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By Angelo S.
Samonte, Reporter
INVESTMENT
pledges for the Philippines rose by double digits to surpass last
year’s target, the Department of Trade and Industry said, adding
the growth reflected investors’ confidence in the domestic economy
due to the government’s improving fiscal position.
Commitments to
establish new or expand existing business ventures in the country
jumped to P274 billion, an 18.5-percent increase from the P231
billion in investment pledges the government registered in 2005.
Trade
Secretary Peter B. Favila said the Board of Investments (BOI) and
the Philippine Economic Zone Authority (PEZA) exceeded their
combined 2006 target of P254 billion, as actual pledges were 8
percent more.
The BOI
approved 231 projects valued at P190 billion, or a 16-percent
increase from the P163 billion seen in 2005.
PEZA approved
463 projects worth P84 billion, shooting up 25 percent from the P67
billion the year before.
Government
records also showed that these projects are expected to generate
135,069 new jobs, or a 14-percent increase from 2005.
“The
increase in investments last year manifests investors’ confidence
for the country as the government carries out improved fiscal
consolidation, which makes the business environment more
attractive,” Favila said.
Due to last
year’s stellar performance, the government raised its investment
target to a 12-percent expansion, higher than last year’s
10-percent growth goal.
“We are
optimistic that our remarkable investment performance in 2006 will
be sustained this year as inflow of capital in the infrastructure,
mining, ICT [information and communication technology], tourism and
health and wellness sectors comes in. The international business
community has recognized the country’s fiscal consolidation
efforts and upgraded our credit rating,” Trade Undersecretary
Elmer Hernandez, who is also the BOI’s managing head, said.
Hernandez said
investment performance on a per sector basis increased by 1,648
percent over the same period last year, with pledges for real state
up 113 percent; agriculture, by 541 percent; and ICT services, by 78
percent.
Local
businessmen made the most pledges, committing P182 billion, or 67
percent, during the period while foreign investors vowed to plunk in
P92 billion.
Investments in
infrastructure accounted for P124 billion, or 45 percent of the
total, while investments in the manufacturing and services sectors
made up P122 billion, or 44 percent. “These sectors contributed 90
percent of total employment,” Hernandez said.
Investments in
ICT services grew by 79 percent to P16 billion from P8.8 billion in
2005.
The 170
projects mainly engaged in software development and business-process
outsour-cing (BPO), are expected to generate 51,562 jobs once fully
operational.
The
country’s ICT sector is considered as one of the fastest growing
in Asia providing 300,000 jobs since 2000.
Favila said
the government will remain aggressive in promoting the country as an
investment destination at the international level, noting that
China’s Prime Minister Wen Jiabiao’s visit was a starting point.
“The Asean
Summit and the visit of Premier Wen would be a good start for the
country. The investment that the Chinese has committed will bring
much-needed capital to boost the country’s production and improve
its infrastructure,” Favila said, referring to the Philippines’
recent hosting of the 12 Association of Southeast Asian Nations
Summit.
China’s
initial business interest in the country is just a part of a bigger
package that it is willing to bring in, he said.
“The
successful Asean Summit in Cebu gives our Asian neighbors a glimpse
of the opportunities that the country can offer in both trade and
investments,” he added.
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