1. P HILIPPINE E CONOMIC Z ONE A UTHORITY

2. PHILIPPINE ECONOMIC ZONE AUTHORITY An investment promotion agency attached to the Department of Trade and Industry. PEZA took over the functions of the former Export Processing Zone Authority (EPZA) in 1995. PEZA supervises economic zones that are proclaimed under its mandate nationwide.

3. Philippine Economic Zone Authority Support government’s efforts to: Promote Investment Create Employment Generate Export

4. 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 16 EPZA- REGISTERED PUBLIC & PRIVATE ECONOMIC ZONES ( 1969 - 1994)

5. MAJOR POLICY THRUST PEZA ceased developing economic zones Encouraged private sector to develop economic zones

6. TOTAL OF 195 ECONOMIC ZONES * BAGUIO CITY ECONOMIC ZONE JOHN HAY SPECIAL TOURISM ECONOMIC ZONE SANCTUARY IT BUILDING SM BAGUIO CYBERZONE BUILDING FORT ILOCANDIA TOURISM ECONOMIC ZONE PANGASINAN INDUSTRIAL PARK II LUISITA INDUSTRIAL PARK TECO SPECIAL ECONOMIC ZONE TARLAC PROVINCIAL INFORMATION TECHNOLOGY PARK II SM CITY PAMPANGA ROBINSONS LUISITA CLARK TI SPECIAL ECONOMIC ZONE ANGELES INDUSTRIAL PARK PAMPANGA EXPORT PROCESSING ZONE STA. MARIA INDUSTRIAL PARK SUPIMA ECIRCLE PHILIPPINE PACKING AGRICULTURAL EPZ VICTORIA WAVE ROBINSONS PLACE NOVALICHES DILIMAN IT BUILDING CONVERGYS IT BUILDING HTMT CYBER PARK EDSA CENTRAL IT CENTER SUN PLAZA EDSA CENTRAL IT CENTER 2 E-SQUARE INFORMATION TECHNOLOGY PARK TOTAL CORPORATE CENTER I MCKINLEY HILL CYBER PARK MARKET! ST. LUKE’S MEDICAL CENTER GLOBAL CITY MULTINATIONAL BANCORPORATION PEOPLESUPPORT CENTER IT BUILDING NORTHGATE CYBERZONE METROPOLIS STAR MACROASIA ECOZONE ASAHI SPECIAL ECONOMIC ZONE EUGENIO LOPEZ JR. COMMUNICATION CENTER GLOBAL TRADE CENTER EASTWOOD CITY CYBERPARK SMNE IT CENTER EXPORTBANK PLAZA BUILDING THE ENTERPRISE CENTER RCBC PLAZA BURGUNDY CORPORATE TOWER LIBRAN HOUSE IT CENTER MJ PLAZA MANILA HARBOUR CENTER NEWPORT CITY CYBERTOURISM ZONE SM ICITY SM ICITY 2 SM CYBERZONE 1 G.T. TOWER INTERNATIONAL THE PASEO CENTER IT BUILDING AMKOR TECHNOLOGY PACIFIC INFORMATION TECHNOLOGY CENTER JGC PHILIPPINES BUILDING SDC IT BUILDING ASIAN STAR BUILDING THE PARAGON CORPORATE CENTRE ROBINSONS CYBERPARK ROBINSONS-EQUITABLE TOWER PBCOM TOWER ANSON’S CENTER SUMMIT ONE OFFICE TOWER PHILAMLIFE I.T. BUILDING 6750 AYALA AVE. BLDG. 6780 AYALA 6788 AYALA AVE. BLDG. JG SUMMIT CENTER DELA ROSA E-SERVICES BUILDING SM MAKATI CYBERZONE BUILDING SM MAKATI CYBER ZONE 2 BUILDING GLORIETTA 5 UNIONBANK PLAZA BPI BUENDIA CENTER ALLEGRO IT CENTER EAST CYBER GATE WORLDWIDE CORPORATE CENTER GATEWAY OFFICE TOWER CYBER PARK BUILDING ONE PACIFIC STAR BUILDING PHILAMLIFE IT TOWER NISCOM IT BUILDING INSULAR LIFE BUILDING INSULAR LIFE CORPORATE CENTER CAVITE ECONOMIC ZONE LAGUNA INT’L. INDUSTRIAL PARK LIGHT INDUSTRY & SCIENCE PARK I LIGHT INDUSTRY & SCIENCE PARK II LIGHT INDUSTRY & SCIENCE PARK III TABANGAO SPECIAL ECONOMIC