There are at least 415 special economic zones in the Philippines. Manufacturing, IT Parks, tourist, export processing zones, agro-industrial economic zone, and medical jurisdictions enjoy the same privileges and rewards as other SEZs in other nations. These special zones, like our other low-hanging economic plums like tourism, agriculture, and service exports, are magnets for growth and development. They stimulate economic activity and increase our exports of products and services. They provide instant work and enable our residents to bring much-needed assistance home to their families.
The Philippine Economic Zone Authority (PEZA) is a government agency in the Philippines affiliated with the Department of Trade and Industry that was established to encourage investment in the country’s export-oriented manufacturing industry by assisting investors in registering and facilitating their business operations, as well as providing tax breaks. The Special Economic Zone Act of 1995, a legislation established by the Philippine Congress, embodies the formation of PEZA, the growth of Special Economic Zones throughout the nation, and the very competitive incentives such as income tax holiday provided to investors inside PEZA Special Economic Zones. The Secretary of Trade and Industry chairs the PEZA Board, as specified in the Special Economic Zone Act.
Place-based policies are becoming more popular in both developed and developing countries. While many advanced nations utilize place-based policies to target economically disadvantaged areas, low-income countries rely on SEZs to increase export diversification and attract foreign investment. Moreover, Special Economic Zones had been perceived as successful during the 1950s at Ireland’s international airport. Then Dubai and other nations followed. The top three hosts are now the United States, France, and Australia. Globally, an estimated 3,000 SEZs have produced at least 68 million employment and $500 billion in added value. In our local economic zones, there are at least 1,687 registered commercial businesses. These business firms have roughly P922-billion in shareholder equity. This represents around 6% of the whole Philippine equity market.
List of reasons why you should invest in properties near special economic zones:
1. Rampant Opportunities for Employment
The Philippine Economic Zone Authority adheres to the Equal Employment Opportunity Principle (EEOP). They offer various job vacancies for all eligible persons who are welcome to apply for available positions, regardless of age, gender, sexual orientation, gender identity, civil status, handicap, religion, ethnicity, or political affiliation. Living near special economic zones in the Philippines provides the opportunity to work in free trade zones. There are a variety of needed skills and career prospects placed on the neighboring population. In addition, PEZA also provides environmental management and sustainability training and assistance to its workers and partners.
Read More: Employment Opportunities Found in Eco Zones of the Philippines
2. Steady Supply of Energy
Philippine Economic Zone Authority is dedicated to supporting long-term growth in the economic zones that it governs. The organization promotes investors to adopt eco-friendly activities and to invest in renewable energy. One of the advantages of living near special economic zones is the presence of autonomous power systems which provide manufacturers and facilities with the energy they require to function independently. Because heavy businesses use a lot of energy, stable and high amounts of power are required at all times. An independent electric grid is an efficient answer to this type of energy demand since it does not need to be linked to the same grid with other areas , such as residential and other metropolitan areas, are connected to. Meaning, electrical outages caused by a lack of energy supply may be avoided for inhabitants near the area since major manufacturing economic zones have their own centralized electric system and do not have to share electricity with locals nearby.
Aside from power systems, water is treated in the same way in an industrial park. Water is another resource that many businesses use in large quantities to run their everyday operations. Water treatment is also required to make things sustainable because wastewater is a typical byproduct of many industrial activities. Businesses in industrial parks can benefit from a dedicated water supply and sewage systems, which provides a continuous, renewable, supply of water for their own and doesn’t have to share from the public’s reserves.
3. Improved Accessibility for Rural places
Aside from economic growth, one of the underlying objectives of economic zones is to decongest the living population in Metro manila. In line with that, various construction of roads and infrastructures had been in place for its accessibility. Moreover, This the strain and inconvenience of commuting will gradually diminish until it is no longer a concern. Along with it, the country’s transportation systems are being improved in rural places.
In line with this, there are current on-going projects for the development of transportation systems such as: the development of airport for domestic and international travel, railways, cable cars construction, and several roads, including the East-West Expressway and a route connecting the airport to the zones.
4. Rise of Commercial and Industrial Developments
The municipal government where the economic zones resides takes part on the constant process of developing the area by permitting the establishment of basic infrastructure in the area. Industrial and commercial construction encompasses a wide range of organizations and sectors. This category includes hospitals, labs and other medical facilities, educational institutions, recreational facilities, multi-family complexes, car wash facilities, and other adequate facilities for the residents in ecozones. Future growth and development will help to encourage existing and new investors to invest more in areas that require improvement. This benefits not just the investors, but also the inhabitants in the ecozone community, since their lives will undoubtedly improve as a result.
5. Economic Growth
Ecozones will be drivers of economic recovery and growth in every region, helping to create employment and meet the area’s supply demands. Owning a property within this area of development will undoubtedly provide great returns for your investments. Furthermore, When individuals have work, their consumption rises and local production expands. This, in turn, would improve socioeconomic advancement while decreasing crime and poverty occurrence in our regions, as observed by the municipal government. To illustrate, formerly, Cavite had just three cities, and their municipalities were of the fourth class. Cavite today has seven cities, and its municipalities are first-class municipalities or cities, thanks to the abundance of special economic zone. Similarly, Baguio City and Lapu-Lapu City, which also house our ecozones, are today heavily urbanized places that benefit greatly from the wealth generated by the ecozones and industry.
Read more: 5 Tips to spot economic growth in a city
Conclusion
Overall, the key objective of the Philippines Free Trade Zones is to encourage foreign direct investment and business establishment in certain designated locations, hence strengthening the Philippine economy. Businesses operating in these free trade zones benefit from numerous customs tax exemptions and incentives, as well as other regulatory advantages. Creating new ecozones around the country will also help to achieve the objective of expanding development and completely industrializing the country in the middle of the COVID-19-caused global catastrophe. If you are a savvy investor looking to invest in real estate, investing near special economic zones will undoubtedly give you with excellent profits due to the rapid development.
Why invest with Bria Homes Properties?
After learning about the benefits of investing in houses in special economic zones, the next step is to look into which developers provide the best property offers for you and your family. Bria Homes, fortunately, had been a key real-estate developer that allowed Filipinos to afford real-estate properties near special economic zones. Bria Homes, in fact, is one of the Philippines’ newest yet most dependable real estate developers, with plans to expand in tandem with the growth of other cities. In reality, it continues to develop and advertise affordable houses and lots to the general public so that they may take advantage of these possibilities.
There are a lot to list of special economic zone of the Philippines. Bria Homes Alaminos and Bria Homes Dumaguete are some of the properties currently located near special economic zones in the country. If you are interested contact us here.
