Philippines Broadens Investment Incentive Program to Support Growth Industries
The Philippine government has adopted a new investment priority framework that expands the range of sectors eligible for fiscal incentives, aiming to attract more domestic and foreign investments while supporting employment generation and economic development.
The initiative is outlined in the 2026 Strategic Investment Priority Plan (SIPP), approved through Memorandum Order No. 47 and published in the Official Gazette. The plan serves as the government’s guide for identifying economic activities that may qualify for incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
Prepared by the Board of Investments (BOI) in coordination with government agencies and private-sector representatives, the updated framework organizes priority industries into three categories based on their contribution to national development objectives.
The first tier covers sectors expected to deliver significant employment opportunities and economic activity. These include agriculture, food processing, semiconductor manufacturing, healthcare services, housing development, logistics, information technology-business process management (IT-BPM), and energy-related projects.
A second tier focuses on industries viewed as important for strengthening industrial capacity and improving supply-chain resilience. Eligible activities include electric vehicle production, renewable energy development, crude oil refining, and selected manufacturing operations that reduce dependence on imports.
The third tier highlights advanced industries with the potential to enhance long-term competitiveness and innovation. Areas identified under this category include artificial intelligence, cybersecurity, data centers, biotechnology, and research and development activities.
Companies undertaking approved projects within these priority sectors may access incentive packages available under the CREATE Act, including income tax holidays and other fiscal support measures designed to encourage investment.
According to the government, the 2026 Strategic Investment Priority Plan aligns with broader national development strategies, including the Philippine Development Plan 2023–2028, the Trabaho Para sa Bayan Plan, PAGTANAW 2050, and AmBisyon Natin 2040. These frameworks seek to promote quality employment, strengthen industrial growth, and sustain long-term economic expansion.
The Strategic Investment Priority Plan is reviewed and updated every three years to ensure government incentives remain responsive to evolving economic priorities and emerging industries.
