Pasay City — The Philippine Economic Zone Authority (PEZA) cheers the proclamation of Victoria Industrial Park as President Ferdinand R. Marcos Jr. signed Proclamation No. 623 last 04 July 2024 designating a 29.77-hectare property in Barangay Baculong, Victoria, Tarlac as a special economic zone.

“This is a major milestone for our push to see the first pharmaceutical ecozone operating within this administration, and ultimately, for the country’s overall pharmaceutical industry. The establishment of the Victoria Industrial Park marks a crucial step in our broader strategy to strengthen and expand the pharmaceutical sector within the country and make medicines affordable and accessible, in line with the instruction of the President and the efforts of the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA),” said PEZA Director General Tereso O. Panga.

Pharma zones

Aligned with the Philippine Development Plan 2023-2028, the establishment of pharma zones heeds the call of the President to streamline the drug application process, making it more accessible and efficient for stakeholders, encouraging more local producers to boost their R&D and manufacturing capabilities and ultimately lower drug costs for the general public.

These zones are expected to significantly boost the Philippines’ pharmaceutical industry by attracting substantial investments, advancing technological capabilities, and increasing local production and research.

“We are optimistic that this will be the start, as we intensify our initiatives on this to achieve our goal of making the Philippines a global leader in pharmaceutical manufacturing,” stated the PEZA Chief. 

The Victoria Industrial Park is seen to accommodate players in the pharmaceutical industry, diversify the pharma and medical activities in the country, and encourage the creation of other pharma zones nationwide. FDA Director-General Samuel A. Zacate already expressed the agency’s intentions to put up an FDA laboratory in Tarlac.

In addition to this, PEZA-registered First Bulacan Business Park (FBBP), which was proclaimed in 2021, is also seen to host medical R&D for the manufacturing of innovative, over-the-counter and generic drug products, medical instruments/equipment, and pharma cold chain. FBBP is adjacent to the First Bulacan Industrial City (FBIC) or the Pharma City of the North, which is home to eight (8) pharma-related firms including Lloyd Laboratories, Pascual Laboratories, Lumar Pharmaceutical, Cargill Phils. and Cosmetique Asia.

As of December 2023, PEZA hosts 27 companies engaged in pharmaceutical and medical device manufacturing, including prominent names such as Terumo (Philippines) Corporation, Arkray Industry, Inc., Royale Life Pharma Inc., JMS Healthcare PHL, Inc., Philipcare Medical Manufacturing Inc., Kaneko Medical Philippine Inc., Merck Business Solutions Asia Inc., and Cargill Oil Mills Philippines, Inc. These companies have collectively generated PhP 25.525 billion in investments and created over 19,000 direct jobs.

Consequently, PEZA is home to 19 companies located in Tarlac, generating US$161.067 million in exports and creating more than 18,000 direct jobs. Meanwhile, Bulacan is home to 7 PEZA-registered enterprises, contributing US$89.973 million in exports and creating more than 11,000 direct jobs.

Partnership with FDA

In cooperation with the OSAPIEA, PEZA is in talks with the FDA to develop guidelines for registering pharmaceutical ecozones and to improve the regulatory and facilitation environment for PEZA-registered business enterprises that will engage in local manufacturing of pharmaceutical products and medical devices.

The PEZA guidelines will govern the country’s establishment and registration of pharma zones. This will provide the qualifications (including minimum infrastructure requirements) and processes for potential pharma zone developers/operators. Likewise, it will outline registrable activities that locator companies may undertake within a pharma zone for them to avail of the fiscal and non-fiscal incentives under the government’s current incentive regime.

DG Panga explained, “We are currently farming out the rough draft of the guidelines to relevant national government agencies and private experts and stakeholders, particularly pharmaceutical and medical device associations and manufacturing companies. The finalization of the guidelines will commence as soon as we consolidate and harmonize their comments/inputs on the existing version thereof.”

