On March 27, PEZA DG Lilia De Lima presented at the Euromoney Conference Workshop at the Manila Peninsula. In her presentation “Creating the Next Business Hub for Manufacturers,” DG De Lima reported that as of February 29, 2012, PEZA administers a total of 257 economic zones comprised of: Manufacturing (64 zones); IT Parks and Centers (164 zones); Tourism Ecozones (12 zones); Medical Tourism Park/ Center (2 zones); and Agro-Industrial Parks (15 zones).

2. „Creating The Next Business Hub For Manufacturers‟
A presentation for the:
Euromoney Conference Workshop
hosted by: RCBC
Presented by:
DR. LILIA B. DE LIMA
Director General
and
Undersecretary, Department of Trade & Industry
Manila Peninsula Hotel
Makati City
3:35 PM, March 27, 2012

3. Philippine Economic Zone Authority
An investment promotion and incentive granting
agency attached to the Department of Trade and
Industry.
Reinforce Government‟s efforts to:
• Promote Investments
• Create Employment
• Generate Exports

4. TOTAL OF 257 ECONOMIC ZONES *
BAGUIO CITY ECONOMIC ZONE
JOHN HAY SPECIAL TOURISM ECONOMIC ZONE
MARVIN PLAZA BUILDING
DPC PLACE BUILDING as of 29 February 2012 FOOD TERMINAL INC. SEZ
EMI SPECIAL ECOZONE
CAVITE ECONOMIC ZONE
LAGUNA INT‟L. INDUSTRIAL PARK
SANCTUARY IT BUILDING MSE CENTER BATAAN ECONOMIC ZONE LIGHT INDUSTRY & SCIENCE PARK I
SM BAGUIO CYBERZONE BUILDING TRAFALGAR PLAZA SUBIC SHIPYARD LIGHT INDUSTRY & SCIENCE PARK II
FORT ILOCANDIA TOURISM ECONOMIC ZONE OCTAGON IT BUILDING PLASTIC PROCESSING CENTER SEZ LIGHT INDUSTRY & SCIENCE PARK III
PANGASINAN INDUSTRIAL PARK II VITRO INTERNET DATA CENTER BUILDING HERMOSA ECOZONE TABANGAO SPECIAL ECONOMIC ZONE
LUISITA INDUSTRIAL PARK WYNSUM CORPORATE PLAZA IT BUILDING LEYTE IND‟L. DEVELOPMENT ESTATE LAGUNA TECHNOPARK
TECO SPECIAL ECONOMIC ZONE TRANSCOM CENTER MEGACENTER IT BUILDING LAGUNA TECHNOPARK ANNEX
TARLAC PROVINCIAL INFORMATION TECHNOLOGY PARK II ORIENT SQUARE IT BUILDING LEYTE INFORMATION COMMUNICATION TECH. PARK FIRST CAVITE INDUSTRIAL ESTATE
SM CITY PAMPANGA RIVERBANK CENTER ICT BLDG. I JOSE PANGANIBAN SEZ GATEWAY BUSINESS PARK
ROBINSONS LUISITA RIVERBANK CENTER ICT BLDG II MISIBIS RESORTS AND ESTATES KEPPEL PHILIPPINES MARINE SPECIAL ECONOMIC ZONE
CLARK TI SPECIAL ECONOMIC ZONE BLUE WAVE MARIKINA RAPU-RAPU ECOZONE GREENFIELD AUTOMOTIVE PARK
ANGELES INDUSTRIAL PARK UP SCIENCE & TECHNOLOGY PARK (South) YTMI REALTY SPECIAL ECONOMIC ZONE
PAMPANGA EXPORT PROCESSING ZONE UP SCIENCE & TECHNOLOGY PARK (North) LIMA TECHNOLOGY CENTER
STA. MARIA INDUSTRIAL PARK COCOCHEM AGRO INDUSTRIAL PARK
SUPIMA ECIRCLE PEOPLE‟S TECHNOLOGY COMPLEX
PHILIPPINE PACKING AGRICULTURAL EPZ SAN LAZARO TOURISM AND BUSINESS PARK
VICTORIA WAVE GOLDEN MILE BUSINESS PARK
ROBINSONS PLACE NOVALICHES FIRST PHILIPPINE INDUSTRIAL PARK
DILIMAN IT BUILDING TIGERLAND AGRO-INDUSTRIAL ECONOMIC ZONE
CONVERGYS IT BUILDING CARMELRAY INDUSTRIAL PARK
HTMT CYBER PARK CARMELRAY INDUSTRIAL PARK II
EDSA CENTRAL IT CENTER CALAMBA PREMIERE INTERNATIONAL PARK
SUN PLAZA TOYOTA STA. ROSA SEZ
