DTI retains list of preferred investment areas

MANILA, Philippines - The Department of Trade and Industry (DTI) is set to retain the activities qualified for incentives under the 2012 Investment Priorities Plan (IPP) in this year’s list and make major adjustments in the 2014 plan instead.

“Our preference is just to keep the list for 2013,” DTI secretary Gregory Domingo told reporters.

This, as the DTI has already missed its earlier planned date of submission of the proposed IPP list for 2013 to the Office of the President.

Under Executive Order 226 or the Omnibus Investments Code, the IPP must be submitted to the President not later than the end of March of every year.

The 2012 IPP lists the following as preferred activities: agriculture/agribusiness and fishery, creative industries/knowledge-based services, shipbuilding, mass housing, iron and steel, energy, infrastructure and Public Private Partnership projects, research & development, green projects, hospital and medical services projects, motor vehicles, strategic projects, and disaster prevention and recovery projects.

Last year’s plan also has a mandatory list covering industries that require their inclusion in the IPP as provided for under existing laws such as industrial tree plantation; exploration, mining, quarrying and processing of minerals; publication or printing of books/textbooks; refining, storage, marketing and distribution of petroleum products; ecological solid waste management; clean water projects; rehabilitation, self-development and self-reliance of persons with disability; renewable energy; and tourism.

Under the 2012 IPP, export activities as well as priority activities identified by the regional BOI of the Autonomous Region in Muslim Mindanao can likewise be given incentives by the government.

While the DTI intends to keep the activities listed in the 2012 IPP in the 2013 investment promotions blueprint, it is open to discussions on making major adjustments on sectors that can qualify for incentives for next year.

“For major issues like (mass) housing, we’d rather those be discussed for the next (IPP),” Domingo said.

The Department of Finance (DOF) has earlier recommended the removal of mass housing in the 2013 IPP noting that while its inclusion in the list is in line with the aim of reducing the housing backlog, some projects such as condominiums are not geared toward the housing needs of the less fortunate making up the backlog.

The DOF has likewise expressed concern over the inclusion of other sectors such as shipbuilding, iron and steel and motor vehicle manufacturing in the IPP citing that there are no in-depth studies to show their inclusion in the list has helped them.

“DOF will want to minimize the incentives. For our part...if it makes sense, we want to offer incentives to promote investments,” Domingo said.

“We are at opposite ends of the spectrum. We can easily discuss these issues,” he added.

For the 2014 IPP, he said the plan is to have it ready within the year.