philippine economic zone authority towards building green

Rebooting The Philippine Economic Zone

Authority Towards Building Green Industrial

and Smart Cities

Dusit Thani Hotel, Makati City

1:30 PM, 07 December 2017

A Presentation for:

“OPPORTUNITIES FOR TAIWANESE INVESTORS IN PHILIPPINE ECONOMIC ZONES”

24TH JOINT MEETING OF THE PCBC-CPBC

• Attached to the Department of Trade and Industry

• Promotes Investments

• Creates Employment

• Generates Exports

Philippine Economic Zone Authority (PEZA)

BAGUIO EPZ

BATAAN EPZ

MACTAN EPZ

CAVITE EPZ Total Area :

3,183 hectares

LUISITA INDUSTRIAL PARK

CARMELRAY DEV’T. CORP.

SUBIC SHIP. ENG’G. INC.

VICTORIA WAVE

GATEWAY BUSINESS PARK

LIGHT IND. & SCIENCE PARK

LAGUNA TECHNOPARK

LAGUNA INT’L. IND’L PARK

TABANGAO SPECIAL EPZ

FIRST CAVITE IND’L. ESTATE

LEYTE IND’L. DEV’T ESTATE

MACTAN ECOZONE II

(1969 - 1994)

74 Industrial and Export Processing Zones

254 IT Parks and Centers

20 Tourism Ecozones

2 Medical Tourism Parks

22 Agro-Industrial ParksAs of September 2017

378 Operating Economic Zones Nationwide

74

260

20

2

22

(as of February 1995)

As of September 2017

1995 - 2016 Economic Zone Investments : P 3.377 Trillion

EPZA‘86 – ’93 12.7B 1994 9.6B

PEZA1995 52.5 B1996 65.3 B1997 159.7 B1998 96.9 B1999 155.7 B2000 156.7 B2001 80.8 B2002 38.7 B2003 31.7 B2004 50.5 B2005 67.2 B2006 83.7 B2007 133.7 B2008 154.8 B2009 175.4 B2010 204.4 B2011 288.3 B2012 311.9 B2013 276.1 B2014 279.5 B2015 295.1 B2016 218.2 B

8.19%

8.19%5.58%

94.12 %Growth

2016 20170

40

196.457

80

120

160

200

240

COMPARATIVE INVESTMENTSJAN - SEPT 2016 / 2017

101.202

In Php Million

INDUSTRY SECTOR JAN TO SEPT

2016

JAN TO SEPT

2017

% INCREASE/

DECREASE

Manufacturing 22,407.139 45,087.233 + 101.22%

Information Technology 14,576.323 11,386.751 -21.88%

Ecozone Development 61,677.516 123,718.194 + 100.59%

Others 2,541.685 16,265.700 + 539.95%

TOTAL 101,202.663 196,457.878 + 94.12%

- 2.5%

16.8%

19.9%

13.2%

3.6%

12.6%

13.3%

- 0.84%

-18.86%

23.02%

4.13%

- 5.03%

7.11%

56.4 %

1994 2.739

51.7 %

1995 4.284

63.5 %

1996 6.500

24.9 %

1997 10.626

19.1 %

1998 13.270

1999 15.807

26.7 %2000 20.025

2001 19.498

2002 22.775

2003 27.313

2004 30.924

2005 32.030

2006 36.077

2007 40.889

2008 40.543

2009 32.898

2010 40.473

2011 42.144

2012 40.023

2013 42.872

44.034 2.71%

43.971 - 0.15%

47.9622016 8.99%

2014

2015

In Billion US Dollars

ECONOMIC ZONE EXPORTS

US$ 37.974 Billion

2017Jan-Sep

US$ 34.626 Billion

2016Jan-Sep

9.66 % Increase

Economic Zone Exports Others

2.7 6.5 10.6 13.3 15.8 20.0 19.5 22.7 27.2 30.7 31.6 35.1 39.0 38.04.3 28.9 36.1 36.3 33.9 35.3 35.3 34.4 36.4

