The Philippine Economic Zone Authority (PEZA) is moving to overhaul its landmark law as it marks 31 years, in a bid to sharpen the country’s investment edge amid rising competition in Southeast Asia.
Republic Act No. 7916, enacted in 1995, transformed traditional export processing zones into a network of diverse economic hubs, particularly in rural areas. Since then, it has seen only one update—Republic Act No. 8748, which fine-tuned incentives and administrative procedures.
PEZA now says the law is due for a major modernization.
Proposed amendments would fast-track the approval of new ecozones, broaden their scope to include climate-resilient and green industrial parks, digital innovation hubs, and specialized complexes like aquamarine, aerospace, and Halal zones.
The reforms also promise enhanced tax and non-tax incentives, simplified business procedures, and institutionalized hybrid work arrangements for IT-BPM firms. Budgetary autonomy may expand as well, potentially under the Office of the President.
“PEZA is committed to bringing development closer to communities and creating more opportunities for every Filipino,” Director General Tereso O. Panga said, highlighting collaboration with lawmakers and investors.
The amendments are timely. While PEZA has long been a magnet for foreign direct investment, neighboring ASEAN economies are aggressively courting tech, green, and niche industries. Streamlined processes and new sectoral zones could help the Philippines retain high-value investors and tap emerging markets in climate technology, aerospace, and digital services.
Investment watchers note that faster approvals and clearer incentives are critical to compete with Vietnam, Thailand, and Indonesia, which have all introduced aggressive incentive packages in recent years.
If successful, the legal overhaul could position the Philippines not just as an investor-friendly destination, but as a regional hub for innovation-driven, sustainable industries.
