MANILA, Philippines - The Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) have not revised their investment target for the year saying that there will be flat growth for investments this year.
Investment approvals from the two attached agencies of the Department of Trade and Industry (DTI) showed that investments from January to June was P79.67 billion. This is way below the P280.81 billion recorded during the same period in 2008.
The approved investments involve 340 projects and are expected to provide direct employment to 55,533 workers.
Favila said that after consulting with the business sector, they decided that there is no need to revise the target yet.
Favila said that the electronics industry is expected to do well in the fourth quarter. He said the only problem is the automotive sector.
However, PEZA Director General Lilia De Lima said that they will not be meeting their export target for the year. De Lima said that the American market still has not recovered from the crisis that is why they will have a hard time meeting export target.
In order to attract new investors, Favila said they will be appealing to foreign firms to come into the country.
“We are heeding the call of the private sector for proactive, concerted international promotion efforts supported by a regulatory environment that cultivates the country’s competitiveness and attractiveness as a destination for foreign capital,” Favila said during the economic briefing yesterday.
In fact, he said they are implementing ways on how to make the country more competitive.
“Investor aftercare is another crucial factor in our overall strategy. The Retention, Expansion and Diversification (RED) campaign will ensure that while we are tapping new markets, we are also encouraging existing businesses to remain here or better yet, to expand their interests in the country,” he added.
The secretary admitted that improvement in investment conditions may be slow but a modest growth may be seen as the world economy begins to pull out of a recession as shown by positive signs of generally improving economic and financial conditions in most economies worldwide.
As proof that there is already improvement in investments, Favila said that approved investments for the two agencies for the second quarter of 2009 grew 243 percent, quarter-on-quarter, from the first quarter level of P17.98 billion to P61.70 billion in the second Quarter.
Favila stated that from a slow start, as the country reels from the effects of the global economic slowdown, the Philippines might yet meets its investment target of zero percent.