BoI extends ‘contingency’ list for another six months

THE Board of Investments has extended the contingency list of the 2009 Investment Priorities Plan to the first half of the year after the National Economic and Development Authority declared the global financial crisis is not yet over.

The investment board earlier dropped the contingency list of economic sectors hit by the global crisis from the draft investment priorities plan this year.

The list covered economic activities that reeled from the global recession, especially the export sector, and granted fiscal incentives to affected companies to help them preserve jobs and even encourage expansion.

The board had been waiting for an official announcement of Neda on the status of the financial crisis as basis for extending or dropping the implementation of the contingency list.

A ranking investment official earlier said the board wanted “official communications from Neda to know if the financial crisis is over.”

“If Neda doesn’t say so, then we will go back to the board,” he said.

The contingency list was a special feature in the 2009 IPP with a provision that it would be removed once Neda declared the financial crisis was over.

The investments body drew up the 2009 IPP to entice companies affected by the global financial crisis to keep their operations and their workers and even hire more amid the economic difficulties.

The Philippine Exporters Confederation of the Philippines Inc., meanwhile, sought retention for another two years.

Philexport said in a position paper that it wanted a longer period for the contingency list to help its crisis-affected members of about 4,000 enterprises, 51 industry affiliates and 19 field chapters fully recover.

Job saving was the main thrust under the contingency list of the 2009 IPP as the global financial crisis turned for the worst last year, affecting mostly the manufacturing sector, especially the electronics industry and other export-oriented sectors.

Activities that resulted in the retention of investments and the current number of workers were entitled to additional tax perks from the government.

The new IPP becomes effective around May of each year. –Julito G. Rada, Manila Standard Today