House Bill 11758 aims to establish an Advanced Industries Zone in Capas, Tarlac to attract major investments including the US-led Pax Silica initiative, generate jobs, and strengthen technology and manufacturing sectors.
The Philippine House of Representatives has filed House Bill 11758, known as the Advanced Industries Development Act (AIDA), which proposes establishing an Advanced Industries Zone in New Clark City, Capas, Tarlac. The bill aims to create a dedicated economic region that will serve as the country’s national platform for strategic technology, advanced manufacturing, and innovation.
Sponsored by the National Union Party (NUP) led by House Deputy Speaker Ronnie Puno and Rep. Albert Garcia, the bill is designed to attract national and foreign investments, including those from the US-led Pax Silica coalition. Pax Silica, which the Philippines joined in April 2026 alongside over 20 countries, focuses on building secure and resilient supply chains for artificial intelligence (AI) technologies, critical minerals, and related industries.
The bill underscores that mere coalition membership is not sufficient to guarantee investments. It calls for a clear legal framework to ensure policy continuity beyond current administrations, providing investors with certainty and efficiency in government services. The proposed zone will offer significant incentives such as a seven-year income tax holiday, a reduced special corporate income tax rate of 5%, and exemption from certain taxes and duties related to operations within the zone.
Enterprises locating within the zone must meet a minimum investment threshold of PHP 15 billion and are obligated to create jobs for Filipinos, provide skills training, and transfer know-how to help develop domestic expertise, ensuring that local workers are involved not only in assembly but in design, construction, and management of advanced technologies.
Concerns regarding the impact on indigenous communities in the area have been acknowledged. The lawmakers assured that the Advanced Industries Zone will focus on government patrimonial lands, minimizing displacement of indigenous peoples, and that negotiations concerning ancestral domains will be handled with respect for their rights.
The bill reflects a strategic move to position the Philippines as a competitive hub for advanced manufacturing and technology, building on the country’s historical industrial zones and aiming for sustainable, high-paying employment while fostering innovation and economic development.
Sources referenced:
- https://www.gmanetwork.com/news/topstories/nation/1007221/bill-filed-establishing-ecozone-for-pax-silica-ops-other-critical-industries/story/
