Decline in mfg investments bottoms out – PEZA

The decline in manufacturing investments has somehow bottomed out as of September prompting the Philippine Economic Zone Authority (PEZA) to be optimistic to finish the year with at least 8 percent growth in new capital inflows.

PEZA Director General Lilia B. De Lima reported that its registered projects as of September 11 this year posted a negative 2.7 percent to 138.787 billion from 142.634 billion in the same period last year.

While the new figure was still in the negative territory, De Lima noted that it has improved from a steep decline of 19 percent previously.

“The decline is now limited to 2 percent. I believe investments are picking up. We expect we could grow 8 percent at the end of the year,” De Lima said. This could be a recovery from last year’s flat growth of less than 2 percent as expansions failed to materialize following the worst port congestion to hit Metro Manila.

Other economic indicators also showed some encouraging developments with number of projects approved improved by 3.63 percent to 428 from 413 in the same JanuarySeptember period.

Employment figure as of July also stood at 11.31 percent higher to 1.233 hired workers at the various economic zones from 1.108 million last year.

Also, De Lima expects an end in the decline of the export sectors in the coming months. As of July to $25.163 billion, PEZA exports posted a modest 0.05 decline from $25.176 billion last year.

De Lima also noted that the port situation in Manila has been back to its normal levels. De Lima has also conveyed to the investors and its locators in the various economic zones the assurance by other government agencies that last year’s nightmare at the ports will not happen again.

PEZA has also been proactive with the Confederation of Truckers Association of the Philippines to ensure that its locators get fair trucking rates, especially that oil prices have gone down and port congestion can no longer be used as excuses for them to maintain higher fees. (BCM)