PEZA still optimistic of higher investments

MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) remains optimistic that investments registered with the agency would grow this year, although at a slower pace than the 8.89 percent posted last year, due to uncertainties on the proposed tax reform program to rationalize incentives given to investors.

“It (growth) will not be as big as last year because there are many uncertainties, threats,” PEZA director general Charito Plaza said in an interview.

Investments registered with PEZA reached P237.57 billion last year, higher than the P218.18 billion in 2016.

As of the first semester, investments for projects approved by PEZA amounted to P53.07 billion, down 56 percent from the P120.22 billion in the same period last year.

Plaza earlier attributed the lower approved investments to concerns on the second package of the government’s tax reform which seeks to lower corporate income tax and rationalize incentives enjoyed by investors.

Earlier, PEZA set a 10 percent growth target for investments this year.

Plaza said investors’ fears would be addressed as soon as the government decides on the proposed second package of the tax reform program.

“The fastest we can approve, disapprove or leave it to the next Congress, the better,” she said.

She added PEZA would continue to lobby to enhance incentives for investors to encourage them to set up operations in the country.

While the country’s young workforce is among the reasons foreign firms are opting to locate and do business in the Philippines, she said incentives also count as another important factor.

She said some firms are preparing to move out in case incentives being enjoyed now are removed.

“We are doing our best to calm down investors,” she said.