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  PHILIPPINE FOREIGN INVESTMENT LAWS


This web page features the full text of the
MEMORANDUM ORDER NO. 105
APPROVING THE 2000 INVESTMENT PRIORITIES PLAN
 
    MEMORANDUM ORDER NO. 105
    APPROVING THE 2000 INVESTMENT PRIORITIES PLAN

Pursuant to Article 29 of the Omnibus Investments Code of 1987, the attached 2000 Investment Priorities Plan (IPP) is hereby approved.

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 31st day of May in the year of our Lord Two Thousand.

    JOSEPH EJERCITO ESTRADA
    President

    By the President:chanroblesvirtuallawlibrary

    RONALD B. ZAMORA
    Executive Secretary


THE 2000 INVESTMENT PRIORITIES PLAN
FOREWORD

The 2000 Investment Priorities Plan (IPP) embodies the framework within which investor confidence is established and maintained. The very essence of economic development lies not only on the capability to cater to investments in the urban areas and in the metropolis, but more importantly, to support sustainable growth in the countryside. Investment generation, thus, becomes one important vehicle towards eventual poverty eradication as envisioned by the Estrada Administration at the end of his term. This year's IPP shall therefore have its theme "UPLIFTMENT OF THE LIVES OF THE COMMON FILIPINO BY DEVELOPING GLOBALLY COMPETITIVE INDUSTRIES".

Consistent with the action plans of the administration, the 2000 IPP has identified the following goals:chanrobles virtual law library

  • To alleviate and eventually eradicate poverty through employment generation
  • To explore other activities/areas which can aid in increasing the country's exports
  • To further the growth of agricultural productivity and increase countryside development by attracting investment focused at providing adequate industry support and infrastructure system
  • To focus on sustainable development by supporting activities and technologies in line with the country's commitment to environmental protection
  • To develop industries/sectors aimed at maintaining competitive advantage
  • Likewise, the IPP supports four local points identified by DTI as follows:chanroblesvirtuallawlibrary
  • For the participant in the global economy, access to new technology, and incentives for innovation in exports and services.
  • For business owner, a fair, transparent, competitive environment.
  • For income earner, more job opportunities and greater access to jobs.
  • For the ordinary household and consumer, value for hard-earned money, consumer information, advocacy and protection and enforcement of standards.
This year's IPP still adopts the regional approach of listing as a continuing effort for regional and countryside development. A distinct highlight of the 2000 IPP is the inclusion of a new heading, Industry Clusters. This is in response to a more focused support to industry competitiveness and development. This will highlight the value-chain among related industries.

Industry Clustering seeks to maximize the natural clusters existing in some of the specific regions in the country. Effectively, the identification of industry cluster in the 2000 IPP will accommodate not only the core industry but more important the allied services and linkages of the identified clusters. This is envisioned to be an effective tool in developing competitive advantage among industries; hence, making the regions the core of development.cralaw

The 2000 IPP also incorporate a special listing of economic activities determined for promotion and eligible for investment incentives by the Autonomous Region for Muslim Mindanao (ARMM). The ARMM IPP is the list of priority areas which have been independently determined by the Regional Board of Investments (RBOI) of the ARMM in accordance with E. O. 458. Economic activities in this special listing shall be pursued in the ARMM only.cralaw

However, economic activities listed in the National IPP may also be located inside the ARMM.cralaw

The preparation of the 2000 IPP was made possible in coordination with the IPP Inter-Agency Committee composed of Department of Finance (DOF), National Economic Development Authority (NEDA), and Presidential Management Staff (PMS). Concerned government agencies were likewise consulted and public hearings were held. The regional lists were completed in close coordination with BOI Extension Offices, Regional Growth Area Center and Regional Development Council.


