PEZA investments up 7.9% as of Aug

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    The Philippine Economic Zone Authority (PEZA) PEZA continues to attract investments despite the uncertainties brought about by the tax reform proposals and the suspension on new ecozones.

    Investments registered by the agency  grew 7.9 percent in the first eight months of the year to P83.5 billion from P77.4 billion in the same period in 2018 despite

    In a report, PEZA said it registered 374 projects, both new and expansion,  in January to August, from 351 a year ago, up 6.55 percent.

    Exports to be generated by these companies once operational are estimated to amount to $3.19 billion, slightly higher than the $3.11 billion to be generated by those registered last year.

    Investments in information technology projects, however,
    dropped 19.59 percent dampened by the combined effects of looming changes in the incentives as well as the recent order halting approvals of new ecozones in Metro Manila.

    The PEZA report showed IT investments in January to August stood at P9.16 billion from P11.36 billion in the same period in 2018.

    The number of projects was 6 percent lower, at 111 from 118 a year ago.

    As a result, these IT projects will generate lower exports and employment once operational.

    Based on the companies’ submissions, the IT investments registered so far this year will generate $487 million, 33 percent lower compared to the $733 million to be generated by projects registered last year.

    Jobs will be 7 percent lower at 31,964 versus 34,532 a year ago.

    In August alone, PEZA approved 51 projects valued at P9 billion.

    In the eight-month period, local investments led all approvals at P49.42 billion, an increase of 34 percent from P36.78 billion a year ago.

    But foreign investments were down 16 percent, to P34 billion from P36.78 billion in 2018. Japan was the top country source with P13 billion, up 8 percent from P12 billion a year ago.

    By sector, real estate activities pushed approvals by 18 percent to P49 billion from P41.62 billion last year.

    The sector was pushed by the P8-billion project of Capitol Commons Corp. whose 21-storey mixed use building known as GSC Phase 1 in San Juan was declared special ecozone/IT center.

    Other ecozone projects are the P4.5 billion additional IT building of Megaworld Corp., known as Worldwide Plaza in Bonifacio Global City and the P3.2-billion Cyber Park Tower 3 of Araneta Center nc., in Cubao.