Philippines: BOI investments rise 25% in first 4 months
MANILA, Philippines – Investments approved by the Board of Investments (BOI) likely soared 25 percent in the first four months this year as investors continue to position for the “golden age” of infrastructure in the country.
BOI managing head Ceferino Rodolfo said yesterday project approvals from January to April are tracking an increase of at least 25 percent compared to the same period last year.
“We’re expecting a 25-percent growth for January to April based on the pipeline we have. It may even increase by another one percent,” he said.
Rodolfo said growth is being driven by the influx of investments in construction and infrastructure.
“There is also a lot of manufacturing projects, particularly those which are innovation driven,” he said.
“What we have been noticing is the growth of investments over from small and medium enterprise which are innovation led. For instance, we recently registered a project (for the manufacture of) prosthetic legs and customized shoes for particular clients. We’ve also seen registration for garments, for instance a garments company supplying leading brands from Europe,” Rodolfo added.
Investment pledges approved by the BOI in the first quarter reached P67.97 billion, up 10 percent from P61.94 billion in the same period last year.
These commitments came from a total 122 projects which are expected to generate 36,115 new jobs once operational.
According to the BOI, bulk of the investment pledges in the first three months came from real estate (housing and construction) projects with a combined investment amount of P44.36 billion, followed by manufacturing projects with P15.43 billion.
For the full year 2017, the BOI is eyeing P500 billion in approved investment pledges a 13.7-percent jump from P441 billion in 2016.
With the approval of the 2017 Investments Priorities Plan designed to spread the benefits of the country’s fast economic growth to the countryside, Rodolfo said the BOI sees a robust growth of manufacturing investment projects this year.
“The continued growth of the manufacturing industry is a clear indication of the efforts to boost growth of the sector through the Manufacturing Resurgence Program,” said Rodolfo, adding the revival of the manufacturing sector is key to inclusive economic growth since it will generate much-needed employment and help the country tap regional production networks.