Legal basis and policy framework
- Section 300 of the NIRC, as amended by Republic Act No. 11534 (CREATE Act), mandates the BOI, in coordination with the Fiscal Incentives Review Board (FIRB), investment promotion agencies (IPAs), other administering agencies of tax incentives, and the private sector, to formulate the Strategic Investment Priority Plan (SIPP) for submission to the President for approval.
- The SIPP issuance follows Executive Order No. 226 (the Omnibus Investments Code), as amended, under which the prior 2020 Investment Priorities Plan (IPP) was signed by the President on 18 November 2020 and took effect on 06 December 2020.
- The CREATE Act establishes a requirement that the formulation and evaluation of the SIPP be done through a process involving coordination with government agencies and the private sector.
- FIRB Resolution No. 05-21 (14 April 2021) adopted the 2020 IPP and its General Policies and Specific Guidelines as a transitional SIPP, pending issuance of the newly formulated SIPP.
- FIRB Resolution No. 001-22 (21 February 2022) adopts the proposed SIPP and endorses it to the BOI for Presidential approval.
- BOI Board Resolution No. 08-21 (25 March 2022) approves the submission of the newly formulated SIPP to the President for approval in compliance with Section 300 of the NIRC, as amended, and Rule 4, Sections 2 and 7 of the Implementing Rules and Regulations of the CREATE Act.
- The SIPP is aligned with the updated Philippine Development Plan 2017–2022 and the long-term vision of Inclusive Innovation Industrial Strategy (i3S) of the Department of Trade and Industry and Pagtanaw 2050 of the Department of Science and Technology’s National Academy of Science and Technology.
Effect of approval on government agencies
- Upon the effectivity of the SIPP, all government agencies must issue the necessary regulations to ensure the SIPP’s implementation in a synchronized and integrated manner.
- No government body may adopt any policy or take any course of action contrary to or inconsistent with the SIPP and relevant laws.
- All IPAs must facilitate and expedite, to the extent possible, the setting up and conduct of registered projects or activities through the one-stop action center established pursuant to Section 310 of the NIRC, as amended.
- Local government units (LGUs) and other government agencies must coordinate with the concerned IPA to comply with Republic Act No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of 2018).
Structure of the 2022 SIPP
- The SIPP organizes priority activities into Tier I, Tier II, and Tier III.
- Tier I includes all activities listed in the 2020 Investment Priorities Plan, as amended by Memorandum Circular No. 2021-005, unless listed under Tier II or Tier III.
- Tier II includes, but is not limited to, the activities enumerated for key national priority areas under Tier II.
- Tier III includes, but is not limited to, the activities enumerated for higher-technology, advanced innovation, and innovation support facilities.
Tier I: retained 2020 IPP activities
- Tier I includes all 2020 IPP activities (as amended by Memorandum Circular No. 2021-005) where those activities are not listed under Tier II or Tier III.
- Memorandum Circular No. 2021-005 contains amendments to the General Policies and Specific Guidelines to implement the 2020 IPP on lifting the locational restriction of contact centers and non-voice business processing activities located in Metro Manila.
- The SIPP applies the moratorium on processing of applications for economic zones (ecozones) in Metro Manila under Administrative Order 18 series of 2019, unless otherwise lifted.
Tier II: priority sectors and activities
- Tier II includes Green Ecosystems, Health related activities, Defense related activities, Industrial Value-chain Gaps, and Food Security related activities.
- Green Ecosystems covers:
- Electric vehicles (EV) assembly (pure EV, plug-in hybrid EV, hybrid EV, fuel cell EV);
- Manufacture of EV parts, components and systems;
- Establishment and operation of EV infrastructure;
- Manufacture of energy efficient maritime vessels and equipment;
- Electronic devices and circuits for smart grid and renewable energy (includes wearable solar devices);
- Bioplastics and biopolymers;
- Renewable energy;
- Energy efficiency and conservation projects;
- Energy storage technologies; and
- Integrated waste management, disposal, & recycling.
- Health related activities covers:
- Manufacturing in support of the Vaccine Self-Reliance Program or other health-related programs as endorsed by DOH, DOST, or other similar agencies;
- Medicines;
- Active pharmaceutical ingredients; and
- Specialty hospitals.
- Defense related activities covers defense-related activities endorsed by the Department of National Defense (DND), Armed Forces of the Philippines (AFP), or National Security Council (NSC).
- Industrial Value-chain Gaps covers activities addressing value chain gaps in:
- Steel, textiles, chemicals;
- Green metals processing (copper, cobalt, nickel);
- Crude oil refining; and
- Lab-scale wafer fabrication.
- Food Security related activities covers products and services critical to competitively ensure food security or in support of green/organic agriculture, as endorsed by DA or PCAARRD, including integrated food production and processing activities (e.g., dairy), production and/or adoption of hybrid seeds contained in the National Seed Industry Council (NSIC) Crop Variety Registration, manufacture of animal vaccine, pesticides and fertilizers, and agricultural and fisheries machinery and equipment and their parts and components.
Tier III: advanced R&D and innovation
- Tier III includes, but is not limited to, the following priority categories: R&D and fourth industrial revolution digital production technologies, highly technical manufacturing and innovative products/services, and innovation support facilities.
- Research & development (R&D) and activities cover adopting advanced digital production technologies of the fourth industrial revolution, including robotics, artificial intelligence (AI), additive manufacturing, data analytics, digital transformative technologies (cloud computing services, hyperscalers, data centers, and digital infrastructure), nanotechnology (including nanoelectronics), biotechnology, production and/or adoption of new hybrid seeds, and other Industry 4.0 technologies.
- Highly technical manufacturing and production of innovative products and services includes manufacture of equipment, parts & services; commercialization of intellectual property (IP) and R&D products/services; aerospace; medical devices (except personal protective equipment); internet of things (IoT) devices and systems (including wireless sensors and devices); full-scale wafer fabrication; and advanced materials.
- Establishment of innovation support facilities includes R&D hubs; Centers of Excellence; science & technology parks; innovation incubation center; tech startups, startup enablers; incubators & accelerators; and space-related infrastructures.
Additional qualifying activities under CREATE Act
- Additional activities that comply with Section 296 of the CREATE Act can qualify under Tiers II and III pursuant to Section 302 of the CREATE Act.
- Additional activities under Tier III must be duly endorsed by relevant agencies such as the Department of Science and Technology (DOST).