PEZA investment pledges up 9% in 2017

MANILA, Philippines — Investment pledges approved by the Philippine Economic Zone Authority (PEZA) rose by nearly a tenth in 2017 amid the delays encountered in the proclamation of new economic zones from the Office of the President throughout the year.

Data from PEZA showed investment approvals reached P237.7 billion this year, up 8.89 percent higher from last year’s P218.18 billion. 

The investment amount came from a total of 554 projects, slightly fewer than the 572 projects registered with the agency in 2016.

Likewise, latest PEZA data as of end-October showed that ecozone exports grew 8.91 percent to $42.39 billion from $38.92 billion last year, while direct employment increased by 5.79 percent to 1.32 million. 

“Many are now expanding. The growth can be attributed to the massive promotion and marketing efforts where we briefed local government units (LGU) and business chambers in every province and cities to put up ecozones because I found out 99 percent of LGUs and chambers don’t know about PEZA and our investors incentives,” PEZA director general Charito Plaza told The STAR. 

“Confidence and interest of investors were also revived with the TRAIN Law where we succeeded in retaining of all PEZA incentives we give to our industry locators,” Plaza added.

The 8.89 percent growth in PEZA’s 2017 investment pledges, however, paled in  comparison to its ambitious triple-digit growth target for the year, much of which was due to the delays encountered in the approval of new economic zones. 

Plaza earlier estimated that some P500 billion worth of investments in the country have been put at risk with the persisting delays in the proclamation of new economic zones. 

She said strong appetite among investors to develop new economic zones across the country continues, with the agency receiving applications to build mega ecozones of 2,000 to 4,000 hectares. 

For 2018, Plaza is bullish investments will continue to pour into the country given the sustained economic improvement, as well as reforms being implemented by the administration.

“We are expecting to double our investment pledges next year as we complete identifying new economic zones in every province and city, as well as public lands in partnership with various government agencies,” she said.