RP’s ICT growth right on track

The government’s aim to transform the country into a knowledge center in the next three years as espoused in President Arroyo’s Medium-Term Philippine Development Plan (MTPDP) 2001-2004 is right on track.

Based on the Socioeconomic Report (SER) 2001 prepared by the National Economic and Development Authority (NEDA), the Board of Investments (BOI) approved some P12.909 billion worth of IT-related projects in 2001, an impressive increase compared to the P3.4 billion in 2000.

The report states that in 2001, there were 21 new BOI-approved IT enterprises compared with the 14 projects in 2000.

Noteworthy among the approved projects were Philweb.com Inc. with P2.268 billion worth of investments; Ayala Port with P1.069 billion; and Easycall Communications Phils. Inc. with P1.46 billion. The total approved investments are expected to generate around 15,804 jobs.

EZ investments

The SER also revealed that data from the Philippine Export Zone Authority (PEZA) showed investments in IT-related enterprises reached P1.908 billion in 2001 from P1.2 billion in 2000.

The continued growth in IT investments can be attributed to the rapid development of economic zones scattered all over the country and the growth in the number of IT-based manufacturing firms in these estates.

The report also noted that the NEDA Board, chaired by President Arroyo, had approved the P12.8-billion or $250-million proposed IT and Industry Support Loan (ITISL) Facility of the Japan Bank for International Cooperation (JBIC).

The ITISL, proposed by the Development Bank of the Philippines, is expected to help SMMEs and support the growth of the country’s technopreneurs. It has two components: relending and private bond placement.

Under the relending component, SMMEs offering IT-enabled services as well as technical support and call center activities can avail themselves of the loan.

Large enterprises may also be accommodated provided their projects are "developmental" in nature and are in accordance with priority investment activities listed under the BOI’s Investment Priorities Plan and the President’s State of the Nation Address (SONA).

ICT parks

Likewise, two ICT parks were given presidential proclamations in 2001. These were the Cebu Civic and Trade Center (CCTC) IT Park in Cebu City and the PBCom Tower in Makati City, bringing a total of six ICT parks created by presidential proclamations.

The PEZA Board has also approved four more ICT parks: Summit One Office Tower in Mandaluyong City, Araneta Cyber Center in Quezon City, and the UP Science and Technology Park (North) and the UP Science and Technology Park (South), both in the UP Diliman campus in Quezon City.

At present, there are a total of 13 ICT parks in Metro Manila and Cebu City, offering competitive financial and tax incentives for ICT business, namely: contact center operations, financial shared e-services of IT-enabled services and software development.

These are: Eastwood City Cyber Park in Quezon City; Northgate Cyber Zone in Alabang, Muntinlupa City; E-Square in Fort Bonifacio Global City, Taguig; RCBC Plaza IT Park in Makati City; CCTC IT Park in Cebu City; PBCom Tower in Makati City; Cebu Cyber Town IT Park in Mactan, Cebu; Bonifacio Information Special Technology Zone in Fort Bonifacio, Taguig; Robinson’s Cyber Park in Mandaluyong City; Summit One Office Tower in Mandaluyong City; Araneta Cyber Center in Cubao, Quezon City; and the UP Science and Technology Park (North) and UP Science and Technology Park (South), both in UP Diliman, Quezon City.

Based on the MTPDP 2001-2004, the Philippines aims to become a knowledge center and achieve its selected market niche in software development and data management, and become the e-services hub in Asia.

As such, companies located in the Philippines will be able to extend world-class, ICT-related and -enabled services to clients worldwide, including ICT project management, application system development, applications services provision and hosting, Web development and management, database design and development, computer networking and data communication, software development, ICT facilities operation/management and other services directly tied to the ICT industry.

(The MTPDP 2001-2004 is now available at the National Economic and Development Authority, Publications Division, NEDA bldg., 12 Blessed Jose Escriva Drive (formerly Amber Avenue), Pasig City. For inquiries, call 631-3281 or e-mail [email protected].)