Investments registered with the Philippine Economic Zone Authority (PEZA) went up by 6.18 percent in the January to September period from a year ago, supported by the entry of new locators and expansion of existing players.

Data obtained by reporters showed investments committed with the PEZA rose to P148.213 billion as of end-September this year from P139.591 billion in the comparable period in 2013.

PEZA director-general Lilia De Lima told reporters on the sidelines of the International IT-BPM (Information Technology-Business Process Management) Summit yesterday the investments came from manufacturing firms looking to set up facilities and expand operations.

She said that about 60 to 65 percent of the investments were made to fund expansion plans.

While the latest result is still far from the PEZA’s target of achieving a 10-percent increase in total registered investments this year from last year’s P276.1 billion, the agency is still sticking with its growth goal.

“We will meet that, the target,” De Lima said, optimistic that more investments are seen in the fourth quarter.

In line with the aim to attract more investments in the Philippines, particularly in the PEZA zones, De Lima is set to visit Japan next month and in December to promote the country as an investment destination.

Elmer San Pascual, manager of PEZA’s promotion and public relations group, told reporters the trip next month is intended to encourage firms, particularly those engaged in manufacturing or export of IT services from Osaka and Tokyo, to consider the Philippines for their investments.

The trip in December, meanwhile, would involve meeting with Mizuho Bank, Ltd.’s clients that are interested in learning about the Philippines and opportunities here.

San Pascual said the PEZA has been attending events organized by Japanese banks for their clients to present what the country has to offer to investors.

With the approval of Republic Act No. 7721, which allows the full entry of foreign banks into the Philippines, many foreign banks are interested in setting up operations here.

San Pascual said the PEZA welcomes the expression of interest of banks to enter the country since these institutions serve as the source of information of companies looking to do business here.

“Locators want their banks to have presence in the ecozones because it makes them more comfortable,” he said.

Apart from conducting country visits, the PEZA is also working on addressing concerns of businesses to encourage more investments in the country.

De Lima said among the steps being taken is to make the visa application process easier for foreign nationals employed by PEZA-registered firms.

“We are negotiating with the Department of Justice - Bureau of Immigration to give the PEZA the authority to sign visas. Hopefully, we can have that before the end of the year,” she said.

She also said the agency is in talks with electric distribution utility Manila Electric Co., as well as IT building owners and developers, on how locators could enjoy the zero value-added tax (VAT) incentive on purchases of electrical power.

Locators of IT parks are not able to enjoy the zero VAT incentive on power purchases as they do not have separate meters.

Amid a looming power crisis by summer of 2015, the PEZA is also encouraging its locators to support energy conservation by converting to LED (light emitting diode) lighting to generate savings.

De Lima noted that based on a study conducted by the European Chamber of Commerce of the Philippines, the more than 3,300 companies in PEZA zones could generate 409 megawatts in energy savings if all of them convert to LED.

“The computed savings does not include air conditioning and boilers. If everyone cooperates, we can avert the feared power shortage,” she said.

Source: The Philippine Star