The Philippine Economic Zone Authority (PEZA) said over the weekend it released the guidelines for the registration of pharmaceutical, medical device and other health product ecozones (Pharmazones), along with the administration of incentives for developers, operators and registered business enterprises.
“The release of the guidelines provide clear direction on the establishment of pharma zones in the country. These zones are expected to attract substantial pharma, medical, and healthcare-related investments, advance technology, and increase local production and research—creating numerous jobs and enhancing the country’s export potential—positioning the Philippines as a competitive player in the global pharmaceutical market,” said PEZA director-general Tereso Panga.
Approved by the PEZA board on Feb. 20, 2025, the guidelines align with President Ferdinand Marcos Jr.’s directive to make medicines more accessible and encourage local pharmaceutical R&D and manufacturing to lower drug costs.
Under the guidelines, the minimum land requirement for pharmazone developments is set at 10,000 square meters in Metro Manila and other metropolitan areas, and 50,000 sq. m. outside these areas.
Registered pharmazone developers, operators and RBEs will enjoy fiscal incentives under Title XII of the Tax Code, as amended.
Ecozone developers/operators, utilities and facilities enterprises that allocate 70 percent of their leasable or saleable areas to exporters will be classified as “Activities in Support of Exporters,” granting them the same incentives as an export enterprise.
“As investors establish the Philippines as a manufacturing hub for reliable medicines in Southeast Asia, bringing in cutting-edge technologies, I am confident this will lead to higher-quality medicines, increased availability, and ultimately, lower prices for Filipino consumers,” he said.