BOI, PEZA investments hit P11B in first 2 months

The Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) approved total investments worth P11 billion in the first two months of 2006, a slight increase compared to the same period last year.

While the BOI generated P2.48 billion in investments, lower than the P4.2 billion last year, PEZA made up for the slack as it posted P8.44 billion in committed investments, up 28 percent from P6.59 billion. The jump in investments is primarily due to the capital infusion of China Oceanis Philippines Inc., an operator of special interest resort (P1.08 billion), and Ford Philippine Components Assembly Co., engaged in the manufacture and assembly of flexible fuel engine (P670 million).

China Oceanis plans to construct a 12,000-square meter leisure complex consisting of an oceanarium, a marine discovery park, promenade areas, a boardwalk and a bay pavilion. The company is owned by 99 percent Singaporean and one percent Filipino equity.

On the other hand, Ford Philippines plans to come out with a flexible fuel engine within one year in response to government’s move to encourage the use of alternative fuels and veer away from costly imported crude oil.

Investments in the IT sector, meanwhile, remains competitive at P260.01 million in January alone compared to P208.18 million a year earlier. With its labor-intensive nature, job opportunities to be created by these IT projects could reach up to 6,407. Two call center projects alone approved this month are expected to employ 5,910 workers.

Trade and Industry Secretary Peter B. Favila said investments would continue to pour in as a result of improving business prospects in the country.

"Now that the state of emergency has been lifted we expect renewed interest from businesses to explore and expand their operations in the country," Favila said.

He added that "the uncertainty caused by recent events is now cast off, thus, our investment promotion will be much easier as we present the Philippines as a preferred business destination."

"Paramount to the government’s agenda is the development of the country and it is business that is a major stakeholder in this endeavor," Favila said.

"With the Filipinos’ proven expertise in information and communication technology (ICT), the country is now in the best position among Asian nations to gain a larger share of international electronic services contracts to help boost its economy", Trade Undersecretary and BOI managing head Elmer C. Hernandez added.

"Based on trends on outsourcing services, Asia would be a source of significant outsourcing operations from the United States and Europe," he pointed out.

Other major projects approved during the period include Procter and Gamble Philippines Inc. for the manufacture of baby diapers(P356 million); LogiCall for call center operations (P147 million) and Philippine Auto Components for the manufacture of cluster parts and components (P118.5 million).