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Pursuant to Article 29 of the Omnibus Investments Code of 1987, the attached 2008 Investment Priorities Plan (IPP) is hereby approved. Further to the provision of said Article, upon the effectivity of the IPP, all government agencies and entities are enjoined not to adopt any policy or take any course of action contrary to or inconsistent with the IPP.

This Memorandum Order shall take effect fifteen (15) days after its publication as required under Article 31 of the Omnibus Investments Code of 1987.

DONE in the City of Manila, this 9th of May, in the year of Our Lord, Two Thousand and Eight.


By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary


MESSAGE
The economic performance of the Philippines in 2007 is at its highest level in 31 years with the GDP growing at 7.3%. this is a clear testament that my Administration's economic program as laid down in my 10-point agenda and the 2004-2010 Medium Term Philippine Development Plan is now bearing fruits.

We only need to persevere more to sustain the growth momentum. I am pleased that the Investment Priorities Plan (IPP) that has contributed to the Philippines' development goals will remain and continue to be a significant tool in achieving greater heights for the country's investment performance.

The 2008 IPP seeks to attract the types of quality investments that will drive the economy to generate more gainful employment for our people, encourage technological innovations, and provide support for industries to seize the opportunities and challenges of global demands and competition.

The realization of my Administration's development agenda and the successful implementation of the 2008 IPP require unity, cooperation and risk sharing among all sectors. I reiterate that a continued strong and committed public and private partnership shall move us towards our goal to elevate the Philippines to 1st World Country Status in 20 years.

Mabuhay tayong lahat!


Manila, MAY 09, 2008


Part I
PRIORITY INVESTMENT AREAS

The coverage, description and entitlement to incentives of the following listed activities shall be defined and clarified in the General Policies and Specific Guidelines to be issued by the Board of Investments (BOI).

The grant of incentives under the 2008 IPP is subject to Article 7, paragraph 3 of EO 226, to wit:

"ART. 7 Powers and Duties of the Board. xxx
(3) Process and approve applications for registration with the Board, imposing such terms and conditions as it may deem necessary to promote the objectives of this Code, including refund of incentives when appropriate, restricting availment of certain incentives not needed by the project in the determination of the Board x x x"

I. PREFERRED ACTIVITIES

     A. Agriculture/Agribusiness and Fishery


     B. Infrastructure



     C. Tourism


     D. Research and Development


     E. Engineered Products


     F. Strategic Activities ^[1]

1. employment generation of at least 1,000; or
   
2. use of internationally accepted high level of technology.
   

II. MANDATORY INCLUSIONS

      Activities that require their inclusion in the IPP as provided for under existing laws.

LAW	ACTIVITY
P.D. 705	Industrial Tree Plantation[2]
	This covers extensive plantation of forest land of treecrops (except fruit trees) for commercial and industrial purposes.
R.A. 7942	Exploration, Mining, Quarrying, and Processing of Minerals[2]
	This covers exploration and development of mineral resources, mining, quarrying and processing of metallic and non-metallic minerals.
R.A. 8047	Printing, Publication and Content Development of Books or Textbooks
	This covers printing, re-printing, publication and content development of books or textbooks.
R.A. 8479	Refining, Storage, Marketing and Distribution of Petroleum Products[3]
	This covers refining[4], and storage, distribution, and marketing of petroleum products located in government identified logistics hubs.
R.A. 9003	Ecological Solid Waste Management
	This covers the establishment of waste recycling facilities.[4]
R.A. 9275	Clean Water Act
	This covers the establishment of industrial waste water treatment facilities, and sewage collection integrated with treatment facilities[4], and the adoption of water pollution control technology, cleaner production and waste minimization[2].
R.A. 7277	Development and Self-Reliance of Disabled Persons
	This covers the manufacture of technical aids and appliances for the use and/or rehabilitation of disabled persons, and the establishment of special schools, homes, residential communities or retirement villages solely to suit the needs and requirements of persons with disability.

III. EXPORT ACTIVITIES

1. Sub-assembly/fabrication of parts/components of the final export product supplied to exporters located in export processing/economic zones/Freeports or to exporters operating Bonded Manufacturing Warehouse (BMW);
   
2. Manufacture of supplies directly/reasonably needed in the production of non-traditional export products to exporters located in export processing/economic zones/Freeports or to exporters operating BMW;
   
3. Services comprising a portion of the manufacturing process;
   
4. Product testing and inspection;
   
5. Repair and maintenance; and
   
6. Logistics services rendered to exporters ^[5].
   

Notes:

1. The following activities are not entitled to Income Tax Holiday (ITH) except as provided herein:
   

1. New projects involving the same activity to be undertaken by the same company or another company with the same stockholders or interlocking shareholders to the extent of 50% ownership. This shall not apply to the following:
   

