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.