Philippines’ 2022 Strategic Investment Priority Plan
An investment priority plan for a country is as essential as reaching your financial goals. In the same thoughts, an investment plan is a big factor in strategizing a better way for you to know the step-by-step plan you need. And in the year 2022, that’s what the Philippines did! Because of the pandemic that truly impaired the country’s economy, the Strategic Investment Priority Plan makes sure you and the whole country will soon experience a competitive and resilient economy.
It may be a long-term plan, but the potential help it can give the whole country can be worth an investment. The various incentives under the Strategic Investment Priority Plan are a type of investment that can help local industries and other foreign start-up businesses. Look at those people who chose to invest in world-class luxury real estate, such as Belle Reve and Portofino Alabang; this investment plan they have will pay off soon. When you think of it, all the critical industries in the country that may be a potential help will have a better outcome as this strategic investment plan does its job. If you would want additional information on this investment priority plan sipp, allow this article to broaden your knowledge of the Philippines’ 2022 Strategic Investment Priority Plan.
What is the Investment Priority Plan of the Government?
It has been years since the pandemic started, and many industries have been affected, from small to large companies. Fortunately, the government came up with a type of investment that can guide the whole country to get back on the right track. On May 24, 2022, former President Rodrigo Roa Duterte signed Memorandum Order No. 61, also known as “The Philippines’ 2022 Strategic Investment Priority Plan,” and later became effective on June 14, 2022. Basically, this newly implemented investment priority plan sipp expands the tax incentives that can be given to certain industries which play a critical role in the economy of the country to reach its own financial goals. Industries in the field of technology, agriculture, and medicine can be upgraded at the same time to help the Philippines and other fellow Filipinos in the different sectors. A world-class luxury condo, houses in Portofino Alabang and Belle Reves under the Brittany Homes should be experienced by many people. Hopefully, once this Strategic Investment Priority Plan succeeds in the future years, people can have the chance to try the beauty of living in these houses that can offer a lot of beautiful things as the economy grows!
The Sipp has a list of qualifications indicating whether investment incentives should be given under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act—developed for the country’s recovery from the pandemic. Suppose you are qualified for this strategic investment priority plan. In that case, you can take the incentives in the form of an Income Tax Holiday (ITH), Enhanced Deductions (EH), and a 5% Corporate Income Tax Rate (CIT). With all of it, imagine how much of your money you can allot to more valuable things. However, note that Sipp’s incentives have varying years of 4 to 7 years before changing to either EH or CIT, which have about 5 to 10 years.
If you live in NCR or nearby areas, Metropolitan Areas, or other regions, the incentives you can get from this priority plan may vary; the same if you are a foreigner. To get a better grasp on the investment priority plan, they can be divided into three categories or tiers, such as the following:
Tier I. The first categories under the sipp cover the investment to ensure a lot of jobs can be created while supporting certain sectors as well as the potential industry that can help the country’s economy. Some of the sectors that are covered in this are food, medicine, agriculture, logistics, infrastructure, and telecommunication.
Tier II. Different from Tier I, the second category in the government investment priority scopes the manufacturing that is not produced locally to fill the gaps between the domestic supply and value chain. It includes green ecosystems, renewable energy, food security, and other health-related activities such as the production of vaccines.
Tier III. The last tier of the implemented investment plan covers the industries that may be a tool to accelerate the transformation of the local economy and achieve global leadership in other emerging industries. And this includes robotics, artificial intelligence, nanotechnology, chatbot, and further research and development activities.
What is the investment rate in the Philippines in 2022?
Making an investment in profitable things such as luxury real estate and the luxury condo is a smart way to make use of your money and achieve your financial goals. But in the process, one should be very cautious about the status of the country where they are making an investment—as it can be one of the defining factors whether you will have a good ROI or not on your investment. Since the Philippines started the Strategic Investment Priority Plan, you may ask, what’s the investment rate in the Philippines with all the pandemic things? According to the CEIC data, the quarterly monitoring of the Philippines’ investment rate decreased from 25.7% in September to 21.5% in December 2022. Even though there is a decrease, it can still be an excellent economic indicator compared to the previous investment rate for 2020, which is 12.5%—indicating a not-very-good country status economically. But the fact that it is reported during the surge of COVID-19 cases is not surprising as many industries in the Philippines have reached their lowest point.
Through the Strategic Investment Priority Plan, many investors locally and internationally may support this investment plan for the sake of the country’s economy. There are more things one needs to know about why making an investment in the Philippines is worth taking the risk. This type of investment may be the right choice to reach your financial goals.
Why does the Philippines’ 2022 Strategic Investment Priority Plan hold significant importance?
Aside from the vision of strategic investment by the government to make a better economy, they also aim to help the investors. The priority plan to help the industries under the list of Sipp will be the best decision to make. When you think of it, many industries receiving tax incentives during the time of the pandemic would mean a lot, just like how a luxury condo and houses in Belle Reve and Portofino Alabang under Brittany Homes would mean to the homebuyers.
To put it simply, the utmost importance of the Strategic Investment Priority Plan is to help the economy get back again and, in the process, make the local and foreign industries aid when it comes to receiving incentives under the sipp, thus, showing the resiliency of the economy.
The government investment priority plan, or the “Strategic Investment Priority Plan,” is a chance every qualified industry should take advantage of. Who knows how much it may help them reach their financial goals? Thanks to this strategic investment! On your worry about the country’s economy, let this priority plan ease them away. Plus, it is the right time to improve different industries in the Philippines, may it be in technology, infrastructure logistics, ecosystem, industrial waste treatment, and research & development. Take the word-class luxury real estate under Brittany Homes as an example; they kept improving and keeping up with the current home trends internationally. Not to mention their superb surroundings that can be eco-friendly, so you become impressed with the implemented strategy of the government, might as well include in your plan to have a home that can never disappoint you!