13.5

17.4

20.5

25.2

29.5

80%

20%25%

75%68%

32% 42%

58%

45%

55%

35.0

38.1

32.2

35.236.2

45%

55%53%

47%61%

39%

65%

35% 75%

25%

39.741.3

47.4

50.549.1

77%

23%

77%

23%

74%

26%

77%

23%

77%

23%

38.4

51.5

48.0

52.053.9

75%

25%

70%

30% 76%

24%

65%

35%

65%

35%

62.1

58.6

56.2

43%

57%59%

41%65%

35%

2004 406,752

1996 152,250

1997 183,709

1998 219,791

1999 247,076

2000 278,407

2001 289,548

2002 328,384

2003 362,851

2005 451,279

1995 121,823

91,8601994

2006 545,025

2007 593,108

2008 608,387

2009 611,058

2010 735,672

2011 840,945

2012 912,047

2013 1,048,351

1,170,017

1,264,263

2014

2015

1,360,3422016

ECONOMIC ZONE DIRECT EMPLOYMENT

2017As of Sept

2016As of Sept

4.47 % Increase

1,316,153

1,375,080

As of September 2017

Total Direct and Indirect Employment: (x 5 of total direct employment)

6,875,410In the Philippines: Breadwinners support an average of 5 family members. If half of the total direct and indirect employment are breadwinners or

3,437,705 x 5= 17,188,525 + 3,437,705=

20,626,230 Filipinos are positively affected by PEZA’s Economic Zone Program

LOCATOR INVESTMENTS BY NATIONALITY( 1995 – 2016 )

22.19 % Filipino

15.45 % American

7.41 % British

12.67 % Dutch

3.50 % Singaporean

1.60 % German

3.74 % Others

3.72 % Korean

0.85 % Swiss

0.85 % Taiwanese

28.02 % Japanese

LOCATOR INVESTMENTS BY PRODUCT SECTOR( 1995 – 2016 )

Metals/Fabricated Metal Products

Transport (Shipbuilding, Aerospace, Car Parts, Equipment)

Electrical Machinery and Apparatus

Medical, Precision and Optical Instruments

Tourism

Rubber and Plastic Products

Other Manufactures

5.84 %

4.71 %

2.15 %

7.96 %

1.68 %

19.51 %

Information Technology Services

Medical Tourism1.21 %

8.81 %

10.97 %

37.17 %

Electronics /

Semiconductors

WHY PHILIPPINES

GDP Growth(2012-2015)

Population Median Age

Philippines 6.63% 100,000,000 23.5

Singapore 3.57% 5,469,700 33.8

Thailand 3.67% 67,725,979 36.2

Malaysia 5.40% 29,901,997 27.7

Indonesia 5.53% 254,454,77 29.2

Vietnam 5.53% 90,730,000 29.2

ASEAN-6 5.06% 91,236,857 29.93

Source : World Bank and CIA World Fact Book

The Philippines is Fastest Growing Among the ASEAN-6 countries:

•Fastest Growing Economy (6.8% GDP Growth in 2016)

•100 Million Population

•Youngest Population

PHILIPPINE STRENGTHS

GSP + granted to Philippines by E.U. Parliament on Dec. 19, 2014

Philippines is the only E.U. GSP+ beneficiary country among ASEAN

Zero Tariff on 6,274 products destined for Europe with 40% local content


U.S.A. listed the Philippines as GSP-Eligible Beneficiary on October 2015

Zero Tariff on 3,500 products lines destined for the USA except textiles and apparel, watches, footwear, work gloves, and leather apparel.


Investment Grade Credit Rating


• High literacyrate of 94.6%

• English-speaking

The Filipino Work Force

• Easy to train• Hardworking

• Responsible• Loyal


• Very friendly


Filipino Workers are considered

Global Knowledge Workers

because they are intelligent and able to

compete at the highest levels

among the best in the world.

In the I.T. Sector

1 million Filipinos reach working age every year,and half of them are college graduates.


