The Philippine Economic Zone Authority has approved a total of P57.048 billion in committed investments in the January-November period this year or 11 percent lower than the P64.463 billion approvals in the same period last year.
PEZA OIC Deputy Director General Tereso O. Panga noted that the decline in the January-November period this year was a significant improvement from the 28 percent negative growth two months ago.
“From a high of negative 28 percent decline in investments two months ago, were able to narrow the gap to negative 11.5 percent this Jan-Nov 2022 versus the same period last year,” said Panga.
With two more board meetings scheduled this month, Panga said “We are confident
This makes the agency closer to exceeding its P69 billion approvals in 2021, Aleem Sidiqui Guiapal, PEZA deputy director-general, said. Guiapal also expressed confidence of achieving the agency’s growth target of five to six percent this year over last year’s investment haul with more big-ticket items set for board approval on Thursday, Dec. 15.
PEZA data showed there were 181 projects that registered with the agency in the first eleven months this year. These projects are expected to generate 33,308 jobs and exports potential of $54.239 billion.
As of October this year, PEZA has total 1.85 million employment in various economic zones. Current locators have exported $54 billion worth of products for the year ending October.
Panga, who attended the investment mission in Osaka and Okayama, Japan last Dec. 7-9 reported that of the total 11-month investment pledges, Japanese investors accounted for P 17.755 billion or 31.12 percent. Top big-ticket projects coming from Shin-etsu Magnetics Philippines Inc., Cebu Mitsumi Inc., TDK Philippines Corporation, Tamiya (Philippines) Inc., and P.IMES Corp. (Philippine International Manufacturing and Engineering Services Corp).
In partnership with the Okayama International Business Association (OIBA) and the Philippine Trade and Investment Center (PTIC) in Osaka, Panga was able to engage around 30,000 Japanese SMEs to invest in the Philippines that will be vital in boosting the Philippines’ manufacturing supply chain and industrial ecosystem.
PEZA also engaged in several business-to-business and government-to-government meetings during the mission to strengthen its investment promotion initiatives and promote the Philippines as the best choice for investors especially in Southeast Asia.
PEZA and PTIC Osaka met with the Osaka Chamber of Commerce and Industry (OCCI), Osaka Business Development Agency (OBDA), Osaka Prefectural Government (OPG), and the Okayama International Business Association (OIBA) to explore areas for investment promotion collaborations and in strengthening the Philippine-Japan partnership in various areas such as the World Expo 2025 to be held in Kansai, Osaka, Japan.
During the OIBA event, the PEZA delegation also met with Junca Holdings to discuss their upcoming bio-technology activity to be registered with PEZA. Likewise, partner companies of Junca Holdings such as Synergy and Global Network Japan are also exploring the possibility of putting up a tourism economic zone and an anaerobic / waste-to-energy water treatment plant in the Philippines through PEZA.
Moreover, Shibutani Shoten Corporation, a manufacturer of car seat, arm rest, and headrest covers for big car companies such as Mitsubishi and Mazda, met with PEZA to discuss its plans of putting up a company in the Philippines to support its employment and training program for Filipino workers and expand its brand to the international market.
In terms of expansion, Marukame Trading Co., Ltd. seeks to hire 100 additional employees to their Philippine company, Marukame Fashion Cebu Inc., a 100 percent export-manufacturer of high-end and global apparel brands located in Mactan Economic Zone.
VALTES Co., Ltd. is also looking at expanding the operations of VALTES Advanced Technology Inc., a PEZA-registered IT company into software design and development, to cater to their plans of employing additional 100 software engineers.
Meanwhile, Nakashima Propeller Co., Ltd., a global industry leader in the manufacture of marine equipment such as sea vessel propellers, rudders, and shafts, is planning to bring in new technology and incorporating innovation to its plants worldwide, particularly in its facility in the Cavite Economic Zone.
Panga updated Japanese investors on the cost of doing business in the Philippines and the new tax regime under the CREATE Law during the meeting with Nakashima Propeller Co., Ltd. last 09 December 2022
Moreover, Inabata Philippines Inc., a leading ecozone logistics provider, is looking at expand its warehouse footprint in the next 2 years to cater to its client ecozone locators nationwide.
Showa Spring Co. Ltd., with a PEZA-registered export manufacturing enterprise in Mactan Economic Zone, is also scouting a separate location in the CALABARZON area for the expansion project of its operations in the Philippines.
“With Japan’s SMEs as the lifeblood of this country’s massive economy, comprising 99.7% of all businesses, we can take advantage of these SMEs by putting up operations in the Philippines, help complete the supply chain, empower our own SMEs, and boost the country’s industrial ecosystem,” said Panga.
This mission is in preparation also for PBBM's state visit to Japan in February 2023, which will coincide with the celebration of Japan+ASEAN 50th year of partnership. Meanwhile, a group of Okayama business delegation will visit the Philippines by first quarter next year to explore investment opportunities in the ecozones.