BOI, PEZA investment pledges soar 53% to R183 billion in Q1

Combined investment pledges of the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) surged 53.2 percent in the first quarter this year to R182.83 billion as against R119.31 billion during the same period last year.

Data from the Philippine Statistics Authority showed that of the total amount, the BOI approvals accounted for 83.2 percent or R152.12 billion while 16.8 percent or R30.72 billion have been registered with PEZA.

The biggest share was committed to electricity, gas, steam & airconditioning supply at R104.35 billion (or 57.1%). This is higher by 2,074.5 percent compared to its level last year.

Real estate activities came in second with R27.24 billion (or 14.9%), followed by manufacturing with R23.85 billion (or 13.0%), water supply, sewerage, waste management with R13.87 billion (or 7.6%), and transportation and storage with R7.01 billion (or 3.8%).

Japan was the biggest country source of the BOI-PEZA approved foreign investments, with R7.86 billion (or 57.2%), which is 1,185.2 percent higher than its R0.61-billion investment commitment during the same quarter last year.

The United Kingdom came in next with R1.54 billion, followed by the Netherlands with R0.88 billion, Singapore with R0.56 billion, and USA with R0.45 billion.

In 2017, both agencies approved a total of R854.35 billion worth of investment pledges, the highest since 2012. These government investment bodies grant tax and fiscal incentives to investors. Tax and fiscal perks have been considered as key to attracting foreign investments into the country.

Both agencies also registered R660.22 billion in 2016 and R661.83 billion in 2015. They also approved R634.24 billion worth of investments in 2014. In 2013, these agencies registered R742.16 billion and R672.30 billion in 2012.