Foreign investment pledges rise 249% to P3.2 B in Feb

MANILA, Philippines - Foreign investment commitments last February 2012 rose 249 percent to P3.22 billion from P924 million in the same period last year, the Board of Investments (BOI) announced late Friday.

Among the foreign investors in the Philippines, Thailand ranked highest for the period with investments amounting to P2.2 billion; followed by Japan, P703 million, and Taiwan and the United States, P182 million.

A total of 24 projects were approved between January to February, same as last year. The BOI said total projects approved for January to February 2012 amounted to P12.4 billion, 11.7 percent higher than the P11.1 billion average investments for January to February in the last five years.

Total committed investments in February amounted to P8.63 billion, lower than the P25 billion last year as several firms are finalizing their applications for their projects.

“There are 240 more projects in the pipeline for BOI approval as of February this year,” Trade Undersecretary and BOI managing head Adrian Cristobal Jr. said, adding “our February figures show more jobs for every peso of investments.”

The projects are expected to create 3,250 jobs once operational, an increase of 24 percent compared to 2,335 projected jobs for February 2011 approvals.

The manufacturing sector posted the biggest share of total approvals, 44 percent or P5.50 billion.

Other sectors with large contributions are real estate, P3.68 billion; electricity, gas, steam and air conditioning supply, P1.82 billion; followed by accommodation and food service, P1.08 billion, and agriculture, P228 million.

The Investments Priorities Plan (IPP) 2011 identifies agriculture, tourism, ship building, mass housing, energy, infrastructure, research and development, motor vehicles, green projects, creative industries, disaster prevention; and public-private partnership as strategic areas for growth and investments.

The BOI is yet to release the 2012 IPP.

Data from the BOI showed that approved investments in February will be dispersed in the provinces. Region 4 will receive the highest amount of February investment commitments, P3.13 billion; Region 3, P2.26 billion; and Region 7, P1.45 billion.

Key investment projects approved were Thailand’s Charoen Pokphand Foods Phils. Corp. (CP Foods) aqua feed production project in Bataan; Toyota Motor Philippines’ production of Toyota Vios model in its Laguna plant; Quadriver Energy Corp.’s hydroelectric power generation project in Bohol; Zanorte Palm-Rubber Plantation in Zamboanga, and Pueblo de Oro Development Corporation in Batangas.

CP Foods, a major conglomerate in Thailand’s agribusiness industry, will construct a modern aqua feeds plant with an annual capacity of 114, 000 metric tons. The approved project will supply aqua feeds for the local aquaculture and fisheries industries. They will also source their raw materials from local and foreign suppliers and will need local supply utilities.

Zanorte Palm-Rubber plantation project is expected to harness the potential of rubber as a new growth industry in the country. Initial target buyers for dried rubber are Dunlop, Bridgestone, and Yokohama.

The approved Toyota Motor Philippines project is expected to strengthen the country’s foothold in the production of compact sedans.