BOI-listed investments up14.6% in Jan

MANILA, Philippines - Total investments committed to the Board of Investments (BOI) for January this year reached P3.74 billion, up by 14.6 percent from P3.26 billion in the same period last year, indicating increased investor confidence at the beginning of the year, Trade and Industry Secretary Gregory Domingo said yesterday.

He said the18 projects approved are expected to create 3,026 jobs once operational.

Domingo said economic activities in the country are becoming more widespread with some of the investmets being planned for implementation in the provinces.

“We see strategic investments specifically in the sectors of tourism, energy, and agriculture -priority areas that the government has identified to boost income and value-added as well as create more jobs in the rural areas,” he said.

Region 3 accounted for 38.18 percent of total investments, generating P1.42billion; Region 10, 18.8 percent; and Region 7, 17.37 percent.

BOI managing head Adrian Cristobal Jr. said manufacturing, which accounts for 24 percent of the country’s gross domstic product, “will continue to be a critical driver” of the local economy.

“This sector, together with tourism, agriculture, and construction create an important multiplier effect in generating jobs and in reducing poverty,” Cristobal said.

Investments in the manufacturing sector for January reached P496 million, 13 percent of the total investments approved. This were mostly investments in the manufacture of motor vehicles amounting to P368.4 million.

Big-ticket tourism related projects were approved in Dumaguete and Cagayan de Oro.

“The tourism accommodation facility projects could spur economic growth for the region,” said Cristobal.

He said the geothermal project approved in Camarines Sur would be beneficial in the long-term to help lower power costs and reduce dependency on traditional energy sources.

Cristobal, likewise, said that agriculture-related investments, particularly for banana exports form part of the core strategy in the Philippine Export Development Plan (PEDP).

“We are gradually lessening our dependence on electronics,” he said of the country’s largest export sector.

Ninety-two percent of investment commitments came from domestic investors. Japan remains as the country’s largest investor, having P190.4 million in commitments following the gradual strengthening of its economy and the mid-term impact of brisk trade under the Japan Philippine Economic Partnership Agreement (PJEPA).

New investments from Japan were on motor vehicle manufacturing,possibly brought about by the supply chain disruptions in Thailand. Next to Japan are China, Australia, Malaysia, and Russia. Leading investment projects approved were on real estate, P1.76 billion, followed by accommodation and food service, P875 million; manufacturing, P496.4 million; electricity, gas, steam, and air conditioning supply, P340.3 million; and agriculture, P228 million. Manufacturing investments are led by motor vehicles at P368.4 million.

The biggest project approved for the period was the low cost mass housing project of Fiesta Communities, Inc. amounting to P1.40B.

This was followed by the tourism facility project of Northgate Hotel Ventures, Inc. amounting to P680 million; Cavendish banana production for exports of Anflo Banana Corp., P216 million; and the tourism facility by Robinsons Land Corp., P195 million.

Under the BOI’s Investments Priorities Plan 2011, priority sectors include agriculture, tourism, ship building, mass housing, energy, infrastructure, research and development, motor vehicles, green projects, creative industries, disaster prevention; and public-private partnership.

The DTI is working closely with the private sector through the National Competitiveness Council (NCC), Federation of Philippine Industries (FPI), Philippine Chamber of Commerce and Industry (PCCI), and the Joint Foreign Chamber in developing industry competitiveness roadmaps as well as policy strategies for inclusive growth.