Philippines: BOI hikes 2023 investment target to P1.5 trillion

• Feb 24, 2023

MANILA, Philippines — The Board of Investments (BOI) is raising its investments registration target this year to P1.5 trillion, driven by strong investment approvals in the beginning of the year and the robust pipeline of investment leads.

“Initially, we have set an already significant 37 percent growth target, or P1 trillion for 2023, but with the very healthy flow of investment project applications during the first month of the year, we are adjusting the target upwards to P1.5 trillion or more than double the actual 2022 figure,” Trade Secretary and BOI Chairman Alfredo Pascual said, referring to the P729 billion investment approvals in 2022.

“I thank the BOI for enthusiastically welcoming this challenge, and of course the president for his hard work in promoting the Philippines as a hub for sustainability and innovation-driven manufacturing and services in the region,” Pascual said.

Pascual reported that BOI-approved investments surged by 143 percent to P414.3 billion as of Feb. 9.

He said earlier that the agency still has potential investment leads of around P344 billion that will still be processed, adding that “more likely than ever, we may have 80 to 90 percent of the target even before the middle of the year.”

“We continuously work hard to ensure the actual investment application by companies in our robust pipeline of investment leads,” Pascual said.

“Specifically, these are in the areas of renewable energy, data centers, electric vehicle assembly and infrastructure, export-oriented manufacturing, and telecommunications, among others,” he added.

Pascual said the visits abroad of President Marcos have contributed significantly to the list of investment leads, including companies that did not participate directly in activities held during the visits but are strongly encouraged by the positive projection of the Philippines in the overseas trips.

The DTI chief said the increase in investments is proof that Marcos’ promotional visits abroad are effective, adding that there is a growing number of investors from around the globe, from Southeast Asia, the United States, Belgium, China and most recently Japan, that have shown strong interest in putting more investments into the country.

Of the year-to-date BOI-approved investments, Pascual said foreign investment approvals accounted for nearly 40 percent or P163 billion, a dramatic growth from the P249-million foreign approvals in the same period last year.

Based on latest BOI figures, the bulk of foreign capital is from Germany with P157 billion, followed by the Netherlands (P2.7 billion), Japan (P524 million), the United States (P509 million) and the United Kingdom (P194 million).

In 2022, BOI registered the largest approvals in 2022 among the investment promotion agencies (IPAs), accounting for P729 billion of the total P927 billion or equivalent to 76 percent of total IPA foreign and domestic-approved investments.

“BOI-approved foreign capital for barely the first two months of 2023 has already reached 56 percent of the total figure for all IPAs last year. This year looks very promising with heightened prospects and through our collective efforts, we are on course to surpass the 2022 figure way ahead of time,” Pascual said.

Meanwhile, BOI figures show that year-to-date domestic investment nods accounted for around 60 percent of the investment approvals at P251.3 billion, a 47.6 percent rise from P170.3 billion last year.

In terms of regional dispersion, investments in Western Visayas led the way with P293.3 billion, and CALABARZON took up second place with P111.7 billion. Eastern Visayas (P3.5 billion), Central Luzon (P3 billion), and National Capital Region (P783 million) completed the top five regions.

Moreover, the renewable energy/power sector remains dominant with P398.7 billion in approvals to date, up 138 percent from the same period last year.

Manufacturing is also on the upswing with P12.3 billion in approvals, up 13,982 percent from just P87 million in the same time frame in 2022.

Administrative services (P1.3 billion), agriculture (P901 million), and transportation (P847 million) also make up the biggest sectors.

Among the top projects approved for January is German-owned wpd Philippines Inc.’s P392 billion offshore wind farm located in Cavite, Negros Occidental and Guimaras, which will provide greener power solutions to local communities and businesses.

“We aim to be a global hub for sustainability and green projects that align with the national government’s policy of promoting cleaner sources of energy, for which full foreign ownership is now allowed under the amended implementing rules and regulations of the Renewable Energy Act,” Pascual said.

Source: https://www.philstar.com/business/2023/02/24/2247150/boi-hikes-2023-investment-target-p15-trillion-