IPAs-approved investments H1-2013 up 39% to PhP 300.91 B

The country’s four major investment promotion agencies (IPAs) recorded PhP 300.91 billion approved investments for the first semester of 2013, a 39% increase from the PhP 216.19 billion in the same period last year.

Among the four agencies, the Board of Investments (BOI) posted the highest investment commitments worth PhP 201.9 billion, a 22% increase from last year, followed by the Philippine Economic Zone Authority (PEZA) with PhP 83.69billion, a 92% increase compared to last year. Both are attached agencies of the DTI.

Meanwhile, the Subic Bay Metropolitan Authority (SBMA) reported a remarkable 440% increase of approved investments to PhP 13.95 billion this year, a big part of which is from the Php 21.3 billion resort complex, theme park, and golf course projects of Resom Resorts Phils Inc.

On the other hand, the Clark Development Corporation posted PhP 1.37 Billion approved investment on the first half of 2013, a 73% decline which is expected due to repricing the structure of its lease rates and re-evaluation of the optimal use of remaining liable Clark areas.

Local investors led in the BOI and PEZA investment approvals with PhP 193.68 billion, 14% higher from PhP 170.63 billion last year, while foreign investors committed PhP 91.91 billion, up 139% against PhP 38.49 billion last year.

The increase in investment commitments is attributed to the government’s effort to address issues that affect the business sector, such as corruption, infrastructure and the business environment leading to improved investor confidence in the country.

The top five sources of foreign investment commitments on the BOI and PEZA approval list was topped by the United States with PhP 43.64 billion, followed by British Virgin Islands with PhP 20.62 billion.

Japan ranked 3rd hitting PhP 9.34 billion while investment pledges from Netherlands and Australia also increased in the first half of 2013 with PhP 5.99 billion and PhP 2.19 billion, respectively, beating previous performers such as South Korea, Singapore and People’s Republic of China.

Once fully operational, the investments registered with the IPAs in the first half of 2013 is expected to generate 77,892 more jobs, a 17% increase from 66, 416 jobs committed during the same period last year. (END)

Source: DTI Public Relations Office

BOI-approved investments up 22% in H1 2013 : Foreign Pledges Surge by 352%

The Board of Investments (BOI) posted investment approvals of Php201.9 billion in the first half of 2013, up 22% from the Php165.5 billion during the same period last year.

While approved investments from local investors reached Php154.8 billion, a slight decline of 0.18% from last year’s, foreign investment commitments in the country increased by 352% to Php47.1 billion compared to last year’s Php10.4 billion.

“The mid year figures show a remarkable increase in foreign participation in BOI approved projects - a clear sign of growing foreign investor confidence in our economy,” said DTI Undersecretary Adrian S. Cristobal Jr., Managing Head of the BOI.

The increase in investment approvals came largely from the approval of big power projects led by the Php41.23 billion, 600 megawatt (MW) plant of GNPower Ltd. Co. in Bataan, followed by the 300 MW -coal-fired power project of San Miguel Consolidated Power Corp. in Malita, Davao del Sur (Php25.84 billion), and SMC Consolidated Power Corp’s300MW coal-fired power plant in Limay, Bataan (Php 25.51 billion).

For the first half of 2013, the BOI approved a total of 19 energy projects worth Php 159 billion and expected to generate 2,064 MW.

According to Undersecretary Cristobal, the approved BOI projects also show improved “strategic focus, with “investments being channeled to underdeveloped geographic areas of the country and into critical sectors.”

In the first half of 2013, the share of approved investments in Mindanao increased to Php 71.23 billion or 35% of the total, up from the Php 7.27 billion or 4.4% in the same period of 2012. Investments projects approved include coal-fired power plants, hydropower and solar plants,

palm oil manufacturing and processed and canned fish production. These projects will contribute particularly to the reduction of power cost in the Mindanao Island, exploit its agribusiness potentials and generate additional employment.

Approved power projects are critical in lowering electricity cost in the country, a key deliverable that cuts across the sectoral roadmaps being prepared by the BOI and industry associations. Addressing the issues of power costs is also important in sustaining the recent impressive performance of the manufacturing sector which grew by 20.4% in May 2013 compared to May 2012 per National Statistics Office (NSO) figures.

By sector, the Electricity, Gas, Steam and Air Conditioning Supply sector provided the biggest share of approved investments with Php159.5 Billion or 79% of the total. Real Estate Activities followed with Php26 Billion or 13% of the total, Transportation and Storage sector with Php5.7 Billion or 3% of the total , Accommodation and Food Service Activities Sector which include hotels, resorts and other accommodation facilities with Php4.2 Billion and Manufacturing with Php3.4 Billion. (END)

Source: DTI Public Relations Office

BOI: Industry Roadmaps on Track

With majority of the sectoral roadmaps completed this year, the Board of Investments is confident that the roadmaps are moving forward and on the track in its implementation.

