Foreign investment approvals witnessed a 455-percent spike with P766.97 billion, compared to P138.18 billion in 2022
Trade Secretary Alfredo Pascual (fifth from left) joins other officials of the Department of Trade and Industry and reporters covering the DTI beat, during the 2024 Thanksgiving at the Board of Investments in Makati City on Friday, 5 January. | Photograph by Raffy Ayeng for the Daily Tribune @tribunephl_raf
Main investment promotion agency, the Board of Investments, or BoI, has logged P1.26 trillion in investment projects in 2023, which was 73 percent more from a year ago, surpassing the initial P1.151-trillion Program Expenditure Classification target in IPA-approved investments for 2023 and the P995.59-billion target for total investment approvals.
BoI records showed as of 18 December 2023, it reported crossing the trillion-peso mark with P1.16 trillion in approved investments.
"This achievement surpasses our initial optimism. To far exceed this mark, reaching P1.26 trillion, is a clear testament to the growing confidence investors place in fostering their businesses' growth within the Philippines," Trade Secretary and BoI chairperson Alfredo Pascual said.
The approved investments comprised 311 projects, marking a 28-percent increase from the previous year.
Further, the projects predominantly centered on renewable energy, telco infrastructure, and the export of copper, gold and other metals. Upon full operations, the projects are expected to produce 49,030 jobs for Filipinos.
The Renewable Energy and Power sector emerged as the top-performing sector with P987.12 billion, a 141-percent surge from P409.02 billion in 2022.
This was followed by the Information and Communication sector, securing a total of P96.04 billion in approvals, followed by mining with P79.19 billion, manufacturing with P22.05 billion, and infrastructure (toll roads) with P21.47 billion in investments.
Foreign investment approvals witnessed a 455-percent spike with P766.97 billion, compared to P138.18 billion in 2022.
Underlining the government's commitment to attracting FDI to the country, foreign investments claimed 61 percent share of total approved investments.
Germany was the biggest source of foreign investments for 2023, contributing P393.28 billion — a staggering 1.28 million-percent increase from the previous year — mainly in wind energy projects of WPD Philippines Inc.
Trailing behind were the Netherlands (P333.61 billion), Singapore (P21.45 billion), the United States (P3.55 billion), and the British Virgin Islands (P2.13 billion).
Economic spark plug
On the other hand, domestic investment approvals reached P493.23 billion, taking up a 39 percent share of total approved investments.
Western Visayas was the top recipient of investments at P316.89 billion, or a 4,663 percent increase from 2022.
CALABARZON was at second position with P222.76 billion, while the Bicol Region (P162.92 billion), Eastern Visayas (P128.62 billion), and Ilocos Region (P122.18 billion) rounded up the top five regions.
"The surge in approved investments in 2023, particularly in foreign investments, aligns with BoI's strategic efforts to bring in more economic activities in the country as part of the investment promotion initiatives of the Make It Happen in the Philippines campaign."
"As we close this exceptional year, we are confident that the momentum gained will propel us even further in 2024," Trade Undersecretary and BoI managing head Ceferino Rodolfo.
In BoI's 56-year history, the latest figure from 2023 marks the third occurrence in the past four years the agency has surpassed the trillion-peso mark in investment approvals. The previous record was set in 2020 with P1.02 trillion amid the challenges posed by the Covid-19 pandemic, closely followed by P1.14 trillion recorded in 2019.
Next year, Pascual said that the BoI is aiming for P1.1 trillion in approved investments, adjusting from the Year 2023 P1.5 trillion approved investments "aspirations," which were not hit.
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