PHILIPPINE ECONOMIC ZONE AUTHORITY 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 proclaimed under its mandate nationwide. are Philippine Economic Zone Authority Support government’s efforts to: Promote Investment Create Employment Generate Export 16 EPZA- REGISTERED PUBLIC & PRIVATE ECONOMIC ZONES ( 1969 - 1994) LUISITA INDUSTRIAL PARK SUBIC SHIP. ENG’G. INC. BAGUIO EPZ VICTORIA WAVE CARMELRAY DEV’T. CORP. BATAAN EPZ CAVITE EPZ GATEWAY BUSINESS PARK LIGHT IND. & SCIENCE PARK LAGUNA TECHNOPARK MACTAN EPZ LAGUNA INT’L. IND’L PARK TABANGAO SPECIAL EPZ FIRST CAVITE IND’L. ESTATE LEYTE IND’L. DEV’T ESTATE MACTAN ECOZONE II Total Area : 3,183 hectares 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 ZONE SANCTUARY IT BUILDING SM BAGUIO CYBERZONE BUILDING FORT ILOCANDIA TOURISM ECONOMIC ZONE PANGASINAN INDUSTRIAL PARK II LUISITA INDUSTRIAL PARK TECO SPECIAL ECONOMIC ZONE TARLAC PROVINCIAL INFORMATION TECHNOLOGY PARK II SM CITY PAMPANGA ROBINSONS LUISITA CLARK TI SPECIAL ECONOMIC ZONE ANGELES INDUSTRIAL PARK PAMPANGA EXPORT PROCESSING ZONE STA. MARIA INDUSTRIAL PARK SUPIMA ECIRCLE PHILIPPINE PACKING AGRICULTURAL EPZ VICTORIA WAVE ROBINSONS PLACE NOVALICHES DILIMAN IT BUILDING CONVERGYS IT BUILDING HTMT CYBER PARK EDSA CENTRAL IT CENTER SUN PLAZA EDSA CENTRAL IT CENTER 2 E-SQUARE INFORMATION TECHNOLOGY PARK TOTAL CORPORATE CENTER I MCKINLEY HILL CYBER PARK MARKET! MARKET! ST. LUKE’S MEDICAL CENTER GLOBAL CITY MULTINATIONAL BANCORPORATION PEOPLESUPPORT CENTER IT BUILDING NORTHGATE CYBERZONE METROPOLIS STAR MACROASIA ECOZONE ASAHI SPECIAL ECONOMIC ZONE EUGENIO LOPEZ JR. COMMUNICATION CENTER GLOBAL TRADE CENTER EASTWOOD CITY CYBERPARK SMNE IT CENTER EXPORTBANK PLAZA BUILDING THE ENTERPRISE CENTER RCBC PLAZA BURGUNDY CORPORATE TOWER LIBRAN HOUSE IT CENTER MJ PLAZA MANILA HARBOUR CENTER NEWPORT CITY CYBERTOURISM ZONE SM ICITY SM ICITY 2 SM CYBERZONE 1 G.T. TOWER INTERNATIONAL THE PASEO CENTER IT BUILDING AMKOR TECHNOLOGY PACIFIC INFORMATION TECHNOLOGY CENTER JGC PHILIPPINES BUILDING SDC IT BUILDING ASIAN STAR BUILDING THE PARAGON CORPORATE CENTRE ROBINSONS CYBERPARK ROBINSONS-EQUITABLE TOWER PBCOM TOWER ANSON’S CENTER SUMMIT ONE OFFICE TOWER PHILAMLIFE I.T. BUILDING 6750 AYALA AVE. BLDG. 6780 AYALA 6788 AYALA AVE. BLDG. JG SUMMIT CENTER DELA ROSA E-SERVICES BUILDING SM MAKATI CYBERZONE BUILDING SM MAKATI CYBER ZONE 2 BUILDING GLORIETTA 5 UNIONBANK PLAZA BPI BUENDIA CENTER ALLEGRO IT CENTER EAST CYBER GATE WORLDWIDE CORPORATE CENTER GATEWAY OFFICE TOWER CYBER PARK BUILDING ONE PACIFIC STAR BUILDING PHILAMLIFE IT TOWER NISCOM IT BUILDING INSULAR LIFE BUILDING INSULAR LIFE CORPORATE CENTER MARVIN PLAZA BUILDING DPC PLACE BUILDING MSE CENTER TRAFALGAR PLAZA OCTAGON IT BUILDING VITRO INTERNET DATA CENTER BUILDING WYNSUM CORPORATE PLAZA IT BUILDING TRANSCOM CENTER ORIENT SQUARE IT BUILDING RIVERBANK CENTER ICT BLDG. I RIVERBANK CENTER ICT BLDG II BLUE WAVE MARIKINA UP SCIENCE & TECHNOLOGY PARK (South) UP SCIENCE & TECHNOLOGY PARK (North) FOOD TERMINAL INC. SEZ EMI SPECIAL ECOZONE BATAAN ECONOMIC ZONE SUBIC SHIPYARD PLASTIC PROCESSING CENTER SEZ HERMOSA