2017 Investment Priorities Plan

A Presentation
Legal Basis THE PLAN
 Sec. 26, Omnibus Investment Code of 1987 (E.O. 226)

“xxx over-all plan prepared by Board xxx which

contains:
(a) Specific activities and generic
categories of economic activity xxx;
(b) Specific public utilities xxx;
(c) Specific activities where the potential
for utilization of indigenous no-petroleum based fuels
or sources of energy can be best promoted; and
(d) Such other information, analyzes, data,
guidelines or criteria as the Board may deem
appropriate.”
Legal Basis THE PLAN (Continued)
 Sec. 29, Omnibus Investment Code of 1987
(E.O. 226)

“[T]he President through the

recommendation of the Board of
Investors (BoI) shall – “proclaim the
whole or part of such plan as in effect; or
alternatively, return the whole or part of
the plan to the Board of Investment for
revision.”
Legal Basis Criteria
 Sec. 28, Omnibus Investment Code of 1987
(E.O. 226)

In part states that -- "No economic

activity shall be included in the Investment
Priority Plan unless it is shown to be
economically, technically and
financially sound after thorough
investigation and analysis by the Board."
Plan 2014

The last IPP was the 2014 IPP

◦ a 132 page IPP, a lengthy one compared to the
2017 IPP which consist only of 8 pages
IPP; Defined
IPP is "the country’s basic policy
document that enumerated the areas or
sectors of the economy that were
deemed priorities of the state for
investments and development.
Government agencies and the private
sector referred to the IPP when making
investment decisions as well as
promotional activities. (2014 IPP)”
Preferred Activities 2017 IPP
1. All qualified manufacturing activities including agro-
processing;
2. Agriculture, fishery and forestry;
3. Strategic services;
4. Health care services including drug rehabilitation centers;
5. Mass housing;
6. Infrastructure and logistics including local government unit
public-private partnerships (LGU-PPPs);
7. Innovation drivers;
8. Inclusive business models;
9. Environment or climate change-related projects; and
10. Energy.
Preferred Activities 2017 IPP
All qualified manufacturing activities including
agro-processing

(a) Industrial goods; and

(b) Processing of –
(i) Agriculture products
(ii) Fishery products
into –
(i)semi-finished/intermediate goods; or
(ii) finished products or consumer goods
Preferred Activities 2017 IPP
All qualified manufacturing activities
including agro-processing

it also includes:
(a) modular housing components
(b) machinery and equipment
Preferred Activities 2017 IPP
Agriculture, fishery and forestry

It involves commercial production.

(a) seeds and seedlings;
(b) establishment of nurseries and
hatcheries; and
(c) support services and infrastructure
Preferred Activities 2017 IPP
Agriculture, fishery and forestry

It involves commercial production.

xxx
(c) support services and infrastructure,
such as
(i) facilities for drying, cold chain
storage
(ii) harvesting, plowing, spraying
Preferred Activities 2017 IPP
Strategic services
(a) IC Design
(b) Creative Industries/Knowledge-Based
Services
(c) Maintenance, Repair and Overhaul of
Aircraft
(d) Charging/Refueling Stations for Alternative
Energy Vehicles
(e) Industrial Waster Treatment
(f) Telecommunications
(g) State-of-the-art Engineering, Procurement,
and Construction
Preferred Activities 2017 IPP
Health care services including drug
rehabilitation centers

Mass housing

Infrastructure and logistics including local

government unit public-private
partnerships (LGU-PPPs)
Preferred Activities 2017 IPP
Innovation drivers
research & development (R&D)
activities; conduct of clinical trials
(including drug trials); establishment of
Centers of Excellence; business
incubation hubs; fabrication laboratories;
commercialization of new and emerging
technologies and products of the
Department of Science and Technology
or government-funded R&D;
Preferred Activities 2017 IPP
Inclusive business models
covers business activities of medium and
large enterprises in the agribusiness
and tourism sectors that provide
business opportunities to MSMEs as part
of their value chains. These projects may
qualify for pioneer status;
Preferred Activities 2017 IPP
Environment or climate change-related
projects

Energy
covers power generation projects
utilizing conventional fuels, waste heat
and other wastes and establishment of
battery energy storage systems.
Export Activities 2017 IPP
1. Production and Manufacture of Export
Products
2. Service Exports
3. Activities in Support of Exporters
Export Activities 2017 IPP
Production and Manufacture of Export
Products

