The approval of the 2026 Strategic Investment Priority Plan (SIPP) through Memorandum Order No. 47 signed by President Ferdinand Marcos Jr. on May 21, 2026 marks an important step in the government’s continuing effort to attract investments in the Philippines through the grant of the investment incentive system under the Corporate Recovery and Tax Incentives for Enterprises (CREATE MORE) Act.
If an industry or project falls under the SIPP list, it may be eligible for registration with Investment Promotion Agencies (IPAs) such as the Board of Investments (BOI), the Philippine Economic Zone Authority (PEZA), and other investment promotion bodies. Once registered and approved, enterprises may avail themselves of incentives under the Tax Code, subject to compliance with CREATE MORE rules and requirements of the concerned IPAs.
Under the Tax Code, as amended, the Fiscal Incentives Review Board (FIRB) and IPAs may grant tax incentives only to the extent that a registered project or activity is included in the duly approved SIPP. Eligibility for incentives is directly tied to national priority activities and other policy considerations such as capital investment and job creation. The SIPP serves as the central reference point in determining which economic activities may qualify for available tax incentives as provided under the Tax Code, as amended. Projects or activities not listed in the SIPP shall be automatically disapproved.
The 2026 SIPP retains the usual three-tier structure but its content shows a clearer shift toward long-term economic transformation and more targeted industrial policy.
Tier I continues to cover foundational and enabling sectors including modern agriculture, manufacturing, information technology, healthcare services, disaster risk reduction and management services, telecommunications sector, pharmaceuticals, semiconductors and electronics, shipbuilding, housing, and air, water, and land transport. It also includes sustainability-driven industries such as industrial and hazardous waste treatment, bulk water treatment and supply, wastewater treatment and related projects.
The continued inclusion of agriculture is particularly important as we are still facing scarcity of food supply and rising prices of basic commodities. Despite being an agricultural economy, we still import significant volumes of basic food products such as rice, corn, meat, and other agricultural goods. By keeping agriculture within Tier I, the SIPP highlights the need to improve productivity, modernize farming systems, and strengthen food security. It likewise signals government support for investments in farm mechanization, irrigation systems, post-harvest facilities, and agribusiness value chains that can help reduce dependence on imports.
Fisheries and aquaculture carry the same importance. As an archipelagic nation, the Philippines has vast marine resources, yet the fishery and aquaculture industry remains underdeveloped in terms of production capabilities, processing, cold chain logistics, and export competitiveness. The inclusion of fishery and aquaculture activities creates room for investments in fish processing facilities, cold storage systems, and export-oriented aquaculture operations that can raise income in coastal communities and improve our country’s food supply. The inflow of investments in our coastal communities will certainly help improve the lives of our marginalized fishing communities. The Philippines has one of the longest coastlines in the world, so it makes sense to attract more investments in the aquaculture sector.
Tier II shifts the focus to strategic industries including defense-related services, desalination technologies, electric vehicle infrastructure, crude oil refining, renewable energy, sustainable aviation fuel, and health and food security-related services.
The inclusion of renewable energy and electric vehicle infrastructure is particularly significant as it reflects the government’s effort to reduce pollution, lower dependence on imported fuel, and support the transition to cleaner transport systems. Crude oil refining and desalination technologies also highlight practical economic concerns as energy security and water security remain key constraints in many parts of the country particularly in the urban areas.
Tier III focuses on frontier and high-technology sectors such as artificial intelligence, cybersecurity, quantum computing, hydrogen energy, nuclear-related technologies, advanced research and development, aerospace, modern biotechnology, and the production and adoption of new hybrid seeds, among others. The Philippines truly needs to develop these sectors to keep pace with global progress and development.
In fine, the 2026 SIPP is a positive development as it clearly identifies priority sectors that investors may consider in doing business into the Philippine soil. Clear policy direction is important as it allows investors to align their long-term plans with government priorities.
The author is a partner of Du-Baladad and Associates Law Offices (BDB Law) (www.bdblaw.com.ph).
The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal, or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at rodel.unciano@bdblaw.com.ph or call 8403-2001 local 380.