Sailing to New Horizons: PEZA Sets Ambitious PHP250-B Approval Target for 2024

In a recent press briefing held at its Pasay City headquarters, the Philippine Economic Zone Authority (PEZA) unveiled its audacious aim of greenlighting PHP250 billion in investments for the fiscal year 2024. This declaration signals a potential resurgence, seeking to eclipse the pinnacle reached during Atty. Lilia de Lima’s stewardship, a period marked by PEZA’s approval of projects ranging from PHP250 billion to PHP300 billion.

Director General Tereso Panga exuded confidence in the feasibility of this target, citing a projected increase of 15 percent at the lower end and a staggering surge of 42 percent at the higher end in contrast to the PHP175.71 billion investment pledges recorded for the preceding year (2023). Panga’s optimism finds grounding in the anticipation of major ventures, including economic zone development and the burgeoning electric vehicle manufacturing sector, poised for early approval in 2024.

One commendable facet of this endeavor is the burgeoning interest from foreign investors, notably hailing from Australia, China, South Korea (with whom the Philippines holds a free trade agreement), and the European Union. The latter confers upon the Philippines advantages under the Generalized Scheme of Preferences Plus. PEZA’s outbound missions, bolstered by the presence of President Ferdinand R. Marcos Jr., have played a pivotal role in enticing foreign enterprises, resulting in substantial investment pledges.

Of particular note is the resounding success of PEZA’s outbound missions, yielding significant pledges such as PHP1.4 billion in the United States, PHP10.8 billion in Japan with Junca Holdings, PHP8.32 billion in China, PHP20.6 billion in Taiwan, and PHP1.8 billion in the United Arab Emirates. The mission to Tokyo, Japan, accompanied by President Marcos, stands out, culminating in impressive investment pledges totaling PHP720.91 billion.

PEZA’s zenith in historical investment approvals was witnessed in 2012, reaching PHP312 billion, followed by PHP295 billion in 2015 and PHP279 billion in 2014. These milestones underscore the agency’s pivotal role in propelling economic growth and development throughout the years.

Director General Panga merits commendation for his astute leadership, unwavering dedication, and adept navigation of PEZA toward such ambitious targets. His strategic acumen and the triumph of outbound missions serve as a testament to the agency’s steadfast commitment to fostering a conducive environment for both local and foreign investments.

Recommendations for the Philippines:

Leverage Regional Trade Agreements: Strengthen collaborations with partner countries such as China, South Korea, and the European Union to maximize the benefits of existing free trade agreements. This endeavor can facilitate smoother business transactions and bolster investor confidence.
Infrastructure Development: Channel investments into infrastructure projects that bolster economic zones and manufacturing, ensuring seamless logistics and connectivity. A robust infrastructure network serves as a magnet for investors and facilitates the smooth flow of goods and services.
Investor-Friendly Policies: Continuously streamline and refine regulations to simplify the investment process for both local and foreign investors. Consistent and investor-friendly policies contribute to sustained economic expansion.

Recommendations for PEZA’s Future Endeavors:

Global Outreach: Broaden and diversify outbound missions to tap into untapped markets. Emerging economies and regions displaying a burgeoning appetite for investment could be strategic focal points.
Technology and Sustainability: Foster investments in technology-driven and sustainable industries. The global shift towards green and innovative solutions presents an opportunity for the Philippines to position itself as a hub for forward-looking industries.
Public-Private Partnerships: Cultivate collaboration between the government and private sector to tackle challenges and foster an environment conducive to long-term investments. Joint initiatives can enhance infrastructure, streamline processes, and address evolving economic demands.

In summation, PEZA’s ambitious vision for 2024 underscores the Philippines’ unwavering commitment to economic advancement. Through meticulous planning, sustained collaboration, and a steadfast commitment to sustainable development, the nation stands poised to ride the crest of success, ushering in an era of heightened investments, job creation, and economic prosperity.