EDSA CENTRAL IT CENTER 2 AG&P SPECIAL ECONOMIC ZONE
E-SQUARE INFORMATION TECHNOLOGY PARK DAIICHI INDUSTRIAL PARK
TOTAL CORPORATE CENTER I ALLEGIS IT PARK
MCKINLEY HILL CYBER PARK MANILA FILINVEST TECHNOLOGY PARK - CALAMBA
MARKET! MARKET! EASTBAY ARTS, RECREATIONAL AND TOURISM
ST. LUKE‟S MEDICAL CENTER GLOBAL CITY SM CITY BACOOR
MULTINATIONAL BANCORPORATION LAKESIDE EVOZONE
PEOPLESUPPORT CENTER IT BUILDING ROBINSONS BIG R SUPERCENTER
NORTHGATE CYBERZONE STA. ROSA COMMERCIAL IT PARK
METROPOLIS STAR ROBINSONS PLACE STA. ROSA
MACROASIA ECOZONE SAINT FRANCES CABRINI MEDICAL TOURISM PARK
ASAHI SPECIAL ECONOMIC ZONE PHILTOWN TECHNOLOGY PARK
EUGENIO LOPEZ JR. COMMUNICATION CENTER ROBINSONS PLACE LIPA
GLOBAL TRADE CENTER PAMALICAN ISLAND TOURISM ECOZONE
EASTWOOD CITY CYBERPARK CAMARINES SUR IT PARK
SMNE IT CENTER BORACAY ECO-VILLAGE RESORT
EXPORTBANK PLAZA BUILDING MACTAN ECONOMIC ZONE
THE ENTERPRISE CENTER BIGFOOT IT PARK
RCBC PLAZA MACTAN ECONOMIC ZONE II
BURGUNDY CORPORATE TOWER SYNERGIS IT CENTER HDMF-WTCI IT TOWER
LIBRAN HOUSE IT CENTER CEBU IT TOWER
MJ PLAZA MANGO SQUARE
MANILA HARBOUR CENTER CEBU SOUTH ROAD PROPERTIES
NEWPORT CITY CYBERTOURISM ZONE ARCENAS ESTATE IT BUILDING
SM ICITY CEBU A. D. GOTHONG IT CENTER
SM ICITY 2 JY SQUARE IT CENTER
SM CYBERZONE 1 JY SQUARE IT CENTER III
G.T. TOWER INTERNATIONAL CEBU LIGHT INDUSTRIAL PARK
THE PASEO CENTER IT BUILDING LEXMARK PLAZA
AMKOR TECHNOLOGY OAKRIDGE INFORMATION TECHNOLOGY CENTER
PACIFIC INFORMATION TECHNOLOGY CENTER PHIL. BXT CORP. TOURISM ECONOMIC ZONE
JGC PHILIPPINES BUILDING PIONEER HOUSE CEBU
SDC IT BUILDING WEST CEBU INDUSTRIAL PARK
ASIAN STAR BUILDING NEW CEBU TOWNSHIP
THE PARAGON CORPORATE CENTRE MRI ECONOMIC ZONE
ROBINSONS CYBERPARK HVG ARCADE IT PARK
ROBINSONS-EQUITABLE TOWER INNOVE IT PLAZA
PBCOM TOWER ASIATOWN IT PARK
ANSON‟S CENTER FEDERATED IT PARK
SUMMIT ONE OFFICE TOWER DAMOSA IT PARK
PHILAMLIFE I.T. BUILDING ROBINSONS CYBERGATE CENTER
6750 AYALA AVE. BLDG. PUEBLO DE ORO IT PARK
6780 AYALA JASAAN MIS. ORIENTAL ECOZONE
6788 AYALA AVE. BLDG. BUKIDNON AGRO-RESOURCES EXPORT ZONE
JG SUMMIT CENTER DBP IT PLAZA
DELA ROSA E-SERVICES BUILDING THE BLOCK IT PARK
SM MAKATI CYBERZONE BUILDING ONE SANPARQ
SM MAKATI CYBER ZONE 2 BUILDING LOPUE'S EAST I. T. CENTER
GLORIETTA 5 LUXUR PLAZA ITFORMATION CENTRE
UNIONBANK PLAZA
BPI BUENDIA CENTER
* Legend: SMCI IT CENTER
CIIF AGRO-INDUSTRIAL PARK
ALLEGRO IT CENTER
EAST CYBER GATE
Manufacturing Economic Zones 64 RIO TUBA EXPORT PROCESSING ZONE
SARANGANI ECONOMIC DEVELOPMENT ZONE
WORLDWIDE CORPORATE CENTER Information Technology Parks / Centers 164 SRC ALLAH VALLEY ECONOMIC DEVELOPMENT ZONE
GATEWAY OFFICE TOWER SRC CALUMPANG ECONOMIC DEV‟T. ZONE
CYBER PARK BUILDING ONE Tourism Economic Zones 12 FIRST ORIENTAL BUSINESS & INDUSTRIAL PARK
PACIFIC STAR BUILDING NCCC DAVAO IT CENTER
PHILAMLIFE IT TOWER Medical Tourism Park /Center 2 LUISA AVENUE SQUARE IT CENTER
NISCOM IT BUILDING NCCC DAVAO IT CENTER
INSULAR LIFE BUILDING Agro-Industrial 15 MANTICAO ECOZONE CORPORATION SEZ
INSULAR LIFE CORPORATE CENTER

