The Market Monitor Minding the Nation's Business
By Jinky Jorgio
THE Philippine Economic Zone Authority (PEZA) expects to end 2024 with approved investments of around P215 billion, the highest in seven years.
PEZA is also aiming for a nine to 10 percent increase in investment approvals next year, following the approval of the CREATE MORE and a new free trade agreement (FTA) with South Korea.
PEZA director general Tereso Panga said the agency is looking at a “nine to 10 percent increase in investments” next year to reach a minimum of P235 billion from the 2024 performance.
Panga explained that PEZA, which held its last board meeting recently, expects total investment approvals to reach around P215 billion for this year, including the approval of P7.07 billion worth of projects in ecozone development and P6.38 billion worth of locator projects at today’s board meeting.
Investments approved by the PEZA in the January to November period reached P201.55 billion, up by 43.06 percent year-on-year.
The investment approvals in the 11 months are also above the total investments approved by the PEZA in 2023 amounting to P175.71 billion.
Panga said the CREATE MORE, which enhances incentives for investors, is expected to attract more investments into the country.
“You have the CREATE MORE, which now provides for the most generous fiscal incentives for investors among ASEAN (Association of Southeast Asian Nations) economies, and of course, the fiscal and economic reforms already put in place by the government. So we’re anticipating bullish projections with our upward trajectory of investments,” he said.
With the ratification of the bilateral FTA between the Philippines and South Korea, he said the PEZA expects to get more investments from Korean firms next year.
He also cited China, Taiwan, the US, and Japan as other expected sources of investments next year.
Panga said the PEZA is also diversifying its sources of investments in order to attract more investments,
He said PEZA’s ambitious plan is to exceed the record level of investments approved in 2012 when it reached P311.9 billion, within the current administration.
“As soon as we breach that, the Philippines will be seen as a serious contender when it comes to FDI (foreign direct investment) attraction in the region,” he said.