Ecozone investments up 263%

The Philippine Economic Zone Authority (PEZA) reported yesterday that investments in the country’s special economic zones surged by 263 percent to P3.09 billion in the first two months of the year from only P850 million in the same period last year.

For February alone, PEZA-registered investments hit P1.247 billion or a dramatic 754-percent expansion from a meager P146 million recorded in February last year.

PEZA said the sharp rise in February investment was due mainly to heavy capital flows to the information technology (IT) sector which at P1.11 billion accounted for nearly 90 percent of total investments during that month.

Trade and Industry Secretary Manuel Roxas II said the sharp rise in IT investments this year is a proof that Philippine IT investment missions abroad are beginning to bear fruit.

"The IT investments would give the economy a much needed boost," he said, adding that "the rise in IT investments show that foreign firms have taken a hard look at building businesses in the region and are now making strategic decisions to partner with us in the IT business."

The increase in IT investments, Roxas further said, strengthens the country’s leadership in the IT field and ensures additional employment opportunities.

Based on PEZA data, the three biggest IT investments during the two month period were made by Convergys Philippines Services Corp. (CSPC); RHM Teleservices Asia Pacific Inc.-Phil Branch (RTAPIPB); and Lexmark Research and Development Corp. (LRDC).

Convergys, a 99.9-percent American firm, is investing P553.18 million to engage in IT-enabled services which include business processing outsourcing and call center. It is expected to generate annual export sales of $19.91 million with employment seen for 1,875 workers.

RTAPIPB, a wholly-owned US firm, will engage in inbound and outbound call center services in Eastwood City Cyberpark, Libis, Quezon City. The P507- million call center project will directly employ 768 workers and generate annual export sales of $9.3 million. Swiss-owned Lexmark will infuse P49.40 million in the Mactan Economic Zone II to expand its engineering design and software development services. Lexmark’s venture is expected to generate employment for 95 workers.