PPHILIPPINEHILIPPINEEECONOMICCONOMIC
ZZONEONEAAUTHORITYUTHORITY
PHILIPPINE ECONOMIC ZONE AUTHORITY
An investment promotion agency attached to the Department of Trade and Industry.
PEZA took over the functions of the former Export Processing Zone Authority (EPZA) in 1995.
PEZA supervises economic zones that are proclaimed under its mandate nationwide.
Philippine Economic Zone Authority
Support government’s efforts to:
Promote Investment
Create Employment
Generate Export
BAGUIO EPZBAGUIO EPZ
BATAAN EPZBATAAN EPZ
MACTAN EPZ MACTAN EPZ
CAVITE EPZ CAVITE EPZ
Total Area : 3,183 hectares Total Area : 3,183 hectares
LUISITA INDUSTRIAL PARK
CARMELRAY DEV’T. CORP.
SUBIC SHIP. ENG’G. INC.
VICTORIA WAVE
GATEWAY BUSINESS PARK
LIGHT IND. & SCIENCE PARK
LAGUNA TECHNOPARK
LAGUNA INT’L. IND’L PARK
TABANGAO SPECIAL EPZ
FIRST CAVITE IND’L. ESTATE
LEYTE IND’L. DEV’T ESTATE
MACTAN ECOZONE II
16 EPZA- REGISTEREDPUBLIC & PRIVATE ECONOMIC ZONES
( 1969 - 1994)
MAJOR POLICY THRUST
PEZA ceased developing economic zones
Encouraged private sector to develop economic zones
TOTAL OF 195 ECONOMIC ZONES *BAGUIO CITY ECONOMIC ZONE
JOHN HAY SPECIAL TOURISM ECONOMIC ZONESANCTUARY IT BUILDING
SM BAGUIO CYBERZONE BUILDING FORT ILOCANDIA TOURISM ECONOMIC ZONE
PANGASINAN INDUSTRIAL PARK IILUISITA INDUSTRIAL PARK
TECO SPECIAL ECONOMIC ZONETARLAC PROVINCIAL INFORMATION TECHNOLOGY PARK II
SM CITY PAMPANGA ROBINSONS LUISITA
CLARK TI SPECIAL ECONOMIC ZONEANGELES INDUSTRIAL PARK
PAMPANGA EXPORT PROCESSING ZONESTA. MARIA INDUSTRIAL PARK
SUPIMA ECIRCLE PHILIPPINE PACKING AGRICULTURAL EPZ
VICTORIA WAVEROBINSONS PLACE NOVALICHES
DILIMAN IT BUILDINGCONVERGYS IT BUILDING
HTMT CYBER PARKEDSA CENTRAL IT CENTER
SUN PLAZA EDSA CENTRAL IT CENTER 2
E-SQUARE INFORMATION TECHNOLOGY PARKTOTAL CORPORATE CENTER I
MCKINLEY HILL CYBER PARKMARKET! MARKET!
