BoI targets PHP 4.5T in investment pledges in 2 years

The Board of Investments (BoI) is aiming to secure PHP 4.5 trillion in investment pledges over the next two years under its updated Strategic Investment Priority Plan (SIPP), which prioritizes frontier technologies such as artificial intelligence (AI), digital infrastructure, and renewable energy (RE).

“This new SIPP puts a focus on sectors that are innovation-driven,” Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo told reporters last week.

Priority sectors under the 2026 SIPP include mining and mineral processing; digital infrastructure like data centers, fiber optic networks, submarine cables; advanced manufacturing such as components for AI data centers; and tourism, he said.

If realized, this would be 33% higher than the PHP 3.38 trillion in approved investments under the 2022-2025 SIPP.

Signed in May, the new SIPP expands the list of industries and economic activities eligible for incentives under Republic Act No. 12066 or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act.

A project or industry that aligns with the SIPP may apply for registration under the government’s investment promotion agencies (IPAs).

“For BoI, the focus would be on the big-ticket strategic investments like RE infrastructure,” Mr. Rodolfo said, noting that other activities like advanced manufacturing and export-oriented projects are covered by other IPAs.

The BoI launched its nationwide SIPP roadshow on July 10 with its Luzon leg. The agency will hold roadshows for Visayas- and Mindanao-based investors in the coming weeks.

Mr. Rodolfo also noted that the updated SIPP aligns with the Luzon Economic Corridor (LEC), which seeks to capture investments in sectors like logistics, logistics infrastructure, and advanced manufacturing.

The LEC is an 11-country partnership launched by the Philippines, the United States and Japan in 2024 to accelerate investments in key areas like Metro Manila, Batangas, Subic, and Clark.

Erwin Kenneth R. Peralta, vice-president of the Bases Conversion and Development Authority’s Investment Promotions and Marketing Department, said the new SIPP is expected offer a simplified incentives regime for investors to locate in New Clark City in Tarlac.

“This tier system would address [the need for] renewable energy investments in New Clark City, as well as AI, data centers, and semiconductor manufacturing — which are all in tiers determined in SIPP,” he said.

The Philippines is looking to position New Clark City as a key growth hub for AI and semiconductor manufacturing, especially with its upcoming 1,618-hectare AI-native hub under the US-led Pax Silica initiative.

The agency is also considering to align the SIPP with the six-year Philippine Development Plan, Mr. Rodolfo said.

Under the new SIPP, Tier I activities include modern agriculture, state-of-the-art construction, mobile healthcare, ecological zones, and climate-related initiatives such as carbon capture, waste-to-value, and circular economy projects, and forest management for carbon credits.

Tier II activities under the SIPP include defense services, desalination, electric vehicle infrastructure, sustainable aviation fuel, and processing of critical minerals.

Under Tier III, activities eligible for incentives include AI, quantum computing, cybersecurity, hydrogen and nuclear energy, and advanced research and design.

Sought for comment, Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said the 2026 SIPP would allow the country to focus on generating higher-value investments.

“The new SIPP shifts the country’s focus from simply attracting more investments to attracting higher-value investments in areas such as AI, digital infrastructure, renewable energy, advanced manufacturing, and other frontier technologies where global capital is increasingly moving,” he said in a Viber message.

However, the government must also accelerate regulatory approvals, lower the cost of doing business, upskill local talent, and maintain policy consistency to ensure investor confidence, Mr. Ravelas said.

“Incentives may open the door, but ease of doing business, infrastructure, human capital, and execution will determine whether investors choose to stay and expand in the Philippines,” he added. — Beatriz Marie D. Cruz, Senior Reporter