Philippines needs to draw investments to boost competitiveness – BOI

CEBU, Philippines - The Philippines needs to encourage investments that improve its competitiveness, a Board of Investments (BoI) official said.

These investments include energy, infrastructure, and research and development, Domingo Bagaporo, director at BoI, said during the 2014-2016 Investment Priorities Plan (IPP) road show in Cebu City.

 Bagaporo noted the agency would continue to support power generation investments as energy demand in the country is seen to rise in the coming years.

 Also, the BoI would push for more strategic infrastructure and logistics projects including: airports and seaports; air, water and land transport; liquefied natural gas storage and regasification facility; and bulk water supply and distribution.

 Public-private partnership (PPP), which is one of the IPP's business activities eligible for tax perks, are also encouraged.

 During yesterday's forum attended by members of both public and private sectors, Bagaporo presented the three-year IPP, its prioritized business activities and the incentives investors can avail from BoI, an attached agency of Department of Trade and Industry.

 "The new IPP adopted an analytical framework and a more rigorous process of identifying the priority economic activities to promote," BoI said.

 The plan also seeks to create jobs, enhance competitiveness of local industries and help industries generate opportunities.

 The new IPP, which is to be reviewed annually, focuses on eight preferred activities: manufacturing, agribusiness and fishery, services, economic and low-cost housing, hospitals, energy, public infrastructure and logistics and PPP projects. Mainstays of IPP include export activities, renewable energy, tourism and other mandatory laws.

 Bagaporo said private sector investment is particularly needed in social service sectors such as economic and low-cost housing development and hospital projects. 

Activities

Activities preferred in the agribusiness sector includes mechanized agricultural support services, agricultural infrastructure support and extraction of natural ingredients.

 Manufacturing activities include shipbuilding, motor vehicles, aerospace parts and components, chemicals, virgin paper pulp, long steel products, steel grinding balls, and tools and dies.

 Additionally, services include integrated circuit design, ship repair, creative industries, charging stations for electric vehicles, maintenance, repair and overhaul (MRO) of aircraft, and industrial waste treatment.

 Incentives provided under the current IPP include a six-year income tax holiday, duty-free importation of capital requirement, tax credit on imported raw materials and additional deduction for labor expense, among others.

 The BoI is mandated to review the IPP and make an annual report on the accomplishments of the plan's implementation.

President Aquino issued Memorandum Order 74 in October 2014 approving the 2014-2016 IPP. (FREEMAN)