PEZA reports investment approvals surge in 10 months

The Philippine Economic Zone Authority (PEZA) has emerged with promising figures, having approved investments amounting to P131.76 billion in the initial week of October, signaling robust progress towards fulfilling its P154-billion target for the year.

In an endeavor to fortify the investment landscape, PEZA Director-General Tereso O. Panga has articulated the agency's steadfast commitment to advocating for revisions to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. This strategic move is aimed at stimulating greater interest from both foreign and local investors, particularly within the burgeoning information technology (IT) sector.

The recent PEZA Board of Directors' decision to greenlight 25 new projects valued at a cumulative P20.55 billion has bolstered the agency's investment portfolio. With this development, the total number of PEZA Board-approved projects has escalated to 169, representing a remarkable 14% increase from the previous year's 148 projects, valued at P39.63 billion.

Mr. Tereso O. Panga emphasized the agency's unwavering commitment to fostering the Philippines as an enticing investment destination, thereby fostering a conducive environment for heightened local and foreign investments in the country.

Among the recently approved projects, 13 pertain to the export sector, six are associated with the information technology domain, and three are linked to logistics. Moreover, two projects entail the construction of facilities, while one remains in the development phase. The combined impact of these new projects is expected to generate 5,500 job opportunities and yield an estimated export value of $643.32 million.

Mr. Panga underscored the approval of two substantial projects, including one by Japan's Murata Manufacturing Co., Ltd. and another by American company Analog Devices, Inc., reflecting PEZA's commitment to nurturing large-scale investments, as projects exceeding P1 billion are classified as big-ticket ventures.

Expressing optimism, Mr. Panga asserted that PEZA is poised to surpass its P154-billion investment approval target for the current year, with a resolute aim of achieving new investments worth as much as P300 billion. Notably, the anticipation of Texas Instruments, Inc.'s billion-dollar investment, coupled with the expectation of additional substantial projects, underscores PEZA's robust trajectory.

Highlighting the robust investment figures, Mr. Panga emphasized the investors' growing confidence in the Philippine economy and its expanding domestic market, mirroring the nation's promising economic growth trajectory targeted at 6-7% gross domestic product (GDP) growth for the year.

Moreover, the PEZA anticipates the proclamation of four additional economic zones, with an aggregate investment value of P773.96 million, before the conclusion of the year. Currently, PEZA hosts 422 economic zones and accommodates 4,352 locator companies and projects, affirming its pivotal role in fostering a conducive environment for business growth and expansion.

In tandem with the agency's pursuit of policy enhancements, Mr. Panga underscored ongoing collaborations with various business groups, particularly with the IT & Business Process Association of the Philippines (IBPAP), to advocate for proposed amendments to the CREATE law. Notably, PEZA is striving to secure work-from-home (WFH) eligibility for its locators, underscoring the critical role of such flexibility in fostering business resilience.

In line with proposed amendments to the CREATE law, PEZA is advocating for an extended sunset period, separate Customs territory status, removal of the investment threshold for IPAs, and an extended fiscal incentives period. Mr. Panga highlighted the necessity of addressing the potential challenges posed by the current policy framework, particularly in relation to the short sunset period and investment thresholds that could potentially hinder the sustained growth of the industry.

As PEZA continues its endeavors to foster an investment-friendly climate, the agency remains committed to driving sustainable growth and creating an environment conducive to business development and expansion.