BOI investments reaches P645-B in first half 2020

THE Philippine Board of Investments (BOI) recorded P645.3 billion of approved investments in the first six months of the year, bouncing back strongly with a 112 percent surge from just P304.4. billion in the same period in 2019.

“The robust bounce back despite the pandemic shows the country’s resilience as we begin the transition to easing out the restrictions after a prolonged lockdown of the economy. While we expect a lower GDP output in the second quarter than the first quarter due to the ECQ, there are already signs that the economy is humming back to life with industry conditions becoming stable,” Trade Secretary and BOI Chairman Ramon M. Lopez said.

Lopez cited that the rebound in investments is expected since the Philippines is still considered one of the top investment destinations with strong economic fundamentals, and direct investments always have a medium to long-term horizon in their investment decisions.

Lopez added that he expressed optimism that the economy will recover by the third quarter with a positive growth as most of the country is expected to have a relaxed form of community quarantine although he acknowledged that strict social distancing and health protocols will still remain in effect to contain the spread of Covid-19.

Approved investments among domestic sources went up to P626.7 billion, surging by 166 percent from P235.6 billion from the same period last year. In contrast, approved figures by foreign businessmen reached P18.6 billion, a 73 percent deceleration as compared to P68.9 billion in the same period a year ago.

Bulk of the investments are on construction or infrastructure with P530.8 billion. The transportation and storage sectors remain strong with P86.7 billion. Real estate posted P9 billion worth of investments. It is followed by investments in renewable energy/power (P6.6 billion), manufacturing (P5.3 billion), and tourism accommodations (P3.8 billion)

“A total of 96 project got the green-signal and upon operations, it will generate 27,082 jobs, a jump of 57.3 percent from 17,214 in the same period last year,” Vice Chairman and BOI Managing Head Ceferino S. Rodolfo said.

France remains in the driver’s seat among foreign investors with P1.5 billion approved investments. It is followed by Netherlands (P1.06 billion), Japan (P790 million), Malaysia (P601 million), and India (P329 million).

“It is important to highlight the strategic nature of the projects and their important contribution towards building a more modern Philippines. The project proponents have reaffirmed their commitment to the immediate implementation of these infrastructure, ICT and transport projects—towards completion in the medium-to long-term term. Prior to approval of the big-ticket projects, the BOI required them to provide written confirmation of their commitment,” Lopez said.

Regionally, Central Luzon had the most number of investments with P538.1 billion; NCR is second with P85.4 billion; Calabarzon is third with P9.2 billion; followed by Davao Region (P4.6 billion) and Northern Mindanao (P3.2 billion).