By Brian Campued
The Philippine Economic Zone Authority (PEZA) on Thursday hailed President Ferdinand R. Marcos Jr.’s decision to lift the moratorium on the establishment of new information technology (IT) parks and IT centers in Metro Manila, saying the move will strengthen the country’s competitiveness in attracting high-value IT-BPM (business process management) investments.
Issued by President Marcos Jr. on July 23, Administrative Order (AO) No. 45 restores PEZA’s authority to accept and evaluate all applications for IT centers and parks in the National Capital Region (NCR).
The new order amended AO No. 18, issued in June 2019, which suspended the processing and evaluation of applications for new ecozones in Metro Manila to encourage more investments in the countryside.
It, however, makes clear that the moratorium on all other economic zone applications in Metro Manila remains in force.
In a news release, Department of Trade and Industry (DTI) Secretary and PEZA Board Chair Cristina Roque described AO 45 as a “major boost” to the country’s IT-BMP investment proposition, providing the Philippines with greater opportunities to invite countries seeking more options on outsourcing business, digital operations, engineering, and other knowledge-based activities.
“By bringing more investment-ready locations into the PEZA ecosystem, we are giving global companies more options to enter and scale their operations in the Philippines while helping generate demand for available office spaces,” Sec. Roque said.
PEZA Director-General Tereso Panga likewise welcomed the issuance of the new AO as it enables the government to respond more effectively to the evolving requirements of the IT-BPM industry.
“AO 45 is a major policy breakthrough that strengthens our ability to compete for the next wave of IT-BPM, global capability center, and other technology-enabled investments,” Dir. Gen. Panga said.
According to PEZA, allowing new IT parks and centers in Metro Manila would not divert investments from the provinces but could instead drive their expansion as firms entering the capital could later expand to Central Luzon, CALABARZON, and other emerging growth centers, such as those within the Luzon Economic Corridor.
“Many global companies first establish themselves where there is already a deep talent pool, mature infrastructure, and an established business ecosystem. As they grow, we have the opportunity to bring their succeeding sites to other parts of the country,” Dir. Gen. Panga said.
While AO 45 allows property developers to register and market qualified office developments as PEZA IT parks and centers to attract IT-BPM expansion in Metro Manila, they will not be entitled to fiscal incentives.
“This allows our property developers to reposition qualified office spaces to meet the requirements of global IT-BPM companies. Developers can bring these projects into the PEZA ecosystem and market them as PEZA-registered locations, while DTI and PEZA will actively promote these spaces to potential locators looking for new or expansion sites in Metro Manila,” Dir. Gen. Panga said.
Citing Colliers Philippines’ projections, PEZA said Quezon City, the Bay Area, and Mandaluyong are among the locations expected to benefit from the lifting of the moratorium, while investments could also go to Manila, Navotas, and Valenzuela.
According to PEZA, five projects have applied for accreditation—two in Makati City, and one each in Muntinlupa City, Taguig City, and Parañaque City.
Metro Manila hosts 178 IT parks and centers with 1,072 locator companies employing about 740,000 workers.
-jpv
