Investment pledges registered before the Board of Investments (BOI) dropped close to 45 percent for the month of May, continuing the slump in commitments for the third month in a row.
Pledges only reached P11.76 billion in May, dropping 44.94 percent from the P21.36 billion worth of projects registered in the same month a year ago, data acquired by Inquirer showed.
In a press statement on Thursday, the BOI detailed only the 19-percent growth in cumulative pledges for the first five months of the year to P207 billion.
A closer look, however, showed pledges began declining year-on-year in March.
Lukewarm interest from local firms, in particular, weighed down heavily on the May data. Local pledges dropped 61.57 percent to P7.7 billion, overwhelming the 210-percent growth in foreign pledges to P4.05 billion.
Trade Secretary and BOI Chair Ramon Lopez has not yet responded to a request for comment as of press time.
Data also showed a similar trend in investment pledges registered in another investment promotion agency, the Philippine Economic Zone Authority (Peza).
Peza Director General Charito Plaza attributed the decline to a plan to rationalize tax incentives. Peza caters to export-oriented firms.
In BOI’s statement on Thursday, BOI managing head Ceferino Rodolfo said the increase in foreign investments showed there were “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 [second package of the Tax Reform for Acceleration and Inclusion law] 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.