Even as it diversifies sources of investments and markets for export, the Philippine Economic Zone Authority (PEZA) said Japan would continue to be the agency’s number one source of investments.
Tereso Panga, director-general of PEZA said the agency sees a 20-percent growth in investments from Japan this year to P70 billion to P80 billion. Investments from Japan in 2023 surged 194 percent to P52.2 billion from P17.7 billion in 2022.
Acknowledging the slowdown in the global electronics market, PEZA will also be more aggressive in promoting the Philippines to global investors in a wider range of sectors, according to Panga.
“We’ve been trying to diversify our export products and investments so while we anticipate a flat growth in electronics, we’re looking at EV (electric vehicles) as a strong potential for investments as well as exports into agriculture and IT (information technology) which is still bullish at 10 to 15 growth,” Panga in an interview on ANC yesterday said
PEZA hopes to attract investments in electronics and high technology products and services at the ongoing Consumer Electronics Show in Las Vegas to make the local industry’s presence felt in the US’ biggest electronics event.
“We are aware of the flat growth being projected by the semiconductor industry in the Philippines. That’s the global industry situation, but we are preparing for the upturn in 2025. So part of our preparations is to aggressively reach out to companies in EMS (electronics manufacturing services), SMS (production of electronics devices’ semiconductors and components — from design to assembly) not just in the US but even in Japan, and other sources of FDIs (foreign direct investments). In this particular mission, (we are looking at) advanced manufacturing as well as EV and mostly AI-driven investments,” Panga said.
PEZA is eyeing P250 billion in investments this year from P140 billion in 2023, a 25 percent increase from 2022 and surpassing 10 percent target for the year.
“We’re looking at the non- traditional sources of investments and exports. With our accession into RCEP (Regional Comprehensive Economic Cooperation), we’re looking at partnering with Australia Taiwan, Canada. The new FTA (free trade agreement) with South Korea to trigger also investments from that country,” Panga said.
But Panga said the Japanese continues to be PEZA’s number one investor “through thick and thin and for the long haul,” contributing 27 percent of total PEZA investments last year.
To foster more investments from Japan, PEZA is set to sign a memorandum of agreement with Sumitomo Mitsui Banking Corp. and its local partner Rizal Commercial Banking Corp. to promote the Philippines to Japanese investors through inbound and outbound missions and networking with the banks’ valued clients in the Japanese chambers.
This collaboration will also promote access to financial services, which the banks can offer to support the operations and expansion of existing Japanese locator companies.
