Marcos exempts new IT parks from ecozone moratorium in NCR

President Ferdinand R. Marcos, Jr. has exempted information technology (IT) parks and centers in Metro Manila from the ban on new Philippine Economic Zone Authority (PEZA) economic zones (ecozone) to encourage further expansion in the business process outsourcing (BPO) industry.

Administrative Order (AO) No. 45, signed by Executive Secretary Ralph G. Recto on July 23, directed the PEZA Board to accept, process and evaluate all applications for IT centers and parks in Metro Manila.

Trade Secretary Maria Cristina A. Roque said the lifting of the ecozone moratorium for Manila-based IT parks and centers would unlock opportunities in the country’s digital economy and real estate sectors.

“By reopening the NCR (National Capital Region) to new IT ecozones and targeted expansion, we are addressing long-standing investor demand, unlocking significant real estate opportunities, and revitalizing the ecosystem that drives our country’s digital economy,” she said in a statement on Tuesday.

Under the new order, the moratorium on new ecozone applications in the NCR continues to apply to all developments except those related to the information technology-business process management (IT-BPM) industry.

The order amended AO No. 18, issued in June 2019, which suspended the processing and evaluation of applications for new ecozones in Metro Manila to encourage more investments in the countryside.

While the government issued AO 11 in 2023 to allow the resubmission of ecozone applications for those with a prequalification clearance before the moratorium, many firms could not apply.

“Allowing the processing and evaluation of applications for the establishment of IT centers and parks will attract more investors, generate more employment, and strengthen Metro Manila’s position as the leading information and communications technology hub in the country,” according to AO No. 45.

Companies operating in a PEZA-registered ecozone are entitled to fiscal and non-fiscal incentives such as duty-free importation, streamlined processes, and tax holidays.

At present, PEZA hosts 1,262 IT-BPM enterprises, contributing USD 7.94 million (PHP 489.27 million) in export revenues from January to May and with a workforce of 1.06 million.

PEZA Director-General Tereso O. Panga earlier said potential applicants for ecozone status include Ayala Land, Inc.’s (ALI) Arca South in Taguig and Robinsons Land Corp.’s (RLC) Bridgetowne in Quezon City.

For 2026, the agency is targeting 30 ecozone proclamations.

Lifting the moratorium on IT ecozone expansions in Metro Manila gives IT-BPM firms the flexibility to choose locations that best align with their operating needs, said Rosario P. Carbonell, chief operating officer at property consultancy firm Savills Philippines.

“The exemption expands the range of PEZA-accredited office options available to occupiers, allowing companies to relocate, expand, or consolidate operations into newer developments that are better aligned with today’s corporate standards,” she said in an e-mail.

This is also expected to boost activity in the Philippine office market, which is heavily driven by IT-BPM locators, Ms. Carbonell said.

“We expect it to support healthy flight-to-quality activity, encourage occupiers to modernize their workplace portfolios, and reinforce Metro Manila’s position as the country’s leading destination for IT-BPM, multinational corporations, and next-generation Global Capability Centers,” she added. — Beatriz Marie D. Cruz, Senior Reporter