(Sgd.) MAR ROXAS




2000 PRIORITY INVESTMENT AREAS
I.
NATIONAL LIST

A.  EXPORT ACTIVITIES

Coverage:chanroblesvirtuallawlibrary

1. Manufacture/production of non-traditional products (minimum export requirement of 50% if Filipino-owned; 70% if foreign-owned)

Non-traditional products shall exclude: (a) copra (b) crude coconut oil (c) desiccated coconut (d) copra meat and cake (e) inedible molasses (f) pineapple in syrup (g) logs (h) lumber (I) plywood and veneer and (j) unmanufactured tobacco.

2. Export trading

Trading of non-traditional export products

3. Services

Export of services such as knowledge, information, technology and systems and/or application or installation thereof in the project sites

Services provided to international airlines/shipping lines/military aircraft even if rendered locally may qualify for registration provided revenues are paid for in foreign currency. Mere deployment of people or individual practice of profession abroad shall not qualify for registration.

4. Support to exporters

Manufacturing activities and services rendered to exporters except financing services and trading other than export trading. B. SUPPORT TO GOVERNMENT PROGRAMS

Coverage:chanroblesvirtuallawlibrary

1.  Agricultural/fishery/forestry production, processing and services
 
- Commercial production of agricultural crops, livestock, and poultry, feeds/feed ingredients, fish species, and forest species seedlings

- Processing of a agricultural and fish products/by-products/wastes

- Service activities in support to the foregoing activities and to industrial plantation

2. Information Technology Services

- Software development projects

  • System software
  • Middleware
  • Applications software

- IT-enabled services

- Support and Knowledge

- Business Process Outsourcing

3. Mass housing projects including development and fabrication of housing components

4. Drugs and Medicines

5. Social Services

- Educational training institutions specializing in developing skills for the manufacturing, agriculture, fishery, forestry, mining, tourism, infrastructure and service sectors

- Health service such as hospitals, diagnostic centers, therapy centers, clinical laboratories, ambulatory health care facilities, facilities for mentally-ill patients, and other health services (as determined by the BOI in consultation with the Department of Health and other government agencies concerned)

- Social welfare services such as day care centers, senior citizens centers, centers for disabled, trauma/crisis centers, rehabilitation centers for youth offenders in selected areas and out-of school youths centers, and other social-welfare services, (as determined by the BOI in consultation with the Department of Social Welfare and Development and other government agencies concerned)

- Retirement villages (limited to new projects only)

6. Tourism

- Tourist accommodation facilities such as hotels, apartels, tourist inns, pension houses, and resorts

Resorts may also include special interest activities (that may or may not have accommodation facilities) such as but not limited to theme parks, convention and exhibition/trade display centers, eco-tourism projects and those involving environmentally sound tourism activities in a given ecosystem/specific locality.

- Tourism estates

- Tourist buses

- Historico-cultural heritage projects covering the restoration of historical and cultural sites and properties identified, classified and declared as such by the National Historical Institute

Other cultural properties shall be endorsed by the National Commission for Culture and the Arts and the Department of Tourism.

- Agricultural-Tourism Projects

7. Environmental Projects

- Development or Conversion of Industrial Ecosystem

- Industry self-regulation at the plan/firm level

  • Activities leading to environmental management systems certification (i.e., ISO 14000)
  • Activities in compliance with multinational agreements where the Philippines is a signatory (i.e., Montreal Protocol Prescriptions on Ozone Depleting Substances and International Framework Convention on Climate Change)

-Establishment of toxic and hazardous waste facility

-Establishment of waste handling facilities/sewerage systems for industrial/municipal wastes (may include rehabilitation)

-Testing/measuring services for emission and effluent properties of industries or institutions

-Projects on Philippine rivers environmental management and rehabilitation similar to the activities under the Pasig River Rehabilitation Program

- Installation of pollution control devices in compliance with the Clean Air Act (R. A. 8749)

8. Infrastructure

-Establishment of physical infrastructure similar to and/or those covered under BOT (R. A. 6957, as amended by R. A. 7718), Industrial Communities, Service Cities, relocation of industries, Urban Community Redevelopment, IT parks, and Energy Conservation Activities and projects, among others

9. Common Carriers

-Public utility land, air, and water transport. Air and water facilities may involve cargo operations only

- Pipeline operations for transport of petroleum products and/or natural gas

10. Engineered Products

- Manufactured of machinery and equipment such as metalworking machinery (tools & dies included), special purpose industrial machinery, electrical machinery, agricultural machinery, communication equipment and apparatus, medical equipment and/or devices, and office, computing and accounting machinery, including their parts and components.

