investors to the Philippines.
The US is the country’s third largest source of investments, accounting for 14.82 percent of total investments in economic hubs.
While the country’s electronics exports are projected to post
flat growth this year, PEZA is already preparing for anticipated expansion in 2025.
For 2024, the PEZA is targeting P200 billion to P250 billion worth of investment approvals to sustain the growth momentum it recorded in 2023.
Last year, the investment promotion agency tallied a total P175.7 billion worth of investments, marking a nearly 25-percent increase from the P140.7 billion recorded the prior year.
PEZA-approved investments stood at P69.30 billion in 2021, P95.03 billion in 2020, P117.54 billion in 2019, and P140.2 billion in 2018.
The agency is also working to increase the number of economic zones in the country, currently at 422, to further ramp up economic growth.
With the establishment of more economic zones nationwide—the agency projects at least 30 annually—then more foreign locators can take advantage of incentives provided by the government.
Investments approved by the agency reached P160.44 billion in 2023, breaching the investment promotion agency’s full-year target as it grew by 14 percent from 2022.
In December of last year alone, PEZA approved P19.55 billion worth of new and expansion projects, adding to the P140.884 billion worth of new investments recorded during the previous 11 months.
There were 24 new investments approved by the agency in December, with ventures expected to generate $286.9 million worth of exports and 4,515 new jobs.
Of those projects, 14 are in the export industry, three in the information technology sector, four in facilities, and another three are developer projects.
PEZA is actively seeking investments in such industries as electronics, metal fabrication, electric vehicles, plastic polymers, and data centers.
All this, and President Marcos Jr.’s visits to foreign capitals to attract more investments, augur well for sustained economic growth that will push forward the Philippine Development Plan to attain upper-middle income country status and reduce poverty incidence to single-digit level by 2028.
(Email: ernhil@yahoo.com)
