The Philippine Economic Zone Authority (PEZA) has exceeded its targets for this year. The achievement of the target was aided by outbound investment missions, that led to P761 billion in investment leads for the country PEZA reported that 2023 Investments increased by 24.88%, reaching P175.7 billion. The number of projects grew by 20%, reaching 233 from 194 in the previous year. Of the 233, 116 were projects in exports, 42 were in information technology, 30 in Eco zone facilities, 19 in Eco zone developments, 18 in Eco zone logistics, six in the domestic market, and two in Eco zone utilities. <\/p>\n\n\n\n
The growth was driven by increased investments primarily from South Korea. Other key contributors were Taiwan, China, Australia, and the EU.
In terms of total investments, the Japanese continued to be the top PEZA investors as it accounted for 27.3% of the approved investments, followed by Filipinos with a 23% share.<\/p>\n\n\n\n
Our View: <\/strong>The PEZA is a key player in the economic growth and development of the Philippines. Going into 2024, it is confident that the expansion in investments will supplement the growth in consumer spending and increase fiscal spending. The PEZA sees continued growth in the number of projects, recognition of the spill-over of good prospects, and a recovery in exports. <\/p>\n\n\n\n 2024 will start on a positive note as the PEZA is anticipating the registration of two significant investments with the agency in January. Investors appear to like the Philippines as 60% of project approvals are reinvestments, reflecting the satisfaction of investors with their ventures in the Philippines and the likelihood of continued expansion.<\/p>\n\n\n\n The long term target of the PEZA is P300 billion in foreign direct investments and over P250 billion by 2024. The higher investments will have a multiplier effect thru jobs creation. A total 40,527 full-time jobs were created in 2023. For next year, a potential 80,000 to 100,000 new jobs can be created.<\/p>\n\n\n\n