ECOZONE LEYTE IND’L. DEVELOPMENT ESTATE MEGACENTER IT BUILDING LEYTE INFORMATION COMMUNICATION TECH. PARK JOSE PANGANIBAN SEZ MISIBIS RESORTS AND ESTATES RAPU-RAPU ECOZONE MANILA CEBU * Legend: Manufacturing Economic Zones Information Technology Parks / Centers Agro-Industrial Economic Zones Tourism Economic Zones Medical Tourism Parks / Centers 64 118 2 9 2 CAVITE ECONOMIC ZONE LAGUNA INT’L. INDUSTRIAL PARK LIGHT INDUSTRY & SCIENCE PARK I LIGHT INDUSTRY & SCIENCE PARK II LIGHT INDUSTRY & SCIENCE PARK III TABANGAO SPECIAL ECONOMIC ZONE LAGUNA TECHNOPARK LAGUNA TECHNOPARK ANNEX FIRST CAVITE INDUSTRIAL ESTATE GATEWAY BUSINESS PARK KEPPEL PHILIPPINES MARINE SPECIAL ECONOMIC ZONE GREENFIELD AUTOMOTIVE PARK YTMI REALTY SPECIAL ECONOMIC ZONE LIMA TECHNOLOGY CENTER COCOCHEM AGRO INDUSTRIAL PARK PEOPLE’S TECHNOLOGY COMPLEX SAN LAZARO TOURISM AND BUSINESS PARK GOLDEN MILE BUSINESS PARK FIRST PHILIPPINE INDUSTRIAL PARK TIGERLAND AGRO-INDUSTRIAL ECONOMIC ZONE CARMELRAY INDUSTRIAL PARK CARMELRAY INDUSTRIAL PARK II CALAMBA PREMIERE INTERNATIONAL PARK TOYOTA STA. ROSA SEZ AG&P SPECIAL ECONOMIC ZONE DAIICHI INDUSTRIAL PARK ALLEGIS IT PARK FILINVEST TECHNOLOGY PARK - CALAMBA EASTBAY ARTS, RECREATIONAL AND TOURISM SM CITY BACOOR LAKESIDE EVOZONE ROBINSONS BIG R SUPERCENTER STA. ROSA COMMERCIAL IT PARK ROBINSONS PLACE STA. ROSA SAINT FRANCES CABRINI MEDICAL TOURISM PARK PHILTOWN TECHNOLOGY PARK ROBINSONS PLACE LIPA PAMALICAN ISLAND TOURISM ECOZONE CAMARINES SUR IT PARK BORACAY ECO-VILLAGE RESORT MACTAN ECONOMIC ZONE BIGFOOT IT PARK MACTAN ECONOMIC ZONE II SYNERGIS IT CENTER HDMF-WTCI IT TOWER CEBU IT TOWER MANGO SQUARE CEBU SOUTH ROAD PROPERTIES ARCENAS ESTATE IT BUILDING A. D. GOTHONG IT CENTER JY SQUARE IT CENTER JY SQUARE IT CENTER III CEBU LIGHT INDUSTRIAL PARK LEXMARK PLAZA OAKRIDGE INFORMATION TECHNOLOGY CENTER PHIL. BXT CORP. TOURISM ECONOMIC ZONE PIONEER HOUSE CEBU WEST CEBU INDUSTRIAL PARK NEW CEBU TOWNSHIP MRI ECONOMIC ZONE HVG ARCADE IT PARK INNOVE IT PLAZA ASIATOWN IT PARK FEDERATED IT PARK DAMOSA IT PARK ROBINSONS CYBERGATE CENTER PUEBLO DE ORO IT PARK JASAAN MIS. ORIENTAL ECOZONE BUKIDNON AGRO-RESOURCES EXPORT ZONE DBP IT PLAZA THE BLOCK IT PARK ONE SANPARQ LOPUE'S EAST I. T. CENTER LUXUR PLAZA ITFORMATION CENTRE SMCI IT CENTER CIIF AGRO-INDUSTRIAL PARK RIO TUBA EXPORT PROCESSING ZONE SARANGANI ECONOMIC DEVELOPMENT ZONE SRC ALLAH VALLEY ECONOMIC DEVELOPMENT ZONE SRC CALUMPANG ECONOMIC DEV’T. ZONE FIRST ORIENTAL BUSINESS & INDUSTRIAL PARK NCCC DAVAO IT CENTER LUISA AVENUE SQUARE IT CENTER NCCC DAVAO IT CENTER MANTICAO ECOZONE CORPORATION SEZ 64 Manufacturing 118 IT Parks (26) and IT Centers (92) 9 Tourism Ecozones 1 Medical Tourism Park 1 Medical Tourism Center 2 Agro-Industrial Centers ECONOMIC ZONE INVESTMENTS 160 140 120 100 80 60 40 20 0 144 % EPZA ‘86 -’93 1994 61 % .6% 16 % 12.7 B 9.6 B 60 % PEZA 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 89 52.5 B 65.3 B 159.7 B 96.9 B 155.7 B 156.7 B 80.8 B 38.7 B 31.7 B 50.5 B 67.2 B 83.7 B 133.7 B 154.8 B 90 91 92 93 94 25 % 33 % 24% 449% 57 % 95 96 97 98 99 00 01 02 03 04 05 06 07 08 1995 – 2008 