ST. LUKE’S MEDICAL CENTER GLOBAL CITY MULTINATIONAL BANCORPORATION
PEOPLESUPPORT CENTER IT BUILDINGNORTHGATE CYBERZONE
METROPOLIS STARMACROASIA ECOZONE
ASAHI SPECIAL ECONOMIC ZONEEUGENIO LOPEZ JR. COMMUNICATION CENTER
GLOBAL TRADE CENTEREASTWOOD CITY CYBERPARK
SMNE IT CENTEREXPORTBANK PLAZA BUILDING
THE ENTERPRISE CENTERRCBC PLAZA
BURGUNDY CORPORATE TOWERLIBRAN HOUSE IT CENTER
MJ PLAZA MANILA HARBOUR CENTER
NEWPORT CITY CYBERTOURISM ZONESM ICITY
SM ICITY 2 SM CYBERZONE 1
G.T. TOWER INTERNATIONALTHE PASEO CENTER IT BUILDING
AMKOR TECHNOLOGYPACIFIC INFORMATION TECHNOLOGY CENTER
JGC PHILIPPINES BUILDINGSDC IT BUILDING
ASIAN STAR BUILDINGTHE PARAGON CORPORATE CENTRE
ROBINSONS CYBERPARKROBINSONS-EQUITABLE TOWER
PBCOM TOWERANSON’S CENTER
SUMMIT ONE OFFICE TOWERPHILAMLIFE I.T. BUILDING
6750 AYALA AVE. BLDG.6780 AYALA
6788 AYALA AVE. BLDG.JG SUMMIT CENTER
DELA ROSA E-SERVICES BUILDINGSM MAKATI CYBERZONE BUILDING
SM MAKATI CYBER ZONE 2 BUILDINGGLORIETTA 5
UNIONBANK PLAZABPI BUENDIA CENTERALLEGRO IT CENTER
EAST CYBER GATEWORLDWIDE CORPORATE CENTER
GATEWAY OFFICE TOWERCYBER PARK BUILDING ONE
PACIFIC STAR BUILDINGPHILAMLIFE IT TOWER
NISCOM IT BUILDING INSULAR LIFE BUILDING
INSULAR LIFE CORPORATE CENTER
CAVITE ECONOMIC ZONELAGUNA INT’L. INDUSTRIAL PARKLIGHT INDUSTRY & SCIENCE PARK ILIGHT INDUSTRY & SCIENCE PARK IILIGHT INDUSTRY & SCIENCE PARK IIITABANGAO SPECIAL ECONOMIC ZONELAGUNA TECHNOPARK LAGUNA TECHNOPARK ANNEXFIRST CAVITE INDUSTRIAL ESTATEGATEWAY BUSINESS PARKKEPPEL PHILIPPINES MARINE SPECIAL ECONOMIC ZONEGREENFIELD AUTOMOTIVE PARKYTMI REALTY SPECIAL ECONOMIC ZONELIMA TECHNOLOGY CENTERCOCOCHEM AGRO INDUSTRIAL PARKPEOPLE’S TECHNOLOGY COMPLEXSAN LAZARO TOURISM AND BUSINESS PARKGOLDEN MILE BUSINESS PARKFIRST PHILIPPINE INDUSTRIAL PARKTIGERLAND AGRO-INDUSTRIAL ECONOMIC ZONECARMELRAY INDUSTRIAL PARKCARMELRAY INDUSTRIAL PARK IICALAMBA PREMIERE INTERNATIONAL PARKTOYOTA STA. ROSA SEZAG&P SPECIAL ECONOMIC ZONE DAIICHI INDUSTRIAL PARKALLEGIS IT PARK FILINVEST TECHNOLOGY PARK - CALAMBAEASTBAY ARTS, RECREATIONAL AND TOURISMSM CITY BACOOR LAKESIDE EVOZONEROBINSONS BIG R SUPERCENTERSTA. ROSA COMMERCIAL IT PARKROBINSONS PLACE STA. ROSA SAINT FRANCES CABRINI MEDICAL TOURISM PARKPHILTOWN TECHNOLOGY PARKROBINSONS PLACE LIPAPAMALICAN ISLAND TOURISM ECOZONECAMARINES SUR IT PARKBORACAY ECO-VILLAGE RESORT MACTAN ECONOMIC ZONEBIGFOOT IT PARKMACTAN ECONOMIC ZONE IISYNERGIS IT CENTER HDMF-WTCI IT TOWERCEBU IT TOWERMANGO SQUARECEBU SOUTH ROAD PROPERTIESARCENAS ESTATE IT BUILDINGA. D. GOTHONG IT CENTERJY SQUARE IT CENTERJY SQUARE IT CENTER III CEBU LIGHT INDUSTRIAL PARKLEXMARK PLAZA OAKRIDGE INFORMATION TECHNOLOGY CENTER PHIL. BXT CORP. TOURISM ECONOMIC ZONEPIONEER HOUSE CEBUWEST CEBU INDUSTRIAL PARKNEW CEBU TOWNSHIPMRI ECONOMIC ZONEHVG ARCADE IT PARKINNOVE IT PLAZAASIATOWN IT PARKFEDERATED