NEWSFLASH

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BOI GIVES IN TO FORD INCENTIVES DEMAND

Manila, Feb. 24, 1998 - The Board of Investments will, for the first time, grant tax and fiscal incentives to car assembly projects b including the activity in the proposed 1998 Investment Priorities Plan.

The incentives are aimed chiefly at speeding up the entry of Ford Motor Co. which is investing P4.18 billion in an assembly facility inside the Laguna Automotive Park. In addition, Ford also has a P2-billion investment in parts production.

BOI executive director Elmer Hernandez justified the move, saying the listing of the car assembly activity is aimed at attaining the exports target of $2 billion from the car and car parts sector by the year 2000. Such and export target, Hernandez explained, could only be achieved with an integrated operation.

Hernandez pointed out that the parts manufacturing sub-sector will not become globally competitive unless it has its own assembly factory.

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