Connect with us

Hi, what are you looking for?

News

PEZA investments drop 19% as pandemic drags on

Investments approved by the Philippine Economic Zone Authority (PEZA) dropped by nearly a fifth in 2020. — REUTERS/CHERYL RAVELO

INVESTMENTS approved by the Philippine Economic Zone Authority (PEZA) dropped by nearly a fifth in 2020 after stringent lockdown restrictions dented domestic investor confidence.

The investment promotion agency registered P95.03 billion in pledges, falling 19.15% from the P117.54 recorded in 2019. The 2019 figure represented a 16.19% drop from the previous year, which in turn fell 41%.

Last year’s total fell short of PEZA’s target to approve at least P100 billion in investment pledges, which was already downscaled from the 5-10% growth target set before the coronavirus disease 2019 (COVID-19) pandemic hit.

PEZA last year saw delays in investment approvals as the board failed to meet during the strict lockdown which began in mid-March. Even so, PEZA approvals slid 5.85% in the first two months of 2020.

PEZA Director-General Charito B. Plaza had said that pending tax reform proposals at the time and the impact of the pandemic on export manufacturers and outsourcing firms caused challenges in attracting investments.

Foreign investments last year jumped 21.26% to P59.73 billion, but local investments plummeted 48% to P35.3 billion, PEZA said in a statement on Thursday.

“The decline can be attributed to various causes including the perilous effect of the COVID-19-imposed lockdowns beginning March 2020,” the agency said.

Overall, PEZA approved 326 projects last year, 217 of which came from the manufacturing sector. The sector generated P34.44 billion in investments, or 13.43% higher than the previous year.

The 109 projects under the outsourcing sector brought in P17.41 billion in investments, down just 0.93% from 2019.

Most of the foreign investments came from the United States, European countries like the United Kingdom and Belgium, and Asian countries like China, South Korea, Singapore, and Saudi Arabia.

The bulk of the investments will be poured into Calabarzon (Cavite, Laguna, Batangas, Rizal, Quezon), followed by the National Capital Region, Central Visayas, and Central Luzon.

Meanwhile, the Board of Investments (BoI), which accounts for a bulk of planned projects registered with investment promotion agencies, reached a total of P1.02 trillion in investments, a 10% drop from the agency record P1.14 trillion in 2019.

BoI-approved investments doubled in the first half of 2020 despite the lockdown, mostly led by a San Miguel Corp. subsidiary’s P740-billion airport project in Bulacan. Domestic investments at the time jumped by 166% due to the airport project, but foreign investments plummeted by 73%.

“We hope in 2021, we will be able to attract more foreign direct investments in the country, keep the PEZA brand of service renowned worldwide, and help the Philippine economy bounce back,” Ms. Plaza said. — Jenina P. Ibañez

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

News

Infrastructure spending dropped for the fifth straight month in November amid the pandemic. — PHILIPPINE STAR/MICHAEL VARCAS By Beatrice M. Laforga, Reporter STATE SPENDING...

News

By Charmaine A. Tadalan, Reporter THE BICAMERAL Conference Committee on Tuesday approved the bill strengthening the anti-money laundering law, although a key amendment pushed...

News

The Health department on Tuesday reported 1,357 new coronavirus disease 2019 infections, bringing the total to 504,084. — PHILIPPINE STAR/MICHAEL VARCAS THE HOUSE Committee...

News

PLDT, Inc. said its fixed broadband download speeds have improved by 78% in 2020 after expansions and upgrades amid a pandemic crisis. Its wireless...

News

LISTED port operator International Container Terminal Services, Inc. (ICTSI) on Tuesday said it had completed a berth expansion project at the Manila International Container...

News

CEMEX Holdings Philippines, Inc. has positioned its large heating device as it builds the cement production line that would add 1.5 million metric tons...

You May Also Like

When people envision technology overtaking society, many think of The Terminator and bulletproof robots. Or Big Brother in George Orwell’s Nineteen Eighty-Four, a symbol...

Financial Advisors

Stock Markets9 hours ago (Jul 02, 2020 04:45AM ET) (C) Reuters. ROME (Reuters) – World food prices rose in June to post their first...

Economy

SAN FRANCISCO — The spread of the coronavirus has meant feast or famine for technology start-ups. While many are cutting staff and slashing costs...

Economy

In Wisconsin and Ohio, farmers are dumping thousands of gallons of fresh milk into lagoons and manure pits. An Idaho farmer has dug huge...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 Respect Investment. All Rights Reserved.