Manila: The Philippine Economic Zone Authority (PEZA) has issued new guidelines for establishing and registering pharmaceutical economic zones, known as pharmazones, to streamline regulatory processes, reduce drug prices, and attract global pharmaceutical investors to the country. The guidelines were approved by the PEZA Board, chaired by Trade Secretary Ma. Cristina Roque, during its meeting in February.
According to Philippines News Agency, 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 medical and drug manufacturing-related activities, especially in research and development, clinical testing, and trials.
PEZA Director General Tereso Panga stated that these zones are expected to attract substantial pharmaceutical, medical, and healthcare-related investments. They are also anticipated to advance technology, increase local production and research, create numerous jobs, enhance the country's export potential, and position the Philippines as a competitive player in the global pharmaceutical market.
Under the newly approved 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 entities will enjoy the same incentives as Export Enterprises, in line with PEZA Memorandum Circular No. 2023-033.
Panga expressed confidence that as investors use the Philippines as a manufacturing hub in Southeast Asia for dependable medicines and bring in their cutting-edge technologies, higher quality medicines and medical supplies will be developed for the whole region. This initiative is expected to ultimately increase the availability and lower the price of medicines for the Filipino people.
