PEZA reports record investment approvals in 2024

MANILA, 11 OCTOBER 2026 —

Philippines’ PEZA Sets Course for Record Investment Approvals Amid Global Supply Chain Shifts

Panga attributed the momentum to a strategic shift in global production chains, with companies increasingly eyeing the Philippines for its competitive advantages in labor costs, tax incentives, and infrastructure development. The authority’s aggressive push into semiconductor manufacturing, hyperscale data centers, and electric vehicle (EV) supply chain investments signals a broader transformation from traditional assembly and testing hubs to advanced industrial sectors.

At a board meeting scheduled for next week, PEZA expects to approve at least ₱10 billion in new projects, including three high-profile semiconductor and hyperscale technology ventures in New Clark City. Each of these projects is projected to involve minimum investments of ₱50 billion, according to Panga, who emphasized their potential to anchor long-term foreign direct investment (FDI) in the country.

"We now see the trend that many of these companies are shifting production out of China," Panga stated, underscoring the Philippines’ growing appeal as an alternative manufacturing base.

The authority’s expansion into information technology (IT) capabilities also gained momentum following President Ferdinand R. Marcos Jr.’s July 2026 issuance of Administrative Order (AO) No. 45, which streamlined the approval process for IT parks and global capability centers (GCCs) in Metro Manila. Panga highlighted that several pending applications—ranging from tourism tech to gaming software development—are awaiting presidential proclamation, a move expected to attract additional GCC investments.

"As a result of that, we expect more GCCs coming to the Philippines," he said, noting the Philippines’ competitive edge in IT outsourcing.

Beyond semiconductors and IT, PEZA is positioning the Philippines as a hub for electric vehicle (EV) transport and electronics manufacturing, marking a deliberate shift from low-value assembly to high-value production. "This is not your usual assembly, testing, and packaging," Panga remarked. "We’re going into high-tech." The authority’s diversification strategy aligns with broader regional trends, as Southeast Asian nations compete to attract capital from China-bound firms seeking lower-cost, politically stable alternatives.

A key driver of this influx is the Laguna Technopark, where a Japanese electronics investor is reportedly considering a $1-billion expansion. Panga disclosed that the company had engaged in preliminary discussions with Finance Secretary Frederick D. Go, signaling strong government backing for the project. "They paid a courtesy visit to (Go), and we accompanied them," Panga said. "It’s a big Japanese investor."

The authority’s aggressive target-setting extends beyond financial figures. PEZA’s 2027 outlook will prioritize securing electric vehicle supply chain investments, particularly in battery components and autonomous vehicle technology, areas where the Philippines has yet to establish a significant foothold. Panga also hinted at potential collaborations with regional partners, including Vietnam and Indonesia, to create integrated manufacturing ecosystems.

For now, PEZA’s focus remains on closing the year strong, with the upcoming board meeting poised to deliver a final push toward the ₱300-billion milestone. The authority’s success hinges on maintaining investor confidence amid global economic uncertainties, particularly as geopolitical tensions and trade policy shifts continue to reshape supply chains.

With China’s manufacturing dominance facing increasing scrutiny, the Philippines’ ability to deliver stable infrastructure, skilled labor, and favorable tax regimes will determine whether its record-breaking year translates into sustained long-term growth.

As PEZA prepares for next week’s board meeting, the agency’s leadership remains optimistic about the Philippines’ role in the next wave of global manufacturing. Panga’s remarks underscore a pivotal moment for the country’s economic transformation—one that could redefine its position in the regional and global economy.