Mactan Economic Zone

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Mactan Economic Zone (MEZ), also known as the Mactan Export Processing Zone (MEPZ), is a manufacturing special economic zone (MSEZ) located in Lapu-Lapu City, Cebu, Philippines. Spanning of 150 hectares (370 acres) of land, the economic zone is comprised of two areas, namely MEPZ 1 and MEPZ 2, both home to more than 200 locators of the industrial, commercial, and retail industry. [1] [2] [3]

Contents

Both areas of the Mactan Economic Zone are operated by different developers. MEPZ 1 being operated by the Philippine Economic Zone Authority (PEZA), while MEPZ 2 is operated by the Philippine real-estate conglomerate Aboitiz Group.

History

The Mactan Economic Zone was established through the signing of Proclamation No. 1811 in 1979 by Philippine President Ferdinand Marcos. In 1996, MEPZ 2 was later established, with PEZA authorizing Aboitizland, Inc. to install and operate power distribution facilities within the 63-hectare ecozone. [4] [5]

Proposed expansions

In 2020, PEZA eyed for a 200-hectare coastal expansion of the economic zone through reclamation. As a second runway was proposed by its neighboring Mactan-Cebu International Airport (MCIA) at that time, developers of the airport proposed to construct the runway within the economic zone involving reclamation. PEZA Director-General Charito Plaza later raised a concern that the construction of a runway within the ecozone will cost ₱150 billion in damages as it may interrupt business operations within the area. [6]

In 2025, PEZA began to revive the expansion of the Mactan Economic Zone, along with a new 20-hectare Aerotropolis Ecozone development. A 50-hectare reclamation in the Mactan Channel was then proposed for the MEPZ 1 expansion, hoping to reduce landfill dependency and lower carbon footprint of locators while benefiting nearby communities. [7]

2022 MEZ job retrenchment

In 2023, Lapu-Lapu City's head of the Public Employment Service Office (PESO) Kim Domingo, reported that more that more than 4,000 workers were laid off from two major garment firms at the Mactan Economic Zone amid financial restraints caused by the prevailing COVID-19 pandemic and the aftermath of the recent Typhoon Rai. [8]

The Sports City group of companies, the owner of the five major garment companies situated in the economic zone, cited that domestic and global issues led to greater financial restraints, and thus forced them to retrench 75 percent of their workforce in September 2022, though the affected workers were promised to receive a legal separation pay. [9] [10]

Prior to the job retrenchment in 2022, more than 4,000 workers were also retrenched 2 years prior, in September 2020 at the height of the COVID-19 pandemic. [11] [12]

References

  1. "Aboitiz Economic Estates | MEZ2 Estate | Cebu Industrial Park". Aboitiz Economic Estates. Retrieved 8 December 2025.
  2. "PEZA backs industry locators' stance re relocation brought by the proposed MCIA runway in Lapu-Lapu City". 7 February 2020. Retrieved 8 December 2025.
  3. "Wayback Machine" (PDF). www.peza.gov.ph. Archived from the original (PDF) on 30 November 2023. Retrieved 8 December 2025.
  4. "Proclamation No. 1811, s. 1979. RESERVING FOR PURPOSES OF THE EXPORT PROCESSING ZONE AUTHORITY A CERTAIN PARCEL OF LAND OF THE PUBLIC DOMAIN SITUATED IN THE CITY OF LAPU-LAPU, ISLAND OF MACTAN, PROVINCE OF CEBU".
  5. "ERC CASE NO. 2007-490 MC. IN THE MATTER OF THE APPLICATION FOR APPROVAL OF THE SALE OF SUB-TRANSMISSION LINES/ASSETS WITHIN THE FRANCHISE AREA OF MACTAN ELECTRIC COMPANY, INC. (MECO)".
  6. "PEZA wants Mactan ecozone expansion". Archived from the original on 5 July 2020. Retrieved 8 December 2025.
  7. Cacho, Katlene O. (21 September 2025). "Aetropolis, MEZ 1 expansion in Cebu eyed". SunStar Publishing Inc. Retrieved 8 December 2025.
  8. Semilla, Nestle (21 July 2023). "4,000 workers lose jobs in Cebu ecozone". INQUIRER.net. Retrieved 8 December 2025.
  9. Perez, Annie (1 October 2022). "Over 4,000 workers laid off in Mactan export processing zone". ABS-CBN News .
  10. Sitchon, John (30 September 2022). "Over 4,000 workers in Mactan export hub lose jobs". RAPPLER. Retrieved 8 December 2025.
  11. Sunnexdesk (21 July 2023). "Group calls for job security in PH after 4k lose work". SunStar Publishing Inc. Retrieved 8 December 2025.
  12. Cabuenas, Jon Viktor D. (6 September 2020). "Labor group claims MEPZ firms fired 4k workers, appeals for gov't support". GMA News Online. Retrieved 8 December 2025.