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Philippine Economic Zone Authority investment pledges declined 13.66% to P62.722 billion from January to October 2021
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But export income grew 17.35% to US$40.692 billion from January to August 2021
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Employment rose 11.12% to 1.688 million for the first eight months of the year
Philippine Economic Zone Authority (PEZA) investments from 215 approved projects declined 13.66% to P62.722 billion from January to October 2021 from P72.644 billion year-on-year.
The agency, however, saw export income grow 17.35% to US$40.692 billion and employment rise 11.12% to 1.688 million from January to August 2021 as more companies nationwide resumed operations following lockdowns induced by the COVID-19 pandemic.
As of September 2021, 90% of PEZA-registered companies were already operating nationwide under various work arrangements, higher than the 87% logged in the same period last year, according to PEZA director general Charito Plaza.
She said the impact of the COVID-19-induced slowdown of global and local economies was felt in the Philippines more in 2021 than when the quarantines actually began in 2020.
Most approved investments in the first ten months of the year came from economic zone development projects with P28.754 billion and the manufacturing sector with P24.127 billion. These projects will be located in Regions IV, VII, and National Capital Region.
“The decline in investment pledges and projects in PEZA was felt more in 2021. This is because when the first quarantines began in Philippines in March 2020, there were pending applications for investments and projects that were approved. Thus, 2020 performance didn’t immediately decrease,” Plaza explained in a statement.
She added: “Due to the strict lockdowns implemented last year, the approval of projects filed in early 2020 was delayed until mid to late last year. Business groups, entrepreneurs, and exporters were on a wait-and-see mode and had lower risk appetite in their investments during the pandemic. Hence, the impact of the pandemic was really felt this year.”
Plaza, however, noted PEZA continued to operate and attract investments during the pandemic. “We retained business confidence and trust in PEZA as we were quick to adjust in the new normal and establish business assistance and reprieves,” she said.
She added that PEZA has been implementing various “balancing acts” to protect both the country’s economy and Filipino workers.
“We ensured that our services are operating non-stop without compromising the health, safety, and the jobs of our workforce,” she said.
Among these balancing acts are including COVID-related expenses as deductibles for enterprises availing of the 5% gross income earned incentive; including information technology-business process outsourcing companies and economic frontline workers in the A4 vaccination priority list to hasten herd immunity in time for the reopening of the economy; and allowing 90% work-from-home arrangements.