• Basic rights of Investors are guaranteed: Right to remit profits Right to pay foreign obligations Right to repatriate investments

• 100% Foreign ownership of companies

Foreign Investor-Friendly Policies

STRATEGIC LOCATION

- Center of Asia and the Pacific

- Ideal distribution hub for investors

HOSPITABLE and COMFORTABLESECOND HOME

(Result of a survey conducted on expatriates in Asia)

Very friendly attitude of Filipinos


Housing at very reasonable rates

International schools for

expatriates' children


Best sporting and

recreational facilities


World class health services


WHY PEZA

1. Income Tax Holiday (ITH) 6 to 8 years for pioneer project 4 to 6 years for non-pioneer

project

2. After the ITH - Special 5% tax on gross income less allowable deductions in lieu of all national and local taxes

Incentives

3. Tax and duty free importation of capital equipment, spare parts, supplies and raw materials

4. Domestic sales allowance of up to 30% of total sales

Incentives

5. Zero Value Added Tax (VAT) Rate on all local purchases directly related to its registered activity to include telecommunications, power and water bills

6. Exemption from payment of local government taxes and fees

Incentives

7. Employment of foreign nationals

8. Special visa for foreign investorsand immediate family members

9. Long-term land lease of up to 75 years

10. Unequalled service by PEZA

Incentives

THE PEZA

BRAND OF SERVICE

FOR

EASE OF DOING BUSINESS

• Building and Occupancy Permits

• Import and Export Permits

• Online Import and ExportProcedures and E-Payment System

1. PEZA is a One-Stop Shop

• Special multiple-entry non-immigrant Visa

• Environment Clearance Certificate (MOA with DENR)

• Exemption from Local Government Permits and Fees

• Simplified registration process – electronic application available from website; forms downloadable

• Provides 24 hours a day, 7 days a week of continuous service

• The Director General and other top officials are on call 24 hours a day, 7 days a week

2. PEZA is a Non-Stop Shop

NO RED TAPE

3. In PEZA, there is

ONLY RED CARPETTREATMENT


NO GRAFT

NO CORRUPTION


“Under PEZA, the Philippines has shown dramatic improvements in Investment Climate.

End Result – PEZA is a shining example of successful regulatory reform improving overall investment climate in the country.”

IFC – World Bank cited only PEZA forBest Practice among Economic Zones

worldwide

Rights of Filipino Workers

Protection of the Environment

Appreciation of

Investment EnvironmentsDecember 2016

JETRO 2015 Survey of Japanese-Affiliated Firms

in Asia and Oceana

(%)

0 10.0 20.0 30.0 40.0 50.0 60.0 70.0

Malaysia

Thailand

India

Vietnam

Philippines

Indonesia

65.7

13.6

26.0

9.5

11.3

73.8

Less Linguistic/Communication Problems

80.0

(%)

0 10.0 20.0 30.0 40.0 50.0

Malaysia

Thailand

India

Vietnam

Philippines

Indonesia

4.5

15.1

10.9

24.4

22.9

40.8

Easy To Hire Local Staff(General Worker/Staff/Clerk)

(%)

0 5.0 10.0 15.0

Malaysia

Thailand

India

Vietnam

Philippines

Indonesia

1.5

5.8

5.9

10.9

5.2

12.6

High Quality of Employees(General Worker)

(%)

0 5.0 10.0 15.0

Malaysia

Thailand

India

Vietnam

Philippines

Indonesia

4.9

9.2

11.7

9.2

9.0

14.6

High Employee Retention Rates

(%)

0 10.0 20.0 30.0 40.0

Malaysia

Thailand

India

Vietnam

Philippines

Indonesia

10.8

12.1

5.1

12.0

2.3

31.1

Tax Incentives(Corporate Tax Holidays, etc.)