IT PARKDAMOSA IT PARKROBINSONS CYBERGATE CENTERPUEBLO DE ORO IT PARKJASAAN MIS. ORIENTAL ECOZONEBUKIDNON AGRO-RESOURCES EXPORT ZONEDBP IT PLAZATHE BLOCK IT PARKONE SANPARQLOPUE'S EAST I. T. CENTER LUXUR PLAZA ITFORMATION CENTRE SMCI IT CENTER CIIF AGRO-INDUSTRIAL PARKRIO TUBA EXPORT PROCESSING ZONESARANGANI ECONOMIC DEVELOPMENT ZONESRC ALLAH VALLEY ECONOMIC DEVELOPMENT ZONESRC CALUMPANG ECONOMIC DEV’T. ZONEFIRST ORIENTAL BUSINESS & INDUSTRIAL PARKNCCC DAVAO IT CENTERLUISA AVENUE SQUARE IT CENTER NCCC DAVAO IT CENTERMANTICAO ECOZONE CORPORATION SEZ
MARVIN PLAZA BUILDINGDPC PLACE BUILDINGMSE CENTERTRAFALGAR PLAZAOCTAGON IT BUILDINGVITRO INTERNET DATA CENTER BUILDINGWYNSUM CORPORATE PLAZA IT BUILDING TRANSCOM CENTERORIENT SQUARE IT BUILDINGRIVERBANK CENTER ICT BLDG. IRIVERBANK CENTER ICT BLDG II BLUE WAVE MARIKINAUP SCIENCE & TECHNOLOGY PARK (South)UP SCIENCE & TECHNOLOGY PARK (North)
FOOD TERMINAL INC. SEZEMI SPECIAL ECOZONE
BATAAN ECONOMIC ZONESUBIC SHIPYARD
PLASTIC PROCESSING CENTER SEZHERMOSA ECOZONE
LEYTE IND’L. DEVELOPMENT ESTATEMEGACENTER IT BUILDING
LEYTE INFORMATION COMMUNICATION TECH. PARKJOSE PANGANIBAN SEZ
MISIBIS RESORTS AND ESTATESRAPU-RAPU ECOZONE
Manufacturing Economic ZonesInformation Technology Parks / CentersAgro-Industrial Economic ZonesTourism Economic ZonesMedical Tourism Parks / Centers
64118
292
* Legend:
MANILA
CEBU
64
118
9
1
1
2
Manufacturing
IT Parks (26) and IT Centers (92)
Tourism Ecozones
Medical Tourism Park
Medical Tourism Center
Agro-Industrial Centers
1995 – 2008 Economic Zone Investments : P 1.327 Trillion
449%
24%
144 % 61 % .6%EPZA
PEZA
12.7 B9.6 B
‘86 -’931994
52.5 B65.3 B
159.7 B96.9 B
155.7 B156.7 B
80.8 B38.7 B31.7 B50.5 B67.2 B83.7 B
133.7 B154.8 B
19951996199719981999200020012002200320042005200620072008
ECONOMIC ZONE INVESTMENTS
89
160
140
120
100
80
60
40
20
0
57 %
33 %
25 %
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
60 %
07
16 %
08
14-YEAR ECONOMIC ZONE INVESTMENTS
PEZA
1995 - 2008P 1.327 T
EPZA1981 –1994P 33.700 B
EPZA1981 –1994P 33.700 B
38TimesBigger
491%
Increase
COMPARATIVE NUMBER OF LOCATORS1994 / 2008
1994 2008
0
400
800
1,200
1,600
331
1,956
2,000
LOCATOR INVESTMENTS BY NATIONALITY( 1995 – 2008 )
20.28 % Filipino
18.65 % American
3.97 % Korean
5.88 % Dutch
3.74 % British
3.20 % Singaporean
2.38 % British Cayman Islands
1.14 % British Virgin Islands
3.63 % Others
2.24 % Germans
1.08 % Taiwanese
33.81 % Japanese
LOCATOR INVESTMENTS BY PRODUCT SECTOR( 1995 - 2008 )
Information TechnologyServices
Transport and Car Parts
Electrical Machineryand Apparatus
Chemical and ChemicalProductsMedical, Precision andOptical Instruments
Rubber andPlastic ProductsGarments and Textiles
Other Manufactures
7.66 %
5.80 %
6.75 %
2.41 %
2.05 %
1.56 %
0.95 %
26.44 %
46.38 %Electronics andSemiconductors