1. Direct and constructive exports;
   
2. Projects undertaken by Micro, Small and Medium Enterprises (MSMEs);
   
3. Socialized and low-cost mass housing;
   
4. Tourism projects in accordance with the Tourism Master Plan;
   
5. Shipbuilding;
   
6. Shipping serving the nautical highways and missionary routes; and
   
7. Air transport serving the missionary routes.
   

1. Vertical mass housing projects located in Metro Manila;
   
2. Power generation projects;
   
3. Shipping; and
   
4. Air Transport.
   

2. Expansion and Modernization projects except the following:
   

1. Direct and constructive exports;
   
2. MSMEs projects;
   
3. Socialized and low-cost mass housing;
   
4. Tourism projects in accordance with the Tourism Master Plan;
   
5. Printing, Publication or Content Development of Books or Textbooks;
   
6. Manufacture of long steel products (billets and reinforcing steel bars); and
   
7. Strategic activities.
   

3. Indirect exports of goods except constructive exports;
   
4. Industrial tree plantation;
   
5. Exploration, mining, quarrying, and processing of minerals except those projects that comply with the minimum investment requirement or degree of value adding as provided in the Specific Guidelines;
   
6. Storage, marketing and distribution of petroleum products ^[3] except when located in government identified logistics hubs;
   
7. Logistics services rendered to exporters;
   
8. Adoption of water pollution control technology, cleaner production and waste minimization;
   
9. Activities listed in the IPP but intended for the firm's own use;
   
10. Projects with sovereign guarantee or guaranteed rate of return; and
    
11. Privatized projects paying income taxes prior to or at the time of privatization except those pre-qualified before the effectivity of the 2008 IPP with ITH factored-in in the bids.
    

2. In general, the following activities are not qualified for re-registration:
   

1. Registered projects that stopped operations and were subsequently cancelled.
   
   
2. Registered projects that were not implemented and were subsequently cancelled.
   

3. Pioneer status shall not be automatically granted on the basis of new product or new technology.

IV. ARMM LIST

1. Export Trader and Service Exporters
   
2. Support Activities for exporters
   

1. Processed Food
   

1. Production and processing of Halal Meat and Halal foods, leguminous and other vegetable - based protein (textured, palletized or liquid), and spices processing (e.g., hot pepper,  black pepper, ginger, etc.)
   Note: May be integrated with plantation
   
   
2. Vegetable oils (e.g. peanut oil, rice bran oil, sunflower and soybean oil)
   
   
3. Production of food crops
   Note: Maybe integrated with post-harvest processing and other vegetables (such as tomatoes)
   
   
4. Integrated coconut processing and plantation
   
   
5. Seaweeds production and processing
   
   
6. Cassava processing and other root crops
   Note: Maybe integrated with plantation
   
   
7. Fruit processing (e.g. durian, mangosteen, jack fruit, marang, banana, mango, passion fruit, guava, calamansi, and guyabanos) and plantation
   
   
8. Aquaculture (fish production and processing) such as, but not limited to:
   

• Frozen fish
  
• Chilled fish
  
• Canned fish
  
• Abalone
  
• Crab fattening
  
• Eel production
  
• Squid processing
  
• Carp and tilapia production and processing
  
• Tropical fish production and processing
  
• Shrimps/prawn
  
• Lapu-Lapu (grouper) and other marine products
  

9. Corn flour mill (integrated with plantation)
   
   
10. Young corn production
    Note: May include processing/canning
    
    
11. Mushrooms culture and processing
    
    
12. Sweet potato plantation and processing
    
    
13. Crocodile farming and processing
    

2. Cutflower Production
   
   
3. Pearl Culture and Processing
   
   
4. Industrial Tree Plantation (include rubber, rattan, bamboo, etc.), Wood Processing (cement wood board and fiberboard), and Reconstructed Veneer
   
   
5. Shipbuilding / Ship Breaking / Ship Repair and Watercraft
   
   
6. Abaca Pulp Plantation and Processing
   
   
7. Palm Oil Plantation / Processing/ Refining and Germinated Oil Palm Seeds
   
   
8. Coffee Processing (maybe integrated with plantation)
   
   
9. Particle Board (use of agri-based waste material such as rice straw, wood waste, etc.)
   
   
10. Activated Carbon Manufacturing (use of coconut shell, wood based, etc.)
    
    
11. Feeds Production (animal feeds and feeds for aquaculture)
    
    
12. Tobacco Plantation and Processing
    
    
13. Production of Beverage Crops (but not limited to)
    

1. Cacao Beans
   
2. Coffee Beans (Arabica variety)
   

14. Production of Plantation Crops and other Medical Herbs/Essential oil plants (including flower extracts)
    
    
15. Jatropha Plantation and Processing
    
    
16. Production of Livestock and Poultry (including dairy products)
    

1. Beef (including cow-calf and feedlot operations)
   
2.  Carabao (water buffalo) production
   
3. Goats and sheep
4. Frozen semen and embryos
   
Note: Includes natural method and artificial insemination and embryo transfer technology.



