Chester Cabalza recommends his visitors to please read the original & full text of the case cited. Xie xie!
People vs Sendaydiego, et. al.
G.R. No. L-33254 and 33253
January 20, 1978
Facts:
In these three cases of malversation through falsification, the prosecution's theory is that in 1969 Licerio P. Sendaydiego, the provincial treasurer of Pangasinan, in conspiracy with Juan Samson y Galvan, an employee of a lumber and hardware store in Dagupan City, and with Anastacio Quirimit, the provincial auditor, as an accomplice, used six (6) forged provincial vouchers in order to embezzle from the road and bridge fund the total sum of P57,048.23.
The provincial voucher in these cases has several parts. In the upper part with the legend "ARTICLE OR SERVICE" the nature of the obligation incurred is indicated. That part is supposed to be signed by two officials of the provincial engineer's office and by the governor's representative.
The middle part of the voucher contains five numbered printed paragraphs.
Paragraph 1 is a certificate to be signed by the creditor. It is stated therein that the creditor vouches that the expenses "were actually and necessarily incurred". In the instant cases paragraph 1 was not signed presumably because it is not relevant to the purchase of materials for public works projects. Paragraph 2 is a certification that the expenses are correct and have been lawfully incurred. It is signed by the provincial engineer. Paragraph 3 contains these words: "Approved for pre-audit and payment, appropriations and funds being available therefore." This is signed by the provincial treasurer. Paragraph 4 is a certification which, as filed up in Exhibit K, Voucher No. 10724 dated February 28, 1969, certifying that the voucher has been pre-audited and signed by the auditor. Paragraph 5 is a certification signed by the provincial treasurer that the account mentioned in the provincial engineer's certification "was paid in the amount and on the date shown below and is chargeable as shown in the summary hereof. " It may be noted that the provincial treasurer signs two part of the voucher.
Issue:
Whether or not appellants are liable for the crimes of falsicification of public documents and six crimes of malversation?
Held:
Samson is convicted of six crimes of falsification of a public document and six crimes of malversation. In lieu of the penalties imposed by the trial court, he is sentenced to the following penalties: For each of the six falsification of the vouchers (Exh. K, O, P, Q, R and S), Samson is sentenced to an indeterminate penalty of two (2) years of prison correccional minimum, as minimum, to four (4) years of prision correccional medium, as maximum, and to pay a fine of three thousand pesos. For the malversation of the sum of P16,727.52 covered by voucher No. 10724 (Exh. K), Samson is sentenced to an indeterminate penalty of twelve (12) years of prision mayor maximum, as minimum, to seventeen (17) years of reclusion temporal medium, as maximum; to pay a fine in the amount of P16,727.52, and to indemnify the province of Pangasinan in the same amount (Criminal Case NO. 23349, L-33252). For the malversation of the sum of P14,571.81 covered by voucher No. 11995 (Exh. O), Samson is sentenced to an indeterminate penalty of twelve (12) years of prision mayor maximum, as minimum, to seventeen (17) years of reclusion temporal medium, as maximum; to pay a fine in the sum of P14,571.81, and to indemnify the province of Pangasinan in the same amount (Criminal Case No. 23351, L-33254). For the malversation of the sum of P6,290.60 covered by voucher No. 11870 (Exh. Q), Samson is sentenced to an indertiminate penalty of nine (9) years of prision mayor medium, as minimum, to thirteen (13) years of reclusion temporal minimum, as maximum; to pay a fine of P6,290.60, and to indemnify the province of Pangasinan in the same amount (Criminal Case No. 23350, L-33253). For the malversation of the sum of P9,769.64 covered by voucher No. 11871 (Exh. R), Samson is sentenced to an indeterminate penalty of nine (9) years of prision mayor medium, as minimum, to thirteen (13) years of reclusion temporal minimum, as maximum; to pay a fine of P9,769.64, and to indemnify the province of Pangasinan in the same amount (Criminal Case No. 23350, L-33253). For the malversation of the sum of P5,187.28, covered by voucher No. 11869 (Exh. P), Samson is sentenced to an indeterminate penalty of five (5) years of prision correccional maximum, as minimum, to eight (8) of prision mayor minimum, as maximum; to pay a fine of P5,187.28, and to indemnify the province of Pangasinan in the same amount (Criminal Case No. 23350, L-33253).
For the malversation of the sum of P4,501.38 covered by voucher no. 11872 (Exh. S), Samson is sentenced to an indeterminate penalty of five (5) years of prision correccional maximum, as minimum, to eight (8) years of prision mayor minimum, as maximum; to pay a fine of P4,501.38, and to indemnify the province of Pangasinan in the same amount (Criminal Case No. 23350, L-33253). In the service of the twelve penalties meted to Samson, the threefold limit provided for in article 70 of the Revised Penal Code should be observed (People vs. Escares, 102 Phil. 677), meaning that the maximum penalty that he should serve is three times the indeterminate sentence of twelve (12) years to seventeen (17) years, the severest penalty imposed on him, or thirty-six (36) years to fifty-one (51) years (see People vs. Peñas, 68 Phil. 533). The maximum duration of his sentences should not exceed forty (40) years (Penultimate par. of art. 70; People vs. Alisub, 69 Phil. 362; People vs. Concepcion, 59 Phil. 518, 68 Phil. 530 and 69 Phil. 58).
The estate of the late Licerio P. Sendaydiego is ordered to indemnify the province of Pangasinan in the sum of P57,048.23. Samson and the said estate are solitarily liable for the said indemnity (Art. 110, Revised Penal Code). Samson should pay one-half of the costs. SO ORDERED.
Friday, February 26, 2010
People vs Vacani, et. al.
People vs Vacani, et. al.
G.R. No. L-43250
August 22, 1935
Facts:
Said three appellants, namely, Manuel V. Vacani, Pastor F. Buenaventura, and Eleuterio Suayan were prosecuted for and convicted by the Court of First Instance of Manila of the crime of robbery with serious physical injuries, and were sentenced by said court to an indeterminate penalty of from six years and one day to twelve years; to indemnify the complainant corporation "Liggett & Myers Tobacco Co., Inc." in the sum of P35,311.90, and each to pay the proportionate part of the costs of the suit.
It was alleged that the appellant Manuel Vacani, in order to dispossess Antonio J. Balunsat and Dionisio Ochoa, cashier and special policeman, respectively, of "Liggett & Myers Tobacco Co., Inc.", of the money which they carried for deposit in the bank, on October 22, 1934, conspired with his co-accused and, for a price, reward or promise, induced them to seize as they in fact seized from the hands of said Antonio J. Balunsat, after throwing in the latter's face and in that of Dionisio Ochoa who accompanied him, ammonium hydroxide to blind and disable them temporarily, the two portfolios which he carried, containing the sum of P35,311.90 consisting in bills, checks and money orders belonging to said corporation "Liggett & Myers Tobacco Co., Inc."
However, the evidence presented by the prosecution is mostly circumstantial in character. On October 22, 1934, when the alleged robbery took place on Ronquillo Street of the City of Manila, appellants Pastor Buenaventura and Eleuterio Suayan were seen in a Chinese store near the offices of Liggett & Myers Tobacco Co., Inc.
Issue:
Whether the circumstantial evidence provided by the prosecution against defendants-appellants is valid for their appeal?
