The US-Marcos regime declared two new economic zones (ecozones) through a proclamation on January 6. They will rise in Batangas and Iloilo, augmenting the 32 already opened by the regime since it took power. The regime targets opening 30 more ecozones this 2026, mainly in rural areas.

One new ecozone will rise in Tanauan City, Batangas. It extends the existing First Industrial Township-Special Economic Zone in Barangay Pagaspas and Trapiche. The total ecozone covers more than five hectares of land. Residents fear eviction of communities affected by the looming expansion.

In Iloilo City, another ecozone will rise in Barangay San Rafael, Mandurriao District, covering 3.8 hectares of land. It will serve as an IT Park, a center for business process outsourcing or BPO.

The new ecozones will serve as enclaves of cheap and docile Filipino labor. Here, wages and benefits are pegged at low levels, unions and strikes are strictly banned, and labor rights are rampantly abused. To further entice foreign companies, the regime grants them various incentives, including tax exemptions.

No less than 430 ecozones exist nationwide. These fall under the direct administration of the Philippine Economic Zone Authority (PEZA), an agency under the Department of Trade and Industry, established in 1995 through Republic Act (RA) No. 7916 or The Special Economic Zone Act of 1995.

Similar zones have been created long before PEZA by virtue of the US-Marcos I regime’s RA No. 5490 or Foreign Trade Zone Authority (1969) and Presidential Decree No. 66 which created the Export Processing Zone Authority (1972).

Investments in PEZA zones typically include manufacturing industries, information technology or services, agro-industrial, tourism and recreation, freeport and logistics, all oriented towards exports. In 2025, the regime reported that approved investments in eco zones reached ₱260.89 billion, the highest since 2016. This nevertheless contributes only a small part to the country’s total investments.

The Marcos regime targets attracting foreign investments worth ₱300 billion in 2026. Contrary to Marcos’ claims, ecozones make no significant contribution to local production.

The working masses’ daily wages remain low despite “growing investments.” By the end of 2025, the minimum daily wage remained pegged at ₱695 in the National Capital Region, followed by ₱600 in Region IV-A and the lowest in BARMM at ₱411. The measly daily wages in the regions explain why PEZA prioritizes building new ecozones in the provinces.

Anti-“forced leave” struggle inside ecozone

In Freeport Area Bataan (FAB) in Mariveles, Bataan, the country’s first ecozone, workers of FCF Manufacturing Corporation recently won an initial victory against the company’s exploitative “forced leave” policy. After nearly a year of legal struggle, the labor court sided with the workers and declared the “forced leave” scheme illegal.

Workers filed a complaint in April 2025 at the National Labor Relations Commission in San Fernando City, Pampanga over four months of “forced leave.” Companies usually impose this when the factory has “no production” following a period of high quota and rapid production. Workers said the company violated the provision of notification prior to “forced leave” and did not compensate those affected.

FCF produces luxury items like leather bags and wallets branded Coach and Kate Spade. FCF belongs to China-based company Fashion Focus Ltd.