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