Peza expects approved investments to rise by 10% in 2025

Philippine Economic Zone Authority (Photo from PEZA/Facebook)

The Philippine Economic Zone Authority (PEZA) is projecting that the value of its approved investments next year will increase by around a tenth, banking on prospects that the manufacturing sector will continue to make the biggest contribution.

PEZA director General Tereso Panga said they are expecting to end this year with P215 billion—its highest in seven years—meaning that projections for 2025 will hover around P235 billion.

“We are predominantly into manufacturing. So that’s 32 percent of our investments. Then you have (information technology), that’s another 12 percent to 15 percent. So, these are the traditional winners for PEZA in the ecozones,” Panga told reporters during a press briefing at their head office in Pasay.

READ: Peza poised to clear P205-B investments this year

The value of PEZA-approved investments reached P175.70 billion in 2023, P140.7 billion in 2022, P69.30 billion in 2021, P95.03 billion in 2020, P117.54 billion in 2019, and P140.2 billion in 2018.

Investments registered under PEZA’s economic zones enjoy some fiscal and non-fiscal incentives.

Fiscal incentives for exporters include an income tax holiday of 4 to 7 years, as well as a special corporate income tax rate of 5 percent or enhanced deductions for 10 years.

Meanwhile, domestic market-focused enterprises are given an income tax holiday of 4 to 7 years or enhanced deductions for 5 years.

Additionally, the PEZA official also said they are looking to diversify the investments they are attracting and the products that are being produced in their economic hubs by next year.

“For instance, we are closely monitoring the pronouncements of (US) president Trump on imposing higher tariffs on products coming from China, and I heard, even products originating from Vietnam. So, we see an opportunity here for the Philippines,” he said.

Panga said these developments present an opportunity for the Philippines to be an alternative site for companies that will be affected by the policy of the US president.

To further attract companies to locate in PEZA economic zones, Panga said they would like to see the pending legislation that will extend land lease periods for foreign investors to 99 years from the current 75 years.

“This will be a welcome development for investors because they don’t have to invest upfront in buying (land.) And as you know, the prices of land in the Philippines are increasing, so this will provide some flexibility for them,” he said.

To date, there are at least 143 operating economic zones under PEZA across the country, the majority of which are in Luzon.