PEZA is also working with the FDA to revisit the decade-old MOA between the two agencies. The revised MOA will affirm the FDA’s commitment to the prompt facilitation of PEZA locators’ applications for permits, licenses, and certifications to be able to attract more pharma-related investments, particularly in the manufacturing of drugs, active pharmaceutical ingredients (APIs), and medical devices and equipment, including the conduct of clinical trials and research and development activities.

Recent developments

PEZA is engaging in industry dialogues to understand which sectors the country should attract to achieve self-sufficiency in pharmaceutical product manufacturing. These dialogues involve the Philippine Chamber of the Pharmaceutical Industry Inc. (PCPI), the Pharmaceutical and Healthcare Association of the Philippines (PHAP), and private companies such as Royal Cargo which is the first Good Distribution Practices (GDP)-certified Logistics Service Provider in the Philippines; and Royale Life Pharma, which is the first PEZA-registered pharmaceutical product manufacturer in PEZA zones.

A joint briefing was also conducted on 01 July 2024 by the Anti-Red Tape Authority (ARTA), Department of Health (DOH), FDA, and PEZA to discuss initiatives concerning medical drug and device manufacturers and provide a platform to discuss advancements in the sector.

“The proper foundations are being set and laid using a whole-of-government and industry approach to create and sustain a thriving business environment for pharmaceutical manufacturing in the Philippines. As investors come in using the Philippines as a manufacturing hub in South East Asia for dependable medicines, coupled with the application of innovative and cutting-edge solutions, I am sure that higher quality of medicines and medical supplies will be developed for the whole region. And with the Philippines as a hub using PEZA’s Pharma Ecozone model, it will increase the availability and lower the price of medicines for the Filipino people,” according to Director General Panga.

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Source: “PEZA eyes Tarlac and Bulacan as locations for first Pharma zones“, PEZA, July 17, 2024, https://www.peza.gov.ph/press-releases/peza-eyes-tarlac-and-bulacan-locations-first-pharma-zones

Over the last couple of decades, Colliers has seen the aggressive development of office and residential hubs outside Metro Manila.

As I highlighted in my previous columns, this growth bodes well for the Philippine economy, as more economic centers will rise and thrive. In our view, this means that progress will spread outside capital region. It is also an indication that property sector growth is more broad-based and not focused on a single location.

This is beneficial for the long-term growth of the real estate sector and the entire economy. More urban centers can contribute to progress and every region can maximize its full potential to create a more diverse expansion of the domestic economy.

Colliers Philippines believes that, as developers move towards regional centers like central Luzon, investors and end-users will have more options to choose from: condominiums, house and lot or lot only projects. In our view, this is a win-win for property firms, as they can capture a greater fraction of investors and even broaden their market, especially those expanding up north including Bulacan.

This pace of progress has been and will continue to be facilitated by an improving infrastructure and overall local government competitiveness, as measured by economic dynamism, innovation, quality of manpower and resiliency, among other factors.

Major property firms are expanding their options, as they see a strong revival of the country’s property market post-Covid 19 (Corona virus disease 2019). We are starting to see this revival in office, residential, retail, leisure, or industrial sector.

In our view, this decentralization thrust is likely to be supported by the continued implementation of public works projects outside Metro Manila. These include airports, mass rapid transits, as well as cargo and passenger railways.

The country’s infrastructure push should guide the expansion plans of developers across the archipelago. The current administration has committed to invest more on public infrastructure, pledging to build, better, more. We see central Luzon, including Bulacan, being a major beneficiary of the national government’s commitment to allot five to six percent of the country’s GDP (gross domestic product) on infrastructure.

Colliers sees central Luzon as among the regions with vast potential in terms of property development. The region is among the fastest growing hubs in the country, contributing more than a tenth to the country’s economic output and growing by about 8.1 percent in 2022, faster than the Philippine GDP growth that year.

Over the last couple of decades, Colliers has seen the aggressive development of office and residential hubs outside Metro Manila.

