Government hikes investment, export growth targets

MANILA, Philippines - The government has increased its 2010 investment and export growth targets to 20 percent after a strong first quarter performance.

In an interview, Trade and Industry Secretary Jesli A. Lapus said they have decided to revise their investment target to 20 percent from only 10 percent after a dramatic 256 percent growth in the first quarter of this year.

“I believe we will be able to grow both exports and investments by 20 percent by yearend,” Lapus told reporters. “We see the growth trend continuing.”

Lapus said that the threat of disaster will always be there but the government is confident that investments will continue to pour into the country.

Investment approvals for the first quarter soared by 255.87 percent to P63.95 billion. Combined investment approvals of the two attached agencies of the Department of Trade and Industry (DTI) went up to P63.95 billion for the first three months of 2010 from P17.97 billion during the same period a year ago.

Philippine Economic Zone Authority (PEZA) Director General Lillia B. De Lima said the agency approved P28.85 billion worth of investments from January to March this year compared to the P13.67 billion a year ago. De Lima said this represents a 111-percent jump in investment commitments.

Likewise, the Board of Investments (BOI) recorded a 717 percent increase in first quarter investment commitments to P35.1 billion from only P4.3 billion last year. BOI said that a total of 36 projects have been approved and generated 5,882 jobs. 

The top performing sectors for the period were manufacturing; real estate, renting and business activities; electricity, gas and water supply; transport, storage and communications.

Investor confidence remained high with foreign investment inflows continuing to reflect positive outlook to the country. Japan continued to be the country’s top trading partner together with the Netherlands as investors from these countries contributed the most investments in the first quarter of 2010.