MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) is holding on to its investment target for the year despite the 44 percent decline in investment pledges registered with the agency in the first half.
“We remain hopeful that we will achieve our P200 billion to P250 billion in annual investment target for this year as we facilitate the big-ticket projects of our prospective investors, both local and foreign,” PEZA director general Tereso Panga said.
In the first semester, investments approved by the PEZA reached P45.48 billion, 44 percent lower than the P80.59 billion in the same period last year.
Panga said the PEZA’s optimism in achieving the investment approval goal this year is based on the projections of many economists and credit rating institutions that the economy will fare better in the second half.
He said the government is aiming for a gross domestic product growth of six to seven percent this year.
“In addition, we anticipate more trade and investments coming in, given the recent trilateral agreement among the United States, Japan and the Philippines and prospects from the US CHIPS and Science Act that count the country as a primary beneficiary of these commitments,” Panga said.
He said the Philippines’ accession to the Regional Comprehensive Economic Partnership (RCEP) agreement and the forthcoming free trade agreement (FTA) with South Korea would expand the country’s sources of trade and investments.
RCEP, which was signed by the Association of Southeast Asian Nations including the Philippines as well as ASEAN trade partners China, Japan, South Korea, Australia and New Zealand, covers trade in goods, services, investments, economic and technical cooperation as well as dispute settlement, among others.
The FTA between the Philippines and South Korea is expected to be ratified this year.
The PEZA is also pinning its hopes on the passage of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy bill. CREATE MORE seeks to amend the CREATE Act, which introduced changes to the incentive system.
“The early passage of CREATE MORE, despite the uncertainties arising from the upcoming US presidential elections, should stimulate particularly big-ticket investors and expanding locators to register their projects with the PEZA in preparation for the upturn in the economy with the expected recovery of the global electronics industry by next year,” Panga said.
Last year, investments approved by the PEZA reached P175.7 billion.