PEZA-approved investment pledges plunge in November

By Justine Irish D. Tabile, Reporter

INVESTMENT PLEDGES approved by the Philippine Economic Zone Authority (PEZA) slumped by 58.59% to P32.211 billion in November from P77.79 billion in the same month a year ago.

The investment pledges are comprised of 38 projects, which are expected to generate 9,802 jobs and $1.741 billion in exports, the agency said on Tuesday.

Of the 38 projects, 22 were in the manufacturing sector, five were facilities, four were in the information technology and business process management (IT-BPM) sector, and three were in logistics. There were also two new economic zone (ecozone) developments, and two domestic enterprises.

Most of the projects will be in Calabarzon, while the others will be in Central Luzon, the National Capital Region, the Ilocos Region, the Bicol Region, Central Visayas, Northern Mindanao, and the Davao Region.

Federation for Economic Freedom President Calixto V. Chikiamco said that the decline in pledges may reflect investors’ concerns over the Philippines’ economic fundamentals.

“While the corruption scandal may have affected investor sentiment a bit, more likely, investors are wary of the country’s economic fundamentals,” he said in a Viber message.

“The economy is still facing geopolitical uncertainty with the 19% tariffs on exports to the US.  Investor uncertainty, both domestic and foreign, is reflected in the anemic stock market,” he added.

The US imposed a 19% reciprocal tariff on most goods from the Philippines, which has dampened export demand.

A corruption scandal involving anomalous flood control projects has also clouded the economic outlook. The economy grew by a weaker-than-expected 4% in the third quarter as government spending slowed, and consumer and investor sentiment waned amid the graft scandal.

ON TRACK TO HIT TARGET
Despite the drop in November, PEZA Director General Tereso O. Panga is confident the agency will exceed the P214.176 billion worth of investment pledges approved last year.

“We will surpass our 2024 investment performance,” he said in a statement.

In the first 11 months, the investment promotion agency approved P207.577 billion worth of investment pledges, up by 2.99% from the P201.55 billion approved in the same period a year ago.

PEZA set an investment approval target of P250 billion. As of the end of November, the agency has already achieved 83% of the full-year target.

“We are keeping our fingers crossed that we will breach our 2025 investment target as well,” Mr. Panga said.

However, this would depend if the PEZA Board approves more investments at its next two meetings on Dec. 12 and 22.

“If we don’t get a quorum (on Dec. 22)… We cannot hold a board meeting. It’s not sure yet. We will know after our Dec. 12 meeting,” Mr. Panga said.

In the January-to-November period, PEZA approved 281 new and expansion projects, which are expected to generate $7.39 billion in exports and 69,737 jobs.

Most or 134 of the pledges were manufacturing projects, while 64 were IT-BPM projects and 24 were facilities projects.

The other projects were domestic enterprises (23), ecozone developments (21), logistics projects (11), and utilities projects (4).

“By investor nationality, Japan continues to lead PEZA-approved investments, followed by the Cayman Islands, South Korea, China, Singapore, the US, and other countries,” the agency said.

“Notably, domestic market-oriented investments surged to P110.73 billion, highlighting PEZA’s effective collaboration with local government units in unlocking regional economic potential and generating broader opportunities,” it added.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said concerns over corruption has likely contributed to investor hesitancy.

“While the January-November total is slightly higher year on year, the monthly decline is a warning that confidence has softened, especially for new or expansion projects,” he said in a Viber message.

“The modest full-year growth shows existing investors are still committed, but sustaining momentum will depend on restoring trust, policy stability, and faster, cleaner approvals moving forward,” he added.

Meanwhile, Trade Secretary and PEZA Board Chair Ma. Cristina A. Roque said PEZA had already approved five big-ticket projects worth P27.261 billion, four of which will manufacture electronic and pharmaceutical products and one dedicated to ecozone development.

These big-ticket projects approved last month are expected to be located in the provinces of Camarines Norte, Laguna, Tarlac, and Batangas.

“Investment acquisition is on stream as we enter 2026, and we remain bullish on the upcoming investment prospects into the country as we create more ecozones,” she said.