Breakout Session 2: ACCESS TO AFFORDABLE HOUSING: WHOSE JOB IS IT? DIRECTOR MA. CORAZON H. HALILI-DICHOSA Industry Development Group Board of Investments 22nd SHDA National Developers Convention 26 September 2013
Status of BOI-Registered Low Cost Housing Projects as of June 2013 BOI Registered Projects on Low as of December Jan.-June 2013 Cost Housing 2012
No. of Registered Projects Horizontal Vertical Total No. of Units Registered Horizontal Vertical Total Project Cost : Job Generation:
Total as of June 2013
602 405 197
82 63 19
684 468 216
268,836 147,363 121,473
42,610 29,336 13,274
311,446 176,699 134,747
Php 223.0 Billion
Php 32.5 Billion
Php 255.5 Billion
163,837
12,839
176,676
Compliance to SH Requirement (Actual)
Under RA 7279 (for Horizontal Projects) • No. of Horizontal Projects Monitored: 105 (as of 2012) • Total Socialized Housing Units Built: 15,230
• Total Lot/Land Area: 121,293.20 sq. m.
Compliance to SH Requirement (Projected)
Under BOI Guidelines (for Vertical/Condo Projects) • Investment Scheme – Total Estimated Area for SH Development: 250,065 sq.m. – Estimated Equivalent Number of SH Units (House & Lot @ 40 sq.m. each): 6,252 units
• Direct Participation Scheme – Total Estimated Amount of Participation: Php 2.2 Billion – Estimated Equivalent Number of SH Units (@Php 110,000 each): 19,935 units
Registration Requirements for Mass Housing Documentary Requirements
Upon PrePostAcceptance registration registration
1
Notarized Undertaking signed by CEO stipulating that the project has not incurred sales and commits not to incur sales until date of BOI registration
X
2
Certified true copy of Development Permit (DP)
X
3
4
5
Certified true copy of License to Sell (LTS) from HLURB Certified true copy of Temporary License to Sell (TLTS) from HLURB
Certified true copy of Certificate of Registration (CR) from HLURB Proof of verified compliance with the 20% socialized housing requirement (SHR): 1) Existing applicants a.for existing registered projects b.for the project being applied 2) First-time applicants
X (Horizontal) X (Vertical)
X (Vertical)
X (Horizontal)
X (Vertical)
X
X X
PROPOSED 2014 IPP
What is the Investment Priorities Plan (IPP) • a list of specific economic activities wherein investments are to be encouraged • promotes the government mandate of creating jobs for the people and economic development through the grant of fiscal or monetary and non-fiscal incentives
Process in Formulating the IPP Formulation of IPP by BOI TWG with prior consultation with OP, PMS, OCS, NEDA, DOF, DBM, DOE, DA, Senate & House of Representatives
Inter-agency Consultation Board Approval
Approval by the President
Public Hearing
8
Proposals for the 2014 IPP
BASES 1. 2. 3. 4. 5. 6. 7. 8. 9.
