Export Processing Zones in East Asia: Taiwan, South Korea, and ASEAN (1960-1995)

  1. Jurong begins Singapore’s export-oriented industrial push

    Labels: Jurong Industrial, Singapore

    In 1961, Singapore began developing the Jurong Industrial Estate as its first major industrial estate to create jobs and attract manufacturing investment. While not labeled an “export processing zone” (EPZ), it became a nearby model for how dedicated industrial areas, infrastructure, and investment promotion could support export-led growth in the region. This broader shift toward outward-looking industrialization helped set the stage for EPZ-style policies elsewhere in East Asia.

  2. Taiwan passes statute enabling Kaohsiung EPZ

    Labels: Kaohsiung EPZ, Taiwan Legislature

    Taiwan’s Legislative Yuan passed a special statute in January 1965 that provided the legal basis for an export processing zone at Kaohsiung. This mattered because EPZs required special rules—especially simplified customs and investment procedures—to make export assembly and manufacturing practical. The statute formalized an approach that linked industrialization to attracting foreign capital and expanding exports.

  3. Kaohsiung Export Processing Zone inaugurated

    Labels: Kaohsiung EPZ, Qianzhen

    On December 3, 1966, Taiwan inaugurated the Kaohsiung Export Processing Zone (KEPZ) in Qianzhen, Kaohsiung. The zone is widely described by Taiwan’s official historical archive as the world’s first export processing zone. It created a controlled space where imported inputs could be brought in and processed mainly for export, supporting Taiwan’s shift from agriculture toward light manufacturing and electronics assembly.

  4. Philippines creates Mariveles foreign trade zone

    Labels: Mariveles Free, Philippine Republic

    Republic Act 5490 (June 21, 1969) designated Mariveles, Bataan as the Philippines’ first free trade zone and created a governing authority for it. This was an early Philippine move toward using special zones to attract investment and support exports. It later provided the foundation for a more formal export-processing framework under presidential decree.

  5. South Korea enacts Free Export Zone law

    Labels: Masan Free, South Korea

    In 1970, South Korea promulgated the Act on the Establishment of Free Export Zones (Act No. 2180) and opened the administration office for the Masan Free Trade Zone. This created an institutional framework for zone-based export manufacturing, linking incentives and simplified administration to export performance. It marked South Korea’s formal entry into EPZ-style industrial policy during its rapid export-led expansion.

  6. Taiwan expands EPZs to Nanzi and Taichung

    Labels: Nanzi EPZ, Tanzi EPZ

    In 1971, Taiwan established additional export processing zones in Nanzi (Kaohsiung) and Tanzi (Taichung), extending the EPZ model beyond the original Kaohsiung site. The expansion reflected both strong investor interest and the government’s decision to scale up export-oriented manufacturing capacity. This step helped deepen industrial clustering around port and transport infrastructure in western Taiwan.

  7. Malaysia passes Free Trade Zones Act

    Labels: Free Trade, Malaysia

    Malaysia enacted the Free Trade Zones Act in 1971, creating a national legal framework for establishing free trade zones. This mattered because it standardized how zones could operate under special customs and administrative rules. The act helped enable Malaysia’s later, well-known electronics-oriented zones—especially in Penang.

  8. Bayan Lepas Free Industrial Zone launched

    Labels: Bayan Lepas, Penang

    In 1972, Malaysia established the Bayan Lepas Free Industrial Zone in Penang, often described as Malaysia’s first free trade zone. The zone became a focal point for multinational electronics assembly and related manufacturing. Its success helped make EPZ-style sites a central tool in Malaysia’s export-led industrialization strategy.

  9. Philippines creates EPZA via Presidential Decree 66

    Labels: EPZA, Philippines

    On November 20, 1972, the Philippines issued Presidential Decree No. 66, creating the Export Processing Zone Authority (EPZA) and revising the earlier free trade zone charter. The decree explicitly linked EPZs to goals such as strengthening exports, earning foreign exchange, and reducing unemployment. This marked a policy shift from a single zone concept toward a national EPZ program with a dedicated authority.

  10. South Korea starts building Iri Free Trade Zone

    Labels: Iri Free, South Korea

    In 1973, South Korea began construction of the Iri (later Gunsan-area) Free Trade Zone, indicating that the Masan model was being scaled through additional sites. Expanding to multiple zones helped spread export-oriented manufacturing beyond a single city and supported broader regional industrial development. It also showed how zone policy evolved into a network approach rather than a one-off experiment.

  11. Indonesia designates Batam a bonded zone

    Labels: Batam Bonded, Indonesia

    In 1978, Indonesia designated all of Batam Island as a bonded warehouse zone, an EPZ-like status that allowed goods to be stored or processed without paying customs duties while in the zone. This policy supported Batam’s development as an industrial and logistics hub oriented toward international production networks. It also illustrates how ASEAN countries adapted the EPZ idea using different legal terms (such as “bonded zone”).

  12. ASEAN agrees to create AFTA

    Labels: AFTA, ASEAN

    In February 1992, the six ASEAN member nations agreed to reduce tariffs over time to create an ASEAN Free Trade Area (AFTA). While not a zone policy, AFTA affected how EPZ-based firms planned production and sourcing, because lower intra-ASEAN tariffs could change where companies located plants and how they moved parts across borders. This agreement signaled a shift from purely national export platforms toward more regionally integrated manufacturing strategies.

  13. Philippines passes Special Economic Zone Act (RA 7916)

    Labels: RA 7916, PEZA

    On February 21, 1995, the Philippines enacted Republic Act No. 7916, known as the Special Economic Zone Act of 1995, creating the Philippine Economic Zone Authority (PEZA). The law expanded the policy toolkit beyond earlier EPZs toward a broader “special economic zone” system with coordinated administration. This marked an endpoint of the 1960–1995 era: EPZ-style policy became institutionalized and scaled nationally under a new framework.

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Last Updated:Jan 1, 1980
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Export Processing Zones in East Asia: Taiwan, South Korea, and ASEAN (1960-1995)