Palace approves new investment perks plan

President Arroyo has approved the 2009 Investment Priorities Plan (IPP), which contains a unique “contingency list” that will grant incentives to firms that save or generate jobs amid the global economic slowdown.

“The 2009 IPP opens opportunities for the country to attract more quality investments into industries and services that would maintain and improve the country’s competitiveness and ensure employment for the Filipino people,” the President said in Memorandum Order 299, which she signed on Thursday last week.

Under the Preferred Activities of the 2009 IPP are two lists—the Contingency and Regular lists.

The Contingency List will cover existing projects and/or activities affected by the current global economic crisis that will either retain investments and maintain their number of employees; retain investments and increase their number of employees; increase investments and maintain their number of employees; or increase investments and increase current number of employees.

This list also covers new projects of micro, small and medium enterprises as defined under the revised Magna Carta for Micro, Small and Medium Enterprises. Enterprises registered under this list may be entitled to Income Tax Holiday (ITH), the memorandum said.

However, projects not qualified under the Contingency List include banks and financial institutions; retailing business as defined under Republic Act 8762; all services except those qualified under the Regular List; small-scale mining as defined under Presidential Decree 1899 and R.A. 7076; activities that are restricted/regulated by law or ordinances for reasons of security, defense and risk to health and morals; activities of non-Philippine nationals engaged in small- and medium-sized domestic market enterprises that are not qualified under the Foreign Investment Act as amended by R.A. 8170; non-agricultural basic consumer goods; personal care products; all existing power and infrastructure projects with sovereign guarantee or granted ITH; and other activities as may be determined by the Board of Investments.

The Regular List retains the industries included in last year’s plan.
— Ben Arnold O. de Vera, Manila Times