The Board of Investments (BOI) Board has approved the general policies and specific guidelines of the 2014-2016 Investments Priorities Plan (IPP). The IPP is a fundamental investment policy tool for industry development aimed to build industries not necessarily through incentives, but through policy interventions and initiatives. The Plan is focused on the theme dubbed, “Industry Development for Inclusive Growth.”
The crafting of the IPP harnessed the vast experience and support of stakeholders, particularly the private sector. This sector played a significant role in the preparation of the IPP and in the formulation of policies that provide clear directions for industry development and growth.
In terms of validity, the IPP is a 3-year document and is subject to annual review. The IPP also places much weight on the end-of-term objectives and goals of the Philippine Development Plan (PDP) to ensure continuity, consistency and predictability which are measures to improve business environment for domestic and foreign investors.
The IPP is a fundamental investment policy tool of DTI/BOI’s industry development strategies which include, among others, the provisions of incentives under E.O. No. 226. The previous IPP contained a list of economic activities enumerated in Executive Order (E.O.) No. 226 which are entitled to incentives. It also promotes Inclusive Business (IB), Corporate Social Responsibility (CSR) and Good Corporate Governance as tools for development.
Both versions created a list of preferred activities, policies and guidelines but the present IPP included the planning process, the core strategies, sector briefs and the principle of geographical application. The principle of geographical application means that the relevance and impact of an economic activity in a particular region, province, or a cluster of local government units would be taken into consideration to maximize the utilization of incentives by cascading its benefits of incentives to its targeted locality. Extensive consultations - public, inter-agency, sectoral and internet-based - were likewise conducted.
The IPP is more focused with 8 preferred activities (4 broad sectors and 4 specific activities), subsectors, and specific supply/value-chain gaps. These are Manufacturing, Agribusiness and Fishery, Services, Economic and Low-cost Housing, Hospitals, Energy, Public Infrastructure and Logistics, PPP Projects.
New mechanisms of coordination and convergence among relevant government agencies will be established to ensure the effective and efficient execution of the IPP, as well as providing platforms for enhanced partnership and cooperation with the private sector.
President Benigno S. Aquino III issued Memorandum Order No. 74 dated 28 October 2014 approving the 2014 – 2016 Investment Priorities Plan (IPP).