THE PHILIPPINE Economic Zone Authority (PEZA) sanctioned P22.78 billion in funding commitments in February, a surge of 130.5% from P9.89 billion in commitments sanctioned the previous year.
During a gathering on Feb. 20, the PEZA Board sanctioned 26 fresh and expanding initiatives that are projected to yield $241.79 million in exports and generate 7,793 employment opportunities.
Nine of these initiatives are in export manufacturing, whereas eight pertain to information technology and business process management.
Four of the initiatives are developments within economic zones (ecozones), three target the domestic market, and two are focused on facility development.
The initiatives span across Metro Manila, Calabarzon, Central Luzon, Central Visayas, Western Visayas, Ilocos Region, and Davao Region.
Among the latest approvals is a P10.45-billion investment aimed at establishing an ecozone for South Korean businesses to set up their operations.
“With the Philippines-South Korea free trade agreement now in effect, PEZA is partnering with the Bases Conversion and Development Authority to establish this multifaceted ecozone,” PEZA stated.
“[It] will host various sectors, including manufacturing, agro-industrial, tourism, and information technology, further enhancing economic prospects and sectoral development,” it added.
In the initial two months, PEZA approved 39 new and expanding initiatives valued at P52.93 billion. This figure exceeds four times the P12.1 billion worth of investment commitments sanctioned the prior year.
“PEZA’s growing investments demonstrate its commitment to assisting various sectors and driving the nation’s economic advancement,” remarked PEZA Director-General Tereso O. Panga.
“By attracting initiatives from priority industries such as emerging technologies in the EMS-SMS (electronics manufacturing services-semiconductor manufacturing services) domain and establishing strategic partnerships with the pharmaceutical industry, among others, PEZA continues to pull in investments that invigorate regional economic development and enhance the nation’s industrial framework,” he further stated.
PEZA announced it is on schedule to meet its goal of endorsing approximately P235 billion in investment commitments this year, marking an increase of 9-10% compared to the P214.18 billion worth of commitments approved in 2024.
PEZA noted that investments from domestic market enterprises (DME) have been rising, accounting for P37.97 billion or 71% of the investment commitments approved from January to February.
Since 2024, the organization has approved 15 DME initiatives totaling over P130 billion, three of which are anticipated to receive an extended array of incentives after investing more than P15 billion.
In the meantime, Trade Secretary and PEZA Board Chairperson Ma. Cristina A. Roque noted the increased investment approvals are likely influenced by the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
“The CREATE MORE Act serves as a transformative factor for the influx of foreign direct investments into the nation, encouraging greater participation from international investors due to the extended incentives being provided,” she stated.
President Ferdinand R. Marcos, Jr. enacted the CREATE MORE Act in November, aimed at enhancing the nation’s competitiveness and appeal to investors.
PEZA anticipates a surge of additional investments following the CREATE MORE Act’s implementing rules and regulations (IRR) having been finalized last week.
“The IRR underlines PEZA’s core mission to promote investment growth, generate employment, and foster sustainable development, particularly in rural areas. We now offer even more advantages for investors who wish to establish in the Philippines,” Mr. Panga stated.
The IRR elaborates on the transitory guidelines for pre-CREATE registered business enterprises (RBE) to continue enjoying their previously granted tax advantages. The RBEs may also access additional incentives or measures under CREATE MORE. — Justine Irish D. Tabile
