By jason mago

PEZA is boosting efforts to attract AI and green tech firms by offering longer tax perks and pushing for more sustainable, innovation-led ecozones.

The Philippine Economic Zone Authority (PEZA) is banking on stronger fiscal incentives and sustainability-driven reforms to attract high-value investments in artificial intelligence (AI), biotechnology, renewable energy, and green manufacturing into the country’s economic zones.

In an interview with DAILY TRIBUNE over the weekend, PEZA director general Tereso Panga said the agency is leveraging the proposed CREATE MORE law to offer longer tax holidays and enhanced deductions for so-called Tier 3 industries, which include innovation-led and environmentally conscious firms.

“Under the CREATE MORE law, high-value industries are given longer incentives categorized as Tier 3. These industries have embraced sustainable development as a form of competitiveness,” Panga said.

As part of its long-term strategy, PEZA is also promoting the adoption of the Eco-Industrial Development (EID) and Circular Economy frameworks to transform its ecozones into climate-smart hubs.

“One of PEZA’s goals is to make its registered economic zones more sustainable and climate smart by deploying new technologies which will allow PEZA locator companies to remain globally competitive and at the same time contribute to greenhouse gas emission reduction,” Panga said.

Panga said Knowledge, Innovation, Science and Technology (KIST) parks are expected to play a key role in attracting high-value industries by supporting research, development, and innovation. He also noted that many companies now require renewable energy in their production processes to reduce carbon emissions, with some already adopting renewable sources in private ecozones under PEZA policies.

Faster rollout

PEZA’s expansion strategy has gained momentum in 2025. In the first half alone, four new ecozones were approved, including two major expansions of the Lima Technology Center in Batangas and new IT parks in Bacolod City and Tagbilaran, Bohol. Turn to page 12

The Lima expansions are expected to bring in over P1.4 billion in investments, while the Bacolod and Tagbilaran sites are projected to generate more than P1.2 billion combined, creating thousands of new jobs across the Visayas.

To date, 32 new ecozones have been proclaimed under the current administration, backed by P13.4 billion in total investment pledges.

To ensure that newly proclaimed ecozones lead to real, on-ground development, PEZA has tightened its approval requirements.

“Applicant developers of ecozone are required to have a prospective locator in the proposed ecozone,” Panga said.

“This has now become a precondition to the approval of the PEZA and the Office of the President. This more or less ensures that there will be real and on-ground development.”

He added that developers are also required to begin construction within a prescribed period under the CREATE law, or risk losing their incentives.

“Once an ecozone is proclaimed, it becomes a ready location for investors wanting to produce for the domestic or the world market by utilizing the ecosystem provided by PEZA in terms of ease of doing business, preferential tax treatment under CREATE law, good governance, and by leveraging on a location which is afforded the status of a separate customs territory,” Panga said.

Support for the countryside

Panga also cited the impact of Administrative Order No. 18, which imposed a moratorium on new ecozones in Metro Manila and directed national agencies to accelerate support for countryside development.

“These agencies needed to provide interventions in ensuring that investors will flock to ecozones and provide employment to host communities,” he said.

He emphasized that ecozones remain a key driver of regional development.

“Ecozones can accelerate rural growth and regional dispersal of industries that can generate the much-needed jobs, exports, linkage with the domestic market, and integration of MSMEs into the ecozone value chain,” Panga said.

“Ecozones have always been a catalyst for economic progress as shown by the Calabarzon and Cebu Regions, where the majority of ecozones are located.”