RP economic zone investment up in 2000 despite troubles

RP economic zone investment up in 2000 despite troubles

MANILA (AP): Investment in Philippine special economic zones
nearly doubled last year to 74 billion pesos (US$1.5 billion)
despite economic and political problems besetting the country,
authorities reported on Wednesday.

Lower tax and other incentives in the economic zones boosted
investments there sharply last year from the 38.8 billion pesos
($736 million) registered in 1999, according to data released by
the Philippine Economic Zone Authority.

More than half, or 40.4 billion pesos ($808 million), of the
investments for the period went to new or expansion projects.
Some 24.8 billion pesos ($496 million) were investments for new
export enterprises while 1.2 billion pesos ($24 million) went to
information technology enterprises.

In contrast to the surge of investment in economic zones,
fewer investors registered with the Board of Investments, the
main government agency that regulates, promotes and oversees
investment flows in the country.

As earlier reported, investments registered with the board in
January to November 2000 fell 63 percent to 38.7 billion pesos
($774 million) from 106 billion pesos ($2.1 billion) in the same
period the year before

Overall investments in the Philippines are expected to have
fallen in 2000 as many investors chose to wait for prevailing
political problems in the country to settle down before injecting
more capital into the country.

President Joseph Estrada is on impeachment trial on charges of
mass corruption. Lawyers say they hope the trial will end in
January.