PEZA boosts ecozone drive to lure AI, green tech
PEZA Director General Tereso Panga meets with PEZA Board Chair and Trade Secretary Cristina Roque on 18 June to discuss the agency’s performance from January to May 2025 and align strategies to boost investment through ecozones.Photo courtesy of Philippine Economic Zone Authority
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The Philippine Economic Zone Authority (PEZA) is ramping up its nationwide campaign for economic zone development, with a focus on converting newly proclaimed ecozones into real investments—particularly in rural areas.
In an interview with , PEZA Director General Tereso Panga said recent policy reforms and more stringent requirements are helping ensure that proclaimed zones lead to on-ground development. The agency is also targeting high-value sectors such as artificial intelligence (AI), green technology, and research and development.
“Applicant developer of ecozone is required to have a prospective locator in the proposed ecozone,” Panga said.
“This has now become a precondition to the approval of the PEZA and the Office of the President. This more or less ensures that there will be real and on-ground development.”
The agency’s shift in strategy aligns with national efforts to drive growth outside Metro Manila.
Panga cited Administrative Order No. 18, which placed a moratorium on new ecozones in the capital and directed national agencies to fast-track support for zones in the countryside. Agencies such as the Department of Information and Communications Technology (DICT), Department of Transportation (DOTr), Department of Trade and Industry (DTI), Department of Public Works and Highways (DPWH), and Technical Education and Skills Development Authority (TESDA) have been tasked with building human capital and improving infrastructure in regional areas.
“Once an ecozone is proclaimed, it becomes a ready location for investors wanting to produce for the domestic or the world market by utilizing the ecosystem provided by PEZA in terms of ease of doing business,” Panga said.
PEZA also noted that under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, developers must begin construction within a set timeframe after proclamation or risk losing their incentives—a move aimed at curbing speculative developments.
“Ecozones have always been catalysts of economic progress,” Panga added, citing CALABARZON and Cebu as models of regional growth.
Panga said PEZA is now aiming to attract Tier 3 industries under the proposed CREATE MORE law, which would provide extended tax incentives for innovation-driven sectors such as AI, biotechnology, renewable energy, and green manufacturing.
“These industries have embraced sustainable development as a form of competitiveness,” he said.
“To reduce carbon footprints in their production processes, companies now require renewable energy. In private ecozones, companies have adopted the use of renewable energy through PEZA policies.”
The agency is currently rolling out its Eco-Industrial Development (EID) and Circular Economy frameworks to promote climate-smart zones. It is also backing the growth of Knowledge, Innovation, Science and Technology (KIST) parks to serve as hubs for R&D and advanced innovation.
PEZA’s fast-tracked efforts have led to the approval of four new ecozones in the first half of 2025. These include two major expansions of the Lima Technology Center in Batangas and new IT parks in Bacolod City and Tagbilaran, Bohol.
The Lima expansions are projected to generate over P1.4 billion in investments, while the new IT parks in Bacolod and Tagbilaran are expected to bring in more than P1.2 billion combined and create thousands of jobs in the Visayas.
To date, 32 new ecozones have been proclaimed under the Marcos administration, with total investment pledges reaching P13.4 billion.
