The Philippine Economic Zone Authority (PEZA) aims to increase investment registrations in the country by at least 10 percent in 2025 from the current year by diversifying into new technologies and tapping new markets.
The country has also set a gameplan of topping its record level of total investment registrations reached in 2012.
PEZA estimates that by the end of 2024, investment registrations would have reached P235 billion, with P13 billion expected to be approved in its board meeting on Tuesday. Next year, the agency expects the level to hit at least P250 billion.
“We are going to diversify to non-traditional markets and emerging technologies in manufacturing,” PEZA director-general Tereso Panga told reporters in a briefing on Monday.
The eventual goal is for the country to become a serious contender in foreign direct investments (FDIs) in Southeast Asia. The gameplan is to breach the highest investment registration of P311.9 billion recorded in 2012, he said.
“Winning industries like electronics, IT-BPM (information technology-business process management) and major sources of foreign direct investments like Japan and the US will continue to drive investments in 2025,” the PEZA chief said.
“As soon as we breach that, we will be a serious FDI (foreign direct investments) contender in Southeast Asia,” Panga added.
The government agency is tasked to assist, register, grant incentives and facilitate the business operations of investors in export-oriented manufacturing and service facilities within special economic zones.
“There are bright spots despite the global disruption as Asia-Pacific is more vibrant. That is good enough to attract investments from the European Union and the US and make the Philippines as their gateway to the region,” Panga said.
Now that the agency can register domestic-oriented companies servicing PEZA locators, the Philippines expects more investments from local companies, as it catches up with its Asean neighbors in attracting FDIs. Asean is the Association of Southeast Asian Nations.
“We cannot be totally reliant on FDIs,” Panga said.
For the first time, countries like Bahrain, Africa, Russia, among other non-traditional markets have shown interest in Philippine special economic zones, the agency said.
Other major FDI sources for the Philippines are South Korea, China and Taiwan.
Panga said PEZA will leverage on the country’s free trade agreements (FTAs), especially with South Korea — set to begin in 2025.
The Philippines has existing FTAs with Asean, Asean trading partners (Australia, New Zealand, China, Japan, Korea and India),
Japan, and the European Free Trade Area. It is also a signatory to the Regional Comprehensive Economic Partnership, an FTA with 15 Asia-Pacific countries.
PEZA has a healthy pipeline of investments that would materialize in 2025, mostly in companies involved in nascent technologies that are looking for a viable alternative to China.
These projects include electric vehicle battery, smart manufacturing, data centers, green ores or mineral processing, integrated circuit design and electronic manufacturing services.
PEZA is also looking at prospective investors in the next wave of technologies such as biopolymers for producers of biodegradable plastics, capacitors, silicon carbide for makers of electric vehicle batteries, solar concentrator, and marine-based ecozone.
