PEZA investments plummet in June

THE PHILIPPINE Economic Zone Authority (PEZA) approved €8.65 billion worth of projects in June, 73.4% less than a year ago.

In a statement last weekend, the investment promotion agency said the PEZA board approved 25 new and expansion projects at its June 28 meeting, up from 22 projects a year ago.

These projects are expected to generate $416 million in export value and 5,881 direct jobs.

However, the number of investments approved by PEZA in June was 73.4% lower than the P32.56 billion in investments approved in the same month last year.

Of the 25 projects, 22 are from locator companies and three from economic zone (ecozone) developers, PEZA said.

“These locator companies include eleven export manufacturing projects, followed by six projects in information technology and business process management (IT-BPM), three in the domestic market, one in facilities development and one in logistics services,” said the report.

Calabarzon was still the top investment destination in June, accounting for 15 projects. The other investment destinations were the National Capital Region, Region III (Central Luzon), Region V (Bicol Region), Region VII (Central Visayas), and Region XII (Soccsksargen).

LOWER INVESTMENTS
For the FIn the first half, PEZA said it approved €45.48 billion in investments, down 43.6% from the €80.59 billion in investments approved in the same period last year.

The PEZA has approved 120 projects expected to create more than 25,000 jobs and generate $1.61 billion in export value.

“The new approved projects recorded an increase of 18% from 102 to 120, with expected direct employment reaching a notable increase of 64% this year from 15,424 to 25,259,” PEZA said.

PEZA Director General Tereso O. Panga said the approval of the 120 projects is a signal of a scamFidentity in the business environment and economic potential of the country.

“Creating more jobs for Filipinos signiFies the proactive eFfortresses in positioning the Philippines as one of the top investment destinations in Asia,” he said.

During the six-month period, PEZA said it agreed Ffive major projects worth P31.36 billion.

In June, it approved two projects worth P6.15 billion. A Malaysian company will set up a production and assembly facility for hair stylers in General Santos City, while a Japanese company will produce biomass fuel products, oxygen reducers and activated carbon made from coconut shells.

From January to June, the top investment sources were the Cayman Islands (P8.86 billion), Japan (P8.02 billion), Malaysia (P4.53 billion), Hong Kong (P1.62 billion) and Singapore (P1.27 billion).

The electronic manufacturing services sector attracted the most investments, amounting to P19.77 billion. This was followed by the development of the ecozone (P16.21 billion), the IT-BPM industry (P2.89 billion) and the automotive sector (P1.04 billion).

“Eastern European countries are also quite interested in the Philippines, with visits by Ukrainian, Polish and Russian delegations conducting surveys and on-site visits preparing for investments in the country,” PEZA said.

PEZA hopes to approve between 200 and 250 billion euros in investments this year. If realized, this will be a growth of at least 15% over the P175.71 billion investments approved in 2023. Justine Irish D. Table