INVESTMENT projects approved by the Board of Investments (BOI) grew by 20.4 percent to P441.8 billion in 2016 from P366.7 billion in 2015, the second highest value of registered projects since 2000.
The registered projects valued at P466 billion in 2013 remains the biggest, according to government data.
However, the 20.4-percent growth exceeded the BOI’s 7-percent growth target for 2016.
Investor confidence remains the main driver of growing investment commitments to the country, Trade Secretary and BOI Chairman Ramon Lopez said on Friday, noting the presence of strong macroeconomic fundamentals and President Rodrigo Duterte’s 10-point socioeconomic agenda.
The Cabinet official said the President’s state visits in the early stages of the current administration also helped attract investors into the Philippines.
“With the investment missions that we are doing, investors have gained greater awareness of the Philippines’ strong and growing economy,” he said.
During the President’s state visits, he assured investors that the government will honor, secure and protect their investments, Lopez said.
The investment approvals in 2016 included 377 projects and were expected to generate 67,615 in new jobs when the projects become fully operational.
Eighty percent or P352.5 billion of the investment pledges was made by local companies, while 20 percent or P89.3 billion was pledged by foreign investors.
Foreign investment pledges this year are higher by 50 percent than the P59.5 billion in 2015. It was almost twice as much in the second semester compared with first semester—a clear indication of the growing interest and confidence of foreign investors in the country.
Topping the list of country investors were Australia at P30.5 billion. Singapore was second at P13.6 billion, followed by The Netherlands at P13.1 billion, Japan at P6.8 billion and South Korea at P6.4 billion. The rest is shared by various country investors.
Region 4A topped the list of regional recipients at P102.1-billion worth of projects. The National Capital Region was second at P95.3 billion, followed by Region 3 at P56.5 billion. A significant amount of investment, valued at P34.8 billion, was placed in the Cordillera Administrative Region, up by 40,528 percent from P85.6 million in 2015.
Topping the list of investment projects were power (P209.9 billion), real estate (P65.8 billion), construction (P62.3 billion), manufacturing (P49 billion) and transportation and storage (P23.4 billion). Investments in construction and manufacturing were among the fastest growing at 644.8 percent and 81.3 percent, respectively.
The real estate sector is expected to generate the most number of jobs at 32,055, followed by the manufacturing sector at 17,067.
Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said the growing manufacturing industry is clearly the result of the Manufacturing Resurgence Program.
“The revival of the manufacturing sector is key to inclusive economic growth because it will generate much-needed, decent employment and help the country tap regional production networks,” he added.