PEZA on track to beat PHP 300-billion target

The Philippine Economic Zone Authority (PEZA) is confident of exceeding its PHP 300-billion investment approvals target this year amid growing interest from Japanese and Chinese investors, its top official said.

PEZA Director-General Tereso O. Panga said its investment approvals as of end-August are nearly three-fourths of its full-year target.

“That will allow us to breach the highest, based on our historical performance in 2012, when we approved some PHP 312 billion in PEZA investments,” he told reporters last week.

According to Mr. Panga, the agency is confident it will surpass its investment target this year amid strong interest from investors in neighboring countries like China, Taiwan, and Japan.

“We’re getting a lot of heightened interest, because this time, not only are investors coming from China, there’s also from Taiwan,” he said.

Mr. Panga also noted a recovery in investments from Japanese firms, likely due to renewed confidence in the Philippines.

“Japanese investments are bouncing back… probably, due to their restored confidence in the Philippines, and with this Pax Silica and the Luzon Economic Corridor (LEC) where Japan is one of the pioneer economies,” he said.

Japan is a signatory to the Washington-led Pax Silica coalition and is one of the founding partners of the 13-country LEC, both of which include the Philippines.

Manila is seeking to leverage Pax Silica and the LEC to attract high-value investments and boost its position as a regional hub for manufacturing, semiconductors, shipbuilding, and critical minerals processing.

In the first eight months of the year, the PEZA Board approved PHP 216.46 billion worth of investments or about 72.15% of its PHP 300-billion investment target for 2026.

Sought for comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the government’s push to incentivize electric vehicle manufacturing would help attract foreign investments.

However, he cited the need for reforms to improve investor confidence, such as lowering power costs, improving ease of doing business, and ensuring consistent policies across the national and local levels.

Meanwhile, Mr. Panga said it is looking to have at least 20 PEZA ecozone proclamations this year.

“We hope to catch on some remaining ecozone [proclamations] that are still pending with the Office of the President,” he said.

“We’re not confident enough to exceed the [target of] 30 ecozones, but at least if we can get 20 or more, that should be good enough,” Mr. Panga added.

PEZA also expects new applications for information technology (IT) parks, following the lifting of the seven-year moratorium for IT parks and centers in Metro Manila, Mr. Panga said.

He noted that PEZA has received an application for the first IT park in Manila City from Star Digital Solutions, an electronic commerce marketing firm and Philippine partner of TikTok Shop.

Other Manila-based IT parks with pending applications include MJ Landtrade Development Corp.’s Altaire in Makati City; Triumvirate Development Corp.’s One Trium Tower in Muntinlupa City; Ayala Land, Inc.’s ARCA South 1 in Taguig City; Aseana Holdings, Inc.’s Parqal in Parañaque City; and San Lorenzo Ruiz Investment Holdings and Services, Inc.’s The Yuchengco Centre in Makati City. — Beatriz Marie D. Cruz