peza presentation
TRANSCRIPT
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PHILIPPINEILIPPINEECONOMICONOMICZONENE
AUTHORITYTHORITY
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Lilia B de LimaUndersecretary and Director GeneralPhilippine Economic Zone Authority
AmCham Hall, 2F, Corinthian Plaza Bldg.,Paseo de Roxas, Makati City
12:00 PM, 31 July 2008
AmCham Hall, 2F, Corinthian Plaza Bldg.,Paseo de Roxas, Makati City12:00 PM, 31 July 2008
A presentation for
UPDATE ON PEZA ACTIVITIES AND PROGRAMS
The American Chamber of Commerceof the Philippines, Inc.
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PHILIPPINE ECONOMIC ZONE AUTHORITY
An investment promotion agency attached to theDepartment of Trade and Industry .
It took over the functions of the former ExportProcessing Zone Authority (EPZA) in 1995.
It supervises economic zones that are proclaimedunder its mandate nationwide.
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The Special Economic Zone Act of 1995
Reinforce governments efforts on:
Investment PromotionEmployment Creation
Export Generation
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BAGUIO EPZBAGUIO EPZ
BATAAN EPZBATAAN EPZ
MACTAN EPZMACTAN EPZ
CAVITE EPZCAVITE EPZ
Total Area : 3,183 hectaresTotal Area : 3,183 hectares
LUISITA INDUSTRIAL PARK
CARMELRAY DEVT. CORP.
SUBIC SHIP. ENGG. INC.
VICTORIA WAVE
GATEWAY BUSINESS PARK
LIGHT IND. & SCIENCE PARK
LAGUNA TECHNOPARK
LAGUNA INTL. INDL PARK
TABANGAO SPECIAL EPZ
FIRST CAVITE INDL. ESTATE
LEYTE INDL. DEVT ESTATE
MACTAN ECOZONE II
16 EPZA- REGISTEREDPUBLIC & PRIVATE ECONOMIC ZONES
( 1969 - 1994)
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MAJOR POLICY THRUST PEZA ceased developing
economic zones
Encouraged private sector todevelop economic zones
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61 Manufacturing or IndustrialEstates
99 IT Parks (26) and IT Centers (73)
5 Tourism Ecozones
1 Medical Tourism Park
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1995 2007 Economic Zone Investments : P 1.173 Trillion
449%24%
144 % 61 %.6%EPZA
PEZA
12.7 B9.6 B
86 -931994
52.5 B65.3 B159.7 B
96.9 B155.7 B156.7 B
80.8 B38.7 B31.7 B50.5 B67.2 B
83.7 B133.7 B
19951996199719981999200020012002200320042005
20062007
89
ECONOMIC ZONE INVESTMENTS
160140
120
100
80
60
40
20
0
57 %
33 %
25 %
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
60 %
07
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13-YEAR ECONOMIC ZONE INVESTMENTS
PEZA1995 - 2007
P 1.173 T
EPZA1982 1994P 33.068 B
EPZA1982 1994P 33.068 B
35TimesBigger
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LOCATOR INVESTMENTS BY NATIONALITY ( 1995 2007 )
36.82 %Japanese
18.82 % American
17.49 % Filipino
4.03 % British
6.45 % Dutch
3.58 % Singaporean2.97 % Korean2.20 % British Cayman Islands
1.16 % Taiwanese
1.06 % Others
2.03 % Germans
1.00 % British Virgin Islands
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LOCATOR INVESTMENTS BY PRODUCT SECTOR ( 1995 - 2007 )
Electrical Machineryand Apparatus
Transport and Car Parts
Information TechnologyServices
Chemical and ChemicalProductsMedical, Precision andOptical Instruments
Rubber andPlastic ProductsGarments and Textiles
Other Manufactures
50.94 %Electronics andSemiconductors
7.55 %
6.52 %
7.18 %
2.75 %2.30 %
1.74 %
1.10 %
19.92 %
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In Billion US Dollars
1995 : US $ 4.284
1996 : US $ 6.500
1997 : US $ 10.626
1998 : US $ 13.270
1999 : US $ 15.807
2000 : US $ 20.025
