Trade and Industry Secretary Ramon Lopez GRIG C. MONTEGRANDE/Philippine Daily Inquirer
The total value of investment pledges approved by the Board of Investments (BOI) last year rose 20 percent to P441.8 billion, the second highest level since 2000.
The growth in registered investments last year also far exceeded the agency’s target of just 7 percent.
According to Trade Secretary and BOI chair Ramon M. Lopez, the growth last year was driven by the continued investor confidence in the country’s sustained strong macroeconomic fundamentals and President Duterte’s 10-point socioeconomic agenda as well as state visits.
“With the investment missions that we are doing, investors have gained greater awareness of the Philippines’ strong and growing economy,” Lopez said.
Data from the BOI showed that the investments approved in 2016 were for 377 projects that could generate about 67,615 new jobs once these become fully operational.
Of the pledges approved last year, the bulk or P209.9 billion are to be allocated for energy projects; P65.8 billion for real estate activities; P62.3 billion for construction; P49 billion for manufacturing; and P23.4 billion for transportation and storage.
The BOI pointed out that the value of investments approved for the construction and manufacturing sectors were among the fastest growing compared to the previous year’s levels, with growth hitting 644.8 percent and 81.3 percent, respectively. In terms of employment, the real estate sector is seen to generate the biggest number of jobs at 32,055, followed by the manufacturing industry, which is expected to provide jobs to 17,067 Filipinos.
Trade Undersecretary Ceferino S. Rodolfo noted that the “continued growth of the manufacturing industry is a clear indication of the results of our Manufacturing Resurgence Program.”
“The revival of the manufacturing sector is key to inclusive economic growth because it will generate much-needed decent employment and help the country tap regional production networks,” Rodolfo added.
Data from BOI also showed that about 80 percent (P352.5 billion) of the approved investments in 2016 came from local companies, while the remaining P89.3 billion came from foreign sources.
According to the agency, foreign investment pledges last year were higher by 50 percent against the P59.5 billion in 2015.
Topping the list of foreign country investors for the year were Australia with investments worth P30.5 billion, followed by Singapore (P13.6 billion); The Netherlands (P13.1 billion); Japan (P6.8 billion); and South Korea (P6.4 billion).
In terms of geographic distribution, Region 4A (Calabarzon Region) topped the list with P102.1 billion worth of approved projects followed by the National Capital Region (Metro Manila) with P95.3 billion and Region 3 (Central Luzon) with P56.5 billion.