As I highlighted in my previous columns, this growth bodes well for the Philippine economy, as more economic centers will rise and thrive. In our view, this means that progress will spread outside capital region. It is also an indication that property sector growth is more broad-based and not focused on a single location.

This is beneficial for the long-term growth of the real estate sector and the entire economy. More urban centers can contribute to progress and every region can maximize its full potential to create a more diverse expansion of the domestic economy.

Colliers Philippines believes that, as developers move towards regional centers like central Luzon, investors and end-users will have more options to choose from: condominiums, house and lot or lot only projects. In our view, this is a win-win for property firms, as they can capture a greater fraction of investors and even broaden their market, especially those expanding up north including Bulacan.

This pace of progress has been and will continue to be facilitated by an improving infrastructure and overall local government competitiveness, as measured by economic dynamism, innovation, quality of manpower and resiliency, among other factors.

Major property firms are expanding their options, as they see a strong revival of the country’s property market post-Covid 19 (Corona virus disease 2019). We are starting to see this revival in office, residential, retail, leisure, or industrial sector.

Property investment goes north

Metro Manila, of course, remains a major investment destination. The National Capital Region, after all, contributes nearly a third to the Philippines’ annual economic output. But developers are setting their sights on other urban areas—looking for potential development hubs with vast growth prospects.In our view, this decentralization thrust is likely to be supported by the continued implementation of public works projects outside Metro Manila. These include airports, mass rapid transits, as well as cargo and passenger railways.

The country’s infrastructure push should guide the expansion plans of developers across the archipelago. The current administration has committed to invest more on public infrastructure, pledging to build, better, more. We see central Luzon, including Bulacan, being a major beneficiary of the national government’s commitment to allot five to six percent of the country’s GDP (gross domestic product) on infrastructure.

Colliers sees central Luzon as among the regions with vast potential in terms of property development. The region is among the fastest growing hubs in the country, contributing more than a tenth to the country’s economic output and growing by about 8.1 percent in 2022, faster than the Philippine GDP growth that year.

The region is one of the Philippines’ major industrial hubs, has skilled workforce and an affluent and continuously growing consumer base. It is one of the major sources of Filipino overseas workers and a top recipient of remittances, making it an attractive destination for property investors and end-users.

With national developers expanding outside Metro Manila, it is only natural for them to zero in on nearby regions, including Central Luzon and dive deeper into opportunities in key property destinations like Bulacan.

Bulacan’s meteoric rise

Residential developers and investors are starting to notice Bulacan’s potential as the next major property investment destination. Major infrastructure projects, including MRT-7 and the New Manila International Airport, are likely to redefine the Bulacan residential landscape.

Other major public works projects that should have a positive impact on the Bulacan property market include the North Luzon commuter railway, unified grand central station and arterial bypass toll road project.

Colliers sees more aggressive landbanking initiatives in Bulacan in the future as developers take advantage of the province’s major public works projects due completion in the next two to four years. This should set the stage for greater acquisition of parcels of developable land in the province and the eventual launch and development of more masterplanned communities.

Unlocking limitless opportunities

With a thriving property landscape post-Covid, Colliers projects the development of offices, malls, hotels and industrial parks outside of the capital region, including Bulacan. We see local government units competing for more investments. The competitive landscape should result in a more diverse Philippine property market, benefiting both investors and end-users.

Colliers believes Bulacan is ripe and ready for more property projects. This should excite both investors and property firms—national and even local or homegrown ones.

Exciting times, indeed, are ahead for the Bulacan property market. The opportunities are limitless.