Held:
The expert witnesses for the prosecution testified that in order that ammonium hydroxide may produce injuries of the same nature as those inflicted on Balunsat and Ochoa, the concentration thereof must be more than 10 per cent; and the evidence shows that the solution of ammonia which appellant Manuel Valdes Vacani once had in his possession, even granting that the bottle as really found in his house — which he categorically denied — was very weak, being only 10 percent.
The alleged extrajudicial confession of the appellant Pastor Buenaventura proves nothing against him, much less against the other appellants because it also has all the indicia of not having been freely and voluntarily made by him.
However, in order that circumstantial evidence may serve as a basis for conviction, it is necessary, as this court has held on more than one occasion (U.S. vs. Villos, 6 Phil., 510; and U.S. vs Douglass, 2 Phil., 461), that the same be complete and that the knowledge produced thereby be such that it leaves no room for a reasonable doubt as to the guilt of the accused, following the natural and ordinary course of things.
The three appellants are acquitted of the crime with which they were charged, with costs de oficio, and it is ordered that those who are in detention be immediately released unless they are detained for other cause. So ordered.
G.R. No. L-43250
August 22, 1935
Facts:
Said three appellants, namely, Manuel V. Vacani, Pastor F. Buenaventura, and Eleuterio Suayan were prosecuted for and convicted by the Court of First Instance of Manila of the crime of robbery with serious physical injuries, and were sentenced by said court to an indeterminate penalty of from six years and one day to twelve years; to indemnify the complainant corporation "Liggett & Myers Tobacco Co., Inc." in the sum of P35,311.90, and each to pay the proportionate part of the costs of the suit.
It was alleged that the appellant Manuel Vacani, in order to dispossess Antonio J. Balunsat and Dionisio Ochoa, cashier and special policeman, respectively, of "Liggett & Myers Tobacco Co., Inc.", of the money which they carried for deposit in the bank, on October 22, 1934, conspired with his co-accused and, for a price, reward or promise, induced them to seize as they in fact seized from the hands of said Antonio J. Balunsat, after throwing in the latter's face and in that of Dionisio Ochoa who accompanied him, ammonium hydroxide to blind and disable them temporarily, the two portfolios which he carried, containing the sum of P35,311.90 consisting in bills, checks and money orders belonging to said corporation "Liggett & Myers Tobacco Co., Inc."
However, the evidence presented by the prosecution is mostly circumstantial in character. On October 22, 1934, when the alleged robbery took place on Ronquillo Street of the City of Manila, appellants Pastor Buenaventura and Eleuterio Suayan were seen in a Chinese store near the offices of Liggett & Myers Tobacco Co., Inc.
Issue:
Whether the circumstantial evidence provided by the prosecution against defendants-appellants is valid for their appeal?
Held:
The expert witnesses for the prosecution testified that in order that ammonium hydroxide may produce injuries of the same nature as those inflicted on Balunsat and Ochoa, the concentration thereof must be more than 10 per cent; and the evidence shows that the solution of ammonia which appellant Manuel Valdes Vacani once had in his possession, even granting that the bottle as really found in his house — which he categorically denied — was very weak, being only 10 percent.
The alleged extrajudicial confession of the appellant Pastor Buenaventura proves nothing against him, much less against the other appellants because it also has all the indicia of not having been freely and voluntarily made by him.
However, in order that circumstantial evidence may serve as a basis for conviction, it is necessary, as this court has held on more than one occasion (U.S. vs. Villos, 6 Phil., 510; and U.S. vs Douglass, 2 Phil., 461), that the same be complete and that the knowledge produced thereby be such that it leaves no room for a reasonable doubt as to the guilt of the accused, following the natural and ordinary course of things.
The three appellants are acquitted of the crime with which they were charged, with costs de oficio, and it is ordered that those who are in detention be immediately released unless they are detained for other cause. So ordered.
People vs Valencia, et. al
Chester Cabalza recommends his visitors to please read the original & full text of the case cited. Xie xie!
People vs Valencia, et. al
G.R.No. L- 39864
December 8, 1933
Facts:
Appellants Marcelino Valencia and Socorro Quijano, together with Melchor Quijano, were prosecuted in the Court of First Instance of Pampanga. Upon arraignment, Marcelino Valencia pleaded guilty, while his two codefendants pleaded not guilty. After due trial, Melchor Quijano was acquitted. Marcelino Valencia was found guilty of a violation of article 166, of the Revised Penal Code, and sentenced to suffer ten years, eight months and one day of prision mayor, with the accessories of the law, to pay a fine of P100, with subsidiary imprisonment in case of insolvency, and to pay one-third of the costs. Socorro Quijano was found guilty of a violation of article 168 of the Revised Penal Code, and sentenced to four years, two months and one day of prision correccional, with the accessories of the law, and to pay one-third of the costs.
On March 21, 1933, appellants stopped their car in front of a store belonging to Maria Morales and bought some cigarettes and corn beef, and gave the seller a ten-peso bill. After receiving the change in the sum of P9.55, they hurriedly left the store. This aroused the suspicion of the store owner who, upon examining the bill, found it to be a counterfeit. Whereupon her brother Pedro Morales went in pursuit of appellants. Meanwhile, appellants went to another store belonging to Eustaquia Suñga and bought cigars and some cans of salmon, giving, in payment, another ten-peso counterfeit bill. Upon receiving the change, they again hurriedly departed. They were, however, overtaken by Pedro Morales and, at his instance, were detained by the authorities.
Issue:
Whether or not accused-appellants committed the crime under Art. 166 or 168?
Held:
The crime committed by Marcelino Valencia falls within the purview of article 166, case 2, of the Revised Penal Code. The penalty prescribed is prision mayor in its maximum degree and a fine not to exceed P5,000. There being present the mitigating circumstance of plea of guilty, without any aggravating circumstance to offset it, the penalty should be imposed in its minimum period. Under the provisions of Act No. 4103 of the Philippine Legislature, otherwise known as the Indeterminate Sentence Law, he should be sentenced to a term of imprisonment the minimum of which shall not be less than the minimum of the penalty next lower in degree to that prescribed by the Revised Penal Code, and the maximum shall be that which may be properly imposed, in view of the attending circumstances. Consequently, the appellant Marcelino Valencia is hereby sentenced to suffer a term of imprisonment of from eight years and one day to ten years and eight months. The fine imposed by the lower court should be without any subsidiary imprisonment pursuant to article 39, rule 3, of the Revised Penal Code.
The crime committed by Socorro Quijano falls under article 168 of the Revised Penal Code, and the penalty prescribed is prision mayor in its medium degree, which should be applied in its medium period, in the absence of any mitigating or aggravating circumstance in the commission of the crime. Pursuant to the provisions of said Act No. 4103, she is hereby sentenced to suffer a term of imprisonment of from six years and one day to nine years and four months. She is also sentenced to pay a fine of P100, without any subsidiary imprisonment. (Article 168, in relation with article 166, case 2, and article 39, rule 3, of the Revised Penal Code.)
Modified as above indicated, the judgment is affirmed with costs against the appellants. So ordered.
People vs Valencia, et. al
G.R.No. L- 39864
December 8, 1933
Facts:
Appellants Marcelino Valencia and Socorro Quijano, together with Melchor Quijano, were prosecuted in the Court of First Instance of Pampanga. Upon arraignment, Marcelino Valencia pleaded guilty, while his two codefendants pleaded not guilty. After due trial, Melchor Quijano was acquitted. Marcelino Valencia was found guilty of a violation of article 166, of the Revised Penal Code, and sentenced to suffer ten years, eight months and one day of prision mayor, with the accessories of the law, to pay a fine of P100, with subsidiary imprisonment in case of insolvency, and to pay one-third of the costs. Socorro Quijano was found guilty of a violation of article 168 of the Revised Penal Code, and sentenced to four years, two months and one day of prision correccional, with the accessories of the law, and to pay one-third of the costs.
