Photo from BOI/FACEBOOK
MANILA, Philippines — The Board of Investments (BOI) approved the registration of P640.22 billion worth of investments during the first five months of the year, with most of these business ventures positioned in the renewable energy sector.
Data released by the Department of Trade and Industry’s (DTI) lead investment promotion agency on Monday showed a 14- percent increase in approved investments when compared to the P562.90 billion reported in the same period last year.
“The upward trajectory in [foreign direct investment] net inflows and approved investments follows the pattern of commitments from various trade missions initiated by investment promotion agencies, including the goodwill fostered through the President’s business trips abroad,” Trade Secretary Alfredo Pascual said in a statement.
13,871 jobs
“These efforts have been followed through by registration approvals, and what we are seeing now are tangible results of these concerted government efforts,” he added.
For May alone, the BOI registered P27.41 billion worth of investments, which is lower than the preceding month’s P343.21 billion—the highest monthly record so far this year.
The BOI is targeting to approve at least P1.1 trillion worth of investments this year, most of which are expected to pour into the renewable energy sector.
READ: BOI targets P1.1-trillion investment approvals in 2024
It approved the registration of investments worth P1.26 trillion in 2023, P729 billion in 2022, P655 billion in 2021, P1.02 trillion in 2020, and P1.14 trillion in 2019.
Registered investments under the BOI are eligible for several incentives from the government, including income tax holidays, a preferential tax rate on gross income, zero value-added taxes (VAT) rating, as well as tax- and duty-free importation of capital equipment, raw materials, and supplies.
All the registered investments approved from January are expected to create 13,871 jobs, according to the BOI.
Investment breakdown
From January to May this year, the BOI said foreign investments amounted to P114.37 billion, while domestic investments reached P525.85 billion.
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It added that Switzerland was the top source of these foreign investments, with projects worth a combined P62.89 billion.
The Netherlands followed with P39.33 billion; Singapore, with P6.07 billion; China with 1.53 billion, Taiwan with P1.28 billion, and the United States with P953 million.
Most of the investments are in the renewable energy and power industry, with P607.47 billion poured into the sector, thus accounting for almost 95 percent of the total.
Meanwhile, P9.56 billion is in the agriculture, forestry, and fishing sector, P8.17 billion in real estate, P4.61 billion in transportation and storage, P4.36 billion in manufacturing and P227.95 million in financial and insurance activities. INQ