PEZA ramps up economic growth, ecozone investments 

We are gearing up for the upturn in the economy as we intensify our investment promotion efforts going into second semester of the year to facilitate the new and expansion projects of our valued ecozone investors.

This comes after our country’s strong FDI net inflows in the first quarter of 2024, which increased by 42.1% compared to the same period in 2023. DTI Secretary and PEZA Chairman Alfredo Pascual attributes this significant increase in equity capital from key partners like Japan, Singapore, and the United States to the stronger bilateral relations and strengthened outbound investment missions in these countries, among others. “These engagements have been pivotal in bolstering investor confidence and forging stronger economic partnerships,” the top trade official added.

Moreover, “the Philippine economic growth is expected to accelerate beginning in the second quarter of the year, driven by ramped up government spending, easing inflation, and high employment level,” according to First Metro Investment Corporation (FMIC) and the University of Asia and the Pacific (UA&P).

In PEZA, we see the same upward trajectory as we achieve a higher P250 billion investment target this year, and so with our increased ecozone jobs and exports. Of the annual average 70% share of FDI in the total PEZA investments, we expect the Japanese, American, Singaporean, British and South Korean to be among our leading foreign investors this year.

[In these photos are our recent engagements with business titans, big-ticket investors, a Japanese credit rating agency, partner industry associations, visiting foreign business delegations, ecozone developers and facilities providers, and expanding locator companies.]

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The Philippines is poised for continued success this year with a projected higher GDP, competing favorably with neighboring countries despite geopolitical and economic headwinds. I am confident that as we set a higher level of ecozone management and provide new avenues of growth for current and prospective investors with various types of ecozones, even a mega ecozone, we will see more businesses landing on our shores!

PEZA is more than encouraged by the following positive developments under the Marcos Administration and other factors that bode well for the economy: cumulative net inflows for the first quarter of the year now stand at an impressive $3 billion, which is 42 percent higher than the previous year; the country’s maintaining its high investment-grade status across all major regional and international debt rating agencies; and, the Philippine manufacturing sector’s continued positive performance in May 2024, recording an index higher than the neutral score of 50, at 51.9.

In my keynote address at the recent AmCham “Future of Logistics 2024” forum, I also highlighted that there has been a significant improvement in the Philippines’ global ranking in the 2023 Logistics Performance Index (LPI). Among ASEAN 6, from an LPI score of 2.86 in 2018 (PH was 6th among ASEAN countries), the Philippines now ranks 4th following Malaysia, Thailand and Singapore. Surprisingly, we did better in this category than Vietnam and Indonesia.

In terms of digital and sustainable trade facilitation, the Philippines ranked second to Singapore—ahead of its ASEAN counterparts based on the 2023 UN Global survey.

We need to capitalize on these pull factors for the Philippines to be able to attract more investments and sustain the country’s growth momentum. Through our ecozone program offering the optimal locations and business ecosystems for investors, along with our renowned one-stop-shop services and a no red tape but only red-carpet treatment policy—we can help further position the Philippines as a premier investment destination in the region.