Investments approved by the Board of Investments (BOI) from January to May jumped 40 percent to P290.6 billion on large capital inflows in the power and manufacturing sectors.
The BOI on Tuesday disclosed that its approved investments in the five-month period grew 40.04 percent to P290.6 billion, from P207.5 billion during the same period last year. Domestic capital accounted for nearly 77 percent of the total investments, but foreign commitments improved triple digits.
Approved investments from local firms went up 11.47 percent to P223.5 billion, from P200.5 billion, while investments from overseas jumped to an impressive 871.01 percent to P67 billion from P6.9 billion.
Singapore is the largest source of foreign capital with P35.4 billion, followed by the Netherlands with P9.1 billion. Thailand (P8.5 billion), Japan (P5.5 billion) and the United States (P2.4 billion) round up the list of largest offshore investors for the five-month period.
Japan is also expected to bring in more investments to the Philippines after President Duterte’s visit there in May, which resulted to nearly P289 billion in business deals expected to generate at least 80,000 jobs.
By sector, power made up over half of the total investments, as it expanded 74.08 percent to P185.4 billion from January to May, from P106.5 billion during the same stretch last year. Further, commitments in manufacturing more than doubled to P44.6 billion, from P19.4 billion.
Investments applied in the information and communications technology sector jumped to P33.2 billion, from P340 million, while in tourism to P8.4 billion, from P1 billion.
Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo said it is understandable that power projects account for the lion’s share, as they are crucial in meeting the demands of the government’s infrastructure program. He added they complement infrastructure projects the government will put up over the next months.
“At the end of the day, we have to ensure our power supply will accommodate the strong demand not only of our massive infrastructure projects and population, but also the rapid expansion of our industries led by the manufacturing sector,” Rodolfo stated.
In May, the BOI approved several manufacturing and service facility projects, including eight low-cost housing projects valued at P2 billion in Central Luzon and Southern Tagalog. It also gave the green light to Southwest Gallant Ferries Inc.’s P700-million shipping project that will service the Batangas, Romblon and Roxas City routes and Tren2 Agri-Industries Inc.’s P400-million Cavendish banana facility in Agusan del Sur that will be utilized for export activity once operational.
Trade Secretary and BOI Chairman Ramon M. Lopez said the Philippines is seen to sustain business confidence with its four-notch jump in the IMD World Competitiveness Rankings 2019 and the midterm elections win of administration bets and allies.
The BOI is targeting to haul P1 trillion in investments this year. Last year commitments registered with the investment body expanded 47.08 percent to P907.2 billion—its highest in its 51 years of existence—from P616.7 billion in 2017.