PEZA investment pledges surge by 47% in first 2 months

Investment pledges registered with the Philippine Economic Zone Authority (PEZA) surged by 47 percent to P16.22 billion in the first two months of the year, from P11.04 billion in the same period last year, owing to the country’s improved business investment climate.

This growth in investment commitments is expected to be sustained until the end of 2012, due to the large number of prospects in the pipeline, particularly projects of Japanese firms that are coming to the Philippines to either relocate or expand their operations, according to PEZA director general Lilia de Lima.

“This is our banner year… Our best bet is still Japan (for investments). I’m very happy with our Japanese investors, they treat our people well, so we want to invite more Japanese investors into the country,” De Lima said on the sidelines of Toyota Motor Philippines Corp.’s 500,000-unit production milestone Thursday.

Last year, investments registered with PEZA rose by 41 percent to P289 billion, from the previous year’s pledges of P204 billion.

PEZA, however, is keeping its “12-12-12” target for now, meaning 12 percent growth in investments, employment and exports.

Growth targets may be changed later this year, she added.

Trade Secretary Gregory Domingo earlier said that more than half of the investors expected to come in this year are Japanese firms keen on pouring in “quite big investments” in manufacturing facilities.

While Domingo did not disclose investment figures, he noted that Japanese investors were looking for sites with land areas ranging between 20 hectares and 200 hectares.

The size, he said, suggests “sizeable manufacturing facilities.”

These investors, he said, were into various sectors including electronics and shipbuilding.

Domingo said the Philippines was getting noticed by potential investors because it was faring better than its neighbors.

Domingo explained that a good number of investors were veering away from the coastal areas in China where wages are relatively higher compared to, for example, the Philippines.

This uptrend in wages is expected to continue, he added, giving the Philippines a competitive edge.