This covers the production/manufacture of

export products

Service Exports

This covers export service activities rendered

to clients abroad and paid for in foreign
currency
Export Activities 2017 IPP
Activities in Support of Exporters
This covers activities directly supporting
export producers as follows:
◦ Manufacture of parts/components and
materials and supplies needed in the
production of the export product;
◦ Product testing and inspection;
◦ Repair and maintenance; and
◦ Logistics services
Special Laws 2017 IPP
1. Industrial Tree Plantation (P.D. No. 705)
2. Exploration, Mining. Quarrying and Processing of
Minerals (R.A. NO. 7942) (limited to capital
equipment incentives )
3. Publication or Printing of Books/Textbooks (R.A.
No. 8047)
4. Refining, Storage, Marketing, and Distribution of
Petroleum Products (R.A. No. 8479)
5. Rehabilitation, Self-Development and Self-Reliance
of Persons with Disability (R.A. No. 7277)
6. Renewable Energy (R.A. No. 9513)
7. Tourism (R.A. No. 9593)
Special Laws 2017 IPP
Industrial Tree Plantation (P.D. No. 705)
This covers extensive plantation of timber,
non-timber species and fruit trees for
commercial and industrial purposes.
◦ Incentives
 Free technical advice from government foresters and
farm technicians
 Exception from percentage tax, sales tax, and real
property tax
 Allow without restriction to export logs, lumber, and
other forest products derived from the IFMA Area
(Integrated Forest Management Agreement )
Special Laws 2017 IPP
Exploration, Mining. Quarying and Processing
of Minerals (R.A. NO. 7942) (limited to
capital equipment incentives )
This covers the exploration and development
of mineral resources, mining/quarrying and
processing of metallic and non-metallic
minerals.
◦ Incentives
 Pollution Control Devices shall not be considered as
improvements and shall not be subject to real property
and other taxes or assessments
Special Laws 2017 IPP
Publication or Printing of Books/Textbooks (R.A. No.
8047)
This covers content development intended for books
and publication of books in print or in digital format.
◦ Incentives
 Income tax holiday
 Additional deduction for labor expenses
 Minimum tax and duty of 3% and VAT on imported capital
investment
 Tax credit on domestic capital equipment
 Exemption from contractor’s tax
 Exemption from taxes and duties on imported equipment and
machines
 Exemption from taxes and duties on imported spare parts
Special Laws 2017 IPP
Refining, Storage, Marketing, and Distribution of Petroleum
Products (R.A. No. 8479)
This covers refining, storage, marketing, and distribution of
petroleum products.
For gasoline retailing stations, the applicant shall be required to
invest at least Php 10 million per station.
◦ Incentives
 Income tax holiday
 Additional deduction for labor expenses
 Minimum tax and duty of 3% and VAT on imported capital investment
 Tax credit on domestic capital equipment
 Exemption from contractor’s tax
 Exemption from taxes and duties on imported equipment and machines
 Exemption from taxes and duties on imported spare parts
Special Laws 2017 IPP
Rehabilitation, Self-Development and Self-
Reliance of Persons with Disability (R.A. No.
7277)
This covers the manufacture of technical aids
and appliances for the use and/or
rehabilitation of persons with disability, and
the establishment of special schools, day care
centers, homes, residential communities or
retirement villages solely to suit the needs
and requirements of persons with disability.
Special Laws 2017 IPP
Renewable Energy (R.A. No. 9513)
This covers developers of renewable energy
facilities and manufacturers, fabricators and
suppliers of locally-produced renewable
energy equipment and components.
◦ Incentives
 Income tax holiday
 Duty-free importation of Machinery, Equipment and
Materials
 Special realty tax rates on equipment and machinery
 Zero Percent VAT rate
Special Laws 2017 IPP
Tourism (R.A. No. 9593)
This covers tourism enterprises that are outside the
tourism enterprise zones (TEZs) and are engaged in
the following:
◦ Tourist transport services;
◦ Establishment and operation of the following:
 Accommodation Establishments;
 Convention and exhibition facilities;
 Amusement parks;
 Adventure and eco-tourism facilities;
 Sports facilities and recreational centers;
 Theme parks;
 Health and wellness facilities;
 Farm tourism; and
 Tourism training centers and institutes.
Special Laws 2017 IPP
Tourism (R.A. No. 9593) continued
This covers tourism enterprises that are outside the tourism
enterprise zones (TEZs) and are engaged in the following:
◦ Development of retirement Villages;
◦ Restoration/preservation and operation of historical shrines,
landmarks and structures
◦ Incentives
 Income tax holiday
 Additional deduction for labor expenses
 Minimum tax and duty of 3% and VAT on imported capital investment
 Tax credit on domestic capital equipment
 Exemption from contractor’s tax
 Exemption from taxes and duties on imported equipment and machines
 Exemption from taxes and duties on imported spare parts
 Other incentives under article 39 of E.O. No. 226
Special Laws 2017 IPP
Tourism (R.A. No. 9593) continued
This covers tourism enterprises that are outside the tourism
enterprise zones (TEZs) and are engaged in the following:
◦ Development of retirement Villages;
◦ Restoration/preservation and operation of historical shrines,
landmarks and structures
◦ Incentives
 Income tax holiday
 Additional deduction for labor expenses
 Minimum tax and duty of 3% and VAT on imported capital investment
 Tax credit on domestic capital equipment
 Exemption from contractor’s tax
 Exemption from taxes and duties on imported equipment and machines
 Exemption from taxes and duties on imported spare parts
 Other incentives under article 39 of E.O. No. 226
ARMM List 2017 IPP
ARMM List 2017 IPP
The role of private sector investments to
ARMM

