The Department of Trade and Industry (DTI) and the Department of Finance (DOF) have approved the lifting of the moratorium under Administrative Order (AO) 18, clearing the way for more office developments to qualify as Philippine Economic Zone Authority (PEZA) economic zones and expanding location options for information technology-business process management (IT-BPM) investors.
Trade Secretary Cristina Roque said both agencies have endorsed the policy shift, with the economic team now awaiting the issuance of a new administrative order from Malacañang to formally replace AO 18.
“Yes, with DOF Secretary Frederick Go we already approved the lifting of AO 18,” Roque said.
The move marks a significant policy pivot aimed at boosting the country’s competitiveness by easing restrictions that have effectively capped the proclamation of new IT parks and centers, particularly in Metro Manila and Cebu.
Instead of confining investors to existing PEZA-accredited locations, the revised policy will allow newer office developments to seek ecozone status.
PEZA Director General Tereso Panga stressed that the change will not expand fiscal incentives to property developers. Tax perks will remain exclusive to PEZA-registered locator companies operating within approved economic zones, preserving the country’s existing investment incentive framework.
Rather, the policy is designed to widen the inventory of investment-ready office space, giving multinational firms greater flexibility in choosing modern, energy-efficient buildings while encouraging the use of newly completed developments.
Among the projects expected to benefit are recently completed office buildings in Makati, Arca South and Bridgetowne that were previously sidelined by the moratorium.
Panga said the Yuchengco Group’s new Makati office building could serve as the first “test case” once the new administrative order takes effect, potentially opening the door for similar applications from other developers.
Applications filed after the issuance of the new order will be evaluated under the revised rules, while pending applications already submitted to the Office of the President will continue to be processed under the existing framework.
Although the IT-BPM sector continued to attract investments despite the moratorium, Panga said removing the restriction would strengthen the Philippines’ investment pitch by expanding the supply of PEZA-accredited office space. As global firms increasingly prioritize flexibility and high-quality workplaces, the policy could help ensure that investment opportunities are no longer constrained by geography, but driven by market demand and the availability of world-class facilities.
