Upturn in investments is expected in 2023 at the Philippine Economic Zone Authority (PEZA) from a projected slower growth this year
This after first quarter registrations plunged 68 percent, attributed to jitters linked to the pandemic, the Ukraine-Russia war and the elections.
Growth of PEZA investments are in sync with GDP expansion historically, according to PEZA deputy director- general Tereso Panga.
This would place registrations at a modest 6 percent increase this year.
Panga said getting projects in ecozone development is also a drag due to the existing moratorium in Metro Manila.
PEZA investments in the first quarter of the year hit P8 billion from P25 billion in the same period in 2021.
Exports fell 29 percent to $10.58 billion from $15 billion a year ago.
In contrast last year when PEZA registered 57 projects, the agency only approved nine in the first quarter of which five are export enterprises, one is a facility enterprise and three are ecozone developers.
As of end March, jobs in ecozones stood at 1.8 million.
PEZA continues to lobby for status quo where registered business enterprises particularly information technology-business process management companies can continue to adopt the work-from-home and hybrid work models of up to 30 percent off-site.
PEZA director-general Charito Plaza said the agency has its own strengths as an investment promotions agency, in reaction to Trade Secretary Ramon Lopez’ pronouncement that expanding enterprises can register instead to the Board of Investments (BOI) so they can continue doing hybrid work with incentives.
Plaza said BOI is ideal for domestic enterprises and PEZA for export firms.
Being a one-stop shop, PEZA does away with individual dealings with other government agencies and local government units, allowing for faster processing, Plaza added. – Irma Isip
