MANILA -- Investment approvals in the Board of Investments (BOI) is nearing the trillion-peso mark as it registered a total of PHP907.2 billion worth of projects this year.
BOI said investment pledges for 2018 jumped by 47.1 percent from PHP616.8 billion in 2017, and even surpassed its targets of 10-percent growth and PHP680-billion approvals for this year.
“This new historic mark breezing past last year’s record figure not only reaffirms but further strengthens investor confidence under the Duterte administration. We were initially expecting to at least attain our target of PHP680 billion for the year, instead we were able to more than double the PHP442 billion investments level in 2016,” Trade Secretary and BOI Chairman Ramon Lopez said.
Lopez reported that bulk of the commitments this year were in manufacturing sector, with projects amounting to PHP409.3 billion, surging from PHP96 billion investment pledges last year.
“This will result in industrial empowerment, particularly with the upstream, heavy industrial projects that will allow us to expand our capability to manufacture finished goods currently not produced in the country,” he added.
“Together with the investments in key logistics, infrastructure and power projects including LNG (liquefied natural gas) terminals, these approved projects will strengthen the local industrial production base as it impacts on improving the general level of competitiveness of Philippine industries and pushing development to the regions,” the trade chief noted.
Strong growth in investment approvals were also recorded this year in sectors of transportation and storage, which rose 626 percent to PHP129.6 billion from just PHP17.8 billion in 201; water and sewerage, surging by 1,494 percent to PHP14.3 billion from PHP894.4 million a year ago; retail, with PHP8.1 billion from PHP2.7 billion; and accommodation sector with PHP39.9 billion from PHP11.3 billion.
Majority of the investment pledges in the BOI were from local sources, with total projects amounting to PHP803.2 billion. This increased by 35 percent from last year’s commitments of PHP595 billion.
Approved investments from foreign sources rose 378 percent to PHP104 billion from PHP21.7 billion in 2017.
Top foreign investors this year are China, with investments amounting to PHP48.7 billion; British Virgin Islands, with PHP15.6 billion; Singapore, with PHP13.6 billion; Indonesia, with PHP7.5 billion; Japan, with PHP4.2 billion; and Malaysia, with PHP2.9 billion.
“Given the epic surge in investments for 2018, it is but inevitable to aim for another historic milestone -- the trillion-mark next year. We are confident of hitting yet another growth in investment registrations next year with the impending entry of big-ticket projects as concrete fruits of the Administration’s investment roadshows,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo added. (PNA)
