English
Philippines: Ecozone investment pledges fall 14% in 10 months
MANILA, Philippines — Investment commitments in economic zones dropped by 14 percent from January to October as the pandemic continues to dampen investor sentiment, the Philippine Economic Zone Authority (PEZA) said.
In a statement yesterday, the investment promotions agency said it approved P62.72 billion worth of investments for 215 projects as of end-October, down from P72.64 billion in the same period last year.
“The decline in investment pledges and projects in PEZA was felt more in 2021. This is because when the first quarantines began in the Philippines in March 2020, there were pending applications for investments and projects that were approved. Thus, 2020 performance didn’t immediately decrease,” PEZA director general Charito Plaza said.
Due to the strict lockdowns implemented last year, she said the approval of projects filed in early 2020 were delayed until mid to late last year.
“Business groups, entrepreneurs and exporters were on a wait-and-see mode and had lower risk appetite in their investments during the pandemic. Hence, the impact of the pandemic was really felt this year,” she said.
A large part of the investments for the period was for ecozone development, which reached P28.75 billion.
Investments for manufacturing amounted to P24.13 billion, while those for the information technology (IT) sector reached P6.47 billion.
The bulk of the investments are for Region 4 with P22.40 billion, followed by the National Capital Region with P12.25 billion and Region 7 with P9.76 billion.
Despite the pandemic affecting investor appetite, Plaza said PEZA is not letting up on efforts to entice firms to set up shop in the country.
“PEZA remained aggressive to attract both local and foreign investors even during the pandemic. We did not let this crisis hostage us. Rather, we created various opportunities to continue our mandate,” she said.
For existing investors, she said PEZA provided assistance and reprieves.
PEZA allowed COVID-related expenses as deductibles for enterprises availing themselves of the five percent gross income earned incentive, the inclusion of IT-business process outsourcing companies and economic frontline workers in the A4 vaccination priority group, and up to 90 percent work-from-home arrangements.
As of end-September, 90 percent of PEZA-registered companies are operating nationwide under various work arrangements, higher than the 87 percent in the same period last year.
“We will constantly perform our best to attract investors to the country. We still have two months left this year, and there’s still a lot to happen. Let’s continue to have a positive outlook as we unite in reviving our economy,” Plaza said.
Source: https://www.philstar.com/business/2021/11/12/2140608/ecozone-investment-pledges-fall-14-10-months