To bolster the pharmaceutical landscape, the state-owned Philippine Economic Zone Authority (PEZA) has released guidelines for the creation of pharmaceutical economic zones, dubbed “pharmazones.”
The strategy, greenlit by the PEZA board, aims to slash through regulatory red tape, reduce drug prices, and lure global pharmaceutical titans to the Philippines’ shores.
The guidelines outline the incentives available to pharmazone developers, operators and registered business enterprises, aiming to encourage investment in the sector.
Pharmazones will serve as hubs for firms engaged in various aspects of medical and drug manufacturing-related activities, most specially in research and development, clinical testing and trials.
“These zones are expected to attract substantial pharma, medical, and healthcare-related investments, advance technology, and increase local production and research, creating numerous jobs and enhancing the country’s export potential, and positioning the Philippines as a competitive player in the global pharmaceutical market,” PEZA Director General Tereso Panga said in a statement.
Under the new guidelines, pharmazones located in the National Capital Region and other metropolitan areas must cover at least 10,000 square meters, while those in non-metropolitan regions must have a minimum land area of 50,000 square meters.
Developers and operators of these ecozones will be entitled to fiscal incentives provided under Title XII of the amended Tax Code.
Additionally, enterprises involved in supporting export activities, including ecozone developers, utilities and facility operators dedicating at least 70 percent of their leasable or saleable areas to exporters, will be classified as “Activities in Support to Exporters.”
These institutions will enjoy the same incentives as Export Enterprises, in line with PEZA Memorandum Circular 2023-033.
“As investors come in using the Philippines as a manufacturing hub in Southeast Asia for dependable medicines and bring in their cutting-edge technologies, I am sure that higher quality of medicines and medical supplies will be developed for the whole region and ultimately increase the availability and lower the price of medicines for the Filipino people,” Panga said.