THE LATEST VERSION of the Strategic Investment Priority Plan (SIPP) has been approved, strengthening the incentives regime for agriculture and food as well as high-end manufacturing activities like shipbuilding, the Department of Trade and Industry said.
Acting Executive Secretary Ralph G. Recto signed the Memorandum Order (MO) No. 47 on May 21, which was sent to reporters on Tuesday.
“By listing activities eligible for incentives, the government is signaling where we want to attract high-value capital, and translate these into new jobs and workforce upskilling,” Trade Secretary and Board of Investments Chairman Ma. Cristina A. Roque said in a statement.
The MO listed the Tier-One preferred activities for investment as modern basic needs including agriculture, fisheries and forestry; manufacturing of processed agricultural, fishery and forestry products, pharmaceuticals, semiconductors and electronics, machinery and equipment, shipbuilding, iron and steel, cement, and other value-adding manufacturing activities.
Also listed as preferred activities under Tier One were halal, kosher, and organic related activities; the creative and knowledge-based industries, ship repair, maintenance, repair and overhaul of aircraft, and state-of-the-art engineering, procurement and construction, healthcare and disaster risk reduction management services; infrastructure and logistics, telecommunications, housing, ports and terminals, and air, water and land transport.
Tier One also includes liquefied natural gas and regasification facilities; oil and gas pipelines; training/learning facilities including branch campuses covered by the Transnational Higher Education Act; testing laboratories and facilities; industrial zones; fulfillment centers; and education cities.
Energy-related activities, such as the exploration and/or development of energy sources; power generation projects; and energy storage systems.
Sustainability-driven industries classified as Tier One include industrial and/or hazardous waste treatment facilities; bulk water treatment and supply; wastewater treatment; and environment or climate change related projects.
Eligible for Tier Two incentives were defense-related services; integrated circuit design; desalination plants, value-chain resiliency projects involving iron and steel, crude oil refining, and import substituting activities; health-related activities; electric vehicles (EVs), parts and components; EV infrastructure; modern public land transport, energy-efficient vessels and aircraft; Sustainable Aviation Fuel; strategic and critical minerals and green metals, bioplastics and biopolymers; integrated waste management, disposal and recycling, and renewable energy activities; and food security related activities.
Tier Three activities eligible for incentives include research and development, commercialization of patents, industrial designs, copyrights and utility models; aerospace; wafer fabrication; defense manufacturing; hydrogen energy; nuclear energy; cybersecurity, artificial intelligence and data science; quantum technologies; activities adopting Industry 4.0 and 5.0 technologies; geospatial analysis; research hubs; additive manufacturing technologies; modern biotechnology; production and/or adoption of new hybrid seed; and science, technology and innovation support activities.
Activities also covered by the SIPP include the production and manufacture of export products; service exports; and activities in support of exporters.
The SIPP lists the priority industries, sectors, and business projects that may qualify for investment incentives under Republic Act No. 12066 or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act.
The higher the industry tier, the longer eligible economic activities are entitled to incentives.
The Board of Investments (BoI) is finalizing the General Policies (GP) and Specific Guidelines (SG) for the 2026 SIPP, which are expected to be published by the third quarter. In the meantime, the 2022 SIPP GP and SG remain in effect, the BoI said. — Beatriz Marie D. Cruz
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