PEZA primes robust growth momentum
Significant strides in turning PEZA into a formidable investment promotion agency cannot be done alone by them but with continued collaboration with other government agencies
Daily TribuneSignificant strides in turning PEZA into a formidable investment promotion agency cannot be done alone by them but with continued collaboration with other government agencies
Director general Tereso Panga said the Philippine Economic Zone Authority’s target is P250 billion in new projects for this year fueled by the information technology-business process management, or IT-BPM, sector. | Photograph courtesy of PEZA
Among the sectors driving the development boom are the economic zones under the Philippine Economic Zone Authority, or PEZA, which had a stellar 2023.
PEZA director general Tereso Panga had set his sights on further growth this year.
With the impressive P175 billion worth of approved investments in economic zones, Panga said the year past was exhilarating for investment growth in the Philippines.
"Commitments that PEZA has generated in both new and expansion projects from existing locators; the acquisition and registration of new ones owing to the President's continued and relentless promotion of the nation as a thriving investment hub; the setting of sound economic fundamentals that puts us at par with neighbors in ASEAN and the creation of new legislation by Congress that further champion the ecozone agenda, were credited for ecozones revenue growth," Panga told Daily Tribune.
"Truly, it was a whole of government and industry effort and approach that allowed PEZA and the other IPAs together with the Department of Trade and Industry to turn around the decline and even post higher gains than in 2021," he said.
He also stressed that 2023 is pivotal as it sets the stage for PEZA's eventual resurgence, exemplified by surpassing the +10 percent investment approvals target with an "impressive" 5-year high of P175 billion, versus the previous year's P140 billion.
"Looking ahead to 2024, the aim is to achieve P250 billion, aligning with PEZA's peak performance during 2012-2015, fueled by the information technology-business process managemtn, or IT-BPM, industry and robust GDP growth, solidifying the Philippines as one of the best-performing economies in the region," he said.
Panga maintained that the Philippines is poised for continued success in 2024 with a projected higher gross domestic product, competing favorably with neighboring countries despite geopolitical and economic headwinds.
According to the World Bank projections, the country's GDP is expected to moderate to 5.6 percent in 2023 from 7.6 percent in 2022.
With the impressive P175 billion worth of approved investments in economic zones, Panga said the year past was exhilarating for investment growth in the Philippines.
Despite the downturn, the country is projected to post the highest growth in comparison to its neighboring countries.
The bank also estimates a growth of 5.8 percent for 2024.
"I am confident that as we set a higher level of ecozone management and provide new avenues of growth for current and prospective investors with various types of ecozones, even a mega ecozone, we will see more businesses landing on our shores! This excites us even more in PEZA as we tap into promising sectors and innovations such as advanced manufacturing, EVs' (electric vehicle) production, frontier technologies, regenerative agriculture and blue resources, green ores processing, renewable and alternative energy, and eco-industrial park and smart township development," Panga explained.
He said, on the other hand, PEZA will explore new trade and investment areas like Canada, South Korea, Australia, the Middle East, the European Union and China to complement its steady sources of ecozone FDIs from Japan, the United States, the Netherlands, the United Kingdom and Singapore.
The top five big-ticket investments at PEZA for the year 2023 were Raedang International Builders and Developer Corp. at the North Cebu Economic Zone with the project cost of P27.178 billion; Green Energy with Torrefaction Technology Inc in Gensan Economic Zone (P19.70 billion); Philippine Manufacturing Co. of Murata Inc. in First Philippine Industrial Park-SEZ (P12.423 billion); Dyson Electronics PTE. LTD-Philippine Branch in Carmelray Industrial Park II-SEZ and First Philippine Industrial Park II-SEZ (P12.306 billion), and TI (Philippines), Inc. in Baguio City Economic Zone and CLARK TI-SEZ (P11.740 billion).
Next year's focus
Panga said the strategic focus for 2024 for PEZA revolves around an aggressive approach to acquiring investments, cultivating a sound business environment that supports investor growth, championing ease of doing business, and fostering vertical supply and global value chains that align with ASEAN and global partners.
"Initiatives encompass the introduction of innovative IT solutions and the development of modern infrastructure and transport systems, strategically overcoming archipelagic challenges," he said.
Moreover, he stressed that as PEZA spread ecozones across the Philippines as envisioned by the President, it is their goal to accelerate countrywide economic development to benefit our countrymen.
"More ecozones mean more businesses and more employment and improved quality of life for Filipinos across the Philippines. Our reinvigorated mission and mantra will be eco-zoning the Philippines towards inclusive and sustainable development," according to Panga.
To date, PEZA hosts 422 ecozones and 4,352 locator companies/projects nationwide.
