WALLACE BUSINESS FORUM ROUND TABLE Peninsula Hotel, BGC, Makati City - - PDF document

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Rebooting The Philippine Economic Zone Authority Towards Building Green Industrial and Smart Cities

Peninsula Hotel, BGC, Makati City 7:00 AM, 26 October 2017 Peninsula Hotel, BGC, Makati City 7:00 AM, 26 October 2017

A Presentation for the:

WALLACE BUSINESS FORUM ROUND TABLE

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• Attached to the Department of Trade and Industry
• Promotes Investments
• Creates Employment
• Generates Exports
• Develops the Countryside
• Brings about the Transfer of Technology
• Utilizes and Makes Idle Lands Productive

Philippine Economic Zone Authority (PEZA)

74 Industrial and Export Processing Zones 254 IT Parks and Centers 20 Tourism Ecozones 2 Medical Tourism Parks 22 Agro-Industrial Parks

As of July 2017

376 Operating Economic Zones Nationwide

74 74

258

20 2 22

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As of July 2017

1995 – 2016

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94.12 % Growth

2016 2017 40

196.457

80 120 160 200 240

COMPARATIVE INVESTMENTS JAN - SEPT 2016 / 2017

101.202

In Php Million

INDUSTRY SECTOR JAN TO SEPT 2016 JAN TO SEPT 2017 % INCREASE/ DECREASE Manufacturing 22,407.139 45,087.233 + 101.22% Information Technology 14,576.323 11,386.751

• 21.88%

Ecozone Development 61,677.516 123,718.194 + 100.59% Others 2,541.685 16,265.700 + 539.95% TOTAL 101,202.663 196,457.878 + 94.12%

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1995 – 2016

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As of Aug 2017

Total Direct and Indirect Employment: (x 5 of total direct employment)

6,820,958

22.19 % Filipino 15.45 % American 7.41 % British 12.67 % Dutch 3.50 % Singaporean 1.60 % German 3.74 % Others 3.72 % Korean 0.85 % Swiss 0.85 % Taiwanese

28.02 % Japanese

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Metals/Fabricated Metal Products Transport (Shipbuilding, Aerospace, Car Parts, Equipment) Electrical Machinery and Apparatus Medical, Precision and Optical Instruments Tourism Rubber and Plastic Products Other Manufactures 5.84 % 4.71 % 2.15 % 7.96 % 1.68 % 19.51 % Information Technology Services Medical Tourism 1.21 % 8.81 % 10.97 %

37.17 % Electronics / Semiconductors

PE ZA’S GOAL AND MAJOR PROGRAMS

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Industrialize the Philippines by building Green Economic Zones towards Industrial and SMART Cities

1. Build economic zones in every province and city

• Creation of the Philippines Ecozones Map
• Two (2) Public Economic Zones per Region
• PEZA Investment Center in the regions in

addition to the Main Investment Center in Pasay

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TYPE S OF E CONOMIC ZONE S

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• 1. Completing the supply chain
• Inviting Complementary Industries
• Inviting Manufacturers of Industrial Machineries
• Inviting Basic Industries
• Steel Industry, Processed Mineral, Bio-Fuel
• Inviting Basic Crops Industries

Addressing the Gaps to Improve Competencies, Hasten Industrialization and Minimize Import- Dependence

• Rice
• Sugar
• Abaca
• Coconut
• Coffee
• Cacao
• Rubber
• Vegetable

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• 2. Stability and low cost of Supply of Utilities
• Power
• Water
• Telecommunication Services

3. Build more International Logistics Hubs and Centers in every region

• Seaports
• Airports
• Transportation Facilities
• Warehouses and Cold Storage

4. Enhance and transform the Filipino workforce into a World-Class Labor Force

• PEZA Institute Trains manpower needs of

industries

• MOA with CHED, TESDA
• Accreditation of Professional Services, Training

Centers, Manpower Agencies and to ensure delivery of quality services and labor force 5. Additional Incentives and Stability of Policies and Laws; Exemption of Ecozones and Industries to the VAT Zero Rate under the Tax Reform Bill

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Rights of Filipino Workers

Protection of the Environment

WHY PE ZA

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• 1. Income Tax Holiday (ITH)
• 6 to 8 years for pioneer project
• 4 to 6 years for non-pioneer

project

• 2. After the ITH - Special 5% tax on gross

income less allowable deductions in lieu of all national and local taxes

Incentives

• 3. Tax and duty free importation of capital

equipment, spare parts, supplies and raw materials

• 4. Domestic sales allowance of up to 30% of

total sales

Incentives

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• 5. Zero Value Added Tax (VAT) Rate on all local

purchases directly related to its registered activity to include telecommunications, power and water bills

• 6. Exemption from payment of local government

taxes and fees

Incentives

• 7. Employment of foreign nationals
• 8. Special visa for foreign investors

and immediate family members

• 9. Long-term land lease of up to 75 years
• 10. Unequalled service by PEZA

Incentives

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THE PE ZA BRAND OF SE RVICE FOR E ASE OF DOING BUSINE SS

• Building and Occupancy Permits
• Import and Export Permits
• Online Import and Export

Procedures and E-Payment System

• 1. PEZA is a One-Stop Shop

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• Special multiple-entry non-immigrant Visa
• Environment Clearance Certificate (MOA with DENR)
• Exemption from Local Government Permits and Fees
• Simplified registration process – electronic application

available from website; forms downloadable

• Provides 24 hours a day, 7 days a week of

continuous service

• The Director General and other top officials are on

call 24 hours a day, 7 days a week

• 2. PEZA is a Non-Stop Shop

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NO RED TAPE

• 3. In PEZA, there is

ONLY RED CARPET TREATMENT

• 3. In PEZA, there is

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NO GRAFT NO CORRUPTION

• 3. In PEZA, there is

For all processes, at all levels, in all offices, nationwide.

