PEZA-registered investments jump 89% in Jan-May
MANILA, Philippines - Investments registered with the Philippine Economic Zone Authority (PEZA) increased by 89% to P74 billion in January to May 2013 from P39 billion in the same period in 2012.
The stellar growth in PEZA-registered investments puts the government on track to reaching its P1.1 trillion investment goal between 2011 and 2016.
PEZA director general Lilia de Lima said the agency is preparing around 2,000 hectares of new spaces in its economic zones to accommodate new and expanding companies from China and Japan.
Around 60% of the investment pledges to date will go the expansion of several electronics firms.
De Lima said the huge increase was driven by the one-time registration of a tourism estate, valued at P19 billion in March. She did not disclose further details.
As of April 2013, around 3,000 companies were operating in PEZA economic zones, employing 952,215 people. This was a 7.2% increase from the 882,173 employees registered in the same period last year.
De Lima said locators shipped $13.55 billion worth of exports in January to April, up 2.8% from $13.16 billion in 2012.
She said the excess inventory in electronics, comprising around 65% of the country's exports, is beginning to ease after a slump in 2012. Other export products from the zones are also doing well, including automotive and machineries.
To attain the P1.1 trillion target between 2011 and 2016, the government should be able to chalk up around P200 billion in investment registrations every year and grow at an average of 10% year-on-year.
The agency is confident this goal is within the government's reach despite a slightly slower growth of 8.9% in 2012.
"We are looking forward to the rebound of the electronics sector this year," De Lima said.
She also said the agency has received applications for 2,000 hectares of land in Cavite, Batangas and Central Luzon. Some of these areas are new economic zones that will be available to locators within the year, De Lima added. - Rappler.com