President Ferdinand Marcos Jr. has lifted a six-year moratorium on the establishment of new information technology (IT) economic zones within Metro Manila, reversing a key policy that had constrained the nation's burgeoning digital services sector. The move, enacted through Administrative Order No. 45, takes immediate effect and specifically exempts IT centers and parks from a broader ban on new economic zones in the capital region.
This pivotal decision is poised to unlock substantial investment opportunities, reinforcing Metro Manila’s established role as a preeminent hub for digital services and addressing persistent demands from the country's robust information technology and business process management (IT-BPM) industry. The policy shift, which has been met with widespread acclaim from both government economic managers and industry stakeholders, is designed to inject new dynamism into the Philippine economy by facilitating the expansion of a vital sector.
Administrative Order No. 45 specifically carves out IT centers and IT parks from the scope of Administrative Order No. 18, which was issued in 2019 by then-President Rodrigo Duterte. The earlier directive had imposed a moratorium on all new economic zones in the National Capital Region (NCR), a policy intended to encourage businesses to establish operations outside the congested metropolitan areas and spur growth in provincial centers.
With the lifting of this moratorium for the IT-BPM sector, the Philippine Economic Zone Authority (PEZA) is now mandated to resume accepting, processing, and evaluating applications for new IT parks and centers in the capital. This legislative change clears the path for a wave of previously stalled development and investment in the country’s primary economic engine.
The decision has garnered strong approval across the economic landscape. Trade Secretary Ma. Cristina Roque hailed the move as a "resounding victory for the IT-BPM sector," emphasizing its potential to strengthen the Philippines' standing as a global destination for digital services. Both the Department of Trade and Industry (DTI) and the Department of Finance (DOF) had previously advocated for the lifting of the moratorium, recognizing the strategic importance of remaining competitive in the global digital economy.
The IT-BPM industry has consistently served as a cornerstone of the Philippine economy, reliably contributing to job creation and foreign exchange earnings. For years, however, the moratorium on new ecozones in Metro Manila presented a significant hurdle to its continued expansion. Many existing IT-BPM companies and potential new investors found their growth plans hampered by the inability to secure PEZA accreditation for new sites within the capital.
Metro Manila is widely considered the optimal location for IT-BPM operations due to its dense concentration of talent, existing advanced telecommunications infrastructure, and direct access to international gateways. The city boasts a large, English-proficient workforce, a critical resource for a sector that relies heavily on global communication and service delivery. While the 2019 policy did push some developments to provincial centers, it also led to a noticeable slowdown in new office space demand for the IT-BPM sector in the NCR.
President Marcos Jr.’s strategic rationale for this reversal is primarily rooted in addressing the persistent demand from investors who view Metro Manila as indispensable for their operational success. Secretary Roque further underscored the economic impetus, stating that the policy change would "unlock significant real estate opportunities" and "revitalize the ecosystem that drives our country's digital economy." This move signals a clear commitment from the administration to nurture one of the nation’s most dynamic and resilient industries.
The property market in Metro Manila is anticipated to experience a considerable boost from this policy change. Office vacancy rates in the NCR, which had seen some recent improvements, could further decline as IT-BPM firms, major occupants of prime office spaces, reignite their expansion plans. Projects in key business districts such as Arca South in Taguig, Bridgetowne in Ortigas, and a Yuchengco-backed innovation hub in Makati, among others, that were previously on hold, are now expected to move forward with renewed vigor. This surge in development will not only generate construction and related jobs but also create a significant ripple effect across various sectors.
Beyond real estate, the broader implications for employment are substantial. The IT-BPM industry is a massive employer, and with new ecozones opening up, the potential for thousands of new jobs, particularly for young, skilled Filipinos, is immense. This aligns directly with the Marcos administration's overarching goal of accelerating economic growth and poverty reduction by fostering an environment conducive to IT-BPM expansion.
It is important to note that the lifting of the moratorium applies specifically to IT-BPM ecozones. Other types of economic zones in Metro Manila remain subject to the existing ban under Administrative Order No. 18. This reflects a calibrated approach to national development, indicating that the government is not entirely abandoning the principle of promoting regional growth but is making a strategic exception for a sector where Metro Manila offers unique and indispensable advantages that provincial centers cannot yet fully replicate.
The global landscape for digital services is intensely competitive, and this policy adjustment is seen as crucial for the Philippines to maintain and enhance its position. Investors consistently prioritize stability, clear regulatory frameworks, and access to optimal operating environments. By removing a major impediment to growth in its primary IT-BPM hub, the Philippines sends a strong signal of its readiness to welcome and facilitate foreign direct investment in the technology sector, reaffirming its commitment to key economic drivers