PEZA expects more investments in second half of 2024

The Philippine Economic Zone Authority (PEZA) is setting its sights on increased investments and exports in the latter half of 2024, supported by amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law and strong advocacy from ecozone investors and industry partners.

PEZA Director General Tereso Panga expressed gratitude towards ecozone investors, industry partners, and foreign and local chambers for their support in pushing for the restoration of PEZA’s autonomy and enhancing the competitiveness of the ecozone program. This collective effort aims to drive amendments to the CREATE law, which will be encapsulated in the CREATE MORE bill.

The CREATE MORE bill is anticipated to provide a more effective policy framework for administering tax incentives, empowering agencies like PEZA and the Board of Investments (BOI) to attract more investments. This, in turn, is expected to generate much-needed jobs, boost exports, and spur countryside development.

NEDA emphasized the need for the Philippines to diversify its growth drivers, enhance investments, and improve export performance to sustain its GDP growth momentum. The strategic approach is geared towards building a resilient economy capable of withstanding global uncertainties.

PEZA’s role in this strategy is pivotal, as it encompasses various sectors that drive economic growth. The agency's IT parks, Knowledge, Innovation, Science, and Technology (KIST) centers, and tourism complexes contribute to the services sector. Manufacturing and mineral processing zones bolster the industry sector, while agro-industrial and aqua-marine zones support agriculture. PEZA currently accounts for 16% of the country’s GDP and more than 50% of its total annual exports of goods and commodities.

To further diversify investment sources, PEZA is planning its first investment mission to India. Partnering with HSBC, PEZA aims to attract foreign direct investment from leading Indian companies in pharmaceutical manufacturing, pharma zone development, R&D, and IT frontier technologies like AI, blockchain, and fintech. This initiative aligns with the government's global supply chain de-risking strategy.

Additionally, PEZA is promoting new types of ecozones, such as Pharmaceutical and Medical Device Manufacturing Ecozones, E-tech hubs, and KIST Parks, to foster innovation and niche technologies. These efforts complement recent initiatives to engage local business leaders in the ecozone program.

Panga expressed confidence that a whole-of-country approach, led by President Ferdinand R. Marcos Jr., will successfully promote the Philippines as a stable and sustainable global business destination. The collective efforts are expected to propel the country towards achieving upper-middle-income status by 2025.

“By expanding our efforts to generate long-term investments, create more jobs, and uplift the lives of Filipinos nationwide, we are ecozoning the Philippines towards a brighter future,” Panga concluded.