The Philippine Economic Zone Authority (PEZA) is on track to hit its full-year target of ₱250-billion in investment pledges this year as investor confidence remains robust amid corruption issues in public works.

PEZA Director General Tereso Panga said during the agency’s board meeting last week that an additional ₱20 billion in investment pledges was approved for October.

These pledges, which eventually materialize into actual investments, cover the development of projects that would be built in the country’s economic zones (ecozone).

From January to September, the total of PEZA approvals amounts to about ₱170 billion, up 37 percent from ₱123.76 billion recorded in the same period last year.

The ₱170 billion amounts to 68 percent of the agency’s ₱250-billion target.

PEZA earlier set an “ambitious” target of ₱300 billion, but based on the pace of approvals, this could be out of reach this year.

“With maybe three or four board meetings to go, we're hopeful that we can realize more investments,” Panga said on the sidelines of the 2025 Philippine Semiconductor and Electronics Convention and Exhibition.

Panga said the upward trajectory of investments this year shows that sentiment in the country remains firm despite the corruption mess involving flood control projects.

“As we speak, it's all positive for PEZA when it comes to investments, exports, and jobs,” he said. “We don't feel that yet.”

As of end-September, Japan stood as the top source for investments approved by PEZA with ₱14.78 billion, followed by Cayman Islands (₱13.14 billion), South Korea (₱10.77 billion), China (₱6.32 billion), and the United States (₱6.11 billion).

Over the 10-month period, investment approvals by PEZA saw its most substantial slowdown during April to June.

The month of April, in particular, saw investments drop 69 percent to ₱4.58 billion from ₱15 billion in the same month last year.

The three-month slowdown coincided with the first announcement of reciprocal tariffs by the United States (US) against most of its trading partners. At that time, Philippine exports faced a 17 percent tariff.

With the official imposition of the tariffs in August, the Philippines was slapped with a 19 percent tax.

As it stands, Panga said the most substantial impact of the tariff was felt by companies in the electronics sector, particularly those who produce finished products.

“We have companies that are reducing their production for exports to the US because there's a huge drop in their demand for their products,” he said.

Nonetheless, Panga said optimism is still strong for PEZA as the 19-percent rate is among the lowest reciprocal tariffs imposed by the US.