SWOT Analysis of the Philippine Economy President Aquino’s Social Contract with the Filipino People The President’s State of the Nation Address (SONA) 2013 Philippine Development Plan 2011-2016 SME Development Plan 2011-2016 Philippine Export Development Plan 2011-2013 National Science and Technology Plan Framework Strategy on Climate Change Industry Roadmaps
SWOT ANALYSIS OF THE PHILIPPINES STRENGTHS
WEAKNESSES
• Fastest growing economy in Asia at 7.6% in the first semester of 2013 • Affirmation of the Philippines’ strong economic and fiscal gains through improvement in the investment-grade status • Accelerated public investments especially on infrastructure that supports delivery of goods to markets and services to consumers • Better exports performance and sustained overseas Filipino remittances • Increased business confidence due to good governance and anticorruption platform of the present Administration as well as increased confidence in key government institutions (e.g., DPWH, DOTC) • Growth in construction industry including employment due to the government’s infrastructure investments
OPPORTUNITIES
SWOT
• Sweet spot for investments due to improved economic position • Lower import prices for not locally produced raw materials, inputs, semi-manufactured and consumer goods due to the strong peso • Possible increase in employment opportunity due to possible increase in investments • Increase in markets due to the implementation of ASEAN One Community in 2015 • Potential markets under other FTAs
• Weak linkage to global economy as shown by low influx of FDIs • High incidence of poverty • Issues on high power rates, smuggling, low quality/insufficient raw materials, substandard products that hamper competitiveness and productivity • Insufficient raw materials (has to be specifically identified )
THREATS • Exported goods tend to be relatively expensive with the strong peso • Strong competition from ASEAN products with the advent of ASEAN One Community in 2015 • Competition with ASEAN products
President Aquino’s Social Contract with the Filipino People The Vision for the Philippines: A country with… 2. An organized and widely-shared rapid expansion of our economy through a government dedicated to honing and mobilizing our people’s skills and energies as well as the responsible harnessing of our natural resources; Economy: 7. xxx recognizing farms and rural enterprises as vital to achieving food security and more equitable economic growth, worthy of re-investment for sustained productivity. 9. xxx creates conditions conducive to the growth and competitiveness of private businesses, big, medium and small. 10. xxx creates jobs at home, so that working abroad will be a choice rather than a necessity; and when its citizens do choose to become OFWs, their welfare and protection will still be the government’s priority. Environment: 16. xxx encourage sustainable use of resources to benefit the present and future generations.
The President’s State of the Nation Address (SONA) 2013
• Energy • Agriculture • Tourism • Infrastructure
Philippine Development Plan 2011-2016 - Chapter 3: Competitive Industry and Services Sectors - Chapter 4: Competitive and Sustainable Agriculture and Fisheries Sector
- Chapter 5: Accelerating Infrastructure Development - Chapter 8: Social Development
SME Development Plan 2011-2016 –
To address the key challenges and constraints that continue to prevent the MSME sector from realizing its full potential and boosting the country’s industrial growth
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The Plan aims to: • Create 2 million employment in new and sustainable jobs by 2016 • Raise the economic contribution of SMEs to 40% of gross value added to be at par with the share of the SME sector to GDP of other countries in the region.
–
To propel key industry areas: 1. Tourism 2. Agribusiness 3. Infrastructure 4. BPO 5. Logistics 6. Mining 7. Electronics 8. Shipbuilding 9. Housing Other high-potential industries: 1. Homestyle products 2. Construction materials 3. Wearables 4. Motor vehicles parts & components
Philippine Export Development Plan 2011-2013 -
Given unfolding global market conditions, the Philippines will grow exports of merchandise and services by forty percent (+40%) in 2011-2013 versus 2008-2010.
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By 2016, total exports will double versus the 2008-2010 average exceeding one hundred twenty billion US dollars (US$ 120B).
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Exports will grow in the coming three-years (2011-2013) by building on our current business. It will double in the next three years (2014-2016) through an export development program anchored on our agro-industrial resource-base.
