PEZA Investment Approvals Surge to PHP 52.93 Billion in Early 2025

The Philippine Economic Zone Authority (PEZA) has reported a significant increase in investment approvals for the first two months of 2025, totaling PHP 52.93 billion.

The latest figures mark a 337.58% rise compared to the PHP 12.1 billion recorded during the same period in 2024.

PEZA Director General Tereso O. Panga attributed this growth to the agency’s commitment to fostering various sectors and driving economic progress.

“PEZA’s rising investments reflect its dedication to supporting various sectors and propelling the country’s economic progress,” Panga said.

He also highlighted the attraction of projects from priority industries, including emerging technologies in the electronics manufacturing services and semiconductor manufacturing services sectors, as well as strategic collaborations with the pharmaceutical industry

Trade Secretary and PEZA Board Chairman Cristina Aldeguer-Roque emphasized the impact of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act on this performance.

She noted, “The CREATE MORE Act is a game changer in the entry of foreign direct investments into the country.”

Aldeguer-Roque explained that the Act encourages more international investors to come, given the longer set of incentives being offered.

The CREATE MORE Act, signed into law on November 11, 2024, aims to enhance the Philippines’ tax incentives regime, making it more globally competitive and investment-friendly.

The law introduces a 20% corporate income tax rate for registered business enterprises under the Enhanced Deductions Regime, effectively reducing overall tax liabilities while providing additional deductions for qualifying expenses.

In the January to February 2025 period, PEZA approved 39 new and expansion projects, a 39.29% increase from the previous year. These projects are expected to generate 11,063 direct jobs for Filipinos, reflecting a 209.02% surge in employment opportunities.

Notably, there was a significant rise in investments from domestic market enterprises (DMEs), contributing PHP 37.97 billion, or 71% of the total approved investments for the period.

Since 2024, PEZA has approved 15 DME projects, injecting more than PHP 130 billion in investments.

Three of these projects are expected to benefit from extended incentives due to their investments exceeding PHP 15 billion.

During the PEZA Board meeting on February 20, 2025, 26 new and expansion projects were approved, anticipated to attract PHP 22.78 billion in investments. These projects are projected to generate USD 241.79 million in exports and create 7,793 direct jobs.

The approved projects span various industries, including nine export manufacturing ventures, eight IT-BPM projects, three domestic market projects, two facilities development initiatives, and four ecozone developments.

These investments are strategically distributed across regions such as Metro Manila, CALABARZON, Central Luzon, Central and Western Visayas, Ilocos Region, and Davao Region, aiming to drive regional competitiveness and development.

Among the significant ventures are two major projects set to generate a combined PHP 15.99 billion in investments in Tarlac and Batangas.

One notable project is a South Korean ecozone development valued at PHP 10.45 billion. With the Philippines-South Korea Free Trade Agreement now in effect, PEZA is collaborating with the Bases Conversion and Development Authority (BCDA) to create this multifaceted ecozone.

The development will accommodate multiple sectors, including manufacturing, agro-industrial, tourism, and information technology, further enhancing economic opportunities and sectoral development.

As investment approvals continue to soar, PEZA remains at the forefront of positioning the Philippines as a premier business hub in the region.

The agency reaffirms its dedication to driving economic resilience and industrial competitiveness through strategic partnerships, policy enhancements, and investor-friendly initiatives.

“This remarkable upswing reflects our continuous efforts through various foreign investment missions, with more initiatives from diverse industries planned for the rest of the year,” DG Panga said.