As it marks its 31st year, the Philippine Economic Zone Authority (PEZA) is turning to Congress to finally revisit and amend Republic Act (RA) 7916, the Special Economic Zones Act of 1995, in a bid to propel the agency into its next phase of growth, director general Tereso Panga said.

Enacted on 24 February 1995, the PEZA Law expanded investment opportunities beyond traditional export processing zones, enabling the development of diverse economic zones across the country — particularly in the countryside—broadening industry coverage and accelerating regional development.

According to Panga, the PEZA Law has undergone only one amendment, in 1999, through RA 8748, which refined tax incentives and improved administrative processes for ecozones.

Key amendments include adjusted tax exemptions, increased local government shares, and strengthened investor incentives.

“Today, amid an evolving global investment environment and intensifying regional competition for foreign direct investments (FDI) and export markets, PEZA seeks to update its governing law to remain agile, competitive, and future-ready,” Panga emphasized.

The proposed amendments aim to ensure that PEZA continues to attract high-value, innovation-driven investments; sustain export growth and generate quality employment opportunities; enhance the ease of doing business; and strengthen its role as a pillar of national competitiveness.

The proposed amendments are being deliberated by the House Joint Committee on Economic Affairs, chaired by Congressman Antonio Legarda Jr. and the Committee on Trade and Industry, led by Representation Maximo Dalog Jr., with the strong support of fellow lawmakers who recognize ecozone development as a vital tool to spur countryside development and promote inclusive growth across the country.

“PEZA is honored to work closely with esteemed legislators, valued ecozone investors, and partner agencies and industries in advancing meaningful reforms that will strengthen investment promotion, expand economic opportunities, and secure long-term, inclusive growth for the Philippines. We will continue in our quest to eco-zone the country to bring development closer to our communities and create more opportunities for every Filipino,” Panga said.

A new PEZA

In a recent forum, Panga said PEZA is advancing a major legislative priority to modernize its 31-year-old charter to better align with global investment standards, underscoring the need to future-proof the agency amid a rapidly evolving global business environment.

Central to the proposed amendments is streamlining processes to eliminate bureaucratic bottlenecks and accelerate approvals for investors, thereby significantly improving the country’s ease of doing business.

The modernization effort also seeks to expand PEZA’s institutional powers, including granting authority to issue key permits such as environmental compliance and fire safety clearances, reducing reliance on multiple agencies.

Enhancements to the visa system are also being proposed to facilitate easier entry for foreign investors and skilled workers, strengthening the Philippines’ ability to attract global talent, Panga said.

Organizational improvements are also a focus, with plans to expand the leadership structure by adding deputy directors general to ensure faster decision-making and better investor support.

Importantly, PEZA clarified that no additional fiscal incentives are being requested, noting that current benefits under the CREATE law remain globally competitive.

“We are focused on making PEZA more responsive, efficient, and globally aligned — not by adding incentives, but by removing obstacles and empowering the agency to serve investors better,” Panga said, noting that operational efficiency is now the priority.

Beyond policy reforms, PEZA is developing next-generation ecozones, including innovation parks in universities, pharmaceutical hubs, and aquamarine zones that promote sustainability and high-value industries.

Through these initiatives, PEZA aims to strengthen investor confidence, drive job creation, and position the Philippines as a forward-looking and reliable destination for high-value investments.