Members of the National Unity Party (NUP), led by House Deputy Speaker Ronaldo Puno, have filed a bill in the House of Representatives to create an Advanced Industries Zone in New Clark City, Tarlac. The proposed zone would serve as the country’s national hub for strategic technologies, advanced manufacturing and innovation.
House Bill No. 11758, the proposed Advanced Industries Development Act, seeks to attract investments in high-value manufacturing, research facilities and industries that could create better-paying jobs for Filipinos. The bill follows the Philippines’ inclusion in Pax Silica, a US-led initiative launched in December 2025 to build secure and resilient supply chains for technologies that support artificial intelligence (AI).
Besides Puno, the bill’s authors are Camarines Sur Rep. Miguel Luis Villafuerte, Bataan Rep. Albert Garcia, Negros Occidental Rep. Alfredo Marañon III, Manila Rep. Rolando Valeriano and Cavite Rep. Ramon Jolo Revilla III.
“Membership opens the door, but it does not guarantee that the investments will come to us. Our neighbors are moving quickly to win them,” the lawmakers said in the bill’s explanatory note.
The note cites trade figures. “Electronics already account for 58.81 percent of our total exports, worth $49.64 billion in 2025,” it states. It adds: “Most of our work remains in assembly and testing, while the design, fabrication, and advanced packaging that command the highest returns are done elsewhere.”
Puno said the measure would give investors greater policy certainty by keeping the terms of their investments stable when administrations change.
The bill also includes provisions on sovereignty and rights. “The zones remain fully under Philippine law and jurisdiction, and no immunity is granted to any person. Our labor laws apply in full, and the rights of indigenous peoples and the communities in Capas and Tarlac are protected,” the bill read.
The measure would create the Advanced Industries Development Authority (AIDA) to oversee the zone. It sets a minimum investment of ₱15 billion per qualified enterprise, not counting land value. Qualified enterprises would receive a seven-year income tax holiday. After that period, they could choose either a special corporate income tax of 5 percent of gross income from the registered project or an enhanced deductions regime.
In return for the incentives, locators would have to create jobs for Filipinos, train Filipino workers and transfer skills and know-how. The zone would cover 1,350 hectares inside the 9,450-hectare New Clark City estate administered by the Bases Conversion and Development Authority.
Villafuerte said the zone would cover only government patrimonial land, with ancestral land areas subject to negotiation.
“We recognize that it is a reality that cannot be avoided,” Puno said of the displacement of original residents. “We will stay away from those areas as best we can.”
The Philippines joined Pax Silica in April 2026. The bill must still go through committee referral, hearings, a House vote, a Senate counterpart and presidential signature before it can become law.