On March 21, 1933, appellants stopped their car in front of a store belonging to Maria Morales and bought some cigarettes and corn beef, and gave the seller a ten-peso bill. After receiving the change in the sum of P9.55, they hurriedly left the store. This aroused the suspicion of the store owner who, upon examining the bill, found it to be a counterfeit. Whereupon her brother Pedro Morales went in pursuit of appellants. Meanwhile, appellants went to another store belonging to Eustaquia Suñga and bought cigars and some cans of salmon, giving, in payment, another ten-peso counterfeit bill. Upon receiving the change, they again hurriedly departed. They were, however, overtaken by Pedro Morales and, at his instance, were detained by the authorities.
Issue:
Whether or not accused-appellants committed the crime under Art. 166 or 168?
Held:
The crime committed by Marcelino Valencia falls within the purview of article 166, case 2, of the Revised Penal Code. The penalty prescribed is prision mayor in its maximum degree and a fine not to exceed P5,000. There being present the mitigating circumstance of plea of guilty, without any aggravating circumstance to offset it, the penalty should be imposed in its minimum period. Under the provisions of Act No. 4103 of the Philippine Legislature, otherwise known as the Indeterminate Sentence Law, he should be sentenced to a term of imprisonment the minimum of which shall not be less than the minimum of the penalty next lower in degree to that prescribed by the Revised Penal Code, and the maximum shall be that which may be properly imposed, in view of the attending circumstances. Consequently, the appellant Marcelino Valencia is hereby sentenced to suffer a term of imprisonment of from eight years and one day to ten years and eight months. The fine imposed by the lower court should be without any subsidiary imprisonment pursuant to article 39, rule 3, of the Revised Penal Code.
The crime committed by Socorro Quijano falls under article 168 of the Revised Penal Code, and the penalty prescribed is prision mayor in its medium degree, which should be applied in its medium period, in the absence of any mitigating or aggravating circumstance in the commission of the crime. Pursuant to the provisions of said Act No. 4103, she is hereby sentenced to suffer a term of imprisonment of from six years and one day to nine years and four months. She is also sentenced to pay a fine of P100, without any subsidiary imprisonment. (Article 168, in relation with article 166, case 2, and article 39, rule 3, of the Revised Penal Code.)
Modified as above indicated, the judgment is affirmed with costs against the appellants. So ordered.
Friday, February 19, 2010
Callao Caves
Copyright © 2010 by Chester B Cabalza
Everyday I think of a white mountain in the valley
Like painting in my mind
Massive formations of limestone
But since the dawn cleanses the mighty,
Great length of the Pinacanauan River ¬-
A candid imagination:
Of riding in a flat boat and rowing
Together with my uncle,
An Itawes fisherman
The zest of these natural wonders,
Wholly fill my troubles
Watching red-billed kalaw birds,
And winds go by, looking at rock cliffs,
Climbing eerie chamber as simple glories.
Praying in one of the chambers
Where a little sacred chapel is built.
The grandeur of stalactites
And stalagmites…
I wonder the scenery of Callao Caves
Possesses me the spirits
Of great Itawes ancestors
In the depth of my soul, while
Looking at the magnificent caves of Peñablanca,
The natural wonder illuminate by dashing sunlight,
Echoes of voices bang my ears,
The yells that disturbs the tranquility
With my fears,
Of losing the silence!
Of losing my temper!
The scorch of the sun in the afternoon,
Hinders not Anthropologists to come.
And watch a row of small huts,
Study a group of fisherfolks who turn
To be tourist guides.
Another strangers – a team of Archaeologists
To excavate the mysteries of the past,
They claim the caves as their site.
So rich! So rich!
The artifacts (pottery and stone flakes)
The remains of the beasts
(Elephas and stagedons)
From Pliocene to Pleistocene epoch
And when the sun closes to its culprit
All of them get tired –
Of looking this enormous wonder,
Of documenting the lives of the natives,
Of exploiting and exploring –
The people and the caves
This is when I grow tired
Of seeing different people,
By doing peculiar purposes.
From this moment…bats at dusk
Chase darkness
Leaving those foisted caverns
They are gone!
The strangers!
August 1999
From:cbcabalza collection of poems
Everyday I think of a white mountain in the valley
Like painting in my mind
Massive formations of limestone
But since the dawn cleanses the mighty,
Great length of the Pinacanauan River ¬-
A candid imagination:
Of riding in a flat boat and rowing
Together with my uncle,
An Itawes fisherman
The zest of these natural wonders,
Wholly fill my troubles
Watching red-billed kalaw birds,
And winds go by, looking at rock cliffs,
Climbing eerie chamber as simple glories.
Praying in one of the chambers
Where a little sacred chapel is built.
The grandeur of stalactites
And stalagmites…
I wonder the scenery of Callao Caves
Possesses me the spirits
Of great Itawes ancestors
In the depth of my soul, while
Looking at the magnificent caves of Peñablanca,
The natural wonder illuminate by dashing sunlight,
Echoes of voices bang my ears,
The yells that disturbs the tranquility
With my fears,
Of losing the silence!
Of losing my temper!
The scorch of the sun in the afternoon,
Hinders not Anthropologists to come.
And watch a row of small huts,
Study a group of fisherfolks who turn
To be tourist guides.
Another strangers – a team of Archaeologists
To excavate the mysteries of the past,
They claim the caves as their site.
So rich! So rich!
The artifacts (pottery and stone flakes)
The remains of the beasts
(Elephas and stagedons)
From Pliocene to Pleistocene epoch
And when the sun closes to its culprit
All of them get tired –
Of looking this enormous wonder,
Of documenting the lives of the natives,
Of exploiting and exploring –
The people and the caves
This is when I grow tired
Of seeing different people,
By doing peculiar purposes.
From this moment…bats at dusk
Chase darkness
Leaving those foisted caverns
They are gone!
The strangers!
August 1999
From:cbcabalza collection of poems
Wednesday, February 17, 2010
Leveling off the Playing Field
Copyright © 2010 by Chester B. Cabalza. All Rights Reserved.
The Philippines’ Emerging Business Process Outsourcing (BPO)
Market and the Information Technology (IT) Parks
Background
Having the rise of globalization on the economic sphere, the business process outsourcing (BPO) has been one of its salient features. The BPO around the world began as early as 1990s. According to Filipino economists like Magtibay-Ramos, et. al., they confirm that it was only in the early part of the new millennium that outsourcing opportunities gained ground in the Philippines. From Php2 billion in 2000, investment in the BPO industry, it rose to Php11 billion in 2001, then settled to about Php5-7 billion annually in the next four years. The Philippine BPO sector is projected to provide 7-11 percent of the new jobs for the labor force entrants between 2007 and 2010. Meanwhile, it is also estimated that its total workforce size will reach 500,000 to 600,000 in 2010, which is considerable for a single economic activity.
With the influx of outsourcing and offshoring business investments in the Philippines, IT parks have been mushrooming. It is said that technology hubs situated around the globe has various tags attached to it. Some call it Techno Parks, Cyber Parks, or less Science Parks. However, by description, IT Parks foster new business development and technological innovation by leveraging synergies within the cluster environment. Its legal definition, penned by Philippine Economic Zone Authority (PEZA), is that IT Parks are areas developed into a complex that is capable of providing infrastructures and support facilities that are needed by the different IT-based industries.
