Duterte OKs 2020 Investment Priorities Plan

November 20, 2020

President Rodrigo Duterte has approved the 2020 Investment Priorities Plan, including all qualified activities relating to the fight against the coronavirus pandemic.

Duterte issued on Thursday Memorandum Order No. 50, which contains the 2020 IPP.

Under qualified activities relating to fight COVID-19 pandemic are essential goods and services.

Essential goods cover the production or manufacture of medicines, medical equipment and devices, personal protective equipment, surgical equipment and supplies, laboratory equipment and its reagents, medical supplies, tools and consumables, among others.

Essential services include the provision of services such as but not limited to crematoriums, health waste treatment and disposal, laboratories, test facilities, hospitals, and quarantine facilities.

IPP also include investments in activities, subject to the determination by the Board of Investments, supportive of programs to generate employment opportunities outside of congested urban areas such as but not limited to the proposed Balik Probinsya Program or any similar program that may be implemented by government.

The BOI may provide up to six years income tax holidays to qualified activities relating to the fight against COVID-19 and investments in activities supportive of programs to generate employment opportunities outside congested urban areas.

Also part of the IPP are all qualified manufacturing activities including agro-processing; agriculture, fishery and forestry; strategic service; healthcare and disaster risk reduction management services; mass housing; infrastructure and logistics, including local government units' public-private partnership projects; innovation driver; inclusive business models; environment or climate change-related projects; and energy.

The IPP also covers export activities and activities mandated for purposes of incentives under special laws, such as industrial tree plantation, mining, publication or printing of books/textbooks, renewable energy, tourism, and others.

Duterte also approved the 2020-2022 IPP list of the Bangsamoro Autonomous Region in Muslim Mindanao.

The BARMM list includes export activities; agriculture, agribusiness, aquaculture and fishery; aquaculture and fishery; basic industries; infrastructure and services; industrial service facilities; engineering industries; logistics; BIMP-EAGA related investment enterprises; tourism; health and education services and facilities; halal industry; investment operations under Republic Act No. 11439 or An Act Providing for the Regulation and Organization of Islamic Banks; and Energy.

"Upon effectivity of the IPP, all government agencies and entities are enjoined to issue the necessary regulations to ensure its implementation in a synchronized and integrated manner. No government body shall adopt any policy or take any course of action contrary to, or inconsistent with, the IPP and relevant laws," said Duterte in the MO.

In the grant of incentives, the MO said the BOI shall ensure the attainment of and consistency with the state policies under EO 226 or the "Omnibus Investment Code of 1987" and the national goals under RA 11469 or the Bayanihan to Heal as One Act and RA 11494 or the Bayanihan to Recover as One Act.

Duterte tasked the BOI chairman to render an annual report to him on the accomplishments and implementation of the IPP.

The Order shall take effect 15 days after its publication in a newspaper of general circulation. Celerina Monte/DMS