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2013 INVESTMENT

PRIORITIES PLAN

Adriano, Myka

Baares, Paul Christian T.

Delos Santos, Kate Kimberly S.

Navidad, Carence Janelle

Ortega, Karla Katrina S.Pedrealba, Cara Krystle B.

Veloso, Dimple Ivy B.

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Why Philippines?

Filipino workforce

Low cost doing business

Located in the heart of Asia Abundant resources

Liberalized and business-friendly

Unlimited business opportunities

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Investment Priorities Plan

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Article 26 of the Omnibus InvestmentsCode of 1987 (Executive Order No. 226)

ART. 26. Investment Priorities Plan shall mean the overall plan preparedby the Board which includes and contains:

(a) The specific activities and generic categories of economic activity

wherein investments are to be encouraged and the corresponding productsand commodities to be grown, processed or manufactured pursuant theretofor the domestic or export market;

(b) Specific public utilities which can qualify for incentives under this Code

and which shall be supported by studies of existing and prospectiveregional demands for the services of such public utilities in the light of thelevel and structure of income, production, trade, prices and relevanteconomic and technical factors of the regions as well as the existing

facilities to produce such services;

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(c) Specific activities where the potential forutilization of indigenous non-petroleum basedfuels or sources of energy can be bestpromoted; and

(d) Such other information, analyses, data,guidelines or criteria as the Board may deemappropriate.

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Investment Priorities Plan

This plan outlines the sectors in which theFilipino government is actively promotinginvestment with incentives and a

favorable regulatory framework.

Prepared by the Board of Investments

Annually

Must be based on the criteria ininvestment priority determination Art.28, EO No. 226

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Investment Priorities Plan

Shall be submitted to the President

May be subject to amendments

Publication

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2013 Investment Priorities Plan

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Theme

A New Day for Investments: Coherent,Consistent and ; Creative

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Goal

More Investments, More Jobs

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Focus of 2013 IPP

Steadfast in its commitment to reduce poverty andbring equitable progress, the 2013 Investment

Priorities Plan (IPP) will focus on key areas that

will increase exports, create more jobs forFilipinos, promote skills development, advance

technology, raise revenue generation, spurcountryside empowerment, and contribute to

the preservation of the environment.

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Priority Investment Areas

The Regular List, which has thirteen (13)priority investment areas that wereidentified To support the current priority

programs of the government.

The Mandatory List containsareas/activities where the inclusion in the

IPP as provided under existing laws

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Priority Investment Areas

The Export Activities which coversmanufacture of export products, servicesexports and activities in support of

exporters.

The ARMM List which encompassespriority investment areas that have been

determined by the Regional Board ofInvestments of the Autonomous

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I. PREFERRED ACTIVITIES

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Agriculture/Agribusiness andFishery

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Agriculture/Agribusiness andFishery

This covers commercial production, commercial processing ofagricultural, herbal and fishery products and services in support ofAgriculture / Agribusiness and Fishery.

Philippine Agriculture has enormous potential because of itsfavorable geographic location to export markets and large arableland.

Investment opportunities for the following:

High value crops coffee, avocado, squash, red hot chili, peanuts,mongo beans.

New varieties of coconut (higher yields and faster maturities)

Intercropping (cacao with coconut)

Convert commodities to specialty products

Agri-tourism

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Agriculture/Agribusiness andFishery

Constraints to Philippine Agriculture

Underinvested in Agricultural Sector

Research and development is low priority

Lack of agricultural credit support and abilityof farmers to access capital

Corruption

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Creative Industries/Knowledge-Based Services

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Creative Industries/Knowledge-Based Services

Business process outsourcing (BPO)activities, and IT and IT-enabled servicesthat involve original content

Creative industries/knowledge-basedservices with original content

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Shipbuilding

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Shipbuilding

Construction and repair of ships

Shipbreaking / shiprecycling.

So far, the Philippines is the fourth largestshipbuilder, next to Korea, China andJapan.

The arrival of foreign shipbuilders in thePhilippines propelled the export growthof Philippine-made ships in theinternational market.

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Mass Housing

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Mass Housing

Development of low-cost mass housing

Manufacture of modular housingcomponents

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Iron and Steel

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Iron and Steel

Basic iron and steel products, long steel products andflat hot-/cold-rolled products.

STEEL DEMAND Continuing growth of real estate developments

Reconstruction of typhoon and earthquake affected areas

Increased government infrastructure spending

STEEL SUPPLY Significant rise of imports for billets, wire rods, rebars, pipes and

tubes Significant rise of local production for rebars, pipes and tubes

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Energy

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Energy

Exploration, development, and/orutilization of energy sources adoptingenvironmentally-friendly technologies

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Infrastructure

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Green Projects

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Manufacture of MotorVehicles

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Strategic Projects

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Hospital/Medical Services

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Disaster Prevention, Mitigationand Recovery Projects

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II. MANDATORY LIST

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Industrial Tree Plantation

This covers extensive plantation of forest land and tree

crops (except fruit trees) for commercial and industrialpurposes.

