President Duterte last week approved the 2017 Investment Priorities Plan, or the list of priority investment activities that may be given incentives by the government.
Signed by Executive Secretary Salvador Medialdea on behalf of the President, Memorandum Order No. 12 mandates all government agencies to regulate the implementation of IPP, which is aimed at sustaining inclusive growth and generating more jobs in the country.
“Upon effectivity of the IPP, all government agencies and entities are enjoined to issue the necessary regulations to ensure its implementation in a synchronized and integrated manner,” the memorandum read.
“No government body shall adopt any policy or take any course of action contrary to, or inconsistent with the IPP,” it added.
The IPP, which is formulated by the Philippine Board of Investments (BOI), is aligned with the goals, priorities and strategies under Duterte’s 10-point socioeconomic agenda and the framework on the Comprehensive National Industrial Strategy.
The memorandum tasked the BOI chairman to submit an annual report to the President on the accomplishments and implementation of the IPP.
The preferred activities for IPP, which will be rolled out for three years, are manufacturing activities, including agri-processing, agriculture and fishery; strategic services; infrastructure and logistics, including public-private partnerships participated in by local government units; innovation services; inclusive business models; and environment or climate change-related projects.
Along those considered priorities are export activities, activities based on special laws that grant incentives, and the Autonomous Region in Muslim Mindanao.
The new IPP will also provide fiscal support to inclusive business models or activities in agribusiness and tourism sectors that benefit micro and small enterprises.
It also reduced the price ceiling for mass housing units to P2 million from P3 million previously. Except for in-city low-cost housing for lease, only projects outside Metro Manila may qualify for incentives.