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The Philippine Economic Zone Authority approves 28,000-hectare Palawan Mega Ecozone, the country’s largest proposed ecozone
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Phase 1 covers 4,000 hectares in Iwahig Penal Colony, with potential for agro-industrial, renewable energy, eco-tourism, and biotech industries
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The creation of PMEZ is the first step toward the process of Presidential proclamation of the site
The Philippine Economic Zone Authority (PEZA) Board has approved the creation of the Palawan Mega Ecozone (PMEZ), a 28,000-hectare development within the Iwahig Penal Colony in Puerto Princesa, Palawan.
The creation of PMEZ is the first step toward the process of Presidential proclamation of the site.
The project, a joint initiative with the Bureau of Corrections (BuCor), will be the first and largest of its kind in the country, intended to transform idle government land into a hub for sustainable industrial activity, PEZA said in a statement.
The project affirms an earlier contract between BuCor and PEZ. Under the contract, BuCor will transfer land to PEZA for the creation of the zone.
READ: PEZA, BuCor to develop Iwahig prison into mega ecozone
An initial 4,000 hectares has been transferred to PEZA for Phase 1 development. The PMEZ is expected to attract investment in agro-industrial processing, renewable energy, eco-tourism, and marine biotechnology.
A technical working group including the departments of environment; agriculture; agrarian reform; the National Water Resources Board; and local government units has been formed to fast-track documentation and regulatory compliance. PEZA aims to complete requirements for the zone’s official proclamation by the Office of the President within the second quarter.
PEZA director general Tereso Panga said the ecozone is designed to support ASEAN trade integration and provide jobs in Western Visayas and Sulu. The development could generate over 480,000 direct jobs, including opportunities for persons deprived of liberty.
Separately, PEZA reported a 51.39% increase in employment from January to May 2025, with 102 new and expansion projects approved, amounting to P66.34 billion in total investment. This represents an 80.14% year-on-year rise. These projects are expected to yield over $1 billion in exports and approximately 29,000 new jobs.
South Korea led investment approvals, accounting for 16.12% of the total, buoyed by the recent South Korea–Philippines Free Trade Agreement. Other leading investors included the United States, China, Japan, and the Netherlands. The Food and Beverage sector attracted the largest investment share, followed by ecozone development and IT-BPM.
PEZA credits the CREATE MORE Act for enhancing the country’s competitiveness through better fiscal incentives. It is also promoting the China+1+1 strategy to attract companies seeking to diversify beyond China.
The agency said it remains on track to meet its 2025 targets through digitalization, streamlined approvals, and sustained ecozone development.
