PEZA Presentation

8/10/2019 PEZA Presentation

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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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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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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



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MEDICAL TOURISM CENTER (Hospital or Stand Alone Bldg)


DEVELOPERS


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



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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



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RETIREMENT ECOZONE CENTER


DEVELOPERS


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



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


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

PEZA Presentation

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