Investments up 27%, foreign equity rises 165% in first half

Investment pledges approved by the Board of Investments in the first half of 2018 increased by 27 percent propelled by the huge 165 percent jump in foreign equity contribution.

BOI data showed the agency approved 1238.9-billion investments in the January-June period this year or 27.1 percent higher than the 1188-billion approvals in the first year of 2017.

Of these total investment commitments, foreign equity contributions increased by 165 percent to P14.5 billion or triple that of the 15.5 billion registered in the same period last year.

According to BOI, Indonesia topped all foreign investors with 16.4 billion, followed by Japan with 12.6 billion, and China with 1880 million. The United States (1582 million) and Italy (1486 million) came in as fourth and fifth placers, respectively.

Trade and Industry Secretary Ramon M. Lopez, who is also BOI chairman, said the impressive investment registrations with the BOI is a concrete proof of the continued confidence of both foreign and local investors in the country.

He said that the strategic nature of investments registered with BOI and the strong confidence of investors is very much linked to the administration’s policies which are independent and pragmatic, but principled in addressing the critical social problems and bottlenecks to industry competitiveness such as infrastructure and power.

“The Philippine economy will continue to grow and create investment opportunities in infrastructure, manufacturing, and services. With this growth, we intend to have more inclusive businesses and ensure that economic gains are spread throughout the country,” Secretary Lopez added.

Trade Undersecretary and BOI Managing Head Ceferino Rodolfo stressed that the BOI investment figures is a significant lead indicator for the overall growth of FDIs. He cited the FDI figures released by the Bangko Sentral ng Pilipinas which showed a 40 percent increase in the first quarter of the year.

Undersecretary Rodolfo also said that the agency is still on track in achieving its target of 1680 billion for 2018, a 10 percent improvement from last year’s 1617 billion figure. “We expect big ticket projects to come in by the second half of the year. Foreign and domestic investors remain optimistic especially in view of the government’s ‘Build, Build, Build’ and Manufacturing Resurgence Programs,” he said.