Three quarters done and the Board of Investments (BOI) is making a case that it can achieve its target of registering P1 trillion in fresh projects this year with capital applied to the agency now standing at nearly P765 billion.
Based on official records, investments applied to the BOI from January to September doubled to P764.7 billion, from P372.9 billion during the same period last year. Bulk of this capital inflow came from domestic sources at roughly 69 percent, while the remaining 31 percent came from foreign investors.
Investments from local firms grew 54.7 percent to P524.9 billion, from P339.3 billion, while from foreign sources improved sevenfold to P239.9 billion, from P33.6 billion.
By sector, the information and communications technology and the power sectors got the lion’s share of the total at over 85 percent. Combined, investments in ICT and power amounted to P652.9 billion during the nine-month period.
Further, investments registered in manufacturing rose almost thrice to P63.5 billion, from P21.9 billion, while in the tourism sector leaped to P9.5 billion, from P1.2 billion.
Singapore topped all overseas sources with P170 billion in capital registrations. On the other hand, South Korea surged to second with P34.1 billion, bumping off the Netherlands with P9.2 billion to third, Thailand with P8.6 billion to fourth and Japan with P6 billion to fifth.
Trade Secretary and BOI Chairman Ramon M. Lopez attributed the over 100-percent increase in investments applied to the BOI to the country’s economic fundamentals, as well as to the government’s reform agenda. He argued such growth in capital inflow is but “a proof of the business sector’s strong confidence” in the Philippine economy.
Signifying this optimism, he said, is the jump in the share of foreign capital, which expanded to 31.4 percent in the January-to-September stretch, from last year’s 8 percent.
“We are particularly pleased to highlight that the share of foreign investments in BOI projects have increased from just 8 percent during January to September 2018 to already 31.4 percent this year,” Lopez said in a news statement.
On the other hand, Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo said he is determined to grow the tourism sector more, as it is “among the biggest job creators in our country along with manufacturing.” He added tourism will soon experience a boom highlighted by the 110 million domestic tourists recorded last year, already exceeding the objective of 89.2 million by 2022 stated under the National Tourism Development Plan.
“So we look forward to the coming years for a tourism boom with the recent announcement of a well-known brand—Marriott—to triple its portfolio by building 21 more hotels and the aggressive expansion of more affordable hotels, like RedDoorz, in the country,” Rodolfo said.
The largest project approved in September was the P130.31-billion 1,200-megawatt coal-fired power plant in Quezon to be built by Orion Pacific Prime Energy Inc. The BOI also authorized Petron Corp. to carry on with its P10.9 billion solid fuel- fired power plant in Bataan, as well as 6 Barracuda Energy Corp. with its P7.6 billion win power project in Samar.
The BOI also approved Cebu Air Inc.’s P1.7 billion operational lease of Airbus A320neo plane; Cavite Gateway Terminal Inc.’s P1.35 billion seaport terminal; and Starlite Gallant Ferries Inc.’s P1.1 billion domestic shipping project with home wharf in Batangas, which is slated to service the Cebu-Cagayan de Oro-Cebu routes.
Last year investments approved by the BOI expanded 47.08 percent to an all time high P907.2 billion on fourfold increase in capital inflow from manufacturing firms. It was the agency’s best showing in its 51 year history, besting the P616.8 billion it secured in 2017.
The BOI is eyeing to hit P1 trillion in investment registrations this year to follow through its two consecutive years of smashing the record books.