Legal Bases
• R.A. No. 8749 “amending the Special Economic Zone Act by directly allocating to the municipality or city 2% (out of the 5%) gross tax to be collected from the establishments operating in the ecozone and providing for disturbance compensation for persons to be displaced or evicted by publicly-owned ecozone”
• R.A. No. 8756 “incentivizing the establishment of regional headquarters to encourage investment and operation of multinational companies in the country and to generate more jobs”
• PEZA Resolution No. 99-264 ‘guidelines for the establishing and operation of Information Technology (IT) Parks”
Key Terms
Special Economic Zone
Sec. 4(a), R.A. No. 7916 refers Special Economic Zone (SEZ) as the ECOZONES, which are selected areas with highly developed or which have the potential to be developed into agro-industrial, Industrial tourist/recreational. Commercial, banking, investment and financial centers. An ECOZONE may contain any or all of the following: Industrial Estates (IEs), Export Processing Zones (EPZs), Free Trade Zones, and Tourist/Recreational Centers.
Free Trade Zone
Sec. 4(d), R.A. No. 7916 defines Free Trade Zone as an isolated policed area adjacent to a port of entry (as a seaport) and/or airport where imported goods may be unloaded for immediate transshipment or stored, repacked, sorted, mixed or otherwise manipulated without being subject to import duties. However, movement of these imported goods from the free-trade area to a non-free-trade area in the country shall be subject to import duties.
Enterprises within the zone are granted preferential tax treatment and immigration laws are more lenient.
Business Process Outsourcing
There are seven types of BPO services identified by the Department of Trade and Industry (DTI), these are the following: Contact Center, Back Office, Data Transcription, Animation, Software Development, Engineering Development, and Digital Content. According to DTI (2006), Locsin (2006), and The Computer Language Company Inc. (2006), Contact Center consists of in-bound and outbound voice operation services for the purposes of sales, customer service, technical support, and others.
IT Parks
The IT Parks may be located in any suitable place. But those that are located inside the National Capital Region (NCR) will be restricted to serving only service type projects and no manufacturing operations.
Incentives to the IT Parks in the Country
According to the research paper by Batolata, Min Jeong Lao, et. al., they argue that IT Parks are capable of creating international economic relationships with other countries through foreign investments and outsourcing processes. It provides infrastructure and services for business, particularly in the Information, Communications and Technology (ICT) sectors. It also enables knowledge-transfer not only in the aspect of IT and management but also in cultural diversity.
The Philippines is a newly industrialized emerging economy, however, it is still considered a ‘developing’ country. Hence, cyberzones here, previously under the Export Processing Zone Authority (EPZA), are solely dependent on service sectors, rather than manufacturing and actual technological developments, which has been the turf of mature IT powerhouses in the world.
IT Parks experience sweet successes in the Philippines primarily because investors in cyberparks enjoy substantial benefits offered by the government such as income tax holidays, tax incentives to for certain BPO buildings, granting of permanent resident status for foreign investors, and for those who holds ITH option could actually wave them to accept the immediate availment of 5% gross tax income tax incentive. In gist, the Philippines boosts its cost effectiveness or low labor.
Observations
• Whether the Philippines can sustain its momentum in BPO markets, thus, encouraging colleges and universities to impose English as a medium of instructions in schools.
• The Philippines should not only produce agents for the market but also position itself to manufacturing and production of IT-related softwares in which the country remains to be a laggard compared with India and other leading technological countries.
• The new playing field is hot and opens leverage for our country. We have a young and dynamic population, educated and technologically savvy for the knowledge economy. Hence, the current growth in BPO sector in the Philippines, that is largely driven by the contact or call center subsector has a large share in total BPO employment and revenue, thus is drawing positive economic climate in the country.
•India cannot be divorced from the topic when it comes to the BPO industry. The emerging economy of India is the role model in this kind of transborder industry. The surge in the BPO sector in India resulted to• the well-educated English-speaking students and a group of enterprising local citizens who capitalized on the global shortage of programmers and the high demand for business solutions occurring in the 1990s. Hence, Indian expatriate in the US, especially IT professionals in Silicon Valley, is providing a crucial role in the rapid development of the Indian BPO sector through their investment sectors, partnership with large US software firms which they later on convinced to set up operations in India.
• Apparently, BPO is highly concentrated in mostly urban cities around Makati, Libis Quezon City, Ortigas Center, Alabang, Baguio City, Subic and Clark, and Cebu City. Lately BPO investors realized expansion and plan to tap possible and prospective places from Tuguegarao City and Cabanatuan City in the north to Cagayan de Oro City and Davao City in the south to supply unbeatable talents for the growing worldwide demands.
• In terms of compensation among BPO industries in Asia, the Philippines pays in the middle with an entry level call center earning US$5,547 yearly only while an employee with higher expertise level such as team lead earns an average of $9,153 yearly only - offering the US a labor cost savings of over 80 percent. But salary levels in the Philippines is slightly higher than other Asian countries like India and China. On the other hand, Singapore as a high-end BPO destination, pays the highest in the region with an entry level four times higher than what call center agent working in the Philippines is receiving.
• Tax incentives are made available by the Philippine Board of Investments for certain building and special zones in Makati, Manila, Ortigas, and Fort Bonicacio. The government should help identify these tax incentives for certain buildings and even office units that reside in Special Economic Zones (PEZA) where businesses are allowed to avail special tax breaks in these various parts of the Philippines.
• For other benefits, cyberparks provide IT insfrastructure and manpower which is attractive (in terms of cost) to multinational companies. It generates employment and offer high level training to locals. It catalyzes the commercial and retails business in the surrounding areas. And it creates linkage opportunities in areas such as construction constracts, supplies, materials and food packaging supplies.
• The government allows 100 percent (100%) foreign ownership of firms in the Philippines, with regards to the IT industry, that makes the local investors underdogs, unless the company belongs to the “Big Four” , since it is not easy to penetrate or invest in IT Parks. Hence, it needs heavy investments, and building up of infrastructures and systems.
• More so, the true essence of IT Parks in the Philippines, serves as economic zones. The enterprises that are located inside these zones are required to 100% of its production, but PEZA approves only 30% of the production to be sold in the local market.
• Lastly, The BPO market and IT parks in the Philippines are generating dollar inflows through foreign investments and outsourcing made by the foreigners. This in favorable to the country's service sector industry and integral to economic security in the Philippine economy.
References:
Bartolata, Christine Kim, Min Jeong Lao, et. al., Analysis of Information technology (IT) Parks in the Philippines (Specifically, Exposition of Philippine IT Parks and their Economic Effects on the Philippines , httt://iskwiki.upd.edu.ph/index.ph/IT_Parks
Cabalza, Chester, The Boon of the Business Process Outsourcing in the (BPO) in the Philippines, http://cbclawmatters.blogspot.com/2009/10/boon-of-business-process-outsourcing.html
Magtibay-Ramos Nedelyn, Estrada Gemma, Felipe Jesus. (March 2005), An Analysis of the Philippine Business Process Outsourcing Industry, ERD Working Paper, Series No. 93, Asian Development Bank: Mandaluyong City, Philippines.
