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Panga’s Momentum: Why Cutting PEZA’s Star Player Could Cost the Philippines Billions

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Louis ‘Barok’ Biraogo

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Panga’s Momentum: Why Cutting PEZA’s Star Player Could Cost the Philippines Billions

By Louis ‘Barok‘ C. Biraogo — June 1, 2025

IN A modest office in Cebu, 6,800 Filipino workers recently found new jobs at Techlog’s expanded IT hub—a direct result of the Philippine Economic Zone Authority’s (PEZA) record-shattering 294% investment surge in Q1 2025, soaring to P58.947 billion. This isn’t just a statistic; it’s a lifeline for families and a testament to the man steering PEZA into uncharted territory: Director General Tereso Panga. Yet, as President Marcos Jr.’s administration weighs a sweeping revamp, Panga’s courtesy resignation—mandated alongside other agency heads—threatens to unplug this momentum mid-surge. Here’s why that’s reckless.

Panga, a 28-year veteran of PEZA, isn’t just a bureaucrat; he’s the architect of the Philippines’ industrial renaissance, aligning seamlessly with Marcos’s “Bagong Pilipinas” vision of inclusive growth. Under his watch, PEZA has greenlit 27 new ecozones since Marcos took office, 16 in 2024 alone, with plans for 30 more in 2025 at a P60 billion investment. These aren’t random plots—they’re strategic, targeting Mindanao’s agri-green mineral potential (think nickel for global battery supply chains) and Central Luzon’s burgeoning IT corridors, like the new Kawasaki IT enterprise in Cebu. Panga’s foresight counters the “China+1” supply chain shift, positioning the Philippines as a nimble alternative to regional giants. His advocacy for the CREATE MORE Act, which offers the most generous fiscal incentives in ASEAN, and his push for the Luzon Economic Corridor—a collaborative framework with the Bases Conversion and Development Authority—further cement the Philippines as a global player.

Internationally, Panga’s PEZA commands unwavering respect and confidence. The U.S. State Department has lauded it as a model of regulatory clarity, while Colliers’ surveys consistently rank the Philippines as a top BPO destination, thanks to PEZA’s “‘no red-tape, but only red-carpet’ approach.” Critics, however, fixate on regional disparities, arguing ecozone growth remains concentrated in Calabarzon. But this misses the big picture: Panga’s Mindanao initiatives, like nickel-focused zones, directly address these gaps, creating jobs where they’re needed most. While naysayers fret over map boundaries, Panga’s team is redrawing the Philippines’ economic destiny.

The stakes couldn’t be higher. PEZA’s P201.55 billion in approvals by November 2024 outstripped 2023 by 43%, and the agency joined the “Billionaires’ Club” with a record P1.39 billion dividend payout in 2024—a feat unheard of in its 30-year history. Yet, the Marcos administration’s courtesy resignation mandate casts a shadow. Stakeholder voices are unanimous: Philexport, the nation’s largest export group, insists, “He is doing a great job; locators are pleading for his stay”. Rep. Joey Salceda echoed this, calling Panga a “confidence-building appointment.” Replacing him risks a political misstep that could chill investor confidence just as foreign direct investment hits a gold rush.

In a world where Vietnam and Thailand court factories with tax breaks, Panga offers something rarer—a bureaucracy that works. From the SuRGE sustainability framework to the pharmaceutical ecozone launch in Tarlac, his policies dovetail with Marcos’s priorities, blending economic growth with environmental stewardship. The question isn’t whether Panga deserves reappointment—it’s whether the Philippines can afford to lose him amid an FDI gold rush. For a nation standing at the threshold of transformation, the choice is undeniable: keep the ace in play.

Louis ‘Barok‘ C. Biraogo

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