Approving the 2020 Investment Priorities Plan to include the qualified activities relating to Covid-19 pandemic response and the “Balik Probinsya” program.

On November 18, 2020, President Rodrigo Duterte, through the issuance of Memorandum Order No. 50, approved the 2020 Investment Priorities Plan (IPP) which typically includes the qualified activities relating to the Covid-19 pandemic response and the “Balik Probinsya” program.

Under this memorandum, the Board of Investments shall ensure the attainment of and consistency with the State policies under EO No. 226 and the national goals under Republic Act (RA) No. 11469 or the “Bayanihan to Heal as One Act”, and RA No. 11494 or the “Bayanihan to Recover as One Act”.

The following are the highlights/additions to the list of preferred activities for investment in 2020 IPP compared to the 2017 IPP:

I. New Provision/ Inclusions
• All qualified activities relating to the fight against the COVID-19 pandemic
Those related to the production of essential goods such as medicine, medical equipment and devices, PPE, surgical equipment and supplies and provision of essential services such as crematorium, health waste treatment and disposal, laboratories, test facilities, hospitals, and quarantine facility

• Programs supportive of investment activities outside Metro Manila
Those programs that will help to generate employment outside congested urban areas such as but not limited to Balik Probinsya Program. Pursuant to Art. 41 of EO 226, the BOI may provide up to 6 years of Income Tax holiday to qualified activities under listing 1 and 2 of Bayanihan I (RA 11469).

• Energy Efficiency and Conservation (R.A. 11285)
This was under Special law in which activities where inclusion in IPP is mandated for the purpose of incentives.

• BANGSAMORO AUTONOMOUS REGION IN MUSLIM MINDANAO (BARMM) LIST
As to the second part of the IPP, the memorandum enhanced the investments for Islamic Banks to support RA 11439.

II. Preferred Activities for Investment
A. Preferred Activities

1. All qualified activities relating to the fight against the COVID-19 pandemic (cited above)
2. Investment in activities, subject to determination by the board (cited above)
3. All qualified Manufacturing Activities including Agro-Processing
4. Agriculture, Fishery, and Forestry.
5. Strategic Services
   • Integrated Circuits (IC) Design
   • Creative Industries/ Knowledge-Based Services
   • Maintenance, Repair, Overhaul (MRO) of aircraft
   • Industrial Waste Treatment
   • Telecommunications
   • State-of-the-art Engineering, Procurement, and Construction
6. Mass Housing
7. Innovation Drivers
8. Inclusive Business (IP) Models
9. Environment or Climate Change-Related Projects
10. Energy

B. Export Activities

1. Production and manufacture of export products
2. Service Exports
3. Activities in support of exporters

C. Special Laws

1. Industrial Tree Plantation (P.D 705)
2. Mining (R.A 7492) – limited to capital equipment incentive
3. Publication or Printing of Books/Textbooks (R.A. 8047)
4. Refining, Storage, Marketing and Distribution of Petroleum Products (R.A. 8479)
5. Rehabilitation, Self-development and Self-Reliance of Persons with Disability (R.A. 7277)
6. Renewable Energy (R.A. 9513)
7. Tourism (R.A. 9593)
8. Energy Efficiency and Conservation (R.A. 11285)

The 2020 Investments priorities plan has a validity of three years (2020-2023) and subject to annual review to accommodate any changes.

Also enclosed is the copy of the aforesaid MO No. 50, series of 2020 for your reading pleasure.20201118-mo-50-rrd-2