BoI may miss P1.5-T target
The investment promotion agency said the numbers surpassed the previous record of P1.14 trillion generated in 2019 and is 59 percent higher than last year’s P729.1 billion level
Daily TribuneThe investment promotion agency said the numbers surpassed the previous record of P1.14 trillion generated in 2019 and is 59 percent higher than last year’s P729.1 billion level
The Board of Investments has announced that its approved investments have already reached P1.16 trillion this month. However, the agency fears it might fail hitting this year's P1.5-trillion target set by Trade Secretary and BoI chairperson Alfredo Pascual.
However, BoI indicated fears of failing to hit the P1.5 trillion target set to them by Trade Secretary and BoI chairperson Alfredo Pascual.
Based on official records, the BoI, as of 18 December 2023, already posted P1.16 trillion in investment approvals — the highest-ever level in the agency's 56-year history.
The investment promotion agency said the numbers surpassed the previous record of P1.14 trillion generated in 2019 and is 59 percent higher than last year's P729.1 billion level.
Further, BoI said that this also marks the third time in four years that it has surpassed the trillion-peso mark in investment approvals.
In 2020, the agency recorded P1.02 trillion, overcoming challenges posed by the Covid-19 pandemic.
The year's P1.16 trillion revenue comes from a total of 303 projects seen to generate some 47,195 jobs.
"The BoI's hitting P1.16 trillion for 2023 reaffirms strong investor confidence in the administration of President Ferdinand R. Marcos Jr., the agency's responsiveness to the Policy initiatives of the President and the effectiveness of the aggressive investment promotion activities under the 'Make It Happen in the Philippines' campaign," Pascual said.
"With this remarkable milestone, we are all the more optimistic about opportunities that lie ahead in 2024, with the BoI poised to further catalyze smart — and sustainability-driven investments in the country," he added.
Falling short of target?
To recall, the BoI initially set a P1-trillion investment approvals target for 2023 but Secretary Pascual hiked the target by 50 percent, after the government, during Marcos' past official foreign visits, received interest from investors expressing their intent to do business in the Philippines.
But as 2023 is coming to a close, the P1.16 trillion investment approval accomplishments are far from the target.
BoI managing head, Undersecretary Ceferino Rodolfo said there are three more projects worth about P350 billion that are currently being assessed.
"If they can comply with both the substantive and transparency requirements, they may be able to make it to the BoI Board and management committee deliberations on 28 December — our last for the year," said Rodolfo.
"While BoI is the private sector's strongest partner in promoting Ease of Doing Business in the country, we remain a prudent administrator of fiscal incentives," he said.
Top countries, industries
The BoI said Germany emerged as the leading source of foreign investments, contributing a substantial P393.28 billion, followed closely by the Netherlands (P333.61 billion), Singapore (P17.38 billion), and the United States (P3.38 billion).
In terms of destination domestic regions, Western Visayas was the top recipient of investments at P316.89 billion, with CALABARZON taking up second place at P211.89 billion.
Further, the Bicol Region (P162.92 billion), Eastern Visayas (P128.62 billion), and Ilocos Region (P122.18 billion) rounded out the top five regions.
Overall, domestic investment approvals reached P398.76 billion, making up 34 percent of total approved investments.
Foreign investment approvals surged to P763.22 billion, a 452-percent jump from P138.18 billion in 2022.
The Renewable Energy and Power sector continues to dominate the Philippine investment approvals landscape, boasting P968.14 billion in investments, representing a remarkable 137 percent increase from last year's P409.03 billion.