PEZA approved investments up by P14.9-B in Q1 2024

The Philippine Economic Zone Authority (PEZA) on Saturday said it has approved P2.845 billion in investments from January to March, which is higher by 19.25 percent than the P12.53 billion approved during the same period last year.

In a news forum on Saturday, PEZA Director General Tereso Panga said almost half of the approved investment was the result of President Ferdinand R. Marcos Jr.’s foreign trips.

According to Panga, the PEZA approved an additional P2.85 billion as of 15 March, also up by 21.8 percent compared to the P2.34 billion in the same month last year.

He said the PEZA is expecting these investments to yield USD363.77 million in export revenues and 7,978 jobs.

Meanwhile, the total approved investments are seen to create at least 11,558 jobs and generate USD1.025 billion in exports.

“All our indicators are up for exports and employment,” he said.

Panga said the PEZA projection is a “good sign” that the country’s upward trajectory will be sustained for the entire 2024.

“[This] is something that we would expect for 2024 and onwards because the Philippines happens to have the highest GDP (gross domestic product) growth rate in ASEAN since 2022 for three years in a row now,” he added.

Panga noted this development “makes the Philippines one of the best-performing economies in the region.”

He then cited the economic zones contribute to about 17 percent of the GDP, with more than 50 to 60 percent of the total country’s exports of goods and services coming from the locators of PEZA alone.

This means, Panga said the Philippines might be reaping gains from President Marcos’ foreign trips.

About 43 percent or roughly P75 billion of the total PHP175.5 billion PEZA-approved investments can be attributed to the presidential visits in 2023 alone, he added.

“It’s very important, very effective. I would say that it’s because of the President reaching out to people and economies and taking advantage of our FTAs or free trade agreements that we as a nation are able to attract investments,” Panga said.

Meantime, Panga said the employment number slightly decreased by two percent last year, due to the flat growth experienced by the electronic industry.

But he expressed optimism that this will improve in 2024 as reflected in the first quarter figures.

“The flat growth in the electronic industry was a global phenomenon but starting 2024, we should recover, pick up, and increase not just in investments but including jobs and exports,” he said.

Panga said the PEZA, which was created in 1995, serves as a key player in the country’s economy, contributing almost 17 percent to the GDP.

He noted that more than 50 to 60 percent of the country’s total exports of goods and services come from the locators alone.