By Beatriz Marie D. Cruz, Senior Reporter
THE PHILIPPINE Economic Zone Authority (PEZA) has approved P12.5 billion in investments in October, bringing the 10-month total to P310 billion and surpassing its full-year target.
In a statement on Thursday, PEZA-approved investments reached P12.5 billion in October, down by 40% from the P20.66-billion approved in the same month last year.
The October pledges are equivalent to 18 new and expansion projects, also lower than the 28 projects approved a year ago.
The projects are expected to generate $178.203 million in exports and create 5,484 direct jobs, it noted.
Fifteen of the approved projects are located in Luzon, including six in Metro Manila, eight in Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon), and one in Central Luzon.
In the Visayas, there are two approved projects in Cebu while one is in Iloilo.
By industry, six projects are involved in information technology-business process management (IT-BPM), while four are ecozone development projects.
Also approved were three manufacturing projects, three logistics enterprises, and two facilities projects.
The October investments came from Hong Kong, China, the United States, Singapore, and Japan, PEZA said.
These projects are also expected to drive demand for local services, logistics, infrastructure, and suppliers, it added.
In the first 10 months of the year, PEZA-registered approvals surged by 76.56% to P309.63 billion from the P175.37 billion approved a year ago.
The 10-month tally already exceeded the full-year goal of P300 billion and is just below the all-time record of P312-billion investments seen in 2012.
PEZA Director-General Tereso O. Panga said the high approvals reflect investors’ sustained confidence in the Philippines.
“The agency is confident that it will set a new investment record this yearend as it receives more inquiries and interest from potential investors,” PEZA said.
The end-October investments involve 240 new and expansion projects and are estimated to generate $9.12 billion in export value. These projects are also expected to create 38,815 direct jobs.
By quarter, P45.53 billion worth of investments were approved in the first quarter, P95.16 billion in the second quarter, and P156.45 billion in the third quarter.
“These results show that the Philippines can capture a larger share of global investment as companies look for competitive production and export locations,” Mr. Panga said.
By region, the majority or 200 of the projects are located in Luzon, 28 in Visayas, and 12 in Mindanao.
About 92 of the approved projects are in manufacturing, 40 are in IT-BPM, 38 projects in ecozone development, 25 in the facilities sector, and 21 in logistics.
Other industries with approved projects include domestic market enterprises (17), tourism (four), and utilities (three).
The top investors during the 10-month period include those from Taiwan, the Netherlands, South Korea, Singapore, and Indonesia, PEZA said.
“PEZA’s strong investment approvals is partly driven by the diversification of global supply chains, growing interest from Asian investors, and improved investment incentives under the CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy) Act,” Diana R. Rueda, an economics professor at the University of Asia & the Pacific, said in a Viber message.
Moving forward, the Luzon Economic Corridor (LEC) is expected to help drive more investments across PEZA economic zones, she said.
“This could position the Philippines more competitively within regional production networks, especially in electronics and advanced manufacturing,” Ms. Rueda added.
The LEC is a multi-country partnership that seeks to attract investments meant to connect economic hubs like Subic Bay, Clark, Manila, and Batangas.