THE Philippine Economic Zone Authority (Peza) will soon be rolling out credit facilities for company locators and ecozone developers in a bid to make the country an attractive investment destination.
Peza Director General Charito B. Plaza said last Tuesday that the investment promotion agency is currently working with the Bangko Sentral ng Pilipinas and foreign and local banks in setting up lending windows for the investors.
“Soon, we will see in our banks a desk that will serve credit facility needs of our investors, both Filipinos and foreign,” she said during a virtual event.
Plaza said such initiative will help Peza attract more investors because it boosts efficiency in terms of doing business in the country.
“We also have that objective to address the efficiency factors. The Philippines is blessed with rich human and natural resources. So what do we lack? The efficiency factors,” she explained.
In March, the regulator of ecozones hosted a forum where it invited several banks and financial institutions. It aimed to establish credit facilities for ecozone developers, export enterprises, suppliers, logistics, transportation hubs, utilities facilities, public works and information technology infrastructures, among others.
In addition, Plaza shared that they seek to address the local supply chain.
“If we are complete in our supply chain, it would surely attract more investors to the country as it will lower the cost of the production.”
This sentiment is supported by Clark Development Corp. (CDC) President and CEO Manuel R. Gaerlan, who supports the parts localization program for the electronics and semiconductor industry. “One of our programs is to invite the developers here rather than importing only the finished products,” he said.
Gaerlan detailed the current situation: the minerals, such as nickel, are exported to other countries for processing and the finished product will be “reimported” in the Philippines at a higher cost.
“We want to cut that … middle-man,” he said, seeking the help of the government to invite companies to set up their facilities locally.
Meanwhile, Peza announced plans to hold a forum every month to market the investment opportunities in the ecozones. Plaza said they are talking to investors abroad in a bid to secure strategic and big-ticket investments.
Peza said officials will be meeting with Saudi Arabian investors this month as it aims to expand its reach in the Middle East.
In the first quarter, Peza approved 57 projects amounting to P25.382 billion, which showed a 53.87-percent year-on-year growth. These investment pledges are expected to generate 5,601 job opportunities.
The investment pledges cover various interests, including export projects (22), information technology (IT) projects (15), logistics (3), utilities (1) and tourism enterprise (1). The other eight are for economic zone development projects.
Image credits: PIA CAR