5. 64 Manufacturing
164 IT Parks (35) and IT Centers (129)
12 Tourism Ecozones
2 Medical Tourism Park / Center
15 Agro-Industrial Parks

6. 300
ECONOMIC ZONE INVESTMENTS
41.1 %
270 EPZA
„86 -‟93 12.7 B
240 1994 9.6 B
PEZA 16.6 %
210
1995 52.5 B
1996 65.3 B
180 1997 159.7 B
1998 96.9 B 13 %
144 % 61 % .6% 16 %
1999 155.7 B
150 2000 156.7 B
2001 80.8 B 60 %
2002 38.7 B
120 2003 31.7 B
2004 50.5 B
2005 67.2 B
90 2006 83.7 B 25 %
2007 133.7 B 24% 33 %
2008 154.8 B
449%
60 2009 175.4 B 57 %
2010 204.4 B
2011 288.3 B
30
0
89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
1995 – 2011 Economic Zone Investments : P 1.995 Trillion

7. LOCATOR INVESTMENTS BY NATIONALITY
( 1995 – 2011 )
20.89 % Filipino
18.32 % American
33.58 % 7.80 % Dutch
Japanese 6.35 % British
3.86 % Korean
2.52 % Singaporean
1.50 % German
1.29 % Swiss
3.89 % Others

8. LOCATOR INVESTMENTS BY PRODUCT SECTOR
( 1995 – 2011 )
10.33 % Metals/Fabricated Metal Products
7.70 % Information Technology
Services
6.22 % Tourism
5.91 % Transport (Shipbuilding,
42.52 % Car Parts, Equipment)
5.08 % Electrical Machinery
Electronics / and Apparatus
Semiconductors 2.45 % Medical, Precision and
Optical Instruments
1.92 % Medical Tourism
1.32 % Rubber and Plastic Products
0.95 % Chemical and Chemical Products
15.60 % Other Manufactures

9. 1994 : US $ 2.739 ECOZONE EXPORTS
1995 : US $ 4.284 In Billion US Dollars 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%
2009 : US $ 32.898 -18.86%
2010 : US $ 40.473 23.02%
2011 : US $ 42.144 4.13%

10. 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 36.9 37.9 28.9
45 44.0
42.8
41.1
40
36.9
34.3 35.5
35
31.7 32.0 33.2
31.5
30 28.6
26.1
25
21.6
20 18.5
15.8 50%
15 58%
51% 50%
12.2 27% 35% 42%
49%
22% 49%
10 65% 68% 72%
73% 51%
78% 32% 28% 86% 86%
86% 86% 85%
85%
5 14% 14% 87%
14% 14% 15%
15% 13%
0
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 6.1 4.3
Other Philippine Manufactured Exports
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

11. 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
2009 611,058
2010 735,672
2011 840,945 14.31%

12. WHY INVEST IN
THE PHILIPPINES

13. BUSINESS-FRIENDLY POLICIES
• 100% Foreign Ownership of Companies;
• Basic rights of Investors are guaranteed (right to remit
profits and pay foreign obligations, right to repatriate
investments)

14. FILIPINO WORKERS
Among the Best in the World
THE COUNTRY‟S COMPETITIVE EDGE
Literate, English – speaking, easy to train,
hardworking , very friendly, and always smiling

15. VERY FAST LEARNING CURVE
OF FILIPINO WORKERS
• 8 weeks (2 months) to train Filipino
workers
• Compared to 16 to 24 weeks (4 to 6
months) to train workers in other
countries.

