MANILA — Investment commitments approved by the Philippine Economic Zone Authority (PEZA) declined in the first quarter of 2026 as global uncertainties, including the ongoing Middle East fuel crisis, weighed on investor activity.

PEZA reported that it approved P45.525 billion worth of investment pledges from 78 new and expansion projects from January to March this year. This is lower than the P58.947 billion in approved investments recorded in the same period last year.

The investment promotion agency described the result as a “calibrated pace” reflecting shifting global conditions.

PEZA Director General Tereso Panga expressed confidence that the agency could still meet its full-year targets despite external risks, but acknowledged that prolonged geopolitical tensions could affect investment decisions.

“I’m still confident that we will be able to meet our targets for this year based on our current assessment. However, if the conflict in the Middle East continues, I certainly believe that there will be global adjustments in the investment decisions of global companies,” Panga said.

He noted that investors respond differently to global shocks, adding that long-term investors tend to continue with planned projects despite uncertainties.

“We are ready for this and we expect it before it even happens. There are two kinds of investors: the first kind is the one that prepares for events like this; the other, wait for the results. I believe our type of investors are long-term and belong to the first kind,” he added.

Despite the decline in value, PEZA said the number of approved projects rose to 78 from 66 a year earlier, reflecting what it described as a more active investment pipeline.

“This performance reflects sustained investor confidence in the ecozones and in the Philippines as a competitive investment destination, even as global economic conditions remain volatile due to rising energy costs, supply chain adjustments, and geopolitical tensions,” Panga said.

The approved projects are expected to generate USD10.865 billion in exports and create 8,496 direct jobs.

By sector, manufacturing accounted for 30 projects, followed by ecozone development with 16, IT-BPM with 11, facilities with 10, logistics with six, tourism with two, and utilities with one.

PEZA said most investments were concentrated in Luzon with 67 projects, followed by the Visayas with nine and Mindanao with two, in line with efforts to promote more balanced regional development.

The agency added that investor interest came from a diversified base, led by firms from South Korea, Indonesia, the British Virgin Islands, Taiwan, and Japan.