More local government units eye economic zones to drive growth

More local government units (LGUs) are signaling their intent to establish economic zones in their jurisdictions, a move expected to boost local revenue, generate jobs, and strengthen regional development.

The Philippine Economic Zone Authority (PEZA) confirmed that several newly elected mayors have formally expressed interest in hosting ecozones. These include leaders from Naga City, Los Baños City, San Pablo City, Libon, Pamplona, Oroquieta City, Silang City, Leganes, Victoria, Pagudpud City, Digos City, and San Andres.

PEZA officials also conducted visits this week to proposed sites in San Andres, Quezon (135 hectares), Pamplona, Camarines Sur (60 hectares), and Libon, Albay (40 hectares) to conduct due diligence and meet with stakeholders. These sites, strategically located along the Bicol and Bondoc Peninsulas fronting the Ragay Gulf, are expected to benefit from connectivity to nearby ports in San Andres, Pasacao, and Pantao.

Officials said the establishment of new ecozones could stimulate both domestic and international trade, improve logistics through barge deliveries, and open opportunities in tourism and inter-island transport.

PEZA noted that ecozones have historically been catalysts for economic progress in host LGUs, spurring micro, small, and medium enterprises (MSMEs), ancillary services, and new employment opportunities. Based on Philippine Statistics Authority data, most of the country’s top-performing LGUs in terms of GDP contribution and investments host multiple ecozones.

To date, 34 new and expansion ecozones have been proclaimed under the current administration, generating %u20B114.7 billion in capital investments.

The agency also confirmed ongoing engagements with the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to support ecozone initiatives in the south, with the goal of attracting more investments and boosting regional growth.

Officials said that ecozones remain a vital pillar of the government’s broader economic strategy, aligned with the Marcos administration’s “Bagong Pilipinas” agenda to expand jobs and investments nationwide.