PEZA investment approvals hit PHP 309.6B, surpass 2026 target

PASAY CITY — The Philippine Economic Zone Authority (PEZA) has surpassed its full-year investment target after approving PHP 309.629 billion worth of projects in the first 10 months of 2026, with new investments in Iloilo and Cebu expected to contribute to job creation and regional economic growth.

The approved investments represent a 76.56% increase from PHP 175.365 billion recorded during the same period in 2025, exceeding the agency’s PHP 300-billion target with two months remaining in the year.

The investment surge signals growing business interest in Philippine economic zones, but its significance for Filipino workers and local enterprises will depend on how quickly these commitments translate into operating facilities, actual employment, export earnings, and opportunities for domestic suppliers.

For provinces such as Iloilo and Cebu, new economic zone investments could generate demand for local services, transportation, logistics, and other business activities, potentially spreading the benefits of economic growth beyond major metropolitan centers.

PEZA Director General Tereso O. Panga said the agency’s immediate priority is to convert approved investments into measurable economic gains.

“This is a significant milestone for PEZA and our country. Surpassing our ₱300-billion investment target ahead of year-end reflects the confidence investors continue to place in the Philippines. Our priority now is to sustain this momentum and help translate these investment commitments into actual operations, more exports, and high-value employment for Filipinos,” Panga said.

The latest approvals bring PEZA within PHP 2.271 billion of surpassing its all-time annual investment record of PHP 311.9 billion, established in 2012 during the administration of former President Benigno Aquino III.

PEZA expressed confidence that it could establish a new record before the end of 2026, citing continued inquiries and interest from prospective investors.

However, investment approvals represent planned capital expenditures rather than funds already spent in the economy, making actual project implementation an important measure of the agency’s performance.

From January to October, the PEZA board, chaired by Trade Secretary Cristina Roque, approved 240 new and expansion projects.

These projects are projected to generate USD 9.124 billion in exports and create 38,815 direct jobs once implemented.

The investments cover export manufacturing, information technology and business process management (IT-BPM), facilities, economic zone development, logistics, domestic-market enterprises, utilities, and tourism.

The diversity of these sectors reflects opportunities for the Philippines to attract businesses involved in both industrial production and services as companies assess new locations for investments and expansion.

Export manufacturing projects could strengthen the country’s participation in international supply chains, while IT-BPM investments could expand employment opportunities in technology-enabled and business support services.

Investments in logistics, utilities, and economic zone development could also improve the infrastructure supporting industrial operations and commercial activity.

Taiwan, the Netherlands, South Korea, Singapore, and Indonesia remained among the leading sources of foreign direct investment in Philippine economic zones.

The continued participation of these economies highlights the Philippines’ trade and investment relationships with Asian and European markets.

Panga said attracting larger investment commitments could strengthen the country’s competitiveness as international companies seek locations for production and export operations.

“Our investment performance is not measured by project count alone. These results show that the Philippines can capture a larger share of global investment as companies look for competitive production and export locations. By building on our international partnerships and improving the ease of doing business in our economic zones, we can attract investments that strengthen local supply chains, support technology transfer, and create more opportunities even for Filipino enterprises to participate in the economy,” Director General Panga said.

Beyond the direct employment generated by economic zone enterprises, new investments could create business opportunities for domestic manufacturers, contractors, transportation providers, food suppliers, and other service establishments.

The extent of these benefits will depend on how much of the investors’ procurement and operational requirements can be supplied by Philippine businesses.

For local micro, small and medium enterprises, participation in economic zone supply chains could provide access to larger customers and longer-term commercial relationships.

However, smaller suppliers may need to improve production capacity, product quality, financing, and compliance with industry requirements to secure contracts with multinational companies.

The agency’s October investment approvals also demonstrated the continuing role of regional economic centers in attracting business activity.

During the month, the PEZA board approved 18 new and expansion projects worth PHP 12.487 billion.

These projects are expected to generate USD 178.203 million in exports and create 5,484 direct jobs.