In Billion US Dollars
1995 : US $ 4.284
1996 : US $ 6.500
1997 : US $ 10.626
1998 : US $ 13.270
1999 : US $ 15.807
2000 : US $ 20.025
2001 : US $ 19.498
2002 : US $ 22.775
2003 : US $ 27.313
2004 : US $ 30.924
2005 : US $ 32.030
2006 : US $ 36.077
1994 : US $ 2.739
2007 : US $ 40.889
56.4 %
51.7 %
63.5 %
24.9 %
19.1 %
26.7 %
- 2.5%
16.8%
19.9%
13.2%
3.6%
12.6%
13.3%
2008 : US $ 40.543
ECOZONE EXPORTS
- 0.84%
PHILIPPINE MANUFACTURED EXPORTS ( Billion U.S. Dollars )
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
2.7
9.5
4.3
11.5
6.5
12.0
10.6
11.0
13.3
12.8
15.8
15.9
20.0
14.3
19.5
9.1
22.7
8.8
27.2
4.8
30.7
4.8
Economic Zone Manufactured Exports
Other Philippine Manufactured Exports
40
35
30
25
20
15
10
5
0
22%
78%
27%
73%
35%
65%49%
51%
51%
49%
50%
50%58%
42%
68%
32%
72%
28%85%
15%
86%
14%
12.2
15.8
18.5
21.6
26.1
31.734.3
28.6
31.5 32.0
35.5
2005
31.6
5.3
86%
14%
36.9
2006
35.1
6.0
85%
15%
41.1
2007
36.9
5.9
86%
14%
42.845
1995
1997
1996
1998
1999
2000
2001
2002
2003
2004
2005
2006
121,823
152,250
183,709
219,791
247,076
91,860
278,407
289,548
328,384
362,851
406,752
451,279
545,025
1994
2007 593,108
2008 608,387
ECOZONE DIRECT EMPLOYMENT
2.58 %
PEZAgrants incentives to:
• Export, I.T., Medical Tourism, and Agro-Industrial Enterprises
• Logistics Enterprises
• Facilities / Utilities Enterprises
• Developers of economic zones which includes Industrial Estates, Export Processing Zones, I.T. Parks and Buildings, Tourism Zones, Medical Tourism Parks and Buildings, Retirement Zones, and Agro-Industrial Zones
• Income Tax Holiday (ITH) or Exemption from Corporate Income Tax for four years, extendable to a maximum of eight years;
• After the ITH period, payment of the special 5% Tax on Gross Income, in lieu of all national and local taxes;
• Exemption from duties and taxes on imported capital equipment, spare parts, supplies, and raw materials;
• Domestic sales allowance of up to 30% of total sales;
• Exemption from export taxes, wharfage dues, imposts and fees;
• Additional deduction of 50% of the total cost of manpower training when the company is in the special 5% gross income tax regime;
• Zero Value Added Tax (VAT) Rate on local purchases to include telecommunications, power, and water bills;
VERY COMPETITIVE INCENTIVES for LOCATORS
• Exemption from payment of real property tax on land;
• Exemption from payment of local government fees such as Mayor’s Permit, Business Permit, Permit on the Exercise of Profession/Occupation/Calling, Health Certificate Fee, Sanitary Inspection Fee, and Garbage Fee;
• Simplified import and export procedures;
• Employment of foreign nationals;
• Special visa for foreign investors and immediate family members;
• Other incentives under Executive Order 226 (Omnibus Investment Code of 1987), as may be determined by the PEZA Board.
