The Philippine government has greenlit a sweeping development in Palawan that officials say could redefine the nation’s investment landscape and propel regional growth across Western Visayas and Sulu. The newly approved Palawan Mega Ecozone (PMEZ) — set on a vast expanse of reclassified land from the Bureau of Corrections (BuCor) — is poised to become the largest of its kind in the Philippines, reflecting the Marcos administration’s broader pivot toward regional industrialization and eco-conscious development.
The Philippine Economic Zone Authority (PEZA) Board, chaired by Department of Trade and Industry Secretary Cristina Aldeguer-Roque, approved the project during a recent meeting in Manila. The decision marks a significant milestone in President Ferdinand Marcos Jr.’s push to decentralize economic activity and align the country’s growth trajectory with sustainable development and ASEAN trade integration.
The scale of the project is as ambitious as its economic promise: officials estimate over 480,000 direct jobs could be generated over the next several years, extending benefits to the city’s low-income households, rural communities, and even persons deprived of liberty (PDLs) who may take part in rehabilitation-centered employment programs.
A newly formed technical working group — composed of agencies including the Department of Environment and Natural Resources (DENR), Department of Agrarian Reform (DAR), and Palawan Council for Sustainable Development — will oversee regulatory compliance. PEZA aims to complete the requirements by Q2 2025, paving the way for a Presidential Proclamation.
The ecozone’s approval comes amid a broader surge in employment and investor activity across the Philippines’ economic zones. From January to May 2025, PEZA reported a 51.39% increase in employment compared to the same period last year — a notable rebound attributed to aggressive ecozone expansions and renewed global confidence in the Philippines as an investment hub.
South Korea emerged as the top investing nation during the five-month period, accounting for over 16% of total approvals, fueled by the Philippines-South Korea Free Trade Agreement. The United States, China, Japan, and the Netherlands also made strong showings, indicating continued global interest in the country’s economic zones.
The passage of the CREATE MORE Act — which streamlines and enhances fiscal incentives — has further strengthened the investment climate, positioning the Philippines as a competitive destination in Asia for long-term, high-impact industries.
