BOI investment pledges up 19% as of May, hit P207B

Investment pledges registered under the Board of Investments grew 19 percent in the first five months of the year, data showed.

This translates to P207 billion worth of pledges from January to May, up from P174 billion in the same period last year.

BOI, however, did not give its year-on-year growth for the month of May alone.

Pledges dropped in March and April from year-ago levels.

Pledges from both foreign and local investors grew year-to-date, with domestic businesses accounting for around P200 billion as of May.

BOI also said foreign investment pledges grew 29 percent to P7 billion from P5.38 billion previously.

This came amid talks of a tax reform push that will rationalize the tax incentives offered by the government, a policy shift which has caused the decline in pledges for the Philippine Economic Zone Authority (Peza), which caters to export-oriented firms.

BOI Managing Head Ceferino Rodolfo said the increase in foreign investments pointed to “opportunities” to get foreign companies to serve the domestic market, “if only the relevant incentive tools are available.”

“It is in this context that we are supportive of the proposed TRAIN Package 2, in order to make our incentive regime more relevant and responsive to needs of investors in priority strategic and socially relevant industries,” said Rodolfo, who is also trade undersecretary.

The increase in local investment pledges in the first five months of the year, meanwhile, was driven by power and energy projects and transportation and storage.