The country's premier investment promotion agency, the Board of Investments, has logged P1.26 trillion in investment projects in 2023, coining it as historic because of its 73-percent increase from the same period in 2022, surpassing the initial Php1.151 trillion Program Expenditure Classification target in IPA-approved investments for FY 2023 and the P995.59 billion target for BOI foreign and domestic investment approvals.
The BOI said that as of 18 December 2023, it reported crossing the trillion-peso mark with P1.16 trillion in approved investments.
The additional P100 billion investments in the latest reported P1.26 trillion were recorded following the BOI Board and Mancom deliberations on 28 December.
"This achievement surpasses our initial optimism when we set a target of P1.151 trillion. 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 Chairman Alfredo Pascual said.
The approved investments for this year 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 a 61 percent share of total approved investments.
Germany takes the lead as the top 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 from 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).
Domestic approvals
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 Php316.89 billion, marking an impressive 4,663-percent increase from 2022. CALABARZON secured second position at Php222.76 billion, while the Bicol Region (Php162.92 billion), Eastern Visayas (Php128.62 billion), and Ilocos Region (Php122.18 billion) completed the list of 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 said.
In BOI's 56-year history, the latest figure from 2023 marks the third occurrence in the past four (4) 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 last year's P1.5 trillion approved investments "aspirations" which were not hit.