POLICY ISSUE
In 1987, through Executive Order No. 226, the country signified its intent to accelerate economic nationalism by encouraging investments and adopting cohesive fiscal incentives for the private sector. One of the many existing incentives in the Philippines is "The Special Economic Zone Act of 1995" or Republic Act (R.A.) 7916. The law aspires to develop some regions of the nation into "highly developed agro-industrial, industrial, commercial, tourist, banking, investment, and financial centers." Section 23 of R.A. 7916 provides fiscal incentives and Income Tax Holidays (1TH) of four (4) to eight (8) years, depending on the location of the Special Economic Zones or Ecozones. Non-fiscal incentives are also provided to investors, such as special non-immigrant visas with multiple entry privileges for foreign investors and immediate family members and employment of foreign nationals (Section 10). Meanwhile, Section 30 allows for a long-term land lease of up to 75 years. Furthermore, "firms (also known as locators) can choose to transfer in these ecozones regardless of market orientation" (Senate of the Philippines, 2008). They are also given "certain items of deductions in arriving at their gross income base" (National Tax Research Center [NTRC], 1999). These incentives demonstrate how much the government values ecozones' role in the Philippines' increasing economic nationalism.