Peza okays 26 fresh projects as virus lockdowns are eased

By Elijah Felice Rosales, Businessmirror, 1 Jun 2020

THE Philippine Economic Zone Authority (Peza) has approved 26 fresh projects that will bring in over P13 billion in new capital and generate nearly 20,000 jobs, as investors take their next steps now that quarantine restrictions nationwide are eased.

A total of 26 projects were given the green light by the Peza Board last week in its first ever meeting since the implementation of the enhanced community quarantine (ECQ) in Luzon.

These projects, to be put up in various economic zones across the archipelago, will inject P13.1 billion in investments and employ 19,894 workers once operational.

More than two-thirds of the 26 projects was tendered by foreign firms mostly from the United States, Japan, Taiwan and China, while the remaining one-third was submitted by local investors.

Peza Director General Charito B. Plaza said her agency approved the proposals in response to the need to maintain the country’s competitiveness in this coronavirus pandemic. She added that the projects will not only bring in capital and generate export income, but also provide jobs to thousands of Filipinos at a time many are getting displaced.

“Indeed, the Philippines continues to maintain and attract [the] trust and confidence of investors and business groups whether in terms of new or expansion projects,” Plaza said in a statement.

Based on latest records, there are a total of 408 economic zones nationwide housing 4,542 locators that employ roughly 1.6 million workers. However, hundreds of firms that shut down operations due to the ECQ have yet to resume again.

Citing a survey as basis, the Peza reported that around 65 percent of economic zone locators are now operating either in full, with skeleton force or in work from home arrangements.

On the other hand, about 35 percent of firms are keeping their plants shut without a definite calendar for reopening. The poll was conducted in May, the month when quarantine restrictions were extended for the third and fourth time, and gathered the insights of 2,634 respondents.

Crash

Investments applied to the Peza in the first quarter crashed almost 28 percent to P16.49 billion, from P22.9 billion during the same period last year, as not a single peso was recorded in March with board members unable to convene.

The Peza is coming from two consecutive years of double-digit declines and is trying to recover this year by growing investments by 10 percent.

Last year, investments registered with the agency slipped by at least 16 percent to P117.54 billion, from P140.24 billion in 2018, on uncertainties arising from the government’s move to rationalize fiscal incentives.