PEZA investment approvals top full-year goal as October total reaches P12.5 billion

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PEZA investment approvals 2023

Highlights

PEZA approved P12.5 billion in investments for October 2023, a 40% decrease year-on-year, with 18 projects versus last year’s 28.
Cumulative PEZA approvals reached P309.63 billion for January–October 2023, up 76.56% year-on-year, surpassing the P300 billion full-year target and nearing the 2012 record.
End-October approvals for 240 projects are estimated to generate $9.12 billion in exports and create 38,815 direct jobs, with manufacturing as the leading sector.

October approvals and 10-month pipeline

As reported by BusinessWorld, citing PEZA in a statement on Thursday, the October approvals cover 18 new and expansion projects, down from 28 in the same month last year, while the value of approved investments fell 40% from P20.66 billion a year earlier.

Despite the slower October comparison, the agency’s cumulative approvals in the first 10 months of the year rise 76.56% from P175.37 billion a year earlier to P309.63 billion, already above its P300 billion full-year target and just below the record P312 billion posted in 2012.

The October projects are expected to generate $178.203 million in exports and create 5,484 direct jobs. Fifteen of the approved projects are in Luzon, including six in Metro Manila, eight in Calabarzon, and one in Central Luzon, while two are in Cebu and one is in Iloilo.

By industry, October approvals include six IT-BPM projects, four ecozone development projects, three manufacturing projects, three logistics enterprises, and two facilities projects. The investments come from Hong Kong, China, the U.S., Singapore, and Japan, and PEZA says they are also expected to support demand for local services, logistics, infrastructure, and suppliers.

Investor confidence and regional impact

PEZA Director-General Tereso O. Panga says the strong approvals reflect sustained investor confidence in the Philippines, and the agency expects to set a new investment record by yearend as inquiries from potential investors continue. End-October approvals involve 240 new and expansion projects that are estimated to generate $9.12 billion in exports and create 38,815 direct jobs.

By quarter, PEZA approves P45.53 billion in the first quarter, P95.16 billion in the second quarter, and P156.45 billion in the third quarter. By region, 200 approved projects are in Luzon, 28 are in the Visayas, and 12 are in Mindanao.

Manufacturing leads the 10-month project count with 92 approvals, followed by 40 in IT-BPM, 38 in ecozone development, 25 in facilities, and 21 in logistics. Other approved projects include 17 domestic market enterprises, four tourism ventures, and three utilities projects, while the top investor sources in the period are Taiwan, the Netherlands, South Korea, Singapore, and Indonesia.

Diana R. Rueda, an economics professor at the University of Asia & the Pacific, says strong approvals are partly driven by global supply-chain diversification, rising interest from Asian investors, and improved incentives under the CREATE MORE Act. She adds that the Luzon Economic Corridor could help bring more investments into PEZA zones and strengthen the Philippines’ position in regional production networks, particularly in electronics and advanced manufacturing.

In our earlier article on the Philippines’ planned sovereign bond market reforms and target inclusion in J.P. Morgan’s Government Bond Index-Emerging Markets, we explained how these changes could widen the investor base and improve liquidity for peso government securities. We also noted that market modernization alone does not guarantee stronger real-economy outcomes—sustained business investment and productivity gains still depend on factors such as fiscal credibility, deeper domestic capital markets, and competitive operating conditions for manufacturers and exporters.

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