PEZA ready to take on more challenges

Philippine Economic Zone Authority (PEZA) Director General Tereso O. Panga, on Monday, 03 April, delivered his first State of the PEZA Address (SOPA) to its employees at the PEZA Head Office.

For the first time in its history, PEZA will be led by a home grown civil servant, a Director General from among its ranks.

President Ferdinand Bongbong Marcos (PBBM) Jr. appointed Tereso O. Panga, a 25-year veteran of PEZA, to steward and steer the Agency towards the goal of increasing foreign investments across the nation.

Panga or T.O.P, as he is known in PEZA was the Deputy Director General for Policy and Planning and concurrently the designated OIC before being appointed by the President to the top PEZA post. He is well known and acknowledged by industry leaders and stakeholders for his professionalism and thorough knowledge and insight of the industries that PEZA serve.

On his assumption as the new PEZA Director General, Panga credits first, the professionalism of his PEZA colleagues throughout the years: “There were some storms along the way but I am truly humbled to be in the company of people who have inspired and helped shape my thinking, and who have helped me realize the potential of PEZA to truly make a difference in nation-building.”

A team player, Panga says he looks forward to closely working on the strategic priorities with Department of Trade and Industry (DTI) Secretary and PEZA Board Chairman Alfredo E. Pascual in promoting the country as one of top “smart” investment destinations in Southeast Asia.

Panga thanked the Secretary for his full support while being the OIC of PEZA. “We will create a seamless relationship that will be to the benefit of locators and forge onward towards a new and stronger synergy between the DTI and PEZA. After all, we are partners in accelerating the economic growth of the country and making sure that the Philippine Development Plan (PDP) 2023 – 2028 of the President succeeds!”

A FOCUS ON THE YOUTH AND GENERATING JOBS THROUGH INDUSTRY PARTNERSHIPS

Under his watch, Panga says he will focus on job creation and job security as one of the social responsibility pillars of PEZA. The foreign investments and locators should have an immediate impact on Filipino lives in the areas where they are located. Historically, the economic zones have been a hub for job creation in the regions and these were even sustained during the pandemic.

“I am a firm believer in the great Filipino worker!” Panga said.

According to him, “The creation of jobs locally opens many opportunities for the LGUs and its communities like higher revenues for the LGUs and skills training for the youth and new graduates in the community. PEZA will be committed to actively pursue these as part of its efforts in nation building.”

PEZA will enter into partnerships with its locators and industry associations such as the IT-Business Process Association of the Philippines (IBPAP) who have focused on creating secured jobs that ultimately spur economic growth. Panga says that together, “We can achieve IBPAP’s admirable goal of hiring 1 million of our kababayans by 2028.”

Moreover, the Director General said, “PEZA is working closely with SEIPI in preparing human capital readiness for advanced manufacturing and industry 4.0 and with PHILEA in developing world-class and environment-friendly economic zones in rural and new growth areas to spur country side development.”

In remembering the early days of PEZA, Panga recalled that many of its employees were young, idealistic and full of integrity. The combination of experienced professional leaders, economic managers and enthusiastic young graduates propelled PEZA from a start-up Bureau to what it is today, an Agency that directly contributes to national economic progress.

There will be a new management culture in PEZA. One that focuses on a culture of transformational leadership that is sensitive to both the needs of PEZA employees and its stakeholders as new foreign investments are welcomed.

Panga noted, “Integrity and excellence will be the hallmark of PEZA’s service. There will be no red tape, only red-carpet service for our investors and stakeholders!”

TOP PRIORITIES

The new PEZA Chief outlined the following priorities that the Agency is committed to pursue:

-Accelerate the ecozone transformation roadmap by creating new types of special economic zones registrable under PEZA to include new modes incorporating townships, such as the Agro-Forestry Ecozone; Aquamarine Park; Defense Industrial Complex; Halal Hubs, Knowledge, Innovation Science and Technology (KIST), Renewable Energy Ecozone, and Pharma Park among others.

-Leverage on our leading exports of manufactured semiconductor-electronics products, electrical machinery and apparatus, office equipment, and IT/BPO services. PEZA will be aggressive in attracting investors that will bolster science-based industries link to the Global Value Chain. This will ensure that the Philippines remains at the forefront of being a relevant investment destination.

-Attract and target high-tech industries that will provide for ecozone product sophistication, export diversification, labor-intensive and high-skilled jobs, knowledge transfer, enhanced local supply chain, and creation of industry clusters.

29 new ecozones have been approved by PEZA in the first quarter of 2023 and more will be established nationally as part of the Philippine Development Plan.

PEZA aims to surpass our last year’s investment achievement of PhP 140.7 billion. The goals are to achieve a 10% target growth this 2023, including our 9% growth TARGET for exports and 8% target for national jobs creation.

To stay at the leading edge of competition, PEZA will improve its regulatory framework by removing unnecessary and outdated requirements for ease of doing business. Further, PEZA is adapting various interventions to enhance the ease of doing business and lower the cost of doing business within the PEZA ecozones pursuant to digitization initiative of the government.

WORKING WITH CONGRESS

PEZA will closely work with Congress to further innovate the Agency and its services. Panga noted that investors “pain-points” need to be addressed such as the cost of high electricity and investors operating costs as compared to locating in other countries. “We need to be competitive, relevant and top-of-mind among potential foreign investors as the smart and preferred destination.”

The challenges will be addressed and overcome through the following steps and actions Panga is determined to take:

Address pressing industry items such as restoration of the VAT system which has been partially addressed with ELSEs.

Plugging of smuggling activities in the ecozones by strengthening our monitoring and police functions through our PEZA police and upgrading digital applications to fully account for tax and duty-free ecozone shipments and thus, prevent their leakage in the domestic territory.

Request for the revisit of the CREATE Act and the amendment of the 28-year-old PEZA Law to better adapt to the changes in the market and the current movement of the country’s investment and business climate.

PEZA will also closely work with other members of the House and Senate to successfully insure that the challenges are resolved in order to create a conducive investor friendly business climate and environment that will provide an edge for the Philippines.

“It is worthy to note that investor interest in our country has jumped 54% with the Presidents active promotion in the recent months, Panga said.

A SERVANT-LEADERSHIP BUILT ON INTEGRITY

In his first address during the PEZA assembly, Director General Panga encouraged PEZA employees to embrace a culture of service built on integrity. “I demand integrity. Imbibing this to our core with no-red tape, only red-carpet treatment to our stakeholders, and sustaining our brand of service, we can achieve new heights in our performance.”

Further, he promised that “PEZA will continue look after the welfare of everyone in the organization including beefing up the manpower complement and enhancing job productivity and career growth through proper human resources (HR) interventions.”

He, however, warned against engaging in corruption, as any whiff of this will in turn merit disciplinary measures which include dismissal from the service.

With this, the new Director General has sought MANCOM’s approval for the inclusion of new core values in the Agency: Transformational leadership and social responsibility. The same are needed especially since PEZA is promoting sustainable ecozone development.  With PEZAns being innovative in shaping future success of the organization and the ecozones, it is in the same manner that when the Agency invite investors to locate, they must also be good corporate citizens.

Panga, ending on a high note, encouraged his fellow PEZAns to work together and collectively endeavor to create more ecozones to spur countryside development and generate more investments, jobs, exports and other economic opportunities for the country.

“We cannot preach what we cannot practice,” DG Panga reminded PEZAns during the assembly.

“Together, we continue to contribute to the competitiveness of the country as the smart investment destination in the region! The best is yet to come for PEZA, our investors, and for our country! We are ready!” he added.