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By Katrina Mennen A. Valdez, Reporter
INVESTMENT pledges registered with the Board of
Investments (BOI) and the Philippine Economic Zone Authority (PEZA)
last month surged by more than a half, the Department of Trade and
Industry (DTI) said.
Trade Secretary Peter B. Favila, who chairs both
incentives-giving agencies, told reporters that combined commitments
by investors seeking tax and other perks from the BOI and the PEZA
rose by 53 percent to P7.7 billion at end-January.
These investments cover 65 projects that promise
to create 7, 800 jobs.
“This development proves that the Philippines
is still seen as the best investment destination in the region,”
Favila said.
The trade secretary said the bulk of the
investments will be made in the shipping, housing, electronics and
information and technology sectors.
At the government’s yearend economic briefing,
Favila said investments are expected to grow 12 percent for the next
three years. This is less than half the 28 percent increase seen
last year.
“This conservative investment growth rate is
made since [we] have factored in the possible economic slow down,”
he said.
“The 12 percent investment goal is the lowest
possible increase that [we] could reach, since [we] are working out
to surpass [our] own investment target,” he added.
Favila said BOI and PEZA are projected to
attract P391 billion this year and P438 billion and P490 billion for
2009 and 2010, respectively.
Last year, the two agencies’ registered
investments amounted to P353.2 billion, of which the BOI approved
P218.5 billion and PEZA, P133.732 billion.
The trade secretary said that mining investments
for this year may reach $1.6 billion to $2.2 billion with an
estimated 7,950 to 9,450 jobs likely to be created. For next year,
mining would bring in $0.8 billion to $1.4 billion and for 2010,
another $5 billion.
For electronics sectors, the government sees
$1.3 billion investments this year and $1.4 billion and $1.5 billion
for 2009 and 2010, respectively. In the off shoring and outsourcing
industry, commitments may reach P41 billion until 2010.
“Investments will be sector-focused and
company-directed, focusing on the top 500 corporations of target
markets, particularly Japan, Taiwan, China, Singapore, India,
Australia and Korea,” Favila said.
Trade Undersecretary Elmer C. Hernandez, who is
also BOI managing head, said the Philippines is in the race to win
majority of the huge “wildcard” investments that will be dumped
in Asia, adding the country is competing with neighbors over these
investments.
“The mere fact that [the investors] have
included the Philippines on their shortlist of destinations could
only mean that [we] are doing things right,” Hernandez said.
These are one-time strategic investments that
can be located in one country, which explains the willingness of
host governments to grant full incentives for them.
“All things being equal, the country will have
to offer full incentives to win these kinds of projects, if it is
the only competitive edge left,” Hernandez said.
Some of the wildcard investments include a new
player in the auto industry, which is set to pour in its single
biggest investment in Southeast Asia for its engine manufacturing
plant and a steel backward integration plant that is expected to
support the booming shipbuilding industry in the country.
-- With Darwin G. Amojelar
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