The Philippine Economic Zone Authority (Peza) is setting its sights on a significant investment milestone for 2026, with a target of P300 billion, marking a 15% increase from the P261 billion approved in 2024. This ambitious goal reflects sustained growth under the Marcos Jr. Administration, which has seen an average annual investment growth rate of 23% since 2022.
Driving Forces Behind Investment Growth
Peza's investment strategy for 2026 is heavily focused on key sectors. Manufacturing is expected to lead the charge, accounting for 60% of the growth, followed by ecozone development at 25%, and IT-BPM services contributing 15%. This diversified approach aims to bolster the country's economic resilience and competitiveness on the global stage.
Top Foreign Direct Investment Sources
To achieve these targets, Peza is eyeing foreign direct investments from several key countries. The best bets include Japan, the United States, the United Kingdom, South Korea, Singapore, China, and Taiwan. These nations are seen as crucial partners in driving the Philippines' economic expansion and technological advancement.
Ambitious Export Targets and Sectoral Growth
In line with the Philippine Development Plan, the country is targeting exports of goods and services worth USD 116 to 120 billion in 2026. Traditional strongholds like electronics and IT-BPM are expected to continue their growth trajectory, alongside key food exports such as coconut, banana, and pineapple products.
Developing New Export Winners
Peza is also actively working to identify and nurture new export sectors. Industries like garments, footwear, and travel goods or handbags showed strong momentum in 2025 and are viewed as promising contributors moving forward. Additionally, the personal care sector has gained attention, with Philippine brands demonstrating global potential through successful participation in events like Cosmoprof 2025.
Unique Filipino flavors, such as ube, are anticipated to see strong demand. These flavors not only evoke nostalgia among overseas Filipinos but also offer novelty to global consumers, enhancing the identity and appeal of Philippine food exports worldwide.
Free Trade Agreements and Strategic Initiatives
The Marcos administration has been aggressive in negotiating Free Trade Agreements (FTAs), achieving the highest number of signed FTAs to date. These agreements are designed to provide Philippine exporters with access to more markets, opening wider opportunities for products globally.
These efforts collectively aim to strengthen the country's export base, diversify opportunities for micro, small, and medium enterprises (MSMEs), and showcase Filipino products on the international stage.
BOI Registration Targets and Sectoral Shifts
For 2026, the Board of Investments (BOI) has set an investment registration target of Php1 trillion. In recent years, registrations were primarily driven by Renewable Energy (RE) projects, which involve high capital costs, especially for offshore wind power.
However, this year, BOI registrations are expected to shift focus towards Mineral Processing, Infrastructure (including Digital Infrastructure), and High-value Manufacturing. These sectors typically have lower investment costs per project compared to RE, leading to a targeted lower overall BOI registration for 2026.
For RE and other sectors, the strategy will prioritize ensuring that previously registered projects are fully implemented towards commercial operations, emphasizing efficiency and follow-through in development initiatives.
