PEZA reports significant surge in investment approvals in third quarter

Pasay City — The Philippine Economic Zone Authority (PEZA) has announced a remarkable surge in investment approvals for the third quarter of 2024, driven by proactive initiatives aimed at establishing the Philippines as a premier investment hub in the region. According to PEZA Director General Tereso O. Panga, the total investment approvals for this quarter nearly doubled the amount recorded from January to August.

From January to September 2024, PEZA greenlit 179 new and expansion projects, projected to generate approximately USD 2.513 billion in exports and create 35,871 direct jobs for Filipinos. These approvals reflect a robust performance compared to the same period last year, with total investments reaching PhP 115.887 billion. This strong momentum positions PEZA to potentially meet its investment target of PhP 200 billion for the year.

Year-on-year comparisons highlight significant improvements across various metrics, including a 24.31% increase in the number of new and expansion projects, a 4.21% rise in total investments, and a 5.47% growth in exports. Notably, employment opportunities surged by an impressive 55.82% for 2024, showcasing the effectiveness of PEZA’s investment promotion efforts.

During the board meeting held on September 23, 2024, PEZA approved 16 new and expansion projects that are expected to contribute around PhP 54.191 billion in investments, generate USD 541.04 million in exports, and provide 4,044 new jobs. This marks one of the largest investment approvals of the year, highlighting a staggering 285% increase in investments compared to September 2023.

The approved projects span various industries, including eight focused on export manufacturing, five in the IT-BPM sector, one in facilities development, one in ecozone logistics services, and another in ecozone development. The CALABARZON region continues to lead with eleven projects in Laguna and Batangas, while Regions VII, NCR, and Central Luzon also contribute significantly.

Among the key approvals during the meeting was a PhP 50 billion project, marking PEZA’s first major investment under the Marcos Jr. administration, which may qualify for an incentive package under the CREATE Law. Additionally, a new ecozone development project worth PhP 988.287 million was approved, aimed at enhancing operations and attracting more businesses to Lipa, Batangas.

The collaborative efforts of PEZA and the Department of Trade and Industry (DTI) continue to attract foreign direct investments (FDIs) through successful investment missions in 2024. These missions engage global institutions and showcase the Philippines' potential as an investment destination, further fostering economic growth and creating more job opportunities.

With the ratification of the Philippine-South Korea Free Trade Agreement and the upcoming passage of the CREATE MORE bill, PEZA is optimistic about future FDI inflows. The CREATE MORE bill will enhance the already competitive fiscal incentive regime, solidifying the Philippines’ status as an attractive destination for investors.