THE PHILIPPINE Economic Zone Authority (PEZA) approved P22.78 billion in investment pledges in February, an increase of 130.5% from P9.89 billion worth of pledges approved a year ago.
At a meeting on Feb. 20, the PEZA Board approved 26 new and expansion projects that are expected to generate $241.79 million in exports and create 7,793 jobs.
Nine of the projects are in export manufacturing, while eight are information technology and business process management projects.
Four of the projects are economic zone (ecozone) developments, while three are domestic market projects and two are involved in developing facilities.
The projects are in Metro Manila, Calabarzon, Central Luzon, Central Visayas, Western Visayas, Ilocos Region and Davao Region.
The recent approvals include a P10.45-billion investment to develop an ecozone where South Korean companies can establish their operations.
“With the Philippines-South Korea free trade agreement now in effect, PEZA is collaborating with the Bases Conversion and Development Authority for the creation of this multifaceted ecozone,” PEZA said.
“[It] will accommodate multiple sectors, including manufacturing, agro-industrial, tourism and information technology, further enhancing economic opportunities and sectoral development,” it added.
In the first two months, PEZA approved 39 new and expansion projects worth P52.93 billion. The amount is more than four times the P12.1 billion worth of investment pledges approved a year earlier.
“PEZA’s rising investments reflect its dedication to supporting various sectors and propelling the country’s economic progress,” said PEZA Director-General Tereso O. Panga.
“By attracting projects from priority industries such as emerging technologies in the EMS-SMS (electronics manufacturing services-semiconductor manufacturing services) sector and fostering strategic collaboration with the pharmaceutical industry, among others, PEZA continues to draw investments that stimulate regional economic growth and advance the nation’s industrial landscape,” he added.
PEZA said it is on track to hit its target to approve about P235 billion in investment pledges this year, which is 9-10% higher than the P214.18-billion pledges approved in 2024.
PEZA said investments from domestic market enterprises (DME) have been increasing, accounting for P37.97 billion or 71% of the investment pledges approved in the January-to-February period.
Since 2024, the agency has approved 15 DME projects worth over P130 billion, three of which are expected to enjoy a longer set of incentives after investing over P15 billion.
Meanwhile, Trade Secretary and PEZA Board Chairman Ma. Cristina A. Roque said the higher investment approvals could also be attributed to the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
“The CREATE MORE Act is a game changer in the entry of foreign direct investments into the country, which encourages more international investors to come given the longer set incentives being offered,” she said.
President Ferdinand R. Marcos, Jr. in November signed the CREATE MORE Act, which seeks to make the country more competitive and attractive to investors.
PEZA said it anticipates the entry of more investments after the CREATE MORE Act’s implementing rules and regulations (IRR) were signed last week.
“The IRR supports PEZA’s core mandate to drive investment growth, create jobs and promote sustainable development, especially in the countryside. We now provide even more benefits to investors who wish to locate in the Philippines,” Mr. Panga said.
The IRR provides clearer guidelines on the transitory rules for pre-CREATE registered business enterprises (RBE) to continue receiving their previously granted tax incentives. The RBEs may also avail themselves of additional incentives or measures under CREATE MORE. — Justine Irish D. Tabile