2001 : US $ 19.498
2002 : US $ 22.775
2003 : US $ 27.313
2004 : US $ 30.924
2005 : US $ 32.030
2006 : US $ 36.077
1994 : US $ 2.739
2007 : US $ 40.889
56.4 %
51.7 %
63.5 %
24.9 %
19.1 %
26.7 %
- 2.5%
16.8%
19.9%
13.2%
3.6%
12.6%
13.3%
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PHILIPPINE MANUFACTURED EXPORTS ( Billion U.S. Dollars )
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
2.7
9.5
4.3
11.5
6.5
12.0
10.6
11.0
13.3
12.8
15.8
15.9
20.0
14.3
19.5
9.1
22.7
8.8
27.2
4.8
30.7
4.8
Economic Zone Manufactured Exports
Other Philippine Manufactured Exports
40
35
30
25
20
15
10
5
0
22%
78%
27%
73%
35%
65%49%
51%
51%
49%
50%
50%58%
42%68%
32%72%
28%85%15%
86%14%
12.215.8
18.5
21.6
26.1
31.734.3
28.631.5
32.0
35.5
2005
31.6
5.3
86%14%
36.9
2006
35.1
6.0
85%
15%
41.1
2007
36.9
5.9
86%
14%
42.845
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1995
1997
1996
1998
1999
2000
2001
2002
2003
2004
2005
2006
121,823152,250
183,709
219,791
247,076
91,860
278,407
289,548
328,384
362,851
406,752
451,279
545,025
1994
2007 593,108
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TOP ECONOMIC ZONE INVESTORS
TI (Philippines), Inc. Electronics American Amkor Technology Electronics American
Intel Technology Electronics American
Fujitsu Computer Electronics JapaneseNXP Semiconductors Electronics Dutch
Sunpower Philippines Solar Cells Brit. Cayman
Toshiba Information Electronics Japanese
Epson Precision Electronics Japanese
Integrated Micro Electronics British
Hitachi Global Storage Electronics Dutch
Toyota Autoparts Automotive Japanese
Coral Bay Nickel Corp. Minerals Japanese
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TOP ECONOMIC ZONE INVESTORS
TDK Fujitsu Phils. Electronics JapaneseLufthansa Technik Air Transport German
Samsung Electro-Mech Electronics Korean
Ibiden Philippines Electronics JapaneseRohm Electronics Electronics Japanese
Terumo (Philippines) Med. Instruments Japanese
Pilipinas Kao, Inc. Coco products Japanese
JP Morgan Chase Bank IT American
Taiyo Yuden Electronics Japanese
Cypress Mfg. Ltd. Electronics American
Continental Temic Electronics German
Panasonic Comm. Electronics Dutch
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TOP ECONOMIC ZONE INVESTORS
Ford Motor Company Automotive AmericanTeletech Customer Care I.T. American
Mitsumi Philippines Electronics Japanese
Hoya Glass Disk Electronics SingaporeanNidec Philippines Electronics Japanese
Convergys I.T. American
Manticao Nickel Corp. Mineral Filipino Analog Devices Electronics Dutch
Nidec Precision Electronics Japanese
Honda Parts Mfg. Automotive Japanese
eTelecare Global IT Filipino
Takata (Philippines) Automotive Japanese
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AMERICAN ENTERPRISES IN PEZA ECONOMIC ZONES
25Electronics and Semiconductors
INDUSTRY NUMBER
Information TechnologyTransport and Car PartsChemical & Chemical Products
Fabricated MetalsRubber & Plastic Products
GarmentsOthers
TOTAL
56
118
10051
161
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TOP 30 AMERICAN COMPANIES IN PEZA11. PeopleSupport (Phil.), Inc.
12. Visteon Phil., Inc.13. American Power Conversion Corp.14. Moog Controls Corp. (Phil. Branch)
15. Dell International Services Phil., Inc.16. APAC Customer Services, Inc. Phil. Branch17. INFONXX Philippines, Inc.
18. Ford Phil. Component Manufacturing Co.19. Accenture, Inc.20. ACP Test Company, Inc.
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TOP 30 AMERICAN COMPANIES IN PEZA21. West Contact Services, Inc.
