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BusinessWorld

Marcos exempts new IT parks from ecozone moratorium in NCR

PRESIDENT Ferdinand R. Marcos, Jr. has exempted information technology (IT) parks and centers in Metro Manila from the ban on new Philippine Economic Zone Authority (PEZA) economic zones (ecozone) to encourage further expansion in the business process outsourcing (BPO) industry.

Context & Analysis

The decision to carve out Metro Manila from the broader PEZA ecozone restrictions reflects a pragmatic recalibration of how the government balances urban capacity with sectoral growth. For years, policy makers deliberately funneled new IT and BPO development outside the capital to ease congestion, promote regional equity, and test infrastructure limits in secondary hubs. That strategy yielded measurable expansion in cities across Visayas and Mindanao, but it also exposed structural bottlenecks: uneven power reliability, limited high-speed fiber coverage, and a persistent talent concentration that keeps top graduates anchored to the metropolis. By lifting the moratorium specifically for IT parks, the administration is acknowledging that Metro Manila remains the undisputed center of technical expertise, corporate headquarters, and global client connectivity.

For business owners and investors, this exemption changes the calculus for commercial real estate and workforce planning. Developers can now pursue purpose-built IT campuses within the capital without navigating the previous regulatory dead end, which should accelerate project approvals and attract foreign direct investment in tech infrastructure. Companies looking to scale operations will gain access to a deeper labor pool and established supplier networks, reducing the friction of maintaining satellite offices or subsidizing remote work. Consumers may feel indirect benefits through improved service delivery, as firms with stable local hubs can reinvest in training, automation, and customer experience rather than spending heavily on relocation incentives.

The real test lies in execution. PEZA will likely attach stricter performance metrics to these new parks, particularly around energy efficiency, waste management, and workforce development commitments. Investors should monitor how quickly utility providers upgrade grid capacity and water systems to match the sudden demand, since service interruptions remain a reputational risk for global clients. Meanwhile, the talent pipeline will determine whether growth translates into sustainable productivity or wage inflation that erodes competitive margins. Watch for coordination between PEZA, local government units, and technical and higher education agencies on curriculum alignment, as well as any shifts in zoning and transit planning that could either unlock new corridors or trigger congestion complaints. The exemption is a clear signal that the BPO sector’s role in national growth is being protected, but its long-term resilience will depend on whether infrastructure and human capital can keep pace.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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