After starting the year strong, the Board of Investments (BOI) saw registration of investment pledges plunge by 95 percent to P3.8 billion in February.
In February last year, the BOI registered P80.31 billion worth of projects, records showed.
BOI pledges refer to investment commitments in businesses included in the BOI’s list of preferred investment areas, which are deemed strategic in advancing inclusive growth.
Preferred projects, like manufacturing and mass housing, are given incentives, including income tax holidays.
The decline was slower in terms of the first two months of the year. From January to February, pledges dropped 23 percent to P101.72 billion, as the unusually strong performance in January tempered the fall.
In January, the BOI approved P97.9 billion worth of investment projects, nearly double of the level in the same month last year.
BOI officials explained that the decline was just a matter of timing, noting that more projects were in the pipeline.
BOI Managing Head and Trade Undersecretary Ceferino Rodolfo said there were “key projects” in the pipeline, particularly in the energy sector.
These projects, he said, were still undergoing BOI’s evaluation process, which would look into the technical and financial aspects of the proposals. The process will determine whether the projects are eligible for registration and incentives.
“Given the projected investment costs, we are very optimistic of a renewed surge in total approvals in the next months,” he said.
After posting an all-time high last year of P907 billion, the BOI is targeting to hit P1 trillion worth of pledges this year.