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Source: “Bulacan’s property investment potential grows stronger”, The Inquirer, October 21, 2023, https://business.inquirer.net/426339/bulacans-property-investment-potential-grows-stronger

1. Strategic Location

• “Gateway to North”; links Metro Manila to Central and Northern Luzon
• About 27.5 kilometers from Metro Manila
• Accessible to major airports (Ninoy Aquino International Airport, New Manila International Airport and Clark International Airport)
• Accessible to major seaports (Subic Seaport, Port of Manila, Dingalan Seaport)

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2. Highly Skilled Manpower

• Bulakenyo’s tradition of meticulous craftsmanship and industry is world-renowned
• Universities, colleges, and technical-vocational schools in the province produce competent graduates

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3. Sustainable Natural Resources

• Vast production areas that produced agricultural commodities for food security and economic growth
• Rich in mineral and non-mineral reserves; iron deposits contain 62% to 75% iron, which is higher than the international standard grade of 67%, and 32 out of the 60 varieties of marble in the country can be found in Bulacan

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4. Well-Developed Infrastructure Support

• Access to and within Bulacan is made possible by an extensive network of national and provincial roads

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5. Ease of Doing Business

• Institutes an investor-friendly environment by creating the proper settings to hasten increased economic activity within its capabilities

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6. Strong Public-Private Partnership

• Recognizes expertise and capability of the private sector in fostering sustainable economic growth in the province
• Consults with the private sector regularly; involve the business sector in planning the directions of the development of Bulacan

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7. Favorable Peace and Order Situation

• Bulacan is relatively a peaceful province. Order and discipline are the norms.

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8. Attractive Incentives

• Grants incentives to investment projects that are included in the investment priority areas
• Incentives complement the national government incentives and privileges granted by the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA)

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Source: “8 Reasons for Investing in Bulacan“, Province of Bulacan, October 20, 2022, https://bulacan.gov.ph/8-reasons-for-investing-in-bulacan/

Real estate developer Philstar Marketing and Development Inc. (PMDI) is putting up the country’s first medical research and development (R&D) and pharmaceutical park at a cost of over P570 million.

The Philippine Economic Zone Authority (PEZA) said PMDI has proposed to develop the First Bulacan Business Park (FBBP) in Malolos town.

PEZA deputy director general Tereso Panga said PMDI signed the registration agreement with the PEZA last Jan.27.President Duterte issued Proclamation 1070 granting FBBP the status of special economic zone last Jan.11.

“We are grateful to the President for the proclamation of the FBBP which is the first pharmaceutical ecozone registered under PEZA,” PEZA director general Charito Plaza said.

With a project cost of P570.59 million, Panga said the FBBP is envisioned to be a premier ecozone that would house medical R&D through a partnership with the academe and research institutions, as well as the manufacture of innovative, over-the-counter and generic drug products, medical instruments/equipment and pharma cold chain.

“FBBP is looking at the pharma parks of India, Thailand and Singapore as its models for the Philippines,” he said.

In addition, the FBBP would adopt smart technologies and a renewable source of power to address the requirements of locator companies.

“In support of the business continuity objective and the government’s mandate under Administrative Order 18 to spur development away from NCR and in favor of the countryside, FBBP in Malolos – being the capital city and educational center of Bulacan province, and given its close proximity to the proposed Bulacan International Airport and MRT (Metro Rail Transit) stations in Guiguinto and Malolos – can provide the redundant site or expansion area for at least 14 global pharma companies already in the Philippines, which are mostly located in Metro Manila,” Panga said.

PMDI is also the developer of the adjacent First Bulacan Industrial City (FBIC) which was established in the 1990s to serve as a pharma park.

FBIC hosts 16 pharma-related companies which include Lloyd Laboratories, Pascual Laboratories, Cargill Phils. and Cosmetique Asia.

As the coronavirus disease 2019 pandemic has reaffirmed the need for investment in healthcare, pharmaceuticals, and biotechnology, Panga said PEZA, in addition to the existing medical tourism guidelines, is looking to explore adding a new type of ecozone, the Biomedical Innovative Center, to host leading biotechnology companies and Philippine startups including pharmaceuticals.

“This will be in the mold of Kobe Biomedical Innovation Cluster, which offers a platform for networking businesses and institutes in their pursuit of innovative collaboration and groundbreaking discoveries in a wide spectrum of medical, pharmaceutical, and biological fields, including medical device and regenerative medical fields,” Panga said.

