On back of strong investments
MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) has revised its growth targets this year to 11-11-11 percent for investments, exports and employment on back of strong growth in the past months.
PEZA Director-General Lilia B. De Lima told reporters they have decided to adjust the target after hitting P113.603 billion in investment approvals in the January-August period this year or 60 percent higher than the P70.958 billion a year ago.
The investment generation represented the project cost of a total of 426 export-oriented projects. The number of projects, De Lima said, was 28 percent higher than 332 projects registered in the same January-August period last year.
These projects are expected to generate $23.941 billion in annual exports once they go into full commercial operation. The exports projection was 2 percent higher than the $23.394 billion estimated exports from the 332 projects approved last year.
Employment in PEZA also increased 14 percent to 808,735 in the first eight months of the year from 711,839 a year ago.
Originally, PEZA had set a conservative 10-10-10 percent growth targets for 2011 for investments, jobs and exports over 2010.
In setting the original growth targets, De Lima said they have to tame their projections because they were coming from a very high growth base in 2010 of P204.394 billion or 16.55 percent higher than 2009.
PEZA’s total direct employment in 2010 was also over 20 percent to 728,318 from 606,350 jobs in 2009.
In terms of exports, the agency reported a 24.05 percent increase in export sales to $36.996 billion for the January-November period of 2010 year compared to the full year 2009 exports of $29.824 billion.
According to De Lima, investments growth driver would still be electronics and IT. The country’s booming tourism sector is also expected to give a boost to the tourism ecozones while investments in agrizones are also expected to contribute in 2011.
PEZA which grants tax and fiscal incentives to export-oriented enterprises have a high realization rate of 98 percent, meaning most of the projects it registered have gone into full commercial operations and fulfilled their export and employment generation commitments.
It has a realization rate of 98 percent of all its approved projects.
PEZA grants a maximum of eight years of income tax holiday to qualified investors, zero duty on capital equipment importation and five percent tax on gross sales in lieu of all other national taxes, among others.
Most of its locators are engaged in electronics product manufacturing operations for the export market. Japanese companies account for the bulk of its registered enterprises. (BCM)