Projects OK’d by BOI, Peza up 26% in Jan-Aug.

Total investments approved by the Board of Investments and Philippine Economic Zone Authority rose by 26 percent to P398.3 billion in the first eight months of the year, buoyed largely by the construction and business process outsourcing sectors.

Such a robust performance is expected to continue in the next three years, as the government sees investments—both foreign and local—growing by as much as 20 percent yearly, said Trade Secretary Gregory L. Domingo.

Speaking at the Philippine Economic Briefing on Tuesday, Domingo explained that the increases in investment commitments could be partly attributed to external environment-related factors such as rising labor costs in other countries like China. In the Philippines, the cost of labor remained steady, he added.

The trade chief also noted the growth in the local manufacturing sector as one of the key factors that boosted the increase in investment pledges.

“The growth in the manufacturing sector is not a fluke. It’s a sustained growth. Many plants have been put up in the last three years and most of the plants built are non-electronics. There is also an expansion in the consumer goods category,” Domingo said.

Investment growth is expected to be fueled also by the liquidity of local banks and the improved capability of local companies to undertake new and bigger projects, he added.

Data from the Department of Trade and Industry showed that of the P398 billion worth of investment projects approved in the first eight months, the BOI accounted for P287.48 billion while Peza approvals reached P110.82 billion.