Manila: The government targets to attract international colleges and universities to establish their branches in the Philippines by giving incentives to these foreign higher education institutions (FHEIs). This, as the Board of Investments (BOI) announced Tuesday that it has issued Memorandum Circular (MC) 2024-08 amending the Strategic Investment Priority Plan (SIPP) guidelines to include Education City under the infrastructure and logistics sector.

According to Philippines News Agency, with the new MC, the BOI will give perks under Tier 1 to FHEIs that will establish branch campuses in the Philippines in partnership with local entities at a 60-40 ownership arrangement, in favor of the Philippine partner. Activities under Tier 1 are provided with incentives of four to six years of income tax holiday (ITH) plus 10 years of enhanced deduction regime (EDR) or 15 years of EDR.

The BOI said Educational City encompasses the development of a contiguous area for the establishment and operation of education facilities and buildings with digital infrastructure, as well as provision of auxiliary services that will enhance students’ education experience. Education facilities may include research, healthcare, athletic, culture, and art facilities.

BOI Executive Director Ma. Corazon Halili-Dichosa said the amendments to the SIPP are pivotal to advancing the national education agenda. ‘The new guidelines will enhance opportunities for international collaboration that would facilitate access to expertise and knowledge relevant to global industry trends, empower students, and bridge the gap between academe and industry,’ Dichosa said.

This initiative is also aligned with Republic Act 11448 or the Transnational Higher Education Act and is part of BOI’s Academe-Industry Matching or AIM! Program. Dichosa added that the inclusion of Education City in the SIPP will nurture the local talent pool while fostering international ties. ‘With a young and vibrant population, the Filipino talent is the country’s biggest advantage. The Filipino labor has been praised for their communication skills and for being highly trainable and adaptable to different work environments,’ she said.

Annually, the Philippines produces over 750,000 graduates, of which 10 to 12 percent are graduates of engineering and technology courses.