Buoyed up by the remarkable investments approved in April 2016, investments approved by the Philippine Board of Investments (BOI) in the first four months of the year reached P117.26 billion, up by 64 percent compared to the P71.62 billion posted in the same period last year. These were generated from 101 projects and are expected to create 16,366 additional jobs, once fully operational.
For the month of April alone, a total of P55.33 billion was generated, which recorded a remarkable 225 percent increase compared to the P17 billion generated for the same month in 2015.
Among the big ticket projects approved in April include GMR Megawide Cebu Airport Corporation (with Php16.75 Billion), a PPP project for the Cebu International Airport Project (Phase 2 – operation and maintenance of Terminal 2); Light Rail Manila Corporation (LRMC) (Php15.15 Billion), modernization of the existing system – operations and maintenance of Manila LRT 1 Integrated Railway System Project; and Cordillera Hydro Electric Power Corporation (Php12.18 Billion), renewable energy developer of 60MW Kapangan Hydroelectric Project in Benguet.
“The remarkable growth in the agency’s investment approvals is spectacular, given the sluggish global economy,” said Trade Undersecretary and BOI Managing Head Ceferino Rodolfo. “The significant growth in investments was mainly driven by infrastructure and power sectors, elevating the country’s productive capacity to further grow at higher rates,” he said. “Equally significant, these infrastructure and power projects are dispersed across the country, ensuring support for future growth in areas outside of the National Capital Region,” he added.
On a sector level, electricity, gas, steam and air conditioning supply recorded the largest share of investment commitments at P48.97 billion (42 percent), followed by the construction sector with P31.90 billion (27 percent), real estate activities, specifically, the economic and low-cost housing sub-sector with P19.61 billion (17 percent), transportation and storage with P10.06 billion (nine percent); and manufacturing with P5.97 Billion (five percent).
Major manufacturing sub-sectors, based on their respective shares to total investment approvals in the first four months include food products (P5.16 billion or 86.5 percent share); motor vehicles, trailers and semi-trailers (P122.59 million or 2.1 percent share); leather and other related products (P62.01 million or 1 percent share); wearables and apparel (P24.66 million or 0.4 percent); and other manufacturing products (P593.77 million or 10 percent share).
Of the total investment approvals, 84 percent or P98.54 billion came from local investors and the remaining 16 percent or P18.73 billion from foreign sources.
Singapore was the top foreign investor with P8.22 billion, accounting for 44 percent share of the total investments from foreign nationals, followed by the Netherlands with P5.96 billion (32 percent share); British Virgin Islands with P2.02 million (11 percent share); United States with P604.54 million (3 percent); and United Kingdom with P505.49 million (3 percent share).
On the domestic front, the National Capital Region tops the list of regions with the highest total investments worth P35.04 billion or 30 percent share to total approved investments, followed by Region 7 with committed investments worth P17.25 Billion, accounting for 15 percent of total investment approvals. Significant investments were also directed to Regions 1 (P14.73 billion or 13 percent share); Cordillera Administrative Region (P12.33 billion or 10 percent share); 3 (P9.47 billion or 8 percent share); and 4A (P6.65 billion or 6 percent share).