The Philippine Economic Zone Authority (PEZA) is seeking amendments to its charter to enable it to venture into new frontiers in economic zone development, attract more foreign direct investments (FDIs), and help position the country as a key player in global supply chains.
PEZA Director General Tereso O. Panga said the proposed new ecozone development frontiers include aquamarine parks, aerotropolis parks, mega zones and townships, pharmaceutical parks, and knowledge, innovation, science and technology parks.
To allow PEZA to pursue these new types of developments, the agency has proposed expanding the definition of Special Economic Zones in its charter to include the establishment of these emerging ecozone categories.
The expansion of PEZA’s ecozone development mandate is among the proposed amendments to the PEZA law that Panga presented to Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go and senior government officials on June 18.
During the meeting, Go expressed support for strengthening PEZA’s role in investment promotion and advancing more responsive, investor-oriented reforms.
PEZA believes that broadening its ecozone development mandate will enhance the agency’s ability to support the country’s overall strategy for attracting foreign direct investments.
Another key amendment seeks to streamline ecozone proclamation requirements and processes with the Office of the President. At present, PEZA officials noted that it can take several months before a PEZA-endorsed ecozone receives presidential proclamation.
The agency is also proposing the reinstatement of the PEZA Board’s authority to appoint personnel and determine compensation, benefits, and incentives for its officers and employees, subject to approval by the Office of the President. These would include exemptions from the Salary Standardization Law, as well as retirement and separation benefits comparable to those offered by government-owned and controlled corporations such as the Bases Conversion and Development Authority (BCDA) and Clark Development Corp. (CDC), as well as the private sector.
PEZA said lower compensation levels compared with those offered by other government-owned and controlled corporations have contributed to the departure of personnel seeking better opportunities elsewhere.
To further improve operational efficiency, the agency is also seeking to strengthen its one-stop shop for processing permits and approvals.
Among the proposed measures are the extension of the validity of PEZA visas from two years to three years, renewable for another three years, and exemption from the Alien Employment Permit requirement for visa holders staying in the country for less than one year.
The proposed amendments likewise seek to reinforce PEZA’s authority to register embedded utilities within economic zones. The agency is also seeking authority to issue certificates of origin and to prohibit other ecozone or investment promotion authorities from establishing operations within PEZA-administered economic zones.