22. SC Reservationss (Phil.), Inc.23. Draka Philippines, Inc.24. Sitel Philippines Corp.
25. Ford Philippines Machining Company26. RMH Teleservices Asia Pacific, Inc.27. EXLSERVICE Philippines, Inc.
28. Epixtar Phil IT-Enabled Services Corp.29. Genpact Services LLC30. Sitel Customer Care Philippines, Inc.
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OTHERPEZA ECOZONEPROGRAMS
TOURISM ECOZONE
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TOURISM ECOZONE
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TOURISM ECONOMIC ZONE
LOCATION AREA / FACILITIES
REQUIREMENTINCENTIVES FOR
DEVELOPERS
PRIORITY AREAS
IDENTIFIED BYDOT
5 Hectares
Integrated resort complex offeringaccommodation, sports andrecreation centers, convention and
cultural facil ities, theme parks, andother special interest with foreigntourists as primary clientele.
Must conform with development
guidelines of the Department ofTourism
5% tax on gross income(only for newdevelopment)
TOURISM ECONOMIC ZONE
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REGISTRABLE ACTIVITIES
Enterprises establishing andoperating the following:
Accommodation Sports and recreation centers Convention and cultural facilities Theme Parks Other special interest or
attraction activities with foreigntourists as primary clientele
INCENTIVES
1. 4 years Income Tax Holiday (ITH)2. Special 5% tax on gross income in lieu of
all national and local taxes after the ITH3. Tax and duty free importation of capital
equipment required for the technicalviability and operation of the registeredactivity
4. Exemption from payment of localgovernment fees such as Mayors Permit,Business Permit, Permit on the Exercise ofProfession/Occupation/Calling, HealthCertificate Fee, Sanitary Inspection Fee,and Garbage Fee;
5. Zero Value Added Tax (VAT) Rate on localpurchases to include telecommunications,power, and water bills;
6. Special Investors visa7. Employment of foreign nationals8. Simplified import procedures
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MEDICAL TOURISMSPECIAL ECONOMIC ZONE
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MEDICAL TOURISM PARK
LOCATION AREA / FACILITIESREQUIREMENTINCENTIVES FOR
DEVELOPERS
METRO MANILA AND CEBU CITY
OTHER PARTSOF THE
COUNTRY
1 Hectare
1. Adequate telecom facilities2. Clean, uninterruptible power
supply3. Security and building monitoring
system
1 Hectare
1. Adequate telecom facilities
2. Clean, uninterruptible powersupply
3. Security and building monitoringsystem
None
5% tax on gross income(only for newdevelopment)
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MEDICAL TOURISM CENTER (Hospital or Stand Alone Bldg)
LOCATION AREA / FACILITIESREQUIREMENTINCENTIVES FOR
DEVELOPERS
METRO MANILA AND CEBU CITY
OTHER PARTS
OF THECOUNTRY
5,000 square meters1. Adequate telecom facilities2. Clean, uninterruptible power
supply
3. Security and building monitoringsystem
2,000 square meters
1. Adequate telecom facilities2. Clean, uninterruptible power
supply3. Security and building monitoring
system
None
5% tax on gross income(only for newdevelopment)
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RETIREMENT SPECIALECONOMIC ZONE
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RETIREMENT ECOZONE PARK
LOCATION AREA / FACILITIESREQUIREMENT
INCENTIVES FOR
DEVELOPERS
Anywhere in thecountry
4 Hectares
1. Reliable power and water supplyand distribution system
2. Sewerage and drainage system3. Adequate telecom facilities
5% tax on gross income(only for newdevelopment)
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RETIREMENT ECOZONE CENTER
LOCATION AREA / FACILITIESREQUIREMENTINCENTIVES FOR
DEVELOPERS
METRO MANILA AND CEBU CITY
OTHER PARTS
OF THECOUNTRY
5,000 square meters1. Reliable power and water supply
and distribution system2. Sewerage and drainage system
3. Adequate telecom facilities
2,000 square meters
1. Reliable power and water supplyand distribution system2. Sewerage and drainage system3. Adequate telecom facilities
5% tax on gross income(only for newdevelopment)
5% tax on gross income(only for newdevelopment)
AGRO-INDUSTRIAL
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ECOZONE
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AGRO-INDUSTRIAL ECONOMIC ZONE
LOCATION AREA / FACILITIES
REQUIREMENTINCENTIVES FOR
DEVELOPERS
MUST BEOUTSIDEMETRO MANILA
5 HectaresMust conform with developmentguidelines of :DA, BFAR, DENR, andLand Use and Zoning Regulations
5% tax on gross income(only for newdevelopment)
AGRO-INDUSTRIAL ECONOMIC ZONE
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REGISTRABLE ACTIVITIES
1. Import-substituting commercial production andprocessing of agricultural crops for bio-fuel(such as but not l imited to jetropha, coconut,sweet sorghum, sugar, etc.)
