The P1.5 trillion investment approval target of the Board of Investments for this year is deemed attainable, as its first semester investment nods already reached P950 billion amid global economic uncertainties.

On Thursday, the BoI said from January to June 2024, approved investments reached P950 billion ($16.7 billion), 36 percent higher than the total approved investments made during the same period last year.

The BoI said 30 percent of the achieved approvals are foreign investments amounting to P 286 billion ($5 billion) — the highest first-semester BoI approvals in its 57-year history.

Although a 37 percent drop in net Foreign Direct Investment (FDI) inflow was reported in April by the Bangko Sentral ng Pilipinas (BSP), Trade Secretary Alfredo Pascual said he remains optimistic given the buildup in the investment pipeline.

"The April decline in FDI is viewed as a temporary setback, primarily influenced by global economic headwinds," stated DTI Secretary Fred Pascual. "Our confidence in the Philippine economy remains unshaken, supported by a 19 percent increase in FDI over the first four months of the year compared to last year. We are also banking on the investment pipeline built from the BOI's high level of foreign investment approvals."

RE projects still no. 1 

Renewable energy investments significantly dominate the investment landscape, with the Electricity, Gas, Steam, and Air Conditioning Supply sector drawing 96.3 percent of the total approved investments.

Among these was a P297 billion investment by Ahunan Power Inc. in CALABARZON (Region 4A).

In May 2024, several large-scale BoI-approved projects further energized the investment landscape. Solar Solutions Inc. led a substantial P 150 billion initiative in CALABARZON to expand solar energy capacity.

This was followed by BlueWave Energy, with a P 120 billion investment approval for Central Luzon, focusing on offshore wind energy development.

Region IVA (CALABARZON) captured the highest regional investment approval at P 592 billion ($10.4 billion), a 262 percent increase from the previous year.

Other regions, including Western Visayas (Region VI) and Central Luzon (Region III), also saw vital investment approvals.

Additionally, May 2024 witnessed approvals for substantial foreign equity investments.

Energy Global International from Germany made a notable P85 billion investment in a new manufacturing facility in CALABARZON.

Similarly, the French firm Hydropower Ventures got approval for a P 75 billion investment in hydroelectric power developments in Northern Mindanao.

Swiss leads foreign investors

The investment pattern also reflects notable international confidence, particularly from Switzerland and the Netherlands.

Switzerland is the leading foreign investor, with significant projects such as wind energy developments by Jet Stream Windkraft Corporation and Triconti Southwind Corporation, each investing approximately P 115 billion ($2 billion).

The Netherlands features significantly with investment approvals in the energy and manufacturing sectors, underscoring strong confidence in the Philippine economic environment.

The DTI also reported substantial growth in other sectors, such as Agriculture, Forestry, Fishing, and Real Estate, demonstrating the economic diversity and vibrancy across various sectors.

"Our strategic initiatives are vital for ensuring the Philippines attracts and retains global investments. We are committed to creating an enabling environment that supports business growth and development across various sectors," added Secretary Pascual.

"As we navigate the global economic landscape, our strategic focus on enhancing the ease of doing business and providing robust support for high-potential sectors is more crucial than ever. These efforts are pivotal in ensuring the Philippines remains a top-tier investment hub in Asia," Pascual said.