Colliers Philippines said the anticipated lift of Administrative Order No. 18 (AO 18), which limited new Philippine Economic Zone Authority (PEZA) zones in Metro Manila, will boost the capital’s office market by increasing the supply of PEZA-accredited spaces, BusinessWorld reported.
AO 18 was enacted to encourage investment dispersion outside the capital by restricting the proclamation of new PEZA zones in Metro Manila. While the policy aimed to promote regional development, it inadvertently constrained the availability of PEZA-accredited office space in the key business district, limiting options for locators seeking tax incentives and other perks.
The removal of the moratorium is expected to unlock new supply of prime office space with PEZA accreditation, potentially attracting more outsourcing firms and multinational corporations to set up operations in Metro Manila. Colliers noted that this could help sustain the office market recovery amid growing demand for quality spaces.