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ROBUST INDUSTRIES,GLOBAL OPPORTUNITIES

P H I L I P P I N E S

2 0 1 6 A N N U A L R E P O R T

Industry & Investments Building385 Sen. Gil Puyat Avenue, Makati City, Philippines 1200Tel. Nos: (632) 897-6682 (632) 895-3640www.boi.gov.ph



Securing the Future of Philippine Industries

boiphilippines

boiphilippines

ph_boardofinvestments

Philippine Board of Investments

B O A R D O F I N V E S T M E N T S

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VISIONA global investment promotion agency for accelerating investments, industry growth, and sustainable jobs by 2022.

MISSIONWe, the BOI family, are committed to generate local and foreign investments and develop globally competitive industries, thus, increasing employment through the responsible use of the country’s resources, guided by the principle of private initiative and government cooperation.

In pursuit of these commitments, we bind ourselves to render competent and efficient service with utmost integrity and professionalism.

Ours is a challenging task, yet with discipline and the guidance of an enlightened and strong leadership, we shall move forward.

VALUESIntegrityProfessionalismPassion for KnowledgeTeamwork

CONTENTS


2016 was the year when maturing industries, guided by BOI, are now ready to take on a bigger role within the global economy. The circular design showcases the expansive efforts of the agency as it continues to shape the economic landscape both locally and globally.

1 Message from the President

2 Message of the Chairman

4 Report of the Managing Head

6 2016 At A Glance

8 Investments Registered

14 Industry Development Program

Initiatives Intensified

17 Strategic Investment Promotions

Initiatives Stepped up

18 Investment Assistance and Facilitation,

and Servicing Thrusts Ramped up

20 Road to 50 and Beyond

23 Board of Governors

24 Management Committee

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MESSAGEFROM THE PRESIDENT

My warmest greetings to the Board of Investments (BOI) on the publication of its 2016 Annual Report.

We closed 2016 with a positive outlook on the economy. Our 6.8 percent GDPgrowth for that full year was fueled by a 20.4 percent increase in investmentsamounting to Php 442 Billion. We are optimistic that these figures willfurther expand as we reap the fruits of our 10-Point Socio-Economic Agenda.

The BOI has played a vital role in our efforts to create a globallycompetitive business environment. Through your inputs, we haveinitiated reforms that streamlined business permit applications toencourage small businesses to flourish. Your efforts also drove us toincrease public spending on infrastructure so we can boost private sectorparticipation in high impact government projects.

I commend the BOI for surpassing its 2016 target for investment growth.This is proof that we have already regained investor confidence in oureconomy. Let us therefore seize this opportunity to declare to the worldthat indeed, the Philippines is open for business.

I wish you all the best for the years ahead.

“This is proof that we have already regained investor confidence in our

economy. Let us therefore seize this opportunity to declare to the world that indeed, the Philippines is open

for business.”

RODRIGO R. DUTERTEPresident,Republic of the Philippines


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Despite global financial uncertainties, the Philippine economy continued its sterling performance in 2016, a testament to our sound economic fundamentals and sustained investor confidence that bodes well with the BOI thrust to strengthen the country’s position as a preferred global investment destination.

The election of President Rodrigo Duterte during the year likewise provided an added boost as the BOI’s priority programs like increasing the country’s economic competitiveness and ease of doing business perfectly fit into the new Chief Executive’s 10-Point Socio-Economic Agenda that calls for a more ambitious inclusive growth strategy.

Such strategy requires an inclusive business model to allow more people to become integral parts of the mainstream economy. It is hinged on enabling and encouraging big businesses to link up and partner with smaller entrepreneurs to spur the growth of micro, small and medium enterprises (MSMEs) that provides the most number of jobs to Filipinos.

Towards this end, the BOI pursued the promotion of rural and value chain developments during the year to further increase agricultural productivity and enterprise development in the countryside, including rural tourism.

As this report shows, the value of investment projects registered with the BOI grew more than 20 percent in 2016,

one of the highest in nearly two decades and exceeding the agency’s growth target for the year. This translates to additional jobs and livelihood opportunities that help keep our economy strong and resilient.

And, with the President himself embarking on numerous foreign visits to foster better trade and economic relations with major countries around the world, the Philippines has further gained enormous goodwill and increased awareness among potential investors who certainly value the President’s assurance to honor and protect their investments.

One major thrust during the year, again reflecting President Duterte’s governance focus, was to ensure that the investments generated by the BOI translate not only to actual jobs but also economic development in the countryside where a vast majority of the population are poor and where opportunities are quite limited thus far.

The key, of course, is to attract massive amounts of domestic and foreign investments in labor-intensive economic activities and in industry sectors that bring in new technology to help the Philippines keep at par with our neighbors especially in the light of the ASEAN economic integration that officially kicked off in December of 2015.

We are confident that, with President Duterte himself leading the charge to promote the Philippines as an attractive and

MESSAGE OF THE CHAIRMANA Y E A R I N R E V I E W

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“The election of President Rodrigo Duterte during the year likewise provided an added boost as the BOI’s priority programs like increasing the country’s economic competitiveness and ease of doing business perfectly fit into the new Chief Executive’s 10-Point Socio-Economic Agenda.”

RAMON M. LOPEZChairman, Board of Investments

Secretary, Department of Trade & Industry

lucrative global investment destination, the country shall be able to sustain our economic growth and usher in a genuine social transformation for the benefit of our people.

The BOI, for its part, remains committed to its pursuit of becoming a truly global investment promotions agency and a potent instrument for industry growth, accelerating investments and increased number of steady and sustainable jobs throughout the term of President Duterte and beyond.

I thank the men and women of the BOI, our local and foreign investors, industry partners and all stakeholders for helping make 2016 a banner year for the agency.