17. Bricks and Roofing Tiles production
    
    
18. Quality Seed and Seedlings of Fruit Trees and Other Planting Materials Propagated Asexually or by Tissue Culture
    
    
19. Sugarcane Plantation, Processing and Refineries
    
    
20. Sericulture
    
    
21. Mosquito Coil Processing
    

C. BASIC INDUSTRIES


1. Pharmaceuticals
   


1. Antibiotics
   


• Penicillin
  
• Streptomycin
  
• Tetracycline
  
• Soft gelatin capsules
  


2. Medical Devices
   


• Prosthetics
  
• Diagnostics
  


3. Other Pharmaceuticals, herbal medicines
   


2. Textile and Textile Products
   
   
   1. Yarns and fabrics
      
      
   2. Hand-woven textiles
      
      
   3. Specialty fabrics
      
      
   4. Tire cord fabrics
      Note: Must be integrated with weaving and dipping units.
      
      
   5. Ramie (degummed, staple fiber, combed tops, noel slivers)
      
      
   6. Fish nets
      
      
   7. Fabrics made of indigenous raw materials
      
      
   8. Silk reeling


3. Fertilizers (organic and inorganic)
   
   
1. Solid waste materials
   


4. Mining (exploration and development of mineral resources)
   


1. Mining and quarrying of metallic and non-metallic minerals (including small scale as defined under P.D. 1899, but to exclude river beds in operations)
   
   
2. Processing of minerals (such as beneficiation and other metallurgical methods)
   


5. Cement - at least 1.0 million MTPY capacity (clinker based)
   

D. CONSUMER MANUFACTURES


1. Rubber Products such as:
   


1. High pressure and hydraulic rubber hoses
   
   
2. Rubber bolts
   
   
3. Industrial rubber rollers
   
   
4. Rubber tires
   


2. Leather Products
   

E. INFRASTRUCTURE AND SERVICES


1. Public Utilities (with developmental route of the five provinces and one city of the ARMM and other adjacent cities and provinces)
   


1. Common carriers (land, air and water transport facilities)
   
   
2. Electric transmission/distribution
   
   
3. Water supply facilities/waterways and sewerage systems
   
   
4. Buses /cargo trucks
   
   
5. Other specialized mass transport systems
   
   
6. Power generation like hydro power, geothermal and natural gas
   


2. Telecommunication with International Gateways
   
   
3. Tourism
   


1. Tourism estate
   
   Subject to guidelines developed jointly by the RBOI - ARMM and Department of Tourism (DOT).
   
   
2. Tourist accommodation facilities
   


• Hotels
  
• Resorts
  
• Other tourist accommodation facilities such as apartel, pension houses, tourist inns, and
  


3. Tourist transport facilities
   


• Air
  
• Water
• Tourist buses and taxi/van
  
Note:  Endorsed by the DOT.

New and expansion projects may be registered.


4. Industrial Service Facilities
   


This covers the following activities:



1. Common centers:
   


• Testing and quality control laboratories
  
• Training and demonstration centers
  
• Tool shops and similar facilities
  
• Metal casting
  
-    Foundry
-    Die casting
-    Powder
-    Metallurgy



• Metal working
  
-    Die and mold
-    Electroplating
-    Forging
-    Machining
-    Heat treatment
-    Brass making



• Furniture
  
-    Kiln drying
-    Treatment and processing facilities



• Ceramics
  
-    Kiln
-    Glazing



•  Food processing
  
-    Bottling and canning of distilled water
-    Industrial salt
-    Vapor heat treatment
-    Slaughter house/abattoir



• Automotive battery plate manufacturing
  
  
Note: The following criteria must be met:
• The project will serve the common needs of the industry in the locality and;
  
• The project will improve the relative status & comparative advantages of the industry
  


2. Development of retirement villages
   


• Shall include health and medical facilities including amenities required by the Philippine Retirement Authority (PRA).
  
• Subject to the guidelines to be approved by RBOI-ARMM in consultation with the PRA, the Department of Health (DOH), the Regional Planning and Development Office and other concerned agencies.
  


5. Petrochemical Complex
   
   
6. Industrial Gases (such as oxygen and nitrogen)
   
   
7. Miscellaneous Chemical Products
   


1. Biotechnological/biosynthetic chemicals
   
   
2. Essential oils
   
   
3. Fine chemicals
   

F. ENGINEERING INDUSTRIES


1. Engineering Products
   


1. Motor vehicle parts and components
   
2. Automobile parts and assembly
   
3. Modern offset printing
   


2. Electronics and Telecommunication Products
   
   
3. Fabrication of Construction Materials
   
   
4. Hydro Power Plant
   

G. ARMM PRIORITY AND TOURISM AREAS

Note: Listed below are potential tourist destinations that need further exploration and evaluation for intensified promotion, development and marketing.



NUCLEUS	GATEWAY	SATELLITE DESTINATION
AREA I - SULU	JOLO	SULU PROVINCE
AREA II - TAWI-TAWI	BONGAO	TAWI-TAWI PROVINCE
AREA III - LANAO del SUR	MARAWI CITY	LANAO DEL SUR PROV.
AREA IV - MAGUINDANAO	SHARIFF AGUAK	MAGUINDANAO PROV.
AREA V - SHARIFF KABUNSUAN	DATU ODIN SINSUAT	SHARIFF KABUNSUAN PROV.
AREA VI - BASILAN	ISABELA	BASILAN PROVINCE