Cruz, Jan Russell Nicolas B.

Tools for Policy Analysis

Remiscal, Lindsy Faye Malolos City LGU’s Investment Plan Analysis

Primary Issue Held:

The city government of Malolos City, through its Investment Code of 1999, acknowledges different levels of sectors
of businesses that operate within the city. The investment code established the parameters for the rights, priviliges,
regulations, and set-responsibilities of both the government and enterprises within the city’s jurisdiction.

The current Investment Code of 1999 instills a provision to provide equal opportunities to small and medium
enterprises including those big corporations operating within the city of Malolos and the lack of avenues of opportunities
for sustainable development facets such as agricultural programs and livestock services.

Main Gist of this Paper:

Provide a brief or abstact of program/s or service/s that will address in-micro the socio-economic-agricultural issues
of the coverage of the current investment code of the Malolos LGU.

Set of Recommendations

 Equitable distribution of privileges for MSMEs both local and indigenous-inclined enterprises and for big
corporations. – Provision of complex and equitable set of incentives and opportunities for Indigenous Businesses
(Local Businesses) and vast and big corporations.

 Revision of the Application Process for All Types of Businesses: Rather than providing a simplified application
process for small and medium businesses, the LGU shall adapt a standardized-simplified-comprehensive application
process that will enable both efficient process and provide investigative components to detect anomaly or eligibility
requirements for incentiving such business—both for MSMEs and big corporations.

 Establishment of an Direct Agricultural Management Pipeline1 for Maloleño Farmers or those who belong to
the locality’s agriculturally-inclined individuals.

1
Pipeline in this context is used as a metaphor.
  LGU’s Revision, Creation, and Implementation of a Comprehensive Land Use Plan for Industrialization and
Agricultural Subdivision.

Components and Actualization of the Recommendations

Equitable Distribution of Incentives for MSMEs and Big Corporations

Under the local investment code of the city, it ensures to incentivize any establishments who can satisfy the base
requirement of:

Table 1: Current Standards for Incentivizing an Establishment.

Capitalization Employee Size Incentive
Below PhP 3 M Minimum of 10 Regular Employees Minimum of 4 Years
PhP 3 M – 6 M Minimum of 20 Regular Employees Minimum of 4 Years

Table 2: Proposed Standards and Revised Incentives for MSMEs and Big Corporations:
Type of Establishment Employee Size Incentives Duration
and Type
MSMEs (Local Citizens and At least 4 Regular  1st two years: 60% Tax Discount Minimum of 4 Fiscal Years
Indigenous Peoples) Employees  3rd Year: 50% Tax Discount
 4th and Beyond: Full Payment

 Local Government Stipend for PWD, Solo Parent,

Senior Citizen Employees amounting to PhP
1,000.00 / month.
Agriculture and Livery At least 7 Regular  1st 3 years: 50% Discount for Registration and other Minimum of 6 Fiscal Years
Employees Gov’t Fees
 3rd to 5th Year: 40% Discount for Gov’t Annual
Fees
 6th Year and Beyond: Full Payment
  Fertilizer, Machinery, Vitamins, or Feeds Quarterly
Supply for Qualified Businesses2

 Priotization for Water Services and Meters for

Irrigation

 Local Gov’t Stipend for Farmers amounting to PhP

6,000.00 / month3

 Agricultural Land Protection Program

Big Corporations / At least 50 Regular  1st to 3rd Year: 60% discount for gov’t processes’ Minimum of 5 Fiscal Years
Industrialized Enterprises Employees fees
 4th year: 50% discount for gov’t processes’ fees
 5th year and beyond: Full payment

Land Agricultural Protection Program – the program designed to protect the farmers’ land in case the farmers would
decide to sell their agricultural lands, the LGU will provide necessary actions such as financial and material aids to intervene
for the safety of the access for agricultural products within the city. The LGU will immediately act by communicating with
the concerned farmers to identify the socio-economic needs of such—if ever and warranted, a special agricultural loan
assistance with minimal to no interest kind shall be awarded to the concerned farmers.

The city of Malolos shall provide necessary intervention: to prevent individuals from purchasing and
converting farmlands into an industrialized and private property by providing emergency loan assistance to the farmers,
as a form of a last resort unless the farmers say otherwise.

Further, the LGU of Malolos shall create a task force to expedite the creation, implementation, and maintenance of
urban gardening sites across the localities. These urban gardening sites can harness the growth of plants and vegetables
such as lettuce, malunggay, cucumbers, carrots, green beans, and kale—these can be developed for different approach in
agricultural farming within the urbanized city of Malolos.

