Investment commitments approved by the Board of Investments are expected to grow this year but at a much slower pace of 5 percent to about P491 billion, given the lack of big-ticket projects that accounted for the bulk of project approvals in 2013.
Last year, investment commitments approved by the BOI grew by 29 percent to P466 billion, from P360.4 billion in 2012.
According to Trade Undersecretary Adrian S. Cristobal Jr., the agency is currently adjusting its projections and targets. The BOI had earlier set an investments approval growth target of 10 percent for the year.
“We’re reviewing the figures. I mentioned that there are about 40 plus projects in the pipeline but I didn’t mean that these are big ticket items. We noticed that there are more projects now, and more jobs generated, but in terms of amount, [investment approvals] will be a little lower because there are no big ticket energy projects like last year,” Cristobal said.
The trade official pointed out that such projects, which were engaged in agri-business, manufacturing and tourism, are expected to generate quality jobs. This, he said, meant the the growth in employment generation could be substantial this year.
Investments approved for registration last year were expected to generate 38,100 jobs once all the projects are fully operational.
As of end August this year, the P258.7 billion worth of investments approved by the BOI are expected to generate 35,433 jobs, reflecting a 44-percent increase from year- ago level.
“The BOI will continue to promote sectors that generate more employment opportunities and is committed to the country’s goal of inclusive growth and poverty reduction,” Cristobal had said.
The investment approvals in the first eight months of 2014 reflected a 26-percent decline from the P350.34 billion worth of pledges approved in the same period last year. Of the approvals from January to August, domestic sources provided 95 percent or P245.76 billion, while the remaining 5 percent or P12.97 billion were funded via foreign investment sources.
The electricity, gas, steam and airconditioning supply sector continued to record the biggest share of the total investments for the period with P160.33 billion. Other performers were construction (P34.48 billion); mass housing (P28.85 billion); accommodation and food service activities (P14.69 billion); and transportation and storage (P7.74 billion).