PEZA investment approvals decline in Q1 2026

The Philippine Economic Zone Authority (PEZA) investment commitments approved declined in the first quarter of 2026 amid tepid investment activity brought by uncertainties due to the Middle East fuel crisis.

In a statement on Saturday, PEZA said it approved P45.525 billion worth of investment pledges across 78 new and expansion projects during the January to March period, down from P58.947 billion approved investments in the same period last year.

The investment promotion agency said the total value of approved investments reflected a “calibrated pace” arising from evolving global conditions.

“I’m still confident that we will be able to meet our targets for this year based on our current assessment. However, if the conflict in the Middle East continues, I certainly believe that there will be global adjustments in the investment decisions of global companies,” said PEZA director general Tereso Panga.

“We are ready for this and we expect it before it even happens. There are two kinds of investors: the first kind is the one that prepares for events like this; the other, wait for the results. I believe our type of investors are long-term and belong to the first kind,” said Panga.

The first quarter 2026 approved investments comprised 78 new and expansion projects, up 18.18% from 66 projects in the same period last year, reflecting “a more active and expanding investment pipeline.”

“This performance reflects sustained investor confidence in the ecozones and in the Philippines as a competitive investment destination, even as global economic conditions remain volatile due to rising energy costs, supply chain adjustments, and geopolitical tensions,” said Panga.

PEZA said the projects are projected to generate $10.865 billion in exports and 8,496 direct jobs.

The agency said manufacturing led all sectors with 30 projects, followed by ecozone development with 16 projects, IT-BPM with 11, facilities with 10, logistics with six, tourism with two, and one utilities project.

“Geographically, investments remained concentrated in Luzon (67 projects), with steady activity in the Visayas (9), and emerging presence in Mindanao (2), in line with PEZA’s push for more balanced regional development,” according to PEZA.

“This momentum is supported by a diversified investor base led by South Korean, Indonesian, British Virgin Islander, Taiwanese, and Japanese firms,” it said. —VAL, GMA News