Marcos Lifts Metro Manila Economic Zone Ban, Boosting IT-BPM Sector

President Ferdinand "Bongbong" Marcos Jr. has lifted the moratorium on the creation of new economic zones in Metro Manila, ending a ban that had been in place for over seven years. The decision was announced by Trade Secretary Cristina Roque on Tuesday. "The Department of Trade and Industry (DTI) welcomes the Office of the President's decision to officially lift the Administrative Order No. 18 (AO 18) moratorium on IT ecozone expansion in Metro Manila," Roque stated. AO 18, issued by former President Rodrigo Duterte in June 2019, aimed to accelerate rural development by promoting the establishment of special economic zones in the countryside. As part of this initiative, a moratorium was imposed on the processing of applications for economic zones within Metro Manila. Special Economic Zones (SEZs) are designated areas that are highly developed or have the potential to become agro-industrial, industrial, tourist/recreational, commercial, banking, investment, and financial centers. Enterprises located within SEZs benefit from special tax incentives, such as income tax holidays and reduced corporate income tax rates. "This major policy reform is a resounding victory for the IT-BPM sector and a decisive step forward in strengthening the Philippines' position as a premier global destination for digital services," Roque emphasized. "By reopening the NCR 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." The Trade Secretary described Marcos' lifting of AO 18 as a "testament to the strong collaboration between the DTI, the Philippine Economic Zone Authority (PEZA), and our industry stakeholders who strongly advocated for this reform." She added, "As we open new avenues for growth in Metro Manila alongside our continuous push to develop regional IT hubs, we are positioning the IT-BPM sector to generate thousands of high-quality jobs, attract foreign direct investments, and ensure economic growth nationwide." "We invite our global partners and prospective investors to take full advantage of this renewed momentum and build their future here in the Philippines," Roque concluded.