Philippines: BOI investments up 31% in Jan-April

• Apr 26, 2017

MANILA, Philippines –  Investment pledges approved by the Board of Investments (BOI) jumped by nearly a third in the first four months of the year.

BOI managing head Ceferino Rodolfo reported yesterday that the BOI had approved P154 billion worth of projects from January to April, up 31 percent year on year.

“This is equivalent to 46,018 jobs to be generated compared to 16,366 generated last year or a growth of 181 percent.  Number of projects reached 194 compared to 101 over the same period last year or a 92 percent increase,” Rodolfo said.

According to the BOI, two more projects valued at P6.5 billion are pending the agency’s approval this week. These two projects will bring total pledges approved for the first four months to P160.5 billion, an increase of  36 percent.

“With sustained investor confidence in the country’s macroeconomic fundamentals and the early approval of the 2017 Investments Priorities Plan, we expect a more robust if not, an unprecedented growth in investments this year.  We are eyeing a P500 billion investment mark by the end of 2017,” Rodolfo said.

The BOI official said the growth in investment pledges was driven by more infrastructure, power, manufacturing, and housing and real estate projects.

“For infrastructure, the biggest contributor was the P48.5 billion CALAX (Cavite-Laguna Expressway)  project. For power, there are new projects in Negros Occidental, Pangasinan, Bulacan and Isabela. These are mostly solar and biomass,” he said.

Manufacturing projects, on the other hand, accounted for P15.4 billion of the total project approvals.  Chemicals formed bulk or P13.6 billion of the manufacturing projects approved.

“April is consistent with the January to March growth driven by infrastructure and power but we foresee that as we release the guidelines for the IPP, that would create additional investments in manufacturing,” Rodolfo said.

In terms of nationality, majority of the projects registered with the agency will be undertaken by local investors, representing about P150 billion.

“What we are seeing now is domestic investors infusing investments,” he said.

Meanwhile, projects to be undertaken by foreigners are valued at P4 billion. Major country sources are Singapore, US, Netherlands, Denmark, India, and the UAE.

Source: http://www.philstar.com/business/2017/04/26/1693838/boi-investments-31-jan-april