ZONE LAGUNA TECHNOPARK LAGUNA TECHNOPARK ANNEX FIRST CAVITE INDUSTRIAL ESTATE GATEWAY BUSINESS PARK KEPPEL PHILIPPINES MARINE SPECIAL ECONOMIC ZONE GREENFIELD AUTOMOTIVE PARK YTMI REALTY SPECIAL ECONOMIC ZONE LIMA TECHNOLOGY CENTER COCOCHEM AGRO INDUSTRIAL PARK PEOPLE’S TECHNOLOGY COMPLEX SAN LAZARO TOURISM AND BUSINESS PARK GOLDEN MILE BUSINESS PARK FIRST PHILIPPINE INDUSTRIAL PARK TIGERLAND AGRO-INDUSTRIAL ECONOMIC ZONE CARMELRAY INDUSTRIAL PARK CARMELRAY INDUSTRIAL PARK II CALAMBA PREMIERE INTERNATIONAL PARK TOYOTA STA. ROSA SEZ AG&P SPECIAL ECONOMIC ZONE DAIICHI INDUSTRIAL PARK ALLEGIS IT PARK FILINVEST TECHNOLOGY PARK - CALAMBA EASTBAY ARTS, RECREATIONAL AND TOURISM SM CITY BACOOR LAKESIDE EVOZONE ROBINSONS BIG R SUPERCENTER STA. ROSA COMMERCIAL IT PARK ROBINSONS PLACE STA. ROSA SAINT FRANCES CABRINI MEDICAL TOURISM PARK PHILTOWN TECHNOLOGY PARK ROBINSONS PLACE LIPA PAMALICAN ISLAND TOURISM ECOZONE CAMARINES SUR IT PARK BORACAY ECO-VILLAGE RESORT MACTAN ECONOMIC ZONE BIGFOOT IT PARK MACTAN ECONOMIC ZONE II SYNERGIS IT CENTER HDMF-WTCI IT TOWER CEBU IT TOWER MANGO SQUARE CEBU SOUTH ROAD PROPERTIES ARCENAS ESTATE IT BUILDING A. D. GOTHONG IT CENTER JY SQUARE IT CENTER JY SQUARE IT CENTER III CEBU LIGHT INDUSTRIAL PARK LEXMARK PLAZA OAKRIDGE INFORMATION TECHNOLOGY CENTER PHIL. BXT CORP. TOURISM ECONOMIC ZONE PIONEER HOUSE CEBU WEST CEBU INDUSTRIAL PARK NEW CEBU TOWNSHIP MRI ECONOMIC ZONE HVG ARCADE IT PARK INNOVE IT PLAZA ASIATOWN IT PARK FEDERATED IT PARK DAMOSA IT PARK ROBINSONS CYBERGATE CENTER PUEBLO DE ORO IT PARK JASAAN MIS. ORIENTAL ECOZONE BUKIDNON AGRO-RESOURCES EXPORT ZONE DBP IT PLAZA THE BLOCK IT PARK ONE SANPARQ LOPUE'S EAST I. T. CENTER LUXUR PLAZA ITFORMATION CENTRE SMCI IT CENTER CIIF AGRO-INDUSTRIAL PARK RIO TUBA EXPORT PROCESSING ZONE SARANGANI ECONOMIC DEVELOPMENT ZONE SRC ALLAH VALLEY ECONOMIC DEVELOPMENT ZONE SRC CALUMPANG ECONOMIC DEV’T. ZONE FIRST ORIENTAL BUSINESS & INDUSTRIAL PARK NCCC DAVAO IT CENTER LUISA AVENUE SQUARE IT CENTER NCCC DAVAO IT CENTER MANTICAO ECOZONE CORPORATION SEZ MARVIN PLAZA BUILDING DPC PLACE BUILDING MSE CENTER TRAFALGAR PLAZA OCTAGON IT BUILDING VITRO INTERNET DATA CENTER BUILDING WYNSUM CORPORATE PLAZA IT BUILDING TRANSCOM CENTER ORIENT SQUARE IT BUILDING RIVERBANK CENTER ICT BLDG. I RIVERBANK CENTER ICT BLDG II BLUE WAVE MARIKINA UP SCIENCE & TECHNOLOGY PARK (South) UP SCIENCE & TECHNOLOGY PARK (North) FOOD TERMINAL INC. SEZ EMI SPECIAL ECOZONE BATAAN ECONOMIC ZONE SUBIC SHIPYARD PLASTIC PROCESSING CENTER SEZ HERMOSA ECOZONE LEYTE IND’L. DEVELOPMENT ESTATE MEGACENTER IT BUILDING LEYTE INFORMATION COMMUNICATION TECH. PARK JOSE PANGANIBAN SEZ MISIBIS RESORTS AND ESTATES RAPU-RAPU ECOZONE Manufacturing Economic Zones Information Technology Parks / Centers Agro-Industrial Economic Zones Tourism Economic Zones Medical Tourism Parks / Centers 64 118 2 9 2 * Legend: MANILA CEBU