- Preparation of designs of machinery and equipment and/or their parts and components

- Radio and television manufacturing projects limited to modernization only)

11. Projects of Cooperatives

- Activities undertaken by producer cooperatives (e.g., agricultural, fishery, and industrial cooperatives) and service cooperatives (e.g., electric cooperatives). 12. Development of Energy Sources

- Development of renewable energy sources such as natural gas and liquefied natural gas

- Mini-hydro electric power

13. shipbuilding/shiprepair/shipbreaking

14. Manufacture of motor vehicles and parts and components

15. Research and development activities (may include in-house activities)

C. MANDATORY INCLUSION

Coverage:chanroblesvirtuallawlibrary

1. Activities under the Agriculture & Fisheries Modernization Act, R. A. 8435

2. Production and/or processing of high-value crops R. A. 7900

3. Commercial fishing under R.A. 8550

4. Industrial Tree Plantation under P.D. 705

5. Iron and steel projects under R. A. 7103

6. Exploration, mining, quarrying, and processing of minerals under R. A. 7942

7. Publication or printing of books or textbooks under R. A. 8047

8. Activities under the Jewelry Industry Development Act, R. A. 8502 (limited to export-oriented projects)

9. BOT Projects

Projects under BOT (costing more than P1.0 Billion under R. A. 6957, as amended by R. A. 7718

10. Refining, storage, marketing and distribution of petroleum products under R. A. 8479

11. AICO (ASEAN Industrial Cooperation Agreement) Projects

II.
REGIONAL LIST


A.  MANUFACTURING/PRODUCTION ACTIVITIES

Region Activities

  • Gifts, Toys and Housewares
  • Jewelry
  • Pulp and Paper
  • Textiles and Garments & Articles of Textiles
  • Furniture
  • Gifts, Toys and Housewares
  • Packaging Products
  • Textiles and Garments & Articles of Textiles
  • Composite Board
  • Gifts, Toys and Housewares
  • Chemical Products
  • Composite Board
  • Jewelry
  • Leather and Leathergoods
  • Pyrotechnics
  • Chemical Products
  • Chemical Products (Organic Chemicals)
  • Furniture
  • Gifts, Toys and Housewares
  • Industrial Carbon
  • Jewelry
  • Composite Board
  • Furniture
  • Gifts, Toys and Housewares
  • Industrial Carbon
  • Jewelry
  • Leather and Leathergoods
  • Pulp and Paper
  • Textiles and Garments & Articles of Textiles
  • (Hand & Loomwoven Products)
  • Chemicals Products (Oleochemicals)
  • Industrial Carbon
  • Pulp and Paper
  • Textiles and Garments & Articles of Textiles
  • Composite Board
  • Gifts, Toys and Housewares
Pyrotechnics
  • Manufacture of firecrackers and pyrotechnics devices as defined and listed under R. A. 7183 (excluding industrial explosives)
Rubber Footwear
  • Manufacture of rubber shoes and parts thereof, sandals and slippers.
  • Textiles and Garment & Articles of Textiles
    • Manufacture of textile, items of clothing and other wearing apparel and made up articles of textiles.
  • Soaps, Detergents and Shampoos
    • Manufacture of soaps, detergents and shampoos (may be integrated with production of raw materials)

    • Wood Products

    •  
    • Manufacture of window and poor panels, jambs, moldings, and other builders joinery
    B. INDUSTRY CLUSTERS

    An industry cluster is a group of interlined or related activities composed of industries, suppliers, required support services, infrastructure and institutions.