Country 2011 2012 2013 2014 2015

China 185 382 656 1,379 2,775

Indonesia 196 51 239 233

Philippines 2 2 1 2 5

Thailand 14 12 11 8 6

Vietnam 981 468 327 278 262

(Unit: Number)

Sources:

China: China Labour Bulletin

Indonesia: Ministry of Manpower and Transmigration

Philippines: National Conciliation and Mediation Board

Thailand: Department of Labour Protection and Welfare

Vietnam: Vietnam General Confederation of Labor

Number of Strikes/Lockouts

Source: IC Insights 2014 / SEIPI

5 OF THE WORLD’S TOP 20

SEMICON and ELECTRONICS SALES LEADERS

ARE OPERATING IN THE PHILIPPINES

MAJOR SMS and EMS PLAYERS IN THE COUNTRY

Source: SEIPI

Notes:

SMS – Semiconductor Manufacturing Services

EMS – Electronics Manufacturing Services

Major Players Per Sectors:

- Semiconductor (Components / Devices)

- Computer Related Products / EDPs

- Office Equipment

- Consumer Electronics

- Telecommunications

- Communication/Radar

- Control & Instrumentation

- Medical / Industrial Instrumentation

- Automotive Electronics

- Aerospace

- Solar / PV

Top Economic Zone Investors

TI Philippines Electronics American/Dutch

Taganito HPAL Nickel Basic Metals Japanese

Toshiba Information Electronics Japanese

Tiger Resort Tourism American/Japan

Sunpower Philippines Solar Cells American/Cayman

Travellers International Tourism Filipino

Sureste Properties Tourism Filipino

Ibiden Philippines Electronics Japanese

Amkor Technology Electronics Singapore/American

Coral Bay Nickel Basic Metals Japanese


NXP Semiconductors Electronics Dutch

Canon Business Electronics Japanese

MCE Leisure Tourism British Virgin

Epson Precision Electronics Japanese

HGST Philippines Electronics Dutch/Japanese

PASAR Basic Metals Filipino

Rohm Electronics Electronics Singapore/Japan

JT International Tobacco Dutch

Toyota Autoparts Automotive Japanese

Samsung Electronics Korean

Toyota Autoparts Automotive Japanese

St. Luke's Medical Tourism Filipino

Tsuneishi Shipbuilding Japanese

Integrated MicroElectronics Electronics British

STMicroelectronics, Inc. Electronics Swiss

Panasonic Precision Electronics Dutch/Japanese

Lufthansa Technik Air Transport German

American Power Electrical Machinery Dutch/American

Continental Temic Electronics German

TDK Philippines Electronics Japanese


Accenture, Inc. Info Technology Dutch

Taiyo Yuden Electronics Japanese

Pilipinas Kao Chemical Products Japanese

Terumo Philippines Medical Instruments Japanese

Nidec Philippines Electronics Japanese

AG & P Fabricated Metals Filipino

Teletech Info Technology American

On Semiconductor Electronics American

Analog Devices Electronics Dutch

Green Future Agro-Industrial Japanese


Brother Industries Electronics Japanese

Xerox Business Info Technology Dutch

JPMorgan Info Technology American

Schweitzer-Mauduit Agro-Industrial American

Convergys Philippines Info Technology Dutch/American

House Technology Rubber/Plastic Singapore/Japan

Funai Electric Electronics Japanese

First Sumiden Electronics Japanese

Smart Electronics Electronics Korean

MJC Investments Tourism Filipino


Ionics EMS Electronics Filipino

PV Tech Electrical Machinery Singaporean

Cypress Manufacturing Electronics American

Concentrix Daksh Info Technology Dutch

Moog Controls Air Transport American

Cavite Biofuel Agro-Industrial Filipino

First Philec Electronics Filipino

Telephilippines Info Technology Dutch

Nidec Precision Electrical Machinery Japanese

Tong Hsing Electronics Taiwanese


78

Taiwanese Companies

in

PEZA Economic Zones

Number of PEZA-Registered Enterprises

with Taiwanese Equity by SectorINDUSTRY SECTOR NO. OF ENTERPRISES

MANUFACTURING 62Electronics / Semiconductor 18

Electrical Machinery and Apparatus, N.E.C. 3Medical, Precision and Optical Instruments, Watches