As of July 30, twenty (20) out of the 32 industries or sectors that have expressed interest to participate in the project, have already submitted their roadmaps, in which the formulation was facilitated by the state think-tank Philippine Institute for Development Studies (PIDS). Among the list of 32 participants, five roadmaps are set to be finalized by 2013, while seven sectoral roadmaps have just been commissioned by their respective industries.

Several sectors have been moving forward in its implementation such as the auto assembly and auto parts manufacturing sector, which is currently working on the details of policy interventions of the proposed auto policy, while the mass housing sector has submitted a position paper to Bureau of Internal Revenue (BIR) regarding revenue regulations concerning housing developers, and conducted regional roadshows as part of the advocacy on the revised implementing rules and regulations (IRR) of Section 18 of RA 7279 or the Balanced Housing Requirement Act for the proper implementation of guidelines. The mass housing sector has also conducted cluster meeting with the cement, ceramic, and copper sectors to identify possible areas of collaboration.

Meanwhile, the chemical sector, including the petrochemicals and plastics, have submitted position papers to the Food and Drug Administration (FDA) on codification, licensing , and product registration procedures, product categorization, and labelling requirements, to facilitate registration and harmonize labelling requirements with consumer products, and to Department of Environment and Natural Resources-Environmental Management Bureau (EMB) on the rules and regulations affecting the industry to streamline compliance with labelling, import certification and chemical control orders.

Other sectors have also shown significant progress such as the furniture sector, in which they prepared a Product Development and Sourcebook for launching in September, submitted a proposal to DTI for shared services facility in the proposed Furniture Academy, and currently coordinating with government agencies such as DENR to negotiate the grant of land for raw material supply and Technological Education and Skills Development Authority (TESDA) to resume conduct of furniture trainings.

The copper and copper products sector, likewise prepared a pre-feasibility study on the creation of a copper wire facility and identified Leyte Industrial and Development Estate (LIDE) in Isabel, Leyte as proposed industry cluster zone. The information technology-Business Process Management (IT-BPM) sector is currently developing promo collaterals specific to the media and investors.

On the other hand, the sectors of cement, ceramic tiles, iron and steel and biodiesel are on the process of filling information gaps in their roadmaps and created technical working groups to address such issue.

The electronics, creative, and bamboo sectors have submitted their draft roadmaps to BOI while the shipbuilding, garments and textile, mining, medical travel, and processed food sectors have just commissioned the drafting of their respective roadmaps. (END)

Source: DTI Public Relations Office

PH enjoys sustained investor confidence

The soaring number of inbound investment missions facilitated by the Department of Trade and Industry-Board of Investments (DTI-BOI) shows the strong investor confidence in the Philippines.

“The DTI-BOI recorded a total of 363 companies and organizations inbound missions in the country for the first semester of this year,” DTI Undersecretary Ponciano C. Manalo, Jr. said.

This includes 95 individual company and agency visits, and 18 multi-company and delegation missions, representing 268 companies and organizations.

Manalo noted this is already 71.3 percent of last year’s recorded inbound visits in the country.

“In these missions, there is notably increased interest from European countries, and sustained interest from the USA,” Manalo said.

The USA topped the country origin of these visits for the first semester of 2013. It is followed by Japan, India, Australia, and Malaysia.

“In terms of industry classification, information technology (IT), business process management (BPM), and manufacturing are the main sectors of interest of these visiting firms,” Manalo said.

These sectors are followed by energy, construction, automotive. Additional sectors of interests include garments, electronics, tourism, oil and gas, shipbuilding and aerospace.

From these inbound visits, six projects were immediately translated to tangible investments. These realized projects amounted to around US$87.2 million in terms of project cost, and is expected to generate over 1,500 jobs.

“The increasing trend of inbound delegation and company visits can be attributed to our successful outbound business missions and the proactive support of our foreign trade and investment promotions posts and embassies,” Manalo said.

He added the continued positive perception and sustained business confidence of the global business community with the present administration, sustained interest on the strengths of the Filipino workforce, and the country’s fast growing economy also contributed to the influx of inbound business missions.

“Given the current investment climate, we are expecting more investment upgrades in coming months,” Manalo said.

In March 2013, the Philippines got its first investment grade credit rating as international debt watcher Fitch Ratings upgraded its long-term foreign currency issuer default rating (IDR) to BBB- from BB+ with a stable outlook. In May 2013, Standard & Poor’s also raised the country’s credit rating by a notch from BB+ to BBB-, with a stable outlook.

He also said the prevailing economic crisis in USA and Europe paved the way for investors to look at other regions, particularly Asia as the preferred business destination. (END)

Source: DTI Public Relations Office