Lifting of IT centers, parks moratorium to lure investors — Go

Following the decision of President Ferdinand Marcos Jr. to lift a 7-year moratorium and allowing the establishment of IT Centers and IT Parks in Metro Manila, investment czar and Finance Secretary Frederick Go said this would further improve the country’s investment environment.

The President signed Administrative Order (AO) No. 45, allowing the processing and evaluation of applications for the establishment of IT Centers and IT Parks in Metro Manila.

Aimed at attracting investments in NCR

The issuance of AO No. 45 is aimed at attracting more investments, creating jobs, and strengthening the National Capital Region’s position as the country’s leading information and communications technology (ICT) hub.

Under AO No. 45, President Marcos amended Administrative Order No. 18 (s. 2019), as amended by Administrative Order No. 11 (s. 2023), by exempting IT Centers and IT Parks from the existing moratorium on new economic zone applications in Metro Manila.

The President said the measure recognizes the continued importance of the services sector, particularly information and communications technology, as a key driver of economic growth.

Strategic enabler

“The Department of Finance (DoF) supported the adoption of this measure as a strategic enabler for attracting high-value, innovation-driven investments by allowing businesses to locate where talent, infrastructure, and established industry ecosystems are most developed,” said Go in a statement.

In pursuit of investments that generate the greatest economic value, Secretary Go said the government will continue to direct fiscal incentives toward priority industries and activities.

“Accordingly, while real estate developers of new IT Centers and new IT Parks in Metro Manila are not covered by these incentives, qualified Registered Business Enterprises that locate in PEZA-registered IT Centers and IT Parks in Metro Manila may continue to avail of incentives, subject to applicable investment incentive laws and regulations,” he stressed.

By directing incentives to enterprises that generate quality jobs, exports, innovation and higher value-added economic activity, Secretary Go maintained that the DoF supports the continued growth of the IT-BPM industry while preserving the integrity of the country’s investment incentives framework.

Moratorium on economic zone applications

The order, however, makes clear that the moratorium on all other economic zone applications in Metro Manila remains in force.

“The moratorium on the processing and evaluation of all other economic zone applications in Metro Manila under AO No. 18, as amended, shall continue to be in effect,” Section 2 stated.

President Marcos likewise instructed the PEZA Board to formulate and issue the implementing guidelines necessary for the effective implementation of the new policy.