Foreign investment pledges slow

Year-to-date investments approved by the Philippine Economic Zone Authority (PEZA) continue to trend upward compared to the previous year, but uncertainties stemming from the United States' (US) tariff policy are dampening foreign investor interest.

- By DEXTER BARRO II

In a statement, PEZA said it has approved P66.34 billion in investment pledges from January to May, 80-percent higher than the P36.83 billion recorded in the same period last year.

The pledges, which translate to actual investments over time, cover 102 new and expansion projects. These are projected to create approximately 29,000 jobs and generate over $1 billion in export revenues.

In turn, PEZA grants tax and other non-fiscal incentives to locators, resulting in foregone revenues for the government.

PEZA said its strong performance this year is a testament to the growing investor confidence in the country's economic zones.

From January to February, the investment promotion agency (IPA) approved P52.93 billion worth of investment pledges, jumping 338 percent from the P12.1 billion during the first two months of 2024.

In March, when talks of new tariffs intensified under the Trump administration in the US, approvals eased to P6.01 billion—which was still better than the P2.86 billion in the same month last year.

For April, however, the IPA only approved P4.58 billion in investment pledges, a sharp 69-percent drop from the P15 billion last year.