Mabuhay!


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REPORT OF THE MANAGING HEAD

A Y E A R I N R E V I E W

“On top of the increased investments by both local and foreign investors, the growth of the Philippine manufacturing industry in 2016 is a testament to the importance of our Manufacturing Resurgence Program.”

CEFERINO S. RODOLFOManaging Head, Board of InvestmentsUndersecretary, Department of Trade & Industry

The BOI saw another breakthrough year in 2016 when the agency registered a 20.53 percent increase in approved investments as the country underwent a peaceful and orderly change in political leadership that signals to the world that the Philippines is indeed a mature and fully functional democracy with a stable, dynamic economy.

In terms of actual project cost, the 2016 approved investments totaled Php442.04 Billion compared with the Php366.74 Billion registered in 2015.

More significantly, the share of foreign investments in the mix went up to 20 percent or Php89.39 Billion from the previous year’s Php59.51 Billion, with the remaining 80 percent accounted for by local investments. The percentage share of foreign investments in 2015 was pegged at only 16 percent.

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The number of projects covered by the approved investments also went up from 358 in 2015 to 378 in 2016, an uptick of 5.59 percent, while the projected employment generation likewise increased 16.11 percent to 67,634 jobs compared with the 58,252 jobs created by the approved investments a year ago.

On top of the increased investments by both local and foreign investors, the growth of the Philippine manufacturing industry in 2016 is a testament to the importance of our Manufacturing Resurgence Program (MRP) since this sector is key to achieving inclusive growth as it generates the biggest number of stable and decent jobs for our people.

Investments in manufacturing went up to Php49.26 Billion from Php27 Billion in 2015, an increase of 82.4 percent. More importantly, the manufacturing jobs created in 2016 more than doubled to 17,157 from 7,290 a year ago or a 135.35 percent hike.

These accomplishments are rooted in the agency’s ongoing initiatives such as the Industry Development Program (IDP) which, since 2012, has forged a strong partnership with the private sector in the development of industry and sectoral roadmaps to revive the manufacturing sector and grow the service industries.

The MRP, on the other hand, is designed to intensify government interventions to address market failures and cumbersome business processes to help existing industries remain competitive while strengthening emerging ones until these, too, can compete regionally and globally.

Also in 2016, the BOI crafted, consolidated and delivered ahead of schedule the proposed Investment Priorities Plan (IPP) for 2017 after thorough consultations with various stakeholders. The IPP was endorsed by the Secretary of Trade and Industry to the President before the end of 2016.

While we continue to serve our investors and the general public, the BOI ensures the efficient delivery of these services by improving and enhancing our internal systems and processes.

A major undertaking to improve the ease of doing business was the decentralization of administrative functions and decision-making from the agency head down to the management committee composed of Directors, Executive Directors and which resulted in faster application for registration approvals and case dispositions.

We have also enhanced key agency services including those in investment promotion and facilitation, legal, administrative, information and communications, as well as our agency transformation programs to make the BOI more efficient, relevant and responsive as it shifts to higher gear for 2017 and beyond.

All these milestones are the results of the collective hard work, professionalism and passion for excellence of all men and women of the BOI. Their dedication and commitment have made possible the achievement of our goal, “Robust Industries, Global Opportunities”, which is the theme of this year’s Report.

On behalf of the men and women of the BOI, I thank our Board of Governors, our investors and industry partners and all stakeholders for their continued trust and confidence. Rest assured that the BOI shall remain at the forefront of serving the business community.

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Investments in Manufacturing

PHP49.26B for 2016


66

total number of Projectsapprovedin 2016

378

worth of investments for Region 4A

Php102.36B

worth of investments for the Big Power Projects

Php209.93B

Australia was the top foreign investor

with a total investments of

Php30.5B

Mass HousingManufacturingPublic AdministrationSocial Industry

67,634New jobs created in

2016

Resolution Rate for 314 investment-related

issues and concerns loaded at BOI’s online

customer relations facility

91%Industry Roadmaps submitted to BOI

44

Top Job Generatorby Industry

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total number of Projectsapprovedin 2016

378

worth of investments for Region 4A

Php102.36B

worth of investments for the Big Power Projects

Php209.93B

Australia was the top foreign investor

with a total investments of

Php30.5B

Mass HousingManufacturingPublic AdministrationSocial Industry

67,634New jobs created in

2016

Resolution Rate for 314 investment-related

issues and concerns loaded at BOI’s online

customer relations facility

91%Industry Roadmaps submitted to BOI

44

Top Job Generatorby Industry


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INVESTMENTS REGISTEREDO V E R V I E W

The BOI approved investment projects worth Php442.04 Billion in 2016, the second highest since 2000 and next only to the Php446 Billion registered in 2013. The amount represented a 20.4 percent increase from the Php366.74 Billion projects registered in 2015 and exceeded the agency’s growth target of seven percent.8

The amount covered a total of 378 approved projects which was 5.59 percent higher than the 358 projects approved in 2015.

In terms of job generation, the investment approvals in 2016 was expected to create 67,634 new jobs when the investment projects become fully operational. This was a 16.11 percent increase over the 58,252 jobs created in 2015.

The investments were mainly from local companies amounting to Php352.5 Billion or 80 percent of the total figure or P352.5 Billion, while the remaining Php89.3 Billion came from foreign sources.


Foreign investment pledges for the year were 50 percent higher from the Php59.5 Billion generated in 2015. The level of foreign investments in the second semester was nearly double than that of the first semester, a clear indication of growing investor confidence and interest in the Philippines under the new administration.

Bulk of the investments were from big power projects which received a total of Php209.93 Billion worth of investments. Housing project activities recorded the second highest investment projects with Php65.8 Billion, followed by construction with Php62.3 Billion, manufacturing with Php49 Billion and transportation and storage with Php23.4 Billion.

