RE deals surge fuels BoI upswing
Most of these have been coming from the Netherlands, Japan, Singapore and the US, consistent with foreign investment approvals in 2023
Daily TribuneMost of these have been coming from the Netherlands, Japan, Singapore and the US, consistent with foreign investment approvals in 2023
New business projects in the first five months posted a 14 percent increase to P640.22 billion versus P562.90 billion recorded a year ago.
The latest figure was the highest for a 5-month approval in BOI’s 57-year history, the Board of Investments (BoI) reported over the weekend.
Broken down, the BoI said that from January to May 2024, foreign investments approved reached P114.37 billion, while domestic investments totaled P525.85 billion.
These projects are expected to create 13,871 jobs for Filipinos.
Most of these have been coming from the Netherlands, Japan, Singapore and the US, consistent with foreign investment approvals in 2023.
The BoI, the premiere investment promotion arm of the Department of Trade and Industry, said the positive trend can be attributed to various factors, including the investment leads generated from the presidential visits of President Ferdinand R. Marcos Jr. since 2022.
“These visits, along with the efforts of the BoI and other Investment Promotion Agencies (IPAs), have been instrumental in converting potential investment interests into actualized projects and foreign direct investments (FDIs),” said Trade Secretary Alfredo Pascual, the chairperson of the BoI.
Switzerland emerged as the leading source of foreign investments contributing P62.89 billion, followed by the Netherlands (P39.33 billion), Singapore (P6.07 billion), China (P1.53 billion), Taiwan (P1.28 billion), and the United States (P953 million).
In terms of domestic investment destinations, CALABARZON notched the top spot with P538.52 billion, followed by the Ilocos Region at P28.49 billion. Central Luzon received P24.42 billion, the Bicol Region P13.28 billion, and Western Visayas P8.54 billion, completing the top five regions.
RE investments dominate
The Renewable Energy and Power sector continues to dominate the Philippine investment approvals landscape, with a total of P607.47 billion in investments, marking a significant 20.73 percent increase from the previous year’s P503.18 billion.
Meanwhile, the Agriculture, Forestry, and Fishing sectors exhibited robust growth, with approved investments amounting to P9.56 billion.
‘We aspire to transform the Philippine economy and become the regional hub for smart and sustainable manufacturing and services and these data show that we are on the right track.’
The Real Estate sector also made a notable contribution, securing P8.17 billion in approved investments. Additionally, the Transportation and Storage sector saw projects valued at P4.61 billion, while the Manufacturing sector attracted P4.36 billion in investments.
In addition, the Financial and Insurance Activities sector recorded the highest growth rate, surging by 236 percent from P67.82 million last year to P227.95 million this year.
Trade Secretary Alfredo Pascual, who also sits as the BoI chairperson, stated that the continuous increase in investment approvals aligns with a surge in FDIs for the first quarter of 2024, as the Bangko Sentral ng Pilipinas (BSP) recorded a 42.07 percent year-on-year increase in net inflows, reaching $2.97 billion from January to March 2024, up from $2.09 billion from the same quarter in 2023.
Pascual highlighted that the BSP statistics and BoI’s approved investment data reflect sustained investor trust and confidence in the country and its workforce.
The said numbers indicate the fully realized investments recorded amid the global challenges of rising inflation and economic uncertainties.
“We aspire to transform the Philippine economy and become the regional hub for smart and sustainable manufacturing and services and these data show that we are on the right track. The upward trajectory in FDI net inflows and approved investments follows the pattern of commitments from various trade missions initiated by IPAs, including the goodwill fostered through the President’s business trips abroad,” he said.
“These efforts have been followed through by registration approvals, and what we are seeing now are tangible results of these concerted government efforts,” Pascual underscored.
