Investment projects approved by the Philippine Board of Investments (BOI) grew 20.4 percent in 2016, reaching P441.8 Billion from the P366.7 Billion registered in 2015.
The value of registered projects in 2016 is second highest since 2000, next to the P466 Billion registered in 2013. The 20.4 percent growth also exceeded the agency’s 7 percent growth target for 2016.
With a 20.4 percent growth in 2016:
• BOI surpassed its 2016 target of 7 percent increase in value of registered projects.
• 2016 value of registered investments is second highest since 2000
• Foreign investment pledges is 50 percent higher in 2016 than in 2015
• Foreign investment level in second half is almost twice than in the first half
• Among major sectors, growth in investments (2016 vs. 2015) is fastest in construction (644.8 percent) and manufacturing (81.3 percent)
• Mostly buoyed by hydropower projects, investments in Cordillera Administrative Region increased from P85.6 Million in 2015 to reach P34.8 Billion in 2016.
Trade Secretary and BOI Chairman Ramon Lopez said the growth in the agency’s investment pledges is driven by the continued confidence of investors with the country’s sustained strong macroeconomic fundamentals and in President Duterte’s socio-economic agenda; as well as a result of President Duterte’s state visits since he started the current administration.
“With the investment missions that we are doing, investors have gained greater awareness of the Philippines’ strong and growing economy,” he said adding that during the President’s state visits, he always assures investors that the government will honor, secure, and protect their investments.
The aggregated investment approvals in 2016 were generated from 377 projects and are expected to generate about 67,615 in new jobs when these investment projects become fully operational.
Investment projects registered were mainly from local companies, making up 80 percent of the total figure or P352.5 Billion. The rest of the 20 percent meanwhile came from investments from foreign sources amounting P89.3 Billion.
Foreign investment pledges this year are higher by 50 percent against the P59.5 Billion in 2015. The foreign investment level in the second semester was almost double than that of the first semester, clearly indicating “the growing foreign investor interest and confidence”.
Topping the list of foreign country investors for the year include Australia with investments worth P30.5 Billion. Singapore came in second with investments amounting to P13.6 Billion, followed by The Netherlands with P13.1 Billion, Japan with P6.8 Billion, and South Korea with P6.4 Billion. The balance is shared by various country investors.
In terms of geographic distribution, Region 4A topped the list of regional investments with P102.1 Billion worth of projects. The National Capital Region came in second with investments worth P95.3 Billion, followed by Region 3 with P56.5 Billion. Significant investments were also directed to the Cordillera Administrative Region with P34.8 Billion, remarkably up by 40,528 percent from only P85.6 Million recorded in 2015.
Topping the list of investment projects for the year are from the industries of power (P209.9 Billion), real estate activities (P65.8 Billion), construction (P62.3 Billion), manufacturing (P49 Billion), and transportation and storage (P23.4 Billion). Investments in construction and manufacturing were among the fastest growing (2016 vs. 2015) reaching 644.8 percent and 81.3 percent, respectively.
The real estate sector is seen to generate the most number of employment with 32,055, followed by the manufacturing sector which is expected to provide jobs and income to 17,067 Filipinos.
Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said “the continued growth of the manufacturing industry is a clear indication of the results of our Manufacturing Resurgence Program”. “The revival of the manufacturing sector is key to inclusive economic growth because it will generate much-needed decent employment and help the country tap regional production networks,” he said.