Pasay City – The Philippine Economic Zone Authority (PEZA) remains a significant driving force behind economic progress and job creation with the approval of 120 new and expansion projects from January to June 2024 expected to create more than 25,000 direct jobs, injecting PhP 45.482 billion in investments with projected exports at approximately US$ 1.611 billion.
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.
“The approval of these projects signals robust confidence in the Philippines’ business environment and economic potential. Furthermore, creating more jobs for Filipinos signifies the agency’s proactive efforts in positioning the Philippines as a premier investment destination in Asia, aligned with DTI’s agenda of promoting employment opportunities through investment growth.” expressed PEZA Director Tereso O. Panga.
He noted, “Following the strategic investment generation and FDI collaboration plans of our government spearheaded by President Ferdinand R. Marcos Jr., we are positive in enhancing and strengthening our efforts even more to secure partnerships from a large number of investors in different industries for the continuous boost in the Philippines’ economic growth and progress.”
It is also notable that Q2 has remarkably higher trade statistics than Q1 2024. Q2 approved 70 new and expansion projects, 40% higher than the 50 projects greenlighted in the first quarter. Likewise, Q2 manifested a staggering 104.29% increase in investments with PhP 30.530 billion compared to Q1’s PhP 14.951 billion. In terms of employment, the approved projected employment of 13,751 in the second quarter registered an 18.97% increase from the 11,558 projected employment approved in the first quarter.
For the same period, PEZA also approved five (5) big-ticket projects with combined total investments of PhP 31.362 Billion, two (2) of which were approved in June. The first and biggest project is a Filipino-led ecozone development in Tarlac, followed by a Caymanian company to manufacture solar wafer cells with Maxeon 7 technology; and a Japanese company into the manufacturing of metal base wire-wound chip inductors.
As for the other two (2) newly approved big-ticket projects in June, the PhP 6.150 billion investments came from a Malaysian company focusing on the manufacture and assembly of hair stylers, and a Japanese locator into manufacture of biomass fuel products, oxygen reducers, and high-quality activated charcoal made from coconut shells in General Santos City.
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.
June 2024 Board Approvals
On 28 June 2024, the PEZA Board approved 25 new and expansion projects to inject PhP 8.654 billion worth of investments, US$ 416 million in exports, and create 5,881 direct employment opportunities.
These approvals reflect a 13.64% increase in new and expansion projects from the 22 approved in June 2023 and a 69.24% increase in direct employment from the 3,475 recorded in the same month last year.
The approved 25 projects cover various industries, with twenty-two (22) locator companies and 3 ecozone developers. These locator companies comprise export manufacturing activities with eleven (11) projects, followed by six (6) in IT-BPM, three (3) in domestic markets, one (1) in facilities development, and one (1) in logistics services.
CALABARZON remains the preferred destination for new locator projects with fifteen (15) being located in Batangas, Cavite, and Laguna, followed by NCR with three (3) specifically in Quezon City and Marikina, and fully dispersed project approvals in the country with three (3) located in Region III (Pampanga and Bulacan), one (1) in Region V (Naga), two (2) in Region VII (Cebu), and one (1) in Region XII (General Santos).
As PEZA continues to attract significant investments and drive economic growth, it reaffirms its commitment to fostering an environment conducive to business and employment generation. With the upcoming State of the Nation Address (SONA) of the President, the business community is upbeat on the prospects from the urgent enactment of CREATE More—a priority bill of the Administration that is meant to attract more FDI and mobilize private investments in priority sectors as provided in the SIPP. This is aligned with the positive forecast of many economists and credit rating institutions that the Philippine economy will fare better in the second half of the year. The government is targeting to achieve a 6.5-7.5% GDP growth for 2024, which is the highest among ASEAN.
DG Panga noted, “With strategic planning and continued support from the government, PEZA is well-positioned to meet its short and long-term goals, ensuring that the Philippines remains a competitive and attractive destination for global investors.” ###