Australia was the top foreign investment source with Php30.5 Billion in investments followed by Singapore with Php13.6 Billion and The Netherlands in close third with Php13.1 Billion. Japan with Php6.8 Billion in pledges and South Korea with Php6.4 Billion round up the top five countries of investment origin.

The biggest destination of investments overall was Region 4A or Calabarzon which received Php102.1 Billion worth of projects followed by the National Capital Region (NCR) with Php95.3 Billion and Central Luzon with Php56.5 Billion.

There was a significant investment increase for the Cordillera Administrative Region (CAR) which garnered Php34.8 Billion mainly for hydropower projects. The CAR received only Php85.6 Million in investments in 2015.

Total Investment Projects Registered

366.74B PHP

442.04B PHP

2015 2016

378projects in 2016

358projects in 2015

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INVESTMENT BY INDUSTRY

Sustained investments in the Philippine power sector to support the country’s robust economic growth – one of the fastest in Asia – makes the energy industry the biggest destination of investments for the past several years, and 2016 is no exception.

New energy projects, including renewable power plants, accounted for Php209.93 Billion or nearly half of the total approved investments of Php442.04 Billion. These included six of the top 10 approved projects for the year.

And, while the amount of total energy investments was lower compared with the Php246.42 Billion generated the previous year, the 2016 investments will result to a higher estimated generating capacity of 2,433MW compared with the 2,095MW projected capacity in 2015.

The next biggest investment magnet by industry was mass housing which attracted Php65.85 Billion or 15 percent of the total, followed by construction (including infrastructure and Public-Private Partnership or PPP projects) which saw Php62.27 Billion in new capital.

The fourth industry that received the biggest investments was manufacturing which accounted for Php49.26 Billion or 11.14 percent of the total followed by transportation and storage or the logistics industry with Php23.41 Billion or 5.3 percent share.

Rounding up the top 10 investment destinations by industry were water supply, sewerage, waste management and remediation activities with Php22.24 Billion; agribusiness and fishery with Php4.47 Billion; accommodation and food service activities or tourism with Php3.43 Billion; hospitals with Php612.05 Million; and public administration & defense and compulsory social security which received Php297.68 Million.

In terms of growth, investments in construction activities registered the fastest clip year-on-year at 644.8 percent to Php62.27 Billion from Php8.36 Billion in 2015. This was followed by manufacturing investments which grew 82.4 percent to Php49.26 Billion from only Php27 Billion the year before.

Energy Sector

209.93BPhp

TransportationSector

23.41BPhp

Manufacturing Sector

49BPhp

Infrastructure Sector

62.27BPhp

Mass Housing Sector

65.85BPhp


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CARPhp34.77B Region 2

Php5.15B

Region 3Php56.41B

Region 4APhp102.36B

Region 5Php4.48B

Region 7Php21.75B

Region 10Php11.89B

Region 11Php25.82B

Region 13Php173.03M

Region 12Php21.30B

Region 8Php807.45M

Region 1Php17.24B

NCRPhp95.34B

Region 4BPhp3.19B

Region 6Php19.12B

Region 9Php744.26M

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INVESTMENTS BY REGION

Region 4A or Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon), the country’s dynamic industrial heartland just south of Metro Manila, cornered the biggest chunk of investments in 2016 with Php102.36 Billion worth of investments, mainly in big power and manufacturing plants that were poured into the region during the year.

The amount represented 23.16 percent of all total committed investments during the year and included five of the 10 biggest approved projects including the biggest one, a 650MW combined cycle liquified natural gas fired power plant of Energy World Power Operations Philippines Inc. to be built in Pagbilao, Quezon.

Coming in close second was the NCR which received Php95.34 Billion in investment commitments during the year, the biggest of which was the mass housing development project of Tondo Holdings Corporation in Tondo, Manila worth Php10.18 Billion along major infrastructure and air services projects that, put together, accounted for 21.57 percent of all approved investments in 2016.

Region 3 or Central Luzon was in third with Php56.41 Billion or 12.77 percent of the total, half of which was accounted for by a 300MW circulating fluidized bed coal-fired power plant project of Limay Premier

Power Corporation in Limay, Bataan worth Php23.3 Billion.

The Cordillera Administrative Region or CAR got the fourth biggest investments, attracting Php34.77 Billion or 7.86 percent of all approved projects led by two renewable power plants: the 150MW hydro power project of Pan Pacific Renewable Power Philippines Corporation in Apayao province worth Php19.18 Billion and the 60MW Kapangan hydroelectric project of Cordillera Hydro Electric Power Corporation in Benguet worth Php12.17 Billion.

Region 11 or the Davao Region had the fifth biggest investment with Php25.82 Billion, more than half of which was accounted for by the Davao City Bulk Water Project of APO Agua Infrastructura, Incorporated worth Php13.32 Billion. The other regions in the top 10 with the biggest investments were Region 7 or Central Visayas with Php21.75 Billion; the Negros Island Region with Php21.47 Billion; Region 12 or Soccksargen in Central Mindanao with Php21.3 Billion; Region 6 or Western Visayas with Php19.12 Billion; and Region 1 or Ilocos Region with Php17.24 Billion.


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WHERE MOST OF THE JOBS ARE CREATED

The year 2016 saw the creation of 67,634 new jobs from BOI-approved investments, an increase of 16.11 percent from the previous year’s employment generation of 58,252.

The biggest job generators by industry were mass housing which was responsible for 32,055 new jobs or 48 percent of the total, followed by manufacturing which created 17,157 employment positions or more than a quarter overall, and the public administration & defense and compulsory social security industry accounting for 4,678 new jobs or nearly 7 percent.

