2005 investment target for PEZA, BOI set at P230B

The Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) are expecting investments to hit P230 billion for the whole of 2005, Trade and Industry Secretary Juan B. Santos said over the weekend.

Santos disclosed that the BOI-PEZA investment target for this year has been increased to P230 billion from the P211 billion investments that actually flowed into the country in 2004.

Santos said the two government agencies are both optimistic of hitting the P230 billion target.

"The target appears realistic based on the BOI and PEZA’s two to three year realization performance," Santos said.

According to Santos, the realization performance is the percentage of investment actually realized over total approved investments.

"The BOI has an 85 percent realization rate, while the PEZA has an even higher realization performance of 97 percent," Santos said.

Last year’s investment growth of 271 percent is a clear signal of returning business confidence, Santos said.

Santos added that he is even more confident about the higher investment target in the face of an initial P50 billion investment "leads."

Among the early inflows expected this year, Santos said include the $140 million in the mining sector; $30 million in the information and communications technology (ICT) sector; $160 million in the electronics sectors; $200 million in the automotive sector and about $100 million in the health and wellness sector.

Santos refused to give further details on the initial investment leads as the proponents of the projects have requested secrecy until their investment plans have been finalized and approved.

During his recent presentation at the Philippines Investment Conference held last week in Mactan Island, Cebu, Santos said the government’s medium-term investment priority plan would focus its promotion efforts on 11 areas.

These sectors are mining, processed food and marine products, infrastructure, motor vehicles and parts, electronics, health and wellness, IT and ITES, shipping and ship building, logistics, fashion andn jewelry.