Philippine Economic Zone Authority (PEZA) Director General Tereso O. Panga emphasized the Philippines’ rising competitiveness in the ASEAN region, attributing it to ongoing tax reforms and digital transformation. Speaking at the fourth SGV Tax Symposium on 23 October 2025, Panga said these initiatives remain central to the Marcos administration’s economic agenda and are key to attracting long-term investments.

Across Southeast Asia, Panga noted that countries are modernizing their investment frameworks through fiscal incentives and technology-driven governance. “In both strategies and other related parameters, the Philippines has remarkably done well vis-à-vis its ASEAN neighbors,” he said.

Panga highlighted the Philippines’ improving fiscal performance, citing the country’s tax-to-GDP ratio over the past five years as the highest such rate in the region. This achievement, he said, reflects the country’s gradual and sustained increase in revenue performance, driven by a series of tax reform initiatives that have strengthened fiscal discipline and expanded the government’s capacity to invest in national development.

He also cited the 2025 UN Global Survey on Digital and Sustainable Trade Facilitation, where the Philippines ranked second to Singapore, ahead of Malaysia, Indonesia, Thailand, and Vietnam – a reflection, he said, of the country’s increasing momentum in adopting efficient and sustainable trade facilitation practices.

Reforms driving growth and innovation

Panga highlighted the Corporate Recovery and Tax Incentives for Enterprises (CREATE) More Act and the government’s e-Government Master Plan as game-changing laws and policies that will strengthen competitiveness and drive socioeconomic growth. The CREATE More Act, he explained, expands eligibility for tax incentives to both local and foreign firms, giving the Philippines one of the region’s most competitive incentives packages.

Acknowledging implementation challenges, Panga cited lingering issues such as inconsistent port tax assessments and questions over VAT incentives raised by a recent Supreme Court ruling. He assured investors that PEZA is coordinating closely with partner agencies to address these concerns and remove barriers that increase business costs.

He further described PEZA as a top contributor to the country’s national development, managing 431 operating economic zones and hosting over 4,000 companies across industries such as electronics, IT, and business process management. Panga said that since 2023, the agency has generated about P100 billion in revenues for the government.

Panga added that the U.S. Department of State has cited PEZA as a positive and efficient government agency – one that promotes transparency, efficiency, and investor trust.

Accelerating digital transformation

Digital transformation, Panga said, has been central to PEZA’s modernization strategy. The agency was the first among investment promotion bodies to launch an electronic import permit and automated export documentation system. It has also introduced PEZA – The One Portal System (PTOPS), which streamlines all transactions into a single digital gateway.

“With PTOPS, PEZA reaffirms its commitment to ease of doing business and positions our ecozones as more agile, globally competitive, and digitally transformative business ecosystems,” he said.

Panga added that PEZA has implemented a fully cashless system and automated 70 percent of its internal processes, aiming for 100 percent automation by 2025, an initiative that will reduce permit processing times from seven days to as low as one.

He concluded by calling for stronger collaboration between the public and private sectors. “In order for us to expand our tax base and digital connectivity, we must bring in more industries, move up the value chain, and build ventures that create more opportunities for growth, jobs, and innovation,” Panga said.

“Together, let us build an investment environment where compliance goes with confidence – and confidence fuels sustainable progress for our nation.”