MANILA, Philippines - Total investments approved by the Board of Investments (BOI) and Philippine Economic Zone Authority (PEZA) by yearend are expected to rise 13.4 percent after falling nearly 15 percent last year on the back of a resurgent investor confidence in the country.
Data from the Department of Trade and Industry showed targeted total investments by the two investment generating agencies this year is seen to reach P719.4 billion, higher than last year’s total of P634.24 billion.
Of the targeted amount, P390.2 billion would come from the BOI while the remaining P329.2 billion would come from PEZA.
The BOI’s 2015 investment target is based on the 10 percent per annum target growth rate of the Philippine Development Plan while PEZA’s target is based on performance in the previous years with significant consideration of the global market situations.
Next year, both agencies are further hiking their forecast with investments seen reaching P779.6 billion.
“Investor confidence remains strong as manifested in the growing number of inbound investment missions. Outbound investment promotional activities in the past years result in many targeted companies starting their due diligence visit and even setting up operations in the country,” the DTI said.
“Industries such as the IT-BPM and aerospace have embarked on the implementation of an aggressive investment promotion program. Another positive development is the growing interest of investment promotion agency counterparts of other countries to partner with the Philippines’ investment promotion agency to collaborate in enhancing the flow of investments through various promotional activities. The private sector and international organizations’ outlook for the country is similarly optimistic,” it added.
As of the first six months of the year, total BOI and PEZA approved investments amounted to P170.9 billion for 441 projects seen to generate some 73,369 jobs.
Investment commitments from domestic sources reached P119 billion or 70 percent of the total investment approvals, while the remaining 30 percent or P52 billion came from foreign sources.
A sizeable 33 percent of the total BOI-PEZA approved investments is intended to fund projects in real estate activities, followed by manufacturing with a share of 28 percent or P47 billion.
In terms of countries of origin, the DTI data showed Netherlands topped the list with commitments worth P18 billion or 35 percent of the total BOI-PEZA approved investments.