Approved investments in the manufacturing sector surged by 77.5% from last year’s PHP 13.8 billion to PHP 24.5 billion this year, according to the Board of Investments (BOI).
Close to PHP 24 billion worth of manufacturing projects were approved by the BOI in 2014, with all its subsectors registering triple digit increases led by food products, beverages, basic metals, motor vehicles, coke and refined petroleum products, fabricated metal products, and wood and other products of wood.
Huge increases in investment pledges were recorded in basic metals (6,651%), beverages (802%), electrical equipment (320%), rubber and plastic products (281%), and motor vehicles (269%). Other subsectors with increased investment approvals are in textiles (100%), paper and paper products (100%), and other non-metallic mineral products (100%).
The surge in manufacturing contributed substantially to the sharp rise of anticipated direct jobs from BOI approved projects despite the lower amount of total approved investments in 2014 of PHP 354.5 billion compared to PHP 466.03 Billion in 2013, a decline of 24%. More projects were approved this year, which are expected to generate an estimated 58,619 jobs over the next few years – a 54% jump from 38,100 approved last year.
Implementing the various industry or sectoral roadmaps crafted by the private sector in partnership with the government contributed to building investor confidence in the country for sustainable investments, particularly in manufacturing, according to the BOI. Lower total investment approvals, on the other hand, were recorded in the Electricity, Gas, Steam and Airconditioning Supply Sector, Transportation and Storage and Mining activities, among others.
The BOI initiated a strategic collaboration with the private sector in 2012 to formulate sectoral roadmaps with the industry’s vision and goals for the short, medium and long-term. Subsequently, the BOI created Technical Working Groups to assist the industries. The Industry Development Council was revived this year to support the development and implementation of these roadmaps. The industry roadmaps, particularly the Manufacturing Industry Roadmap (MIR) serve as the backbone of the MRP.
To date, thirty (30) industry roadmaps have been submitted to the BOI, of which, 25 roadmaps have been completed. These sectoral roadmaps not only complement the Manufacturing Industry Roadmap (MIR) but also serve as essential components of the Comprehensive National Industrial Strategy (CNIS). The MIR, finalized in 2013, consolidates the roadmaps submitted while the CNIS is envisioned to be the blueprint for the overall industrial development strategy and will cover agriculture, manufacturing, and services.
Domestic investments approved by the BOI for the year totaled Php317.69 Billion or 90% while the remaining 10% or Php36.85 Billion came from foreign sources. The Electricity, Gas, Steam and Air Conditioning Supply Sector continued to record the biggest share of the total investments with Php174.7 billion. Other performers were Construction (Php64 billion), Mass Housing (Php47.7 billion), Manufacturing Sector (Php24.5 billion) and Transportation and Storage ice Activities (Php20.8 billion).
The biggest approved projects for the period include St. Raphael Power Generation Corporation, GNPower Kauswagan Ltd. Co., and Vertex Tollways Development Inc. St. Raphael Power Generation Corporation will build two 3 megawatts MW coaled power fired plants in Balayan and Calaca Batangas, worth Php 63.17 billion. GNPower Kauswagan Ltd. Co. will construct a 540 MW coal-fired plant in Lanao del Norte worth Php50 billion while Vertex Tollways Development Inc. will construct the NAIA Expressway Phase 2 worth Php 23.43 billion.
NCR is the preferred destination of investments for the year with P116 billion, a 215% surge from last year’s P36.8 billion. Region 4 came in a close second at Php112.4 billion, a 26% increase from last year’s Php89.4 billion. Other top investment destinations include Region 10 (Php59 billion), Region 6 (Php22.3 billion) and Region 3 (Php10 billion). (END)