Barren lands transformed into bustling industrial parks. Rural towns evolving into economic hubs. Generations of Filipinos finding opportunities at home instead of seeking work abroad. These transformations across the Philippine landscape over the past three decades share a common catalyst: the Philippine Economic Zone Authority (PEZA). As this pivotal agency marks its 30th anniversary, its impact extends far beyond investment statistics and economic projections—it has fundamentally reshaped the nation’s economic destiny.
Since its inception in 1995, PEZA has been at the forefront of fostering industrial growth, attracting foreign investments, and driving inclusive development across the country. As the agency celebrates three decades of success, its journey underscores how strategic ecozone development has transformed local communities and positioned the Philippines as a competitive global investment destination.
A legacy of economic growth
PEZA emerged from the former Export Processing Zone Authority (EPZA) with an ambitious mission: create a more dynamic framework to attract foreign investments and boost export-oriented industries. Its strategy of offering compelling fiscal incentives—income tax holidays, zero VAT on local purchases, and duty-free importation—has proven remarkably successful at making the Philippines an attractive destination for offshore activities and export-oriented industries.
Under President Ferdinand Marcos Jr.’s administration, this momentum has only accelerated. Since 2022, 27 new zones have been proclaimed, with 16 ecozones established in 2024 alone. These developments have attracted PHP 214.18 billion worth of investments this year, creating thousands of jobs in communities that desperately needed economic revitalization.
In Baguio, the per capita GDP has risen to PHP 420,016—a direct result of industrial development in the region, according to PEZA Director General Tereso Panga.
Empowering local communities
The impact of PEZA extends far beyond investment figures and economic statistics. For communities hosting ecozones, the transformation is tangible and deeply personal.
Take the First Philippine Industrial Park in Batangas, where over 150 companies generate USD 3.5 billion in annual export sales. Behind these impressive numbers are thousands of Filipino workers who have found stable employment close to home, eliminating the need to seek opportunities abroad or in congested urban centers.
Partnerships with global giants like Texas Instruments in Baguio have created ripple effects throughout local economies. Small businesses have sprung up to serve the needs of workers and companies, from food stalls and transportation services to equipment suppliers and maintenance providers.
The physical landscape has evolved alongside these economic shifts. New roads, improved utility systems, and modern facilities have been developed to support industrial operations but end up benefiting entire communities. For many rural areas, ecozone development has meant access to infrastructure that might have taken decades to arrive otherwise.
The power of partnership
No great achievement happens in isolation. This philosophy has driven PEZA to forge strategic collaborations with industry leaders like ICTSI, Toyota, and Amkor Technology.
These partnerships have created mutually beneficial ecosystems where global expertise meets Filipino talent. Toyota’s presence has strengthened the automotive manufacturing sector, while Amkor Technology has helped establish the Philippines as a significant player in semiconductor exports.
PEZA’s collaborative approach extends to government agencies as well. Working hand-in-hand with the Department of Trade and Industry (DTI) and Department of Information and Communications Technology (DICT), PEZA has modernized its operations through initiatives like synchronizing ICT systems and implementing digital tools such as electronic Letters of Authority for shipment facilitation.
Innovation for the future
As it enters its fourth decade, PEZA isn’t content to rest on past achievements. The agency is pioneering new directions in ecozone development, moving beyond traditional manufacturing to embrace emerging industries.
Renewable energy parks, biotech centers, aquamarine ecozones, knowledge innovation parks (KIST), and mega pharmaceutical zones represent PEZA’s response to evolving economic trends. These specialized zones are designed to nurture industries that will define the Philippines’ economic future.
PEZA’s recent participation in the Philippines Healthcare IT-BPM Service US Roadshow demonstrates its proactive approach to promoting investment opportunities abroad. Held alongside the Healthcare Information Management Services Global Conference in Las Vegas in March 3-7, this roadshow showcased the Philippines’ capabilities in healthcare IT services—a growing sector within PEZA zones.
A sustainable path forward
“Eco-zoning towards inclusive and sustainable development” isn’t just a catchy slogan for PEZA—it’s a guiding principle that shapes everything the agency does. With ambitious plans to exceed its annual investment target of PHP 250 billion, PEZA is leveraging the recently signed CREATE MORE Act (RA No.12066) to enhance incentives for investors while ensuring that development benefits all Filipinos.
The agency is particularly focused on expanding ecozone development in Mindanao, with special emphasis on agriculture and resource-seeking investments, including environmentally responsible mining operations.
With 427 operating ecozones spread across the archipelago, PEZA continues its mission to reduce trade deficits while creating meaningful employment opportunities for Filipinos of all backgrounds.
As PEZA celebrates this milestone anniversary, its legacy is written not just in economic statistics but in the transformed lives of countless Filipinos. From rural communities empowered through job creation to global partnerships driving industrial innovation, PEZA has become an essential pillar of national progress. With its commitment to sustainability and inclusive growth, the agency is well-positioned to keep writing new chapters in the Philippines’ economic success story for decades to come.
