Trade officials awaiting new and improved IPP
MANILA, Philippines—The Department of Trade and Industry aims to issue by March a more concise incentive package for investors under the 2014 Investment Priorities Plan.
“This year’s IPP will see major improvements. [It] will reflect the actual needs of industry, as seen through the more than 27 industry road maps completed last year. These include investment gaps identified by the sectors themselves,” said Trade Undersecretary Adrian S. Cristobal Jr.
A notable inclusion in the 2014 IPP is the manufacturing sector.
“Emerging from the industry road-map 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 explained.
According to the Trade agency, the proposed 2014 IPP will be based on the value chain approach and composed of core activities.
These include manufacturing, services, agribusiness, and infrastructure; trade/market activities both local- and foreign-sourced that will cover packaging, labeling and product testing laboratories; and inputs/support industries, which include 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 draft framework of the 2014 IPP has already undergone scrutiny of two interagency consultation meetings held late last year.
As the country’s investments blueprint, the IPP identifies the sectors that the government will actively promote for the current year. In formulating the IPP, the Board of Investments (BOI) consults concerned government agencies and industry stakeholders through interagency consultations and public hearings.
Results of these consultations are consolidated by the BOI and submitted to the Office of the President.
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, 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.
The 2013 IPP, which remains in effect to date, identified 13 “preferred activities” namely agriculture/agribusiness and fishery; creative industries/knowledge-based services; shipbuilding; mass housing; iron and steel; energy; infrastructure; research and development; green projects; motor vehicles; strategic projects; hospital/medical services; and disaster prevention, and mitigation and recovery projects.
