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The Philippine Economic Zone Authority is on track to meet its P250 billion investment approvals target for 2025 despite investor concerns over US tariffs and domestic corruption issues
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The agency is optimistic about reaching its P250B full-year target, with an ambitious ceiling of P300 billion
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October alone saw P20 billion in new investment approvals
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PEZA director general Tereso Panga said the agency has not yet seen any adverse impact on investor confidence from corruption allegations in government flood control projects
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Planned US tariff on semiconductor imports poses a potential challenge to future growth
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PEZA approved 48 EMS-SMS projects worth P23 billion this year
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Semiconductor and Electronics Industries in the Philippines Foundation Inc. expects flat or modest growth in electronics exports this year, after a 6% decline in 2024 to $42.74 billion
The Philippine Economic Zone Authority (PEZA) is on track to meet its P250 billion investment approvals target for 2025 despite investor concerns over US tariffs and local corruption issues.
“We’re hopeful because we’re targeting, our conservative [goal] is P250 billion. But the ambitious target is P300 billion,” PEZA director general Tereso Panga told reporters on the sidelines of the 20th Philippine Semiconductor and Electronics Convention and Exhibition.
“With maybe three or four board meetings to go, we’re hopeful that we can realize more investments, register more investments,” he said.
As of end-October, PEZA-approved investments surpassed P170 billion, including several large-scale projects. For October alone, the agency approved approximately P20 billion in new investments.
READ: Japanese firms drive PEZA’s P154.7B investment performance
Panga said investor sentiment remains strong, noting that reports of corruption in government flood control projects have not yet affected foreign or local investment flows.
“As we speak, it’s all positive for PEZA when it comes to investments, exports, and jobs. And investments have been going up, upward trajectory. So, we don’t feel that yet,” he said.
However, Panga expressed concern over the US government’s planned tariff on semiconductor imports, which could disrupt supply chains and affect the Philippines’ top export industry.
He said PEZA remains optimistic that semiconductors will stay exempt from US duties, pointing out that the country has built a comprehensive Electronic Manufacturing Services-Semiconductor Manufacturing Services (EMS-SMS) ecosystem within its ecozones.
“We have established an EMS-SMS ecosystem that supports the entire value chain from designing and prototyping to assembly, packaging, testing, and global distribution,” Panga said. “This robust network has positioned the Philippines as a competitive hub for high-value electronics production, driving innovation, job creation, and export growth in the sector.”
The PEZA chief said the government continues to pursue active engagement with the American government to secure better trade terms for Philippine exports, particularly in agriculture and other critical product sectors, amid the evolving global tariff environment.
“(Meantime), it’s really active negotiation and engagement with the US government,” said Panga. “I’m sure they’re [Department of Trade and Industry] still negotiating how we can lower the rates on other critical product exports to the US, like agricultural exports.”
Panga added that investment activity remains strong in areas covered by the Luzon Economic Corridor, noting increased investor interest in Clark, Pampanga and neighboring Tarlac.
“We’re seeing more investments going to the Luzon Growth Corridor, especially in Pampanga, toward the south area, Clark, and even Tarlac. That’s part of the promotion of the Luzon Economic Corridor,” he said.
READ: 15 more projects for Luzon Economic Corridor proposed
Looking ahead, Panga said PEZA expects a continued rise in investments in 2026, supported by sustained economic growth.
“We’re still anticipating an increase, more so for 2026,” he said. “We’re looking at the ADB (Asian Development Bank) forecast because the growth forecast for the Philippines is still an increase from 5.6 to 5.7 percent. Historically, whenever we have high GDP (gross domestic product) growth, that’s when we also attract a high level of investments.”
Meanwhile, Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) President Dan Lachica said the electronics sector’s investment figures “could have been bigger if not for the uncertainty of the geopolitical wars and the US tariff.”
He noted that while electronics firms are looking to diversify into the European Union and Asian markets, doing so takes time.
“For electronics, they have to go through a long qualification and certification process for the facility and the product,” Lachica explained to reporters.
READ: PH, EU on track to seal free trade pact by 2027
He added that corruption concerns could weigh on investor sentiment and make some companies reconsider expansion plans in the Philippines. SEIPI’s board will meet next month to review its growth projection for the year.
The group expects flat or modest growth in electronics exports this year, following a 6% decline in 2024 to $42.74 billion from $45.65 billion in 2023.
READ: PH international trade grew 9.2% in H1 2025
