Philippine Daily Inquirer

BOI IN­VEST­MENT PLEDGES UP 19% AS OF MAY, HIT P207B

- By Roy Stephen C. Canivel @roy­canivel_INQ

In­vest­ment pledges reg­is­tered un­der the Board of In­vest­ments grew 19 per­cent in the first five months of the year, data showed.

This trans­lates to P207 bil­lion worth of pledges from Jan­uary to May, up from P174 bil­lion in the same pe­riod last year.

BOI, how­ever, did not give its year-on-year growth for the month of May alone.

Pledges dropped in March and April from year-ago lev­els.

Pledges from both for­eign and lo­cal in­vestors grew yearto-date, with do­mes­tic busi­nesses ac­count­ing for around P200 bil­lion as of May.

BOI also said for­eign in­vest­ment pledges grew 29 per­cent to P7 bil­lion from P5.38 bil­lion pre­vi­ously.

This came amid talks of a tax re­form push that will ra­tio­nal­ize the tax in­cen­tives of- fered by the gov­ern­ment, a pol­icy shift which has caused the de­cline in pledges for the Philip­pine Eco­nomic Zone Author­ity (Peza), which caters to ex­port-ori­ented firms.

BOI Man­ag­ing Head Ce­ferino Rodolfo said the in­crease in for­eign in­vest­ments pointed to “op­por­tu­ni­ties” to get for­eign com­pa­nies to serve the do­mes­tic mar­ket, “if only the rel­e­vant in­cen­tive tools are avail­able.”

“It is in this con­text that we are sup­port­ive of the pro­posed TRAIN Pack­age 2, in or­der to make our in­cen­tive regime more rel­e­vant and re­spon­sive to needs of in­vestors in pri­or­ity strate­gic and so­cially rel­e­vant in­dus­tries,” said Rodolfo, who is also trade un­der­sec­re­tary.

The in­crease in lo­cal in­vest­ment pledges in the first five months of the year, mean­while, was driven by power and en­ergy projects and trans­porta­tion and stor­age.

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