New ecozones seen boosting property demand

The recently approved economic zones (ecozones) in Batangas, Bohol, and Bacolod are expected to spur demand for office, residential, and retail developments in surrounding areas, driving land appreciation and income growth, according to property consultants.

“The announcement of new IT (information technology) parks or the expansion of existing ones introduces new job markets to the area and encourages the emergence of complementary developments,” Jamie Dela Cruz, research manager at real estate agency KMC Savills, Inc., said.

The increasing employment opportunities in these ecozones will raise demand for new residential, commercial, and retail developments, she said.

“People will gravitate to where the jobs are located, as long as the support services are available for business and residential locators,” Roy Amando L. Golez, Jr., director for research and consultancy at Leechiu Property Consultants, said.

“With the increased population, land around the ecozones will naturally start to develop, especially as income grows,” Mr. Golez added.

President Ferdinand R. Marcos, Jr. approved four new ecozones in the first half of the year, with projected investments totaling P3.2 billion, the Philippine Economic Zone Authority (PEZA) said last week.

Two of these ecozones are expansions of a manufacturing zone in Batangas, while the other two are new IT parks in Tagbilaran City and Bacolod City in the Visayas.

Ecozone developments are also likely to attract foreign investors and new locators due to improved procedures and incentives in the area, Ms. Dela Cruz said.

“They facilitate easier business operations by offering incentives and streamlining processes, helping attract BPOs (business process outsourcing) firms and foreign investments. This is evident in the leasing commitments seen in IT parks, even as their PEZA registrations are still underway,” she noted.

“The sustained demand from the IT-BPM sector in key provincial cities such as Bacolod and Bohol indicates that office rental rates are likely to remain stable, with the potential for moderate increases.”

The government also stands to benefit from the new ecozones through higher tax collections amid improved land values, Mr. Golez said.

To accommodate the increased need for land and space, local government units must improve their land use zoning near these ecozones, Mr. Golez noted.

“That means there is a need to create communities for commercial, logistics, residential, retail, and some institutional facilities to ensure long-term organized growth,” he said. “Ultimately, this will push up land values and rental rates in the area.”

A total of 32 ecozones have been proclaimed under the Marcos administration, generating around P13.41 billion in investments.

Source: Business World

UNDP: AI can steer human development and inclusive growth

The United Nations Development Programme (UNDP) Philippines, in partnership with the Philippine Human Development Network (HDN), successfully held the Philippine launch of the 2025 Global Human Development Report (HDR) at the Securities and Exchange Commission (SEC) Headquarters in Makati City.

With this year’s report titled “A Matter of Choice: People and Possibilities in the Age of AI,” the launch brought together government officials, industry leaders, private sector representatives, academics, and civil society representatives to discuss how artificial intelligence (AI) can be a tool for inclusive and sustainable human development.

The 2025 HDR, first unveiled globally in May in Brussels, emphasizes the growing role of AI in reshaping economies and societies. It calls for deliberate choices to ensure that AI technologies empower people, narrow inequalities, and support development goals, particularly in developing countries like the Philippines.

During the launch, Dr. Selva Ramachandran, UNDP Philippines resident representative, noted: “At its core, the HDR is a call to action for governments, businesses, communities, and individuals to make deliberate choices about how AI is designed, used, and governed. If we make the right choices today, AI could become a force and an engine for freedom, opportunity, and progress, not just for a few, but for everyone.”

Dr. Philip Arnold Tuaño of the HDN, Commissioner Javey Francisco of the SEC, and Hon. Reynaldo Cancio from the Department of Economy, Planning, and Development (DEPDev) also delivered opening remarks, underscoring the importance of inclusive innovation and robust policy frameworks.

“This year’s launch of the HDR comes at a pivotal moment. While the promise of AI grows even more visible, we are reminded that the path of progress is not inevitable. It is a matter of human choice and governance. This report highlights how AI can be harnessed to enhance human capabilities, rather than diminish,” noted Dr. Tuaño in his opening message.

