WHAT does 19th-century San Francisco, as depicted in the television series “Warrior,” have to do with the Philippines’ 2026 Strategic Investment Priority Plan (SIPP)?
At first glance, very little. “Warrior” is best known for its kung fu sequences and period drama. Yet beneath the action lies a familiar story: a rapidly growing economy, expanding infrastructure, investors searching for opportunities, workers fiercely competing for jobs and politicians struggling to balance economic growth with broader social and economic concerns.
In one scene, the mayor attempts to persuade local businessmen to hire more expensive local labor by offering government support and incentives. The details may belong to 19th-century San Francisco, but the underlying idea remains familiar: governments have long used incentives to influence business decisions, create jobs, develop industries and steer economic activity toward broader national objectives.
The recently approved SIPP offers an interesting lens through which to examine how the Philippines seeks to pursue these objectives. While often viewed simply as a list of activities eligible for incentives, the SIPP may be more useful as a window into how policymakers view the country’s challenges and opportunities. By examining the activities it seeks to encourage, one gains a clearer picture of the areas considered important to the country’s future growth and competitiveness.
Solving old problems
While much focus has been placed on artificial intelligence (AI) and other new technologies, the 2026 SIPP serves as a reminder that many of the country’s most pressing challenges remain structural and systemic.
Energy, perhaps, is the clearest example. Businesses continue to contend with high power costs and concerns over long-term energy security. The SIPP, accordingly, places significant emphasis on activities ranging from renewable energy and power generation to development of liquefied natural gas facilities, energy storage systems and even hydrogen and nuclear energy.
Water security is another recurring theme. The inclusion of bulk water supply, wastewater treatment, industrial and hazardous waste treatment and desalination facilities among the priority activities reflects the growing importance of reliable water infrastructure to both daily life and economic activity.
The same can be said for logistics and connectivity. Investments in ports, airports, transport services, telecommunications infrastructure, fulfillment centers and industrial zones recognize a reality familiar to many Filipinos: moving people, goods and information efficiently across an archipelago remains a persistent challenge.
Food security is another longstanding concern reflected in the SIPP. While discussions about the Philippines’ future economy often focus on advanced technologies, the continued prioritization of activities related to agricultural production, food processing, hybrid seeds, fertilizers, agricultural inputs and precision agriculture underscores the necessity of bolstering the country’s food systems and agricultural productivity.
Taken together, these priorities recognize that sustained economic growth depends not only on new industries, but also on addressing systemic challenges that continue to affect productivity and competitiveness.
Preparing for the next economy
The 2026 SIPP is not solely focused on legacy issues, but also reflects a deliberate effort to position the Philippines for its next phase of economic development.
AI, cybersecurity, semiconductors, advanced manufacturing, data centers and other technology-driven activities feature prominently among the priority investments. Many of these activities share a common objective: help the Philippines move further up the value chain through innovation, specialized expertise and higher-skilled jobs.
For many years, the Philippines has successfully attracted investments on the strength of its workforce, its strategic location, and its growing domestic market. The 2026 SIPP appears to signal an ambition to build on these strengths by encouraging investments in more knowledge-intensive and innovation-driven activities. In doing so, it seeks to position the country not only as a destination for investment but also as a participant in the development of new technologies, products, and services.
The full realization of this ambition hinges on factors beyond incentives themselves. Investors consider not only the incentives available but also the country’s ease of doing business, regulatory predictability, government processes efficiency and the practical ability to access and maintain incentives.
Government agencies play a critical role in providing clear rules, predictable timelines and efficient administration, while the private sector contributes the capital, innovation, technology and expertise needed to translate policy objectives into economic outcomes. In this respect, implementation may prove just as important as policy design.
Reading the signals
This is particularly relevant in light of the continuing evolution of the Philippine incentives regime, including expanded incentive options, enhanced value added tax zero-rating rules and continuing refinements in the administration of incentives for registered business enterprises. Businesses evaluating expansion plans, digital transformation initiatives, sustainability projects, supply chain investments, or new market entry strategies may find it worthwhile to revisit projects through this lens. Activities that may not previously have been considered for incentives could warrant a fresh review under this framework.
At the same time, the value of the SIPP may extend beyond incentive eligibility. The activities identified in the SIPP offer insight into the sectors that policymakers consider important to the country’s long-term development. For some businesses, that perspective may be just as valuable as the incentives themselves.
The San Francisco depicted in “Warrior” eventually grew into one of the world’s leading economic and innovation centers. Today, the broader San Francisco Bay Area is home to many of the companies driving the AI boom and continues to attract talent, investment and new ideas from around the world.
The Philippines faces its own set of challenges and opportunities today. The 2026 SIPP offers a glimpse of where the country hopes to go. Few people living in the San Francisco of “Warrior” could have imagined the industries and technologies that would later emerge there. Decades from now, perhaps some of the investments and opportunities taking shape in the Philippines today will be viewed in much the same way.
Diana Elaine Bataller is a director with the Tax & Legal practice of Deloitte Philippines, a member firm of the Deloitte network. For comments or questions, email phcm@deloitte.com.
