The Philippine Economic Zone Authority (PEZA) said Tuesday it approved the creation of the Palawan Mega Ecozone (PMEZ), a groundbreaking development poised to become the largest of its kind in the country.
A joint undertaking of PEZA and the Bureau of Corrections’ (BuCor), the project spans 28,000 hectares within the Iwahig Penal Colony in Puerto Princesa City.
“The Palawan Mega Ecozone is envisioned to attract environmentally responsible industries such as agro-industrial processing, renewable energy, eco-tourism, and marine biotechnology. This will not only preserve Palawan’s rich biodiversity but will also uplift the livelihood of local communities through jobs and infrastructure development,” said PEZA director-general Tereso Panga.
It seeks to transform idle government land into eco-friendly industrial estates that will attract investments, generate employment and preserve Palawan’s biodiversity.
An initial 4,000 hectares were transferred to PEZA as phase 1 of the project, and another 4,000 hectares in Barangays Montible and Sta. Lucia are in the pre-qualification stage for development.
The PMEZ is expected to play a vital role in reviving economic activity in the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA), in response to President Ferdinand Marcos Jr.’s directive to deepen trade ties among ASEAN nations amid global tariff pressures.
PEZA is targeting to complete regulatory requirements by the second quarter of 2025 before submitting the proposal to the Office of the President.
Once operational, the PMEZ is projected to create over 480,000 direct jobs, benefiting local communities, persons deprived of liberty (PDLs) and nearby regions across Western Visayas and Sulu.
The project’s approval comes amid a banner year for PEZA, with committed investments in the first five months of 2025 reaching P66.34 billion, up 80.14 percent from P36.83 billion in the same period last year.
PEZA expects to generate over $1 billion in export revenues and about 29,000 direct Filipino jobs from the said investments.
The majority of this year’s investment inflows came from locators, whose projects totaled P46.59 billion, more than double their P21.72 billion commitment in 2024. Developer contributions also rose to P16.93 billion from P15.1 billion.
A total of 102 projects have been approved as of May 21, 2025, compared to 95 during the same period last year.
Officials attributed the strong performance to streamlined approval processes and proactive investment promotion, which continue to attract new and expanding enterprises across key sectors.
Panga said the agency is in discussions with Malaysian and Indonesian companies that have expressed strong interest in establishing operations in the Philippines as part of their regional supply chains.