16. STRATEGIC LOCATION
Russia
Canada
United Germany
Kingdom EUROPE
France
United States
Korea of America
China Japan
Middle Taiwan
East Atlantic Ocean
Hong Kong Philippines
Africa India
Thailand
Malaysia
Singapore Pacific Ocean South
Indonesia America
Australia

17. VERY HOSPITABLE and COMFORTABLE
SECOND HOME to EXPATRIATES
• Very friendly attitude of Filipinos towards foreigners
• Availability of quality primary and secondary education
Presence of International Schools
• Housing closest to meeting western standards at very
reasonable rental rates
• Best sporting and recreational facilities
Many world-class golf courses.
• World class health care services
(Result of a survey conducted on expatriates in Asia)

18. WHY INVEST IN
PEZA ECONOMIC ZONES
A. FISCAL INCENTIVES
B. NON-FISCAL INCENTIVES

19. FISCAL INCENTIVES for EXPORT COMPANIES
• 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;
• Zero Value-Added Tax (VAT) Rate on local purchases to include
telecommunications, power, and water bills;
• Exemption from payment of local government taxes and fees.

20. NON-FISCAL INCENTIVES for EXPORT COMPANIES
• Employment of foreign nationals;
• Special visa for foreign investors and immediate family members.

21. 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.

22. PEZA IS A
ONE-STOP SHOP
• Building and Occupancy Permits are issued by PEZA.
• Import and Export Permits are issued by PEZA.
• Automated and web-based Import & Export Procedures and e-
Payment System (Paperless Transactions).
• Special multiple-entry non-immigrant visa processed in PEZA.
• Environment Clearance processed thru PEZA.
• Registration requirements simplified, registration forms
downloadable from website and uncomplicated, approval made
easy.

23. 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.

24. In PEZA,
• NO RED TAPE
• ONLY RED CARPET TREATMENT

25. In PEZA, there is
NO GRAFT
NO CORRUPTION

26. SUPPORT SERVICES
TO
MANUFACTURING
AND
AGRO-INDUSTRIAL SECTORS

27. INCENTIVE FOR LOGISTICS ENTERPRISES
Tax and duty free importation of raw materials.
INCENTIVE FOR FACILITIES ENTERPRISES
(They provide build-to-suit or lease buildings.)
Special 5% Gross Income Tax,
in lieu of all national and local taxes.

28. • Accredited Brokers, Truckers and Forwarders
To ensure companies deal only with legitimate entities and so that PEZA can also
monitor performance of these service providers
• Encouraged Developers to have developed areas
available for manufacturing
• Assisted in reduction of power. Now we are
assisting companies to prepare for open access.
• Strategic Location of Batangas Port
- strongly pushing for Batangas Port as primary port for
CALABARZON locators
- reduced PEZA fees by 50% for shipment using the Batangas Port
- assigned Staff to process shipments in the Batangas Port

29. ISO 9001:2008
PEZA‟s Quality
Management System is
certified ISO 9001:2008.
PEZA is certified ISO
9001:2008 for all its
processes, at all levels, in
all sites, nationwide.

30. ONLY PEZA CITED FOR BEST PRACTICE
AMONG ECONOMIC ZONES WORLDWIDE
“Under PEZA, the Philippines has shown dramatic
improvements in Investment Climate.
End Result – PEZA is a shining example of
successful regulatory reform improving overall
investment climate in the country”
Study of Gohan Akinci, Foreign Investment Advisory
Services (FIAS), International Finance Corporation of the
World Bank (IFC-WB)

31. We now have a
Reformist
Government that
is open for
business.
President Aquino‟s
Policy Thrusts:
1. Good Governance
2. Level Playing Field
3. Transparency
4. No Corruption

