The Philippine Economic Zone Authority (Peza) is accelerating its pivot toward high-tech, export-driven industries while scaling up artificial intelligence (AI) training programs, positioning the Philippines to capture the next wave of global investments.
High-tech shift gains ground
Peza Director General Tereso Panga said the country is steadily moving up the value chain, with traditional low-cost manufacturing such as garments losing ground to more advanced, technology-driven sectors. “You must understand that when it comes to garments, they tend to go to low-wage countries. It only means we’re going up the value chain already. The companies coming in now are more sophisticated, high-tech. In return, it’s generating quality jobs for Filipinos,” Panga said.
The shift is evident in the types of locators entering Philippine economic zones, including firms engaged in advanced manufacturing and emerging technologies. Recent investments include a Japanese company involved in wiring harness production and more complex manufacturing processes such as new casting technologies, which require higher technical skills but also offer opportunities for workforce upskilling.
Panga noted that while some legacy industries may decline, they are being replaced by higher-value investments that contribute more significantly to exports and productivity. “Whenever we lose some companies, we get new ones — and bigger ones — with higher-value investments,” he said. This transition aligns with the agency’s broader strategy of prioritizing industries integrated into global supply chains and capable of generating more sophisticated employment.
AI workforce push
Complementing this industrial shift is an aggressive push to build an AI-ready workforce, seen as critical to attracting technology-driven locators. Panga said nearly 5,000 AI certificates have already been issued in Cebu alone through training programs supported by government and private sector partners. The initiative offers free AI training grants, with plans to expand the program nationwide and produce thousands more AI-skilled Filipinos.
“We want to create as many Filipinos as possible who are AI-ready so that this becomes an advantage for the Philippines when we attract AI-driven investments,” Panga said. The agency is also urging both government offices and private sector locators to adopt AI capabilities, aiming to position Peza as one of the first AI-proficient agencies in government.
Bridging the skills gap
Panga highlighted that new investments are creating a dual demand for both entry-level and advanced skills. While some manufacturing roles require only basic training, more sophisticated operations demand technical expertise in areas such as automation, advanced manufacturing and digital systems. This creates an opportunity for training institutions and local governments to align workforce development programs with industry needs. “They can train residents so they can be absorbed by these companies,” Panga said, pointing to the role of upskilling in ensuring inclusive growth.
Regional growth and expansion
The shift to high-tech industries is also expected to support regional development, with ecozone expansions and new investment areas being opened to accommodate incoming firms. Peza is working to attract more IT and technology locators into integrated developments, including mixed-use zones that combine manufacturing, IT-BPM and support services. This approach aims to create innovation-driven ecosystems that can sustain long-term investment and employment growth.