Economic Zone Investments : P 1.327 Trillion 14-YEAR ECONOMIC ZONE INVESTMENTS 38 Times Bigger EPZA 1981 –1994 P 33.700 B PEZA 1995 - 2008 P 1.327 T COMPARATIVE NUMBER OF LOCATORS 1994 / 2008 2,000 1,956 1,600 1,200 800 400 331 0 1994 2008 491% Increase LOCATOR INVESTMENTS BY NATIONALITY ( 1995 – 2008 ) 20.28 % Filipino 18.65 % American 5.88 % Dutch 3.97 % Korean 3.74 % British 3.20 % Singaporean 33.81 % Japanese 2.38 % British Cayman Islands 2.24 % Germans 1.14 % British Virgin Islands 1.08 % Taiwanese 3.63 % Others LOCATOR INVESTMENTS BY PRODUCT SECTOR ( 1995 - 2008 ) 46.38 % Electronics and Semiconductors 7.66 % Information Technology Services 6.75 % Electrical Machinery and Apparatus 5.80 % Transport and Car Parts 2.41 % Chemical and Chemical Products 2.05 % Medical, Precision and Optical Instruments 1.56 % Rubber and Plastic Products 0.95 % Garments and Textiles 26.44 % Other Manufactures 1994 : US $ 2.739 ECOZONE EXPORTS 1995 : US $ 4.284 56.4 % 1996 : US $ 6.500 51.7 % 1997 : US $ 10.626 63.5 % 1998 : US $ 13.270 24.9 % 1999 : US $ 15.807 19.1 % 2000 : US $ 20.025 26.7 % 2001 : US $ 19.498 - 2.5% 2002 : US $ 22.775 16.8% 2003 : US $ 27.313 19.9% 2004 : US $ 30.924 13.2% 2005 : US $ 32.030 3.6% 2006 : US $ 36.077 12.6% 2007 : US $ 40.889 13.3% 2008 : US $ 40.543 - 0.84% In Billion US Dollars PHILIPPINE MANUFACTURED EXPORTS ( Billion U.S. Dollars ) Economic Zone Manufactured Exports 2.7 4.3 6.5 10.6 13.3 15.8 20.0 19.5 22.7 27.2 30.7 31.6 35.1 45 36.9 42.8 41.1 40 35.5 34.3 35 31.7 31.5 30 36.9 32.0 28.6 26.1 25 21.6 20 15 10 18.5 50% 15.8 12.2 22% 27% 35% 73% 65% 51% 49% 50% 58% 42% 49% 51% 78% 68% 72% 32% 28% 5 85% 86% 86% 85% 86% 15% 14% 14% 15% 14% 4.8 4.8 5.3 6.0 5.9 2005 2006 2007 0 9.5 11.5 12.0 11.0 12.8 15.9 14.3 9.1 8.8 Other Philippine Manufactured Exports 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 ECOZONE DIRECT EMPLOYMENT 1994 91,860 1995 121,823 1996 152,250 1997 183,709 1998 219,791 1999 247,076 2000 278,407 2001 289,548 2002 328,384 2003 362,851 2004 406,752 2005 451,279 2006 545,025 2007 593,108 2008 608,387 2.58 % PEZA grants incentives to: • Export, I.T., Medical Tourism, and AgroIndustrial 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 VERY COMPETITIVE INCENTIVES for LOCATORS • 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. 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 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 recognizes • Just-in-time deliveries • Reduction of cost are musts for exports to be competitive FAST TURNAROUND ESPECIALLY 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. PEZA IS A ONE-STOP SHOP • 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 “NON-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’s TOTAL COMMITMENT TO INVESTORS NO GRAFT & CORRUPTION PEZA’s TOTAL COMMITMENT TO INVESTORS • NO RED TAPE • ONLY RED CARPET TREATMENT OTHER PEZA ECOZONE PROGRAMS INFORMATION TECHNOLOGY PROGRAM TOURISM ECONOMIC ZONES MEDICAL TOURISM ECONOMIC ZONES RETIREMENT ECONOMIC ZONES AGRO-INDUSTRIAL ECONOMIC ZONES CREATING OPPORTUNITIES FOR FILIPINOS IN THE COUNTRYSIDE