2
Until the operation of an establishment is ongoing, the support will be provided by the LGU.
3
Financial Aid will run at least for 10 yrs., can be extended unless otherwise provided by a city ordinance.
 Why is it we propose to provide direct tax discounts for MSMEs with the 50-60% range? – if the LGU will deem it as
appropriate, this will have a positive domino effect across Malolos’ communities; by providing tax deductions for a limited
time, this will financially stabilize the local economic trade and growth across Malolos. Therefore, restructuring and
revitalizing the local-founded small and medium enterprises. Rather than giving tax cuts to those branches of big
corporations such as ‘Alfa Mart’ (connected to the Sy Family) and the ‘7-11 Mart’ convenience stores, this provision for
MSMEs will enable those people who are classified below the society’s triangle to prosper through their enterprises. The
idea of awarding discounts aforementioned above were still based on the current investment code of the Malolos City LGU.
The logic understanding of this discounts and temporary tax discounts are to provide leeways and leniency to those MSMEs
within the locality to prosper and to not interpret government’s cuts in taxes as hindrance of local economic progress—the
temporary incentives that will be given by the LGU will enhance the vast array of MSMEs in Malolos and provide them
reasonable programs to gain momentum for their own growth, thereby, indirectly affecting the communities or
barangays of Malolos City.

The idea of incentiving MSMEs, Livestock Farms, and Agricultural Farms is that, not just to attract potential investors
from different regions/localities, but to strengthen the entreprenuerial foundations of these sectors engaging them in
activities for better quality of goods and services—prioritizing quality over quantity of businesses across Malolos City. This
type of renumeration is not a form of a capitalist approach or adherence to the essence of capitalism per se, but should
magnify the crucial role of supporting and protecting those businesses led by the people from the community of Malolos:
Maloleño Farmers and Small to Medium Business Owners.

This is a form of a longer term of investment in the city, investing in the people’s initiatives—expanding the
relationship of the LGU and its Constituency—narrowing the broad avenues of opportunities, this is the real form of strategic
investment plan; crafted by simple words—inspired by communal advantages.

Direct Agricultural Management Pipeline (DAMP)

This program shall focus on the welfare of agricultural sectors primarily those individuals who make up the sector.
This agricultural management pipeline will establish a direct linkage between the local government unit and to the farmers
of Malolos, Bulacan thereby creating a distinct relationship between them to protect each other’s interest that boils down to
the welfare of the Maloleños.
Theoretical Relationship of the LGU (Malolos) and Agricultural Farmers:

Local Government Unit’s Ordinances for Agriculture

Farmers
LGU of Local
Malolos Maloleño
City Farmers

Farmers’ Output

Direct Agricultural Management Pipeline will enable the LGU to protect the interests of both the public consumers
and the agricultural farmers. This management pipeline will allow the LGU to allot a funding for purchases of the farmers’
products in its original price and then reselling it to specified vendors in the Malolos Public Market with no interest. This
simple process will ensure the farmers’ continuous spending and income revenue as the LGU will contractually obligated
to ensure that the farmers’ products will be bought without negative bargaining and pressure as the LGU will purchase it
in its original price—resell it with no interest; basically, a conduit between the consumer market and the agricultural
farmers.

Mapping of the Direct Agricultural Management Pipeline (DAMP) of the Malolos LGU:
 This pipeline management will basically ensure the stability of the farmers’ revenue income revenue and the access
of the consumer market to a much lower prices of vegetables and alike compared to those being sold in supermarkets and
neighborhood centers. All in all, these will provide growth and stimulus in Malolos’ enterpreneurial sector; this is limited
to what is stated above.

