Two key industrial policy programs – the 2010 Investment Priorities Plan and the new Motor Vehicle Development Program – have been endorsed to Malacañang as among the final efforts by Trade and Industry Secretary Peter B. Favila before his appointment as Monetary Board member took effect last March 5. Favila endorsed for President Gloria Arroyo’s signature the executive orders in the first week of March.

Usually, the Board of Investments (BoI) would be able to complete the drafting of the annual IPP in March for Malacañang’s signature normally at the end of March.

This time, however, the BoI, which is chaired by the DTI Secretary, approved the 2010 IPP, earlier than usual, last February 24.

Trade and Industry Undersecretary Elmer C. Hernandez cited the smooth sailing approval of the 2010 IPP.

The public hearing of the annual list of priority economic areas eligible for government tax perks was completed in the second week of February.

Hernandez said that there was a time also that the IPP was approved by Malacañang on time, but its implementation was delayed until May. Under the law, the BoI must have a new IPP by March 30.

Aside from the regular list of priority projects, this year’s IPP also retained the Contingency List, a special component of the 2009 IPP, after the National Economic and Development Authority (NEDA) said that the effect of the global economic crisis still exists. The IPP, however, has required all applicants for incentives under the Contingency List to meet the minimum criteria of job retention, maintain the number of workers or rehire workers to pre-crisis level or addition of new workers.

Also retained in the regular listing is the vertical mass housing for Metro Manila primarily due to the huge housing backlog and based on the representation by the Housing and Urban Development Council.

Meantime, the new MVDP was met with strong opposition from the local automotive players.

The Chamber of Automotive Manufacturers of the Philippines Inc. has sought an intervention from Malacañang asking President Gloria Arroyo not to sign the prepared EO because it would only kill the government’s goal to develop the completely knocked down sector.

“It is in this light that the industry is appealing to you to maintain the current MVDP (EO 156) to avoid creating uncertainties and instability in the industry. Our investments and business plans are anchored on the framework and policy objectives of EO 156 particularly the prohibition of imported used vehicles including used engines, parts and components,” said CAMPI president Elizabeth H. Lee in a letter addressed to Arroyo.