Following the lifting of the ban on information technology economic zones in Metro Manila, the Department of Trade and Industry (DTI) expects the new investments to come in as well as new jobs to be generated, according to a news report by the Manila Bulletin.
To put things in perspective, posted below is an excerpt from the Manila Bulletin report. Some parts in boldface…
The Department of Trade and Industry (DTI) expects the information technology and business process management (IT-BPM) sector to generate more jobs and attract new investments after the lifting of the ban on IT economic zones in Metro Manila.
In a statement on Tuesday, July 28, Trade Secretary Cristina Roque welcomed the issuance of Administrative Order (AO) No. 45, which seeks to ease some of the restrictions under the broader prohibition on the processing and evaluation of applications for ecozones imposed during the previous administration.
“This major policy reform is a resounding victory for the IT-BPM sector and a decisive step forward in strengthening the Philippines’ position as a premier global destination for digital services,” the DTI chief said.
AO 45, signed by President Ferdinand Marcos Jr., excludes applications for the establishment of IT centers and IT parks from the ongoing moratorium on ecozone applications.
The order maintains the prohibition on all other ecozone applications in National Capital Region (NCR), as embodied in AO 18, issued by former President Rodrigo Duterte in 2019. The policy was implemented to encourage development and spur investments in the provinces.
With the lifting of the ban, Roque said the government is addressing long-standing investor demand from IT-BPM firms looking to open or expand in NCR while also creating more opportunities for real estate development.
“As we open new avenues for growth in Metro Manila alongside our continuous push to develop regional IT hubs, we are positioning the IT-BPM sector to generate thousands of high-quality jobs, attract foreign direct investments, and ensure economic growth nationwide,” she said.
The DTI earlier endorsed the proposal of the investment promotion agency (IPA) Philippine Economic Zone Authority (PEZA) to lift the moratorium to provide more options for companies seeking to locate in key central business districts in the capital region.
PEZA Director General Tereso Panga earlier told reporters that the ban has essentially forced firms to operate in existing ecozones, restricting their expansion plans.
“We invite our global partners and prospective investors to take full advantage of this renewed momentum and build their future here in the Philippines,” Roque said.
IT-BPM firms operate in ecozones to avail themselves of the fiscal and nonfiscal incentives provided by the government.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you consider Metro Manila suitable for the establish of new economic zones as well as the expansion of existing economic zones? Do you believe that the demand by IT-BPM firms for expansion in Metro Manila is real?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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