Investments soar to P34.9B in H1

Investments registered with the Board of Investments (BOI) soared by 213 percent to P34.94 billion in the first half of the year from P11.15 billion in the same period last year, underscoring investor confidence in the Arroyo administration.

"It is a testament to the business sector’s confidence in President Arroyo, notwithstanding the turbulent first half of the year in terms of political and peace and order issues (that investment registrations are up)," Trade and Industry Secretary Manuel Roxas II said yesterday.

Investments registered in the first half already accounted for almost 70 percent of the P50 billion target set by the BOI this year.

The BOI said the latest capital inflow generated employment for 13,239 workers nationwide, or a nearly 40-percent hike from the previous year’s 9,509 workers.

For the six-month period, total equity approved by the BOI rose by a dramatic 329 percent to P18.59 billion from P4.33 billion a year ago. Equity infused by local businessmen cornered an 87 percent share while foreign investors accounted for the remaining 13 percent.

Japan emerged as the biggest investor with P1.060 billion followed by Australia with P666.66 billion and Singapore with P204.3 million.

Big-ticket projects approved by the BOI in the first semester include the P17.1 billion expansion project of PLDT’s cellular subsidiary Smart Communications, Inc., and the P2.75 billion mining project of Rapu-Rapu Processing, Inc. – a unit of La Fayette Group of Australia.

Other projects include the P2.27 billion project of IT service provider Philweb. Com Inc.; the P2.17-billion wind power project of PNOC Energy Development Corp.; and the P1.07 billion call center project of Ayalaport Makati Inc.

According to Roxas, almost half of the investments was infused into public utilities with P17.21 billion followed by the information and communication technology sector with P7.780 billion and mining with P3.35 billion.

"It is also important to note the composition or character or these investments. If you look at the top ones they are all in infrastructure meaning these are all long-term projects... these are major bets on the country," he added.

BOI data showed that the National Capital Region remained the most attractive investments site with 33 projects worth P7.920 billion followed by the Bicol Region with P2.750 billion and the Ilocos Region with P2.17 billion.