Doing Business in the Philippines

The 2006 Investment Priorities Plan (IPP) embodies the development thrust of the government for sustained and equitable economic growth as espoused in the 10-point agenda of the Macapagal-Arroyo Administration.

The IPP was prepared by the Board of Investments (BOI), as the lead agency in promoting investments, focused on the sectors identified in the Medium-Term Philippine Development Plan (MTPDP) 2004-2010.

This year’s theme “Propelling the Nation to 1st World Country Status in 20 Years” reflects the administration’s resolve to overcome challenges and continue to provide an environment conducive to the attainment of the following goals that we have consistently advocated through the years:

· Job creation
· Agribusiness development
· Entrepreneurship and micro, small and medium enterprise   development
· Energy independence
· Modernization of infrastructure and logistics
· Market driven export development
· Building of network of transport and digital infrastructure
· Strenthening of country’s global competitiveness

The 2006 IPP contains the following list of priority areas:

The Preferred Activities covers the MTPDP identified eleven (11) investment areas.

Mandatory Inclusions covers all areas/activities where the inclusion in the IPP and/or the grant of incentives under E.O. 226 is mandated by law.

Recognizing the importance of providing an enabling environment that will encourage the continuous operations of existing investors in the Philippines, the 2006 IPP includes two new listings, namely:

Projects under the Retention, Expansion and Diversification (R.E.D.) Program refers to activities of existing investors that are encouraged for retention, expansion and diversification.

Relocation Activities refers to investments from other countries that would relocate into the Philippines.

In general, activities under these lists shall be eligible to incentives prescribed under E.O. 226, as amended, subject to the General Policies and Specific Guidelines issued by the BOI.

This year’s IPP will continue utilize the Industry Cluster approach to enhance industrial competitiveness, promote investments in the countryside, develop micro, small and medium enterprises (MSMEs) and support the One Town, One Product (OTOP) Program as it applies to the activities listed in the IPP. The modernization of existing activities as well as the establishment and operation of Centers of Excellence are also encouraged.

Finally, the ARMM List covers priority areas that have been independently determined by the Regional Board of Investments (RBOI) of the Autonomous Region of Muslim Mindanao (ARMM) in accordance with E.O. 458.

Economic activities listed in the ARMM shall be entitled to incentives only when said activities are undertaken within the ARMM region. However, economic activities listed in the Preferred Activities, Mandatory Inclusions, Export Activities, Projects under the R.E.D. Program, and Relocation Activities may also be undertaken within the ARMM.

The 2006 IPP was formulated through the Inter-Agency Working Group headed by the BOI, in consultation with other goverment agencies such as the National Economic Development Authority (NEDA) and the Department of Finance (DOF). Public hearings were also conducted in Manila, Cebu and Davao.

Source: Board Of Investments (BOI)

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