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Source: “First pharma ecozone to rise in Bulacan”, The Philippine Star, February 4, 2021, https://www.philstar.com/business/2021/02/04/2075127/first-pharma-ecozone-rise-bulacan

The 259,069-square-meter First Bulacan Business Park will house pharmaceutical and biotechnology companies

The Philippines’ first pharmaceutical economic zone is set to rise in Malolos, Bulacan, poised to spur medical research, manufacturing, and tourism in the country.

The Philippine Economic Zone Authority (PEZA) granted Philstar Marketing Development its registration as a developer and operator of First Bulacan Business Park (FBBP), the first mixed-use ecozone in the province.

FBBP is envisioned to host pharmaceutical and IT support companies, as well as export-oriented industries within its 259,069-square-meter space.

President Rodrigo Duterte earlier issued Proclamation No. 1070 granting FBBP the status of a “special economic zone.”

The ecozone, which is near the proposed Bulacan international airport, is also planned to be powered by renewable energy.

“The proclamation of FBBP will surely spur pharma-related research, manufacturing, and tourism in the country especially with the COVID-19 global pandemic,” said PEZA Director-General Charito Plaza.

Plaza added that the pandemic has reaffirmed the need for investments in health care and pharmaceuticals.

With this need, PEZA is considering to add new types of ecozones called “biomedical innovative centers” which would host biotechnology companies and Philippine startups.

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Source: “Philippines’ first pharma ecozone to rise in Bulacan“, Rappler, February 2, 2021, https://www.rappler.com/business/philippines-first-pharmaceutical-economic-zone-rise-bulacan/

Bulacan is growing as an attractive option for real estate investments. The demand for homes is fueled by economic growth and the infrastructure projects that will benefit the province.

The province of Bulacan is increasingly becoming a preferred destination for real estate investments, as people and businesses continue to move away from congested Metro Manila and into nearby areas.

Bulacan enjoys close proximity to Metro Manila and is described as the Gateway of the North because it is the first province that meets travelers heading down the North Luzon Expressway, or NLEX. It is surrounded by the provinces of Pampanga to the west, Nueva Ecija to the north, Aurora and Quezon to the east, and Rizal to the south.

The province, which is home to 21 municipalities and three component cities, has the fastest-growing economy in Central Luzon. Its population has also grown significantly over the previous decade, with 3,708,890 people, according to the 2020 census. Headlining Bulacan’s economic growth in the real estate sector are the municipality of Bulakan, the city of San Jose del Monte, and the city of Malolos.

Headlining Bulacan’s economic growth in the real estate sector is the municipality of Bulakan, the city of San Jose del Monte, and the city of Malolos.

Bulakan

Bulakan, the province’s namesake, is one of Bulacan’s first-class municipalities. Located in the province’s southwestern part, it is one of the oldest towns in the Philippines, with a population of 76,565 people, according to the 2015 census. Before it became Bulacan’s first capital, Bulakan was the capital of Provincia de la Pampanga.

Its proximity to Metro Manila, at just 35 kilometers away from the National Capital Region, has made Bulakan a bustling hub of economic activity, despite its status as a municipality.

Bulakan has several major infrastructure projects in the works, which has made the municipality’s real estate market more attractive. Camella, the Philippines’ largest homebuilder, is one of the major real estate developers in the town with a 13.2-hectare project. Another developer in Bulakan is Rockavilla Realty and Development, with a 3-hectare residential project in Brgy. San Nicolas.

San Jose del Monte

San Jose Del Monte, which is located just north of Caloocan and Quezon City, is a suburban city with a population of 574,089 people, according to the 2015 census. It is the 19th most populated city in the Philippines, with the distinction attributed to both natural growth and inland migration.

