MANILA — The Philippine Economic Zone Authority (PEZA) has reported a significant increase in investment approvals during the third quarter of 2024, nearly doubling the total from the beginning of the year through August. This surge reflects a strategic push by the agency to position the Philippines as a premier investment hub in the region. From January to September 2024, PEZA approved 179 new and expansion projects, which are projected to generate $2.513 billion in exports and create 35,871 direct jobs.
According to Philippines News Agency, this influx in approvals has brought the total investment for the year to PHP115.887 billion, putting PEZA on track to meet or possibly exceed its PHP200 billion investment target for 2024. The year has seen a 24.31 percent increase in the number of projects and a 55.82 percent increase in employment opportunities compared to the same period last year. PEZA Director General Tereso Panga highlighted these figures at a recent board meeting, noting the agency’s robust performance and ongoing commitment to enhancing the Philippines’ economic landscape through foreign direct investments, increased exports, and the growth of local enterprises.
On September 23, the PEZA board approved 16 new projects expected to bring about PHP54.191 billion in investments, generating US$541.04 million in exports and creating 4,044 new jobs. This set of approvals represents the largest single-month investment influx for the year, marking a 285 percent increase in investments over September 2023, and featuring a notable 20.98 percent boost in exports from the same period last year.
The diverse range of industries benefiting from these approvals includes export manufacturing, information technology-business process management, facilities development, ecozone logistics services, and ecozone development. Geographically, Calabarzon is leading with 11 projects, followed by Central Visayas, the National Capital Region, and Central Luzon. Notably, this month’s approvals included a PHP50-billion investment, the first major project under the administration of President Ferdinand Marcos Jr., which may receive an incentive package under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.
In addition to these large-scale projects, a significant ecozone development led by a fully Filipino-owned developer was also greenlit, with a total investment of PHP988.287 million aimed at enhancing the Lima Technology Center in Batangas. This project is designed to attract more businesses and bolster local economic activity, further cementing Batangas’ role as a key industrial and commercial hub.
The Department of Trade and Industry (DTI) and PEZA are continuing their efforts to attract foreign direct investments through a series of successful investment missions, showcasing the Philippines as a prime investment destination. These efforts are bolstered by the recent ratification of the Philippine-South Korea free trade agreement and the impending passage of the CREATE MORE (Maximize Opportunities for Reinvigorating the Economy) bill, which aims to enhance the country’s fiscal incentive regime, already recognized as one of the most competitive in the ASEAN region.
PEZA’s optimistic outlook for foreign direct investment inflows and the ongoing efforts to establish the Philippines as a leading investment hub in Asia are reflective of the broader economic strategies under President Marcos Jr.’s administration aimed at achieving upper-middle-income status for the country.