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The Philippine Economic Zone Authority has approved P214.176 billion worth of investment projects in 2024, surpassing its P200-billion target for the year by 7.1% and 21.89% higher compared with the P175.709 billion approved in 2023
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In December 2024 alone, the PEZA Board approved 16 new and expansion projects, expected to generate P12.625 billion in investments, $782.438 million in exports, and create 1,113 direct jobs
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The 16 approved projects in December completed the 255 projects approved for the year, reflecting a 9.44% growth in project approvals as compared to 233 projects in 2023
The Philippine Economic Zone Authority (PEZA) approved P214.176 billion worth of investment projects in 2024, surpassing its P200-billion target for the year by 7.1% and 21.89% higher compared with the P175.709 billion approved in 2023.
In December 2024 alone, the PEZA Board approved 16 new and expansion projects, expected to generate P12.625 billion in investments, $782.438 million in exports, and create 1,113 direct jobs, the agency said in a statement.
The approved 16 ecozone projects comprise eight export manufacturing, one information technology-business process management (IT-BPM) project, three facilities development initiatives, two domestic market projects, and two ecozone developments.
One of these projects is based in Metro Manila while the rest are distributed across the CALABARZON, Central Luzon, and SOCCSKSARGEN regions.
The 16 approved projects in December completed the 255 projects approved for the year, reflecting a 9.44% growth in project approvals as compared to 233 projects in 2023.
These investments are projected to contribute over $4.656 billion in exports and generate more than 72,000 new direct jobs—a 16.35% increase in export value and a 78.82% surge in employment year-on-year.
These approved projects include 122 export manufacturing, 65 in IT-BPM, 27 in ecozone development, 18 facilities development, 12 domestic markets, nine logistics, and two utilities.
For 2024, among the top-performing sectors were manufacturing, IT services, and transportation.
Investments from key markets such as South Korea, Malaysia, Hong Kong, Thailand, and Germany also surged. South Korea emerged as PEZA’s top investor for the year, contributing P51.269 billion in investments.
Moreover, 16 economic zones worth P5.637 billion in investments were proclaimed this year.
PEZA said the newly-approved ecozones continue to be a cornerstone of its strategy to attract foreign direct investments (FDI) and foster industrial growth, in line with President Ferdinand Marcos Jr.’s goal to make the Philippines the premier investment destination in the region and accelerate countryside development through the ecozones.
In line with the Department of Trade and Industry’s (DTI) target countries, PEZA said it is also prioritizing attracting more South Korean companies to locate in the ecozones with the recent ratification of the South Korea-Philippines Free Trade Agreement (FTA).
READ: NEDA approves EO for PH-Korea FTA
Set to be effective by year-end, PEZA said the Philippines-South Korea FTA is poised to further boost South Korean investments in the country.
PEZA is gearing up to leverage on the agreement to attract more South Korean companies, particularly in priority sectors such as electric vehicles (EVs), advanced manufacturing, and sustainable energy solutions.
Ramping up domestic innovation and enhancing the ecosystem of EVs in the country, PEZA director general Tereso Panga said, “South Korea’s increasing investments reflect their confidence in the Philippines’ potential as a top destination in ecozone development and sustainable industries.”
“With the FTA in place, we anticipate more partnerships with South Korea that will further stimulate economic growth,” Panga added.
Among the latest EV-related investments is LCS Emon Commercial Corp, a domestic manufacturer with South Korean equity seeking to establish an EV assembly facility at the Lima Technology Center – Special Economic Zone in Batangas. The facility will produce and market electric jeepneys, mini-buses, and two- and three-wheeled EVs, fostering sustainability while bolstering auxiliary industries like EV maintenance and repair services.
Samsung Electro-Mechanics Philippines Corp. also joined the roster of new South Korean PEZA-registered projects approved this year for the production of multi-layer chip capacitors for the automotive sector using cutting-edge technology in its Laguna facility.
Another South Korean company is Littlefuse Phils, Inc. which will manufacture in Batangas electromechanical assemblies and harnesses, further strengthening the local supply chain with South Korean expertise.
Given the positive projections for the Philippines in the coming years, Panga expressed confidence in maintaining PEZA’s growth trajectory, forecasting a 10% increase in investments for 2025 or about P235 billion.
READ: PEZA eyes 9%-10% hike in investments next year
To do this, PEZA plans to focus on attracting investments in a wider range of sectors, with electronics continuing to play a key role in driving the country’s export portfolio. Other priority industries include EVs, smart manufacturing, data centers, food agro-processing, green ore mineral processing, renewable and alternative energy production, marine-based industries, and pharmaceutical ecozones.
The Trade department and PEZA are also confident in attracting more FDIs through a series of investment missions and joint effort engagements. PEZA said these initiatives aim to advance pivotal industries, including the pharmaceutical sector, while strengthening partnerships with academic institutions and integrating micro, small, and medium-sized enterprises into the ecozone value chain.
PEZA is also leveraging on the newly-enacted Republic Act (RA) No. 12066, or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE), which makes the Philippines more competitive in the ASEAN region given the most attractive tax and investment incentives offering.
PEZA said this bodes well with the administration’s bid to graduate the country to upper middle-income economy status by 2025 and position the Philippines as an investment hub in the region.
