The Philippine Economic Zone Authority (PEZA) expects continued influx of investments into the country, following interest from several local government units (LGUs) in establishing new economic zones (ecozones), which are key drivers of trade and investment growth.

PEZA Director General Tereso Panga said the investment promotion agency has received ecozone proposals from 12 cities and municipalities across the country, including Naga City, San Pablo City, Pagudpud, and Digos City.

“We certainly welcome these new host LGUs to join the PEZA network of 427 operating ecozones—and counting—all over the country,” Panga said in a social media post.

Panga added that PEZA conducted a visit last week to three proposed ecozones in San Andres, Quezon; Pamplona, Camarines Sur; and Libon, Albay for due diligence and consultation meetings.

He said these ecozones provide port connectivity among the ports of San Andres, Pasacao, and Pantao, which face the Ragay Gulf.

“This will stimulate regional economic growth as the goods produced and raw materials needed in the ecozones can be facilitated through barge deliveries,” Panga explained.

“Moreover, these ports can serve as vital gateways for domestic and international commerce, tourism, and inter-island transportation,” he added.

Panga also said that he recently engaged with the local government of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to guide their ecozone objectives.

With rising interest in ecozones, Panga said he expects the momentum to continue, with more LGUs participating to integrate their economies into global value chains.

Under the Philippine Development Plan (PDP) 2023 to 2028, which serves as the country’s economic roadmap, the PEZA is tasked to expedite the implementation of the ecozone transformation roadmap.

The roadmap expands the types of special economic zones that can be registered under PEZA to include agro-forestry, defense, and halal, among others.

The creation of ecozones is seen as a means to maximize investments and promote industrial dispersion, especially outside the country’s metropolitan areas.

Ecozones, which are established once proclaimed by the president, provide benefits to locators such as relaxed requirements, free flow of parts, components, and other inputs, and open trade with companies within and outside the ecozone.

“The Philippine economy could be boosted if business activities flourish in the ecozones as well as their linkages in the domestic market,” said Panga.

“This is where PEZA and host LGUs can collaborate in promoting and facilitating ecozone investments to accelerate our countrywide development,” he explained.

As new ecozones are established, he said LGUs must implement an investment code and integrity pledge, alongside digital transformation and development of human resources, infrastructure, and local supply chain, to enhance their capacities to attract investments.

Panga said these reforms will play a crucial role as more LGUs vie to host ecozones to generate additional income, jobs, livelihood, and other economic opportunities for their constituents.

Citing data from the Philippine Statistics Authority (PSA), he pointed out that it is a “proven fact” that ecozones are a boon to their community, as the top 10 performing LGUs in the country are hosting these hubs.

“The bigger the number of ecozones and locator companies in a certain city or municipality, the higher is its level of socio-economic progress as compared to those LGUs that do not host any ecozones,” he said.

So far, President Ferdinand “Bongbong” Marcos Jr. has proclaimed a total of 34 new and expanded ecozones, amounting to ₱14.7 billion in capital investments.

Panga earlier said that the agency is targeting the proclamation of up to 30 new ecozones before the year ends.

During the first seven months of the year, investment approvals by PEZA reached ₱90.96 billion, more than doubling the ₱45.48 billion approved during the same period last year.