PEZA eyes defense industrial zones

MANILA, Philippines – The Philippine Economic Zone Authority (PEZA) is seeking to build more ammunition manufacturing zones across the Philippines in a bid to boost the country’s military might, its top official said.

PEZA director general Charito Plaza, the country’s first woman brigadier general in the armed forces, said the agency plans to develop new special economic zones for weaponry in “vulnerable areas of attacks” nationwide.

She said defense industrial complexes are part of the many other potential new types of economic zones she wants to create during her term, which also includes agro-forestry and mineral processing hubs.

“It is high time now that we be on our own and be ready to defend our country. In several areas of our country, we’re inviting investors in the military and police industries (such as) equipment, drones, hardware and software, arms and ammunition needed by the Philippines. Join us and enjoy the PEZA incentives,” Plaza said.

The PEZA official said the country has military reservation areas which could be utilized as defense industrial zones.

“It will depend on studies that will be undertaken by the Department of National Defense and the Armed Forces of the Philippines where it will be, but I suggested we put up the defense industrial complex in vulnerable areas of attacks. One in Palawan because it is facing the Spratlys, and one in Zambales because it is facing the Scarborough shoal. We might continue Olongapo as a shipyard, and Clark where aircraft manufacturing industries can be located there. I also suggested that we put up at least two in Mindanao,” Plaza said.

“It’s not just the transfer of technology, but we will be able to modernize the armed forces and the police. We’re inviting Russia, China, Israel, Japan and everybody who  has the defense industries that they can locate in our defense industrial zones,” she said.

Plaza said President Duterte has welcomed her plans of building more arsenal industrial centers in the country.

“I talked to him about it , the defense industrial complex when he interviewed me about my plans in PEZA. He’s very excited that we’ll have our own industrial complex so we can modernize and equip our own police. But every economic zone, every locator, industry, and economic zone developer need to be approved first by PEZA board and recommend to the President for a Presidential Proclamation,” she said.

PEZA locators are provided with incentives such as income tax holiday, tax and duty free importation of raw materials and capital equipment, domestic sales allowance, exemption from payment of local government taxes and fees, and special visa for foreign investors and immediate family members, among others.

Plaza said PEZA is partnering with the Department of National Defense for the country’s first defense industrial complex located in Bataan.