Philippine Standard Time - Wednesday, September 27, 2023,

PEZA eyes more American investments in ecozones, targets 10% growth in 2023

Wednesday, January 25, 2023

Pasay City – The Philippine Economic Zone Authority (PEZA) says it is looking forward to register big-ticket investments coming from the USA as the agency targets 10% growth in investments this 2023.

This comes as PEZA, with the Department of Trade and Industry (DTI) and other government agencies, recently concluded missions to Las Vegas and Washington D.C., USA and in Bern, Switzerland, the first in a series of aggressive investment promotion facilitations for the year.

“With the right business climate in the country, and with PEZA’s one-stop-shop, ease of doing business, and brand of excellence in place, it is highly anticipated that Philippines will be at a great advantage in getting more investment for the country,” said PEZA Officer-in-Charge Tereso O. Panga.

The US Department of State in 2020 specifically commended PEZA for its brand of service, saying that “While the Philippine bureaucracy can be slow and opaque in its processes, the business environment is notably better within the special economic zones, particularly those available for export businesses operated by the Philippine Economic Zone Authority (PEZA), known for its regulatory transparency, no red-tape policy, and one-stop shop services for investors.”


American investments in PEZA

PEZA, along with the other members of the Philippine delegation led by the DTI, Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) and Meralco have participated in the CES 2023: Philippine Business Forum, the global stage for innovation and the most influential tech event in the world.

PEZA OIC Deputy Director General Aleem Guiapal, who represented OIC Director General Panga in the mission, also highlighted that “American investments within the PEZA ecozones now stand at PhP 402.827 billion from a total of 363 companies, mostly engaged IT and business process management and in various manufacturing sectors. This makes the US the country’s third largest investor by nationality registered with PEZA.”

Moreover, these companies have also generated US$ 7.739 Billion exports, and 367,049 direct jobs as of December 2022.

Moreover, PEZA’s participation to CES is part of the priorities to strengthen its strong hold of the semiconductor and electronics industries present in its various locations. Semiconductor and electronics-related products comprise the 34.38% of the total investment in PEZA by sector.

“We are also looking forward to make the most of the Creating Helpful Incentives to Produce Semiconductors for America Act or the CHIPS for America (CHIPS) Act which will allow the EMS/SMS industry to continue its growth and flourish in the country, with strong demand continuing to be present in the international market,” said Panga.

Aside from the CES 2023, PEZA also conducted the investment forum in Washington D.C., together with the Philippine Embassy (P.E.) and the Philippine Trade and Investment Center in Washington DC (PTIC-WDC).

OIC Deputy Director General Guiapal and IT Business Process Association of the Philippines (IBPAP) President and CEO Jack Madrid both pitched the country as the best investment haven in Asia, highlighting the efforts of both the public and private sectors in enhancing the ease of doing business in the Philippines.

“The Philippines attracts foreign investors in the industry due to our skilled talent pool with high emotional quotient, cost competitiveness, a robust ecosystem to support global service delivery, well-developed cities to house companies and favorable business environment,” said Madrid.

On the sidelines, PEZA also conducted various B2B and G2G meetings with potential American investors engaged in different emerging sectors.


Investment leads from the US

Some of the notable leads which signified interest to expand their operations in the Philippines were from Silver State Health Org., Nevada Prime Care LLC., and LCE Newport Beach Inc. 

Quantum Global Holdings Inc. also expressed its intent to look for a joint venture for a 1,000-hectare industrial complex to be located in North Luzon. Potential projects include electric bus manufacturing worth at least US$ 1 billion, medical equipment manufacturing with approximately US$ 50 million, and retirement/healthcare facilities worth US$ 100 million.

Other leads include Archer-Daniels-Midland Company (ADM), Tyson Foods, Cargill Oil Mills (around PhP 1.4 Billion initial investment pledge) and Leuterio Thomas LLC.

ADM expressed interest in growing their business operations in the Philippines in the area of feed milling operations, whereas Tyson Foods wants to expand their business in the Philippines and hinted at a possible IT-BPM investment in financial and HR services to serve their global operations.

Panga noted, “We remain bullish that we will be able to surpass our performance in 2022 and achieve our 10% growth increase based on the initial locator sector target, given our aggressive and strategic investment promotions. We also expect more big-ticket projects this year as a result of our investment missions in Japan, Taiwan, and South Korea in the last quarter of 2022.” #