BOI, PEZA investments reach P21.046B in Q1

The Board of Investments (BOI) and the Philippine Export Zone Authority (PEZA) attracted a total of P21.046 billion in locator investments from Jan. 1 to March 31 this year.

The PEZA had earlier reported that it approved P14.519 billion in locator investments in the special economic zones.

The BOI, for its part, managed to attract P5.527 billion for the first quarter of this year.

The three-month investment inflows almost doubled in one month after posting P11 billion worth of investments in the first two months of 2006, posting a 2.29 percent increase compared to the same period last year.

The BOI generated P2.48 billion from P4.2 billion last year while the PEZA posted P8.44 billion, up from P6.59 billion or a 28 percent increase.

The biggest investment in the first quarter is primarily due to the capital infusion of China Oceanis Philippines Inc., an operator of special interest resort (P1.08 billion), and Ford Philippines Components Assembly Co., to engage in the manufacture and assembly of flexible fuel engine (P670 million).

China Oceanis Philippines plans to construct a leisure complex with an area of 12,000 sq.m. consisting of an oceanarium, a marine discovery park, promenade areas, a boardwalk and a bay pavilion.

The proposed project is 99 percent Singaporean-owned and one percent Filipino.

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 are still competitive at P260.01 million just for January 2006 compared to the same period last year of P208.18 million or an increase of 24.90 percent.

With its labor-intensive nature, job opportunities to be created by these IT projects totaled to 6,407.

The two call center projects alone approved this month are expected to employ 5,910 workers.

Trade and Industry Secretary Peter B. Favila said that investments would continue to pour in since there are many business opportunities in the country.

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

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

"With the Filipinos’ proven expertise in information and communication technology (ICT), the county 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 said.

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

Other major projects approved for 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).