THE Philippine Economic Zone Authority (PEZA) said pharmaceutical economic zones (pharma zones) must be built on sites with an area of at least 10,000 square meters (sq.m.) in major cities.

According to PEZA Board Resolution No. 25-050, the minimum size applies to pharma the minimum contiguous land area for pharma zones in the National Capital Region (NCR) and other metropolitan areas.

The minimum land requirement for pharma zones outside the NCR and other metropolitan areas is 50,000 sq.m.

“The release of the guidelines provides clear direction on the establishment of pharma zones,” PEZA Director General Tereso O. Panga said in a Facebook post on Sunday.

“These zones are expected to attract substantial pharma, medical, and healthcare-related investments, advanced 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,” he added.

According to the investment promotion agency, the board approved the guidelines in a meeting late last month.

“The move was in response to the directives of President Ferdinand R. Marcos, Jr. to make medicines more accessible to the Filipino people and to encourage more local producers to boost their R&D and manufacturing capabilities and lower drug costs for the general public,” PEZA said.

Aside from the land area requirements, the guidelines also outlined the preferred investments that can be registered with PEZA to avail of incentives on offer for pharma zones.

These activities include research, development, and manufacturing of medical drugs and devices, active ingredients, biologicals, vaccines, in vitro diagnostic reagents, and radiation-emitting devices or equipment.

“This shall include activities related to raw materials, packaging materials, and other pharmaceuticals, medical devices, or health products as may be certified by the FDA (Food and Drug Administration),” according to the resolution.

It added that the “pharma zone registered business enterprise (RBE) shall efficiently operate and contribute to the development of the preferred area in particular and of the national economy in general.”

Under Title XIII of the Tax Code, fiscal incentives that pharma zone RBEs are eligible for include income tax holidays, special corporate income tax, and enhanced deductions regimes, among others.

Aside from the fiscal incentives, the RBEs can also employ foreign nationals in executive, supervisory, or advisory positions, with PEZA visas allowing multiple entry issued to non-resident foreign nationals and their qualified dependents.

They can also enjoy streamlined processing of applications for environmental compliance certificates and applications for permits, licenses, or certifications, and simplified customs procedures.

However, the resolution clarified that partially developed or existing economic zones, facilities, and existing RBEs are not entitled to the incentives. — Justine Irish D. Tabile