Fast growth pace being sustained by ecozone firms

COMPANIES OPERATING in economic zones sustained their fast growth pace, in terms of export sales and employment growth, last May, official data show.

Ecozone export sales in the first five months of the year rose by 43% to $16.372 billion from yearago levels, data released by the Philippine Economic Zone Authority (PEZA) late on Friday showed.

The growth pace matched that for January to April.

Firms in private economic zones continued to account for the bulk — over two-thirds — of export sales. The rest was accounted for by companies in public economic zones and in information technology (IT) parks or buildings.

Hiring in economic zones likewise remained robust, with the workforce having expanded by 19.3% as of May, similar to the 18.2% rise recorded by April. Ecozone workers now number 681,367.

Employment rose the fastest among firms in IT parks which recorded a 27.056% increase versus the 21% and 3.2% employment growths seen, respectively, in public and private economic zones.

More export sales and jobs are forecast to be generated as new investments and expansions continue to be pledged with the PEZA.

Planned investments in economic zones amounted to P46.349 billion in the first five months of 2010, up by 67.8% from the same period last year but slower than the 111% increase recorded as of April.

The five-month investment figure is expected to produce $2.106 billion worth of exports and generate 30,113 jobs once these come on stream.

By yearend, the PEZA is hoping both employment and export levels grow by at least 10% from 2009. Investment pledges are also targeted to grow by 15% to P201.670 billion. — Jessica Anne D. Hermosa, Businessworld