BOI-LISTED INVESTMENTS DOUBLE TO P645.3B IN H1
THE coronavirus pandemic has apparently failed to stop domestic firms from carrying out their business projects, as capital registered with the Board of Investments (BOI) for the first half more than doubled to P645.3 billion.
The BOI on Monday disclosed investments applied to it in the first semester posted a 112-percent surge from P304.4 billion in the same period in 2019.
A hefty chunk of the capital inflows was accounted for by locals, as foreigners treaded cautiously by stalling their business plans in the face of the pandemic.
Approved investments from local firms surged by nearly triple to P626.7 billion, from P235.6 billion, while those from investors abroad declined by 73 percent to P18.6 billion, from P68.9 billion.
Trade Secretary and BOI Chairman Ramon M. Lopez said the acceleration in investment figures is proof the economy is poised for recovery once the health crisis
eases. He added the BOI numbers also showed how business conditions are reverting to normal after roughly three months of lockdown, primarily in Metro Manila.
“While we expect a lower GDP output in the second quarter than the first quarter due to the [quarantine], there are already signs that the economy is humming back to life with industry conditions becoming stable,” Lopez explained in a statement.
With the figures, Lopez is confident the economy will recover by the third quarter of the year, as the country is now slowly reopening business establishments one by one. However, he warned there should still be strict observance of social-distancing protocols to help contain the spread of Covid-19 and lessen the chances that authorities would be forced to reimpose a lockdown.
By sector, construction brought in the bulk of the capital with a haul of P530.8 billion, followed by the transportation and storage industries with P86.7 billion.
Real estate captured P9 billion to add to the BOI’S investment figures for the first half. Also chipping in are the energy sector with P6.6 billion; manufacturing with P5.3 billion; and the tourism industry with P3.8 billion.
By source country, France is the top origin for foreign investments at P1.5 billion. The European nation is then followed by the Netherlands at P1.06 billion, Japan at P790 million, Malaysia with P601 million and India with P329 million.
“It is important to highlight the strategic nature of the projects and their important contribution toward building a more modern Philippines. The project proponents have reaffirmed their commitment to the immediate implementation of these infrastructure, ICT and transport projects—toward completion in the medium to long term,” Lopez said.
“Prior to approval of the bigticket projects, the BOI required them to provide written confirmation of their commitment,” the trade chief added.
Among the latest project approvals are: San Miguel Aerocity Inc.’s P530.8-billion airport project in Bulacan; Seaoil’s P654-million downstream petroleum project in La Union; Gigasol3 Inc.’s P2.4billion, 63-MW solar project in Central Luzon; Royale Cold Storage North Inc.’s P1.5-billion storage facility in Laguna; and Heineken International BV’S P1-billion brewery plant in Metro Manila.