Peza developing halal-focused economic zone

MANILA, Philippines — The Philippine Economic Zone Authority (Peza) is set to establish a halal-focused economic zone, aiming to attract investors and boost trade with Muslim-majority countries in Southeast Asia and the Middle East.

Aleem Guiapal, group manager of Peza’s promotions arm, said the planned ecozone would host only halal-certified companies, similar to hubs in Malaysia (Penang), Brunei and the United Arab Emirates.

This ecozone will serve as a dedicated hub for production, certification and export of halal goods.

“It’s really a good opportunity because the gap is big,” Guiapal said, citing the Bangsamoro region’s 4.5 million-strong population and the broader Muslim segment in the Philippines, which accounts for roughly 6 percent of the national population.

READ: DTI establishes new halal development office

For Guiapal, building a halal-focused ecozone would help manufacturers not only serve the Philippine market but also tap regional markets more efficiently, given Mindanao’s proximity to Indonesia and Malaysia.

Interest in Philippine-made Halal products is already strong, as Guiapal noted that a trade mission to Saudi Arabia generated $103.5 million in sales, the largest on record for the segment.

The project aligns with the Philippine Halal Industry Development Strategic Plan, which targets P230 billion in investment, 120,000 jobs, and 20 percent annual growth in Halal output.

READ: Gov’t readies halal industry dev’t strategy

Perks

Guiapal said both locators and developers have already expressed interest in the ecozone.

Once operational, it will house halal certification services to streamline processes for companies.

Peza locators in the halal ecozone will be eligible for the same incentives as other registered companies. These include an income tax holiday of four to seven years and the option of a 5-percent special corporate income tax or enhanced deductions for up to 10 years.

READ: DTI eyes halal sales of nearly P16-B in 2025

The government’s push comes as the Department of Trade and Industry was allocated roughly P10 billion this year for halal development.

This year also marks the midpoint of the Philippines’ plan to become a premier halal hub in the Asia-Pacific by 2028. /dda