BOI investment pledges up 105% in first 9 months

Investment pledges recorded by the Board of Investments (BOI) soared more than two-fold in the first nine months of 2019.

In January to September, cumulative investments reached P764.7 billion, up 105% from P372.9 billion a year earlier.

“The sustained high growth of investments is a proof of the business sector’s strong confidence in both the Philippines’ economic fundamentals as further shown by the acceleration of the third quarter gross domestic product (GDP) growth to 6.2% and the reform agenda of President Rodrigo Roa Duterte,” Trade Secretary and BOI Chairman Ramon Lopez said in a statement.

The bulk of investments came from domestic sources at P524.9 billion, up 54.7% from P339.3 billion yearon-year.

Foreign investments amounted to P239.9 billion, up 613% from P33.6 billion.

Singapore topped all foreign entities with P170 billion in capital commitments.

South Korea is second with P4.1 billion. Netherlands

places third with P9.2 billion.

Also among the biggest foreign investors Thailand came up with P8.6 billion, Japan with P6 billion, and the United States with P2.4 billion.

Investment pledges outside the National Capital Region accounted for 98.2% of the total or P750.9 billion.

All projects once operational will generate 41,862 jobs, which is 38.5% higher than last year’s 30,218, according to the BOI.

In September alone, P155.7 billion worth of projects were approved, a 50.3% jump from P103.6 billion last year.

“We are particularly pleased to highlight that the share of foreign investments in BOI projects have increased from just 8 percent during January to September 2018, to already 31.4 percent this year,” Lopez noted.

The BOI said the influx of investments will continue amid Duterte’s policy of furthering relations with non-traditional partners.

The board cited the recent visit of a Russian Trade delegation in the country and President Duterte’s second official visit to Russia, which will pave the way for more business opportunities and closer economic cooperation between both countries.

Some of the biggest Russian companies have expressed interest in investing in the Philippines, led by Russian Deputy Minister Aleksey Gruzdev.

“Investments from the information and communications technology (ICT) and power sectors accounted for 85 percent of the total figure or P652.9 billion. This massive infrastructure buildup for more power and connectivity across the archipelago is critical towards addressing binding constraints to the Philippines’ competitiveness,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said.

“The development also complements the consistent growth of the manufacturing sector with P63.5 billion in approvals or a massive 190 percent growth from just P21.9 billion last year,” Rodolfo added.

Among the regions,

CALABARZON (Region 4A) is still on top with P354 billion in investment approvals.

Region 3 – Central Luzon is second with P42.4 billion.

NCR placed third with P13.8 billion.

Region 7 – Central Visayas with P10.1 billion and Region 2 – Cagayan Valley with P10.05 billion are also among the top regional performers.

Orion Pacific Prime Energy Inc.’s 1,200 megawatt (MW) coal-fired power plant in Quezon province is the biggest approved project for the month, the BOI said.

Other notable projects include Petron Corporation’s P10.9 billion solid fuel-fired power plant in Bataan, 6 Barracuda Energy Corp.’s P7.6 billion wind power project in Northern Samar, Cebu Air’s P1.7 billion operational lease of Airbus A320 NEO plane, Cavite Gateway Terminal Inc.’s P1.35 billion seaport terminal, and Starlite Gallant Ferries Inc.’s P1.1 billion domestic shipping project with homewharf in Batangas City to service the Cebu-Cagayan de Oro-Cebu routes.