Ecozone investments surge 294% to P58.9 billion

MANILA, Philippines —  Investment approvals by the Philippine Economic Zone Authority (PEZA) soared by 294 percent in the first quarter from the same period a year ago, amid the government’s continued investment promotion efforts and enhanced incentives system.

In a statement, the PEZA said it approved P58.95 billion worth of investments from January to March, significantly higher than the P14.95 billion approved in the same period last year.

The approved investments in the first quarter cover 66 new and expansion projects, which increased by 32 percent from the 50 projects approved in the same period last year.

The investment approvals from January to March are expected to create 15,815 direct jobs and generate $497.46 million worth of exports.

“PEZA’s continued upward trajectory reflects our strong commitment toward investment promotion and facilitation, coupled with our most generous fiscal incentives under the CREATE MORE and the other advantages placing the Philippines in a sweet spot for economic growth and development,” PEZA director general Tereso Panga said.

For March alone, investments approved by the PEZA surged by 110 percent to P6.01 billion from P2.86 billion in the same month last year.

The investment approvals in March are for 27 new and expansion projects expected to provide direct employment to 4,500 Filipino workers and generate $223.5 million in exports.

These projects cover various industries: 12 information technology-business process management projects, 10 export manufacturing projects, two utilities projects, two ecozone development ventures and one domestic enterprise.

The projects will be located across Metro Manila, as well as Regions III, IV, VII and X.

Of the approved investments in March, two are big ticket projects: a water treatment facility in Batangas and a coconut milk production plant in Misamis Oriental, with a total cost of P2.62 billion.

“We are bullish that we will sustain this upward trajectory coming into the second quarter of the year as we intensify our investment promotion initiatives partnered with the CREATE MORE incentives, the most generous fiscal incentives among ASEAN (Association of Southeast Asian Nations) to date. We are already organizing various investment missions with our investment partners and those led by OSAPIEA (Office of the Special Assistant to the President for Investment and Economic Affairs) -  DTI (Department of Trade and Industry),” Panga said.

He said the PEZA has already received several inquiries and hosted inbound delegations from the United States, Japan, China, Taiwan and Spain that are interested to locate in ecozones.

“We are anticipating the influx of more investors looking into the Philippines for their offshore operations in Asia,” he said.