Glend Llandtada - Philippines

“This collaborative initiative by Philippine Authorities will have far reaching benefits, not just for foreign and domestic medical device and pharmaceutical manufacturers but for the Filipino people as well.”

Glend Llantada
General Manager
Asia Actual Philippines

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Philippines Unveils Incentives for Medical Device and Pharmaceutical Manufacturers

Published on: March 19th, 2024

Unveiling Pharmaceutical and Medical Device Ecozones

On March 14th, 2024, the Philippines FDA  alongside the Philippine Economic Zone Authority (PEZA) announced an initiative for pharma-dev ecozones that will encourage medical manufacturing in the Philippines (view post). The Pharma-Dev Eco Zones initiative is outlined in the 2023-2028 Philippine Development Plan. Major officials are collaborating to have at least four locations developed within the year. Namely, the Director General of the FDA: Dr. Samuel A. Zacate, Attorney Kristine Joy Diaz – Teston for the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) – a newly created office headed by Frederick D. Go (read the announcement here) – and Director General of the Philippine Economic Zone Authority (PEZA) Tereso Panga.

What is a Pharma-Medical Device Ecozone?

In general, this collaborative initiative by several Philippine Authorities aims to position its own small and medium enterprises for integration with global value chains to foster more growth and competition. In addition, on a domestic level, it is forecasted that the manufacture of common generic drugs in these zones will lead to greater overall supply locally thus reducing the prices of medications.

Pharma-Dev Zones are not just domestically beneficial but are also meant to encourage foreign companies in medical and drug manufacturing to utilize them. Accordingly, the facilities available in these zones have been carefully planned for medical device and drug manufacturing companies, R&D, Clinical Testing and Trials. Expect well-equipped facilities and a cold chain guarantee.

Pharma-Medical Device Ecozone Location

Per an article published by Joyce Ann L. Rocamora at the Philippine News Agency, who attended a Saturday News Forum in Quezon City, PEZA Director General Tereso Panga asserted that there are four locations currently under consideration to be pharma-medical device ecozones: Laguna, Bulacan, Tarlac, and Cebu.

In another interview, Panga mentioned that these projects are being prioritized because a firm has already filed and there have been some Japanese firms who handle medical devices with a vested interest.

Whether you’re interested in Philippines or Japanese markets, Asia Actual has got you covered! Contact us.

Medical Manufacturing Incentives in the Philippines

As stated by Panga, there are some incentives tied to the pharma-medical device ecozones in the Philippines.

  • Both domestic and foreign firms can expect 4-7 years of Income Tax Holiday (ITH-read more here).
  • Domestic and foreign firms will have tax and duty free importation, zero-value added tax rating, and promptly facilitated shipments.
  • After the ITH, for domestic markets, 5 years of enhanced deductions.
  • Post ITH, for export-oriented markets, 10 years of special corporate income tax.

FDA Director General Samuel Zacate added that LTO’s (License to Operate) and CPR’s (Certificate of Product Registration) will be extended to the benefit of medical device and pharma stakeholders.

Come Grow With Us

Asia Actual specializes in helping medical device manufacturers grow their sales in Asia and with experienced, bi-lingual commercial and regulatory experts on the ground in each market. Contact Asia Actual today with any questions or support requests for the Philippines.

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