DESPITE the decline in investment registrations in the first half of 2024, the Philippine Economic Zone Authority (PEZA) remains hopeful it will achieve its goal of generating P200 billion to P250 billion worth of projects this year.
Meanwhile, PEZA said Tarlac joins Bulacan as center for pharmaceutical manufacturing and research and development (R&D) in the Philippines.
Tereso Panga, PEZA director-general, said the agency is hopeful of hitting the agency’s investment goal as it is poised to facilitate big- ticket projects of prospective investors, both local and foreign. He did not elaborate.
PEZA is also banking on projections of economists and credit rating institutions the economy will fare better in the second half of the year.
Panga also cited government’s own projection of a 6 to 7 percent GDP growth by yearend, which is the highest among Asean.
“In addition, we anticipate more trade and investments coming in given the recent trilateral agreement among US, Japan and the Philippines (on the Luzon Economic Corridor) and prospects from the US CHIPS and Science Act that count the Philippines as a primary beneficiary of these commitments,” Panga said.
He said the Philippines is also benefitting from its accession to the Regional Comprehensive Economic Partnership and will gain from the forthcoming free trade agreement with South Korea, by expanding sources of trade and investments.
Panga said the early passage of Corporate Recovery and Tax Incentives for Enterprises (CREATE)) CREATE More (Maximize Opportunities for Reinvigorating the Economy), despite the uncertainties arising from the upcoming US presidential elections, should stimulate particularly big ticket investors and expanding locators to register their projects with PEZA in preparation for the upturn in the economy.
PEZA also said the global electronics industry is expected to recover by next year.
PEZA investments in the first half fell 43 percent to P45.48 billion investments from P80.56 billion approvals in the same period in 2023.
That is less than one-fourth of the low end of the target of P200 billion this year.
Meanwhile, PEZA said President Ferdinand Marcos Jr. has proclaimed last July 4 Victoria Industrial Park, a 29.77-hectare property in Barangay Baculong, Victoria, Tarlac as a special economic zone.
“With the new pharma zone, we hope to attract new pharma-related investments as well as expanding locators constituting as a cluster. We prioritize those into R&D and manufacturers that will engage in active pharmaceutical ingredients (APIs), excipients, packaging to complement our existing capability. The objective is to complete the supply chain to allow for local manufacturing of essential medicines and medical devices including health case services-making them more affordable and accessible to ordinary Filipino,” said Panga.
PEZA previously registered First Bulacan Business Park (FBBP) which is seen to host medical R&D for the manufacturing of innovative, over-the-counter and generic drug products, medical instruments/equipment, and pharma cold chain. FBBP is adjacent to the First Bulacan Industrial City or the Pharma City of the North, which is home to eight pharma-related firms.
Panga said PEZA is in talks with the Food and Drug Administration (FDA) in developing guidelines for registering pharmaceutical ecozones and to improve the regulatory and facilitation environment for PEZA-registered business enterprises that will engage in local manufacturing of pharmaceutical products and medical devices.
He said the PEZA guidelines will govern the country’s establishment and registration of pharma zones.
PEZA and FDA will also revise a decade-old memorandum of agreement for the prompt facilitation of PEZA locators’ applications for permits, licenses, and certifications to be able to attract more pharma-related investments, particularly in the manufacturing of drugs, APIs, and medical devices and equipment, including the conduct of clinical trials and R&D activities.