7. 64 118 9 1 2 Manufacturing IT Parks (26) and IT Centers (92) Tourism Ecozones Medical Tourism Park Medical Tourism Center Agro-Industrial Centers

8. 1995 – 2008 Economic Zone Investments : P 1.327 Trillion 449% 24% 144 % 61 %.6% EPZA PEZA 12.7 B 9.6 B ‘86 -’93 1994 52.5 B 65.3 B 159.7 B 96.9 B 155.7 B 156.7 B 80.8 B 38.7 B 31.7 B 50.5 B 67.2 B 83.7 B 133.7 B 154.8 B 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 ECONOMIC ZONE INVESTMENTS 89 160 140 120 100 80 60 40 20 0 57 % 33 % 25 % 9091929394959697989900010203040506 60 % 07 16 % 08

9. 14-YEAR ECONOMIC ZONE INVESTMENTS PEZA 1995 - 2008 P 1.327 T EPZA 1981 –1994 P 33.700 B EPZA 1981 –1994 P 33.700 B 38 Times Bigger

10. 491% Increase COMPARATIVE NUMBER OF LOCATORS 1994 / 2008 19942008 0 400 800 1,200 1,600 331 1,956 2,000

11. LOCATOR INVESTMENTS BY NATIONALITY ( 1995 – 2008 ) 20.28 % Filipino 18.65 % American 3.97 % Korean 5.88 % Dutch 3.74 % British 3.20 % Singaporean 2.38 % British Cayman Islands 1.14 % British Virgin Islands 3.63 % Others 2.24 % Germans 1.08 % Taiwanese 33.81 % Japanese

12. LOCATOR INVESTMENTS BY PRODUCT SECTOR ( 1995 - 2008 ) Information Technology Services Transport and Car Parts Electrical Machinery and Apparatus Chemical and Chemical Products Medical, Precision and Optical Instruments Rubber and Plastic Products Garments and Textiles Other Manufactures 7.66 % 5.80 % 6.75 % 2.41 % 2.05 % 1.56 % 0.95 % 26.44 % 46.38 % Electronics and Semiconductors