The role of private sector investments to lift

the ARMM from poverty cannot be over
emphasized and the fiscal and non-fiscal
incentives for investors administered by the
Regional Board of Investments (RBOI) will
still be needed for the foreseeable future in
order to attract massive private investments
in the region.
ARMM IPP Process 2017 IPP
 The 2017-2019 ARMM Investment Priorities Plan
(IPP) is formulated based on the updated
Philippine Development Plan (PDP) 2017-2019
and ARMM Regional Development Plan.

 As mandated under EO 458, devolving the

powers and functions of BOI to the ARMM
Regional Government, the Regional Board of
Investments (RBOI) is the agency responsible in
identifying priority activities to be registered and
administered in this IPP for projects locating in
the ARMM.
ARMM IPP Process 2017 IPP
 The process of the RBOI in the formulation of the 2017-
2019 ARMM IPP involves a series of consultation sessions
with the public and private sectors and civil society and
evaluating the potential contribution of these identified
economic activities and industries to create quality jobs,
move up the value chain, diversify the region’s agri-fishery
base, generate “spillover effects,” and engender a more
competitive environment.

 The economic activities listed in the ARMM List will be

entitled to fiscal and non-fiscal incentives under Executive
Order No. 226 otherwise known as the Omnibus
Investments Code of 1987, as amended, provided they qualify
with certain criteria and fulfill the terms and conditions of
registration with RBOI.
ARMM List 2017 IPP
Export Activities

1. Export Trader and Service Exporters

2. Support Activities for Exporters
ARMM List 2017 IPP
Agriculture, Agribusiness, Aquaculture And
Fishery

1. Agriculture and Agribusiness

2. Aquaculture and Fishery
ARMM List 2017 IPP
Agriculture and Agribusiness
This covers all types of agricultural production,
farming, plantation, processing or
manufacturing, as long as, the land or the
agricultural production, plantation,
processing or manufacturing is based in
ARMM. It includes value-chain, value-adding,
logistical and supply chain agribusiness
activities based in or involving ARMM
agricultural products or the farmers of the
region, such as silo storage and drying
facilities.
ARMM List 2017 IPP
Aquaculture and Fishery

