By Mia A. Aznar
Thursday, November 22, 2012
AFTER participants of a roadshow to promote the country’s investment
priorities plan for 2012 cited how late in the year this was
disseminated to them, the Board of Investments admitted they had plans
to have an approved IPP for a three-year period.
However, BOI Director Bobby Fondevilla said this will take time as it requires a change in the law and participation from the country’s lawmakers.
During the open forum, economist Fernando Fajardo said businesses take time to plan for projects, taking months or a year to complete studies before deciding to go on with it. He said the IPP could end up changed before any project is implemented and then they would be unable to avail of the incentives provided for in the IPP.
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Fondevilla assured that until a new IPP is approved, the previous IPP will still be in place. He explained that they did their best to get the 2012 IPP put by March but it got held up by reviewers in Malacañang who wanted to make sure the industries in the list were in line with the country’s goals. It was approved last June.
Bases for the IPP are the President’s social contract with the people of the Philippines, the Philippine Development Plan 2011-2016, the SME Development Plan, National Science and Technology Plan, the framework strategy for climate change and the 2011 state of the nation address.
Out of four categories, it is the preferred activities that usually sees more change.
For this year, the IPP provides incentives for projects in 13 industries--agriculture, agri-business and fisheries; creative industries or knowledge-based services; shipbuilding; mass housing; iron and steel; energy; infrastructure; research and development; green projects; motor vehicles; strategic projects; hospital and medical services; and disaster prevention, mitigation and recovery projects.
Out of the preferred activities list, iron and steel and hospital and medical services were the new additions to this year’s IPP.
Agriculture was introduced in last year’s IPP in support of the Aquino administration’s thrust to improve productivity, reduce importation and become self-sufficient in food.
For creative industries and knowledge-based services, Fondevilla stressed that the incentives are available for projects producing original content. These include business process outsourcing, IT and IT-enabled services. While film and performing arts were included in previous years, he said it was removed because there have been no applications.
Shipbuilding has been retained from the 2011 IPP as it is seen to have a great potential, trailing China, Japan and South Korea as a production base of shipbuilding.
Fondevilla identified mass housing projects as having the bulk of the BOI’s performance. He said the country needs to develop more low-cost housing. An addition to sub-category is for the manufacture of modular housing components. He said they noted that while real estate has been doing well in the country, materials being used in construction are imported.
Existing laws compel the BOI to include nine industries. Under the mandatory list are projects in industrial tree plantation; exploration, mining, quarrying and processing of minerals; publication and printing of books; refining, storage, marketing and distribution of petroleum products for new entrants; ecological waste management; clean water projects; rehabilitation, self-development and self-reliance of persons with disability, renewable energy and tourism.
All export activities and a special list for the ARMM region complete the four categories.
Fondevilla said the listing is general and that businesses are welcome to make proposals and visit the BOI to find out if they are eligible for incentives.
BOI governor Geronimo Sta. Ana, during the welcome remarks, added that companies are being encouraged to partner with state universities and colleges for research and development.
However, BOI Director Bobby Fondevilla said this will take time as it requires a change in the law and participation from the country’s lawmakers.
During the open forum, economist Fernando Fajardo said businesses take time to plan for projects, taking months or a year to complete studies before deciding to go on with it. He said the IPP could end up changed before any project is implemented and then they would be unable to avail of the incentives provided for in the IPP.
ENJOY GOOD LIFE + INVESTMENT, CLICK HERE
Fondevilla assured that until a new IPP is approved, the previous IPP will still be in place. He explained that they did their best to get the 2012 IPP put by March but it got held up by reviewers in Malacañang who wanted to make sure the industries in the list were in line with the country’s goals. It was approved last June.
Bases for the IPP are the President’s social contract with the people of the Philippines, the Philippine Development Plan 2011-2016, the SME Development Plan, National Science and Technology Plan, the framework strategy for climate change and the 2011 state of the nation address.
Out of four categories, it is the preferred activities that usually sees more change.
For this year, the IPP provides incentives for projects in 13 industries--agriculture, agri-business and fisheries; creative industries or knowledge-based services; shipbuilding; mass housing; iron and steel; energy; infrastructure; research and development; green projects; motor vehicles; strategic projects; hospital and medical services; and disaster prevention, mitigation and recovery projects.
Out of the preferred activities list, iron and steel and hospital and medical services were the new additions to this year’s IPP.
Agriculture was introduced in last year’s IPP in support of the Aquino administration’s thrust to improve productivity, reduce importation and become self-sufficient in food.
For creative industries and knowledge-based services, Fondevilla stressed that the incentives are available for projects producing original content. These include business process outsourcing, IT and IT-enabled services. While film and performing arts were included in previous years, he said it was removed because there have been no applications.
Shipbuilding has been retained from the 2011 IPP as it is seen to have a great potential, trailing China, Japan and South Korea as a production base of shipbuilding.
Fondevilla identified mass housing projects as having the bulk of the BOI’s performance. He said the country needs to develop more low-cost housing. An addition to sub-category is for the manufacture of modular housing components. He said they noted that while real estate has been doing well in the country, materials being used in construction are imported.
Existing laws compel the BOI to include nine industries. Under the mandatory list are projects in industrial tree plantation; exploration, mining, quarrying and processing of minerals; publication and printing of books; refining, storage, marketing and distribution of petroleum products for new entrants; ecological waste management; clean water projects; rehabilitation, self-development and self-reliance of persons with disability, renewable energy and tourism.
All export activities and a special list for the ARMM region complete the four categories.
Fondevilla said the listing is general and that businesses are welcome to make proposals and visit the BOI to find out if they are eligible for incentives.
BOI governor Geronimo Sta. Ana, during the welcome remarks, added that companies are being encouraged to partner with state universities and colleges for research and development.
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