Of the 18 projects, 15 are located in Luzon, including six in the National Capital Region, eight in CALABARZON, and one in Central Luzon.

The remaining three projects are in the Visayas, with two in Cebu and one in Iloilo.

The presence of new investments in Iloilo and Cebu underscores the potential of regional centers to attract economic zone enterprises outside Metro Manila and its neighboring industrial provinces.

For Iloilo, additional economic zone investment could reinforce its position as a commercial and services center in Western Visayas.

The province and Iloilo City have attracted business activity in sectors such as IT-BPM, property development, logistics, and other services, supported by educational institutions and a growing pool of skilled workers.

New economic zone projects could create opportunities for local employment while generating additional demand for office space, industrial facilities, transportation, utilities, and supporting businesses.

Cebu, meanwhile, remains a major economic center in the Visayas, with established manufacturing, export, tourism, and business services industries.

The two approved projects in Cebu could complement these industries and support further economic activity in the province.

PEZA did not identify the companies, investment amounts, industry classifications, or projected employment associated with the individual Iloilo and Cebu projects in its announcement.

The agency also did not provide implementation schedules for the three Visayas projects.

These details will be important in assessing their potential contribution to local employment, infrastructure demand, and economic activity.

The geographic distribution of the October approvals nevertheless demonstrates how economic zones can serve as investment destinations in different parts of the country.

By attracting businesses to regional centers, economic zones can help generate demand for local suppliers, construction services, logistics facilities, and commercial establishments.

Such investments could also support efforts to create employment opportunities closer to workers’ home provinces.

PEZA operates under Republic Act No. 7916, or the Special Economic Zone Act of 1995, which provides the legal framework for developing and administering special economic zones in the Philippines.

Registered enterprises may qualify for fiscal and nonfiscal incentives under applicable investment laws and regulations, subject to eligibility and compliance requirements.

These incentives are intended to encourage investments, export production, employment generation, and regional development.

However, the economic value of investment incentives ultimately depends on whether participating enterprises generate sufficient employment, exports, and related economic activity to justify the government’s support.

Despite surpassing its investment target, PEZA acknowledged that businesses continue to face operating cost pressures and economic uncertainties.

These challenges can influence investment decisions, particularly for export-oriented enterprises competing with production facilities in other countries.

Investors must also consider the reliability and cost of electricity, availability of skilled workers, transportation infrastructure, regulatory procedures, and access to suppliers when deciding whether to establish or expand operations.

Panga said PEZA would continue coordinating with existing economic zone enterprises and prospective investors to resolve operational concerns and regulatory bottlenecks.

“While we have exceeded our target, we recognize that businesses continue to face cost pressures and economic uncertainties. PEZA remains committed to working closely with our locators and prospective investors to address operational concerns, streamline processes, and help them sustain and expand their presence in the country. Supporting our investors also means protecting existing jobs and creating opportunities for more Filipinos,” PEZA Director General Tereso O. Panga said.

The agency plans to strengthen investor assistance and interagency coordination to help approved projects proceed toward actual operations.

This includes supporting enterprises experiencing regulatory or operational difficulties that could delay construction, business expansion, or commercial activity.

For existing economic zone workers, responsive investor support could help protect employment by assisting companies in maintaining their Philippine operations.

For prospective employees, the conversion of approved investments into operating businesses could provide opportunities in manufacturing, IT-BPM, logistics, tourism, and other industries.

PEZA’s strong investment performance also comes as the Philippines seeks to improve its competitiveness in attracting foreign capital amid changes in global supply chains and international trade.

Companies diversifying their production networks may consider the Philippines alongside other Southeast Asian economies, making infrastructure quality, regulatory efficiency, and business operating costs important factors in investment decisions.

The country’s ability to sustain investment growth will therefore depend not only on attracting new commitments but also on retaining existing businesses and ensuring that approved projects can operate competitively.

With PHP 309.629 billion already approved, PEZA is approaching a 14-year investment record that could be surpassed before the year ends.