BOI hits record-high investment approvals of P1.16T in 2023

The Philippines' Board of Investments (BOI) has approved a total of P1.16 trillion worth of investment commitments from January to December 2023—the highest ever in the investment promotion agency's 56-year history.

In a statement on Wednesday, the BOI said the all-time high investment approvals were recorded as of Dec. 18, 2023.

The P1.16-trillion approved investments from January to December surpassed the previous record-high of P1.14 trillion seen in pre-pandemic 2019, marking the third time that the BOI surpassed the trillion-peso mark in investment approvals.

The second time was in 2020 when the agency saw P1.02 trillion worth of investment pledges approved, despite the challenges posed by the COVID-19 pandemic.

This year's record was also 59% higher than the P729.1-billion approved investments recorded in 2022.
The BOI said the P1.16-trillion investments approved came from a total of 303 projects seen to generate 47,195 jobs.

"The BOI hitting P1.16T for 2023 reaffirms strong investor confidence in the Administration of President Ferdinand R. Marcos Jr.—their responsiveness to the Policy initiatives of the President and the effectiveness of the aggressive investment promotion activities under the Make It Happen in the Philippines campaign," said Trade Secretary and BOI chairman Alfredo Pascual.

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"With this remarkable milestone, we are all-the-more optimistic about opportunities that lie ahead in 2024, with the BOI poised to further catalyze smart- and sustainability-driven investments in the country," said Pascual.

The BOI added that 2023's performance also exceeded the official P1.151-trillion target for approved investments this year.

The agency said Germany emerged as the leading source of foreign investments, contributing P393.28 billion, followed by the Netherlands at P333.61 billion, Singapore at P17.38 billion, and the United States at P3.38 billion.

In terms of destination domestic regions, the BOI said Western Visayas was the top recipient of investments at P316.89 billion, followed by CALABARZON taking up P211.89 billion of investment commitments.

The Bicol Region (162.92 billion), Eastern Visayas (P128.62 billion), and Ilocos Region (P122.18 billion) complete the top five investment region-destinations.

The BOI said domestic investment approvals reached P398.76 billion, making up 34% of total approved investments for the year.

Foreign investments approvals, meanwhile, surged to P763.22 billion, a 452%-jump from P138.18 billion in 2022.

The Renewable Energy and Power sector continues to dominate the Philippine investment approvals landscape, raking in P968.14 billion of the investments approved.

The figure was 137% higher than last year's P409.03 billion for the sector.

Projects approved for January to December include seven offshore wind power projects in Cavite, Laguna, Dagupan, San Miguel Bay, Negros, and Northern Samar amounting to P759.84 billion, according to the BOI.

The Information and Communication sector also saw strong growth, securing approvals amounting to P96.16 billion.

Manufacturing, likewise, saw P22.03 billion in approved investments.

The Infrastructure sector, mainly toll roads, saw P20 billion in investment approvals; while the Real Estate Activities, specifically in mass housing, saw P15.63 billion worth of investments.

"There are three more projects worth about P350 billion that are currently being assessed and, if they are able to comply with both the substantive and transparency requirements, they may be able to make it to the BOI Board and Mancom deliberations on December 28th—our last for the year. While BOI is the private sector's strongest partner in promoting Ease of Doing Business in the country, we remain a prudent administrator of fiscal incentives," said Trade Undersecretary and BOI Managing Head Ceferino Rodolfo. — VDV, GMA Integrated News