Creation of a Comprehensive Land Use Plan Magnified for Agricultural, Livestock, and Enterprises
Purposes
The LGU of Malolos City shall deem necessary the creation and strict feasibility studies for a centralized
comprehensive land use plan (CLUP) to find, appropriate, plan AND implement this CLUP. The LGU shall first endeavor
in an extensive integrative research that not just involves identification of current farmlands and possible land areas for
agriculture, livestock, or urban gardening facilities, but should integrate the feedbacks and opinions of those people who are
in the frontline of this socio-economic-agricultural issue within the locality.
This comprehensive land use plan will enable the LGU of Malolos City to finally use its authority to protect the welfare
and overall interests of agricultural farmers and similar individuals – to preserve and prolong the essence of sustainable
development in the city of Malolos. Through this initiative, the LGU may create an ad hoc committee through its City
Agriculture Office of Malolos, this committee shall have the following mandate:
i. To facilitate an investigative and extensive research among Maloleño Farmers regarding the
CLUP’s effect to their livelihood;
ii. Create a reference map for basis of the pilot mapping of appropriated lands for agricultural
farming, livestock farming, and MSME centers;
iii. Coordinate with the regional office of the Department of Agriculture to identify the possible
upgrades and maintenance of the irrigation waterways systems across Malolos;
iv. Coordinate with the regional office of the Department of Agriculture to provide safety
procedures for livestock farming programs and services such as vaccination drives, sentinel
protocols, breeding requirements and standards, and genetic improvement programs for
animals specialized in livestock farming;
v. Coordinate with the regional office of the Department of Trade and Industry to
conceptualize and analyze the strategic plans of the Malolos LGU regarding the MSMEs
industrialization in the city;
 vi. To compile and run a comparative analysis on the different narratives, opinions, and statements
from all stakeholders to the plan such as those of the farmers, livestock farmers, MSME owners,
and those citizens of Malolos City; and
vii. To craft a SWOT analysis, comprehensive research and development report, and feasibility study
regarding the possible creation of the Malolos’ CLUP for Agricultural, Livestock, and Enterprises
Purposes.
The CLUP of Malolos will aim to institutionalize the different sectors or facets of development within the city—by
establishing and appropriating land partitions and providing required access to utilities such as but not limited to: irrigation
waterways system, sewerage treating facilities, business districts with functional commercial spaces, direct and exclusive
line of electricity, et cetera. These components will revitalize the era of local economic activities within the city, by giving
and providing programs and services to stabilize their operations.
Agricultural Farmlands, Urban Gardening Facilities, and Livestock Farms, through the CLUP, will access
government-led utility facilities to help for their day-to-day operations—aside from this, through the Direct Agricultural
Management Pipeline (DAMP), these sectors of businesses will gradually sustain their operations and through time,
attract possible investors of different fields due to the dynanimity, interactiveness, and diverse stimulus of the local
economic components of Malolos City.
Chapter V: Sec. 15 – (C) (D) (H) (I):
 CHAPTER V – Section 15 -“Investment Priority Areas”
With the listed investment priority areas, we are able to identify how and what the Malolos LGU are aiming to
prioritize, enhance, and perfect economically. Nevertheless, we must take notice of all priority investment areas
formulated, whereas few are already boosted and have been overcompensated and overprioritized unlike all others
listed. With this fact, the LGU, -if they cannot remove these from the list- must divert their focus on other areas that
are overlooked and unaccommodated.
C. of Section 15 –
Knowing that our city has a very valued historical significance, most of our city's tourist facilities
are in desperate need of upgrades and maintenance to keep up with the quantity of tourists that are therein.
All while sites such as our political museums lack a defined parking lot, limiting their ability to provide daily
services and accommodate a surge in tourist volume, which if not addressed immediately may influence the
overall tourism of our city. The number of mid-range hotels that we have in the city is also a factor affecting
 the tourism promotion in our city, since there are not many hotels to stay in when coming to visit our city –
particularly those who do not have families living within Malolos-, tourists often just decide to ditch their
initial plans and opt other communities that have hotels which can accommodate them for the entire duration
of their visit. For the case of Club Royale, the only known operating hotel service in the city, they do not
promote their amenities properly: not even online, making tourists to think that there is no place to
accommodate them in their visit. Aside from this reason, with the ongoing construction or the railway project
of the PH Government, which happens to be right in front of their vicinity, it generates a not-so-tourist-friendly
perception since the main entrance to the hotel is obstructed and hidden by the on-going project, and that
disruptions cannot be limited due to the amount of construction happening within the area. Promotion is also
another element to consider affecting the tourism in our city; Our museum and other tourist facilities may not
be as big as those in other communities within the country, but the least we can do to attract investment is to
draw visitors through significant promotion, whether done aesthetically, commercially, or socially. Clearly this
does not go in line with the investment code’s declaration of providing a good climate for investments.
D. of Section 15 –
One of the Municipal Investment Code’s declaration is to improve the quality of life of its
citizenry, and among the listed Investment Priority Areas under the property development projects are
retirement villages. Yet, there is a very limited -if not only one, retirement facility known within our city -
Tahanang Mapagpala, but we must take into account that if this provision for investment is really effective,
how is it that the conditions and situation within Tahanang Mapagpala does not reflect this so-called effectivity
of the investment and development plan. One instance, during the pandemic nuns and all other staffs caring
for the elderlies within facility had to ask help through social media to provide enough food, diapers, etc. for
all of the elderlies in the facility, seeming that the Malolos LGU forgot about them or maybe overlooked their
capability to provide the care they give, completely aware that retirement facilities do not generate an income
of their own. It is completely inexcusable, that just because of the pandemic that happened their facility was
completely set aside and not prioritized when it was clearly stated in the Municipal Investment Code that they
are one of the IPAs listed. Cases like this, only says much how retirement villages/facilities are not one of the
areas prioritized and is in reality, underdeveloped within our city unlike conventions, commercial complexes,
food terminals, and other income generating clusters. If this investment code is really inclusive, we must take
action into scenarios such as this particular one.
H. of Section 15 –
 If we come and observe our local ports within the fisheries sector, its condition will not come
unnoticeable. In Brgy. Atlag, unfortunately due to the water level ultimately rising, facilities that used to be of
use were forced to be abandoned impacting the livelihood of most people. Even if they are still managing to
operate as a transportation port, business sectors were forced to transfer in higher level of lands in order to
operate. Maybe there is no huge conflict for that, however this just goes to show how our port facilitates fail to
be utilized and overcome the challenge of rising water level. Although the rising level of water is a problem of
the world, our own LGU must still provide support for the affected livelihood and communities, and if possible
create projects that will address the problem in rising water because even if it is a problem of the world there
still ways to overcome it as a city; Starting with digging and deepening the catch basins in order to
accommodate the rising water level without having to give up territorial lands that are being used.
I. of Section 15 –
In our agricultural sector, since the City LGU have been focused in the urbanization of our city,
unfortunately, there are many agricultural lands lost or acquired which will be converted into commercial
spaces and used for other urbanization projects. We must take into an important note that while we are
investing in the development of our community, we should also invest in the environment and its preservation,
avoiding it from being completely destroyed. That investment for the city’s economic prosperity and, for
environmental protection and preservation must go hand-in-hand and equal.

