The Philippines is positioning itself as a regional hub for smart, sustainable, and innovation-driven industries under the draft 2025–2028 Strategic Investment Priority Plan (SIPP), which outlines priority investment areas across a three-tier system.
Currently under consultation, the SIPP classifies sectors based on their strategic value, technological intensity, and sustainability impact.
The tiered structure also determines the level of government support, with Tier II and Tier III projects eligible for more targeted fiscal and non-fiscal incentives.
Tier I covers foundational and broad-based sectors critical to economic stability. These include agriculture and manufacturing industries such as food processing, pharmaceuticals, semiconductors, steel, and cement, as well as certified Halal, Kosher, and organic production.
The tier also highlights services like IT-BPM, creative industries, engineering, and transport maintenance, including ship and aircraft servicing.
Key enablers under Tier I include healthcare, disaster risk reduction services, and major infrastructure projects spanning telecommunications, housing, transport systems, logistics hubs, industrial zones, and education facilities.
Energy investments focus on conventional power generation, storage, and fuel infrastructure, alongside sustainability initiatives such as waste management, water treatment, and circular economy projects.
Tier II targets strategic gaps and economic resilience. Priority areas include defense-related services, integrated circuit design, desalination, and import-substituting industries such as steel and oil refining.
The tier also accelerates sustainability transitions through investments in electric vehicles, renewable energy, green fuels, and critical minerals processing, as well as integrated waste systems.
Health and food security are central to Tier II, with emphasis on vaccines, pharmaceuticals, smart agriculture, and agri-based innovation.
Tier III focuses on advanced innovation and emerging industries. It promotes research and development, commercialization of intellectual property, and high-tech sectors such as aerospace, wafer fabrication, hydrogen and nuclear energy, cybersecurity, artificial intelligence, quantum technologies, and Industry 4.0 and 5.0 adoption.
The tier also includes biotechnology, additive manufacturing, and the development of innovation infrastructure such as data centers and R&D hubs.
Beyond the tiered framework, the SIPP supports export-oriented activities, sectors governed by special laws, and region-specific priorities, aiming to drive inclusive growth while strengthening the country’s position in high-value global industries.
