BOI projects 10% investment growth in 2016
THE BOARD OF Investments expects approved investment pledges to grow by as much as 10 percent this year, on the back of sustained investor confidence in the administration of President Duterte.
This new target was double the Board of Investment’s initial forecast of a 5-percent growth from the P366.74 billion in commitments approved in 2015.
“Confidence in the new administration is strong, while our economic fundamentals and consumer confidence are high. [Issues concerning] peace and order situation, security, corruption and discipline are now being addressed,” Trade Secretary Ramon Lopez explained in an interview with the Inquirer.
“We have a better business environment under the new administration. President Duterte’s 10-point economic agenda is a big factor to attracting investments. Part of this agenda pursues the stability of the policy environment, honoring contracts and not changing the rules midway, a big come-on for many investors,” Lopez added.
Lopez thus stressed that it was crucial to retain the incentives being granted to investors.
There was also a need to further liberalize sectors of the economy that are still subject to foreign equity or ownership restrictions.
“We will also review the Investment Promotions Plan (IPP), but we will ensure the stability in the granting of incentives to deserving industries. We decided to review and look again at giving priority incentives in the least-developed areas to spur economic activities,” he added.
According to Lopez, the BOI expect more investments to be registered in the second half of the year, given the rising number of business-related inquiries and prospects.
The value of investments approved by the BOI in the first half of the year more than doubled to P186.5 billion, indicating the continued confidence in the local economy despite the recent transition to the new administration.
These proposed investments cover a total of 162 projects, which are expected to generate over 30,000 new jobs when fully operational.
Most of these pledges were power and transportation infrastructure projects.
Data from the BOI showed that power generating plants and renewable energy projects accounted for 51 percent or the bulk of the approved investments in the first semester.
A total of 34 power projects, mostly in Luzon, are expected to require P95.95 billion in capital and will generate an additional 1,034.12 megawatts.