VERY COMPETITIVE INCENTIVES for LOCATORS
TOP ECONOMIC ZONE INVESTORS
TI (Philippines), Inc. Electronics American
Amkor Technology Electronics American
Intel Technology Electronics American
Fujitsu Computer Electronics Japanese
NXP Semiconductors Electronics Dutch
Sunpower Philippines Solar Cells Brit. Cayman
Toshiba Information Electronics Japanese
Epson Precision Electronics Japanese
Tsuneishi Heavy Ind Shipbuilding Japanese
Integrated Micro Electronics British
Hitachi Global Storage Electronics Dutch
Toyota Autoparts Automotive Japanese
Coral Bay Nickel Corp. Minerals Japanese
TOP ECONOMIC ZONE INVESTORS
TDK Fujitsu Phils. Electronics Japanese
Lufthansa Technik Air Transport German
Samsung Electro-Mech Electronics Korean
Ibiden Philippines Electronics Japanese
Continental Temic Electronics German
Convergys IT American
Rohm Electronics Electronics Japanese
Terumo (Philippines) Med. Instruments Japanese
Lexmark Electronics Swiss
Pilipinas Kao, Inc. Coco products Japanese
JP Morgan Chase Bank IT American
Taiyo Yuden Electronics Japanese
Panasonic Comm. Electronics Dutch
TOP ECONOMIC ZONE INVESTORS
Ford Motor Company Automotive American
Teletech Customer Care I.T. American
Cypress Manufacturing Electronics American
Mitsumi Philippines Electronics Japanese
Hoya Glass Disk Electronics Singaporean
Nidec Philippines Electronics Japanese
Manticao Nickel Corp. Mineral Filipino
Analog Devices Electronics Dutch
Nidec Precision Electronics Japanese
eTelecare Global IT Filipino
Takata (Philippines) Automotive Japanese
Samsung Electronics Electronics Korean
ADVANTAGES OF LOCATING IN
PEZA ECONOMIC ZONES
• World-class, environment friendly
• Fully secured area perimeter
• Adequate, clean and uninterrupted power supply
• Adequate water supply
• State-of-the-art telecommunications facilities
• Ready-to-occupy standard factory buildings
• Waste water treatment facilities
• Presence of Banks, Fire Fighting Facilities, Sports Facilities
PEZA ECONOMIC ZONES
PEZA recognizes
• Just-in-time deliveries• Reduction of cost
are musts for exports to be competitive
FAST TURNAROUNDESPECIALLY FOR ELECTRONICS
96 HOURS OR 4 DAYS TO COMPLETE THE PRODUCTION CYCLE:
DAY 1
• Japanese or Asian company sends raw materials to the Philippines.
• Raw materials arrive in the Philippines on the same day. • Cleared by Customs on the same day.• Received by the Economic Zone Company on the same day.
DAY 2 - DAY 3
• Products are manufactured.
DAY 4
• Finished products brought to the Port.• Cleared by Customs on the same day.• Shipped to Japan or Asian country on the same day.• Arrive in Japan or Asian country on the same day.
AS A CONSEQUENCE:
• Most companies EARN PROFIT even on their first year of operation.
• Most companies have been EXPANDING their operations.
• Building and Occupancy Permits are issued by PEZA.
• Import and Export Permits are issued by PEZA.
• Special multiple-entry non-immigrant visa processed in PEZA.
• Harmonized customs processes because of PEZA-BOC MOA.
• Automated Import & Export Procedures (Paperless Transactions).
• Environment Clearance made easy because of PEZA-DENR MOA.• Exemption from Local Government Business Permits for
companies inside PEZA.• Registration requirements simplified, registration forms made
uncomplicated, approval made easy.
If a company files its application 1 day before a Board Meeting, its application will be included in the agenda for approval. The PEZA Board meets 2 times a month.
PEZA IS A ONE-STOP SHOP
• At the zones, PEZA provides 24 hours a day, 7 days a week of continuous service to locator companies.
• The Director General herself and other PEZA officials are on call 24 hours a day, 7 days a week.
PEZA IS A “NON-STOP SHOP”
NO GRAFT &
CORRUPTION
PEZA’s TOTAL COMMITMENTTO INVESTORS
• NO RED TAPE• ONLY RED CARPET TREATMENT
PEZA’s TOTAL COMMITMENT TO INVESTORS
OTHERPEZA ECOZONE
PROGRAMS
INFORMATION TECHNOLOGY PROGRAM
TOURISM ECONOMIC ZONES
MEDICAL TOURISM ECONOMIC ZONES
RETIREMENTECONOMIC ZONES
AGRO-INDUSTRIALECONOMIC ZONES
CREATINGCREATINGOPPORTUNITIESOPPORTUNITIES
FORFORFILIPINOSFILIPINOS
IN THEIN THECOUNTRYSIDE COUNTRYSIDE