PEZA to complement Luzon Economic Corridor

Through strengthened initiatives geared towards advancing the country’s ecozone development program, the Philippine Economic Zone Authority (PEZA) vowed to support and complement the Luzon Economic Corridor infrastructure initiative, which is one of the projects to be implemented under the Philippine-US-Japan trilateral agreement.

The Luzon Economic Corridor is seen to support connectivity among Subic Bay, Clark, Manila, and Batangas as well as facilitate and anchor strategic investments within each hub in high-impact infrastructure projects, including rail, port modernization, agribusiness, and clean energy and semiconductor supply chains and deployments.

PEZA Director General Tereso O. Panga, on the sidelines of the Indo-Pacific Business forum last May, declared that the Authority is in full support of the Luzon Economic Corridor which will strengthen seamless interconnectivity between Central Luzon and the CALABARZON Region.

“Majority of PEZA-registered ecozones are largely within this corridor. In fact, there are a total of 137 ecozones operating in Metro Manila, Clark, and Batangas, housing about 1,600 manufacturing, service and export-oriented companies. As such, we look forward to the infrastructure projects that will strengthen the connections between these industrial export hubs,” expressed the PEZA Chief.

Based on PEZA data, the developers and locators of the ecozones account for 56.91% of the total commodity exports of the Philippines in 2023. This has largely contributed to the creation of jobs in the provinces of Cavite, Tarlac, Batangas, Pampanga, Laguna which have grown and developed significantly throughout the years due to the presence of the economic zones.

Director General Panga explained that the projects to be implemented in the Luzon Economic Corridor will enhance the paradigm and practice of ease of doing business as well as increase the outputs of companies located within the zones. There will be redundant and complimentary modes of transport to ensure unimpeded flow of goods, thus strengthening the supply and value chain both locally and globally.

“We are positive that this will de-clog and decongest logistical pinch points in Luzon, which serves as a major challenge to our locator companies and even to potential investors. It will lead to a seamless flow of products and materials from and into the zones, and will also enhance the country’s attractiveness as an investment destination,” he said.

DG Panga was able to brief US Senior Official for Asia Pacific Economic Cooperation Ambassador Matt Murray and other officials on ASEAN trade and PEZA initiatives in growing trade between the US and the Philippines.

To complement the Luzon Economic Corridor further, PEZA is already studying and looking at opening new ecozones southward to the Bicol region in the near future. The current projects of the Department of Public Works and Highways (DPWH)—Toll Road 4 and Toll Road 5 plus the ADB funded PNR South-Long Haul Railway project—will make the Bicol Region accessible to international trade. The Region already has existing airports at strategic locations that compliment these upcoming infrastructure trade highways. The only major component lacking are international seaports on the Eastern seaboard of the Philippines.

Looking at the next four years, the PEZA Chief noted that “Opening up new seaports like Pantao, for one, in the Eastern Seaboard will de-risk trade as well as shorten transport of goods to Taiwan, Korea, the US, Japan, the Americas, Australia, New Zealand and other destinations in the Pacific. It will create new growth areas that will uplift the lives of millions in the region and have an economic impact on South Eastern Visayas as well!”

Moreover, PEZA is starting the preliminary stages with the Bureau of Corrections (BuCor) for the planning and development of the first mega economic zone in Palawan which is also seen to rejuvenate the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA) partnership that will focus on the Greater Sulu-Sulawesi Corridor among others.

DG Panga noted that “We cannot pass up on these rare opportunities from China 1 Strategy, US CHIPS Act, and US-JAPAN-Philippines trilateral agreement anchored on the Luzon Economic Corridor which Trade Secretary and PEZA Board Chairman Alfredo Pascual has been ardently pursuing. We can leverage on ally-shoring and offshore-outsourcing to attract more investments particularly from US and Japan, and President Ferdinand R. Marcos Jr.’s bid to position the Philippines as a regional hub for smart and sustainable manufacturing, innovation, creativity, and sustainability.”

“From within our own domain and sphere of influence, we can pursue these strategies to address the challenges in the supply chain, industrial and logistics sectors and in the process attract more industrial investments particularly in the ecozones. We shall continue to partner with other government agencies and various industry associations to make this possible. With all of us working together, we can make the Philippines an attractive destination in the region!” he added.