In an effort to bolster the pharmaceutical sector, President Ferdinand Marcos Jr. signed into law the CREATE MORE Act, which will further enhance the investment landscape for all ventures into the country, including potential investors in the upcoming pharmaceutical economic zones (pharma zones) across the nation.
The law, signed on November 11, 2024, aims to create a more business-friendly environment that can attract local and foreign investments while generating job opportunities. President Marcos Jr. highlighted that the law is a significant step forward in his administration’s agenda to foster industrial growth and economic inclusivity.
The CREATE MORE Act builds on the previous CREATE Act, introducing a range of tax incentives designed to make the Philippines a competitive destination for pharmaceutical companies. Key provisions include extended income tax holidays and enhanced deductions for operational expenses, particularly power costs, critical for energy-intensive pharmaceutical manufacturing. The President emphasized that these provisions are pivotal in creating a thriving business environment to grow and innovate.
The Act extends income tax holidays for pharmaceutical companies, allowing them to benefit from reduced tax burdens during their crucial early years of operation. This extended relief is essential for new entrants in the pharmaceutical market, enabling them to allocate more resources toward product development. Additionally, the law increases deductions on operational expenses such as power costs by 100 percent, significantly lowering production costs and allowing companies to invest more in research and development. President Marcos Jr. expressed confidence that these measures would position the Philippines as a regional leader in pharmaceutical manufacturing.
Strategically designed to attract both local and foreign investments into the pharmaceutical sector, the CREATE MORE Act offers a more predictable and attractive tax regime. President Marcos Jr. noted that the law benefits from valuable insights shared by international partners during his official trips abroad.
“The signing of the CREATE MORE Act is a resounding testament of our commitment to make the Philippines the destination of choice for investments,” the President said during the ceremonial signing. “Their feedback has enriched this legislation, a reflection of our resolve to foster a climate where businesses will flourish and continue to meaningfully contribute to the Philippine economy,” he added.
PEZA Director General Tereso Panga lauded the signing of the new law. “CREATE MORE Act empowers PEZA and its mandate to support FDI-driven exports, job creation, and sustainable economic growth, helping build a globally competitive and inclusive Philippines. We look forward to working with stakeholders to maximize these benefits and drive transformative impact across the nation,” he said.
In a separate interview, Panga noted that the Act will reinforce the country’s role in becoming an investment destination in the ASEAN region. “We can now offer the most generous incentives package [for investors] across ASEAN, gawa nitong pag-enact nitong CREATE MORE sa administration ni President Marcos… Malaking attraction po ito sa mga mamumuhunan,” he explained.
With the establishment of pharma zones under the CREATE MORE framework, job creation is expected to rise significantly. As pharmaceutical companies set up operations in these ecozones, they will create numerous job opportunities for local workers, aligning with President Marcos Jr.’s vision of generating quality employment for Filipinos. President Marcos Jr. also stressed that these efforts will improve the accessibility and affordability of medicines for all, advancing the overall healthcare system in the country.”
