Ecozone investments up 37% in Jan-May

MANILA, Philippines - Approved investments in the country’s economic zones has risen 37 percent in the first five months of the year, as locators expand existing operations and start new projects.

Philippine Economic Zone Authority (PEZA) director general Lilia de Lima said approved investments in the country’s 306 economic zones rose to P101.476 billion from January to May, up 37.12 percent from the same period last year.

As of March, the value of exports has risen to  $10.327 billion in the first five months of the year, up 2.6 percent from the comparative period.

The number of workers in the country’s 306 economic zones has risen 14.06 percent to 1.069 million in March year-on-year.  

PEZA is targeting a 10 percent year-on-year increase in investments in the country’s economic zones this year.

In 2013, total investments approved by PEZA reached P276.126 billion, down 11 percent from P311.949 billion in 2012. Export earnings rose by 7.12 percent to  $42.872 billion last year from $40.023 billion in 2012. 

The total number of workers directly employed in PEZA zones rose 14.84 percent to 1.048 million in 2013 from 912,047 in the previous year.   

PEZA is an attached agency of the Department of Trade and Industry (DTI) that promotes investments by providing incentives to firms engaged in export-oriented processing with operations in special economic zones.

Other commercial activities that may qualify for registration include information technology service, tourism, medical tourism, agro-industrial export manufacturing, agro-industrial biofuel manufacturing, and logistics and warehousing services.

Incentives are also given to firms that invest in the development and operation of economic zones.

Seen as strong sectors for investments this year, according to De Lima are the electronics and semiconductor sectors (electronic parts, consumer electronics), transportation sector (auto parts, shipbuilding aerospace), information technology services, garments and bags, and agro-industry.