Clark: The Next BPO Hotspot of the Philippines
Clark Air Force Base, located in the Philippines, has been the American Military’s largest overseas base until they left in 1991. Today, the base saw unprecedented investment by The Philippines Government and private investors. Its openness to foreign investments, highly skilled workforce, lower salaries (compared to the US), mastery of the English language, and good infrastructure in place made it an attractive location for BPO facilities.
For more than a decade, the Philippines has been one of the top destinations for BPO companies to set up shop. Unknown to most westerners, Clark Freeport Zone is perhaps the most desirable location in the Philippines for setting up outsourcing facilities.
Located just north of Manila, Clark is perfectly suitable to cater to foreign citizens because of its numerous recreational and leisure amenities such as golf courses, casinos, hotels, and many more. Besides those mentioned previously, Clark has numerous infrastructure projects currently being built.
Ease of Doing Business
Probably the first factor for investors to consider before opening up a facility, the ease of doing business is aimed at streamlining current systems in place and quick government services that will make it easier for companies to set-up with less red tape involved.
Importantly, the Philippines has been one of the top recipients of foreign investments in South East Asia. Further positioning Clark as one of the top destinations in the country to open up a business facility.
Business Continuity
Minor interruptions in business operations can cost a BPO company to lose money and clients. Guaranteed continuity of operations is key for BPO companies.
Envisioned to be a disaster-proof metropolis, Clark embodies the spirit of resiliency that Filipinos are famous for. Located well above sea level, Clark is free from flooding brought upon by strong tropical typhoons experienced mainly in Metro Manila.
Moreover, during the pandemic, Clark Development Corporation (CDC – The governing authority of Clark) offered free COVID vaccination for people who are working in Clark.
Clark provides security in terms of economic, political, and societal stability. Regardless of the changing situation across the world, Clark will always be open for business.
Tax Incentives
Low corporate tax is an attractive benefit for businesses. In fact, one of the primary reasons why foreign companies are leaving their home countries is because of the high obligation to pay corporate taxes.
With that in mind, for decades numerous companies are leaving or had left their home countries to set up their headquarters in countries that offer low-income tax, corporate tax, and tax holidays like Clark.
- Flat 5% rate income tax for foreign-owned corporations.
- 100% foreign-owned companies can lease land for up to 50 years without the need for local partners.
Infrastructure Investment
Massive monetary investment by the private and public sectors has developed Clark into the premier business hub in the Philippines. Because of this, it has become a cheaper rival than those of Bonifacio Global City, Metro Manila, and Cebu Business Park, Cebu.
In addition, both BGC and CBP have limited areas for expansion. Clark’s geographic size covers 3,000 hectares while, BGC area is 240 hectares, and CBP is only 50 hectares. Size alone gives Clark more room for future expansion. Current government policy aims to improve existing and build new infrastructure to facilitate the Philippines’ growing economy.
- Newly commissioned international airport.
- On-going construction of the northernmost portion of the North-South Commuter Railway.
- Massive Government spending to upgrade infrastructure.
Why Clark will be the BPO Capital of the Philippines
Positioned to be the main bustling metropolis north of Metro Manila, with all the amenities to sustain a global business environment, Clark is poised to be the center of BPO operations in the Philippines. Therefore, foreign-owned companies continue to flock to Clark Freeport Zone seizing the continued allure it may bring.