The
Project
Why would I want to set up a factory in the Philippines at this time? There are a number of compelling reasons for locating in the Philippines at this time. Foremost among these is the
country's high quality human resource base. The local workers are English-speaking,
multi-skilled, highly trainable and familiar with quality programs thereby allowing
locators to transfer technology and readily begin operations. Moreover, their high
productivity and low turnover ensure business momentum. University-trained managers and
engineers are readily available and will enhance productivity and quality of operations
while reducing the need for expensive expatriates. Another consideration is the strategic location of the Philippines at the heart of Asia's eastern gateway, placing it within the immediate reach of the Asian, Japanese and North American markets and easily accessible to Europe and the Middle East as well. Progressive economic reforms and policies, generous tax incentives and simplified investment procedures have created a climate highly favorable to foreign investment. Also, the country enjoys Generalized System of Preference status in the United States and Europe which allows exporters to enjoy lower tariff rates. Among the Asian countries that have been hit by the current regional financial crisis, the Philippines has been spared the excesses apparent in the other countries largely due to the country's prudent monetary and fiscal policies. Politically, the country's democratic structure has been strengthened by the peaceful May 1998 presidential elections. The prognosis for economic recovery is more encouraging for the Philippines than most other Asian countries. This factor, supported by political stability, makes the Philippines well poised to be the choice of locators at this time. Where is the project located? How accessible is it from the nearest airport and the nearest seaport? The project is located in Laguna, one of the provinces in the Calabarzon Area, which is the most dynamic among government-identified priority growth centers in the Philippines. The first Laguna Technopark is located in the towns of Biñan and Sta. Rosa and is easily accessible from the South Expressway, the main highway linking Manila to the south, through a direct link with the newly completed Sta. Rosa-Tagaytay Road. This road also leads to Tagaytay, a popular tourist spot visited for its cool climate and resort destinations, including a number of golf courses. The Technopark is 47 kilometers from Ninoy Aquino International Airport, the Philippines' primary international airport, 50 kilometers from the Manila South Harbor and 85 kilometers from another international seaport located further south in the province of Batangas. How is the quality of development in the near vicinity of the Project? Laguna Technopark is within a masterplanned community designed to provide the ideal work environment for its locators and their employees. Across the Technopark are first-class residential villages catering to junior executives and staff. These are complemented by a social hall, schools, a church and a neighborhood center. In the vicinity is a mall that provides a supermarket, shopping outlets and restaurants. Laguna Technopark will eventually form part of a new large-scale fully integrated community straddling the provinces of Laguna and Cavite. Dubbed as Ayala South, this new regional growth center will integrate residential villages, a business district, commercial centers, socio-civic amenities and recreational facilities. Ayala South is envisioned to serve as an alternate growth center to Metro Manila. The initial venture located in Biñan-Sta. Rosa consists of 387 hectares (or 956 acres) making it one of the largest private industrial parks in the country. When was the Project launched? The project was launched in November 1990. How is the power and water supply in the area? What about the other facilities in the Project? Power for the locators of the Technopark is well supplied by the Manila Electric Company. Laguna Technopark lies within an area that provides ample water supply. Other infrastructure available on site include highway-grade roads, digital telecommunication facilities, a centralized sewerage system and waste water treatment facility. Also on site are support facilities such as banks, government representative offices, medical facilities, security and fire stations, internal transport terminals, a forwarding company, and an administrative center. Laguna Technopark is a joint-venture of three of Asia's strongest companies. These are Ayala Land, the Philippines' premier property developer and the real estate arm of Ayala Corporation, the Philippines' oldest business house, Mitsubishi Corporation, a highly respected Japanese general trading company, and Kawasaki Steel Corporation, one of Japan's largest integrated steel manufacturers. What distinguishes Laguna Technopark from the other private industrial estates in the Philippines? Laguna Technopark is widely
acknowledged as the Philippines' premier industrial park. Financial Information Are the lots in Laguna Technopark being offered for sale or for lease? The lots are being offered for sale. Under Philippine laws, the sale of the lots is limited to Filipino individuals or companies the majority interest in which is Filipino-owned. As a foreign company, how would I go about acquiring land in the Technopark? The Philippine Constitution currently prohibits ownership of land by foreigners and foreign companies. For this purpose, a company that is 60% Filipino-owned is considered a domestic company. Hence, foreign companies normally form landholding companies with Philippine banks, investment houses or other corporations wherein foreign interest does not exceed the maximum allowable limit of 40% interest. How much does a lot in Laguna Technopark cost? What are the other costs and fees related to buying a lot in the Project? The current indicative selling price of a lot is P3,500 per square meter. Related acquisition costs consist of documentary stamp taxes and transfer tax. A one-hectare lot would cost about approximately P39 million, inclusive of said related acquisition costs. Ownership costs are minimal. These consist of association dues, dues payable to the Philippine Economic Zone Authority, and Real Property Tax . For a one-hectare lot, these ownership costs would amount to about P100,000 per year. What about power costs? Can I put up my own power generating equipment? Power costs P4.25 per kilowatt hour, one of the lowest in the Asian Region. A locator may put up its own power-generating equipment for its own use. Market Information What types of companies have located or set up production facilities in Laguna Technopark? The locators in the Technopark are progressive companies, mostly foreign, and engaged in a wide range of enterprises including precision/leading edge electronics including integrated circuit assembly and packaging and hard drive manufacture, and assembly of automobiles and related parts. Other enterprises within the industrial park are in home appliances, pharmaceuticals, telecommunication equipment, food processing, jewelry and textiles. To date, how much of the project has been built-up? How many locators are now operating in the project? Laguna Technopark's locator companies now number 84. To date, 60 locators owning a total of 210 hectares or 67% of the total saleable area in the Biñan-Sta. Rosa site are now operating. Another 7 locators owning 21 hectares are constructing or intend to start construction within 1998. |
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Laguna
Technopark, Inc. © Laguna Technopark Inc., 1998 |