MANILA – The administration of President Ferdinand “Bongbong” Marcos Jr. has cleared the creation and expansion of two Special Economic Zones in Iloilo and Batangas, a move expected to spur investment growth and generate thousands of new jobs outside Metro Manila.
Executive Secretary Ralph Recto said the approval reflects the government’s continuing effort to spread economic development to the regions and ease the concentration of investments in the capital.
“The new ecozones will bring economic opportunities closer to Filipinos,” Recto said on Wednesday.
“Ibig sabihin, mas maraming trabaho ang naghihintay sa Batangas, Iloilo, at mga kalapit na lugar. Mas lalakas ang ekonomiya sa mga probinsya, at tuloy-tuloy ang pag-angat ng kabuhayan ng ating mga pamilya,” he added.
In Iloilo, the government approved the establishment of a new Information Technology Park Special Economic Zone in Mandurriao district of Iloilo City.
Covered under Proclamation No. 1128, several parcels of land along the Donato Pison Avenue in Barangay San Rafael will be developed as the Atria Gardens IT Park.
The project is projected to attract about P550 million in investments and generate roughly 2,200 jobs, further reinforcing Iloilo City’s growing reputation as a hub for information technology and business process services.
Meanwhile, in Batangas, the government authorized the expansion of the First Industrial Township–Special Economic Zone (FIT-SEZ) in Tanauan City through Proclamation No. 1127. The newly included areas are located in Barangays Pagaspas and Trapiche.
The FIT-SEZ currently hosts 14 Philippine Economic Zone Authority (PEZA)-registered firms with a combined workforce of 1,634 employees. With the expansion, the area is expected to draw an additional PHP 1.5 billion in manufacturing investments and create around 1,850 new jobs.
The proclamations were signed on January 6, 2026, following endorsements from the PEZA Board of Directors.
Special Economic Zones offer qualified businesses a range of fiscal and non-fiscal incentives and may take the form of industrial estates, export processing zones, information technology parks, or tourism-related developments.
The newly approved zones are subject to compliance with Republic Act 7916, or the Special Economic Zone Act of 1995, as amended, along with PEZA rules and regulations.
Iloilo City already has several government-declared economic zones accredited by PEZA. These zones offer various fiscal and non-fiscal incentives to attract investments, focusing on the IT and Business Process Outsourcing (BPO) sectors.
Key Economic Zones in Iloilo City
* The Grid (IT Center) – Designated a special economic zone (SEZ) by President Marcos in August 2024, this five-story building is located at San Rafael Rotunda in the Mandurriao district. It is expected to attract IT-BPM companies and generate significant employment opportunities.
* SM City Iloilo BPO Tower (IT Center) – This building along Sen. Benigno S. Aquino Jr. Avenue in Mandurriao was also designated an IT Center Special Economic Zone by a previous presidential proclamation.
* Iloilo Commercial Port Complex – A free port is envisioned for establishment at this 20.8-hectare complex in the La Paz district, which is a key component of the proposed Metro Iloilo Special Economic Zone (MILOECOZONE).
Benefits and Functions
Businesses operating within these PEZA-accredited special economic zones enjoy a range of incentives designed to promote economic growth and attract foreign direct investment.
* Fiscal Incentives – These can include an Income Tax Holiday (ITH) for a specific period, a special 5% tax on Gross Income Earned (GIE) in lieu of all national and local taxes (except real property tax on land), and tax and duty-free importation of capital equipment, spare parts, tools, and dyes.
* Non-Fiscal Incentives – Registered enterprises benefit from streamlined customs procedures and simplified business processes.
* Economic Impact – The establishment of these zones is a key strategy for Iloilo City to position itself as a major business and IT hub in the Western Visayas region, leading to increased investments, enhanced infrastructure, and substantial job creation.
While the city currently focuses on IT parks, the broader Iloilo provincial government is also exploring the development of other types of economic zones (e.g., agro-industrial) in nearby municipalities like Dumangas and Leganes to further boost the region’s diverse economy./PN
