Byline: BERNIE CAHILES-MAGKILAT
The Board of Investments has decided to enhance the governments incentive package to attract more investments in the five priority sectors for promotion electronics, mining, information technology, infrastructure and automotive.
Trade and Industry Undersecretary Elmer C. Hernandez, who is also Board of Investments (BOI) managing head, said the BoI is still working on some mechanics on how to improve the existing incentives granted under the Omnibus Investments Code or under Executive Order 226.
At present, the BoI incentive package includes the income tax holiday and one percent duty on capital equipment importation, among the others.
"We have to enhance the incentive package under Omninus Investments Code or EO 226, Hernandez said.
Hernandez explained that the five sectors have been selected as priority areas for promotion as these are the areas where the country has good investment prospects and a competitive advantage.
Hernandez said that infrastructure topped the priority list because of the need to link manufacturing or production sites particularly in the provinces to the market.
As a result, the BoI wants infrastructure projects that will be put in the less developed areas to be entitled to BoI incentives.
These infrastructure projects include power, roads and ports.
"Power because we dont want a repeat of the power crisis in the early 1990s, Hernandez said.
Roads and ports are given priorities because the countrysides have poor logistics support to bring the farm produce to the market.
"Logistics is now given special attention because if we want more business in the countrysides then we need good logistics, he said.
On automotive, Hernandez said that there are some opportunities that the country can attract foreign carmakers and make the Philippines their production hub for specific models for domestic and local markets.
The BoI is also anticipating the positive outcome of the proposed Japan-RP Economic Partnership agreement (JPEPA), which is expected to lure more Japanese car makers into the country. …