This covers the aquamarine industry; inland

water resources; seaweeds; fishing; fish
pond including other marine, inland and
brackish water farming, such as abalone
farms, shrimp farming or crab fattening;
the establishment of hatcheries or
breeding of fingerlings and processing of
such marine and inland water resources.
ARMM List 2017 IPP
Basic Industries
This covers the production of pharmaceuticals such
as antibiotics; traditional or herbal medicines and
related activities such as bio-prospecting; textile
or garments; water supply and treatment; ice
plant or refrigeration; traditional craft like boat
building; production of inorganic and organic
fertilizer; all types of heavy industries, such as the
steel industry, petrochemical industry, ship-
building, ship breaking, ship repair and servicing;
dredging for industrial purposes and landfill;
cement production and concrete aggregates.
ARMM List 2017 IPP
Infrastructure and Services
This covers strategic infrastructure projects such as
railways, bridges, tollways, flood control and
support industries like sand and gravel, batching
plant and pre-mixing of cements; air, land and
water transportation; telecommunications to
include the construction and operation of
international gateway facilities both satellite-linked
or linked by terrestrial and submarine cables for
internet connectivity, so long as these are based
in ARMM and are holding ARMM franchise, or
servicing ARMM areas including to and from
ARMM in order to increase inter-connectivity and
support regional or national integration.
ARMM List 2017 IPP
Industrial Service Facilities
This covers industrial centers or industrial estates
to include testing and quality control laboratories;
manpower training and demonstration centers;
vocational and technical skills services and
facilities; call centers and Information Technology
related enterprises such as business process
outsourcing; tool and dye shops and similar
facilities; metal casting and metal working;
furniture and fixtures; ceramics and tile-making;
petrochemical complex and industrial gases.
ARMM List 2017 IPP
Engineering Industries
This covers engineering products;
electronics and telecommunication
products; and fabrication of construction
materials including pre-fabricated
construction materials using new
technologies (e.g. 3D printing) or
indigenously sourced materials.
ARMM List 2017 IPP
Logistics
This covers the logistics, supply chain and logistics
network industry; shipping, hauling and trucking;
cargo shippers and forwarders; bulk carrier;
warehousing and depots; storage; and other
logistics facilities principally based in ARMM
including trans shipment hubs and services using
ARMM ports, airports or located near its special
economic zones. This also contemplates the ports
industry and allied industry in the ARMM and
ancillary services, such as arrastre and
stevedoring, because the ARMM needs to attract
more port industry players.
ARMM List 2017 IPP
BIMP – EAGA Related Investment Enterprises
This covers enterprises using the BIMP-EAGA
framework on trade and investments and who
are located or have their base of operations in
the BIMP-EAGA namely, Brunei; Sabah and
Sarawak in Malaysia; Maluku, Sulawesi, Kalimantan
and Irian Jaya in Indonesia; and Mindanao and
Palawan in the Philippines, who shall invest and
engage in economic activity in the ARMM
including traditional cross-border trade and the
age-old barter trading to encourage the
formalization of peripheral shadow economies.
ARMM List 2017 IPP
Tourism
This covers the establishment of tourism-
related facilities and attractions; tourism-
related services; hotel and restaurants
catering to ARMM tourists; Halal-based
tourism; tourist accommodation facilities;
tourist transport facilities and
development of retirement villages, which
shall include health or medical facilities
and other amenities.
ARMM List 2017 IPP
Health and Education Services and Facilities
The ARMM has some of the lowest indicators in the
country regarding health and education as
reflected in the Human Development Index. For
this purpose, there is a need for incentives to be
given to investors in the health and educational
sectors such as putting-up of private hospitals,
medical clinics, wellness centers, primary
education, secondary education, tertiary
education (colleges, universities and vocational-
technical schools) and ancillary or support
services such as teacher training centers.
ARMM List 2017 IPP
HALAL Industry
The 2004-2010 MTPDP envisioned that ARMM shall
be the production and processing center for the
Halal industry. ARMM being the only Muslim
region in the country has a comparative
advantage in the Halal industry since majority of
Halal consumers are in the region. Any Halal
related business enterprises that obtain the
necessary Halal certification or is operating under
Islamic (Shariah) law principles shall be covered.
Halal refers to the permissible products and
services under Islamic Law.
ARMM List 2017 IPP
Banking, Non-bank Financial Institutions and Facilities
Aside from conventional banking and finance,
microfinance and cooperative financing, this includes
Islamic banking and finance; and Islamic microfinance
and pawnshop operations, since the ARMM is the
most unbanked region in the country and there is a
need for financial inclusivity in accordance with the
provisions of the Organic Act (Sec. 7, Art. IX, R.A. No.
9054). This also includes remittance centers to cater
to remittances of Overseas Filipino Workers.
Guidelines for this purpose may be issued by the
RBOI after consultation with the relevant
stakeholders and institutions engaged in financial
access and financial inclusivity programs and activities.
ARMM List 2017 IPP
Energy
More energy investments are needed in the ARMM considering
that the household electrification rate in the ARMM is the
most dismal in the country with only 34% as compared with
the national rate of 74%. This covers energy investments in
upstream and downstream industries such as power
generation, transmission and distribution. Off-grid and Small
Power Utilities Group or SPUG areas shall be prioritized for
investments and giving of incentives considering that these
are stranded markets for electricity. It covers not only energy
but also ancillary services and in the context of ARMM, this
means the construction of substations and transmission and
distribution towers considering that there are also frequent
power outages due to disruption of such facilities from man-
made and natural disaster causes.
2017 INVESTMENT
PRIORITIES PLAN
A Presentation

THANK YOU!