IN BRIEF:
• The Philippines underscores that sustained investor confidence is built on strong economic fundamentals, bold tax reforms, and a transparent, digitally driven investment environment led by trailblazing IPAs like PEZA.
• PEZA’s “no red tape” governance, cutting-edge digital systems, and globally competitive ecozones reinforce its role as a safe haven for investors and a model of predictability, efficiency and trust.
• Despite political shifts and external uncertainties, the government and private sector emphasize that the resilience and excellence of Filipino talent remain the country’s greatest asset and the strongest reason to invest in the Philippines.
The Philippines remains open for business, and Filipino talent continues to support investors in creating value. Strengthening investor confidence means creating an environment that is secure, predictable, and competitive. At the 4th SGV Tax Symposium held on 23 October 2025, with the theme “From Compliance to Confidence: Trust, Transformation and Transparency,” Philippine Economic Zone Authority (PEZA) Director General Tereso Panga spoke about the role of Investment Promotion Agencies (IPAs), particularly PEZA in driving investment through tax reform and digitalization.
PEZA AND POLICY REFORMIPAs like PEZA drive investments by implementing regulatory reforms and accelerating digital transformation. PEZA oversees 431 economic zones that host more than 4,000 companies in the electronics, information technology and business process management (IT-BPM) industries, with investors from Japan, the US, the Netherlands, and others.
Mr. Panga emphasized the importance of the 2024 Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, which extends tax incentives for up to 27 years and clarifies value-added tax zero-rating procedures, building on the CREATE Act of 2021. The CREATE Act, as amended by CREATE MORE, is a landmark tax reform, which introduced the presidential power to grant a special incentive package for up to 40 years. According to Mr. Panga, this set of reforms “gives investors renewed confidence by offering one of the most generous and competitive incentives packages in the region, where businesses can truly thrive.”
PEZA’S TECHNOLOGY-DRIVEN INITIATIVESInvestor confidence is also improved by ease of doing business, with transformation using technology seen as a key building blocks. Companies increasingly seek simpler, faster, and more predictable processes. Technology supports these needs by reducing corruption, improving transparency, strengthening policy consistency, and signaling that the country is committed to modern, fair and efficient governance. Digital transformation is therefore more than an administrative upgrade because each technological improvement is a step toward enhanced trust, efficiency, and competitiveness.
PEZA has been at the forefront of recent modernization initiatives. Its “no red tape” governance model ensures streamlined services, with many processes — such as permit applications and clearances — handled electronically. According to Mr. Panga, PEZA was the first to implement electronic import permits and automated export documentation. Recent developments include the Ecozone Transfer System, a data-sharing agreement with the Bureau of Customs on electronic cargo tracking and the PEZA The One Portal System (PTOPS). PTOPS consolidates all PEZA-related transactions into a single platform, providing investors with an agile and digitally capable ecosystem that reduces processing time and enhances accountability.
PEZA’S PIVOTAL ROLEMr. Panga noted that while broader bureaucratic challenges may persist, agencies like PEZA continue to serve as reliable and predictable partners for investors. This has contributed to sustained investor trust even during periods of uncertainty. The US government, in its 2025 Investment Climate Statement, commended PEZA and the Board of Investments (BoI) for maintaining regulatory transparency, upholding a “no red tape” policy and offering efficient one-stop-shop services. The report emphasized that although the wider bureaucracy can sometimes be slow, the business environment in special economic zones remains more conducive.
Recent domestic issues have occasionally created uncertainty for investors, but Mr. Panga stressed the importance of evaluating how institutions adapt and respond. The government continues to assure investors that economic fundamentals remain strong, government institutions continue to function, and its commitment to protecting investors is clear. Recent appointments in key economic agencies have been positively received by the business community, reinforcing confidence that investment priorities remain consistent and well supported. As examples of these changes, the recent appointments of economic officials — including former Special Assistant to the President for Investment and Economic Affairs Frederick D. Go as Secretary of Finance and former Finance Undersecretary Charlito Martin Mendoza as Commissioner of Internal Revenue (CIR) — reflect this direction.
Agencies like PEZA help ensure stability through the high standards of transparency, efficiency, and predictability. The private sector also remains resilient and forward-looking, providing additional assurance that long-term investments in the Philippines continue to thrive. While political or administrative changes may occur over time, the steady commitment of IPAs and the private sector creates strong confidence among investors.
Recent public statements of President Ferdinand R. Marcos, Jr. highlight the importance of public-private sector collaboration in strengthening the investment landscape. Partnerships with agencies like PEZA introduce global companies to the skills and capabilities of the Filipino workforce, generating employment, expanding training programs, and bringing new opportunities for Filipino families. These collaborations reinforce the country’s position as a competitive and promising destination for international businesses.
PEZA AND THE FUTURE OF FILIPINO TALENTThe Philippines is building a future driven by innovation, competitiveness, and talent. This is a vision that extends beyond political cycles. Challenges will inevitably arise, but opportunities can be endless when companies invest in Filipino creativity, resilience and expertise. Filipino talent remains diligent, adaptable and committed to supporting business growth.
With PEZA’s leadership and the strength of Filipino talent, the Philippines offers a reliable and future-ready environment where the public and private sector can work together to shape the future of a better Philippines where investments can grow and create long-term value.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.
Margaux A. Advincula is a Tax Partner and the Foreign Direct Investments Leader of SGV & Co. She also heads SGV Clark and is the Markets Leader or SGV Baguio.
