The palace approves the latest version of the Strategic Investment Priority Plan
The latest version of the Strategic Investment Priority Plan (SIPP) has been approved, strengthening the program to promote agriculture and food and high-quality manufacturing activities such as shipbuilding, said the Ministry of Trade and Industry.
Acting Secretary General Ralph G. Recto signed Memorandum Order (MO) No. 47 on May 21, which was sent to reporters on Tuesday.
“By listing jobs that are eligible for benefits, the government shows where we want to attract high-value investments, and this translates into new jobs and the development of workers’ skills,” Trade Secretary and Board of Investment Chairman Ma. Cristina A. Roque said in a statement.
The MO listed the preferred Tier-One activities for investment as basic modern needs including agriculture, fisheries and forestry; production of processed agricultural, fishery and forestry products, pharmaceuticals, semiconductors and electronics, machinery and equipment, shipbuilding, iron and steel, cement, and other value-added manufacturing activities.
Also listed as preferred activities under Category One were halal, kosher, and organic related activities; creative and knowledge-based industries, shipbuilding, maintenance, repair and overhaul of aircraft, and modern engineering, procurement and construction, health care and disaster mitigation management services; infrastructure and logistics, telecommunications, housing, ports and terminals, and air, water and land transportation.
Phase One includes liquefied natural gas and regasification facilities; oil and gas pipelines; training/study facilities including branch campuses under the International Higher Education Act; testing laboratories and facilities; industrial areas; fulfillment centers; and educational cities.
Energy-related activities, such as exploration and/or development of energy resources; power generation projects; and energy storage systems.
Sustainability-driven industries classified as Phase I include industrial and/or hazardous waste treatment facilities; preparation and supply of water in bulk; wastewater treatment; and environmental or climate change related projects.
Eligible for Phase Two incentives were defense-related services; integrated circuit design; desalination plants, value-chain strengthening projects including iron and steel, crude oil refining, and foreign exchange activities; health related activities; electric vehicles (EVs), parts and components; EV infrastructure; modern public transport, energy efficient ships and aircraft; Stable Aviation Fuel; precious and valuable minerals and green metals, bioplastics and biopolymers; integrated waste management, disposal and recycling, and renewable energy activities; and activities related to food security.
Tier Three activities eligible for promotion include research and development, sales of patents, industrial designs, copyrights and utility models; aerospace; wafer fabrication; defense production; hydrogen energy; nuclear energy; cybersecurity, artificial intelligence and data science; quantum technology; activities that adopt Industry 4.0 and 5.0 technologies; geospatial analysis; research sites; additive manufacturing technology; modern biotechnology; production and/or adoption of new hybrid seeds; and activities to support science, technology and innovation.
Activities also covered by SIPP include the production and manufacture of products for export; export service; and support activities for outsourcers.
The SIPP lists key industries, sectors, and business projects that may qualify for investment incentives under Republic Act No. 12066 or Corporate Recovery and Tax Incentives for Enterprises to Increase Opportunities for Economic Recovery Law.
If the level of industry is high, economic activities that are suitable for the long term are entitled to receive benefits.
The Board of Investments (BoI) is finalizing the General Policies (GP) and Specific Guidelines (SG) for the 2026 SIPP, which is expected to be published in the third quarter. Meanwhile, the 2022 SIPP GP and SG are still active, BOI said. – Beatriz Marie D. Cruz
