PEZA seeks Congress help in passing key reforms

The Philippine Economic Zone Authority (PEZA) will seek the help of Congress to introduce two key reforms which it believes would make the country’s economic zones more attractive to foreign investors.

PEZA director general Charito Plaza said the agency wants to extend the lease period of foreign investors to 99 years as well as create a special wage package in the economic zones.

Plaza, however, said both proposals would require legislative support.

“We will recommend these to Congress. I will write the Congress, specifically the committee that will handle this concern. If it’s about labor or salary increase or what, then I will write whoever is the committee chair in charge of that,” Plaza said.

Plaza said PEZA is mulling to extend the lease of land in economic zone up to 99 years “because that is what other countries are doing in their ecozones.”

At present, foreign companies investing in the Philippines may lease land for 75 years.

“Actually, 99 years is allowed under the Civil Code of the Philippines. The problem is we also passed the Foreign Investments Act that limited it only until 75 years. So we have to study how to address this gap,” Plaza said.

“We want it because we’re competing with other economic zones. PEZA is now trying its best to be very competitive in the market. Dubai and Vietnam is offering 99 years so why can’t we do it here? Anyway it’s only for lease,” she added.

In an effort to make PEZA zones even more attractive to investors, Plaza has also endorsed a proposed special wage package in economic zones to the Department of Labor and Employment.

The proposal would likely lower wages of workers in the economic zones but this would be compensated by a package of benefits such as housing, scholarships and livelihood for their families.