MANILA, Philippines–President Aquino has finally approved the much-awaited 2014 Investment Priorities Plan (IPP), which listed eight preferred sectors that would be eligible for fiscal and non-fiscal incentives over the next three years.
The eight “preferred activities” or key industries are manufacturing; agribusiness and fishery; services; economic and low-cost housing; hospitals; energy; public infrastructure and logistics; and public-private partnership (PPP) projects, the Department of Trade and Industry said on Wednesday.
In a text message, Trade Undersecretary Adrian S. Cristobal Jr. confirmed that the 2014 IPP was already signed last month, but noted that Malacañang had yet to issue and publish a copy of the list.
The 2014 IPP aims to “clearly target investment opportunities and needs to fill gaps in the supply or value chain; boost sectors with latent or obvious competitive advantage; and offset market imperfections.”
“The Office of the President will publish (the 2014 IPP) anytime now. We will present the IPP on Friday (during a public consultation),” Cristobal said.
The listing is deemed as a “tool for industrial development and economic growth and consists of specific economic activities that—based on industry studies, plans and road maps—are strategic or critical to advance a particular industry or improve the product’s value chain.”
Compared to the 2013 IPP, the 2014 list is leaner.
Last year, the IPP contained 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.
The 2014 IPP also has “innovative features” such as the principle of geographic application. This means the relevance and impact of an economic activity on a particular region, province or a cluster of local government units would be taken into consideration to ensure that the use of incentives will be maximized.
Further, the 2014 IPP will be a rolling three-year plan, reviewed annually for effective implementation. This feature will ensure continuity, consistency and predictability—factors seriously considered by domestic and foreign investors.
New mechanisms of coordination and convergence among relevant government agencies will be established to ensure the effective and efficient execution of the 2014 IPP.
It will also be providing venues for enhanced partnership and cooperation with the private sector, the DTI said.