The Philippines’ Emerging Business Process Outsourcing (BPO)
Market and the Information Technology (IT) Parks
Background
Having the rise of globalization on the economic sphere, the business process outsourcing (BPO) has been one of its salient features. The BPO around the world began as early as 1990s. According to Filipino economists like Magtibay-Ramos, et. al., they confirm that it was only in the early part of the new millennium that outsourcing opportunities gained ground in the Philippines. From Php2 billion in 2000, investment in the BPO industry, it rose to Php11 billion in 2001, then settled to about Php5-7 billion annually in the next four years. The Philippine BPO sector is projected to provide 7-11 percent of the new jobs for the labor force entrants between 2007 and 2010. Meanwhile, it is also estimated that its total workforce size will reach 500,000 to 600,000 in 2010, which is considerable for a single economic activity.
With the influx of outsourcing and offshoring business investments in the Philippines, IT parks have been mushrooming. It is said that technology hubs situated around the globe has various tags attached to it. Some call it Techno Parks, Cyber Parks, or less Science Parks. However, by description, IT Parks foster new business development and technological innovation by leveraging synergies within the cluster environment. Its legal definition, penned by Philippine Economic Zone Authority (PEZA), is that IT Parks are areas developed into a complex that is capable of providing infrastructures and support facilities that are needed by the different IT-based industries.
Legal Bases
• R.A. No. 8749 “amending the Special Economic Zone Act by directly allocating to the municipality or city 2% (out of the 5%) gross tax to be collected from the establishments operating in the ecozone and providing for disturbance compensation for persons to be displaced or evicted by publicly-owned ecozone”
• R.A. No. 8756 “incentivizing the establishment of regional headquarters to encourage investment and operation of multinational companies in the country and to generate more jobs”
• PEZA Resolution No. 99-264 ‘guidelines for the establishing and operation of Information Technology (IT) Parks”
Key Terms
Special Economic Zone
Sec. 4(a), R.A. No. 7916 refers Special Economic Zone (SEZ) as the ECOZONES, which are selected areas with highly developed or which have the potential to be developed into agro-industrial, Industrial tourist/recreational. Commercial, banking, investment and financial centers. An ECOZONE may contain any or all of the following: Industrial Estates (IEs), Export Processing Zones (EPZs), Free Trade Zones, and Tourist/Recreational Centers.
Free Trade Zone
Sec. 4(d), R.A. No. 7916 defines Free Trade Zone as an isolated policed area adjacent to a port of entry (as a seaport) and/or airport where imported goods may be unloaded for immediate transshipment or stored, repacked, sorted, mixed or otherwise manipulated without being subject to import duties. However, movement of these imported goods from the free-trade area to a non-free-trade area in the country shall be subject to import duties.
Enterprises within the zone are granted preferential tax treatment and immigration laws are more lenient.
Business Process Outsourcing
There are seven types of BPO services identified by the Department of Trade and Industry (DTI), these are the following: Contact Center, Back Office, Data Transcription, Animation, Software Development, Engineering Development, and Digital Content. According to DTI (2006), Locsin (2006), and The Computer Language Company Inc. (2006), Contact Center consists of in-bound and outbound voice operation services for the purposes of sales, customer service, technical support, and others.
IT Parks
The IT Parks may be located in any suitable place. But those that are located inside the National Capital Region (NCR) will be restricted to serving only service type projects and no manufacturing operations.
Incentives to the IT Parks in the Country
According to the research paper by Batolata, Min Jeong Lao, et. al., they argue that IT Parks are capable of creating international economic relationships with other countries through foreign investments and outsourcing processes. It provides infrastructure and services for business, particularly in the Information, Communications and Technology (ICT) sectors. It also enables knowledge-transfer not only in the aspect of IT and management but also in cultural diversity.
The Philippines is a newly industrialized emerging economy, however, it is still considered a ‘developing’ country. Hence, cyberzones here, previously under the Export Processing Zone Authority (EPZA), are solely dependent on service sectors, rather than manufacturing and actual technological developments, which has been the turf of mature IT powerhouses in the world.
IT Parks experience sweet successes in the Philippines primarily because investors in cyberparks enjoy substantial benefits offered by the government such as income tax holidays, tax incentives to for certain BPO buildings, granting of permanent resident status for foreign investors, and for those who holds ITH option could actually wave them to accept the immediate availment of 5% gross tax income tax incentive. In gist, the Philippines boosts its cost effectiveness or low labor.
Observations
• Whether the Philippines can sustain its momentum in BPO markets, thus, encouraging colleges and universities to impose English as a medium of instructions in schools.
• The Philippines should not only produce agents for the market but also position itself to manufacturing and production of IT-related softwares in which the country remains to be a laggard compared with India and other leading technological countries.
• The new playing field is hot and opens leverage for our country. We have a young and dynamic population, educated and technologically savvy for the knowledge economy. Hence, the current growth in BPO sector in the Philippines, that is largely driven by the contact or call center subsector has a large share in total BPO employment and revenue, thus is drawing positive economic climate in the country.
•India cannot be divorced from the topic when it comes to the BPO industry. The emerging economy of India is the role model in this kind of transborder industry. The surge in the BPO sector in India resulted to• the well-educated English-speaking students and a group of enterprising local citizens who capitalized on the global shortage of programmers and the high demand for business solutions occurring in the 1990s. Hence, Indian expatriate in the US, especially IT professionals in Silicon Valley, is providing a crucial role in the rapid development of the Indian BPO sector through their investment sectors, partnership with large US software firms which they later on convinced to set up operations in India.
• Apparently, BPO is highly concentrated in mostly urban cities around Makati, Libis Quezon City, Ortigas Center, Alabang, Baguio City, Subic and Clark, and Cebu City. Lately BPO investors realized expansion and plan to tap possible and prospective places from Tuguegarao City and Cabanatuan City in the north to Cagayan de Oro City and Davao City in the south to supply unbeatable talents for the growing worldwide demands.
• In terms of compensation among BPO industries in Asia, the Philippines pays in the middle with an entry level call center earning US$5,547 yearly only while an employee with higher expertise level such as team lead earns an average of $9,153 yearly only - offering the US a labor cost savings of over 80 percent. But salary levels in the Philippines is slightly higher than other Asian countries like India and China. On the other hand, Singapore as a high-end BPO destination, pays the highest in the region with an entry level four times higher than what call center agent working in the Philippines is receiving.
• Tax incentives are made available by the Philippine Board of Investments for certain building and special zones in Makati, Manila, Ortigas, and Fort Bonicacio. The government should help identify these tax incentives for certain buildings and even office units that reside in Special Economic Zones (PEZA) where businesses are allowed to avail special tax breaks in these various parts of the Philippines.
• For other benefits, cyberparks provide IT insfrastructure and manpower which is attractive (in terms of cost) to multinational companies. It generates employment and offer high level training to locals. It catalyzes the commercial and retails business in the surrounding areas. And it creates linkage opportunities in areas such as construction constracts, supplies, materials and food packaging supplies.
• The government allows 100 percent (100%) foreign ownership of firms in the Philippines, with regards to the IT industry, that makes the local investors underdogs, unless the company belongs to the “Big Four” , since it is not easy to penetrate or invest in IT Parks. Hence, it needs heavy investments, and building up of infrastructures and systems.
• More so, the true essence of IT Parks in the Philippines, serves as economic zones. The enterprises that are located inside these zones are required to 100% of its production, but PEZA approves only 30% of the production to be sold in the local market.
