“The challenge is how to provide readily available areas (for businesses),” Panga said.
In a bid to stimulate economic growth across various regions in the country, the Philippine Economic Zone Authority (PEZA) announced plans to approve registration of 30 new ecozones this year at an estimated development cost of P60 billion.
PEZA Director General Tereso Panga said the agency is eyeing more ecozones in new growth areas to further spur countryside development and help small and medium enterprises (SMEs) form a seamless and effective value chain.
Each ecozone has a minimum area of 25 hectares and entails development costs ranging from P1 billion to P2 billion. The new ecozones will be located in Calabarzon, Region 3, Cebu, and Mindanao.
Panga added that in Mindanao, the target areas are agriculture and green ores such as nickel.
“During the site selection of investors, if we don’t have land to offer, especially ecozones, easily, we lose out to competitors in the region. We must be able to provide areas that match their type of business,” Panga said.
He also emphasized that increasing the number of ecozones could significantly enhance production and economic activities within the country. The establishment of these ecozones is expected to create thousands of jobs and boost the Philippines’ export capacity.
The new ecozones are projected to create thousands of jobs, directly benefiting local communities. For instance, recent approvals for three ecozones are expected to generate around 600 jobs immediately.
Under President Ferdinand R. Marcos Jr.’s administration, 27 ecozones have already been proclaimed, with total investments estimated at PHP 9.715 billion.
In 2024 alone, 16 new ecozones were established, reflecting a significant push for economic expansion under the vision of President Marcos.
“It is my hope that you will continue to keep the trust and confidence of our stakeholders, embark on endeavors that will entice more partners from the private sector to do business in the country and that their investments will always be protected and supported by the government. With PEZA leading the way, I am certain that we can make the Philippines a top destination for new and existing businesses and investments,” President Marcos Jr. said.
He added that his administration’s vision for ecozone development aims to enhance not just local economies but also to position the Philippines as an attractive destination for foreign direct investments as well.
Panga thanked the President for his support of the agency in fulfilling its mandate.
“We thank President Marcos Jr., for his unrelenting support to PEZA and to our mandate. PEZA continues to share the same vision of the President’s overarching goal Para sa Bagong Pilipinas by promoting economic zones, attracting strategic industries and productivity-enhancing investments, and accelerating countryside development.”
To date, there are 427 operating economic zones in various locations across the Philippines, all part of President Marcos’ push for nationwide economic growth.
This year, PEZA approved P214.18 billion worth of investments inside their economic zones, further aligning with President Marcos’ mission of fostering a sustainable and inclusive economy.
Meanwhile, PEZA is also planning the development of information technology parks in next-wave cities and municipalities that will cater to the information technology business process management industry, a key focus of President Marcos’ administration.
In an earlier interview, Panga said the ecozone authority has verified the link between high economic activity in a local government unit (LGU) and the presence of an ecozone.
“LGUs hosting ecozones have a higher level of progress, because ecozones bring in jobs and business opportunities to the area,” he said.
The Director General also explained that ecozones have a positive impact on LGUs, citing that the nine richest cities outside Metro Manila, except Batanes, are home to a number of PEZA ecozones.
“We see the same trend in the case of other leading and most progressive cities and municipalities in the country hosting ecozones,” PEZA said.
He said Baguio, which is home to the government-owned Baguio City ecozone, has registered a per capita GDP of PHP 420,016. The Baguio ecozone is host to long-time locator Texas Instruments, the electronics firm that designs, manufactures, tests, and sells analog and embedded semiconductors in the global market.
“The reinstatement of the ecozone program under the MTDP (medium term) Development Plan gives us confidence to reach out to investors,” Panga noted.
“The creation of ecozones will… maximize investments and promote industrial dispersion, especially outside metropolitan areas. We are also already proposing the almost 30-year-old PEZA Charter for amendments in order to meet the new challenges that business evolution has brought about. It is imperative that we are able to keep up with the newest trends, technology, and policy, as well as new business paradigms that have been developed. We need to be competitive!” he said.
“Further, the ecozones will be integrated into the local economy by relaxing the requirements, facilitating the free flow of parts, components, and other inputs, and increasing open trade between zone locators and firms outside the zones,” he added, a vision consistent with President Marcos’ goals.
