MANILA, Philippines — Director General Charito Plaza of the Philippine Economic Zone Authority (PEZA) said…
PEZA anticipates a 6-7% rise in investment commitments.
Tereso Panga, officer-in-charge and deputy director general of the Philippine Economic Zone Authority (PEZA), is optimistic that the investment promotion agency (IPA) will achieve its 6% to 7% rise in investment approvals this year.
Panga stated, “We remain confident that we will be able to meet our 6 to 7 percent investment target for the year, taking into account the strong growth estimates for 2022 of our winner ecozone sectors.”
He stated that the information technology and business process management (IT-BPM) sector is aiming for up to 15% growth this year, while the semiconductor and electronics industry is anticipating a 10 percent gain.
Among the leading investors in economic zones are these two industries.
According to Panga, the estimated year-end GDP (gross domestic product) growth for the Philippines is 6.5 percent to 7.5 percent, placing the nation among the fastest-growing countries in the region.
According to the PEZA, 148 projects pledged PHP39.63 billion investments under the IPA between January and September 2022.
20 large-scale projects totaling PHP24.76 billion made up around 60% of the investment commitments between January and September this year. Once these projects are operational, they will produce 9,649 jobs and generate USD654.34 million in exports.
According to PEZA, these investments will produce various goods, including SMS/EMS (semiconductor manufacturing services/electronics manufacturing services), lodging, real estate activities, office administration, and business support activities.
Cebu Mitsumi, Inc., Robinsons Land Corp., and TDK Philippines Corp. are a few of the expensive projects that the IPA approved this year.
However, according to data from the Philippine Statistics Authority (PSA), investment promises between January and September 2022 fell by 15.2 percent from PHP46.74 billion in approved investments during the same period in 2021.
PEZA had PHP69.3 billion in investment commitments for 2021.
As a result, the agency must register projects totaling about PHP34 billion in the fourth quarter if it wants to meet its year’s 6 to 7 percent goal.
By “taking advantage of the new and modified laws to increase competitiveness in the market and promote the expansion of investments in the country,” the PEZA stated that it is dedicated to supporting the administration’s socioeconomic goal.
According to Panga, “PEZA is looking to attract high-tech industries and emerging technologies in industrial manufacturing, transportation, technology, media, telecommunications, health, and life sciences, including mineral processing of green metals. This is in line with the new DTI strategic priorities.
PEZA approved 58 projects totaling PHP17.14 billion during the first three months of the Marcos administration.
These investment commitments are anticipated to increase exports by USD877.81 million and create 13,904 new jobs.
According to PEZA, of the approved new and expanded projects, “21 will be for export, 19 for IT, seven will be for facilities, and three will be for tourists.”
From July to September of this year, eight ecozones were added, including two IT parks in Iloilo and Davao, two agro-industrial zones in Iloilo, and four manufacturing ecozones in Cavite, Batangas, Bulacan, and Pampanga.
Between January and August 2022, export revenues in PEZA zones rose by 6% to USD43.17 billion, while the number of direct employment created in economic zones increased by 6.52% to 1,798,152.
Given the optimistic growth rate forecast for the ecozone semiconductor-electronics and IT sectors, the President’s aggressive investment promotion efforts, and upcoming missions to Taiwan, South Korea, and Japan, we at PEZA reassure the new administration led by President Bongbong Marcos Jr. that we can attract more investments for this final quarter of the year. According to Panga, the optimum moment to invest is right now since ecozone incentives have been increased and top-level governmental support has been provided.
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