• Lastly, The BPO market and IT parks in the Philippines are generating dollar inflows through foreign investments and outsourcing made by the foreigners. This in favorable to the country's service sector industry and integral to economic security in the Philippine economy.
References:
Bartolata, Christine Kim, Min Jeong Lao, et. al., Analysis of Information technology (IT) Parks in the Philippines (Specifically, Exposition of Philippine IT Parks and their Economic Effects on the Philippines , httt://iskwiki.upd.edu.ph/index.ph/IT_Parks
Cabalza, Chester, The Boon of the Business Process Outsourcing in the (BPO) in the Philippines, http://cbclawmatters.blogspot.com/2009/10/boon-of-business-process-outsourcing.html
Magtibay-Ramos Nedelyn, Estrada Gemma, Felipe Jesus. (March 2005), An Analysis of the Philippine Business Process Outsourcing Industry, ERD Working Paper, Series No. 93, Asian Development Bank: Mandaluyong City, Philippines.
Tuesday, February 16, 2010
Best Information Technology Parks in the Philippines
Copyright © 2010 by Chester B. Cabalza. All Rights Reserved.
The Philippines is now a hot player and emerging powerhouse in terms of the Information and Communication Technologies (ICTs) around the globe. The country is currently ranked as the "number one BPO destination in the world," and considered as the “texting” or SMS capital worldwide. It is also the "social networking" capital around the globe. One of the most preferred locators for Business Process Outsourcing (BPO). Before the facebook revolution in Arab and African countries, the Philippinies revolutionized "people power" by using the opportunities of technology using the SMS, blogs and internet during the EDSA II Revolution. The Philippines was cited by Global New Economy Index of the Meta Group in 2002 for its “excellent availability” of skilled IT workers with compliment for the Filipinos’ technical and business skills, such as in mainframes, minicomputers, and microcomputers, and for their technical and business skills in ICT projects. To many nationalities around the world, Pinoys are considered one of the best English speakers in Asia. And now “land lords” to all firms and foreign investments related to IT-businesses in the country.
It is said that technology hubs situated around the globe has various tags attached to it. Some call it Techno Parks, Cyber Parks, or less Science Parks. However, by description, IT Parks, which I fondly call Cyberparks, foster new business development and technological innovation by leveraging synergies within the cluster environment. Its legal definition, penned by the Philippine Economic Zone Authority (PEZA), is that IT Parks are areas developed into a complex that is capable of providing infrastructures and support facilities that are needed by the different IT-based industries.
According to the research paper by Batolata, Min Jeong Lao, et. al., they argue that IT Parks are capable of creating international economic relationships with other countries through foreign investments and outsourcing processes. It provides infrastructure and services for business, particularly in the ICT sectors. It also enables knowledge-transfer not only in the aspect of IT and management but also in cultural diversity.
The Philippines is a newly industrialized emerging economy, however, it’s still considered a ‘developing’ country. Hence, cyberzones here, previously under the Export Processing Zone Authority (EPZA), are solely dependent on service sectors, rather than manufacturing and actual technological developments, which has been the turf of mature IT powerhouses in the world.
Cyberparks experience sweet successes in the Philippines primarily because investors in technohubs enjoy substantial benefits offered by the government such as income tax holidays, tax incentives for certain BPO buildings, granting of permanent resident status for foreign investors, and for those who hold ITH option could actually wave them to accept the immediate availment of 5% gross tax income tax incentive. In gist, the Philippines boosts its cost effectiveness or low labor costs, with skilled English speakers who are akin to western cultures. These serve as best reasons why foreigners invest in our IT-related market, as articulated by some researchers.
However, exceptions on cyberparks where ICT are booming vast IT Parks would be PEZA buildings in urban cities such as Makati, Ortigas, Manila, and Fort Bonifacio. Here, tax incentives are made available by the Philippine Board of Investments for certain skyscrapers standing within prime Business Central Districts (BCDs).
Without much ado, below is the list of the Top Techno Parks in the Philippines, ranked by the author in the following order:
1. McKinley Hills Cyberpark (Taguig City) – this 14-hectare posh property and emerging ultra-modern technohub built by Megaworld Corporation inside the extensive 50-hectare mixed-use area of McKinley Hill firmly stands at the lucrative Global City in Fort Bonifacio. The newly-inaugurated ICT Park is fast-attracting top BPO offices and multinational companies (MNCs) because office edifices here are designed conscientiously to fit locators’ specific needs. In a Philstar article, it has reported that investors are pleased at the big floor spaces and convenient dorm residence provided for employees. Likewise, those from older business districts have transferred to McKinley Hill Cyberpark to include BPO firms such as Thomson Reuters, Accenture, CAISTA, et. al. Companies like Lawson and Erricson has also moved in to the new block, including consumer goods companies such as Colgate-Palmolive, Del Monte Fresh, and other multinationals, including Transcosmos, Ingram Micro, Factset, and more.
2. Eastwood City Cyberpark (Quezon City) – the pioneer IT Park in the Philippines is still not threatened by mushrooming cyberparks in the metropolis. It still enjoys a continued growth propelled by outsourcing and offshoring (O&O) sectors. In the study wrote by Batolata, Min Jeong Lao, et. al., they deem that Eastwood City Cyberpark has become a success because of several components: its strength on infrastructures, telecommunication, power, water and sewage system. In my observation, Eastwood has become a trendsetter in live-work-play community within a greater community. Its rhythm is alive and kicking, hosting MNC and BPO offices, while burgeoning skyscrapers flunk within its compound, offering world class entertainment, restaurants, shops, malls, world class cinemas, celebrated Walk of Fame for Philippine celebrities, and luxurious commercial and residential properties.
3. UP-Ayalaland TechnoHub (Quezon City) – the University of the Philippines’ answer to Stanford University’s Silicon Valley or Cambridge University’s MIT’s Route 28. It’s a fact that world-class universities should foster their own Science & technology (S&T) parks, that’s adjacent to their campuses, to provide a venue for industry-academe collaboration in Research and Development (R&D) and to encourage students as well as professors for significant technological innovations. This laboratory techno hub should be instrumental for the country’s national university to be at par with leading research universities around the world and pursue R&D and other technology-oriented programs to produce IT programmers and not the usual service-oriented call center agents.
4. Asiatown Information Technology Park (Cebu City) – the queen city of the south is now ready to take off and be part of the playing field in ICT revolution. This is paralleled to the fulfillment of the current administration’s cyber corridor projects in the Visayas. The ICT milestone in Cebu sits within a 24-hectare mixed use business park, envisioned to attract locators in the information technology services. Asiatown IT Park began in 2001 and opened its doors in 2002 where lucrative BPO offices and other conglomerates were established. According to the report of Palaubsanon, this hugely successful IT Park in Cebu was formerly the Lahug airport but was transformed into the flagship project of Cebu Property Ventures and Development Corporation as the first IT Park accredited by the PEZA in the Visayas and Mindanao. It hosts a total of 44 IT, IT-enabled and BPOs with direct employment of 13,500 employees and an estimated 5,000 workforce for its support services.
5. South Forbes Cyberpark (Santa Rosa City) – the rapid development in the suburbs is coupled with the creation of cyberparks to match with Santa Rosa City’s new status symbol. It’s now hailed as one of the richest cities in Southern Tagalog. The hubs of multinational manufacturing giants like Coca-Cola and Toyota. It’s the home and new Eden for the assembly of world-renowned automakers such as the Ford, Honda, Mazda, Nissan, and Isuzu, taking the shoes of Thailand and Detroit, USA. Based from Philstar’s report, the flourishing exclusive village has its very own Cyberpark that will feature world-class BTS buildings suited for BPOs and contact centers that will enable residents and their adult children to build careers within the city confines.
