Transcript Slide 1

BOI
Investment
Roadshow
2012 IPP Presentation
Bacolod, Baguio, Butuan,
Cagayan de Oro, Davao, Dipolog,
Naga, Pasay, Puerto Princesa,
Tacloban, Tagbilaran
OUTLINE (PPP)
I. Perspectives
II. Preferred Investment Areas
III.Potentials
Part
1
:
Perspectives
“Perspective is the most powerful tool we have”
- Edmond Sailer
WHY INVEST?
To participate in Nation Building
(i.e. Direct Investments in preferred
areas
To pursue Personal Interests
(i.e. Retailing, Real Estate Stock Market)
To enhance the Value of your Savings
(i.e. Bonds, Deposits)
ECONOMICS 101
GDP = C + I + G + (X-M)
C = Consumption
I = Investments
G= Government Expenditures
Gross Domestic Product (GDP)
Annual Growth Rates (%) 2001 - 2011
10
7.6
6.7
4.6
5
5
6.6
4.8
5.2
4.2
3.7
3.2
1.1
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
THE INVESTMENT ECOSYSYTEM
1
4
PLACE
•A large domestic market
•Competitive operating
environment
•Less vulnerable to
global downturn
•Industrial peace
•Accelerated infra program
2
PEOPLE
•Growing
number of
entrepreneurs
•Young labor
force
•Training
programs
intensified
NETWORKS
•Investment promotion
agencies
•Local investment
councils
3
FUNDS
•High liquidity
•Low interest rates
•High investors confidence
•Government support to SMEs
INVESTMENT PROMOTION
AGENCIES
DOMESTIC
AGRI
INDUSTRY
EXPORT
SERVICES
Board of Investments
Philippine Ecozone Authority (PEZA)
BOI’S ROLE IN PROMOTING
INVESTMENTS
TARGETED
INVESTMENT
PROMOTIONS
PREFERRED
ACTIVITIES
INDUSTRY
ROADMAP
TRADE/INVESTMENT
NEGOTIATION
ADMINISTER
INCENTIVES
REGISTER
ELIGIBLE
PROJECTS
INVESTOR
FACILITATION
Red Tape to Red Carpet
•
“The red tape that
has for so long
encumbered your
generation has now
been turned into a
red carpet”
- President Benigno S. Aquino III
April 2012
BOI REGISTRATION
SIMPLIFIED
• No more detailed 5 year Financial Projections
required for 95% of projects
• Only 4 page Application form (inclusive of
supporting schedules)
• Endorsements from other agencies required only
after BOI approves the project
• Board action 2 weeks after filing
OTHER LAWS
ADMINISTERED BY BOI
Registration of RHQ and ROHQ (Book III of EO 226)
Special Investor’s Resident Visa (Book V of EO 226)
Investor’s Long-term Lease Act of 1993 (RA 7652)
Retail Trade Liberalization Act of 2000 (RA 8762)
Jewelry Industry Development Act of 1998
(RA 8502)
• Footwear, Leather Goods and Tannery
Development Act of 2004 (RA 9290)
•
•
•
•
•
Part
2
:
Preferred
Investment Areas
“This year’s IPP has been crafted to focus on four critical areas; job
generation, enhanced delivery of social services, international
competitiveness and climate change mitigation and adaptation”.
- Pres. Benigno S. Aquino III- June 2012 (IPP Message)
2012 INVESTMENT
PRIORITIES PLAN
PREFERRED
MANDATORY
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Agribusiness
Creative/Knowledge-based
Disaster PMR
Energy
Green Projects
Hospitals
Infrastructures
Iron and Steel
Mass Housing
Motor Vehicle
R & D/ Training
Shipbuilding
Strategic Projects
Books
Mining
Petroleum Products
PWD Support
Renewable Energy
Tourism
Solid Waste Management
Water Supply
EXPORTS
 Manufactured Products
 Services Exports
 Activities Supporting
Exports
AGRI-BUSINESS
1. Commercial Production
• Crops planted in New Areas
• Poultry and Livestock
2. Commercial Processing
• Locally Grown Raw Materials
• Animal and Aqua Feeds
3. Services
• Post Harvest facilities
• Mechanized Harvest
4. Fertilizers and Pesticides
CREATIVE &
KNOWLEDGE-BASED INDUSTRIES
1. Non- Voice BPOs (Voice now listed under
Exports)
2.
•
•
•
•
IT Enabled Services with Original Content
Software development
Animation
Engineering Design
Game Development
DISASTER PREVENTION,
MITIGATION & REHABILITATION
1. Manufacture and Assembly of Goods
and Equipment related to Disaster Mgt.
2.
•
•
•
•
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Services related to Disaster Mgt.
Salvaging Operations
Early Warning Systems
Oil-spill Clean Up
Bridge Rehabilitation
Flood Control Services
GREEN PROJECTS
1. Manufacture or Assembly of Goods &
Equipment that leads to:
• Efficient Use of Energy
• Efficient Use of Natural Resources
• Reduce GHG
• Minimize Pollution
2. Energy Efficient Related Facilities (i.e.
District Cooling)
HOSPITALS
Development and Operation of Primary,
Secondary and Tertiary hospitals
MASS HOUSING
1. Development of Low-cost Housing
(Selling Price > P 400,000 < P 2.5 million)
2. Manufacture of Modular Housing
Components
R&D
1.
