BOI, PEZA-listed investments surge 102% to P40.65B in Q1

Investments approved by the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) soared by 102 percent to P40.65 billion in the first quarter of the year from P20.12 billion a year ago.

In a statement, the attached agencies of the Department of Trade and Industry (DTI) said the bulk of investments went to the manufacturing, power generation, mass housing and Information Technology (IT) sectors.

Manufacturing remained as the top investment sector as investments surged 68 percent to P15.73 billion in the first quarter from P9.37 billion a year ago. This was followed by power generation with P10.85 billion. Mass housing has P6.52 billion. The biggest jump in investments was seen in the IT services sector which soared by 106 percent to P5.29 billion from P2.57 billion.

The investments cover 177 projects that are expected to generate direct employment to 32,118 persons as against 169 projects and 28,676 direct employment in the first three months of 2006. 

Major investments seen during the quarter include the 112 MW Pantabangan-Masiway hydropower project of First Gen Hydro Power Corp. worth P7.7 billion, the P940-million hydroelectric power project of Hedcor Tamugan Inc., the P546-million project of Mabuhay Vinyl Corp. involving the manufacture of caustic soda and hydrochloric acid and the P453.3-million automotive wiring harness project of Pilipinas Kyohritsu. 

A number of projects in the manufacturing and IT services sectors are to be located in the export zones and IT parks and buildings of PEZA. 

"Investment confidence remains strong, an indication of the positive economic reforms the government has undertaken. Investors remain bullish of the Philippines," Trade and Industry Secretary Peter B. Favila said.

"We note that businessmen earlier indicated that the coming May local elections do not worry them as the reforms are already in place. The recent visits of Saudi, Chinese and Russian business officials are a clear indication of the bright prospects for doing business in the country," he added. 

Local businessmen dominated the investments as total Filipino commitments reached P23.07 billion or 57 percent while foreign investors account for 43 percent or P17.58 billion.