Investments Priorities Plan 2014 to Include Fiscal Incentives for Manufacturing

The 2014 Investments Priorities Plan (IPP), the country’s investments blueprint, will benefit from various industry roadmaps submitted last year by industry associations to the Board of Investments (BOI) and the Department of Trade and Industry (DTI)

This year’s IPP will see major improvements according to Trade Undersecretary and BOI Managing Head Adrian Cristobal Jr. “This year’s IPP will reflect the actual needs of industry as seen through the more than 27 industry roadmaps completed last year. These include investment gaps identified by the sectors themselves,” he said.

“Emerging from the industry roadmap studies is the need for the resurgence of the Manufacturing Industry, because manufacturing generates the most number of stable and secure employment opportunities and will help us in achieving a healthy balance of industries and sectors that will be in the 2014 IPP,” Cristobal added.

The Industry Development Program launched by the BOI in 2012 aimed to craft various sectoral roadmaps that were integrated into a broader Manufacturing Industry roadmap.

In September 2013, the BOI initiated preparations for the 2014 IPP with the drafting of the strategy paper that includes the proposed framework, theme, goals and sample list of activities for prioritization.

The proposed 2014 IPP will be based on the value chain approach and will be composed of core activities which includes manufacturing, services, agribusiness, and infrastructure; Trade/market activities both local and foreign sourced which will cover packaging, labelling, and product testing laboratories; and inputs/support industries, which include, among others, raw material supply, semi-manufactured products, plantation, machinery and equipment, labor/HR development, utilities (power, water, heat, etc.), research institutions, machinery repairs and maintenance, and other services (standards certification).

The IPP identifies the sectors which the government will actively promote for the current year. In formulating the IPP, the BOI consults concerned government agencies and industry stakeholders through inter-agency consultations and public hearings. Results of these consultations are consolidated by the BOI and submitted to the Office of the President.

The draft framework of the 2014 IPP has undergone scrutiny of two inter-agency consultation meetings held late last year.

Under existing laws, the BOI is mandated to promote investments through tax exemption and other benefits in the preferred economic activities specified in the IPP. These economic activities are aligned with the Philippine Development Plan (PDP) which identifies sectoral opportunities and promotes the growth of forward and backward linkages in priority areas and high-potential growth sectors to attract investments and generate jobs. (DTI)

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