Board of Investments approvals fall 83.6% to P18.368 billion

MANILA, Philippines - Investment approved by the Board of Investments in the first quarter of the year fell 83.6 percent to only P18.368 billion from the P110. 404 billion recorded in the same period last year.

Data released by the BOI showed that 72 projects were approved. These approved projects are expected to create 8,622 jobs once these are fully operational. The projects which will be recorded entitled to incentives, include in real estate, manufacturing, and accommodation and food service activities.

In the first quarter of last year, 62 projects were approved and an estimated 10,784 jobs were created.

Foreign investments alone rose 53.32 percent in the first quarter to P3. 733 billion from P2. 435 billion from the same period last year. Investments from Thailand and Japan were the top gainers of tax incentives.

Local investments approved for the first quarter of 2012 reached P14.635 billion, down 86.44 percent from P107.969 billion from the same period last year.

Approved Thai investments in the first quarter reached P2.264 billion, up 100 percent from zero approved in the first quarter of last year.

Japanese investments approved for tax incentives reached P893 million, up 24 percent from P893.654 million in the same period last year.

Trade Secretary Gregory Domingo said more “serious Japanese invetsors” are now exploring opportunities in the country.

Investments in the real estate sector approved in the first quarter reached P5.661 billion, down 27.25 from P7.782 billion in the same period last year.

Manufacturing investments approved for tax incentives in the first quarter reached P5. 310 billion, down 93.53 percent from P 82. 039 billion approved in the same period last year.

Food products (P2.351 billion, up 954 percent from P223 million) and Motor vehicles, trailers and semitrailers (P2.126 billion from none approved) were the top gainers in the manufacturing sector.

Investments in the accomodation and food service sector reached P3. 670 billion in the first quarter, up by 249 percent from P1.049 billion in the first quarter last year.

Region 3 was the top destination for BOI-approved investments in the first quarter of 2012. Invetsments in the region reached P3.735 billion, down by 95 percent from P75.428 billion in the same period last year.

Some of the major investments approved for tax incentives in the first quarter of 2012 are the P2.584 billion Marco Polo Hotel of Xin Tian Ti Development Corp which will create 520 jobs, the aqua feed production project of Charoen Pokphand Foods Phils., Corp worth P2.264 billion which will create 209 jobs, and the P1.757 billion spent by Toyota Motor Philippines Corp. for the development of a new Vios model which will create 21 jobs.