How can your business benefit from a Cebu industrial park?
- Consideration in resilience planning
- A strategic location
- Complete and integrated infrastructure
- Rapid economic development
- Availability of skilled ground management team
- Economic zone incentives
Industrial parks are a relatively unrated investment choice among business owners. Simply put, industrial parks are zoned areas that are created for industrial development. Industrial parks in the Philippines have been growing in number due to the economy’s demand for specialized infrastructures that yield highly efficient day-to-day operational functions. Among all the locators, Cebu is a quickly developing land area. In this article, we delve deeper into how your business can benefit from a Cebu industrial park.
Holding the title “Queen City of the South”, Cebu delivers on its promise for an excellent economic track record. Back in 2018 alone, the city attained 7.6% growth in gross regional domestic product, coming in fourth across the Philippines. For the past 5 years, it secured a considerably high export growth rate compared to other provinces in the country as well. These are just some of the reasons why foreign direct investments and consequently, industrial park locators are pouring into the area.
Cebu offers a set of attractive opportunities for businesses to capitalize on. Continue reading to learn more about how your company can benefit from this booming region as well.
Consideration In Resilience Planning
COVID-19 has been an extreme catalyst for accelerated modification. As the situation continues to evolve, we are seeing different areas in the Philippines taking deliberated approaches to safeguard employees and mitigate financial and operational exposure. Cebu has done an impressive job at managing the pandemic response.
In fact, According to Cebu Daily News, as of May 3, 2021, more than 20 villages or barangays have not reported new infections in the past ten days and the Emergency Operations Center (EOC) reported that as of May 2, 24 of the city’s 80 barangays recorded zero transmission of COVID-19. To add to that, compared to their peak of over 2,500 active cases last February, it has severely dropped to 1771.
Their LGUs reactivated barangay isolation centers, established more accredited isolation facilities and collaborated with hotels that could cater to mild and asymptomatic cases. This has extremely helped keep hospital bed occupancy at a low rate.
This does not only show how safe the area is, but it also reflects good governance, leadership, and particular consideration in resilience planning. When you locate your business here, you are ensured that measures will be taken during a global crisis or other pandemic events.
A Strategic Location
Straddling three administrative regions, Cebu is the main gateway into central and southern Philippines.
It has more domestic air and sea linkages than any other city in the country. Cebu is also the base for over 80% of inter-island shipping capacity in the Philippines. This offers plenty of benefits for businesses. For one, companies can optimize their supply chains by distributing products faster and with ease.
It is also worth noting that the newly-built Mactan-Cebu International Airport is second to Manila in terms of domestic and international passenger traffic—whether in-bound or out-bound. Cebu’s strategic location is highly attractive for businesses that want to bud international partnerships.
As a major shipment point, Cebu’s international seaport provides unmatched dynamics with trading connections. Exporting and importing amidst neighboring countries such as Hong Kong, Taipei, Singapore, Beijing, Tokyo, and Seoul has never been easier.
All these are vital factors that businesses can benefit from a Cebu industrial park like the Cebu Light Industrial Park. To further emphasize the strategic location advantage, this 62-hectare industrial park is a mere 10-minute drive or 6 kilometers away from Mactan-Cebu International Airport and approximately 8 kilometers from the Cebu International Seaport.
Complete and Integrated Infrastructure
One of the biggest benefits of having a locator in a Cebu industrial park is the access to complete and integrated infrastructure. In general, this is why industrial parks were established in the first place: to provide an environment that is conducive to industrial development.
Take the Cebu Light Industrial Park for example. This industrial park does not merely house integrated business infrastructures, but it also provides complete features and amenities that prove to be useful for day-to-day operations. This includes some of the following:
- High-power, independent electric grids
- High-end communications cables
- Large-volume water supply and treatment system
- Adequate fire protection
- General security features
- Private roadways
- Transportation within the estate, bank, and healthcare facilities
- Freight forwarding
Rapid Economic Development
Cebu is accelerating its efforts to boost its economy. As a result, all kinds of infrastructure types are being built continuously to attract investments. Aside from being a highly popular tourist destination, the city has been set up to promote international trade as well.
More and more retail establishments, real estate properties, BPO companies, luxury hotels, and recreational spots are forecasted to rise in Cebu. These key developments offer endless opportunities for companies situated in Cebu industrial parks.
Availability Of Skilled Ground Management Team
While not all, the best Cebu industrial parks are known for providing skilled ground management teams. This is an added service feature to complement the highly integrated infrastructure amenities.
At Cebu Light Industrial Park, a ground management team is assigned with the specific role to help businesses in handling administration and maintenance functions. The on-site managers also handle environmental and sustainability management among the buildings. These professionals coordinate operations to align with regulatory agencies.
Simply put, businesses can operate with fewer problems with the help of the ground management teams.
Economic Zone Incentives
Many industrial parks are deemed economic zones. As a policy instrument, the creation of ecozones has three goals: to promote foreign exports, create jobs, and attract foreign direct investment.
The Cebu Light Industrial Park is a registered economic zone under the Philippine Economic Zone Authority (PEZA). This means it is not subject to the same trade laws that the rest of the businesses in the country are subject to. The Bases Conversion and Development Act of 1992 made it possible to garner fiscal and non-fiscal incentives. This means businesses that have locators in a Cebu industrial park will benefit from the following:
- Tax-free importation of raw materials, capital, and equipment
- Exemption from local and national taxes
- Permanent residency status for investors and their families
- Tax payments of only five percent from gross income
- Simplified customs procedures
This article rounded up how your business can benefit from a Cebu industrial park. With the advantages of a strategic location, complete and integrated infrastructure, rapid economic development, availability of skilled ground management team, and economic zone incentives, it is an ideal locator investment that garners endless lucrative opportunities.
Grow your business by partnering with Science Park of the Philippines (SPPI). With years of expertise, our industrial parks are inclined to help businesses thrive and attain long-term goals.
For more information about the SPPI advantage, click here.