The Philippine Economic Zone Authority (PEZA) signaled plans to lower this year’s ₱300-billion target for investment pledges amid a 22-percent drop in approvals in the first quarter, as the ongoing war in the Middle East dampens investment plans.

In a statement on Saturday, April 11, PEZA said it approved ₱45.53 billion worth of investments from January to March, lower than the ₱58.95 billion recorded in the same period last year.

Its investment pledges for the three-month period cover 78 new and expansion projects, up 18 percent from 66 projects in the first quarter of 2025.

These approved projects, which are expected to materialize into actual developments, are projected to generate $10.87 billion in export revenues and 8,469 jobs.

The manufacturing sector attracted the highest amount of investments in the first quarter, with 30 approved projects.

This was followed by ecozone development with 16 projects, information technology and business process management (IT-BPM) with 11, and facilities development with 10.

The largest foreign investment pledges as of end-March came from companies based in South Korea, Indonesia, British Virgin Islands, Taiwan, and Japan.

“This performance reflects sustained investor confidence in the ecozones and in the Philippines as a competitive investment destination, even as global economic conditions remain volatile due to rising energy costs, supply chain adjustments, and geopolitical tensions,” said PEZA Director General Tereso Panga.

As the Philippines faced the full brunt of rising costs brought about by the Middle East conflict in March, PEZA’s investment approvals were more than halved to ₱10.16 billion, compared to ₱22.51 billion in February.

Year-on-year, however, last month’s investment figures were nearly double the ₱6.01 billion in investment pledges recorded in March last year.

With this development, Panga said he remains confident that PEZA will be able to meet its investment targets for the year based on the investment promotion agency’s (IPA) current assessment of the situation.

“However, if the conflict in the Middle East continues, I certainly believe that there will be global adjustments in the investment decisions of global companies,” he said. “We are ready for this, and we expect it before it even happens.”

Panga said that throughout PEZA’s 30-year history, the IPA has encountered similar crises that have weakened investment sentiment in the country.

“Through each challenge, we have consistently demonstrated our ability to recover and grow,” he said.

Given its strong macroeconomic fundamentals and reform-driven policy environment, Panga said the Philippines remains well-positioned to navigate these challenges and encourage the entry of investments.