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Exploration, Mining, Quarryingand Processing of Minerals

Covers the exploration and development of mineralresources, mining/quarrying and processing of metallicand non-metallic minerals.

P bli i P i i f

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Publication or Printing ofBooks / Textbooks

Covers printing, re-printing, publication andcontent development of books or textbooks.

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Refining, Storage, Marketing andDistribution of Petroleum Products

Covers refining, storage,distribution and marketing ofpetroleum products.

E l i l S lid W

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Ecological Solid WasteManagement

Covers the establishment of wasterecycling facilities.

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Clean Water Projects

Covers the establishment of wastewater treatment

facilities and sewage collection integrated withtreatment facilities and the adoption of waterpollution control technology, cleaner productionand waste minimization.

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Rehabilitation, Self-Development andSelf-Reliance of Persons with Disability

Covers the manufacture of technical aids andappliances for the use and/or rehabilitaion ofpersons with disablity, and the establishment of

special schools, homes, residential communities orretirement villages solely to suit the needs andrequirements of persons with disablity.

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Renewable Energy

Covers developers of renewable energy, including hybrid

systems.Manufacturers, fabricators and suppliers of locally producedrenewable energy equipment and components.

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Tourism

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III. EXPORT ACTIVITIES

Manufacture of export products services

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Manufacture of export products, servicesexports and activities in support of

exporters.

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IV. ARMM List

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ARMM List

Covers priority activities that have beenidentified by the Regional Board ofInvestments of the ARMM (RBOI-ARMM)

in accordance with E.O. No. 458. TheRBOI-ARMM may also register andadminister incentives to activities in this

IPP for projects locating in the ARMM.

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Export Activities

Export Trader and Service Exporter

Support Activities for Exporters

A i l

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Agriculture,Agribusiness/Aquaculture & Fishery

Production and processing of agriculturaland fishery products (production ofHalalmeat and foods).

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Basic Industries

Covers the production of pharmaceuticalssuch as antibiotics and medical devices,textile and textile products, inorganic and

organic fertilizers using solid wastesmaterials, mining exploration anddevelopment of mineral resources .

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Consumer Manufactures

Covers processing of rubber products tobe integrated with plantation and leatherproducts.

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Infrastructure and Services

Covers public utilities with developmentalroute of the five provinces and one city ofARMM and 0ther adjacent cities and

provinces.

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Industrial Service Facilities

Covers engineering products, electronicsand telecommunication products,fabrication of construction materials and

hydropower plant.

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Engineering industries

Covers engineering products, electronicsand telecommunication products,fabrication of construction materials and

hydropower plant.

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Logistics

Covers the transportation of cargoesand/or passengers (air; sea and/or land)and freight/cargo forwarding.

BIMP EAGA Trade and

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BIMP EAGA Trade andInvestment Enterprises

Covers enterprises located or have theirbase of operation in the BIMP EAGA,namely, Brunei; Sabah and Sarawak in

Malaysia; Maluku, Sulawesi, Kalimantanand Iringaya in Indonesia; and Mindanaoand Palawan in the Philippines, who shall

invest and engage in economic activity inthe ARMM including the age oldTraditional Barter Trading System in theBIMP EAGA.

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Tourism

Covers the establishment of tourism estatesubject to guidelines developed jointly byRBOI-ARMM and the DOT-ARMM,

tourist accommodation facilities

Health and Education Services

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Health and Education Servicesand Facilities

Covers the establishment of privatehospitals, medical clinics, wellnesscenters, primary education, secondary

education, tertiary education (colleges,universities and vocational-technicalschools) and ancillary services including

any and all health and edication relatedinvestment.

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Halal Industry

This covers services and the productionand processing of products under Muslimor Islamic law.

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OVERVIEW OF 2014

INVESTMENT PRIORITIESPLAN

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Overview of 2014 IPP

The Investment Priorities Plan (IPP) isannually issued for the past 40 years bythe Board of Investments, however, the

2014 IPP, will have a three-year effectivityperiod.

The 2014 IPP, is yet to be issued as the BOI

has not yet finalized the final list of thepriority sectors eligible for fiscalincentives.

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Overview of 2014 IPP

4. Economic and low- cost housing horizontaland vertical;

5. Energy;

6. Public infrastructure and logistics likeairports and PPP projects;

7. Sectors mandated by law to be entitled toincentives like tree plantation, mining,refining, storage and distribution ofpetroleum products, renewable energy andtourism

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Thank You!