THE economy is expected to make a full recovery following President Rodrigo Duterte's recent approval of the 2022 Strategic Investment Priority Plan (SIPP), the Department of Trade and Industry claimed on Monday.
In a statement, Trade Secretary Ramon Lopez described the SIPP's approval last May 24 as "opportune" and added that it would "catalyze industrial development."
Trade Undersecretary and Board of Investments managing head Ceferino Rodolfo, meanwhile, said the SIPP "aims to hasten the transformation of the country's economy into a modern and efficient one with highly-developed infrastructure." "It is the reason why I firmly believe that with this approval, we could not only head toward full recovery of the Philippine economy but also in ensuring that we come out of this pandemic with technology-driven industries anchored on a strong industrial base," he added.
The 2022 SIPP, which lists the economic and business activities that can avail of investment incentives under the Corporate Recovery and Tax Incentives for Enterprises (Create) Act, will take effect 15 days after publication in a newspaper of general circulation. As mandated under Create, SIPP priority projects and activities are categorized into three tiers.
It adopts the 2020 Investment Priorities Plan (IPP) as tier I — the base structure for Philippine development. It also determines products or services that are not locally produced for consideration for tier 2, and identifies high technology activities critical to the transformation of the economy and attracting technology investments for tier 3.
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Preferred activities under the 2020 IPP include all qualified activities relating to the fight against the Covid-19 pandemic.
These include essential goods and services; all qualified manufacturing activities such as agro-processing, agriculture, fishery and forestry; strategic services such as integrated circuit design, creative industries and telecommunications; mass housing; infrastructure and logistics including LGU-public private partnerships; innovation drivers including research and development, commercialization of new and emerging technologies, and startups; inclusive business models; environment or climate-change related projects; and energy.
Tier 2, meanwhile, includes activities that will fill in gaps in industrial value chains that are critical in promoting green ecosystems, ensuring a dependable health system, achieving robust self-reliance in defense systems, and the transformation into modern, competitive, and integrated and self-reliant industries under tier 3, lastly, are activities that will accelerate the economy's transformation as well as utilize technologies such as the use of automated systems, smart machines, the internet of things, cloud computing, cognitive computing, advanced robotics, artificial intelligence, 3D printing, among others.
"We have to competitively develop our capacity to improve our resiliency," Rodolfo noted.
He also claimed that approval of the SIPP would help make the Philippines a regional hub for carbon-reducing activities, as well as attract more investments that promote innovation, research and development, and the use of the latest technology, among others.