Science and Technology Parks:
The Philippine Experience
2014 UNESCO-WTA INTERNATIONAL TRAINING WORKSHOP
Daejeon Metropolitan City, Korea November 11-13, 2014
Atty. Norma B. Cajulis Philippine Economic Zone Authority
INTRODUCTION TO THE PHILIPPINES:
Democratic republic in Southeast Asia
Archipelago of 7,107 islands
Capital city: Manila
Area: 300,000 sq. kilometers
Coastline of 36,289 kilometers
Population of 92 Million
Climate is tropical
Rich biodiversity/flora and fauna
Primary industries are agriculture,
fishery and aquaculture, mining,
manufacturing, services and
tourism
Religion is predominantly
Christian
GDP First Quarter 2014: 5.7%
2013 GDP: 7.2%
2014 GDP: 6.8%
Tropical climate: rainy season (June-November) and dry season
(December to May)
Spanish colony for 400 years
American colony for 50 years
Japanese occupation: 4 years during WWII
Coastline of 36,289 kilometers
Gained independence in 1946
Martial Law in 1972
1986 People Power ended Martial Law
Gross Domestic Product (GDP)
The Philippines increased its GDP by 5.7% in the first quarter of
2014.
Since 2010, the Philippines has enjoyed satisfactory performance
in terms of GDP, with an average growth rate of 6.3% from 2010 to
2013. This has rendered 0.7% more than its average target of 5.6%
for the same period.
Year GDP Target GDP for the year
2014 6.5 – 7.5 5.7 1st qtr
2013 6.0 – 7.0 7.2
2012 5.0 – 6.8 6.8
Philippine Economic Zone Authority
(PEZA)
PEZA is an investment promotion agency attached to the Department of Trade and Industry.
Government Agency Represented in this Workshop:
TOTAL PEZA DIRECT
EMPLOYMENT 1995 – April 2014
1,074,155 and counting
TOTAL OF 306 ECONOMIC ZONES * as of April 2014 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
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
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
67 Industrial and Export Processing Zones
40 IT Parks
161 IT Centers
18 Tourism Ecozones
2 Medical Tourism Parks
18 Agro-Industrial Parks
306 Economic Zones Nationwide
1995 – 2012 Economic Zone Investments : P 2.306 Trillion
449%
24%
144 % 61 % .6%
EPZA
PEZA
12.7 B 9.6 B
‘86 -’93 1994
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 175.4 B 204.4 B 288.3 B 311.9 B
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
ECONOMIC ZONE INVESTMENTS
89
320
280
240
200
160
120
80
40
0
57 %
33 %
25 %
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
60 %
07
16 %
08
13 %
09 10
16.6 %
11
41.1 %
12
8.19 %
LOCATOR INVESTMENTS BY NATIONALITY ( 1995 – 2013 )
22.22 % Filipino 16.44 % American
7.50 % British
10.03 % Dutch
3.13 % Singaporean
1.38 % German
4.12 % Others
3.51 % Korean
1.02 % Swiss
30.65 % Japanese
5.93 %
4.59 %
2.46 %
8.79 %
1.37 %
17.08 %
1.42 %
9.49 %
9.60 %
Tourism
Transport (Shipbuilding,
Car Parts, Equipment)
Electrical Machinery
and Apparatus
Medical, Precision and
Optical Instruments
Information Technology Services
Rubber and Plastic Products
Other Manufactures
Metals/Fabricated Metal Products
Medical Tourism
Chemical and Chemical Products 0.87 %
38.41 %
Electronics /
Semiconductors
LOCATOR INVESTMENTS BY PRODUCT SECTOR ( 1995 – 2013 )
TOTAL PHILIPPINE COMMODITY EXPORTS ( Billion U.S. Dollars )
40
60
30
50
20
10
0
2.7
10.7
20%
80%
13.5
1994
6.5
14.0
32%
68%
20.5
1996
10.6
14.6
42%
58%
25.2
1997
13.3
16.2
45%
55%
29.5
1998
15.8
19.2
45%
55%
35.0
1999
20.0
18.1
53%
47%
38.1
2000
19.5
12.7
61%
39%
32.2
2001
22.7
12.5
65%
35%
35.2
2002
27.2
9.0
75%
25%
36.2
2003
30.7
9.0
77%
23%
39.7
2004
31.6
9.6
77%
23%
41.3
2005
35.1
12.3
74%
26%
47.4
2006
39.0
11.5
77%
23%
50.5
2007
38.0
11.1
77%
23%
49.1
2008
4.3
13.2
1995
25%
75%
17.4
28.9
9.5
75%
25%
38.4
2009
15.4
70%
30%
51.5
2010
11.7
76%
24%
48.0
2011
36.1 36.3
Economic Zone Exports
Others
18.1
65%
35%
52.0
2012
33.9
18.6
53.9
2013
35.3
65%
35%
PEZA GRANTS INCENTIVES TO:
Export, I.T., Medical Tourism, and Agro-Industrial Enterprises
Logistics Enterprises Facilities/Utilities Enterprises Developers of economic zones which include Industrial
Estates, Export Processing Zones , I.T. & Science Parks and Buildings, Tourism Zones, Medical Tourism Parks and Buildings, Retirement Zones, and Agro-Industrial Zones
VERY COMPETITIVE 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;
Exemption from export taxes, wharfage dues, impost and fees;
Zero Value Added Tax (VAT) rate on local purchases to include telecoms, power, and water bills;
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.