The Philippine government is positioning tax incentives as a key lever to steer private capital into high-value industries, as investment approvals and exports reached record levels despite mounting global trade and geopolitical risks.
Board of Investments (BOI) Managing Head and Trade Undersecretary Ceferino S. Rodolfo said the government’s 2026-2028 Strategic Investment Priority Plan (SIPP) is designed to channel investments into industries with the greatest potential to generate jobs, strengthen domestic value chains and enhance the country’s long-term competitiveness.
Speaking during the Visayas launch of the SIPP in Cebu, Rodolfo said the program goes beyond offering fiscal perks, serving instead as a roadmap to accelerate the development of emerging industries through coordinated government support, infrastructure, innovation and workforce development.
‘The SIPP is not simply a list of incentives. It is the government’s roadmap for creating the conditions that allow new industries to grow, existing industries to move up the value chain, and more Filipinos to participate in higher-value economic opportunities,’ Rodolfo said.
He identified Cebu as a strategic investment hub, citing its strengths in manufacturing, logistics, technology and skilled labor, while highlighting complementary opportunities across the Visayas. These include semiconductor and advanced manufacturing in Cebu, digital services and education in Iloilo, agribusiness and renewable energy in Negros, tourism and technology-enabled services in Bohol, and renewable energy (RE) and infrastructure projects in Leyte and Samar.
Rodolfo said these regional strengths position the Visayas to play a larger role in the country’s industrial transformation, provided investments are supported by an enabling policy environment.
The government’s investment push comes as approvals continue to accelerate.
The Philippine Economic Zone Authority (PEZA) approved P140 billion worth of investments in the first six months of 2026, up 94 percent from a year earlier, while BOI-registered projects reached P462 billion, a 21 percent increase over the same period. Together, the two investment promotion agencies account for more than 80 percent of approved investments nationwide.
Trade performance has also remained resilient despite global uncertainties.
Philippine exports reached $8.8 billion in June, the highest monthly value since the Philippine Statistics Authority began compiling monthly export data in 1991. The country has now posted 18 consecutive months of export growth, following a record annual export performance in 2025.
Rodolfo said the gains were achieved despite higher tariffs imposed by major trading partners, continued geopolitical tensions in the Middle East and the prolonged Russia-Ukraine conflict, which have disrupted global supply chains and commodity markets.
‘Cebu remains one of the country’s most export-oriented economies, giving the region significant potential to benefit from continued expansion in global trade,’ he said.
The investment drive is also being supported by sector-specific policies. Rodolfo cited the Executive Order signed by President Ferdinand Marcos Jr. establishing an incentive framework for the electric vehicle industry, which has already attracted interest from four prospective applicants.
The initiative follows previously announced plans by Japanese manufacturers to establish hybrid vehicle assembly operations in the country, underscoring the government’s efforts to build a competitive electric mobility ecosystem.
Rodolfo said the challenge now is to accelerate investments already taking shape across the Visayas by strengthening regional supply chains, attracting higher-value industries and creating more quality jobs.
‘Our task is not simply to identify future industries, but to create the ecosystem, partnerships and investments that will allow them to thrive,’ he said.