The Philippine Economic Zone Authority (PEZA) and the Food and Drug Administration (FDA) have recently announced their collaboration with the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) to transform the nation’s pharmaceutical and medical device manufacturing landscape. This bold initiative, spearheaded by Director Generals Tereso Panga and Dr. Samuel Zacate, aims to establish dedicated pharmaceutical economic zones.
The President's vision is clear - to streamline the drug application process, making it more efficient and accessible. The ultimate goal is to encourage local producers to enhance their manufacturing capabilities, stimulate research and development, and make medicines more affordable to Filipinos.
The high-level discussion revolved around enhancing the ease of doing business for both domestic and export-oriented manufacturing sectors. The focus is to address non-tariff barriers, particularly in permitting and licensing.
The group has agreed to study the provision of a green lane for PEZA locators and update the PEZA-FDA Memorandum of Agreement. This move aims to improve licensing and registration for prospective and existing PEZA Registered Business Enterprises (RBEs).
This partnership will complement the consumer protection, education, and advocacy initiatives of the Department of Trade and Industry (DTI). With counterfeit drugs posing a significant threat, this initiative stands to bolster the security and integrity of the pharmaceutical supply chain.
This initiative will involve multiple government agencies such as DTI, DOH, ARTA, BOC, BIR, and others. Their role will be to strictly regulate and monitor pharmaceutical-related activities in the country, ensuring optimum compliance and safety.
The team is also considering the structure of pharmaceutical economic zones within ASEAN countries. The goal is to evaluate how these models can be implemented or adapted in the Philippines to optimize the potential of these zones.
Under the CREATE Law, companies involved in health, medical, and pharmaceutical-related activities will enjoy 5-7 years of income tax holiday and 10 years Special Corporate Income Tax or five years Enhanced Deduction, making the Philippines an attractive prospect for investors.
DG Panga expressed gratitude to OSAPIEA and FDA for their support, highlighting the importance of such collaborations for the success of businesses engaged in medical device manufacturing and those considering establishing drug production in the country.
As of December 2023, PEZA hosts 26 operating companies in the manufacturing of pharmaceutical products and medical equipment, generating about PhP 25.489 Billion of investments and over 19,000 jobs. With talks on reviving leading Filipino companies into pharmaceutical-related activities, the establishment of a modern pharma park in the country is on the horizon.
With these collaborative efforts, the Philippines is on the path to revolutionizing its pharmaceutical industry, making affordable and readily available medicines a reality for its citizens.
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