DTI bucks creation of new ecozones

The Department of Trade and Industry (DTI) on Wednesday said the government would suspend the creation of new freeport zones. On the sidelines of the Philippine Mid-Year Economic Briefing, Trade Secretary Gregory Domingo told reporters that economic zones under the Philippine Economic Zone Authority (PEZA) are well-managed and are getting favorable feedback from investors.

So putting up new freeports is “not a good idea,” he said, adding that the existing ones are enough to lure in investments.

“Our economic zones are very investor-friendly. [PEZA is] well-run, it has a proven track record,” Domingo said.

“Semiconductor manufacturers and business process outsourcing (BPO) companies locate at PEZA zones,” he added.

Semiconductors and electronics compose the bulk of the country’s exports, while the BPO sector is the country’s biggest employer outside of government.

Latest PEZA data show that its investment approvals in the first seven months of this year reached P68.609 billion, up 57.5 percent year-on-year.

Ecozone exports in the first half rose 39.5 percent to P20.082 billion, while employment went up by about a fifth to 697,187.

Domingo said non-PEZA zones usually have inadequate infrastructure.

Also, investors in non-PEZA zones have to deal with the local governments they are in, which he said is “often times quite difficult.”

“It’s quite cumbersome to do business in non-PEZA zones,” the Trade chief said.

He said the Trade department is putting in place programs that would streamline business registration processes to improve the business environment in areas outside special economic zones.

The DTI and the Department of the Interior and Local Government (DILG) recently signed agreements meant to simplify and harmonize the business permits and licensing system of local governments nationwide. –BEN ARNOLD O. DE VERA, Manila Times