Undeterred by calamities, investors still drawn to PH

Trade Secretary Gregory L. Domingo: PH did well. INQURER FILE PHOTO

MANILA, Philippines—The Philippines managed to sustain strong investor confidence despite the calamities that struck the country late last year, according to Trade Secretary Gregory L. Domingo.

“The Philippines did really well last year,” Domingo said.

In the first three quarters of 2013, the economy performed well—“proof that we’re sustaining growth while keeping prices in check,” he said, noting that the country last year got “the best of both worlds—high growth and low inflation.”

The positive performance of the economy last year was reflected in the approved investments registered with the Board of Investments and the Philippine Economic Zone Authority.

Investment commitments approved by the BOI rose by 12 percent to P403.17 billion in 2013 from the P360.35 billion recorded the previous year, boosted largely by the growing number of power-generation projects.

These investments came from a total of 281 projects, which are expected to generate 37,885 jobs, said Trade Undersecretary Adrian S. Cristobal Jr.

Investment pledges approved by the Peza, meanwhile, fell by 11.48 percent to P276 billion last year, as two big-ticket projects did not push through with their applications in 2013.

Also contributing to the decline was the new policy that barred Peza from granting incentives for renewable energy and bioethanol projects, as well as for certain tourism projects in Metro Manila, Cebu and Boracay, said Peza director general Lilia de Lima.

Energy projects already enjoy a slew of perks under certain laws like the Renewable Energy Act and the Bioethanol Law, while certain markets are already considered “mature,” as far as tourism is concerned.

Despite the decline in investment value, De Lima noted that the number of projects approved grew by 16.64 percent to 673 last year, from the 577 approved in 2012. These projects were expected to generate 1.048 million direct jobs—much higher than the 912,047 jobs generated from the approved investments in 2012.

Meanwhile, export receipts from Peza-managed economic zones rose 7.11 percent to $42.872 billion in 2013 from $40.023 billion a year ago.

Both investment promotion agencies are targeting at least a 10-percent rise in the value of investments approved for 2014.

According to De Lima, the continued interest of investors can also be seen in the ongoing expansions and reinvestments, apart from the growing number of foreign companies undertaking missions in the country.

She said that interested investors mostly came from Japan, the United Kingdom, the United States, Canada, Singapore, Malaysia, Germany, Korea, Taiwan, Malaysia and even China, whose companies are looking to relocate in the Philippines.

The BOI reported that 638 foreign companies and organizations undertook mission to the country last year—31.2-percent higher than the 509 recorded in 2012.