Pasay City ‐ Driven by proactive initiatives aimed at positioning the Philippines as the premier investment hub in the region, the Philippine Economic Zone Authority (PEZA) has reported an exceptional surge in investment approvals for the third quarter of 2024, nearly doubling the total recorded from January to August of this year.
From the recent board meeting, PEZA Director General Tereso O. Panga highlighted the pivotal role that new projects and expansion efforts are playing in fueling the country’s economic growth. With significant increases across various sectors, the Philippines is poised for an even more robust performance in the final quarter of 2024.
PEZA Director General Tereso O. Panga presiding the Board Meeting
From January to September 2024, PEZA had greenlighted 179 new and expansion projects. These are projected to generate USD 2.513 Billion in exports and boost employment by 35,871 direct Filipino jobs reflecting a robust performance compared to the same period in 2023. These approvals have accumulated a total of PhP 115.887 Billion worth of investments, strengthening the outlook for reaching the PhP 200 billion investment target of PEZA for the year.
Year on year performance to date shows a vast performance improvement for the Agency where there was a 24.31% increase in the number of new and expansion projects, 4.21% rise in investments, exports grew by 5.47%, and, most notably, employment opportunities experienced a substantial 55.82% increase for 2024. These figures underscore the aggressive and sustained momentum of PEZA’s investment promotion efforts, reflecting its commitment to driving economic development through foreign direct investments, increased exports, and local enterprise growth.
The PEZA Board discussing the approvals of new and expansion projects for the month of September 2024
Board Approvals for September 2024
On 23 September 2024, PEZA approved 16 new and expansion projects expected to bring in approximately PhP 54.191 billion in investments, generating US$ 541.04 million in exports, and provide 4,044 new jobs for Filipinos. Thus far, these projects stand out as the largest investment approvals of the year.
From the 16 approved new and expansion projects, there is a staggering 285% increase in investments amounting to PhP 54,191.509 billion compared to PhP 14,043.894 billion last September 2023 with significant boost in exports of 20.98% in the same period.
A wide range of industries constitutes the sixteen (16) newly approved and expansion projects for September 2024. These projects include eight (8) focused on export manufacturing, five (5) in the IT-BPM sector, one (1) in facilities development, one (1) dedicated to ecozone logistics services, and another one (1) in ecozone development. Similar to the previous month, CALABARZON remains the leading region for these initiatives, hosting eleven (11) projects across Laguna and Batangas. Following CALABARZON, Region VII with two (2) projects in Cebu, while NCR added two (2) more in Makati and Taguig, and Central Luzon with one (1) project in Pampanga.
PEZA Jan-Sept 2024 Performance
Moreover, this month’s board meeting saw the approval of a PhP 50 billion project, PEZA’s first big-ticket investment under the Marcos Jr. administration, which may be eligible for an incentive package for highly desirable projects under the CREATE Law.
In addition, a significant new ecozone development project was approved, led by a fully Filipino-owned developer with a total investment of PhP 988.287 Million. This project is strategically designed to enhance the operations and growth of locator companies in Lipa, Batangas. By providing critical infrastructure and support, the development aims to attract more businesses, boost local economic activity, and strengthen Batangas' role as a key hub for industrial and commercial enterprises. This approval marks a crucial step toward expanding investment opportunities in the region and contributing to the country's broader economic goals.
Such big-ticket investment plays a pivotal role in driving investment opportunities across the country, aligning with President Ferdinand Marcos Jr.'s vision of elevating the Philippines to upper-middle-income status.
The PEZA Board during its meeting for Q3 of 2024
DTI and PEZA are steadfast in their commitment to attracting more foreign direct investments (FDIs) through a series of successful investment missions in 2024. By engaging with globally competitive institutions and showcasing the Philippines’ potential as a premier investment destination, these missions aim to foster economic growth and further create employment opportunities for Filipinos. The collaborative efforts of DTI and PEZA ensure that the Philippines continues to thrive as a leading hub for international investments in Asia.
Following the ratification of the Philippine-South Korea FTA, and the impending passage of the CREATE MORE bill, PEZA sees a bright outlook in foreign direct investment (FDI) inflows. The CREATE MORE’s fiscal incentive regime will build on what is already recognized as the most competitive incentive regime in the ASEAN region, establishing the country as a prime destination for investors looking for exceptional opportunities and favorable conditions.
Given the stable outlook for the remaining months of the year, the PEZA Director General remarked “As such, and with the country being touted as the next tiger economy in the region – we in PEZA remain positive that our target forecast will be achieved for 2024.” ###