Higher by 18.65% yr-on-yr
Investment approvals of the Philippine Economic Zone Authority (PEZA) surged by 18.65 percent to P48.759 billion in the first four months of the year from P41.093 billion generated in the same period last year.
In a briefing after a memorandum of agreement (MOA) signing on Tuesday, PEZA Director General Lilia de Lima said the investments came from 208 PEZA-registered projects, compared with 187 projects registered in January to April 2015.
De Lima said significant growth was seen in information technology (IT) related investments such as IT parks, centers and zones—more than doubling to P8.987 billion from P3.922 billion a year earlier
“Companies are expanding and new players are coming in. (Investments in) IT is the fastest growing with P8.987 billion, but there’s still more investments in the manufacturing sector,” De Lima said.
Once approved by PEZA, projects and facilities committed by local and foreign investors are set to start construction.
Of the total P48.759 billion PEZA approved investments in January to April, P8.987 billion from 85 projects are IT-related investments while the rest —P39.772 billion worth of investments from 123 projects —are in the manufacturing sector.
Job, export growth
Direct jobs created from PEZA-approved investments also increased by 12.11 percent or 62,826 to 581,565 cumulative employed PEZA zone workers in the first two months of the year from 518,739 in January to February last year.
Exports generated from these investments also improved slightly by 0.73 percent to $7.064 billion in the first two months of 2016 from $7.013 billion in the same two months in 2015.
De Lima noted that there are three major foreign deals made with investors from Singapore, Thailand and Taiwan, but she declined to give details. She noted that investments from Japanese firms “continue to be strong.”
The PEZA director general highlighted some of the recent local investments, including a P2.92-billion Daichi Properties finance center in Bonifacio Global City; a P2.90-billion cyberpark by Araneta Properties; a P2.64-billion Cavite-based Santech IT Park by Property Company of Friends (ProFriends); two Eton Properties BPO towers in Makati and Diliman worth P1.19 billion; and the 30-hectare expansion of Enchanted Kingdom for P1.549 billion.
Other developments that are PEZA-accredited are a P1.286-billion medical tourism center of Primary Properties in Mandaue; two Cavite technoparks by Ecozone Development and Management Philippines worth P1.422 billion; a P800-million Altarraza BPO tower by Altarraza Prime Realty Corp.; a P652-million gamer tech hub by Nattural Quality Corp.; and the P578-million Avenir ecozone in Cebu City by Juanito King & Sons Inc.
De Lima said that there is an ongoing trend of investment interest in finished home appliances. She hopes that manufacturers of finished home appliances will locate in the Philippines, eyeing exports to Asia, the United States and Europe.
The PEZA four-month performance is on track to meet its 2016 target of 8-percent value growth of PEZA-approved investments, De Lima said.