PEZA expresses support for long-overdue amendments to law governing ecozones

THE Philippine Economic Zone Authority (PEZA) requested amendments to the PEZA Law that will boost the attractiveness of economic zones to investors.

Speaking at the House Joint Committee on Economic Affairs on Tuesday, PEZA Director General Tereso O. Panga said Republic Act No. 7916 or the Special Economic Zones Act of 1995 requires updating, having been amended only once since it passed in 1999.

“Amid an evolving global investment environment and intensifying regional competition for foreign direct investment (FDI) and export markets, PEZA seeks to update its governing law to remain agile, competitive, and future-ready,” he was quoted as telling legislators in a PEZA social media post.

Mr. Panga has said that PEZA is looking to restore its authority to issue fire safety inspection certificates and certificates of origin, expedite the ecozone proclamation process, and venture into other types of ecozone.

PEZA said amendments would allow it to attract high-value and innovation-driven investments; sustain export growth; generate jobs; and enhance ease of doing business.

It also expressed support for House Bill (HB) No. 5640 — filed last year by Antique Rep. Antonio Agapito B. Legarda, Jr. — which contains proposed amendments. 

The bill proposes to align PEZA’s incentive schemes with provisions of the Corporate Recovery and Tax Incentives for Enterprises Act.

The bill, a copy of which was obtained by BusinessWorld, also seeks to expand the types of ecozones to areas focusing on green technology, digital innovation, and the creative industries.

“(The proposed amendments to the PEZA law) could help attract more FDI and locators, in view of evolving new technologies such as artificial intelligence, machine learning and emerging requirements on ESG (environmental, social, and governance),” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said via Viber.

For 2026, PEZA is hoping to approve P300 billion worth of investment pledges, which would exceed the actual 2025 approval total by 15%.

In its first board meeting of 2026, PEZA approved 18 new projects in January, valued at a combined P12.86 billion. — Beatriz Marie D. Cruz