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.