The Philippines’ economic zones are expected to rake in “more than nine percent” more investment pledges in 2013 compared to last year due to higher investor confidence and improved business conditions, Philippine Economic Zone Authority (Peza) director general Lilia de Lima told reporters.
“We are strongly pushing for manufacturing, and there are good prospects. Electronics still has potential,” she said. “We have several good deals because today conditions in the country are best for investors.”
De Lima declined to name specific companies in talks with Peza for possible investments, reinvestment or expansion, saying she did not want to preempt negotiations. She did say, however, that both Asian and Western investors are interested in putting up facilities in the Philippines.
“The Japanese are always there [among the prospects]. But there are also interested parties from the US and Europe,” de Lima said.
De Lima noted that investment pledges tend to surge in the second half of the year, as was the case in 2012. As such, Peza may revisit its targets around the third quarter to come up with an updated target for 2013.
Aside from aggressively marketing the Philippines as a manufacturing hub, Peza is also working on retaining existing large investors by addressing their concerns, including calls for a new power rate subsidy scheme for large ecozone locators.
De Lima said consultations with various stakeholders have been completed. “We are almost coming to a positive formula,” De Lima said.
Peza reported some P312 billion in approved commitments in 2012 from about P288 billion in 2011. Approved economic zone investments grew mostly due to reinvestments and expansion of electronics firms in the second half of the year, according to Peza.