PEZA says it approved PHP6.87B worth of projects in May

The Philippine Economic Zone Authority (PEZA) approved 22 new and expansion projects worth PHP 6.87 billion in May, with the value dropping 54% from a year ago.

In a statement on Thursday, the investment promotion agency (IPA) said the approved investments last month are expected to generate USD 100.81 million in exports and create 4,616 jobs.

However, it was 54% lower than the PHP 14.93 billion worth of investments approved in May last year.

“The approvals reflect an increase of 10% in new and expansion projects from 20 approved in May 2023 and a 3.04% increase in direct employment from 4,438 recorded in the same month last year,” PEZA said.

The 22 approved investments comprise 10 export manufacturing projects, nine information technology and business process management (IT-BPM) projects, two domestic projects, and one facility development project.

“One Japanese enterprise registered a whopping PHP 3.9-billion big-ticket project into the manufacturing of semiconductor devices and other electronic components in Cebu,” the IPA said.

In terms of location, 12 projects will be in Calabarzon, three in the National Capital Region, three in Central Visayas, two in Western Visayas, one in Central Luzon, and one in the Davao Region.

According to the IPA, the approved activities range from high-tech manufacturing to IT-BPM facilities.

“This variety not only provides robust employment opportunities but also enhances the overall resilience of the Philippine economy, making it less susceptible to sector-specific downturns,” it added.

The projects approved last month brought PEZA’s approved investments for the year to PHP 36.83 billion, a 19.16% decline from the PHP 48.03-billion approved investments in the same period last year.

In the January-to-May period, the IPA has approved 95 new and expansion projects, which are projected to generate USD 1 billion worth of exports and 19,000 jobs.

“The rise in the number of approved projects emphasizes PEZA’s pivotal role in catalyzing investment inflow and fostering sustainable employment across various sectors,” said PEZA Director-General Tereso O. Panga.

PEZA also said that the investments approved in the first two months of the second quarter have already surpassed the PHP 14.95-billion approvals in the first quarter. 

From April to May, PEZA approved PHP 21.87 billion worth of investments, representing a 4.63% increase from the approved investments in the January-to-March period.

“The consistent rise in employment rates also suggests a positive trajectory for consumer spending and economic stability, which in turn may attract further foreign direct investments,” PEZA said. — Justine Irish D. Tabile