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Product Strategies: • Move up the Value Chain • Capture Higher-value Processes in the Global Supply Chain • Develop Product Linkages for Organic, Natural and Certification-enabled Products
Philippine Export Development Plan 2011-2013 -
Priority Products: Food: 1. Fresh Fruits/Vegetables: mango, banana, papaya, okra 2. Processed Food 3. Marine Products Homestyle Products: 1. Furniture – mixed media furniture, wood/plastic/stone 2. furniture, outdoor furniture 3. Furnishings 4. Holiday Decors
Coconut (non-food): 1. Coconut fiber, coir 2. Coconut peat/dust 3. Geotextiles 4. Coconut oil
Garments/Textile: 1. High-end Gowns/Dresses 2. Ethnic Natural Fiber 3. Barong 4. Lingerie/ Night Wear IT-BPO: 1. Voice Services: Contact center 1. Non Voice Services : Back-office/KPO IT (software development, application, maintenance) ESO/Engineering and design processes Health Information Management Transcription (Legal & Medical) Animation Game Development Minerals: 1. Metallic – Gold, Copper, Nickel 2. Non –Metallic Minerals - marble
Wearables: 1. Costume/Fine Jewelry 2. Bags 3. Footwear/Slippers/Shoes Electronics: 1. Semiconductors 2. Electronic Data Processing 3. Automotive Electronics and Solar Power/ Photovoltaic Cells
Motor Vehicle Parts: 1. Original Equipment Manufactures (OEMs): 2. Wiring harness, transmissions/gears, sensors, alternators, brake systems and servo brakes 3. Replacement parts: radiators, leaf springs, filters, batteries, alloy wheels, exhaust system
National Science and Technology Plan -
Vision for Philippine S&T By 2020, the Philippines shall have developed a wide range of globally competitive products and services which have high technology content. -
Goal for Philippine S&T in terms of SME By 2020: a well-developed S&T-based SME sector
Framework Strategy on Climate Change -
Vision: A climate-risk resilient Philippines with healthy, safe, prosperous and selfreliant communities, and thriving and productive ecosystems
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Adaptation Enhanced Vulnerability and Adaptation Assessments Integrated Ecosystem-Based Management Climate-Responsive Agriculture Water Governance and Management Climate-Responsive Health Sector Climate Proofing Infrastructure Disaster Risk Reduction
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Mitigation Energy Efficiency and Conservation Sustainable Infrastructure Renewable Energy Environmentally-Sustainable Transport National REDD + Strategy Waste Management
WORKFLOW OF THE 2014 IPP WITH TIMELINES INDUSTRY ROADMAPS
POLISHING OF THE FRAMEWORK AND PROPOSED LISTING
SOCIAL CONTRACT/ 2013 SONA/ PDP/ SME PLAN/ OTHER POLICIES & LAWS
(BOI-IPP TWG)
CRAFTING OF THE 2014 IPP FRAMEWORK (BOI-IPP TWG)
30 Aug
BOARD PRESENTATION OF THE 1ST DRAFT OF FRAMEWORK (FOR COMMENTS/
10 Sept
POLICY DIRECTIONS)
BOARD PRESENTATION OF THE 2ND DRAFT OF FRAMEWORK 17 Sept
11 & 17 Oct
BOARD PRESENTATION OF THE 3RD DRAFT OF THE FRAMEWORK/ PROPOSED LISTING (FOR COMMENTS/APPROVAL OF THE FRAMEWORK)
BOARD PRESENTATION OF THE PROPOSED 2014 IPP 4TH DRAFT) (FOR COMMENTS/ APPROVAL)
POLISHING OF THE PROPOSED 2014 IPP (BOI-IPP TWG)
8 Oct
RE-DRAFTING OF THE FRAMEWORK/ DRAFTING OF THE LISTING (BOI-IPP TWG)
22 Oct
24 Oct
BOARD PRESENTATION OF THE 5TH DRAFT OF THE 2014 IPP
27 Sept
PRESENTATION TO THE INTER-AGENCY IPP CORE GROUP (OES, PMS, NEDA, 23 Sept DOF, DTI)
ENDORSEMENT TO THE OP OF THE PROPOSED 2014 IPP 20 Dec
SUB MISSION TO THE DTI SECRETARY OF THE PROPOSED 2014 IPP 13 Dec
BOARD PRESENTATION OF THE 6TH DRAFT OF THE 2014 IPP
29 Oct
PUBLIC HEARING (3 MAJOR CITIES) (2 WEEKS TO SEND COMMENTS)
15 Nov
10 Dec
CONSOLIDATION OF ALL INPUTS/ COMMENTS
(BOI-IPP TWG)
29 Nov & 5 Dec
Thank You!