THE number of investment projects registered with the Board of Investments (BOI) rose 25 percent in the first five months of the year, the BOI said.
“The value of registered investments in the first five months of the year increased by 25 percent, compared with the same period in 2016, growing from P137.3 billion to P174.5 billion,” Trade Secretary and BOI Chairperson Ramon Lopez said Friday.
The number of investment projects rose to 218 from 128. These projects are mostly high-impact, socially relevant and labor intensive, and are expected to generate 51,847 new jobs once operational.
This development is a testament to the country’s sound economic fundamentals and sustained investor confidence that bodes well with the BOI’s thrust to strengthen the Philippines’ position as preferred destination for foreign investment, Lopez said.
“It’s business as usual in the country,” he said. The current situation in Marawi and the recent Resorts World incident remain isolated cases and the administration is in firm control, the Cabinet official noted.
Investment prospects in Mindanao remain rosy, given the significant investment projects registered with the BOI in Region 10 which recorded a P1.382 billion worth of investment projects. Region 11 attracted P3.181 billion and Region 13 garnered P1.350 billion, Lopez said.
The projects in Mindanao are in the sectors of energy, housing, recreation, agriculture, food manufacturing, transportation and storage, and water supply and distribution.
“With the continued confidence of investors on the viability and profitability of doing business in Mindanao, we also send a positive signal on the stability of the peace and order situation in the island group,” Lopez said.
Region 4A recorded projects valued at P92.986 billion, followed by the National Capital Region at P35.863 billion and Region at P16.274 billion. There was also significant investment in Region 1 at P6.457 billion and Negros Island Region at P6.118 billion, according to the BOI.
The top sources of foreign investment are Singapore with P2.124 billion, the US with P483.25 million, the Netherlands with P445.22 million, Denmark with P320.84 million and India with P207.35 million.
The value of investments was attributed mainly to BOI-approved real estate projects with a combined value of P68.743 billion, followed by construction and PPP projects with P48.467 billion, energy and power projects with P28.311 billion, manufacturing projects with P15.749 billion and transportation and storage projects with P9.594 billion.
The BOI is on track to meet its P500-billion investment target for the year, as more projects expected to register once the 2017 Investment Priorities Plan (IPP) Guidelines is approved, said Trade Undersecretary and BOI Managing Head Ceferino Rodolfo.
“We are seeing a bullish first full-year local and foreign investment inflow with levels reaching at least P500 billion from P441 billion achieved in 2016,” Rodolfo said.
The new IPP Guidelines is envisioned to spread the benefits of a growing economy across nation, particularly in the countryside, Rodolfo noted.
In 2016, the manufacturing sector generated P49 billion of investment or 11 percent of the total last year.
The sector recorded an impressive 222.92-percent growth of P15.425 billion in the first quarter of 2017, from P4.776 billion a year earlier, the BOI said. Once operational, these projects are expected to generate at least 3,038 new jobs.
“The continued growth of the manufacturing industry is a clear indication of the efforts to boost growth of the sector through the Manufacturing Resurgence Program,” Rodolfo said.
The revival of the manufacturing sector is key to inclusive growth because it will generate much-needed employment and help the country tap into regional production networks, he added.