Can the Philippines become the next big investment hub for Singaporean companies? The Philippine Economic Zone Authority (PEZA) certainly thinks so.
With generous incentives and strategic opportunities, PEZA aims to attract more Singaporean investments into its ecozones, which are designed to boost the country’s economy and create more jobs for Filipinos.
Boosting Investments in Philippine Ecozones
PEZA is aggressively courting Singaporean businesses to invest in the Philippines’ economic zones, or ecozones, which offer competitive benefits like tax incentives and lower power rates.
During the 4th Philippines-Singapore Business and Investment Summit (PSBIS) held recently in Singapore,
PEZA Director General Tereso Panga highlighted these advantages, noting that some ecozones provide power rates lower than the national average, helping industries like semiconductors and electric vehicles thrive.
“We are aware of the requirements of these strategic investments,” Panga stated, “and our ecozone model is ready to address its most pressing need: access to clean, stable, and cost-competitive energy sources.”
Why Singaporean Companies Are Interested
Singaporean companies have already made their mark in Philippine ecozones. Well-known firms like Dyson, Amkor, and New Kinpo are among the 160 companies from Singapore that have invested around $2 billion and created 127,000 direct jobs for Filipinos.
These companies see the Philippines as a great location for manufacturing, research, and development due to its skilled workforce, strategic location, and favourable business environment.
At the summit, Panga also met with executives from Hi-P Singapore and ST Engineering. Hi-P, which manufactures products for global brands like Amazon and Tesla, operates a facility in Batangas and is considering further expansion.
ST Engineering, a tech giant involved in smart city solutions, aerospace, and defence, is also exploring investment opportunities in the Philippines.
Advantages of Investing in PEZA Ecozones
For companies looking to expand in Southeast Asia, PEZA ecozones offer several compelling benefits:
- Generous tax incentives through the CREATE MORE bill
- Lower industrial power rates compared to other parts of the Philippines
- Access to skilled Filipino workers and proximity to key Asian markets
- Strong government support for high-impact sectors like electronics and pharmaceuticals
These advantages make the Philippines an attractive option for businesses seeking cost-effective and sustainable growth.
Future Prospects and Collaborations
PEZA isn’t just focusing on traditional industries. It’s also looking to develop the pharmaceutical sector by collaborating with Singapore’s Agency for Science, Technology, and Research (A*STAR).
By learning from Singapore’s model, PEZA aims to create a more advanced ecosystem for biomedical research and development.
According to Panga,
“We look up to Singapore as a model economy and big brother in ASEAN, whose learnings will help propel our country’s economic prosperity.”
With Singaporean investments continuing to grow, PEZA’s push for stronger partnerships could accelerate the development of the Philippines as a major economic player in Southeast Asia.
Sources: THX News & Philippine News Agency.