Metro Manila or the NCR hosted the most number of jobs created with 22,182, with more than half or 13,590 coming from mass housing projects, underscoring the continuing growth of the sector as the government addresses a serious housing backlog in the densely populated capital.

Region 4A accounted for the second largest number of new jobs with 19,333. As with the NCR, the

biggest employment generator was mass housing with 9,471 followed closely by manufacturing with 8,422 as more industries continued to set up shop in Calabarzon.

The bustling Davao Region has the third biggest number of employment created during the year with 7,083 and they came from traditionally labor-intensive sectors such as manufacturing with 3,455 and mass housing with 2,081.

In fourth place was Region 3 with 5,431 new jobs, with the biggest again generated by mass housing projects at 2,295 followed by manufacturing with 1,415 and water supply projects with 1,089.

Region 12, which covers the country’s tuna producing provinces, rounded up the top five regions with the biggest employment gains with 5,121 new jobs, more than half of which comes from agribusiness ventures with 2,657 followed by manufacturing with 2,253.

NUMBEROF JOBS

67,634total number of employmentgenerated in 2016

TOP JOB GENERATORBY INDUSTRY

TOP JOB GENERATORBY REGION

Mass Housing32,055

17,157

4,678

NCR

22,182

Region 4A19,333

Region 11

7,083

Region 35,431

Region 12

5,121

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INVESTMENTS BY COUNTRY OF ORIGIN

Reflecting continuing investor confidence in the Philippines, foreign investments saw a healthy increase in 2016 to Php89.39 Billion from only Php59.51 Billion the year before for a 50.23 percent rise. More significantly, the share of foreign capital in BOI-approved investments jumped to 20 percent from the previous year’s 16 percent share of the pie.

Topping the year’s foreign investment sources was Australia with Php30.5 Billion primarily on account of the 650MW LNG-fired power plant in Quezon province to be built by Energy World Power Operations Philippines, Inc., a 100 percent Australian firm.

Singapore, whose companies have significant investments in the Philippines’ major infrastructure projects approved in 2016, including those by the Light Rail Manila Corporation and the GMR

Megawide Cebu Airport Corporation, was the second biggest source of foreign capital with Php13.65 Billion.

The Netherlands, whose companies have a long history of engagement in the country’s manufacturing and energy sectors, was the third biggest source of foreign investments in 2016with Php13.05 Billion, followed by Japan with Php6.83 Billion in fourth and South Korea in fifth with Php6.42 Billion.

The other countries rounding up the top 10 foreign investment sources were the United Kingdom with Php2.35 Billion; the United States with Php2.19 Billion; the British Virgin Islands with Php2.14 Billion; Germany with Php1.96 Billion; and China with Php962 Million.


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The BOI’s Industry Development Program was launched in 2012 to help revive the country’s manufacturing sector alongside agriculture and services by partnering with the private sector in identifying supply chain gaps and other challenges as well as possible government interventions to ensure industry competitiveness and growth.

This gave birth to the Industry Roadmapping Project under which 44 sectoral roadmaps have been crafted by industry players with the help of BOI and other concerned government agencies. Of the total, 36 roadmaps were being implemented as of end-2016.

Year 2016 saw the implementation of the programs and projects under the various industry roadmaps.Among these was an initiative under the Aerospace Roadmap where industry players underwent training on Aerospace Quality Management System (AQMS), an integral component before aerospace firms get AS9100 certification. AS9100 is a widely adopted and standardized quality management system in the industry. Certification is required by major aerospace manufacturers and suppliers worldwide before doing business with them.

With the country’s increasing participation in the global value chain, the training helps local players become global suppliers of parts and components while the Philippines aims to become a hub for manufacturing and aftermarket services in the aerospace and aviation industries in the ASEAN region.

The Tool & Die Industry Roadmap likewise took another step forward in its capacity-building program with the graduation in 2016 of the third batch of trainees under its “Enhancing Tool and Die Industry Competitiveness by Expanding the Pool of Trained and Highly Skilled Die and Mold Designer and Makers” or the D2M2 Project.

The Tool & Die industry, made up mostly of small and medium enterprises (SMEs), is a skills-intensive and technology-dependent sector that can contribute to manufacturing cost efficiency in heavy manufacturing industries.

To remain competitive, die and mould makers must thus learn the newest design and manufacturing technologies especially those that are linked to the automotive,

electronics and semiconductor, furniture, housewares and appliances industries that depend on the tool and die industry for parts and components.

Both the AQMS and the D2M2 projects were conducted in partnership with the Metals Industry Research and Development Center (MIRDC), an agency of the Department of Science and Technology directly supporting the metals and engineering industry.The industry roadmaps are expected to continue charting the direction, goals and strategies for the revival of the manufacturing industry and subsequently serve as the foundation of the Comprehensive National Industrial Strategy (CNIS) that links manufacturing with agriculture and services.

The BOI also partnered with the Department of Agriculture through a workshop to integrate the manufacturing industry roadmaps with agriculture and its subsectors.

Among the subsectors considered for roadmap integration are coffee, cacao, rubber, processed foods including meat, seafood and fruits, condiments, and the coco coir industry

INDUSTRY DEVELOPMENT PROGRAM INITIATIVES INTENSIFIED


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which are seen as capable of driving regional economic transformation by making the country an agribusiness regional hub in the Asia-Pacific.

An important development in 2016 was the Roadmap Localization Program under which the BOI, in collaboration with Trade Assistant Secretary Rafaelita Aldaba, went to the regions to encourage stakeholders to localize their roadmaps that suit current conditions particularly for industries that are dominant in the areas while assuring that these local roadmaps are aligned and linked with the national program.