2. Processing / manufacturing for export ofagricultural and marine products (livestock andpoultry, frui ts and vegetables, aquacultureproducts
3. Integrated livestock, poultry, and relatedprojects involving primary production up toprocessing of final product
4. Production of agricultural inputs such as feeds,veterinary drugs and vaccines, fertil izers, andagri-chemicals for export
5. Projects involving the processing ofagricultural waste materials into commerciallyviable products for export
6. Bio-technology products using agriculturalproducts as inputs or to be used as inputs foragricultural production
7. Support services such as cold storages andwarehouses, and s imilar facilities
INCENTIVES
1. 4 years Income Tax Holiday (ITH)2. Special 5% tax on gross income in lieu ofall national and local taxes after the ITH
3. Tax and duty free importation of productionequipment and machineries, breeding
stocks, farm implements including spareparts and supplies of the equipment andmachineries
4. Exemption from export taxes, wharfagedues, impost and fees
5. Exemption from payment of localgovernment fees such as Mayors Permit,Business Permit, Permit on the Exercise ofProfession/Occupation/Calling, HealthCertificate Fee, Sanitary Inspection Fee,and Garbage Fee;
6. Zero Value Added Tax (VAT) Rate on localpurchases to include telecommunications,power, and water bills;
7. Special Investors visa8. Employment of foreign nationals9. Simplified import and export procedures;
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THE PHILIPPINESSUCCESS FACTORS
FILIPINO WORKERSFILIPINO WORKERS
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Literate, English speaking, easy to train,hardworking and very friendly
Among the Best in the World Among the Best in the WorldTHE COUNTRYS COMPETITIVE EDGE
In the IT Service Sector
Filipino Workers areconsidered the new breed of
world-class service
professionals andare referred to asGlobal Knowledge Workersbecause they are intelligent
and able to competeat the highest levels
among the best in the world.
STRATEGIC LOCATIONSTRATEGIC LOCATIONSTRATEGIC LOCATION
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Russia
EUROPE United Statesof America
South America
Pacific Ocean
Atlantic Ocean
Aus tral ia
JapanKoreaChina
India Africa
Taiwan
Hong Kong Philippines
ThailandMalaysiaSingapore
Indonesia
Germany
France
UnitedKingdom
Canada
MiddleEast
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PEZA recognizes Just-in-time deliveries Reduction of cost
are musts for exports tobe competitive
FAST TURNAROUND
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ESPECIALLY FOR ELECTRONICS96 HOURS OR 4 DAYS TO COMPLETE THE PRODUCTION
CYCLE:
DAY 1 An 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 the Asian country on the same day. Arrive in the Asian country on the same day.
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AS A CONSEQUENCE:
Most companies EARN PROFITeven on their first year of
operation.
Most companies have beenEXPANDING their operations.
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Batangas Port
The Gateway to Southern Luzon
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New and most modern port facility and equipment
Centrally located within the CALABARZON economiczones; Target volume minimum 10,000TEUs/month
Industrial Parks & EconomicIndustrial Parks & EconomicZones (PEZA):Zones (PEZA):
Laguna International IndustrialLaguna International IndustrialParkPark
Laguna TechnoparkLaguna Technopark
Lima Technology Center Lima Technology Center First Philippine Industrial ParkFirst Philippine Industrial Park First Batangas Industrial ParkFirst Batangas Industrial Park Calamba Premiere IndustrialCalamba Premiere IndustrialParkPark
CarmelrayCarmelray Industrial Park 1 & 2Industrial Park 1 & 2 Light Industry & Science Park ofLight Industry & Science Park ofthe Phils. 1 & 2the Phils. 1 & 2
YazakiYazaki --Torres Manufacturing Inc.Torres Manufacturing Inc. Cavite Special Economic ZoneCavite Special Economic Zone
Min. 10,000 TEUs/mo.
