BOI expects sluggish investments this year

MANILA, Philippines - The Board of Investments (BOI) is expecting investment inflows to contract by 15 percent due to a lesser number of power projects for this year.

BOI managing head Cristino L. Panlilio said that investments may drop to P258 billion this year from the P302 billion a year ago.

Panlilio explained that the drop was because they don’t expect the same number of power projects to come in this year. He noted that major power projects and other big ticket projects were already approved in 2010.

In addition to this, they have limited the Investment Priorities Plan (IPP) list this year to lessen the foregone revenues of the government due to incentives.

Panlilio also said that the DTI would like to increase the number of foreign investments. Data showed that only seven percent of the investments or P22 billion came from foreign investments while domestic investors accounted for the remaining 93 percent or P280 billion of total investment.

Panlilio said that they would like to see more foreign firms locate in the country by doing targeted marketing to identified countries.

Likewise, Panlilio said that the country can get more FDIs from Japan and South Korea because these two countries have saturated domestic investments and they must invest abroad to continue growth.

Panlilio said there will be selective FDI promotion in thr US and Canada. He said that this is mostly for expansion of US multi-national operation in the Philippines particularly the business process outsourcing.

In addition to this, Panlilio said that the Investment Promotion Agencies will now work together in conducting roadshows, exhibitions and visits to target companies.

For the domestic investments, Panlilio said that they will encourage capacity building for local government units in terms of investment promotions. They will also hold domestic roadshows and appoint BOI liaison officers to major confederations and business clubs.

There are also several bills like the Save the Industries Act which is set to be filed before the US Congress and the development of the implementing rules and regulations for the Motor Vehicle Development Program.