Regional conferences were held in the Ilocos, Cagayan Valley, Caraga, Eastern Visayas, Socsargen and Northern Mindanao regions as well as the Autonomous Region in Muslim Mindanao.

subsectors capable of driving regional economic

transformation

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1. Automotive2. Automotive parts3. Biodiesel4. Cement5. Ceramic tiles6. Chemicals7. Copper products

8. Furniture9. Mass housing10. Motorcycle11. Petrochemicals12. Rubber products13. Tool & Die

2012

1. Manufacturing2. Electric Vehicle3. Electronics4. Iron and Steel5. IT-BPM

6. Metalcasting7. Plastics8. Paper9. Natural health products10. Creative Industries

2013

1. Aerospace2. Retirement3. Shipbuilding4. IC Design

2014

1. Gifts and Houseware

2. Holiday Decors3. Coco Coir4. Bamboo

2016

1. Health Care Services2. Printing3. Book Publishing4. Processed Fruits -

Dried Mango5. Processed Shrimp/

Prawn

6. Seaweed/ Carrageenan

7. Services8. Chocolate

Confectioneries - Tablea

9. Condiments/ Mixes

2015

Roadmaps have been submitted

to BOI

445. Jewelry6. Creative Industries7. Gold8. Processed Meat


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A milestone accomplishment of the BOI through the Investments Policy and Planning Service (IPPS) in 2016 was the early submission of the draft 2017 Investment Priorities Plan or IPP, which was submitted to the President for approval on December 29, 2016 – a full three months ahead of schedule.

This early submission resulted in the prompt approval of the IPP by the President on February 28, 2017 through Memorandum Order No. 12 which directs all government agencies to issue the necessary regulations to ensure the IPP’s implementation in a “synchronized and integrated manner. ” The Order took effect on March 18.

The early completion and submission of the IPP came after regional public consultations on the draft held in the cities of Cebu, Makati and Davao with a total of 384 stakeholders in attendance.

With the theme, “Scaling Up and Dispersing Opportunities”, the new IPP brings forth significant additions and changes, following the President’s Zero + 10-point Socio Economic Agenda, the aspirations embodied in AmBisyonNatin 2040, and the Philippine Development Plan 2017-2022. Broadly these changes include further emphasis on innovation-driven and job-generating businesses; inclusive business for agribusiness and tourism; broadened coverage of manufacturing; information technology (IT) and IT-enabled services for the domestic market and telecommunications services for new market players; environment and climate change-related projects; LGU-initiated PPP projects; drug rehabilitation

centers; state-of-the-art engineering, procurement and construction (EPC) services; and the lifting of geographical restrictions for most agriculture and tourist accommodation facilities.

Among the highlights of the 2017 IPP are the inclusion of more MSME (micro, small and medium enterprises) as well as innovation-driven, health- and environment-conscious activities aimed at providing more jobs and bringing more industries into the local and global value chains.

The IPP foreword states “there is a deliberate policy to shift investments to the countryside”.

It listed the country’s preferred investment areas led by manufacturing, including agri-processing; agriculture, fishery and forestry; strategic services; and infrastructure and logistics including local government unit public-private partnerships.

Likewise included are health care services including drug rehabilitation; mass housing; inclusive business models; environment and climate change; innovation drivers; energy; export businesses including services; activities in support of exporters; and production and manufacture of export products, among others.

The IPP is a list of priority investment activities aligned with the goals of the President’s 10-point socio-economic agenda and the Comprehensive National Industry Strategy. It is a rolling three-year plan subject to annual review.

2016 MILESTONE ACCOMPLISHMENT:

CARS PROGRAM INVESTMENTS

BOI Submits the 2017 Draft Investment Priorities Plan Ahead of Schedule

Another program initiated and being administered by the BOI is the Comprehensive Automotive Resurgence Strategy (CARS) under Executive Order 182. It has laid out since 2014 the automotive industry roadmap with the purpose of encouraging investors from car assemblers and auto parts producers, developing and revitalizing car manufacturing, as well as intensifying

government intervention on marketing failures and cumbersome business procedures in the Manufacturing Resurgence Program (MRP). With CARS approved projects to jumpstart the program, Mitsubishi Motors Phils. Corp. committed Php4.39 Billion capital outlay; while Toyota Motors Phils. Corp. pledged in Php3.25 Billion.

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STRATEGIC INVESTMENT PROMOTIONS INITIATIVES STEPPED UP

To further attract domestic and foreign investments, the BOI, as lead investment promotion agency of the country pursued a number of strategic policy and promotion initiatives in 2016 that sustained strong investor confidence as evidenced by the growth in the agency’s investment approvals during the year.

The BOI recorded a higher number of investors assisted during the year at 6,050 compared with 5,903 in 2015, while investment leads were even higher by 33 percent with 1,587 in total. In particular, the BOI targeted to attract strategic investments that bring in new technology to the country and help bolster the Philippines’ position as a world-class investment destination.

On the global front, the International Investments Promotion Service (IIPS) spearheaded the conduct of 20 outbound missions and the facilitation of 232 inbound missions (including RHQ/ROHQ). Notable missions were focused on promotion of key sectors like the IT-BPM with an investment roadshow in the US and participation at the HIMSS Conference and Exhibition for the Healthcare-BPM sector; the participation in Gamescom in Germany, Tokyo Gameshow in Japan and GSTAR in Korea for the Game Development segment; and the participation in CeBIT Berlin in Germany for the IT-BPM industry.

Key promotion events for the manufacturing sector include the participation in the Semicon Taiwan for the Electronics industry and presence at the Aeromart Toluse and Airshow Singapore for the Aerospace sector. BOI officials also met

6,050Total number of investor assisted in 2016 compared to 5,903 in 2015

the representatives of a German company at the Asia-Pacific Conference in Hong Kong and assured them of support for the set-up of their gypsum board panel system manufacturing facility in the Philippines. The government delegation also made a strong pitch for the Infrastructure sector at the said event. Coordination and support activities were also provided for the Presidential Visits in China, Japan, Malaysia and Singapore.

