The Philippines’ progression to upper-middle income country (UMIC) status must push the government to commit to reforms that improve the ease of doing business in the country and encourage investment inflows, according to the Philippine Economic Zone Authority (PEZA).

In a social media post, PEZA Director General Tereso Panga said the country’s upgraded income status under the World Bank is a signal that it has entered a new stage of economic development.

He said the UMIC level makes the country more attractive to both foreign and domestic investors, especially since its stronger macroeconomic profile helps reduce perceived risks.

“[But] with it, a higher level of expectation from investors, enterprises, and global partners,” Panga said.

The PEZA chief said the UMIC classification would raise expectations for faster government services, more reliable infrastructure, clearer regulations, and a more predictable business environment.

For these expectations to be met, he said the government’s primary focus should be ensuring that ease of doing business is not just a compliance exercise but a national competitiveness strategy.

He stressed the need for government permits to be processed faster, alongside better coordination of inter-agency processes and interoperability of digital systems.

At the same time, Panga said the government should take a more strategic approach to infrastructure development by planning projects around industry needs.

“Power, water, transport, telecommunications, and logistics must be reliable enough to support the industries we want to attract,” he added.

For the investment promotion agency, Panga said PEZA will continue to strengthen its ecozone model to maintain its upward trajectory in investment approvals.

Based on PEZA data, the agency sustained an annual average growth rate of 22.9 percent from 2022 to 2025, approving more than ₱930 billion in total investment pledges.

Panga noted that the new income status would likely bring in more investments that would allow the Philippines to move up the value chain, particularly in high-value sectors such as advanced manufacturing, semiconductors, electronics, logistics, and artificial intelligence (AI).

For the year, PEZA’s investment approvals in the first half nearly doubled to ₱140.69 billion from ₱72.36 billion approved in the same period last year.