32. CREATING
JOBS, LIVELIHOOD,
INCOME FOR
FILIPINOS
IN THE
COUNTRYSIDE

33. Philippines‟ Competitive Advantage on
Business Environment in Comparison to
other Asian Countries
January 2012
Japan External Trade Organization (JETRO) Manila

34. 1. Moderate Cost

35. 1.1 Problems of increasing financial costs
(%)
0 10 20 30 40 50 60 70
China 64.1
Malaysia 61.5
Thailand 56.7
India 54.6
Vietnam 53.6
Indonesia 51.9
Philippines 46.7
Source: JETRO, 2011 Survey of Japanese-Affiliated Firms in Asia and Oceania (Aug-Sept, 2011)
* All the succeeding data has the same source.

36. 1.2 Problems in shortage of land/offices,
rising land prices/rental
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0
(%)
India 32.0
Vietnam 18.0
Indonesia 17.2
Thailand 12.7
Malaysia 9.8
Philippines 5.8

37. 1.3 Problems in skyrocketing payroll costs
(%)
0 10 20 30 40 50 60 70
Vietnam 61.3
Thailand 48.1
India 45.2
Indonesia 40.8
Malaysia 27.5
Philippines 18.2

38. 2. Sufficient Labor Supply

39. 2.1 Difficulty in recruiting general staff
(%)
0 5 10 15 20 25 30 35 40
Vietnam 36.7
Malaysia 31.2
Thailand 31.1
China 28.6
Indonesia 4.4
India 4.2
Philippines 3.2

40. 2.2 Difficulty in recruiting executives (%)
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0
Myanmar 64.3
Vietnam 52.8
India 46.9
Indonesia 43.0
China 41.9
Thailand 40.0
Philippines 39.0
Malaysia 37.9

41. 2.3 Low rate of worker‟s employment
retention (%)
0.0 10.0 20.0 30.0 40.0 50.0 60.0
Vietnam 48.7
Malaysia 42.5
India 41.6
China 39.0
Thailand 33.6
Philippines 30.6

42. 2.4 Problems of worker‟s competency
(%)
0 10 20 30 40 50 60
Myanmar 56.3
Vietnam 48.7
China 47.6
India 45.8
Malaysia 44.7
Indonesia 42.2
Thailand 40.9
Philippines 37.9

43. 2.5 Difficulty in Quality Control
(Manufacturing only) (%)
0 5 10 15 20 25 30 35 40 45 50
India 45.5
China 43.4
Malaysia 41.0
Thailand 40.7
Vietnam 39.3
Indonesia 28.7
Philippines 26.7

44. 3. Reasonable Salary

45. 3.2 Annual Salary *
Manufacturing Staff (US $)
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Malaysia (n=170) 6,340
China (n=474) 5,765
Thailand (n=470) 5,662
India (n=70) 4,495
Philippines (n=66) 4,048
Indonesia (n=78) 3,980
Vietnam (n=89) 2,196
* including bonuses, allowances, SSS, etc

46. 3.3 Annual Salary
Manufacturing Engineer
(US $)
- 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
Malaysia (n=165) 16,092
Thailand (n=449) 11,464
India (n= 71) 10,559
China (n=424) 9,937
Indonesia (n=68) 7,093
Philippines (n=59) 6,494
Vietnam (n=86) 4,793

47. 3.4 Annual Salary
Manufacturing Managers (US $)
- 5,000 10,00015,00020,00025,00030,00035,000
Malaysia (n=168) 30,999
Thailand (n=445) 26,580
India (n= 78) 24,596
China (n=436) 17,830
Philippines (n=63) 17,593
Indonesia (n=77) 16,544
Vietnam (n=80) 11,526

48. 3.5 Annual Salary
Non-Manufacturing Staff
(US $)
- 5,000 10,000 15,000 20,000
Malaysia (n=78) 14,554
China (n=226) 12,344
Thailand (n=262) 10,379
India (n=95) 10,088
Philippines (n=40) 7,324
Indonesia (n=39) 6,852
Vietnam (n=27) 5,199

49. 3.6 Annual Salary
Non-Manufacturing Manager
(US $)
- 5,000 10,00015,00020,00025,00030,00035,00040,000
Malaysia (n=76) 35,117
China (n=205) 27,610
Thailand (n=239) 25,842
India (n=88) 25,179
Indonesia (n=40) 23,068
Philippines (n=37) 19,187
Vietnam (n=24) 14,977