6. Northgate Cyberzone (Muntinlupa City) – Alabang’s answer to the burgeoning BPO opportunities. In its website, this high-end property covers 18.7-hectares with Cyberzone area located within Filinvest Corporate City. It’s a PEZA registered IT zone which is designed, mastered-planned, and built around the needs of technology-based companies engaged in software design and multimedia, call centers, e-commerce, banking and financial services, as well as other IT support businesses. It provides office buildings and spaces for lease and built-to-suit (BTS) packages. Under the BTS arrangement, companies can custom-build according to their specifications and operational requirements in an expedient and cost-effective manner.
7. Robinsons Cybergate Center (Mandaluyong City) – a mixed-use cyberhub which is placed at the heart of the sprawling metropolis in the tiger city of Mandaluyong and developed by Robinsons Land. It houses three cybergate towers and other new condominiums. The burgeoning complex is found in corner Pioneer Road, at the mid-artery of the longest road in EDSA. It’s now home to several BPO offices such as the well-known Accenture contact services.
8. Bigfoot Information Technology Park (Lapu-Lapu City) – Filipino animators are known worldwide, some of whom has collaborated with prominent animation studios in Hollywood. Hence, the Philippines is fast gaining recognition as a cost-efficient location for backroom operations and other I.T.-enabled services such as animation, transcription and software development. It’s indeed proper that an offshore studio is placed at the first class and highly-urbanized city of Lapu-Lapu in Mactan Island to host Bigfoot Entertainment, a parent company of Bigfoot Productions, Bigfoot Production Services, the International Academy of Film and Television (IAFT), and Bigfoot Partners that provides facilities, services and training to international filmmakers. This studio is important since the country today has a growing number of young and award-winning independent film-makers who achieve great accolades in international and prestigious film festivals around the world.
9. Subic Science Park (SMBA) – the Presidential Commission for the Central Luzon Growth Corridor (PCCLGC) deems that this special ecozone situated at the former US Naval base, now called the SBMA, is an excellent site for biotech and science parks since there are available skilled and easily trained workers in the area. Many Taiwanese and Korean investors are bullish enough of the opportunities available at the reserved 16 hectares of beautiful investment land. More so, current study shows that SBMA’s exports had averaged a billion dollars since 1997. Cognizant to the grand opening of its Science Park, PLDT has teamed up with SBMA, to put Subic at the frontlines of the country's ICT sector which includes new investments worth more than P40-million, consisting of fiber optics cable that connects Subic Bay to Manila and the entire Luzon grid, and the P20-million Innovation Laboratory (Innolab) of Subictel. Lastly, Subic Bay's ICT infrastructures will cater to BPO operations, retail and manufacturing businesses, and even the hotel industry, that will give add-on to the ballooning investments in this prime ecozone.
10. Ayala, Damosa, Robinsons IT Parks (Davao City) – the largest city and “crown jewel” in Mindanao opens its investment horizons to ICT opportunities, playing hardly its card as the third most significant urban center in the country. While maintaining its competitiveness, three top investors are developing its ICT Parks in Davao to build BPO offices and venture into the new challenges of techno-entrepreneurship. The Ayala Land and Anflocor made a venture to build Abreeza, a P5 billion three-storey ultra-modern designed mall, two BPO offices, a hotel, and residential and commercial buildings. While Damosa Land Incorporated, has 23 hectares of prime lots located along J.P. Laurel Avenue which would accommodate two IT buildings, data building, commercial and a utility building, inspired after Cagayan de Oro City built its first ICT Park in Mindanao. Lastly, Robinsons Davao’s cutting-edge ICT investments is leveling off the playing field by putting up a two level shopping mall and building IT or BPO facilities.
The Philippines is now a hot player and emerging powerhouse in terms of the Information and Communication Technologies (ICTs) around the globe. The country is currently ranked as the "number one BPO destination in the world," and considered as the “texting” or SMS capital worldwide. It is also the "social networking" capital around the globe. One of the most preferred locators for Business Process Outsourcing (BPO). Before the facebook revolution in Arab and African countries, the Philippinies revolutionized "people power" by using the opportunities of technology using the SMS, blogs and internet during the EDSA II Revolution. The Philippines was cited by Global New Economy Index of the Meta Group in 2002 for its “excellent availability” of skilled IT workers with compliment for the Filipinos’ technical and business skills, such as in mainframes, minicomputers, and microcomputers, and for their technical and business skills in ICT projects. To many nationalities around the world, Pinoys are considered one of the best English speakers in Asia. And now “land lords” to all firms and foreign investments related to IT-businesses in the country.
It is said that technology hubs situated around the globe has various tags attached to it. Some call it Techno Parks, Cyber Parks, or less Science Parks. However, by description, IT Parks, which I fondly call Cyberparks, foster new business development and technological innovation by leveraging synergies within the cluster environment. Its legal definition, penned by the Philippine Economic Zone Authority (PEZA), is that IT Parks are areas developed into a complex that is capable of providing infrastructures and support facilities that are needed by the different IT-based industries.
According to the research paper by Batolata, Min Jeong Lao, et. al., they argue that IT Parks are capable of creating international economic relationships with other countries through foreign investments and outsourcing processes. It provides infrastructure and services for business, particularly in the ICT sectors. It also enables knowledge-transfer not only in the aspect of IT and management but also in cultural diversity.
The Philippines is a newly industrialized emerging economy, however, it’s still considered a ‘developing’ country. Hence, cyberzones here, previously under the Export Processing Zone Authority (EPZA), are solely dependent on service sectors, rather than manufacturing and actual technological developments, which has been the turf of mature IT powerhouses in the world.
Cyberparks experience sweet successes in the Philippines primarily because investors in technohubs enjoy substantial benefits offered by the government such as income tax holidays, tax incentives for certain BPO buildings, granting of permanent resident status for foreign investors, and for those who hold ITH option could actually wave them to accept the immediate availment of 5% gross tax income tax incentive. In gist, the Philippines boosts its cost effectiveness or low labor costs, with skilled English speakers who are akin to western cultures. These serve as best reasons why foreigners invest in our IT-related market, as articulated by some researchers.
However, exceptions on cyberparks where ICT are booming vast IT Parks would be PEZA buildings in urban cities such as Makati, Ortigas, Manila, and Fort Bonifacio. Here, tax incentives are made available by the Philippine Board of Investments for certain skyscrapers standing within prime Business Central Districts (BCDs).
Without much ado, below is the list of the Top Techno Parks in the Philippines, ranked by the author in the following order:
1. McKinley Hills Cyberpark (Taguig City) – this 14-hectare posh property and emerging ultra-modern technohub built by Megaworld Corporation inside the extensive 50-hectare mixed-use area of McKinley Hill firmly stands at the lucrative Global City in Fort Bonifacio. The newly-inaugurated ICT Park is fast-attracting top BPO offices and multinational companies (MNCs) because office edifices here are designed conscientiously to fit locators’ specific needs. In a Philstar article, it has reported that investors are pleased at the big floor spaces and convenient dorm residence provided for employees. Likewise, those from older business districts have transferred to McKinley Hill Cyberpark to include BPO firms such as Thomson Reuters, Accenture, CAISTA, et. al. Companies like Lawson and Erricson has also moved in to the new block, including consumer goods companies such as Colgate-Palmolive, Del Monte Fresh, and other multinationals, including Transcosmos, Ingram Micro, Factset, and more.
