Department of Trade & Industry (DTI) and Board of Investments (BOI) Chairman Ramon Lopez announced a 165-% increase in foreign direct investments (FDIs) in the first semester of the year, contributing to the 27-% increase in overall approved investments for the period.
FDIs approved by the agency grew to P14.5 B from only P5.5 B in the same period last year. The growth in FDIs contributed to the overall increase in BOI approvals as investment projects approved by the agency reached P238.9 B in the first semester of 2018, up by 27.1% compared to the P188 B recorded in the same period last year.
By country, Indonesia topped all foreign investors with P6.4 B, followed by Japan with P2.6 B, and China with P880 M. The United States (P582 M) and Italy (P486 M) came in as fourth and fifth placers, respectively.
“The impressive investment registrations with the BOI is a concrete proof of the continued confidence of both foreign and local investors in the country,” said Secretary Lopez.
He said that the strategic nature of investments registered with BOI and the strong confidence of investors is very much linked to the administration’s policies which are independent and pragmatic, but principled in addressing the critical social problems and bottlenecks to industry competitiveness such as infrastructure and power.
"The Philippine economy will continue to grow and create investment opportunities in infrastructure, manufacturing, and services. With this growth, we intend to have more inclusive businesses and ensure that economic gains are spread throughout the country,” Secretary Lopez added.
Trade Undersecretary and BOI Managing Head Ceferino Rodolfo stressed that the BOI investment figures is a significant lead indicator for the overall growth of FDIs. He cited the FDI figures released by the Bangko Sentral ng Pilipinas which showed a 40-% increase in the first quarter of the year.
Undersecretary Rodolfo also said that the agency is still on track in achieving its target of P680 B for 2018, a 10-% improvement from last year’s P617 B figure. “We expect big-ticket projects to come in by the second half of the year. Foreign and domestic investors remain optimistic especially in view of the government’s Build, Build, Build and Manufacturing Resurgence Programs,“ he said.
Citra Central Expressway Corporation was the biggest project registered in the month of June as it invests P25.7 B in extending the Skyway that will connect Buendia Avenue all the way to the North Luzon Expressway in Balintawak. Other notable projects include the P1.1 B theme park of Newscapes Haven Development Inc. in Nabas, Aklan; Hydrocor Corp.’s P990 M renewable energy project in Ifugao; the P710 M hospital project of Allegiant Regional Care Hospitals, Inc. in Lapu-Lapu City, Cebu; and the P439 M mass housing project of PDB Properties, Inc. in Tanauan City, Batangas.
The renewable energy/power sector remains the top source of investments with P108.2 B for the first semester, a 168 % increase from last year’s P40.3 B in the same frame. The transportation and storage segment is runner-up with P37.4 B, up 298 % from P9.4 B in 2017. Construction/PPP Projects (P32.9 B), manufacturing (P19.8 B) and real estate (P15 B) make up the top five sectors.
Countryside investments accounted for 76 % of the total investment figure or P180.7 B. Central Luzon (Region III) led all regions with P77.6 B, a 248 % jump from P22.3 B in 2017. CALABARZON (Region IVA) came in second with P58.7 B. The National Capital Region accounted for 24 % or P58.3 B. Davao Region (Region XI) with P14.3 B and Western Visayas (Region VI) with 4.9 B rounded out the top five regions.
Date of release: 23 July 2018