    Coverage:chanroblesvirtuallawlibrary
    REGIONAL CLUSTER/S

    NCR - Footwear Center

    CAR - Wood Center

    I - Loomweaving Center

    II- Furniture Center

    III - Fine Jewelry Center

    Food Center IV - Automotive Parts and Components

    Electronics V - Coconut Center

    Pili Center VI - Marine Products Center

    Sugar Center VII - Costume Jewelry Center

    Home Furnishing Center

    Fashion Accessories Center

    VIII - Coconut Center

    Abaca Center

    Aquamarine Center

    Food Center

    IX - Seaweed Center

    Fish Center

    Rubber Center

    X- Rubber Center

    XI - Fish Center

    XII - Food Center

    CARAGA - Wood Center

    III.
    AUTONOMOUS REGION OF MUSLIM MINDANAO (ARMM) LIST
    A. EXPORT ACTIVITIES
    1.  Export Trader and Service Exporters
    2.  Support Activities for Exporters B. AGRICULTURE FOOD AND FORESTRY-BASED INDUSTRIES
    1.  Processed Food

    - Production and processing of halal meat

    - Leguminous and other vegetable-based protein (textured, palletized or liquid)

    - Spices processing (e.g., hot pepper, black pepper, ginger, etc.)

    Note: may be integrated with plantation

    - Vegetable oils (e.g., peanut oil, rice bran oil, sunflower and soybean oil

    - Production of food crops

    Note: May be integrated with post-harvest processing and other vegetables (such as Tomatoes)

    - Integrated coconut processing

    - Seaweeds processing

    - Cassava processing

    Note: May be integrated with plantation

    - Fruit processing (e.g., durian, mangosteen, jackfruit, marang, banana, mango, passion guava, calamansi, and guyabanos)

    - Aguaculture (Fish Production and Processing) such as, but not limited to:chanrobles virtual law library

    - 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

    - Corn flour mill (integrated with plantation)

    - Young corn production

    - Note: May include processing

    - Mushrooms culture and processing

    - Sweat potato plantation and processing

    - Crocodile farming and processing

    2. Cutflower Production

    3. Pearl Culture and Processing

    4. Industrial Tree Plantation (include mangrove, Rattan, Bamboo, etc.) and wood processing (cement wood board and fireboard) reconstructed veneer

    5. Shipbuilding and Watercraft

    • Jewelry
    • Pulp and Paper
    • Rubber Footwear
    • Textiles and Garments & Articles of Textiles
    • X Chemical Products (Inorganic Fertilizer, lubricants
    • Oleochemicals & Paints
    • Composite Board
    • Pulp and Paper
    • Soaps, Detergents, Shampoos
    • Wood Products
    • XI Chemical Products
    • Gifts, Toys and Housewares
    • Industrial Carbon
    • Packaging Products (Glass packaging)
    • Textiles and Garments & Articles of Textiles
    • XII Chemicals Products
    • Composite Board
    • Furniture
    • Gifts, Toys and Housewares
    • Jewelry
    • Pulp and Paper
    • Rubber Footwear
    • Textiles & and Garments & Articles of Textiles
    • CARAGA Chemical Products (Essential Oils)
    • Composite Board
    • Furniture
    • Gifts, toys and Housewares
    • Jewelry
    • Pulp and Paper
    Coverage:chanroblesvirtuallawlibrary

    Chemical products

    • Manufacture of organic chemicals, inorganic fertilizer, oleochemicals, lubricants, essential oils, paints, and petrochemicals
    Composite board
    • Manufacture of composite boards (e.g., particle board) using natural resource-based materials/wastes and industrial refuse
    Furniture
    • Manufacture of furniture
    Gifts, toys and housewares
    • Manufacture of baskets, shellcraft, woodcraft, stonecraft, fibercraft, and fossilized dried flowers and ornamental ceramic products
    Industrial carbon
    • Manufacture of coal/charcoal briquettes, activated carbon, carbon black and acetylene black.
    Packaging products
    • Manufacture of packaging products or materials
    Pulp and paper Manufacture of pulp and/or paper products