Investment pledges registered with the Philippine Economic Zone Authority (PEZA) dropped by 23.32 percent in the first five months this year to P36.827 billion from P48.027 billion in the same period last year, data showed. 

In a statement, PEZA said that it registered 95 new and expansion projects from January to May 2024. Once operational, these investments are expected to generate more than $1 billion in exports. The projects also have projected employment of 19,000 in direct employment or 62.59 percent higher than the jobs creation for investments registered in the same period last year. 

PEZA Director General Tereso O. Panga in a report to Trade and Industry Secretary Alfredo Pascual, who is chairman of the agency, noted of the continuing favorable business climate and economic potential. 

Despite the decline in investment approvals in the January-May period, Panga expressed confidence of a turnaround in the second half of the year with more projects in the pipeline.

"The rise in the number of approved projects emphasizes PEZA's pivotal role in catalyzing investment inflow and fostering sustainable employment across various sectors," remarked Panga. 

“The direct employment flourished significantly as compared to the same period last year, registering a remarkable surge of 62.59 percent, reflects PEZA's commitment to generating meaningful employment opportunities for Filipinos,” he added. 

With the continued investments inflow, Panga said that PEZA is positive that the Philippine economy is still poised for substantial growth in the coming years. 

The approved projects were driven by manufacturing and IT-BPM sectors, thus enhancing the country's competitive edge in the global market. 

In particular, PEZA reported that the first two months this year already hit P14.95 billion. Moreover, the consistent rise in employment rates also suggests a positive trajectory for consumer spending and economic stability, which in turn may attract further foreign direct investments. 

For the month of May alone, Panga said that the PEZA Board approved 22 new and expansion projects expected to bring in P6.872 billion worth of investments. These projects are anticipated to generate $100.806 million in exports and create 4,616 direct employments. 

The approvals reflect an increase of 10 percent in new and expansion projects from 20 approved in May 2023, and a 3.04 percent  increase in direct employment from 4,438 recorded in the same month last year. Diving deeper into the specifics, these 22 projects encompass various industries, with 19 locator companies and 3 ecozone developers. 

Export manufacturing takes the lion's share with ten projects, followed closely by nine in IT-BPM, two  in domestic markets, and one focusing on facilities development.  For this Board, one Japanese enterprise registered P3.9 billion big-ticket project into the manufacturing of semi-conductor devices and other electronic components in Cebu. 

For May, CALABARZON continued to be the hotspot for investment, with 12 projects slated for areas within Laguna, Cavite, and Batangas.