By Beatriz Marie D. Cruz, Senior Reporter
INVESTMENT PLEDGES approved by the Philippine Economic Zone Authority (PEZA) surged in May, driven by an increase in export-oriented manufacturing and information technology-business process management (IT-BPM) projects.
The PEZA Board approved 31 projects valued at P15.41 billion, a 446.89% jump from the P2.82-billion approved in May 2025.
The projects are expected to generate $364.73 million in exports.
Of the total, 16 projects were export manufacturing enterprises, seven are IT-BPM projects; two are domestic market enterprises; two are economic zone (ecozone) developments; two are logistics enterprises; one is a facilities enterprise; and one is a tourism enterprise.
Most of the projects will be located in the Calabarzon Region (16 projects), followed by the National Capital Region (six projects), and Central Luzon (two projects).
PEZA said Cebu, Cagayan de Oro, Davao del Sur, and South Cotabato will each have three projects, while one project is located in Iloilo.
In the first five months of the year, PEZA approved 135 new and expansion projects worth P124.84 billion, up 88% from the P66.34-billion approved last year.
As of end-May, the agency’s investment approvals have reached 41.61% of its P300-billion target for 2026.
Approvals in the January-May period are expected to generate $2.97 billion in exports and 20,012 jobs, the agency said.
Fifty-eight of the approved projects during the period were in manufacturing, while the other projects were on ecozone development (21), IT-BPM (19), facilities (13), logistics (12), domestic market (six), tourism (four), and utilities (two).
In the five-month period, 110 of the PEZA-approved projects are located in Luzon, 19 in the Visayas, and six are in Mindanao.
The investment pledges came from investors based mainly in the Netherlands, South Korea, Indonesia, Germany, and Japan, the agency said.
In a statement on Sunday, PEZA Director-General Tereso O. Panga noted sustained investor confidence in the Philippines despite global economic uncertainties.
“Our robust investment growth and the near tripling of projected exports demonstrate that investors continue to see the Philippines as a strategic location for business expansion,” he said.
Mr. Panga also noted that PEZA has received interest from Middle Eastern companies considering the Philippines as a potential oil distribution hub. On the upside, we have received some interest from the Middle East in making the Philippines their hub for oil distribution in the ASEAN (Association of Southeast Asian Nations),” he told BusinessWorld in a Viber message. “This is a de-risking strategy from their end, and one that may meet our objective of creating a strategic oil reserve for the country.”
Mr. Panga said the PEZA is “cautiously optimistic” of reaching its P300-billion target of investment proposals, citing risks like geopolitical tensions in the Middle East and local political concerns.
“If these global headwinds are solved as well as some internal political problems, we will achieve the target by yearend,” he noted.
At the same time, Mr. Panga noted that the recent approval of the 2026 Strategic Investment Priorities Plan (SIPP) aligns with PEZA’s aim to attract projects that support export growth and industrial upgrading.
“The 2026 SIPP is a significant step forward in positioning the Philippines as a destination for high-value, technology-driven, and sustainable industries,” he said.
“Its stronger focus on advanced manufacturing, innovation, and Industry 4.0 technologies aligns closely with PEZA’s investment promotion strategy and our efforts to attract projects that generate higher-value exports, strengthen local industries, and deepen the country’s participation in global value chains,” Mr. Panga also said.
President Ferdinand R. Marcos, Jr. approved on May 21 the 2026 SIPP under Memorandum Order No. 47.
The SIPP identifies economic activities that may qualify for incentives under Republic Act No. 12066 or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act.
Tier I activities under the latest SIPP include modern agriculture, state-of-the-art construction, mobile healthcare, ecological zones, and climate-related initiatives such as carbon capture, waste-to-value, and circular economy projects, and forest management for carbon credits.
Under Tier II, activities that may be incentivized include defense services, desalination, electric vehicle infrastructure, sustainable aviation fuel, and processing of critical minerals.
Tier III activities under the SIPP include artificial intelligence (AI), quantum computing, cybersecurity, hydrogen and nuclear energy, and advanced research and design.
Mr. Panga said that the updated SIPP may help deepen the country’s trade relationships with its ASEAN neighbors, particularly in AI supply chains.
Looking ahead, PEZA is aiming to attract projects that seek to leverage advanced technologies, strengthen local industries, boost export capability, and help the Philippines climb global value chains, Mr. Panga said.
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