 CHAPTER V – Section 25 -“Support to Micro, Small, & Medium Sized Enterprises”

In Chapter V-Section 16 (D), stating requirements for MSMEs, it indicated that MSMEs must have at least 3
Million Pesos as capital with no less than 10 regularized employees. This only goes to show how the legitimate micro
and small enterprises have been undermined. Within our city, these requirements are quite ambitious for the
incentives to be awarded which only few can avail and qualify. For the sole reason that most of the legitimate micro
enterprises in our city, operate only with a minimum of 1-3 employees and use up only 50,00 capital for start-up. If
this qualification for the incentives will be maintained, the incentives will only go to mega businesses and does not
really benefit or invest all legitimate micro businesses that our city is mostly composed of. Take a good glance at our
public market area, a clear example of the micro businesses that make up our city, they most certainly do not look
like they use a 3-Million-peso capital, they thrive with only 2 to 5 employees if not 1. These legitimate MSMEs are the
heart of our business sector so much so, that we have even built specific areas and facilities to accommodate them
like the one in the vicinity of Capitolyo, a newly built food center and the ever-thriving convention center food and
 skate park. This requirement should be adjusted realistically and in accordance with the true position of the city's
economic development with sincere support for MSMEs, setting realistic and attainable standards. Same for BMBEs.

 CHAPTER VIII - Section 34 –“Greening/Re-greening of Area”

In the worsening case of climate change, this part of the investment should be extensive. It is surprising that with
the rapid urbanization in the city, our regreening and greening programs are very slow. We must not make excuses
by leaving it to the end of the project for aesthetics, or green landscaping will complicate the concrete plan. Instead,
re-greening or greening affected areas should be expedited or combined, along and with, the on-going urbanization
projects.

 Article IX -“Provisions for Environmetal Protection”

Our environmental provisions should not be limited and specific to hazardous substances, toxic waste, and
nuclear waste. In our city, there are not many problematic industrial facilities unlike those within the area of
Meycauayan. With this fact, we should divert the attention of Environmental Protection to the proper disposal of
waste, especially the legitimate micro enterprises because their operation is also one of the biggest contributors to
the waste of our city; Due to the volume of single-use plastics, or products that are trashed right away like those in
the food centers and tiangges that we have in the area. Even though it may be a very little step toward environment
protection it is the only we need, since the current provision are not exactly as applicable to our city as to others.