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 governments efforts to:

Promote Investment
Create Employment

Generate Export

16 EPZA- REGISTERED PUBLIC & PRIVATE ECONOMIC ZONES

( 1969 - 1994)
LUISITA INDUSTRIAL PARK SUBIC SHIP. ENGG. INC. BAGUIO EPZ BATAAN EPZ CAVITE EPZ VICTORIA WAVE CARMELRAY DEVT. CORP. GATEWAY BUSINESS PARK LIGHT IND. & SCIENCE PARK LAGUNA TECHNOPARK

MACTAN EPZ

LAGUNA INTL. INDL PARK

TABANGAO SPECIAL EPZ

FIRST CAVITE INDL. ESTATE LEYTE INDL. DEVT 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. LUKES 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 ANSONS 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 INDL. DEVELOPMENT ESTATE MEGACENTER IT BUILDING LEYTE INFORMATION COMMUNICATION TECH. PARK JOSE PANGANIBAN SEZ MISIBIS RESORTS AND ESTATES RAPU-RAPU ECOZONE CAVITE ECONOMIC ZONE LAGUNA INTL. 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 PEOPLES 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 DEVT. ZONE FIRST ORIENTAL BUSINESS & INDUSTRIAL PARK NCCC DAVAO IT CENTER LUISA AVENUE SQUARE IT CENTER NCCC DAVAO IT CENTER MANTICAO ECOZONE CORPORATION SEZ

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

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
86 -93 1994

EPZA
12.7 B 9.6 B

144 %

61 % .6%

16 %

60 %

PEZA
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 89 90 91 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 92 93 94

25 % 24% 449% 57 % 33 %

60
40 20 0

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

PEZA 1995 - 2008 P 1.327 T

38 Times Bigger
EPZA 1981 1994 P 33.700 B

COMPARATIVE NUMBER OF LOCATORS

1994 / 2008
2,000

1,956
1,600

491% Increase

1,200

800

400

331
0

1994

2008

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 1995 : US $ 4.284 1996 : US $ 6.500 1997 : US $ 10.626 1998 : US $ 13.270 1999 : US $ 15.807

ECOZONE EXPORTS
56.4 % 51.7 % 63.5 % 24.9 % 19.1 %

In Billion US Dollars

2000 : US $ 20.025
2001 : US $ 19.498 2002 : US $ 22.775 2003 : US $ 27.313

26.7 %
- 2.5% 16.8% 19.9% 13.2% 3.6% 12.6% 13.3%

2004 : US $ 30.924
2005 : US $ 32.030 2006 : US $ 36.077 2007 : US $ 40.889

2008 : US $ 40.543

- 0.84%

PHILIPPINE MANUFACTURED EXPORTS

2.7
45

( Billion U.S. Dollars )

20.0 19.5 22.7 27.2 30.7 31.6 35.1 41.1 36.9 42.8 36.9

Economic Zone Manufactured Exports 4.3 6.5 10.6 13.3 15.8

40 35 30

34.3 31.7 28.6 26.1 21.6 31.5 32.0

35.5

25

20
15 10 5 0

18.5 15.8 12.2

22% 78% 27% 73% 35% 65% 51% 49% 51% 50% 50% 58% 42% 68% 32% 72% 28% 85% 15% 86% 14%

49%

86%
14%

86%
14%

85% 15%

9.5

11.5

12.0

11.0

12.8

15.9

14.3

9.1

8.8

4.8

4.8

5.3

6.0

5.9

Other Philippine Manufactured Exports 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

ECOZONE DIRECT EMPLOYMENT

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 91,860 121,823 152,250 183,709 219,791 247,076 278,407 289,548 328,384

362,851 406,752
451,279 545,025 593,108 608,387
2.58 %

2004
2005 2006 2007 2008

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 Mayors 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. Amkor Technology Intel Technology Fujitsu Computer NXP Semiconductors Sunpower Philippines Electronics Electronics Electronics Electronics Electronics Solar Cells American American American Japanese Dutch Brit. Cayman

Toshiba Information
Epson Precision Tsuneishi Heavy Ind Integrated Micro Hitachi Global Storage Toyota Autoparts Coral Bay Nickel Corp.

Electronics
Electronics Shipbuilding Electronics Electronics Automotive Minerals

Japanese
Japanese Japanese British Dutch Japanese Japanese

TOP ECONOMIC ZONE INVESTORS

TDK Fujitsu Phils. Lufthansa Technik Samsung Electro-Mech Ibiden Philippines
Continental Temic Convergys

Electronics Air Transport Electronics Electronics

Electronics IT

Japanese German Korean Japanese

German American

Rohm Electronics
Terumo (Philippines) Lexmark Pilipinas Kao, Inc. JP Morgan Chase Bank Taiyo Yuden Panasonic Comm.

Electronics
Med. Instruments Electronics Coco products IT Electronics Electronics

Japanese
Japanese Swiss Japanese American Japanese Dutch

TOP ECONOMIC ZONE INVESTORS

Ford Motor Company Teletech Customer Care Cypress Manufacturing Mitsumi Philippines Automotive I.T. Electronics Electronics American American American Japanese

Hoya Glass Disk

Nidec Philippines Manticao Nickel Corp. Analog Devices Nidec Precision eTelecare Global Takata (Philippines) Samsung Electronics

Electronics
Electronics Mineral Electronics Electronics IT Automotive Electronics

Singaporean
Japanese Filipino Dutch Japanese Filipino Japanese 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.

PEZAs TOTAL COMMITMENT TO INVESTORS

NO GRAFT & CORRUPTION

PEZAs 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