Investment pledges approved by the Board of Investments (BOI) fell by 38 percent to P149.45 billion in the first six months of 2014, from the P240.74 billion registered a year ago.
Trade Undersecretary Adrian S. Cristobal Jr. noted in a briefing that, despite the decline in the value of investment commitments, the number of jobs to be generated by the 100 new projects expected could reach 25,805—up 35 percent from the 19,182 jobs recorded in the same period last year.
“We’re not worried about [the decline] because, for one, we are attracting more projects that generate more jobs in the tourism, real estate, construction and agriculture sectors. We noticed that the lower figure was due to lower number of power projects. Last year, we had big ticket items like the projects of Redondo Peninsula Energy valued at P62.8 billion, and of GNPower [worth] P41.23 billion, among others,” Cristobal explained.
Despite the lack of big-ticket projects, power and energy-related proposals still made up the bulk of the pledges, accounting for 61 percent, or P90.74 billion, of investment commitments approved in the first half of the year. Real estate activities followed, accounting for 14 percent share of the total, or P20.28 billion. Accommodation and food service activities sector had a 10-percent share, or P14.69 billion, while the construction sector comprised 7 percent of total pledges worth P11.05 billion.
Cristobal further said that investment commitments from domestic sources comprised the bulk at P137.99 billion, while investments generated from foreign sources accounted for only 8 percent, or P11.46 billion.
Topping the list of foreign country sources in the first half of the year were the British Virgin Islands, which pledged P5.46 billion worth of projects; the United Kingdom, with P1.46 billion; Japan, with P890.53 million; the Netherlands, with P789.28 million; and Thailand, with P237.28 million.
Cristobal is optimistic about the BOI’s overall investment performance for the year, saying that the agency is still evaluating 197 more projects that have cumulative investment commitments of P405 billion.
Should all 197 projects pass the evaluation, the BOI will be able to record a total of P554.45 billion in investment approvals this year—exceeding the agency’s performance last year of P403.17 billion, as well as its target, earlier pegged at P491 billion.