Lifting of ban on new Metro Manila ecozones pushed

For it-BPM expansion

MANILA, Philippines — The Department of Trade and Industry (DTI) and Department of Finance (DOF) are pushing for the lifting of the moratorium on the processing and evaluation of applications for economic zones in Metro Manila imposed under the previous administration.

“We already approved the lifting of the AO (Administrative Order) 18,” Trade Secretary Cristina Roque told reporters.

She said the endorsement was given by both the DTI and DOF during a recent meeting.

AO 18, which was issued by former president Rodrigo Duterte in 2019, imposed a ban on applications for ecozones in Metro Manila to encourage development in the countryside.

Following the DTI and DOF’s endorsement, Philippine Economic Zone Authority (PEZA) director general Tereso Panga told reporters that the recommendation will be given to the Office of the President (OP).

He said that the recommendation requires the OP’s approval and the issuance of a new AO to supersede the previous one.

The PEZA has been pushing to lift the moratorium to have more facilities ready to host new and expanding information technology-business process management (IT-BPM) firms in the country.

By lifting the ban, Panga said IT-BPM firms would have more options in terms of where to set up or expand operations.

“This will expand their options because now, with the limited number of accredited or approved IT parks and centers, they don’t have choices but to make do with the existing ones that are already approved by PEZA,” he said.

Firms that locate in PEZA economic zones enjoy fiscal and non-fiscal incentives from the government.

Panga also said that the agency expects to receive many applications for PEZA status, once the moratorium is lifted.

He said a test case is Yuchengco Group’s application for its innovation hub in Makati City.

“So, once this is approved, this will now pave the way for the other applications to follow,” he said, adding that it expects applications from projects in Arca South in Taguig City and Bridgetown in Pasig City.