THE Philippine Economic Zone Authority (Peza) remains confident in meeting its investment and export targets this year despite global uncertainties, including the ongoing oil crisis, as it reported a strong pipeline of approved projects in the first quarter.
Following its board meeting on March 30, 2026, Peza said it approved P45.525 billion worth of investments across 78 new and expansion projects from January to March 2026, up 18.18 percent from 66 projects in the same period last year.
These projects are projected to generate US$10.865 billion in exports and 8,496 direct jobs, signaling continued growth in export revenues and a shift toward higher-value, export-oriented activities.
Despite external headwinds, Peza Director General Tereso Panga, in an interview on April 15, 2026, said the agency is “not in a position yet to do any recalibration,” noting that investment approvals and project development remain steady.
“We continue to unlock investments, we continue to venture projects, and by far, we’re positive when it comes to exports and investments,” Panga said. “We believe that we’re still on track with our ambitious targets.”
Peza expects conditions to stabilize by the third quarter, reinforcing confidence that current global pressures will ease.
Investor behavior splits
Panga said investor sentiment has diverged amid global volatility, with two distinct groups emerging: those adopting a cautious, wait-and-see stance, and those moving early to secure a strategic advantage.
“There are those who need to wait and see. But there’s another type that is preparing for the economy—they will set up anyway so that when the situation normalizes, they’re ahead of the pack,” he said.
The latter group reflects continued confidence in the Philippine investment environment, particularly among firms targeting export markets in the United States, Europe, and across Asia.
He added that early movers are positioning themselves to gain a competitive edge once global conditions improve, reinforcing the country’s appeal as a long-term manufacturing and investment hub.
March surge signals
higher-value investments
For March alone, Peza approved 26 projects worth P10.159 billion, projected to generate $422.7 million in exports and 3,447 jobs.
While the number of projects remained broadly steady year on year, March recorded a 68.93 percent month-on-month increase in investment value and an 89.13 percent surge in projected exports, indicating a shift toward larger, higher-value investments.
This trend was highlighted by four big-ticket projects accounting for P6.683 billion in approvals. These include ventures in ecozone development in Naga, solar cell manufacturing in Batangas, aircraft maintenance, repair and overhaul in Pasay, and facilities services in Cavite.
Calabarzon led investment activity with 14 projects, followed by the National Capital Region with six, Central Visayas with three, and Central Luzon, Bicol, and Western Visayas with one project each.
Manufacturing dominated approvals with 30 projects, followed by ecozone development (16), information technology-business process management (11), facilities (10), logistics (six), tourism (two), and utilities (one), reflecting both industrial depth and strengthening support infrastructure.
Geographically, investments remained concentrated in Luzon with 67 projects, alongside activity in the Visayas (nine) and emerging presence in Mindanao (two), in line with Peza’s push for more balanced regional development.
The investment base remained diversified, led by firms from South Korea, Indonesia, the British Virgin Islands, Taiwan, and Japan.
Big-ticket investments
anchor pipeline
Peza said the quarter’s performance was further anchored by 10 big-ticket projects worth over P36 billion, underscoring investor preference for large-scale, high-impact ventures aligned with global supply chains and ecozone development.
While total investment value reflects a calibrated pace amid evolving global conditions, the strong export projections point to the increasing entry of high-value investments into Philippine economic zones.
Oil risks ‘manageable’
Despite the upbeat outlook, Peza acknowledged risks posed by rising fuel costs, particularly for manufacturers reliant on logistics and energy inputs.
“All economies are affected by this global oil crisis, but the upside with the Philippines is that we are not among the most vulnerable and we have high buffer stocks,” the official said.
The country maintains around a 60-day oil buffer, providing a cushion against supply disruptions.
Peza said government efforts to secure energy supply and manage inventory are helping mitigate the impact on locators.
Forward outlook
Peza said it will continue to project stability and resilience to investors, emphasizing the Philippines’ ability to weather external shocks while sustaining growth momentum.
With a growing pipeline of higher-value projects and sustained investor interest, the agency expects the investment environment to strengthen further in the second half of the year as global conditions stabilize. / KOC