Investment pledges grow on strong foreign capital inflow

Investment pledges registered with the Board of Investments (BOI) grew 105 percent in January-Sept. this year to ₱764.7 billion from ₱372.9 billion driven by power and IT projects with a strong flow of foreign capital.

BOI Managing Head Ceferino Rodolfo reported that for the month of September alone, BOI was able to register ₱155.7 billion worth of projects or 50.3 percent higher than the ₱103.6 billion in September 2018.

For the first nine months of the year, Rodolfo said that approved investment commitments from Filipino businesses reached ₱524.9 billion, a 54.7 percent increase from ₱339.3 billion in the same period in 2018.

Notably, he said, projects by foreign investors amounted to ₱239.9 billion which surged seven times or 613 percent higher than ₱33.6 billion a year ago.

Among foreign investors, Singapore continued to set the pace among all foreign entities with ₱170 billion in equity contribution. South Korea ranked second biggest with ₱34.1 billion. Netherlands placed third with P9.2 billion. Thailand contributed ₱8.6 billion, Japan at fifth place with ₱6 billion. US came a poor 7th at ₱2.4 billion.

In terms of destinations, investments have become more dispersed with the 98.2 percent of projects worth ₱750.9 billion locating outside the National Capital Region. Among the regions, CALABARZON (Region IVA) got the highest share with ₱354 billion worth of investments followed by Region III (Central Luzon) with is runner-up with ₱42.4 billion. NCR was still a favorite at third place with investments of ₱13.8 billion. Other projects went to Region VII (Central Visayas) with ₱10.1 billion and Region II (Cagayan Valley) with ₱10.05 billion.

Rodolfo said that all projects once these projects become operational, they are expected to generate 41,862 employment or 38.5 percent higher than last year’s figure of 30,218.

In terms of sectors, Rodolfo said that investments from the information and communications technology (ICT) and power sectors accounted for 85 percent of the total figure or ₱652.9 billion. This massive infrastructure buildup for more power and connectivity across the archipelago is critical towards addressing binding constraints to the Philippines’ competitiveness.