-
Newly-appointed Philippine Economic Zone Authority (PEZA) director general Tereso Panga outlined his priorities as he promises “no red tape, only red-carpet” service for investors and stakeholders
-
Priorities include accelerating the ecozone transformation roadmap, leveraging on leading export sectors, attracting high-tech industries, and improving PEZA’s regulatory framework
-
PEZA will also work to address pressing concerns, plug smuggling activities at ecozones, and revisiting relevant laws
“No red tape, only red-carpet” service for Philippine Economic Zone Authority (PEZA) investors and stakeholders. This is newly-appointed PEZA director general Tereso Panga’s declaration during his first State of the PEZA Address to employees on April 3 where he also outlined his priorities.
Panga was appointed director general of PEZA on March 23, after being officer-in-charge of the agency since July 2022. He has been with PEZA for more than 20 years, and as deputy director general for policy and planning since 2010.
Panga’s priorities include the following:
- Accelerate the ecozone transformation roadmap by creating new types of special economic zones registrable under PEZA to include new modes incorporating townships, such as the agro-forestry ecozone; aquamarine park; defense industrial complex; halal hubs, knowledge, innovation science and technology; renewable energy ecozone, and pharma park among others.
- Leverage on leading export sectors such as business process outsourcing, semiconductor and electronics, and health services. PEZA will be aggressive in attracting investors that will bolster science-based industries link to the global value chain. This will ensure that the Philippines remains at the forefront of being a relevant investment destination.
- Attract and target high-tech industries that will provide for ecozone product sophistication, export diversification, labor-intensive and high-skilled jobs, knowledge transfer, enhanced local supply chain, and creation of industry clusters.
- 29 new ecozones have been approved by PEZA in the first quarter of 2023 and more will be established nationally as part of the Philippine Development Plan.
- PEZA aims to surpass our last year’s investment achievement of P140.7 billion. The goals are to achieve a 10% target growth this 2023, including our 9% growth TARGET for exports and 8% target for national jobs creation.
- To stay at the leading edge of competition, PEZA will improve its regulatory framework by removing unnecessary and outdated requirements for ease of doing business. Further, PEZA is adapting various interventions to enhance the ease of doing business and lower the cost of doing business within the PEZA ecozones pursuant to digitization initiative of the government.
Panga said PEZA will closely work with Congress to further innovate the agency and its services.
Panga noted that investors’ “pain-points” need to be addressed such as the cost of high electricity and investors operating costs as compared to locating in other countries.
“We need to be competitive, relevant and top-of-mind among potential foreign investors as the smart and preferred destination,” Panga said.
To address the challenges, Panga said they will be undertaking the following actions:
- Address pressing industry items such as restoration of the value-added tax system which has already been partially addressed with ecozone logistics services enterprises.
RELATED READ: BIR clarifies ecozone logistics service enterprises entitled to zero VAT
- Plugging of smuggling activities in ecozones by strengthening monitoring and police functions through the PEZA police, and upgrading digital applications to fully account for tax and duty-free ecozone shipments thus, preventing leakage in the domestic territory.
- Request for the revisit of the Corporate Recovery and Tax Incentives for Enterprises Act and the amendment of the 28-year-old PEZA Law to better adapt to changes in the market and the current movement of the country’s investment and business climate.
Panga said PEZA will also closely work with other members of the House and Senate to successfully ensure the challenges are resolved in order to create a conducive investor friendly business climate and environment that will provide an edge for the Philippines.
Under his watch, Panga said he will also focus on job creation and job security as one of the social responsibility pillars of PEZA.
He also encouraged PEZA employees to embrace a culture of service built on integrity, adding “integrity and excellence will be the hallmark of PEZA’s service.”
He said, “I demand integrity. Imbibing this to our core with no-red tape, only red-carpet treatment to our stakeholders, and sustaining our brand of service, we can achieve new heights in our performance.”
Further, he promised that “PEZA will continue look after the welfare of everyone in the organization including beefing up the manpower complement and enhancing job productivity and career growth through proper human resources (HR) interventions.”
He, however, warned against corruption, a whiff of which will merit disciplinary measures, including dismissal from the service.
With this, Panga sought PEZA’s management committee’s approval for inclusion of new core values in the agency: Transformational leadership and social responsibility.
He said this is needed especially since PEZA is promoting sustainable ecozone development.
