Investment pledges registered by the Philippine Economic Zone Authority (Peza) dropped by 58.6 percent in the first four months of the year, as a top official said investors felt they were not protected under the current business climate.

Official data showed pledges reaching P39.09 billion in the first four months, down by 58.6 percent from the P94.39 billion a year ago. This is the biggest year-to-date drop in pledges registered by Peza so far.

While Peza, an attached agency of the Department of Trade and Industry, seeks the retention of incentives for ecozone locators, the DTI supports tax rationalization.

Peza Director General Charito Plaza said investors had the impression they “are not protected” amid a move to rationalize the tax perks used to attract investments.

“The investors’ impression is that they’re not protected and assured of stability and support from the government,” she said in a text message to the Inquirer.

“It’s the uncertainties that created apprehensions,” she added.

Despite the drop in pledges, there was still a slight increase in potential new jobs.

Data showed a 5.2-percent increase in potential new jobs once these investments become operational to 29,594 jobs from 28,141 jobs a year ago.

Peza does not give year-on-year data on investment pledges. However, their year-to-date figures have been on a decline since February 2018 when compared to year-ago levels.

Plaza had pinned the blame for this on the proposed second comprehensive tax reform package, which has been filed in Congress under House Bil 7458.

Meanwhile, investment pledges registered under the Board of Investments (BOI) — which is also under DTI — grew by 27.8 percent to P195.72 billion in January to April from P153.11 billion a year ago.

Peza and BOI pledges combined dipped 5.1 percent in the first four months of the year to P234.81 billion from P247.51 billion a year ago.