Cebu’s manpower and infra to fuel growth under new law

CEBU, Philippines — Cebu is poised to benefit significantly from the newly enacted CREATE More Act (Republic Act No. 12066), thanks to its robust infrastructure and ample manpower supply.

According to Philippine Economic Zone Authority (PEZA) Director General Tereso O. Panga, Cebu’s economic zones, investor-friendly infrastructure, and skilled labor force make it one of the most attractive destinations for incoming foreign direct investments (FDIs).

Panga, who was the keynote speaker at the recently concluded Aboitiz InfraCapital (AIC) Executives Forum held at Bai Hotel in Mandaue City, expressed confidence that Cebu is well-positioned to attract more FDIs following the passage of the CREATE More Act.

The CREATE More Act, signed into law by President Ferdinand "Bongbong" Marcos Jr. on November 10, 2024, addresses inefficiencies in the country’s tax system by amending the original CREATE Act (R.A. 11534). Key provisions include a reduced corporate income tax rate, enabling businesses to allocate more resources toward reinvestment, expansion, and innovation.

“This new law will not only attract foreign corporations but also position Cebu as a competitive economic hub,” Panga said, emphasizing Cebu’s potential to become a center for advanced technologies, manufacturing, and services.

“With the CREATE More Act, Cebu is on track to become a magnet for foreign direct investments, paving the way for economic growth and increased employment opportunities for Cebuanos,” he added.

The law is expected to significantly boost entrepreneurship, improve wages, and create new job opportunities. By enhancing Cebu’s economic environment, the CREATE More Act ensures that industries recovering from the pandemic can regain momentum and achieve long-term sustainability.

As Cebu transitions into a global investment destination, local enterprises and international corporations are encouraged to explore opportunities within the province.

Panga expressed optimism, saying, “Cebu is on its way to becoming one of the most dynamic economic spaces in the region, delivering inclusive growth for its people.”

PEZA has already exceeded its 2023 investment approvals, recording a total of P186.098 billion as of November 2024. This marks a significant increase from the P175.71 billion approved last year, setting the agency on track to meet its 2024 target of P200 billion in investments.

From January to November, the PEZA Board approved 222 new and expansion projects. These investments are expected to generate more than US$3 billion in exports and create 60,000 direct jobs. Compared to the same period in 2023, this represents a 32 percent increase in investment approvals, with P140.884 billion approved during the first 11 months of last year.

Panga attributed this robust performance to strong investor confidence in the country’s economic policies.