THE PHILIPPINE Economic Zone Authority (PEZA) approved P54.19 billion in investment pledges in September, almost four times as much as the P14.04 billion okayed in the same month last year.
The investment promotion agency’s (IPA) board approved 16 new and expansion projects at a meeting on Sept. 23, it said in a statement on Sunday.
The pledges approved last week are expected to generate $541.04 million in exports and 4,044 new jobs, PEZA said.
Eight of these projects are in export manufacturing, five are in the information technology and business process management sector, one is in facilities development, and one each in economic zone (ecozone) logistics services and development.
In terms of investment destination, 11 of the projects will be put up in Calabarzon, two in Region VII, two in the National Capital Region, and one will be in Central Luzon.
One of the pledges approved this month is for a P50-billion project that the PEZA said may be eligible for an incentive package for highly desirable projects under the CREATE or Corporate Recovery and Tax Incentives for Enterprises law.
The September approvals also include a P988.29-million new ecozone development by a Filipino developer in Lima, Batangas.
“Such big-ticket investment plays a pivotal role in driving investment opportunities across the country, aligning with President Ferdinand R. Marcos, Jr.’s vision of elevating the Philippines to upper middle-income status,” PEZA said.
The green-lit commitments for this month brought PEZA-approved investment pledges for the first nine months to 179 projects, which have a combined cost of P115.89 billion. This represents a 4.21% increase from the investments approved in the same period last year.
The year-to-date approvals are expected to generate $2.51 billion in exports and 35,871 jobs.
“These approvals… strengthen the outlook for reaching the P200-billion investment target of PEZA for the year,” it said.
It added that it recorded an “exceptional surge” in investment approvals in the third quarter.
“With significant increases across various sectors, the Philippines is poised for an even more robust performance in the final quarter of 2024,” it added.
SUPPORT FOR MSMEsPEZA said in a separate statement that it is working on programs that will support micro, small, and medium (MSME) enterprises.
To date, there are 722 Filipino PEZA-registered business enterprises (RBEs) that are micro-, small-, and medium-sized, representing 20% of the businesses registered with the IPA.
A PEZA survey showed that 89% of its registered MSMEs source their materials locally, such as packaging materials, raw materials, and machinery and equipment.
The survey, which was conducted from Aug. 7 to Sept. 9 and had 579 RBEs across different ecozones as respondents, also showed that MSMEs also engage in subcontracting non-PEZA registered companies for die-cutting services, sewing, and manpower and security services.
The IPA has been conducting reverse trade fairs to connect MSMEs with local suppliers, it said, as well as putting up a startup accelerator hub inside ecozones, producing an online PEZA digital marketplace, and promoting investments in labor-intensive manufacturing sectors, among others.
“PEZA recognizes that the steady growth of MSMEs will strengthen the Philippines’ competitive advantage as the source of high-quality materials that cater to both domestic and international markets,” it added. — Justine Irish D. Tabile