THE PHILIPPINE Economic Zone Authority (PEZA) is targeting to approve as much as P250 billion worth of investments in 2025, its top official said on Monday.
PEZA Director-General Tereso O. Panga said the agency is targeting a “9 to 10% increase in investments from (our) 2024 performance,” to be driven by the manufacturing and information technology (IT) sector.
“This will translate to more or less P235 (billion) minimum to P250 billion in investments,” Mr. Panga said at a media briefing.
As of November, PEZA has already approved P201.55 billon worth of investments, surpassing its full-year target of P200 billion.
Mr. Panga said the total investment approvals could reach P215 billion by yearend as the PEZA board still has one more meeting. This would exceed the full-year target by 7.5%.
“We’re now covering December and there’s a board meeting (on Dec. 17). There’s a total of P13.45 billion (up for approval) so we expect P215 billion for 2024,” he added.
If realized, investment approvals this year would be 15.5% higher than the P186.098 billion worth of investments approved in 2023.
“That’s the highest by far in the last seven years or in 2018,” Mr. Panga said.
He noted the PEZA’s game plan was to equal the record level of investments during the Aquino administration.
“The highest they got was P311.9 billion in 2012,” he added.
Recent economic reforms are expected to attract more foreign investors to the Philippines, analysts said.
Foundation for Economic Freedom President Calixto V. Chikiamco said in a Viber message that a measure seeking to extend land lease limits for foreign investors to 99 years would entice more foreign investments in PEZA’s economic zones.
The measure, considered a priority by the Marcos administration, aims to liberalize the Philippines’ land lease policies which is currently limited to 75 years for foreigners.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the signing of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act would attract more foreign investments in the Philippines.
“The CREATE MORE, already signed into law on Nov. 11, would help make foreign investors decisive to locate in the country, now with better and greater certainty on foreign investment incentives,” Mr. Ricafort said in a Viber message.
The CREATE MORE Act lowers corporate income tax to 20% from 25% for registered business enterprises (RBE). It also offers more attractive incentives for strategic investments.
Meanwhile, Mr. Panga said growth in PEZA’s economic zones will be driven by locators from the manufacturing and IT industries.
“We are predominantly in manufacturing, that’s 32% of our investments. Then, you have IT, that’s another 12-15%. So, these are the traditional winners for PEZA in the ecozones,” he added.
Mr. Panga said that PEZA is also looking to diversify the investment mix at economic zones.
“We just have to expand our product mix, and especially in electronics… We need to promote assembly testing and packaging, which is really our bread and butter. But we have strong potential in (integrated circuit) design, including electronic manufacturing services,” he added.
He said that PEZA is also looking for locators from the electric vehicle and data center industries. — Adrian H. Halili
