NewsMacroLeadership Changes at Philippines' BoC and PEZA Could Disrupt Reforms, Exporters Warn

Leadership Changes at Philippines' BoC and PEZA Could Disrupt Reforms, Exporters Warn

Author: Bworldonline·

Key Takeaways

  • •Philexport warned that potential leadership changes at the Bureau of Customs and PEZA could disrupt ongoing reforms and undermine investor confidence, urging the government to consult affected stakeholders first.
  • •Customs Commissioner Ariel F. Nepomuceno confirmed his transfer to the BCDA, while BIR Commissioner Charlito Martin R. Mendoza announced he would head the BoC, with Finance Undersecretary Rolando T. Ligon, Jr. replacing him at the BIR.
  • •PEZA's approved investments reached P309.63 billion from January to October, surpassing its P300-billion target, a momentum Philexport said should be protected.
  • •SEIPI expressed support for PEZA Director-General Tereso O. Panga, citing efforts including the clearance of 284 shipments amid airport cargo congestion and the digitalization of PEZA's Gatepass Management System and electronic Zone Transfer System.
  • •Analysts cautioned that leadership turnover risks disrupting institutional momentum and could introduce bureaucratic delays, particularly with less than two years remaining in the Marcos administration.
Leadership Changes at Philippines' BoC and PEZA Could Disrupt Reforms, Exporters Warn

By Justine Irish D. Tabile, Senior Reporter

Potential leadership changes at the Bureau of Customs (BoC) and the Philippine Economic Zone Authority (PEZA) could disrupt ongoing reforms and weaken investor confidence, according to the Philippine Exporters Confederation, Inc. (Philexport).

In a statement on Thursday, the exporters' group expressed concern over reports of a possible government reshuffle involving Customs Commissioner Ariel F. Nepomuceno and PEZA Director-General Tereso O. Panga.

The two agencies anchor the country's trade and investment machinery: the BoC is tasked with border protection, revenue collection and the facilitation of legitimate trade, while PEZA administers the economic zones that generate investments, exports and employment.

While Malacañang has not made any formal announcement, Mr. Nepomuceno confirmed to BusinessWorld on Thursday that he would be transferred to the Bases Conversion and Development Authority (BCDA).

In a Facebook post late on Thursday, Bureau of Internal Revenue (BIR) Commissioner Charlito Martin R. Mendoza said he had accepted a new assignment to head the BoC. He added that Finance Undersecretary Rolando T. Ligon, Jr. will replace him at the BIR.

“I look forward to working with the men and women of the BoC to carry out the priorities of President [Ferdinand R.] Marcos, Jr. and [Finance] Secretary [Frederick D.] Go — strengthening border protection, sustaining revenue collection, and facilitating legitimate trade. We have important work ahead of us,” Mr. Mendoza said.

Exporters Call for Institutional Continuity

“At a time when the country needs to strengthen investor confidence, expand exports, and improve the ease of doing business, Philexport believes that preserving institutional continuity and sustaining reforms in these two agencies should be given utmost consideration,” the group said.

The industry group cited PEZA's “impressive investment performance,” with approved investments reaching P309.63 billion in the January-to-October period, surpassing the agency's P300-billion target.

“These figures reflect the confidence of both foreign and domestic investors in the country's economic zones and underscore PEZA's important role in generating investments, exports, and employment,” Philexport said. “Such momentum should be protected and further strengthened, particularly as the country competes with other economies for a larger share of global investments.”

Semiconductor Industry Backs Panga

The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) also expressed support for Mr. Panga, citing his efforts to address industry concerns, improve logistics and promote digitalization.

“SEIPI values its strong partnership with PEZA under the leadership of Director-General Tereso O. Panga. His support for industry collaboration, logistics facilitation, international promotion, and digitalization initiatives has helped address key concerns of our members,” SEIPI President Danilo C. Lachica said in a statement.

SEIPI cited PEZA's collaboration with the BoC and PAIRCARGO to address cargo congestion at the Ninoy Aquino International Airport, which led to the clearance of 284 shipments by early August. It also highlighted ongoing initiatives to digitalize PEZA's Gatepass Management System and roll out the electronic Zone Transfer System to streamline transactions and improve operational efficiency for economic zone locators.

Philexport likewise recognized the BoC's efforts to strengthen transparency, accountability, digitalization and operational efficiency under Mr. Nepomuceno. It noted that the agency was no longer among the 10 government agencies with the most complaints received by the Anti-Red Tape Authority in the first quarter of 2026.

The exporters' group urged the government to consult affected stakeholders before proceeding with any leadership changes, including foreign chambers of commerce and economic zone locators in the case of PEZA. For the BoC, it said consultations should be conducted through the Customs Industry Consultative and Advisory Council, an existing platform for government-industry dialogue.

Officials Signal Restructuring

At a press briefing on Thursday, Mr. Go hinted at the transfer of BCDA President and Chief Executive Officer Joshua M. Bingcang to “the second-largest investment promotion agency.”

“The country is fortunate that he will now bring his expertise to the country's second-largest investment promotion agency,” Mr. Go said. Asked whether the reported reshuffle could affect the investment performance of the agencies, he noted the BCDA's “very good performance” under Mr. Bingcang.

In a separate statement, Mr. Nepomuceno urged Customs personnel to support his successor. “The next commissioner is a highly respected and capable leader. I ask that you extend to him the same trust, cooperation, and commitment that you have generously given me, so that together you can bring the BoC to even greater heights,” he said.

Asked to comment, Mr. Go said all announcements will be made by Malacañang. “We all serve at the pleasure of the President. It is the President's prerogative to appoint the right person for the right position,” he said.

Until those announcements come, the near-term markers for industry will be whether the stakeholder consultations Philexport has requested take place before any moves are finalized, and whether the digitalization and trade-facilitation programs underway at both agencies carry through the transition.

Analysts Urge Caution

Ederson DT. Tapia, a political science professor at the University of Makati, said leadership continuity should be given serious consideration, particularly as the Marcos administration has less than two years remaining to implement and institutionalize reforms.

“A leadership change may bring fresh direction, but it also risks disrupting organizational momentum,” he said. “Government positions may change hands, but institutional reforms should not have to start over every time leadership changes.”

Meanwhile, University of Asia and the Pacific economist Marco Antonio C. Agonia said businesses would likely assess the potential benefits of the reshuffle and whether existing plans would be sustained.

“Reshuffling collections and investment leadership may allow for improvements in cross-bureau efficiency, which may be warranted given the economy's widening financing needs,” Mr. Agonia said. “Firms will also likely assess whether this leadership shakeup can facilitate continuity of existing plans. New leadership may bring new priorities, which could introduce bureaucratic delays.”

Source: BusinessWorld