The Philippine Economic Zone Authority (PEZA) will seek the issuance by the Fiscal Incentives Review Board (FIRB) of a resolution that would allow electronics companies registered with the agency adopt up to 30 percent hybrid or work-from-home (WFH) setup for non-production activities.
Tereso Panga, director-general of PEZA, told reporters the Department of Labor and Employment (DOLE) supports the proposal as this will give electronics companies the flexibility without losing their incentives.
Panga said to meet the qualifications for incentives, PEZA registered business enterprises (RBEs) need to meet the export threshold of 70 percent so they can conduct economic activities for the domestic market.
Panga said most electronics PEZA RBEs export nearly 100 percent of their products, and are thus qualified for domestic activities.
Under the current setup, WFH applies mostly to the information technology-business process management industry.
However, Panga said some of the operations of electronics firms that can be done remotely include research and development, human resources and administrative.
According to Panga, members of the Semiconductor and Electronics Industries of the Philippines Inc., some Japanese firms and Cebu-based businesses have raised this concern in various consultations.
Meanwhile, Panga in his address to the Mactan Export Processing Zone (MEZ) Chamber of Exporters and Manufacturers during its annual General Membership Meeting last June 14 expressed confidence of increased investments in Cebu
Panga told delegates Autoliv Cebu Safety Manufacturing Inc. bared plans to expand in a 2.6-hectare area in the Northern Part of Cebu while Taiyo Yuden Philippines Inc. expressed its interest in registering with PEZA a new and expansion project in MEZ.
Cebu-based locators account for 11 percent share in the total PEZA on investments, jobs and exports.
To date, PEZA has registered 48 ecozones in Cebu province with 640 locator companies generating P275.3 billion in cumulative investments resulting in 232,076 directly generated jobs, and churning out $ 5.9 billion annual average exports.