PEZA is ISO 9001:2008 Certified

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“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.”

IFC – World Bank cited only PEZA for Best Practice among Economic Zones worldwide

TI Philippines Electronics American/Dutch Taganito HPAL Nickel Basic Metals Japanese Toshiba Information Electronics Japanese Tiger Resort Tourism American/Japan Sunpower Philippines Solar Cells American/Cayman Travellers International Tourism Filipino Sureste Properties Tourism Filipino Ibiden Philippines Electronics Japanese Amkor Technology Electronics Singapore/American Coral Bay Nickel Basic Metals Japanese

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NXP Semiconductors Electronics Dutch Canon Business Electronics Japanese MCE Leisure Tourism British Virgin Epson Precision Electronics Japanese HGST Philippines Electronics Dutch/Japanese PASAR Basic Metals Filipino Rohm Electronics Electronics Singapore/Japan JT International Tobacco Dutch Toyota Autoparts Automotive Japanese Samsung Electronics Korean Toyota Autoparts Automotive Japanese

• St. Luke's

Medical Tourism Filipino Tsuneishi Shipbuilding Japanese Integrated MicroElectronics Electronics British STMicroelectronics, Inc. Electronics Swiss Panasonic Precision Electronics Dutch/Japanese Lufthansa Technik Air Transport German American Power Electrical Machinery Dutch/American Continental Temic Electronics German TDK Philippines Electronics Japanese

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Accenture, Inc. Info Technology Dutch Taiyo Yuden Electronics Japanese Pilipinas Kao Chemical Products Japanese Terumo Philippines Medical Instruments Japanese Nidec Philippines Electronics Japanese AG & P Fabricated Metals Filipino Teletech Info Technology American On Semiconductor Electronics American Analog Devices Electronics Dutch Green Future Agro-Industrial Japanese Brother Industries Electronics Japanese Xerox Business Info Technology Dutch JPMorgan Info Technology American Schweitzer-Mauduit Agro-Industrial American Convergys Philippines Info Technology Dutch/American House Technology Rubber/Plastic Singapore/Japan Funai Electric Electronics Japanese First Sumiden Electronics Japanese Smart Electronics Electronics Korean MJC Investments Tourism Filipino

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Ionics EMS Electronics Filipino PV Tech Electrical Machinery Singaporean Cypress Manufacturing Electronics American Concentrix Daksh Info Technology Dutch Moog Controls Air Transport American Cavite Biofuel Agro-Industrial Filipino First Philec Electronics Filipino Telephilippines Info Technology Dutch Nidec Precision Electrical Machinery Japanese Tong Hsing Electronics Taiwanese

11 Italian Companies in PEZA Economic Zones

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Number of PE ZA-Registered E nterprises with Italian E quity by Sector

INDUSTRY SECTOR

• NO. OF ENTERPRISES

MANUFACTURING 6

Electronics / Semiconductor 1 Electrical Machinery and Apparatus, N.E.C. Medical, Precision and Optical Instruments, Watches and Clocks Radio, Television and Communication Equipment and Apparatus 1 Office, Accounting and Computing Machinery Garments and Textiles 1 Wood, Wood Products & Cork 1 Chemicals and Chemical Products Rubber and Plastic Products Other Non-Metallic Products 1 Fabricated Metal Products 1 Machinery and Equipment, N.E.C. 1 Paper and Paper Products Manufacturing, N.E.C. Food Products and Beverages

INFORMATION TECHNOLOGY SERVICES 2

Call Centers Software Development 1 Data Encoding, Transcribing and Related Services Business Process Outsourcing 1 Engineering, Architectural and Other Design Services Multi-media Graphics, Animation, Printing and Others Other IT-enabled Services REAL ESTATE AND FACILITIES RENTAL ACTIVITIES 3 TRANSPORT, STORAGE AND COMMUNICATIONS OTHER BUSINESS ACTIVITIES

T O T A L 11

MACHINE RY AND E QUIPME NT MACHINE RY AND E QUIPME NT ROCKBLOCK AUSTRALIA, INC. F A F ABRICATE D M ME TAL P PRODUCTS MACCAFERRI PHILIPPINES MANUFACTURING, INC. E LE CTRONICS AND E LE CTRONICS AND SE MICONDUCTORS SE MICONDUCTORS TECHNOPROBE ASIA PTE. LTD. ("PHILIPPINE BRANCH") WOOD AND WOOD AND WOOD PRODUCTS WOOD PRODUCTS CEBU FIL-VENEER, INC.

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BUSINE SS PROCE SS OUTSOURCING BUSINE SS PROCE SS OUTSOURCING SAILING PARTNER CONSULTING PHILIPPINES CORP SOFT SOFTWARE DE VE L RE DE VE LOPME NT PME NT GLUON, INC. WE ARING APP WE ARING APPARE L RE L ADRISTE (PHILIPPINES), INC. OTHE R NON-ME OTHE R NON-ME TALL LLIC MINE RAL PRODUCTS IC MINE RAL PRODUCTS GLUON, INC. HOTE L HOTE LS AND RE ST AND RE STAURANTS AURANTS ALMONAVIDES HOLDINGS, INC. RE AL E ST RE AL E STATE ACTIVITIE S TE ACTIVITIE S ITALINVEST DEVELOPMENT CORPORATION ITALPINAS, EUROASIAN DESIGN AND DEVELOPMENT CORPORATION

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AWAITING AWAITING YOUR YOUR INVE STME NTS ! INVE STME NTS !