The Philippine Economic Zone Authority (Peza) on Wednesday expressed optimism it will still meet its target of approving P200 billion to P250 billion in investments this year despite the low turnout in the first half.
Peza Director General Tereso Panga said his forecast was based on a number of factors, including the projection of economists and credit rating institutions that the country’s economy would fare better in the second half of 2024.
From January to June, Peza approved projects worth P45.8 billion, which is lower by 44 percent compared to the P80.59 billion recorded in the same period last year. Approved investments for the entire 2023 reached P175.70 billion in value, a 24.9-percent increase from the P140.7 billion recorded in 2022.
READ: Peza approvals hit P36.8B in May
“[We] anticipate more trade and investments coming in given the recent trilateral agreement among the United States, Japan and the Philippines,” Panga said in a statement.
He also cited prospects from the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, which the United States passed in 2022 appropriating billions of dollars into semiconductor and other scientific research.
Philippines, a long-time hub for semiconductor manufacturing, is considered a primary beneficiary. Panga also sees the Philippines benefiting from its accession to the Regional Comprehensive Economic Partnership (REP) and the forthcoming free trade agreement with South Korea.
READ: Peza chief says P2.845 billion in investments approved for March
He said these agreements would expand the Philippines’ sources of trade and investments.
He added the passage of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE) More bill “would stimulate big ticket investments and expand the number of locators companies that would register their projects with the Peza.” INQ