Lifting of ecozone ban a ‘big win’ for IT-BPM, real estate

MANILA, Philippines — The country’s largest information technology and business process management (IT-BPM) group welcomed the reopening of Metro Manila to new IT parks, saying the move gives investors greater confidence to expand in the capital region.

In a statement, the IT & Business Process Association of the Philippines (IBPAP) said Administrative Order No. 45, which supersedes the Duterte-era moratorium under AO 18, positions the capital as a key base for the industry’s growth.

READ: Metro Manila reopens door to new ecozones

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“Administrative Order No. 45 gives investors greater confidence that the Philippines can respond to evolving business requirements while preserving our long-term commitment to countryside development,” IBPAP president and CEO Jack Madrid said.

“It strengthens our ability to attract new investments, support business expansion and create more high-quality jobs for Filipinos.”

According to Trade Secretary Cristina Roque, there are already five locators that have lined up with the Philippine Economic Zone Authority (Peza) following the lifting of the moratorium.

These are Arca South 1 of Ayala Land, Parqal of Aseana Holdings, The Yuchengco Center of San Lorenzo Ruiz Investment Holdings and Services, Altaire of MJ Landtrade Development Corp. and One Trium Tower of Triumvariate Development Corp.

“It’s a big win for IT-BPM and also real estate,” Roque said.

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Under AO 45 signed by President Marcos, only applications for new IT parks and IT centers may again be processed by the Peza. The moratorium on other ecozone types, including manufacturing zones, remains in place.

For IBPAP, the policy strikes a balance between reopening Metro Manila to new investments and sustaining AO 18’s objective of encouraging more investments in the provinces.

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“By reopening applications specifically for IT parks and IT centers while maintaining the moratorium on other economic zone categories, AO No. 45 achieves a practical balance between enabling investment and supporting regional development,” the group said.

IBPAP also emphasized that Metro Manila remains the country’s primary hub for digital talent and global delivery operations.

According to property consultancy Colliers Philippines, about 70 percent of IT-BPM office transactions in the first quarter of 2026 were recorded in Metro Manila, with the remaining 30 percent taking place in the provinces.

As of end-2025, the Philippine IT-BPM industry employed about 1.9 million workers and generated $40 billion in revenues.

Under a recalibrated industry road map, IBPAP expects the sector to generate $42.3 billion in revenues and employ 1.96 million workers by the end of 2026. For 2028, however, it has lowered its targets to $43.3 billion to $50.5 billion in revenues and 1.85 million to 2.14 million workers.

The revised targets reflect the advancement of artificial intelligence, slower investment decisions and intensifying competition from other outsourcing destinations, including South Africa, Egypt, Poland, Colombia, Costa Rica and Vietnam. INQ