National Unity Party seeks New Clark City advanced industries zone

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New Clark City industries zone

Highlights

House Bill No. 11758 proposes an advanced industries zone in New Clark City with a minimum locator investment of P15 billion and project expansions at P5 billion.
Qualified enterprises will receive a seven-year income tax holiday, then choose between a 5% special corporate income tax on gross income earned or 20% corporate tax with enhanced deductions.
The 1,350-hectare zone is projected to create 130,000–190,000 high-skilled jobs and provide P50 billion in AIDA capital stock, with separate customs territory status enabling duty-free imports.

Bill framework and investment terms

As reported by BusinessWorld Online, the National Unity Party on Monday filed House Bill No. 11758, or the proposed Advanced Industries Development Act, to establish an advanced industries zone in New Clark City and create the Advanced Industries Development Authority, or AIDA, as an independent government entity with fiscal and administrative autonomy.

NUP Chairperson and Antipolo City Rep. Ronaldo V. Puno said during a media briefing that each locator in the proposed zone would need to put up a minimum investment of P15 billion, excluding property and land costs. He said the 1,350-hectare area could host hundreds of businesses, while registered project expansions would require at least P5 billion in investment.

The bill targets sectors including semiconductor design and fabrication, advanced packaging, robotics, precision engineering, AI data centers, high-performance computing, critical mineral processing and scientific research. To attract investors, qualified enterprises would receive a seven-year income tax holiday, followed by a choice between a 5% special corporate income tax on gross income earned or a 20% corporate income tax under an enhanced deductions regime.

Industrial and regional impact

The proposed zone is expected to generate at least 150,000 high-skilled jobs, according to Mr. Puno, with roles aimed at engineers, technicians and researchers rather than lower-skilled workers. Projections cited in the bill place potential employment at between 130,000 and 190,000 positions.

Locators would also benefit from the area’s proposed status as a separate customs territory, allowing duty-free and tax-free importation and storage of capital equipment, raw materials and goods. For operations, AIDA would receive P50 billion in authorized capital stock, while the National Treasury would provide an initial annual appropriation of P1 billion for five years.

Mr. Puno said the zone would have its own power and water systems to support industrial activity without depriving nearby communities of resources. If passed, the measure would add a new policy vehicle for the Philippines' push to capture more investment in advanced manufacturing and digital infrastructure.

Our earlier article on Philippine sovereign bond reforms explained how the shift in bond pricing conventions and planned index inclusion could broaden the investor base and improve liquidity. It also noted that market modernization alone won’t automatically translate into more factory investment or productivity gains without credible fiscal policy, deeper corporate capital markets, and improvements in infrastructure, governance, and the overall business environment.

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