THE PHILIPPINE Economic Zone Authority (PEZA) said that it is confident in achieving its target this year, despite seeing a 57.4% decline in investment approvals in January.
In a statement on Tuesday, PEZA said that it approved 18 new projects in its first board meeting for the year worth P12.86 billion.
These comprise of seven manufacturing projects, five ecozone developments, and two information technology and business process management projects. Also approved were a domestic enterprise, utilities project, logistics project and tourism project.
However, the January approvals are only less than half of the P30.156-billion investments approved a year ago.
Despite the decline, PEZA Director-General Tereso O. Panga said that the agency remains confident in achieving its P300-billion investment approval target for the year.
鈥淲e are realistic about the environment, but we are equally confident in our direction,鈥 he said.
鈥淲ith a robust pipeline and consistent investor engagement, PEZA is well-positioned to work toward achieving our target for the year,鈥 he added.
PEZA said it recognized the evolving investment strategies as part of a 鈥減eriod of measured adjustment鈥 rather than a 鈥渨ithdrawal鈥 on the investors鈥 part.
鈥淚nvestors remain engaged in the Philippine market, taking a more thoughtful approach to timing and scale while continuing to prioritize efficiency, export capability, and long-term positioning,鈥 it added.
In particular, this month鈥檚 approvals are expected to generate $59.74 million in exports and around 1,000 jobs.
Trade Secretary and PEZA Board Chair Ma. Cristina A. Roque said that the approved projects in January reflect a geographically balanced investment footprint.
鈥淏y encouraging investments that are export-oriented and geographically diverse, we are strengthening the foundations for inclusive growth and ensuring that more regions benefit from global trade and economic opportunities,鈥 she added.
The projects are expected to be set up in Laguna, Cavite, Batangas, Para帽aque City, Quezon City, Marikina, Cebu, Camarines Sur, Misamis Occidental, and General Santos City.
Meanwhile, Japan was the top source of approved PEZA investments in January, accounting for P296.94 million.
The other top sources were the Netherlands (P216.31 million), Hong Kong (P177.03 million), Singapore (P110.39 million), and China (P48.52 million).
鈥淚nvestors today are taking a more deliberate approach 鈥 prioritizing resilience, efficiency, and long-term value,鈥 said Mr. Panga.
鈥淲hat is encouraging is that the Philippines continues to offer stable fundamentals that allow export-oriented investments to move forward with confidence,鈥 he added.
This month鈥檚 approvals were anchored on three large-scale projects, which include the tourism ecozone enterprise in Para帽aque City worth over P5 billion, and the ecozone developments in Misamis Occidental and Batangas worth a combined P5.9 billion.
Sought for comment, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the new investment approvals show the attractive demographics and economic fundamentals of the country.
鈥淚f governance standards as well as ease and cost of doing business further improve, it will improve investor confidence in the country,鈥 he said in a Viber message.
鈥淭his is on top of the incentives provided under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act and enhanced by the CREATE to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, among other reforms implemented in recent years,鈥 he added.
John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said that the P300-billion target is still within reach for PEZA given its momentum last year.
鈥淚n 2025, PEZA surpassed its target in approved investments showing resilient investor interest despite macro uncertainty,鈥 he said in a Viber message.
However, he said that continued approvals 鈥渨ill depend on how many projects in the pipeline actually finalize and proceed to board approval.鈥 鈥 Justine Irish D. Tabile
