PEZA-approved investments up 25 percent

MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) recorded a 24.8 percent jump in approved investments this year, surpassing its conservative 10 percent target.

In a Viber message to The Star, PEZA director-general Tereso Panga said PEZA-approved investments reached P175.709 billion this year.  This is higher than the P140.7 billion registered in 2022.

The PEZA earlier said that the conservative end of its investment approvals target for this year was P154.77 billion, up 10 percent from the previous year.

“We are very pleased with our performance this year in terms of increase in our investment approvals, as well as  diversification of our FDI (foreign direct investment) sources. Despite the headwinds and economic challenges, we were able to surpass our conservative 10 percent growth target this year with our investment approvals reaching P175.7 billion, which is 24.8 percent higher than our 2022 performance at P140 billion,” Panga said.

“Apart from our traditional top FDI sources in Japan, US, Singapore and the Netherlands, we have also seen a significant increase in investments from South Korea, Taiwan, China, Australia and EU owing to our FTA and bilateral investment agreements,” he added, referring to the Philippines-South Korea FTA, which was signed earlier this year.

Panga said the country’s top ecozone exports are still dominated by electronics, IT, metals and automotive sectors.

“With the Philippines having the highest GDP growth forecast among ASEAN, and the aggressive promotion of the Philippines by the President, we hope to sustain our upward trajectory of investments to reach P200 billion by next year,” he said.

“We will also explore new sources of FDI and exports as we broaden our FTAs and embark on more aggressive investment missions in 2024,” he said.

In an earlier Facebook post, Panga identfied Taiwan as priority market for its outbound missions next year aimed at boosting FDIs from the country.

“As an FDI attraction strategy, the Philippines can leverage on the C+1 (China Plus One) policy to entice the more than 4,000 Taiwanese companies and other MNCs with manufacturing facilities in China that are looking for redundant sites in ASEAN and as part of their de-risking global value chains,” Panga said in a  Facebook post.

Panga explained that  the C+1 policy refers to a business strategy adopted by companies, especially multinational corporations, to diversify their production and supply chain activities by adding an alternative manufacturing or sourcing location to China

“As such, banking on the existing Bilateral Investment Agreement and New Southbound Trade Treaty between the Philippines and Taiwan, PEZA has identified Taiwan as a priority market for outbound investment missions next year,” Panga said.

The PEZA official said the agency would further strengthen its collaboration with the Department of Trade and Industry- Philippine Trade and Investment Center (PTIC), Manila Economic and Cultural Office (MECO),Taipei Economic and Cultural Office (TECO) and the Taiwanese Chamber of Commerce for the conduct of investment and trade promotions to be able to attract more FDI from Taiwan and increase its share in the ecozone investments and exports of goods and services. 

“Given Taiwan’s status as the 7th largest economy in Asia and 20th largest in the world by purchasing power parity, certainly the Philippines will benefit from its increased economic cooperation with Taiwan,” Panga said.

Moreover, Panga pointed out that Taiwan is driven by a competitive manufacturing sector in the fields of electronics, machinery, petrochemicals, energy, and ICT products.

“Guided by the CREATE and SIPP, PEZA aims to target strategic and high-tech industries from Taiwan that will provide for ecozone product sophistication, export diversification, labor-intensive and high-skilled jobs, knowledge transfer, enhanced local supply chain, and creation of industry clusters,” the PEZA head said.

Earlier this month, the PEZA said it approved P19.6 billion worth of projects during its Dec. 7 board meeting.

Of the 24 projects, 14 are ecozone export enterprise projects, four are facilities enterprise projects, and three are IT projects.

Three developer operator projects particularly for IT centers in Capas and San Miguel in Tarlac as well as in Bataraza in Palawan have also been approved.

The projects have a projected export value of $286.9 million and will create 4,515 jobs.