It pleases DAILY TRIBUNE readers that as President Ferdinand R. Marcos Jr. marks his second year in office, the Philippine Economic Zone Authority (PEZA) is gearing up for the economic upturn and intensifying our investment promotion efforts.
Going into the second semester, PEZA is facilitating new and expansion projects of ecozone investors. This comes after our country’s strong FDI net inflows in the first quarter of 2024, which increased by 42.1 percent compared to the same period in 2023.
Per the First Metro Investment Corporation and the UAP, “Philippine economic growth is expected to accelerate beginning in the second quarter of the year, driven by ramped up government spending, easing inflation, and the high employment level.”
In PEZA, they see the same upward trajectory as it achieves a higher P250-billion investment target this year, and so with our increased ecozone jobs and exports. Of the annual average 70-percent share of FDI in the total PEZA investments, we expect the Japanese, Americans, Singaporeans, British and South Koreans to be among our leading foreign investors this year.
Now, the Philippines is poised with a projected higher GDP, competing favorably with neighboring countries despite geopolitical and economic headwinds. The government is 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, our people will see more businesses landing on our shores.
As of last June, we already recorded a total of P45.49 billion in investments in more than 100 new and expansion projects. We are anticipating more strategic investments coming into the Philippines as a result of our combined efforts to promote the country as an investment destination.
Likewise, PEZA is strengthening our investment attraction and facilitation through the ecozone development program — a vital tool to bring in much needed foreign investments to the Philippines.
PEZA director General Tereso Panga shared with us that they are more than encouraged by the following positive developments under the Marcos Administration.
Of course, other factors that bode well for the economy are: Cumulative net inflows for the first quarter of the year now stand at an impressive $3 billion, which is 42 percent higher than the previous year; the country is maintaining its high investment-grade status; the manufacturing sector’s continued positive performance in May 2024, recording an index higher than the neutral score of 50, at 51.9.
In Panga’s keynote address at the recent AmCham “Future of Logistics 2024” forum, he highlighted the significant improvement in the Philippines’ global ranking in the 2023 Logistics Performance Index (LPI). Among ASEAN 6, from an LPI score of 2.86 in 2018 (PH was 6th among ASEAN countries), the Philippines now ranks 4th following Malaysia, Thailand and Singapore.
Expectedly, we did better in this category than Vietnam and Indonesia. In terms of digital and sustainable trade facilitation, the Philippines ranked second to Singapore—ahead of its ASEAN counterparts based on the 2023 UN Global survey.
With these developments, I see the need to capitalize on these pull factors for the Philippines to be able to attract more investments and sustain the country’s growth momentum. Further pursuing the momentum, PEZA is tapping local business titans like San Miguel Corporation, Megaworld, DMCI, among others, to venture into ecozone development.
DG Panga firmly believes that the agency’s seemingly tireless efforts will create more employment, livelihood, and other economic opportunities in rural and new growth areas.
“We firmly believe that ecozones act as eco-shields that soften the landing of headwinds, external constraints, and global disruptions and, at the same time, serve as eco-drivers of economic recovery and growth,” he said.
“Through our offering of optimal locations and business ecosystems for investors, along with our renowned one-stop shop services and a no red tape but only red-carpet treatment policy — we can help further position the Philippines as a premier investment destination in the region,” he added.
If we have people in government who have the vision, industry, efficiency, organization and competence that PEZA demonstrates, the economic future is bright for us Filipinos. I have no doubt about it.
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