PEZA secures PHP 45.5 billion in Q1

PASAY CITY — The Philippine Economic Zone Authority approved 78 new and expansion projects worth PHP 45.525 billion in the first quarter of 2026 following its March 30 board meeting, sustaining investment momentum despite global economic headwinds.

PEZA Director General Tereso O. Panga said the approvals reflected continued investor confidence in the country’s economic zones even as businesses worldwide grapple with higher energy costs, supply chain shifts, and geopolitical tensions.

“This performance reflects sustained investor confidence in the ecozones and in the Philippines as a competitive investment destination, even as global economic conditions remain volatile due to rising energy costs, supply chain adjustments, and geopolitical tensions,” Panga said.

From January to March 2026, PEZA approved 78 projects, up 18.18% from 66 in the same period last year.

Those projects are projected to generate USD 10.865 billion in exports and 8,496 direct jobs.

PEZA said the first-quarter numbers pointed to a more active investment pipeline and a continued shift toward higher-value, export-oriented activities even as total investment growth moved at what it described as a calibrated pace under changing global conditions.

Manufacturing accounted for the biggest share of first-quarter approvals with 30 projects, underscoring PEZA’s continued strength in export-oriented industrial activity.

Ecozone development came next with 16 projects, reflecting the agency’s parallel push to expand investment-ready sites and support future locator demand.

The information technology and business process management sector contributed 11 projects, while facilities-related investments added 10, pointing to continued demand for both core business operations and support infrastructure inside economic zones.

Logistics registered six projects, further reinforcing supply chain and distribution capacity across PEZA-administered areas.

Tourism had two approved projects, while utilities posted one, rounding out the sectoral mix for the quarter.

By geographic distribution, Luzon remained the dominant destination for approved projects with 67, highlighting the island’s role as the country’s main industrial and infrastructure corridor.

The Visayas recorded nine projects, showing steady investor activity in central Philippine growth areas.

Mindanao accounted for two projects, signaling an emerging, though still limited, investment presence in the south.

PEZA said the geographic spread supported its push for more balanced regional development while showing that investment activity remained concentrated in Luzon.

The agency said its investor base was led by South Korean, Indonesian, British Virgin Islands, Taiwanese, and Japanese firms.

PEZA added that 10 big-ticket projects worth more than PHP 36 billion anchored the first-quarter approvals, reflecting continued investor preference for large-scale, high-impact ventures tied to global production, supply chain requirements, and the ecozone development program.

For March 2026 alone, the PEZA Board approved 26 new and expansion projects worth PHP 10.159 billion.

Those March approvals are projected to generate USD 422.7 billion in exports and 3,447 direct jobs, according to PEZA.

PEZA said the number of approved projects in March was broadly steady year on year, but investment value rose 68.93% month on month.

Projected exports in March also surged 89.13% from the previous month, indicating what the agency described as a clear move toward higher-value, export-driven activities.

The concentration of capital was further highlighted by four big-ticket projects accounting for PHP 6.683 billion of total March approvals.

PEZA said those four projects cover ecozone development in Naga, solar cell manufacturing in Batangas, aircraft maintenance, repair, and overhaul in Pasay, and facilities services in Cavite.

Region IV-A, or CALABARZON, emerged as the leading investment hub in March with 14 approved projects, reinforcing its position as one of the country’s key industrial and manufacturing corridors.

The National Capital Region followed with six projects, reflecting continued investor interest in Metro Manila’s strategic role as a center for services, administration, and high-value business activity.

Region VII recorded three projects, indicating sustained investment activity in Central Visayas.

Regions III, V, and VI posted one project each, showing that PEZA approvals during the month also reached other growth areas outside the main investment centers.

PEZA said the March distribution showed sustained industrial activity across key growth corridors and reinforced the broader first-quarter performance through stronger export potential.

Panga said the agency was watching global developments closely as oil market pressures and supply chain disruptions could affect investment flows.

“Alongside the Philippine economic team led by DOF Secretary Frederick D. Go, DTI Secretary Cristina A. Roque, and other key agencies, we are closely monitoring global developments, particularly those affecting energy costs and supply chains, and their potential impact on investment flows,” he said.

He said PEZA still expects to meet its targets this year based on its current assessment.

“I’m still confident that we will be able to meet our targets for this year based on our current assessment. However, if the conflict in the Middle East continues, I certainly believe that there will be global adjustments in the investment decisions of global companies. We are ready for this and we expect it before it even happens. There are two kinds of investors: the first kind is the one that prepares for events like this; the other, wait for the results. I believe our type of investors are long-term and belong to the first kind,” Panga said.

He said PEZA’s experience through past crises supports his view that the country can weather another period of uncertainty.

“Looking back at our 30-year history in PEZA, we have seen the same crises—the so-called boom-and-bust cycle—that changed our investment landscape and ecozone environment and through each challenge, we have consistently demonstrated our ability to recover and grow. The Philippines remains well-positioned to navigate these challenges backed by our strong macroeconomic fundamentals and reform-driven policy environment,” Panga added.