Through digital transformation, the SEC is building a culture of transparency, measurable accountability, and ongoing performance enhancement. Commissioner Francisco highlighted that the SEC: “sees AI playing a growing role in our work — improving our ability to detect fraud, assess risk, and promote financial inclusion. AI can help us direct capital toward sustainable enterprises, enhance market integrity, and protect investors more effectively than ever before.”

The highlight of the event was a presentation of the HDR 2025 findings by Mohamed Shahudh, UNDP Philippines Economist, followed by a panel discussion titled “Shaping the AI Agenda for Human Empowerment and Inclusive Growth in the Philippines.”

The speakers explored the potential of AI to boost productivity, improve public services, and create new economic opportunities — while also addressing the risks of exclusion, job displacement, and uneven access to digital resources. Panelists stressed the need for forward-looking investments in education, research and development, and AI governance.

A recent IMF study cited during the event revealed that while one-third of Filipino workers are highly exposed to AI, 61% of those jobs could benefit from AI-enhanced productivity, particularly among young, urban, and college-educated workers.

The open forum that followed enabled participants to engage directly with the panelists on issues ranging from AI adoption in education and health to its implications for gender equity and development.

The 2025 HDR highlights that the Philippines, while making gains in its Human Development Index (HDI) — which rose to 0.720 in 2023 — continues to face challenges from inequality and climate vulnerability. The report argues for a pivot toward AI-augmented human development, where AI serves as a complement to human capabilities rather than a replacement.

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Source: Business World

New ecozones to bring in P3.2 billion in investments

Newly approved economic zones (ecozones) are expected to generate P3.2 billion in investments, according to the Philippine Economic Zone Authority (PEZA).

PEZA Director-General Tereso O. Panga said in a statement on Wednesday that the economic zones, which have an estimated cost of P3.2 billion, are expected to facilitate growth and development in the countryside and attract new locators.

“As a medium-term strategy under the Philippine Development Plan, the ecozones will play a vital role in attracting the much-needed investments in the country, generating more jobs for Filipinos, and contributing to accelerating the nation’s socioeconomic progress,” he said.

“For the first half of the year, President Ferdinand R. Marcos, Jr. approved four ecozones — two expansions of a manufacturing zone in Batangas and two new IT (information technology) parks in Tagbilaran City and Bacolod City,” he added.

The expansion of the Aboitiz-led Lima Technology Center has an estimated project cost of P1.4 billion. This is expected to add 42.72 hectares to the ecozone located in Lipa and Malvar, Batangas.

“These expansions are expected to further amplify Aboitiz InfraCapital’s contributions and better enable PEZA to execute its commitment to sustainable economic progress and national development,” PEZA said.

Megaworld is also developing an IT Park, to be called The Upper East, in Bacolod City. Spanning 33.96 hectares, the project involves the construction of two IT buildings, which have a projected cost of about P1.6 billion.

“Five information technology and business process management (IT-BPM) companies are expected to operate in the park, creating over 2,500 local jobs,” PEZA said.

“The development of this IT park solidifies the position of Bacolod City as an emerging IT-BPM hub in the country and will further create opportunities for innovation and development,” it added.

Meanwhile, Mr. Marcos also issued a proclamation for an IT park, covering about 11,237 square meters, in Tagbilaran.

The Tagbilaran Uptown IT Hub 2 has a projected cost of over P200 million and is expected to attract more IT-BPM locators to Bohol.

“A prospective locator has already expressed interest in investing upwards of P70 million and hiring over 500 Filipinos,” PEZA said.

Under the current administration, a total of 32 ecozones have been proclaimed, which have P13.406 billion in committed investments.

This year, PEZA is targeting the approval and proclamation of at least 30 ecozones, particularly in Central Luzon, Cebu, and Mindanao.

“PEZA is also working to establish the Palawan Mega Ecozone — the first of its kind in the country — and the Pantao Ecozone, eyed as the fifth public ecozone, both targeted for proclamation within the current administration,” PEZA said.

Citing the latest report from the Philippine Statistics Authority, the investment promotion agency said that the majority of the top local government units outside Metro Manila in terms of economic contribution and foreign investment flows are home to ecozones.

“PEZA continues to engage with local governments and developers in advancing ecozone development in the country,” Mr. Panga said.

Source: Business World