Saudi pharma firm eyes $30 million investment in Philippines

MANILA, Philippines — A pharmaceutical firm from Saudi Arabia is looking to invest $30 million to set up a manufacturing facility in the country, the Philippine Economic Zone Authority (PEZA) said.

PEZA director general Charito Plaza, in a Viber message to reporters, said Basha’er Addawa has signified intent to invest in manufacturing operations in the country.

The firm plans to engage in pharmaceutical manufacturing particularly in the production and export of generic drugs, high-demand therapeutic drugs and other specific drugs for oncology, diabetes and hypertension.

It is also interested in information technology services.

Once completed, the manufacturing facility is expected to generate 1,500 jobs.

The Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill seeks to trim the corporate income tax rate to 25 percent from 30 percent, considered among the highest in Southeast Asia.

In addition, the bill will introduce changes in the incentives system.

Under the bill, PEZA-registered firms availing of the five percent tax on gross income earned (GIE) incentive will be given a transition period of up to nine years.

PEZA-registered firms pay the GIE in lieu of all national and local taxes after their income tax holidays have been used up.

Earlier, Plaza said many firms are putting investment plans on hold as they are waiting for the final outcome of CREATE.

With CREATE still being discussed at the Senate, she reiterated PEZA’s appeal to exempt firms registered with the agency from the measure and to have a separate tax regime for export-oriented firms and domestic enterprises.

“While PEZA sees as valid the rationalization of the corporate tax incentives, the current situation of global economy in 2020 and the coming years is not the appropriate time to change the current incentives’ regime,” she said.

PEZA has been promoting the country as an investment destination to attract firms, including those in the pharmaceutical sector, to set up shop.

At present, the country has a pharmaceutical park, the First Bulacan Industrial City in Malolos, which is home to several local and multinational firms.