25K new jobs expected from new ecozone investments
The Philippine Economic Zone Authority (Peza) approved P45.58 billion worth of investments from January to June, with the number of projects marking an increase of nearly a fifth during the period.
Peza, one of the main investment promotion agencies of the Department of Trade and Industry (DTI), said that the number of investment projects had increased by 18 percent to 120 projects during the six-month period from the 102 projects approved in the comparable period a year ago.
Further, the approved projects from January to June are expected to create more than 25,000 direct jobs and produce around $1.61 billion worth of export products annually.
“The approval of these projects signals robust confidence in the Philippines’ business environment and economic potential,” Peza director general Tereso Panga said in a statement.
“Furthermore, creating more jobs for Filipinos signifies the agency’s proactive efforts in positioning the Philippines as a premier investment destination in Asia, aligned with DTI’s agenda of promoting employment opportunities through investment growth,” he added.
For the month of June alone, Peza approved a total of P32.56 billion worth of investments spanning 22 projects, with these business ventures expected to create 3,475 jobs and produce $481.88 million worth of exports yearly.
The June posting represents a 13.6-percent increase in the number of new and expansion projects compared with the 22 projects approved in the same month in 2023.
Last year, Peza-approved investments reached P175.70 billion in value, marking a 24.9 percent increase from P140.7 billion recorded in 2022.
Its approved investments reached P69.30 billion in 2021, P95.03 billion in 2020, P117.54 billion in 2019 and P140.2 billion in 2018.
For the whole of 2024, the PEZA is targeting at least a 15-percent growth in the value of its approved investments.
To date, Peza has more than 420 operating economic zones across the country, majority of which are located in Luzon.
Companies registered under Peza enjoy a number of fiscal and nonfiscal incentives depending on the location and the nature of business.
For exporters, fiscal incentives include an income tax holiday of four to seven years and a special corporate income tax rate of 5 percent or enhanced deductions for 10 years.
Domestic market-focused enterprises are given an income tax-holiday of four to seven years or enhanced deductions for five years.
