Manila, Philippines – Despite global economic uncertainties, the Department of Trade and Industry (DTI) today highlighted a significant 36% increase in investments approved by the Board of Investments (BOI) for the first half of 2024 relative to the same period last year. From January to June 2024, BOI-approved investments reached PHP 950 billion (USD 16.7 billion), 30% of which are foreign investments amounting to PHP 286 billion (USD 5 billion)—the highest 1st semester BOI approvals in its 57-year history.

Although a 37% drop in net Foreign Direct Investment (FDI) inflow was reported in April by the Bangko Sentral ng Pilipinas (BSP), the DTI remains optimistic given the buildup in the investment pipeline. “The April decline in FDI is viewed as a temporary setback, primarily influenced by global economic headwinds,” stated DTI Secretary Fred Pascual. “Our confidence in the Philippine economy remains unshaken, supported by a 19% increase in FDI over the first four months of the year compared to last year. We are also banking on the investment pipeline built from the BOI’s high level of foreign investment approvals.”

BOI Approved Projects, May 2024

Highlights

Renewable energy investments significantly dominate the investment landscape, with the Electricity, Gas, Steam, and Air Conditioning Supply sector drawing 96.3 % of the total approved investments. Among these was a PHP 297 billion investment by Ahunan Power Inc. in CALABARZON (Region 4A).

In May 2024, several large-scale BOI-approved projects further energized the investment landscape. Solar Solutions Inc. led with a substantial PHP 150 billion initiative in CALABARZON to expand solar energy capacity. Close on its heels was BlueWave Energy, with a PHP 120 billion investment approval for Central Luzon, focusing on offshore wind energy development.

Region IVA (CALABARZON) captured the highest regional investment approval, totaling PHP 592 billion (USD 10.4 billion), a 262% increase from the previous year. Other regions, including Western Visayas (Region VI) and Central Luzon (Region III), also saw vital investment approvals.

Additionally, May 2024 witnessed approvals for substantial foreign equity investments. Energy Global International from Germany made a notable PHP 85 billion investment in a new manufacturing facility in CALABARZON. Similarly, the French firm Hydropower Ventures got approval for a PHP 75 billion investment in hydroelectric power developments in Northern Mindanao.

The investment pattern also reflects notable international confidence, particularly from Switzerland and the Netherlands. Switzerland is the leading foreign investor, with significant projects such as wind energy developments by Jet Stream Windkraft Corporation and Triconti Southwind Corporation, each investing approximately PHP 115 billion (USD 2 billion). The Netherlands features significantly with investment approvals in the energy and manufacturing sectors, underscoring strong confidence in the Philippine economic environment.

The DTI also reported substantial growth in other sectors, such as Agriculture, Forestry, Fishing, and Real Estate, demonstrating the economic diversity and vibrancy across various sectors.

DTI Initiatives to Sustain Growth

The DTI’s proactive strategies to foster a business-friendly environment through continuous promotion and streamlined administrative processes are instrumental in maintaining the Philippines as a competitive investment destination in Asia.

“Our strategic initiatives are vital for ensuring that the Philippines attracts and retains global investments. We are committed to creating an enabling environment that supports business growth and development across various sectors,” added Secretary Pascual.

“As we navigate the global economic landscape, our strategic focus on enhancing the ease of doing business and providing robust support for high-potential sectors is more crucial than ever. These efforts are pivotal in ensuring the Philippines remains a top-tier investment hub in Asia,” Secretary Pascual concluded.

The DTI remains committed to upholding its mission to enable business and empower consumers, ensuring that the Philippines meets, if not exceeds, investment and economic expectations. ♦

Date of release: 11 July 2024

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