To speed up the recovery of the Ilocos Region’s economy, various firms, business organizations, and local government units (LGUs) expressed their intention to boost investments in the region during another leg of the Strategic Investment Priority Plan (SIPP) roadshow, conducted by the Philippine Board of Investments (BOI).
The said roadshow, led by the BOI’s Domestic Investment Promotions Service (DIPS), was held in Laoag City on October 13, 2022. It was well-attended, as the participants from the private sector listened to the presentation and answers of the speakers and panelists.
In his welcome remarks, Gov. Matthew Marcos Manotoc of Ilocos Norte extended his appreciation to the Department of Trade and Industry (DTI) and the BOI for choosing the Ilocos Region as the host and venue of the said roadshow.
“We like to build on our industry and manufacturing as we move forward strategically and in line with the community,” the Governor said, expressing his optimism on the economic prospect of the region. He also added that the roadshow was part of the impetus for a successful partnership between the government and the private sector.
“I am looking forward to a fruitful partnership with the DTI and the BOI,” Governor Manotoc added.
While for her opening remarks, Ms. Grace Fargui-Baluyan, Regional Director of the Department of Trade and Industry (DTI)-Region 1, stressed the importance of connection between the National Government Agencies (NGAs) and the Local Government Units (LGUs). Ilocos Region has a booming business process outsourcing (BPO) sector, she pointed out, indicating how investment goals have been operationalized in the region.
Regional Director Fargui-Baluyan said that the region’s LGUs must focus first on its investment priorities. “We cannot promote all. We need to focus, and we need to ask ourselves what considerations should matter,” she added, emphasizing the need for prioritization and rethinking.
“We need to identify which of these industries will make a difference for most people and improve the economic well-being of our constituents, and boost our region’s agricultural and agribusiness sectors,” she added, emphasizing the upsides of more investments such as generation of more jobs.
“We extend our gratitude to the BOI, and I hope that we rethink our options to make our cities the more preferred investment destination, by improving the level of competitiveness of each region, city and municipality,” she concluded.
On the other hand, Ms. Vida Karna Bacani, OIC Division Chief of the National Economic Development Authority (NEDA) Region 1, presented the economic overview of Ilocos Region. According to Ms. Bacani, Ilocos Region, just like other regions in the country, did not come out of the height of the pandemic unscathed. The accommodation and food services had been the most severely affected by the pandemic in 2020, she reported.
However, the region managed to bounce back, increasing its Gross Domestic Product (GDP) by 4.6 percent in 2021. She added that the reopening of the economy aided Region 1’s recovery in 2021 from a 7.7 percent contraction in 2020 to a 4.6 percent growth with the lifting of lockdowns, continued and easier flow of goods and services, and resumption of various economic activities, entailing more job opportunities.
However, she added, the resiliency of the region’s economy, particularly its agriculture sector, continues to be challenged as climate change and unfavorable weather conditions and typhoons continue to affect the supply of agricultural products in the Ilocos region.
With the economic slump, enabling policies that will facilitate inclusive recovery in the different economic sectors is a must coupled with measures to safeguard price stability in the region to stave off unimaginable inflation risks and bounce back to pre-pandemic growth levels that are robust enough to foster inclusive development. Further, she also bared the three leading industries in 2021: agri-based, construction, and gift, toys and housewares.
For the highlight of the roadshow, BOI Investment Assistance Center (IAC) Executive Director Bobby G. Fondevilla comprehensively discussed the recently-approved SIPP, which was deemed effective last June 11. The SIPP contains a list of priority activities for investment promotion and facilitation and a menu of incentives provided under Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) Act.
“SIPP is the country’s investment plan containing the list of priority activities for investment promotion and facilitation. It underwent an evaluation. It is also aligned with the Philippine long term aspirations and vision,” the Executive Director told the participants.
In particular, Tier 1 are the activities under the 2020 Investment Priority Plan (IPP), unless specifically included in Tier 2 or Tier 3. While Tier 2 are activities that fill gaps in the value chain; import substituting. Further, Tier 3 activities are those connected with technology, innovation, and research and development.
In addition, the SIPP categorizes activities into industry tiers. Executive Director Fondevilla said that the criteria for priority determination takes into account any of the following criteria: substantial amounts of investments, considerable generation of employment, considerable amount of exports, use of modern, new, and advanced tech, addressing links and gaps in the supply/value chain, and promotion of market competitiveness.
Following the discussion of the SIPP was an open forum where representatives from the BOI joined Executive Director Fondevilla in answering inquiries from the participants. Other panelists were Mr. Diovencio A. Custudio of Infrastructure and Services and Industries Service (ISIS), Ms. Romalyn R. Manalo of Resource-Based Industries Service (RBIS), Acting Director Ryan T. Ramos of Incentives Service (IS); and Atty. Lester A. Olimpo of the Legal and Compliance Service (LCS). Subsequently, the same panelists interacted with prospective investors during the one-on-one consultation.
Moreover, Mr. Pastor G. Albano, Jr., Public Information Officer of the Philippine Chamber of Commerce and Industry (PCCI) Region 1, delivered the response from the private sector, underscoring the significance of support for the micro-, small-, medium- enterprises (MSMEs) to attract more investors and achieve a robust and sustained economy in the region.
“I thank the BOI for conducting this roadshow to support the economic growth in the region,” Mr. Albano concluded. #