In terms of inbound missions, the IIPS received and assisted individual companies and business delegations from various markets which visited the Philippines to conduct due diligence and explore possible collaboration with local partners. Notable business links came from Europe (i.e., UK and Finland); Asia (Japan, Taiwan, Korea, China, Indonesia, Malaysia and Singapore); Americas (USA and Canada), and Australia and New Zealand. Sectors of interest from said inbound visits were mainly in IT/BPM, manufacturing, energy, agribusiness, infrastructure and construction, aerospace, retail, e-commerce and services (food and beverage service and distribution).

The BOI, through its Domestic Investment Promotion Service (DIPS) also took the lead in synchronizing efforts of 18 government investment promotions agencies (IPAs) to promote the Philippine brand with the convening of the Philippine Investment Promotion Plan (PIPP). BOI Managing Head Ceferino Rodolfo was voted to chair the PIPP steering committee during the convention in December 2016.

DIPS also conducted 29 Capacity Building/Trainings, boosting the capabilities of Investment Promotion Officers and Counselors of the country on investment promotions to cover image building, investment generation and investment facilitation and registration of business projects with the agency. The trainings were conducted in seven different regions during the year, namely; Ilocos Region, Mimaropa, Western Visayas, Eastern Visayas, Northern Mindanao, Caraga and the Zamboanga Peninsula.


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INVESTMENT ASSISTANCE FACILITATION, SERVICING THRUSTS RAMPED UP

The BOI ramped up its investment assistance, facilitation and servicing activities in 2016 while linking up with other government agencies for policy coherence and coordination on investment related issues and concern.

For its part, the Investment Assistance Service convened representatives of the 28 different investment promotions units (IPUs) of the government for the annual IPU Network (IPU Net) meeting held at the BOI offices in Makati City.

The group discussed past initiatives and accomplishments as well as how to further improve the business environment through streamlining of procedures and closer coordination among various agencies dealing with investor issues and concerns.

The BOI’s Investment Assistance Service took the lead in providing assistance to investors either personally or by phone or email to ensure a wider-range of pre- and post-registration services.

Through the IPU Net, BOI also entered into Memorandums of Agreement (MOAs) with different government agencies to speed up the processing of investment-related applications, permits and licenses for existing investors.

One of these agreements was with the Department of Agriculture (DA) for the joint facilitation of permits, licenses, and endorsements for investors seeking BOI registration.

The accord authorizes the BOI to assist a client in submitting and following up applications for endorsements, certifications, and permits with the DA as allowed by law. It also mandates the BOI to

assist the agriculture department in information dissemination about public investments, agricultural development and support services for domestic and export-oriented enterprises.

The move is meant to simplify business processes which, coupled with the implementation of the CNIS, is key to the development of the agriculture sector which needs to modernize to become globally competitive.

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ONE WINDOW NETWORK (OWN) ENHANCES EASE OF DOING BUSINESS IN THE PHILIPPINES

With the global economy going online even more every second, the BOI has its own online platform to help investors from around the world to keep abreast of developments in the local business community as well as to further enhance the ease of doing business in the Philippines.

The BOI’s One Window Network (BOI-OWN) is a cloud-based web portal (www.boiown.gov.ph) that enables businessmen and investors to access relevant investment potentials and other information about the Philippines instantly.

More importantly, potential investors worldwide can easily make queries with the BOI without making expensive overseas calls and without physically travelling to the country, thereby saving precious time and resources while getting optimum results and timely responses.

Those with ongoing transactions with the BOI and other government agencies, on the other hand, can track and monitor the status of their queries and concerns online, which makes doing business in the Philippines exponentially easier and efficient.

The BOI OWN is just one of the many initiatives that saw full blooming in 2016 through the initiative of the agency’s Investment Assistance Service, which has since conducted a series of seminars and workshops among various stakeholders to introduce the platform and teach businessmen how to maximize its utilization.

BOI OWN’s components include joint venture matching, pre- and post-registration issues and arrangements for possible inbound visits.

In 2016, a total of 314 issues and concerns were lodged at the portal, registering a resolution rate of 91 percent.

Mobile app versions for both Android and iPhone operating systems are also available for download.

The BOI has signed six other similar agreements with the Department of Environment and Natural Resources (DENR), Securities and Exchange Commission (SEC), Department of Tourism (DOT), Food and Drug Administration (FDA), Health Facilities Regulatory and Services Bureau of the Department of Health (DOH) and Housing Land Use & Regulatory Board (HLURB) to help investors easily set up businesses in the Philippines.

On the domestic front, the Investment Promotion and Facilitation Services took the lead in providing assistance to investors either personally or by phone or email to ensure a wider-range of pre- and post-registration services.

While streamlining, the BOI continued serving the general public and its investor-clients in 2016, beginning with the Legal and Compliance Service’s initiative to come up with a universal S-1 Form that covers all the reportorial requirements of the BOI-registered companies. The adoption of such S-1 Form dispenses with the submission of semestral reports and other documents.

On the matter of the conduct of cost and benefit analysis on investments and incentives data, the Legal and Compliance Service provided critical inputs in th formulation of the rules and regulation to implement Republic Act No. 10708, otherwise known as the Tax Incentives Management and Transparency Act, which was approved during the year. It also undertook the conduct of massive information drive to apprise the BOI-registered companies of ther compliance under the said law.

The Compliance Divisions, which are responsible for monitoring and supervising BOI-registered companies, also leveled up by conducting 281 site visits, cleaning up the agency database by cancelling 519 inactive firms and increasing penalty collections to Php5.3 Million.

