DESPITE concerns over political corruption, recent earthquakes, and higher US tariffs, foreign investors remain interested in Philippine economic zones, industry officials said, citing the country’s growing role in regional supply chain diversification.
In a press conference during the Cebu Industrial Summit 2025, Peza Deputy Director General for Policy and Planning Maria Veronica Magsino said Peza continues to see sustained inquiries and commitments from manufacturers and exporters, particularly those seeking alternatives to China amid the ongoing US–China trade tensions.
“We’re seeing more investors who previously operated in China reintegrating parts of their operations into the Philippines,” she said. “They’re taking advantage of our competitive 19 percent tariff rate and positioning under a ‘China plus one plus one’ strategy.”
Aboitiz InfraCapital’s Economic Estates head, Rafael Fernandez de Mesa, said that while the Philippines is not the region’s top manufacturing destination, recent geopolitical disruptions are prompting companies in Vietnam, Thailand, and Indonesia to look for secondary investment sites to spread their risk.
“This uncertainty has actually become an advantage,” he said.
He said that the competition among Asean peers remains intense but that the Philippines’ relative stability and improving ease of doing business are drawing renewed investor attention.
“Perhaps there’s some slowdown in decision-making due to tariff uncertainties, but the interest hasn’t gone away,” he said. “Across our estates in Luzon and Cebu, we’ve welcomed around 15 new investments this year, including new locators.”
On corruption concerns, Peza emphasized its role as a “one-stop, non-stop shop” to protect investors and streamline government transactions.
“We focus on efficiency and transparency to ensure investors feel secure inside our ecozones,” she said.
Peza operations in Cebu
During her presentation, Magsino highlighted that Cebu continues to cement its position as one of the country’s most dynamic industrial and innovation hubs.
She reported that Cebu now hosts 50 ecozones and 486 registered enterprises, generating P321.9 billion (US$5.64 billion) in approved investments since 1995 and more than 207,000 jobs.
The province’s strong ecosystem of manufacturers, IT-BPM firms, and exporters has made it a “powerhouse of investments, innovation, and industry in the Visayas,” Magsino said.
Peza-managed ecozones across the country now contribute 13 percent of the country’s gross domestic product and 54 percent of total goods exports.
To sustain this growth, Peza is expanding its Aerotropolis project near Mactan-Cebu International Airport, along with marine, agro-forestry and renewable energy zones to support emerging industries and strengthen supply chains.
The agency is also advancing digital transformation through cashless and paperless transactions and upskilling initiatives like the Peza AI Academy, which trains ecozone workers in artificial intelligence automation and fintech. / KOC