The Market Monitor Minding the Nation's Business
The Philippine Economic Zone Authority (PEZA) highlighted the vital role ecozones play in spurring development across the country, noting that nine of the 10 wealthiest local government units (LGUs) in the Philippines are home to PEZA zones.
In a press briefing in Pasay City recently, PEZA Director General Tereso Panga shared that the establishment of ecozones significantly contributes to economic growth and the improvement of living standards in areas outside Metro Manila.
According to data from the Philippine Statistics Authority (PSA), the top 10 richest LGUs in the country are the cities of Baguio, Cagayan de Oro, Lapu-Lapu, Iloilo, Cebu, Mandaue, and Davao, along with the provinces of Bataan, Laguna, and Batanes.
With the exception of Batanes, all the wealthiest LGUs host a significant number of ecozones under PEZA.
“We see a direct correlation that the more an LGU is hosting ecozones, the better, the higher is the level (of the development),” Panga explained.
“This means a lot to us. I mean, this is as low-hanging as a growth strategy,” he added.
Panga also emphasized that the Philippine Development Plan 2023-2028’s inclusion of ecozone programs will enhance investments and promote industrial growth, particularly in rural areas.
Between 2023 and 2024, President Ferdinand R. Marcos Jr. declared 27 new ecozones, including five expansion projects. Most of these ecozones are focused on manufacturing and information technology (IT) parks, with total investments amounting to PHP9.18 billion.
Notable ecozones approved in 2023 include: Robinsons Cyberpark Bacolod and Lopue’s Mandalagan IT Center in Bacolod City; Felcris Centrale IT Park in Davao City; Philtai Central Luzon Industrial Park in Magalang, Pampanga; ECCO 4 Building in Baguio City; Naga City Industrial Park in Naga City; and Marina Town Dumaguete in Negros Oriental. Expansion projects also include Lima Technology Center in Batangas, Hermosa Ecozone Industrial Park in Bataan, and Kamanga Agro-Industrial Economic Zone in Sarangani.
For 2024, new ecozones and expansions approved by President Marcos include Sevina Park Commercial in Biñan City; ArcoVia City in Pasig City; MetroCas Industrial Estates-SEZ in Tanza, Cavite; Taft East Gate in Cebu City; Tupi IT Park in South Cotabato; Victoria Industrial Park in Tarlac; The Grid in Iloilo City; NDC Industrial Estate in Cavite; TARI Estate in Tarlac; and Xentromall Antipolo in Rizal. Expansion projects for Gateway Business Park in Cavite and West Cebu Industrial Park in Cebu were also greenlit.
The U.S. Department of State also recently praised PEZA for its investment-friendly environment, citing the agency’s transparency, efficiency, and no red tape policy as key factors contributing to a favorable investment climate in the Philippines.