2.
3.
4.
/ TRAINING
Research/ Testing Facilities
Business/Technology Incubators
Shared Service Facilities
Manufacturing & Agri business
enterprises located in SUCs (outside
NCR)
5. Training Institutions in Support of IPP
TOURISM (R.A. 9593)
1.
2.
3.
4.
5.
Transportation Facilities
Accommodation Facilities
Health & Wellness Facilities
Retirement Villages
Historical Destinations
CAPITAL INTENSIVE
PREFERRED AREAS
• ENERGY (exploration, development and
utilization of energy sources)
• INFRASTRUCTURE (transport, water,
logistics, physical infra and PPP)
• IRON & STEEL (long and flat products,
fabrication of machinery)
• MOTOR VEHICLES (2 and 4 wheel
vehicles, parts manufacturing)
• SHIPBUILDING (> 500 ton ships)
• STRATEGIC PROJECTS (packaging
products and essential drugs).
Part
3
:
Potentials
“The great end of life is not knowledge but action”
- Thomas Huxley
PROJECTS REGISTERED
Number of Projects By Region
July 2010-June 2012
250
224
200
160
150
100
58
52
50
38
8
0
26
23
21
3
10
4
12
10
8
OPPORTUNITIES ABOUND
Manufacturing:
•
Large domestic market,
increasing disposable
income
•
Free trade agreements
w/ key trading partners
- ASEAN ($1.8T) 7B/R/I
Agriculture:
•
Huge demand for
HALAL food ($340B)
•
Higher income in key
markets
Services:
•
Tourism arrivals rapidly
increasing
2011-11.2% / 2012-14.6%
•
BPO increasing by
15-20%
SME’s
Japan
•
Strength of Yen
•
Vulnerable to
calamities
China
•
High labor costs
(P336/day Shenzhen)
Vietnam
•
Inflation rate of 20%
Thailand
•
Sharp increase in labor
costs (P397/day)
Taiwan
•
Base for ASEAN market
FDI’s
AGRI-BUSINESS:
HIGH QUALITY, HIGH VALUE
Fisher Farms, Inc. (FFI) in Bulacan is
the leading aquaculture food
processor in the Philippines.
The company has 934 employees.
Recipient of the Superior Taste Award from
Belgium-based Taste and Quality
Institute (ITQI) – a global organization of
Chefs.
MANUFACTURING: IN A
SWEET SPOT
D’Luxe Bags Philippines, Inc. in Tarlac City
manufactures fashion bags for global brands.
The company will employ 4,000 workers.
TOURISM: MORE FUN…
MORE HOMEWORK
Paraiso Verde Resort &
Water Park has water
amusement attractions
like wave pool, raging
river pool, kiddy pools
and pools w/ shade.
The company is located
in South Cotabato and
employs 65 people.
+ INCENTIVES
- DISINCENTIVES
Factors impeding business confidence:
1) Corruption (24.4%)
2) Inefficient bureaucracy (18.3%)
3) Infrastructure* (16.5%)
* Average cost of electricity to cost of manufacturing goods is only 4.63%
PATHS TO NATION BUILDING
JOB-GENERATION
• Agri-business
• Shipbuilding
• Tourism
• Mining
• Export –oriented
Industry
COMPETITIVENESS
•
•
•
•
•
•
•
Energy
Infrastructure
Creative-knowledge based
R&D / Training
Iron & steel
Strategic projects
Downstream oil industry
SOCIAL SERVICES
• Mass housing
• Hospitals
• Disaster-related
• Support to PWD
• Solid waste management
• Water supply
CLIMATE CHANGE
• Green projects
• Renewable energy
• AFV & E-motor vehicles
SAILING ON THE ARK
“Remember, amateurs
built Noah’s Ark;
Professionals
built the Titanic”
FROM SICK MAN TO OLYMPIAN
RANK
COUNTRY
CHANGE IN RANK from 2010
1
China
+2
2
U.S.
-1
3
India
+5
4
Japan
-2
5
Germany
-1
6
UK
-1
7
Brazil
+2
8
Mexico
+5
9
France
-3
10
Canada
Same
11
Italy
-4
12
Turkey
+6
13
South Korea
-2
14
Spain
-2
15
Russia
+2
16
PHILIPPINES
+27
17
Indonesia
+4
18
Malaysia
+17
19
Thailand
+6
TOP
ECONOMIES
BY 2050
(HSBC)
CONNECTIVITY
 facebook.com/invest.phl
 twitter.com/boiphilippines
Board of Investments-Main Office
385 Sen. Gil Puyat Ave. Makati City
Email: [email protected]
Tel. (02) 897-6682
BOI Cebu
Ground Flr. LDM Bldg.
Lapu-Lapu St., Cebu City
Tel. No. (032) 412-1945/44
BOI Davao
4th Flr. Mintrade Bldg., cor.
Monteverde & Sales Streets,
Davao City
Tel. No. (082) 222-4677
BOI Cagayan de Oro
Muñoz Bldg., 52nd Business Center
cor. Tiano Gaerlan Street,
Cagayan de Oro City
Tel. No. (088) 857-4867