Peza Maintains Confidence in 2026 Targets Despite Global Headwinds
The Philippine Economic Zone Authority (Peza) has expressed unwavering confidence in achieving its investment and export objectives for the year 2026, even as global uncertainties, including an ongoing oil crisis, pose significant challenges. This optimism stems from a strong performance in the first quarter, with a notable increase in approved projects.
Strong First Quarter Performance
Following its board meeting on March 30, 2026, Peza announced the approval of investments totaling P45.525 billion across 78 new and expansion projects from January to March 2026. This represents an 18.18 percent increase from the 66 projects approved in the same period last year. These projects are expected to generate US$10.865 billion in exports and create 8,496 direct jobs, indicating a continued upward trajectory in export revenues and a shift toward higher-value, export-oriented economic activities.
Steady Investment Flow Amid External Pressures
In an interview on April 15, 2026, Peza Director General Tereso Panga stated that the agency is "not in a position yet to do any recalibration," emphasizing that investment approvals and project development have remained 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 remarked. "We believe that we're still on track with our ambitious targets." Peza anticipates that conditions will stabilize by the third quarter, bolstering confidence that current global pressures will diminish.
Divergent Investor Sentiment
Panga highlighted a split in investor behavior due to global volatility, with two distinct groups emerging:
- Those adopting a cautious, wait-and-see approach.
- 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 explained. The latter group demonstrates continued confidence in the Philippine investment environment, particularly among firms targeting export markets in the United States, Europe, and Asia. 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 Indicates Higher-Value Investments
In 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 saw a 68.93 percent month-on-month increase in investment value and an 89.13 percent surge in projected exports, signaling a shift toward larger, higher-value investments. This trend was underscored by four big-ticket projects accounting for P6.683 billion in approvals, including ventures in:
- Ecozone development in Naga
- Solar cell manufacturing in Batangas
- Aircraft maintenance, repair, and overhaul in Pasay
- Facilities services in Cavite
Geographically, 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.
Sectoral and Regional Distribution
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. Investments remained concentrated in Luzon with 67 projects, alongside activity in the Visayas (nine) and an emerging presence in Mindanao (two), aligning 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 Growth
Peza noted that the quarter's performance was further anchored by 10 big-ticket projects worth over P36 billion, highlighting 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.
Managing Oil Crisis Risks
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," an official stated. The country maintains around a 60-day oil buffer, providing a cushion against supply disruptions. Peza emphasized that government efforts to secure energy supply and manage inventory are helping mitigate the impact on locators.
Forward Outlook
Peza will continue to project stability and resilience to investors, underscoring 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.