and Clocks 3Radio, Television and Communication Equipment and

Apparatus 12

Office, Accounting and Computing Machinery 0

Garments and Textiles 18

Wood, Wood Products & Cork 1

Chemicals and Chemical Products 2

Rubber and Plastic Products 5

Basic Metals 0

Fabricated Metal Products 9

Machinery and Equipment, N.E.C. 0

Paper and Paper Products 5

Recycling 1

Manufacturing, N.E.C. 3

INFORMATION TECHNOLOGY SERVICES 1Call Centers 0

Software Development 0

Data Encoding, Transcribing and Related Services 0

Business Process Outsourcing 1

Engineering, Architectural and Other Design Services 0

Other IT-enabled Services 0

REAL ESTATE AND FACILITIES RENTAL ACTIVITIES 8

TRANSPORT, STORAGE AND COMMUNICATIONS 4

OTHER BUSINESS ACTIVITIES 3

T O T A L 78

ELECTRONICS AND SEMICON COMPANIESTong Hsing Electronics (Philippines), Inc.Kinpo Electronics (Philippines), Inc.Dyna Image Corporation PhilippinesAcbel Polytech Philippines, Inc. Orient Semiconductor Electronics Philippines, Inc.Bioteque Medical Phil. Inc.Leader Electronics (Philippine Branch) IncorporatedHitachi Chemical Energy Technology Co., Ltd.MEC Electronics Philippines Corporation

FABRICATED METAL PRODUCTS COMPANIESTaihan Precision Technology (Philippines) Co., Inc.

Asam Industries Inc.

Hor Sin Metal Corp.

Vinox Corporation

Polaris Mold Fabrication Corporation

Rosario Fasteners Corporation

Philake Metal Corporation

Zhan Jung Metal Finishing Corporation

SK10 Corp.

RUBBER, PLASTIC, AND PAPER PRODUCTS COMPANIES

Shing Hung Plastics Company, Inc.

Kou Fu Packaging Corporation

Yiking Plastic Production Inc.

Fong Shann Printing Philippines Inc.

Tsuchiya Kogyo (Phils.), Inc.

Foxcolor Tech. Inc.

Faith Achieve Plastics Corporation

Philbook Consumer Products Inc.

Paul Deco Industrial Corporation

Yeng Hsingh - Philippine Branch

MANUFACTURING, N.E.C.

Sports Royal, Inc.

Paul Yu Philippines Corporation

Headway Caps International Co., Inc.

BUSINESS PROCESS OUTSOURCINGXuenn Incorporated

GARMENTS AND TEXTILES

Feeder Apparel Corporation

Mactan Apparels, Inc.

Globalwear Manufacturing, Inc.

Metro Wear Inc.

Pan-Phil Sportswear, Inc.

Palmphil Garments Philippine

Corporation

Probag Cebu Exports, Inc.

Hatquarter Inc.

St. Jane International, Inc.

Excellent Texscreeners, Inc.

Formosagarment Printing, Inc.

Chi Hsing Hats & Caps, Inc.

Good Enterprise Corporation

Philippine Unionlite Industrial

Corporation

Better Phils. Apparel, Inc.

Mactan Diamond Embroidery,

Inc.

Bagtrends International

Corporation

Classic Computer Embroidery,

Inc.

LOGISTICS, FACILITIES AND RECYCLING COMPANIES

Phil Bright Corporation

Greenstone Creative Property Holding Corporation

Pofucon Realty Corporation

Tansunco Properties, Inc.

Globalwear Manufacturing Inc.

Formosawide Industries Inc.

Renkyo Industrial (Philippines) Inc.

V-Tech Trading Logistics and Services Corp.

OTKM Services Phils. Inc.

TMC Metal Philippines, Inc.

MEC Electronics Philippines Corporation.

Alicia Ann International, Inc.

Elom International Foods, Inc.

Kinpo Electronics (Philippines), Inc.

CHEMICALS AND CHEMICAL PRODUCTS COMPANIESEast Stacker Philippines Corporation

Bary's Industrial Corporation

AWAITING

YOUR

INVESTMENTS !

philippine economic zone authority towards building green

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