The Philippines As An Investment Destination: Incentives Available Under The Bases Conversion And Development Act, Special Economic Zone Act, And Export Development Act

by Jesus M. Manalastas and Michelle S. Serrano^*

One of the fundamental policies under the Philippine Constitution is the recognition "of the indispensable role of the private sector" in the economic development of the country, and the need to encourage private enterprise through the grant of incentives for needed investments.ⁱ That policy is underscored by three important pieces of legislation, namely, the Bases Conversion and Development Act (R.A. No. 7227), the Special Economic Zone Act of 1995 (R.A. No. 7916), and the Export Development Act of 1994 (R.A. No. 7844).

This law seeks to accelerate the conversion of the Clark and Subic military reservations into alternative and more economically viable areas.ⁱⁱ The Subic military reservation has been converted into the Subic Special Economic Zone ("Subic Ecozone") which is now a self-sustained industrial, commercial, financial and investment center designed to attract and promote productive