PEZA investment surge to boost Philippine manufacturing, IT-BPM sectors
PASAY CITY, PHILIPPINES — The Philippine Economic Zone Authority (PEZA) unleashed a remarkable wave of investment approvals, greenlighting 95 new and expansion projects worth PHP36.827 billion (US$629 million) from January to May 2024.
This surge in investments is poised to catalyze growth across multiple sectors, particularly the nation’s manufacturing and Information Technology-Business Process Management (IT-BPM) industries.
Robust investment approvals drive economic growth
These 95 projects are expected to generate over US$1 billion in exports and create approximately 19,000 direct jobs, up 62.59% compared to the same period last year.
The first two months of Q2 2024 saw investment approvals surpassing PHP14.95 billion from Q1 2024, recording a 4.63% increase with PHP21.875 billion ($373 million) in approvals.
This consistent rise in employment rates suggests a positive trajectory for consumer spending and economic stability, potentially attracting further foreign direct investments.
May 2024 sees surge in new projects
During the month of May itself, the PEZA Board approved 22 new and expansion projects, bringing in PHP6.872 billion (US$117 million) worth of investments. These projects are expected to generate $100 million in exports and create 4,616 direct jobs.
This marks a 10% increase in new and expansion projects and a 3.04% increase in direct employment compared to May 2023.
The approved projects span various industries, including 19 locator companies and 3 ecozone developers.
Export manufacturing leads with ten projects, followed by nine in IT-BPM, two in domestic markets, and one in facilities development.
Notably, a Japanese enterprise registered a PHP3.9 billion (US$66 million) project in Cebu for manufacturing semiconductor devices and electronic components.
Investment hotspots in the Philippines
CALABARZON remains a prime investment destination, with 12 projects in Laguna, Cavite, and Batangas.
The National Capital Region (NCR) follows with three projects each in Taguig and Quezon City. Other regions benefiting from these investments include Region VII (Cebu), Region VI (Bacolod and Iloilo), Region III (Pampanga), and Region XI (Davao del Norte).
The diversity of these projects highlights the dynamic nature of investments in the Philippines, ranging from high-tech manufacturing plants to cutting-edge IT-BPM facilities.
PEZA Director General Tereso Panga expressed optimism about the future, stating, “Guided by the investment strategies of no less than President Ferdinand E. Marcos Jr., we shall continue to strengthen our investment attraction and facilitation efforts to continue promoting the Philippines as an enviable destination in the region.”