Target volume
DISTANCES BETWEEN MAJOR POINTS
Manila - Calamba : 50 kmManila Batangas : 100 kmCabuyao Calamba : 5 kmSta.. Rosa Calamba : 10 km
Calamba Batangas : 50 kmMariveles Manila : 27 nautical
miles
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ATI Batangas Phase 2Marginal Wharf
LOA 450 meters - 2 berthsDraft - 13 meters
Annual throughput capacity 480,000 TEU
Container yard 6.6 hectares
Container freight station 4,100 square meters
Two (2) high capacity ship toshore gantry cranes that ensureefficient loading and dischargeof containers
Mobile Equipment
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- 8 Tractors- Dutch Lanka Chassis- Forklift
Mobile Equipment
- 4 Rubber Tyred Gantries- 1 Reach Stacker
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Benefits
1. ATI Stevedoring charges -14% lower thanManila
2. 30 Minute Customs Processing3. 40%-60% Reduction in trucking cost4. Faster Turn-Around Time5. Predictability of deliveries
6. Reduced overtime costs
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Other Benefits Availability of large spaces for warehousing and
other needs State of the Art Equipment
PEZA IS A ONE-STOP SHOP
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Building and Occupancy Permits are issued by PEZA.
Import and Export Permits are issued by PEZA.
Special non-immigrant visa processed in PEZA.
Harmonized customs processes because of PEZA-BOC MOA.
Environment Clearance made easy because of PEZA-DENR MOA.
Exemption from Local Government Business Permits forcompanies inside PEZA.
Registration requirements simplified, registration forms madesimple, approval made easy .
If a company files its application 1 day before a Board Meeting, itsapplication will be included in the agenda for approval. The PEZABoard meets 2 times a month.
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At the zones, PEZA provides 24 hours aday, 7 days a week of continuousservice to locator companies.
The Director General herself and otherPEZA officials are on call 24 hours a day,
7 days a week.
PEZA IS A NON-STOP SHOP
PEZA
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A Total Service Plus Shop
More than granting incentives, PEZAserves as the Advocate and
Champion for Economic ZoneStakeholders Concerns .
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MAKE DOING BUSINESS
LESS COSTLY EASIER MORE COMPETITIVE
PEZAs TOTAL COMMITMENTTO INVESTORS
PEZA TOTAL COMMITMENT TO INVEST
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NO RED TAPE ONLY RED CARPET TREATMENT
PEZAs TOTAL COMMITMENT TO INVEST
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TRIMMING and RESTRUCTURINGthe BUREAUCRACY
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the BUREAUCRACY
38.47 % Reduction in Officers and Personnel
PEZA619 Officers and Personnel
( 30 June 2008 )
1,006 Officers and Personnel( 31 December 1994 )
EPZA
REMITTANCES TO THE NATIONAL GOVERNMENT( Payments of Loans, Dividends and Income Taxes )
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P 11.132 Billion( 1995 30 June 2008 )
PEZAEPZAP 145.498 Million
( 1969 - 1994 )
2006 Total RemittancesP 1.170 B
2007 Total Remittances
P 968.299 M
PEZA - 3 rd BIGGEST AMONG GOCCs GFIs in
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DIVIDENDS/ REMITTANCES TO THENATIONAL GOVERNMENTFrom January to May 2008
1. Philippine Ports Authority P 589 M2. Land Bank of the Philippines P 442 M
3. Philippine Economic Zone Authority (PEZA) P 346 M4. Philippine National Oil Company (PNOC) P 336 M
Report from the Department of Finance21 June 2008 Issue of thePhilippine Daily Inquirer
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WHERE WHERE
BUSINESSESBUSINESSESLOCATELOCATEANDAND
PROFITPROFIT