BOI, PEZA investments hit P158B in 8 months

The Board of Investments (BOI) and Philippine Economic Zone Authority (PEZA) reported double digit growth in investments from January to August as manu-facturing and real estate industries continued to attract new businesses.

The statement released yesterday by the two attached agencies of the Department of Trade and Industry (DTI) showed that combined project approvals reached 494 projects worth P158 billion for the first eight months of the year.

The investment is 26 percent better than the P126 billion recorded during the same period last year.

Trade and Industry Secretary Peter B. Favila, who is also the concurrent chairman of PEZA and BOI said the increased investments reflected the rising confidence of both local and foreign businessmen to do business in the country.

For the eight-month period, the BOI approved some P69 billion worth of investments while the PEZA approved P89 billion. 

Majority of the investments was for the manufacturing sector with P60.61 billion. It grew by 93 percent from P31.4 billion primarily due to the capital infusion of Mabuhay Vinyl Corp. for the manufacture of caustic soda and hydrochloric acid and liquid worth P564.6 million, and Pilipinas Kyohritsu’s production of automotive wiring harness worth P453.3 million. 

Real estate was a far second with P34.78 billion in investments. Other sectors which enjoyed new businesses were infrastructure — electricity and gas — P15.28 billion, and information technology — P10.86 billion. 

According to Favila, he expects more infrastructure investments to come in as the private sector has started to engage in the industry. “Improved infrastructure attracts more business to come in. Better infrastructure allows business to do things efficiently and effectively, thus increasing the country’s competitiveness,”  he explained.

Combined infrastructure and electricity, gas and water supply sector grew with the capital infusion of SN Aboitiz Power, Inc., a power generating plant in Isabela worth P27 billion, First Hydro Power Corp., a 112 MW Pantabangan-Masiay hydro Power generation project worth P7.7 billion, Montalban Methane Power Corp. worth P1.6 billion and Hedcor Tamugan, Inc., a hydroelectric power project worth P940 million. 

Foreign investors committed P80.7 billion or 51 percent of total investments while local businessmen committed P77.4 billion.

The approved investments are expected to create 93,164 new jobs.

For the month of August alone, 56 projects were approved with BOI generating P1.7 billion and PEZA P7.9 billion worth of investments.