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ROAD TO 50 AND BEYOND

With an eye towards the achievement of its near-term goal of becoming a truly global investment promotion agency by the end of the decade, the BOI continued to streamline its internal systems and processes in 2016 to make them more efficient, responsive and relevant to the fast-changing global business environment.

The changes also reflect the dynamism of the agency, which remains one of the top performers in the larger DTI family, as it gears to celebrate the BOI golden anniversary in September 2017.

Foremost among the changes implemented during the year was Board Resolution No. 28-02 which delegated selected functions of the Board of Governors to the Management Committee BOI composed of Directors, Executive Directors to further speed up processing of investment registration

applications including those of MSMEs and help ease the way of doing business with the agency.

The Resolution gave the BOI Mancom the authority to issue certifications such as Non-Availability, Entitlement to Income Tax Holiday, Export Development Act, among others, as well as to issue endorsements like Foreign Nationals, Withdrawal of Time Deposit for SIRV Applicants, Good Standing for Client Registration System, to name a few.

The Service Heads are also allowed to approve amendments to the Terms and Conditions of BOI registration in specific cases like Change in Corporate Name, Stockholders/Corporate Structure, Plant Location, Address and other simple amendments.

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The Resolution likewise bestows upon the Executive Directors the authority for approval/action of amendments of Terms and Conditions of Registration like the change of start of commercial operations/timetable, provided that there shall be no amendment of the Income Tax Holiday (ITH) reckoning date; requests for downward amendment of registered capacity; amendment of registered products and services; and first request for upward amendment of registered capacity.

Those that needed to be elevated to the Management Committee, on the other hand, include applications for registration of Export Activities, Economic and Low-cost Housing projects, and projects covered by Republic Act (RA) No. 9513; approval of application for Long-Term Lease under RA 7652; and approval of Pre-qualification of Foreign Retailers under RA 8762, among others.

The Financial and Administrative Service for its part made sure that the BOI is compliant with Civil Service Commission requirements on the agency’s Citizen’s Charter as well as the Human Resources maturity level relative to the Program to Institutionalize Meritocracy and Excellence in Human Resource Management (PRIME-HRM).

The Service was likewise instrumental in the approval of the BOI Information System Strategic Plan for 2016-2020, which serves as a basis for the Department of Budget and Management (DBM) in approving the agency budget to support implementation and maintenance of IT-related projects and services.

Further support to the agency’s industry development and investments promotion thrusts during the year was provided by the IPPS in developing and implementing the agency’s “Do and Tell” Program which serves as the blueprint in communicating to its stakeholders in a clear, efficient, and proactive manner.

Combined with news worthiness of its information materials, strategic seeding of information through various platforms and effective media relations, the agency increased its presence in traditional and social media, bringing the total media mileage to Php 26.757 Million in advertising value for 145 media activities or 2,122.36 percent increase from only Php 1.260 Million earned from the 14 media activities conducted in 2015.

PHP26.757M Advertising Value

in 2016

2,122.36%increase


22

Statement, Strategy Map, Enterprise Scorecard, Cascading to the 2nd Level Scorecards owned by the Executive Directors, Creation of the Multi-Sector Governance Consultative (MSGC) Group and Early Gains.

The BOI likewise implemented its Transformation Programs for the year and was conferred the ISO 9001:2008 Certification in June by Certification International Philippines, Inc. for its adoption of a quality management system to demonstrate the agency’s ability to consistently provide services that meet customer, statutory and regulatory requirements.

BOI also moved 0.7 notches higher in its Knowledge Management (KM) Readiness level to 4.7 from 4.0 in 2015 according to a BOI KM Audit in December 2016. The score for 2016 is 11.9 percent higher than the target of 4.2 for the year, placing BOI in the refinement stage of KM readiness which means that implementation of KM initiatives is continously evaluated and improved.

The agency’s sterling performance was further validated through its participation in the Performance Governance System (PGS) Revalida for its Compliance Stage in June that focused on the basic elements of PGS like Charter

As a result, the BOI received the Silver Trailblazer Award during the PGS Revalida award ceremonies.

A Stakeholder Engagement Rating (SER) survey conducted in 2016 revealed that majority of the clients were satisfied with the plans and policies adopted by BOI with a rating of 97 percent.

Aside from the SER, all BOI Services provided Client Feedback Forms to each client served, including BOI employees as internal clients and the investors, company officials, liaison officers and participants in the various BOI trainings and seminars. In 2016, the BOI obtained a Client Satisfaction Rating of 97 percent, a notch higher from its 96 percent rating in 2015.

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BOARD OF GOVERNORS


1. Ramon M. Lopez DTI Secretary and BOI Chairman

2. Ceferino S. Rodolfo DTI Undersecretary for Industry Development BOI Vice Chairman and Managing Head

3. Nora K. Terrado DTI Undersecretary for Industry Promotion

4. Zenaida C. Maglaya DTI Undersecretary for Regional Operations

5. Lucita P. Reyes Governor

6. Oliver B. Butalid Governor

7. Henry F. Co Governor

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3

5674


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MANAGEMENT COMMITTEE

INVESTMENTS ASSISTANCE CENTERExecutive Director Raul V. AngelesDirector Domingo I. Bagaporo

INVESTMENTS PROMOTION SERVICESAssistant Secretary Felicitas Agoncillo-ReyesDirector Angelica M. CayasOIC Director Maria Rosario J. Dominguez

INDUSTRY DEVELOPMENT SERVICESExecutive Director Ma. Corazon H. Dichosa OIC Director Raquel B. EchagueDirector Nestor P. ArcansalinDirector Evariste M. CagatanDirector Rafaelito H. Taruc

MANAGEMENT SERVICESExecutive Director Efren V. LeañoDirector Erlinda F. ArcellanaDirector Bobby G. FondevillaDirector Marjorie O. Ramos-Samaniego