2. Eastwood City Cyberpark (Quezon City) – the pioneer IT Park in the Philippines is still not threatened by mushrooming cyberparks in the metropolis. It still enjoys a continued growth propelled by outsourcing and offshoring (O&O) sectors. In the study wrote by Batolata, Min Jeong Lao, et. al., they deem that Eastwood City Cyberpark has become a success because of several components: its strength on infrastructures, telecommunication, power, water and sewage system. In my observation, Eastwood has become a trendsetter in live-work-play community within a greater community. Its rhythm is alive and kicking, hosting MNC and BPO offices, while burgeoning skyscrapers flunk within its compound, offering world class entertainment, restaurants, shops, malls, world class cinemas, celebrated Walk of Fame for Philippine celebrities, and luxurious commercial and residential properties.
3. UP-Ayalaland TechnoHub (Quezon City) – the University of the Philippines’ answer to Stanford University’s Silicon Valley or Cambridge University’s MIT’s Route 28. It’s a fact that world-class universities should foster their own Science & technology (S&T) parks, that’s adjacent to their campuses, to provide a venue for industry-academe collaboration in Research and Development (R&D) and to encourage students as well as professors for significant technological innovations. This laboratory techno hub should be instrumental for the country’s national university to be at par with leading research universities around the world and pursue R&D and other technology-oriented programs to produce IT programmers and not the usual service-oriented call center agents.
4. Asiatown Information Technology Park (Cebu City) – the queen city of the south is now ready to take off and be part of the playing field in ICT revolution. This is paralleled to the fulfillment of the current administration’s cyber corridor projects in the Visayas. The ICT milestone in Cebu sits within a 24-hectare mixed use business park, envisioned to attract locators in the information technology services. Asiatown IT Park began in 2001 and opened its doors in 2002 where lucrative BPO offices and other conglomerates were established. According to the report of Palaubsanon, this hugely successful IT Park in Cebu was formerly the Lahug airport but was transformed into the flagship project of Cebu Property Ventures and Development Corporation as the first IT Park accredited by the PEZA in the Visayas and Mindanao. It hosts a total of 44 IT, IT-enabled and BPOs with direct employment of 13,500 employees and an estimated 5,000 workforce for its support services.
5. South Forbes Cyberpark (Santa Rosa City) – the rapid development in the suburbs is coupled with the creation of cyberparks to match with Santa Rosa City’s new status symbol. It’s now hailed as one of the richest cities in Southern Tagalog. The hubs of multinational manufacturing giants like Coca-Cola and Toyota. It’s the home and new Eden for the assembly of world-renowned automakers such as the Ford, Honda, Mazda, Nissan, and Isuzu, taking the shoes of Thailand and Detroit, USA. Based from Philstar’s report, the flourishing exclusive village has its very own Cyberpark that will feature world-class BTS buildings suited for BPOs and contact centers that will enable residents and their adult children to build careers within the city confines.
6. Northgate Cyberzone (Muntinlupa City) – Alabang’s answer to the burgeoning BPO opportunities. In its website, this high-end property covers 18.7-hectares with Cyberzone area located within Filinvest Corporate City. It’s a PEZA registered IT zone which is designed, mastered-planned, and built around the needs of technology-based companies engaged in software design and multimedia, call centers, e-commerce, banking and financial services, as well as other IT support businesses. It provides office buildings and spaces for lease and built-to-suit (BTS) packages. Under the BTS arrangement, companies can custom-build according to their specifications and operational requirements in an expedient and cost-effective manner.
7. Robinsons Cybergate Center (Mandaluyong City) – a mixed-use cyberhub which is placed at the heart of the sprawling metropolis in the tiger city of Mandaluyong and developed by Robinsons Land. It houses three cybergate towers and other new condominiums. The burgeoning complex is found in corner Pioneer Road, at the mid-artery of the longest road in EDSA. It’s now home to several BPO offices such as the well-known Accenture contact services.
8. Bigfoot Information Technology Park (Lapu-Lapu City) – Filipino animators are known worldwide, some of whom has collaborated with prominent animation studios in Hollywood. Hence, the Philippines is fast gaining recognition as a cost-efficient location for backroom operations and other I.T.-enabled services such as animation, transcription and software development. It’s indeed proper that an offshore studio is placed at the first class and highly-urbanized city of Lapu-Lapu in Mactan Island to host Bigfoot Entertainment, a parent company of Bigfoot Productions, Bigfoot Production Services, the International Academy of Film and Television (IAFT), and Bigfoot Partners that provides facilities, services and training to international filmmakers. This studio is important since the country today has a growing number of young and award-winning independent film-makers who achieve great accolades in international and prestigious film festivals around the world.
9. Subic Science Park (SMBA) – the Presidential Commission for the Central Luzon Growth Corridor (PCCLGC) deems that this special ecozone situated at the former US Naval base, now called the SBMA, is an excellent site for biotech and science parks since there are available skilled and easily trained workers in the area. Many Taiwanese and Korean investors are bullish enough of the opportunities available at the reserved 16 hectares of beautiful investment land. More so, current study shows that SBMA’s exports had averaged a billion dollars since 1997. Cognizant to the grand opening of its Science Park, PLDT has teamed up with SBMA, to put Subic at the frontlines of the country's ICT sector which includes new investments worth more than P40-million, consisting of fiber optics cable that connects Subic Bay to Manila and the entire Luzon grid, and the P20-million Innovation Laboratory (Innolab) of Subictel. Lastly, Subic Bay's ICT infrastructures will cater to BPO operations, retail and manufacturing businesses, and even the hotel industry, that will give add-on to the ballooning investments in this prime ecozone.
10. Ayala, Damosa, Robinsons IT Parks (Davao City) – the largest city and “crown jewel” in Mindanao opens its investment horizons to ICT opportunities, playing hardly its card as the third most significant urban center in the country. While maintaining its competitiveness, three top investors are developing its ICT Parks in Davao to build BPO offices and venture into the new challenges of techno-entrepreneurship. The Ayala Land and Anflocor made a venture to build Abreeza, a P5 billion three-storey ultra-modern designed mall, two BPO offices, a hotel, and residential and commercial buildings. While Damosa Land Incorporated, has 23 hectares of prime lots located along J.P. Laurel Avenue which would accommodate two IT buildings, data building, commercial and a utility building, inspired after Cagayan de Oro City built its first ICT Park in Mindanao. Lastly, Robinsons Davao’s cutting-edge ICT investments is leveling off the playing field by putting up a two level shopping mall and building IT or BPO facilities.
Tuesday, February 9, 2010
You're the Song
Copyright © 2010 by Chester B Cabalza
Upon seeing you at first
I know you have the best
Song to my heart, the zest
An inspiration to my quest
Yes, I stampede so subtle
As I hear the songbird settle
In a made of rock castle
A queen admires kings in battle
Tarry, do I have to reveal?
My heart needs to deal
So I have yet to seal
And hope in you with zeal
February 08 1997
Upon seeing you at first
I know you have the best
Song to my heart, the zest
An inspiration to my quest
Yes, I stampede so subtle
As I hear the songbird settle
In a made of rock castle
A queen admires kings in battle
Tarry, do I have to reveal?
My heart needs to deal
So I have yet to seal
And hope in you with zeal
February 08 1997
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