Investments up 141% to P204.77B in January-May

Combined investments approved by the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) soared  by 141 percent to P204.77 billion during the first five months of the year from P85.11 billion a year ago.

The amount is expected to generate employment for 90,452 workers.

For  May alone, investment approvals grew by 703 percent to  P92.22 billion from P11.48 billion.

“This strengthens our resolve to continuously provide a business-friendly environment to investors. The DTI shall continue to support the initiatives undertaken by the National Competitiveness Council whose vision is to establish a competitive Philippines by 2020 and instill the culture of excellence among Filipinos,” Trade Secretary and BOI Chairman Peter B. Favila said.

He said the impressive performance is largely due to the implementation of competitiveness measures. These measures are likewise instrumental in moving the Philippines five notches up to the 40th place in the World Competitiveness scoreboard.

Favila expressed confidence that investments into the country will continue to be sustained for the rest of the year.

The top investment sectors are manufacturing with P78.17 billion; electricity, gas, and water with P61.01 billion; real estate, renting and business activities, P28.45 billion; infrastructure/industrial service, P11.14 billion; and transport, storage and communication P7.53 billion.

The biggest growth rate was seen in the storage and communication sector with 638 percent followed by electricity, gas and water which grew by 374 percent; manufacturing 79 percent; and renting and business activities, 54 percent.

Among the major investments include the naphtha cracker project of JG Summit Olefins Corp. worth P34.38 billion; the power generation projects of Global Business Power Corp. (two projects each worth P22.14 billion and P17.79 billion) and KEPCO SPC Power Corp. (P19.95 billion).

Others were the P6.15 billion coal mining expansion project of Semirara Mining Corp., the refleeting project of Cebu Air Inc. P5.52 billion; and two infrastructure port projects (Rhizhao Development Corp. worth P4.50 billion and International Container Terminal Services, Inc. worth P4.46 billion).

A major number of big ticket projects in the manufacturing and IT services sectors are to be located in the export zones and IT parks and buildings of PEZA.

 Foreign investors account for 34 percent of total investments while Filipinos committed P135.47 billion, or 66 percent of the total approved investments.

 Top three foreign investors include Koreans P21.24 billion, British P20.66 billion and Americans P9.05 billion.