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BOI DIRECTORY

Ramon M. LopezDTI Secretary and BOI Chairman5F Industry & Investments Building385 Sen. Gil J. Puyat Ave., MakatiCityPhone: 976.5700 loc. 5520 I 5521 899.7450 loc. 286Fax: 896.1186E-mail: [email protected]

Dr. Ceferino S. RodolfoUndersecretary for Industry Development Group (IDG)BOI Vice Chairman and Managing Head4F Industry & Investments Building385 Sen. Gil J. Puyat Ave., MakatiCityPhone: 890.9303 / 890.9332 / 683.3506 loc. 248 / 296Fax: 895.3512E-mail: [email protected]

Zenaida C. MaglayaUndersecretary for Regional Operations Group (ROG)BOI Governor6F Trade and Industry Building361Sen. Gil J. Puyat Ave., Makati CityPhone: 751.3334 / 751.4626E-mail: [email protected]

Nora K. TerradoUndersecretary for Trade and InvestmentsPromotion Group (TIPG)BOI Governor3F DTI International Building375 Sen. Gil Puyat Avenue, Makati CityPhone: 895.3393 / 465.3300 local 301Fax: 895. 3993E-mail: [email protected]

Lucita P. ReyesBOI GovernorPhone: 890.9335 / 683.3505 loc. 255 / 273Fax: 895.3978E-mail: [email protected]

Oliver B. ButalidBOI GovernorTele Fax: 896.9285 / 897.6682 loc. 330 / 329E-mail: [email protected]

Henry T. CoBOI GovernorTele Fax: 897.2830 / 897.6682 loc. 331 / 332E-mail: [email protected]

Rafaelita M. AldabaAssistant Secretary Industry Development GroupPhone: 895.3519 loc. 276E-mail: [email protected]

INDUSTRY DEVELOPMENT SERVICES

Ma. Corazon H. DichosaExecutive DirectorPhone: 895.3666 / 683.3504 loc. 326 / 325Tele Fax: 895.3983E-mail: [email protected]

Raquel B. EchagueOIC-Director, Investments Policy and Planning Service (IPPS)Phone: 896.9239 / 683.3528 loc. 211 / 204Tele Fax: 895.3701E-mail: [email protected]

Rafaelito H. TarucDirector, Infrastructure and Services Industries Service (ISIS)Phone: 895.3997 / 683.3532 loc. 228 / 205Tele Fax: 895.6617E-mail: [email protected]

Evariste M. CagatanDirector, Manufacturing Industries Service (MIS) Phone: 890.9329 / 683.3536 loc. 307 / 251Tele Fax: 897.3080E-mail: [email protected]

Nestor P. ArcansalinDirector, Resource-Based Industries Service (RBIS)Phone: 895.3977/ 683.3539 loc. 278 / 208Tele Fax: 896.8453E-mail: [email protected]

INVESTMENTS PROMOTION SERVICES

Felicitas Agoncillo-ReyesAssistant SecretaryPhone: 896.9212 / 683.3501 loc. 3271328Fax: 897.2181E-mail: [email protected]

Ma. Rosario J. Dominguez OIC-Domestic Investments Promotion Service(DIPS)Phone: 896.4179 / 683.3523 loc. 241/ 310Fax: 890.9307E-mail: [email protected].

Angelica M. CayasDirector, International Investments Promotion Service (IIPS)Phone: 896.8907 / 683.3508 loc. 288 / 246Fax: 895.3521E-mail: [email protected].

INVESTMENTS ASSISTANCE CENTER

Atty. Raul V. AngelesExecutive DirectorPhone: 890.3056 / 683.3503 loc.323 / 324Telefax: 897.3079E-mail: [email protected]

Domingo I. Bagaporo Director, Investments Assistance Service (IAS)Phone: 895.3989 / 683.3512 loc. 270 / 265Fax: 896.8329E-mail: [email protected]

MANAGEMENT SERVICES

Efren V. LeañoExecutive DirectorPhone: 896.5167 / 897.3081 / 683.3502 loc. 322 / 321Fax: 897.53.34E-mail: EVLeañ[email protected]

Erlinda F. Arcellana Director, Incentive Service (IS) Phone: 895.3568 / 683.3522 loc. 227 / 203Tele Fax: 896.8236E-mail: [email protected]

Atty. Bobby G. FondevillaDirector, Financial and Administrative Service (FAS)Phone: 890.9326 / 683.3527 loc. 305 / 218Tele Fax: 890.3051E-mail: [email protected]

Atty. Marjorie O. Ramos-Samaniego Director, Legal and Investments Compliance Service (LICS)Phone: 890.3172 / 683.3516 loc. 238 / 274Telefax: 890.2151E-mail: [email protected]

BOI EXTENSION OFFICES

Ellorence D. CruzOIC-Chief, BOI Extension Office Cebu2nd Floor, DTI Building, corner Osmeña andLapu-lapu Street, Cebu CityTele Fax: (032) 412.1944 / 45Fax: (032) 255.6971E-mail: [email protected]

Lourdes Ellen N. Kionisala OIC-Chief, BOI Extension Office Cagayan de Oro3rd Floor, 52nd Business Center, cornerTaino Land Gaerlan Street, Cagayan de OroPhone: (088) 857.4867E-mail: [email protected]

Gil M. Dureza Division Chief, BOI Extension Office DavaoDoor 2, 2/F Building 3 GMC Building97 McArthur Highway, Matina, Davao CityTelefax: (082) 222.4677E-mail: [email protected]

BOARD OF INVESTMENTS (BOI)Industry & Investments Building, 385 Sen. Gil Puyat Ave., Makati CityTrunkline: (+632) 897-6682



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