Peza bullish despite drop in 10-mo pledges

The total value of investment pledges approved by the Philippine Economic Zone Authority (Peza) fell by 38.5 percent in the first 10 months of the year to P107 billion from the P174 billion a year ago.

Peza Director General Charito B. Plaza is, however, optimistic that the value of investment pledges that the agency may approve can hit as much as P500 billion in two to three years’ time, given the expected influx of big-ticket projects from countries like China, Russia, Malaysia and Japan. The establishment of new special economic zones is also expected to boost project approvals.

“By the end of the year, we would have already identified and we would be starting to develop these (new) special economic zones throughout the country so it will be easier for us to bring in investors who have been waiting where they can be located,” Plaza said on the sidelines of a kapihan forum on Monday.

Plaza explained that these expected projects were seen to be an offshoot of the state visits made by President Duterte last month and the different bilateral discussions held on the sidelines of the recently concluded Asia Pacific Economic Cooperation (Apec) meetings held in Peru.

From Japan alone for instance, the Philippines received offers for $19 billion worth of prospective projects across different sectors last month, while in China, Mr. Duterte secured some $24 billion worth of investment and credit line pledges.

Plaza added that there were currently 29 special economic zones due for the approval of and presidential proclamation by Mr. Duterte. These proposed ecozones were earlier approved by Peza and were already endorsed to the Office of the President.

“We expect to have the presidential proclamations by the end of the year so that we will have additional areas where investors can locate. We’re also expecting to approve hundreds more of ecozones (under the administration of Mr. Duterte),” Plaza said. “I’m looking forward to have special economic zones built all over the country. There are many investors wanting to invest here, looking for a place to locate.”

Under its new leadership, Peza is moving toward creating more industry-specific economic zones—such as for tourism and defense—to better cater to the requirements of both local and foreign investors.

Plaza earlier announced that Peza would be establishing industrial defense complexes in areas considered highly “vulnerable to attacks.” Such ecozones, which will house defense-related manufacturing firms, are meant to beef up the country’s military defense capabilities with the help of countries like Russia and China. These zones are targeted to be located in areas like Palawan because it faces the Spratlys and Zambales, which is near the contested Scarborough Shoal.