The National Housing Authority determined San Jose del Monte as a resettlement site for informal settlers from Metro Manila, particularly Manila, Makati, Taguig, and Quezon City. The city’s Sapang Palay Resettlement Project is one of the biggest resettlement areas in the Philippines; with a population of 250,000 people, is as much as a medium-sized city and three times more than the municipality of Bulakan.

Meanwhile, the city’s demand for mid-end and high-end real estate markets makes San Jose del Monte a hot spot for housing development. Homebuilders are drawn to its distinct blend of an urban environment with ease of access, resulting in investments in the growing metropolis. Major developers in the city include Ayala Land, which injected an investment of Php 6.8 billion into San Jose del Monte to build the mixed-use project Altaraza Town Center, and Camella Homes by Vista Land, which has already put up three subdivisions in the city.

Malolos

Malolos is the capital of the province of Bulacan. It is a third-class city composed of 51 barangays, and is very accessible from the National Capital Region as it is located just about 45 kilometers away from Manila.

The city has deep historical roots and features an archaic ambiance, but it is quickly becoming a highly urbanized city. The North-South Commuter Railway Project contributes to this development, which will connect Manila to Clark, Pampanga. Malolos is serving as the project’s temporary endpoint, benefiting the city.

Malolos has started attracting investments from major real estate developers, including Avida Land and Asian Land. Another developer operating in the city is Camella with the 300-hectare Camella Provence, a residential development that is one of the most coveted communities in Malolos.

Bulacan Real Estate on the Rise with Infrastructure

More business investments, including into the real estate sector, are in the cards for Bulacan over the next several years. The demand for housing units in the province is expected to continue rising, pushing property developers to expand their affordable housing projects in Bulacan to take advantage of the bullish market and its high purchasing power.

The close proximity to Metro Manila and the low costs of land have attracted investors to Bulacan, but another significant factor is the aggressive infrastructure development around and within the province. Stage 3 of the Metro Manila Skyway System will first extend it from Gil Puyat in Makati to Balintawak in Quezon City and then connect the north end to the NLEX. Once completed, the Skyway will further open Bulacan to future developments by providing easy and fast access to the province, decreasing costs for businesses looking to operate there.

The Metro Manila Rail Transit System Line 7 is another important project for Bulacan. The 22-kilometer construction will add 14 stations from North Avenue in Quezon City to San Jose del Monte, which will provide additional convenience for the residents of Bulacan who commute daily into Metro Manila. MRT-7 is set to be completed by 2022 and is expected to further drive up the province’s real estate sector, making it an even more viable home location option for the working class. As of 2022, MRT-7 is already 60% completed.

The proposed Bulacan International Airport, which will span an area of 2,500 hectares within the municipality of Bulakan, will further increase accessibility to the province. An MRT Loop with an airport express is also proposed to connect Metro Manila to the planned aerotropolis, further driving up foot traffic heading towards the province. The public transit will connect Bulakan with EDSA, providing another option for travelers.

Other provinces’ developments include the Bulacan Bulk Water Project and the plan to establish a Techno Hub, making a living in Bulacan even more appealing to potential home buyers.

Notably, most of the infrastructures that will benefit Bulacan, in the long run, are not proposals but rather actual, ongoing projects that are on their way to completion. People living in the province will soon be able to enjoy the convenience and accessibility provided by these projects, and real estate developers are already ramping up their activities to meet the expected demand increase once these infrastructures start coming online.

Bulacan Real Estate Investment: Arrow Pointing Up

Real estate investments in Bulacan have no way to go but up, fueled by the province’s economic growth and with soon-to-be-completed infrastructure projects expected to make a living in Bulacan more convenient and the worth of its properties more lucrative.

Bulacan is proving itself as a preferred option for both homebuyers and investors. Before the real estate demands further balloons, it would be wise to already buy into the blossoming province.

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Source: “Investing in Bulacan Real Estate: What You Need to Know“, Lamudi, January 10, 2019, https://www.lamudi.com.ph/journal/investing-in-bulacan-real-estate-what-you-need-to-know/