BOI-approved investments hit P1.2 trillion

MANILA, Philippines — Projects approved by the Board of Investments (BOI) hit an all-time high of P1.26 trillion in 2023, with the bulk coming from foreign sources.

For this year, Trade Secretary Alfredo Pascual said the BOI projects to exceed total investments approved in 2023, even as the agency’s official commitment or target for investment approvals for 2024 is at P1.1 trillion.

Trade Undersecretary and BOI managing head Ceferino Rodolfo, in a press conference, said that total approved investments in 2023 hit P1.26 trillion, the highest on record and 73 percent higher than the P729.1 billion in 2022.

This figure also exceeded the P1.151 trillion target approved by all investment promotion agencies for 2023 and the BOI’s official goal of P995.59 billion for last year.

Pascual clarified that the BOI’s official goal or commitment for approved investments in the 2023 National Expenditure Program is at P995.59 billion, while the P1.5 trillion cited earlier in reports was an “aspirational“ and “internal” target of the agency.

Rodolfo said the total approved investments for 2023 could have been higher at P1.6 trillion, but the BOI withheld official action on some projects that were unable to comply with publication and documentary requirements.

The BOI-approved investments for 2023 consist of 311 projects, a 28 percent increase from the previous year.

At full operation, the projects are expected to create 49,030 jobs.

Pascual said the investment approvals figure for 2023 “is indicative of how the Philippines is becoming attractive to foreign investors.”

Of the total investments approved by the BOI last year, foreign investments accounted for 61 percent, which amounted to P766.97 billion, posting a substantial growth of 455 percent from just P138.18 billion in 2022.

Germany was the top source of foreign investments last year, contributing P393.28 billion.

This was followed by the Netherlands with P333.61 billion, Singapore (P21.45 billion), the US (P3.55 billion)and the British Virgin Islands (P2.13 billion).

Domestic investments approved by the BOI, meanwhile, had a 39 percent share amounting to P493.23 billion last year.

By sector, renewable energy and power had the biggest share in BOI-approved investments last year with P987.12 billion, a 141-percent surge from P409.02 billion in 2022.

Information and communication placed second as it secured P96.04 billion in investment approvals, followed by mining with P79.19 billion, manufacturing with P22.05 billion, and infrastructure (toll roads) with P21.47 billion.

Among the regions, Western Visayas was the top recipient of investments at P316.89 billion, marking a 4,663-percent increase from 2022.

Calabarzon ranked second with P222.76 billion worth of investments, while the Bicol Region (P162.92 billion), Eastern Visayas (P128.62 billion) and Ilocos Region (P122.18 billion) completed the list of the top five regions.

“Hopefully, we exceed what we were able to achieve in 2023,” Pascual said.

Rodolfo said the BOI expects investments in renewable energy as well as renewable energy equipment manufacturing and mineral processing this year.

In terms of foreign investments, he said “we still see a big number coming from Europe.”

Aside from Europe, the BOI expects investments to come from South Korea following the signing of the Philippines’ free trade agreement with that country.

The BOI also expects investments from the US, Japan and China.