Peza keeps ’26 P300-B target despite 23% drop in Q1 investments
Investment approvals under the Philippine Economic Zone Authority (Peza) took a hit from global economic headwinds in the first quarter, with capital inflows falling 22.77 percent as investors adopted a more “calibrated” stance amid geopolitical tensions.
Data released on Saturday showed that Peza approved P45.53 billion in investment pledges from January to March, down from P58.95 billion in the same period last year.
This places the agency at just 15.17 percent of its P300-billion target for 2026—a goal Peza Director General Tereso Panga earlier signaled could be recalibrated in light of global headwinds.
However, Panga struck a more bullish tone following the first-quarter tally, saying Peza could still meet its target if the Middle East conflict does not drag on.
“I’m still confident that we will be able to meet our targets for this year based on our current assessment,” he said in the statement. “However, if the conflict in the Middle East continues, I certainly believe that there will be global adjustments in the investment decisions of global companies.”
Panga said near-term investment sentiment may be weighed down by rising oil prices and uncertainty over global trade stemming from the conflict in the oil-rich Middle East, which has disrupted traffic through the critical Strait of Hormuz.
“We are closely monitoring global developments, particularly those affecting energy costs and supply chains, and their potential impact on investment flows,” he added.
More projects
Despite the drop in investment value, the number of approved projects rose to 78 in the first quarter from 66 a year earlier, suggesting smaller average project sizes. This was even as big-ticket investments continued to anchor approvals, accounting for P36 billion or 79.08 percent of the total.
Total first-quarter investments are expected to generate $10.87 billion in exports and create 8,496 direct jobs.
“While total investment value reflects a calibrated pace amid evolving global conditions, the strong export projections point to the increasing high-value investments entering Philippine ecozones,” the agency said.
Despite being among the hardest-hit sectors amid the war-linked crisis, manufacturing again led Peza’s investment mix with 30 projects. It was followed by ecozone development (16), IT-BPM (11), facilities (10), logistics (six), tourism (two) and utilities (one).
Investments remained concentrated in Luzon with 67 projects, while the Visayas accounted for nine and Mindanao, two.