13. In Billion US Dollars 1995 : US $ 4.284 1996 : US $ 6.500 1997 : US $ 10.626 1998 : US $ 13.270 1999 : US $ 15.807 2000 : US $ 20.025 2001 : US $ 19.498 2002 : US $ 22.775 2003 : US $ 27.313 2004 : US $ 30.924 2005 : US $ 32.030 2006 : US $ 36.077 1994 : US $ 2.739 2007 : US $ 40.889 56.4 % 51.7 % 63.5 % 24.9 % 19.1 % 26.7 % - 2.5% 16.8% 19.9% 13.2% 3.6% 12.6% 13.3% 2008 : US $ 40.543 ECOZONE EXPORTS - 0.84%

14. PHILIPPINE MANUFACTURED EXPORTS ( Billion U.S. Dollars ) 19941995199619971998199920002001200220032004 2.7 9.5 4.3 11.5 6.5 12.0 10.6 11.0 13.3 12.8 15.8 15.9 20.0 14.3 19.5 9.1 22.7 8.8 27.2 4.8 30.7 4.8 Economic Zone Manufactured Exports Other Philippine Manufactured Exports 40 35 30 25 20 15 10 5 0 22% 78% 27% 73% 35% 65% 49% 51% 49% 50% 58% 42% 68% 32% 72% 28% 85% 15% 86% 14% 12.2 15.8 18.5 21.6 26.1 31.7 34.3 28.6 31.5 32.0 35.5 2005 31.6 5.3 86% 14% 36.9 2006 35.1 6.0 85% 15% 41.1 2007 36.9 5.9 86% 14% 42.8 45

15. 1995 1997 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 121,823 152,250 183,709 219,791 247,076 91,860 278,407 289,548 328,384 362,851 406,752 451,279 545,025 1994 2007593,108 2008 608,387 ECOZONE DIRECT EMPLOYMENT 2.58 %

16. PEZA grants incentives to: Export, I.T., Medical Tourism, and Agro- Industrial Enterprises Logistics Enterprises Facilities / Utilities Enterprises Developers of economic zones which includes Industrial Estates, Export Processing Zones, I.T. Parks and Buildings, Tourism Zones, Medical Tourism Parks and Buildings, Retirement Zones, and Agro-Industrial Zones

17. Income Tax Holiday (ITH) or Exemption from Corporate Income Tax for four years, extendable to a maximum of eight years; After the ITH period, payment of the special 5% Tax on Gross Income, in lieu of all national and local taxes; Exemption from duties and taxes on imported capital equipment, spare parts, supplies, and raw materials; Domestic sales allowance of up to 30% of total sales; Exemption from export taxes, wharfage dues, imposts and fees; Additional deduction of 50% of the total cost of manpower training when the company is in the special 5% gross income tax regime; Zero Value Added Tax (VAT) Rate on local purchases to include telecommunications, power, and water bills; VERY COMPETITIVE INCENTIVES for LOCATORS

18. Exemption from payment of real property tax on land; Exemption from payment of local government fees such as Mayor’s Permit, Business Permit, Permit on the Exercise of Profession/Occupation/Calling, Health Certificate Fee, Sanitary Inspection Fee, and Garbage Fee; Simplified import and export procedures; Employment of foreign nationals; Special visa for foreign investors and immediate family members; Other incentives under Executive Order 226 (Omnibus Investment Code of 1987), as may be determined by the PEZA Board. VERY COMPETITIVE INCENTIVES for LOCATORS

19. TOP ECONOMIC ZONE INVESTORS TI (Philippines), Inc. Electronics American Amkor Technology Electronics American Intel Technology Electronics American Fujitsu Computer Electronics Japanese NXP Semiconductors Electronics Dutch Sunpower Philippines Solar Cells Brit. Cayman Toshiba Information Electronics Japanese Epson Precision Electronics Japanese Tsuneishi Heavy Ind Shipbuilding Japanese Integrated Micro Electronics British Hitachi Global Storage Electronics Dutch Toyota Autoparts Automotive Japanese Coral Bay Nickel Corp. Minerals Japanese

