Investment pledges registered with the Philippine Economic Zone Authority (PEZA) may slow this year as escalating tensions in the Middle East disrupt stability and strain investor confidence.

“At this point, potential and existing investors are closely monitoring how the situation will unfold in the long term,” said PEZA Director General Tereso Panga during the Pandesal Forum on Monday, March 23.

Panga said investment flows could be affected as geopolitical dynamics, inflationary pressures, and shifts in global supply chains weigh on the country’s investment appeal. He noted that stability in both the economic and political environment is a crucial determinant for investors when deciding where to invest capital.

At present, there is little semblance of stability in the country—or in the broader global economy, for that matter—as rising global oil prices pose risks to logistics and supply chains.

“This will definitely impact on the viability of our export-oriented locators and investors,” said Panga.

However, within the country’s economic zones, which grant fiscal and non-fiscal incentives to locators, he said overall conditions and operations remain stable.

To provide additional safeguards, PEZA is recommending increased use of off-dock container yards and barge shipments to reduce logistics costs. It also urged the government to further streamline processing for imported goods, such as through nonstop service at the Bureau of Customs (BOC) in terms of cargo facilitation, even during weekends.

“While challenges such as potential logistics disruptions may arise if global tensions persist, PEZA remains confident in the Philippines’ long-term competitiveness,” Panga said.

As such, he said the investment promotion agency (IPA) will closely monitor global developments while remaining ready to recalibrate strategies and targets as needed.

“Our priority is to sustain investor confidence by ensuring that our policies remain responsive, adaptive, and aligned with global market conditions,” he said.

For the year, PEZA is targeting the approval of ₱300 billion worth of investment pledges. Panga said the agency remains bullish about this target, even as investment pledges for the first two months fell by 33 percent to ₱35.37 billion from ₱52.93 billion in the same period last year.