PEZA urges charter update to enhance competitiveness for foreign investments

The Philippine Economic Zone Authority (PEZA) is seeking amendments to its nearly three-decade-old charter to strengthen its ability to attract foreign investments, citing rising competition within Southeast Asia.

Jenny June Romero, head of the agency’s legal affairs group, told lawmakers that updating the Special Economic Zone Act of 1995 would allow PEZA to adopt policies more attuned to current global trade conditions. Speaking on behalf of Director General Tereso Panga, she said that enhancing the agency’s authority was essential to maintaining competitiveness.

“We need to keep it true to the times because we’re up against other economies promoting their own respective economic zones in attracting more FDI into their countries,” Romero said during a House Committee on Economic Affairs hearing.

The proposal comes as the United Nations Conference on Trade and Development (UNCTAD) reported that the Philippines attracted USD8.94 billion in net FDI inflows in 2024, up 38.5 percent from the prior year but still ranking sixth in ASEAN. Singapore remained the top recipient at USD143.35 billion, followed by Indonesia, Vietnam, Malaysia, and Thailand.

Among the key reforms sought by PEZA are the authority to designate ecozones directly through its board, streamlined requirements for investor visas, and updated provisions to avoid overlapping with other agencies in areas such as fire safety and environmental compliance. The agency also wants to expand the definition of ecozones to include new industries such as aquamarine, aerospace, biotech, logistics hubs, creative industries, and pharmaceuticals.

Romero said the proposed amendments would align with provisions of the CREATE MORE law, while simplifying processes for investors. She added that reinforcing PEZA’s authority would reduce delays and contradictory interpretations of regulations, making the Philippines a more attractive destination for global businesses.

From January to August, PEZA approved %u20B1105.83 billion worth of investments, a 72 percent increase year-on-year. These approvals covered 179 new and expansion projects expected to generate over 40,000 jobs and USD3.38 billion in export revenues.

Since its establishment in 1995, PEZA has facilitated %u20B14.57 trillion in investments across 429 ecozones, creating 1.7 million direct jobs and generating USD1.12 trillion in exports. Electronics and semiconductor manufacturing accounted for over a third of these inflows, followed by IT-BPO, tourism, metals, and transport-related industries.

Romero said the agency hopes Congress will approve the amendments within the current legislative session.