The Department of Trade and Industry’s Board of Investments (BOI) on Wednesday said that it approved P729 billion worth of investments from January to date, breaking two years of decline following a record year in 2019.
Data from the government’s investment promotion agency said the year-to-date figure was 11 percent higher than the P655 billion recorded in 2021.
“The 2022 BOI approval levels clearly indicate that despite the lingering effects of the pandemic, especially in the first half of the year, coupled with global decline in investments due to the Russia-Ukraine War, investors continue to have strong confidence in the Philippine economy,” Trade Secretary Alfred Pascual said in a statement.
The BOI’s approved investments stood at P1.02 trillion in 2020 and at P1.14 trillion in 2019.
Meanwhile, the projected number of generated jobs also increased to 260,000 in 2022, marking a 454-percent rise from 47,000 in 2021.
Most of the investments came from Singapore, accounting for 57 percent of the total.
This is followed by those from Japan at 22 percent, the United Kingdom at 7 percent, the United States at 3 percent, and the Virgin Islands and South Korea each at 2 percent.
Growth drivers
The BOI said the power sector—particularly renewable energy—was the biggest driver of growth, accounting for 56 percent of the total.
This is followed by the information and communication sector, which involved data center and telecommunications towers, at 28 percent.
Also included are information technology and business process management sectormanufacturing, mass housing, and transportation and storage.
Investments in the electric vehicle (EV) sector were part of this year’s numbers, particularly the establishment of 1,000 charging stations and the leasing of 10,000 units of EVs and 50 other charging stations.
Another project involves the operation of 10,000 units of EVs under a Transportation Network Vehicle Service system, along with 50 other charging stations.
The BOI said the total project cost for the EV sector amounted to P52.3 billion.
“Equally important, we have to highlight the composition of the approved projects. These are very strategic and are fully aligned with the direction that Trade Secretary and BOI Chair Fred Pascual had set,” Trade undersecretary Ceferino Rodolfo said in a statement, adding that the government’s industrialization push should be based on innovation, sustainability, digitalization, and connectivity.
“Moving forward, as directed by the chair and secretary, we are targeting P1 trillion in investments for 2023. We have a healthy pipeline of strong leads, including those generated and further confirmed through investment missions by the secretary and through the presidential visits by President Ferdinand Marcos Jr.,” Rodolfo added.