THE PHILIPPINE Economic Zone Authority (PEZA) approved P8.65 billion worth of projects in June, 73.4% lower than a year ago.
In a statement over the weekend, the investment promotion agency said the PEZA Board approved 25 new and expansion projects at its June 28 meeting, up from 22 projects a year ago.
These projects are expected to contribute $416 million in export value and 5,881 direct jobs.
However, the amount of PEZA-approved investments in June was 73.4% lower than the P32.56 billion worth of investments approved in the same month last year.
Of the 25 projects, 22 are from locator companies and three from economic zone (ecozone) developers, PEZA said.
“These locator companies comprise 11 export manufacturing projects, followed by six projects in information technology and business process management (IT-BPM), three in domestic markets, one in facilities development, and one in logistics services,” it added.
Calabarzon was still the top investment destination in June, accounting for 15 projects. The other investment destinations were the National Capital Region, Region III (Central Luzon), Region V (Bicol Region), Region VII (Central Visayas), and Region XII (Soccsksargen).
LOWER INVESTMENTS
For the first half, PEZA said it approved P45.48 billion worth of investments, plunging by 43.6% from the P80.59 billion worth of investments approved in the same period last year.
The PEZA approved 120 projects which are expected to create over 25,000 jobs and generate $1.61 billion in export value.
“The new projects approved recorded an 18% increase from 102 to 120, with projected direct employment reaching a remarkable 64% uptick from 15,424 to 25,259 this year,” PEZA said.
PEZA Director-General Tereso O. Panga said that the approval of the 120 projects signals confidence in the country’s business environment and economic potential.
“Creating more jobs for Filipinos signifies the agency’s proactive efforts in positioning the Philippines as a premier investment destination in Asia,” he said.
During the six-month period, PEZA said it approved five big-ticket projects worth P31.36 billion.
In June, it approved two projects worth P6.15 billion. A Malaysian company will set up a manufacturing and assembly facility for hair stylers, while a Japanese company will manufacture biomass fuel products, oxygen reducers, and activated charcoal made from coconut shells in General Santos City.
From January to June, the top investment sources were the Cayman Islands (P8.86 billion), Japan (P8.02 billion), Malaysia (P4.53 billion), Hong Kong (P1.62 billion), and Singapore (P1.27 billion).
The electronic manufacturing services sector attracted the most investments, accounting for P19.77 billion. This was followed by the ecozone development (P16.21 billion), IT-BPM industry (P2.89 billion), and automotive (P1.04 billion).
“Eastern European countries are also quite interested in the Philippines, with visits from Ukrainian, Polish, and Russian delegations conducting inquiries and site visits preparatory to investing in the country,” PEZA said.
PEZA is hoping to approve between P200 billion and P250 billion worth of investments this year. If realized, this will be at least a 15% growth from the P175.71 billion worth of investments approved in 2023. — Justine Irish D. Tabile