20. TOP ECONOMIC ZONE INVESTORS TDK Fujitsu Phils. Electronics Japanese Lufthansa Technik Air Transport German Samsung Electro-Mech Electronics Korean Ibiden Philippines Electronics Japanese Continental Temic Electronics German Convergys IT American Rohm Electronics Electronics Japanese Terumo (Philippines) Med. Instruments Japanese Lexmark Electronics Swiss Pilipinas Kao, Inc. Coco products Japanese JP Morgan Chase Bank IT American Taiyo Yuden Electronics Japanese Panasonic Comm. Electronics Dutch

21. TOP ECONOMIC ZONE INVESTORS Ford Motor Company Automotive American Teletech Customer Care I.T. American Cypress Manufacturing Electronics American Mitsumi Philippines Electronics Japanese Hoya Glass Disk Electronics Singaporean Nidec Philippines Electronics Japanese Manticao Nickel Corp. Mineral Filipino Analog Devices Electronics Dutch Nidec Precision Electronics Japanese eTelecare Global IT Filipino Takata (Philippines) Automotive Japanese Samsung Electronics Electronics Korean

22. ADVANTAGES OF LOCATING IN PEZA ECONOMIC ZONES

23. World-class, environment friendly Fully secured area perimeter Adequate, clean and uninterrupted power supply Adequate water supply State-of-the-art telecommunications facilities Ready-to-occupy standard factory buildings Waste water treatment facilities Presence of Banks, Fire Fighting Facilities, Sports Facilities PEZA ECONOMIC ZONES

24. PEZA recognizes Just-in-time deliveries Reduction of cost are musts for exports to be competitive

25. FAST TURNAROUND ESPECIALLY FOR ELECTRONICS 96 HOURS OR 4 DAYS TO COMPLETE THE PRODUCTION CYCLE: DAY 1 Japanese or Asian company sends raw materials to the Philippines. Raw materials arrive in the Philippines on the same day. Cleared by Customs on the same day. Received by the Economic Zone Company on the same day. DAY 2 - DAY 3 Products are manufactured. DAY 4 Finished products brought to the Port. Cleared by Customs on the same day. Shipped to Japan or Asian country on the same day. Arrive in Japan or Asian country on the same day.

26. AS A CONSEQUENCE: Most companies EARN PROFIT even on their first year of operation. Most companies have been EXPANDING their operations.

27. Building and Occupancy Permits are issued by PEZA. Import and Export Permits are issued by PEZA. Special multiple-entry non-immigrant visa processed in PEZA. Harmonized customs processes because of PEZA-BOC MOA. Automated Import & Export Procedures (Paperless Transactions). Environment Clearance made easy because of PEZA-DENR MOA. Exemption from Local Government Business Permits for companies inside PEZA. Registration requirements simplified, registration forms made uncomplicated, approval made easy. If a company files its application 1 day before a Board Meeting, its application will be included in the agenda for approval. The PEZA Board meets 2 times a month. PEZA IS A ONE-STOP SHOP

28. At the zones, PEZA provides 24 hours a day, 7 days a week of continuous service to locator companies. The Director General herself and other PEZA officials are on call 24 hours a day, 7 days a week. PEZA IS A “NON-STOP SHOP”

29. NO GRAFT & CORRUPTION PEZA’s TOTAL COMMITMENT TO INVESTORS

30. NO RED TAPE ONLY RED CARPET TREATMENT PEZA’s TOTAL COMMITMENT TO INVESTORS

31. OTHER PEZA ECOZONE PROGRAMS

32. INFORMATION TECHNOLOGY PROGRAM

33. TOURISM ECONOMIC ZONES

34. MEDICAL TOURISM ECONOMIC ZONES

35. RETIREMENT ECONOMIC ZONES

36. AGRO-INDUSTRIAL ECONOMIC ZONES

37. CREATING CREATING OPPORTUNITIES OPPORTUNITIES FOR FOR FILIPINOS FILIPINOS IN THE IN THE COUNTRYSIDE COUNTRYSIDE