Philippine Economic Zone Authority (PEZA) director general Tereso Panga welcomed the order of President Ferdinand Marcos Jr. to lift the seven-year moratorium on the establishment of new Information Technology (IT) Parks and IT Centers in Metro Manila, noting that Administrative Order (AO) 45, s. 2026 is a major boost to the country’s competitiveness in attracting and expanding high-value IT-BPM investments.

Panga said the issuance resolves a long-standing policy constraint and enables PEZA to respond more effectively to the evolving requirements of the IT-BPM industry while opening new opportunities for property developers.

“We thank President Ferdinand R. Marcos Jr., Executive Secretary Ralph G. Recto, Trade Secretary and PEZA Board Chair Cristina A. Roque, and Finance Secretary Frederick D. Go for supporting the resolution of this seven-year issue. AO 45 is a major policy breakthrough that strengthens our ability to compete for the next wave of IT-BPM, global capability center, and other technology-enabled investments,” Panga said.

He said the lifting of the moratorium is particularly timely as the Philippines seeks to deepen its presence in new and relatively untapped markets for outsourcing and technology-enabled services.

Significant opportunities

The country sees significant opportunities in economies such as Australia and Japan, where there is growing demand for outsourced business services, digital operations, engineering and other knowledge-based activities, beyond its traditional IT-BPM markets.

“It will also allow developers to register and market qualified office developments as PEZA IT Parks and IT Centers, making these spaces more attractive to PEZA-registrable enterprises looking for new or expansion sites in Metro Manila,” according to Panga.

PEZA clarified, however, that developers of these IT Parks and IT Centers will not be entitled to fiscal incentives pursuant to PEZA Board Resolution No. 00-411, as amended.

Still avail of applicable incentives

Qualified IT-BPM enterprises locating in these buildings may still avail of the applicable incentives under existing laws, rules and regulations. The policy is intended to expand the supply of PEZA-registered locations for eligible IT-BPM locator enterprises without extending additional incentives to property developers.

“This allows our property developers to reposition qualified office spaces to meet the requirements of global IT-BPM companies. Developers can bring these projects into the PEZA ecosystem and market them as PEZA-registered locations, while DTI and PEZA will actively promote these spaces to potential locators looking for new or expansion sites in Metro Manila,” Panga said.

Trade Secretary and PEZA Board Chair Roque said AO 45 provides the Philippines with greater flexibility to compete for high-value IT-BPM investments and generate more quality employment opportunities for Filipinos.

Major boost

“AO 45 is a major boost to the Philippines’ IT-BPM investment proposition. By bringing more investment-ready locations into the PEZA ecosystem, we are giving global companies more options to enter and scale their operations in the Philippines while helping generate demand for available office spaces,” Roque said.