DTI: $14-B investments actualized from Marcos' trips

Forty six projects worth $14.2 billion in foreign investments have already been actualized from the trips of President Ferdinand "Bongbong" Marcos Jr. in various countries over the past 16 months, the Presidential Communications Office said.

Citing data from the Department of Trade and Industry (DTI), the PCO said that a total of $72.2 billion in investments at different stages, which comprised 148 projects, were recorded as of December 2023.

Of these initiatives, 46 projects involving $14.2 billion or 20% of the total pledges, have been "actualized," meaning that these are already operating, and/or have completed the process of registering the project with DTI's Investment Promotion Agencies, or have commenced implementation.

These investments are in manufacturing, IT-BPM, renewable energy, infrastructure, transport and logistics, agriculture, and retail sectors.

"Investment pledges from foreign firms during the presidential visits over the past 16 months are now being actualized substantively and tangibly, boosting the position of the Philippines as a premier investment destination for foreign businesses in Asia," the PCO said.

"Notably, the presidential visits of President Ferdinand R. Marcos Jr. have been pivotal in generating serious investment interest in the Philippines. The President visited key countries, introducing to specific investor communities his overall vision and policy direction of opening up the country to more foreign investments, including implementing game-changing legislation under his term,"  the PCO added.

DTI's data showed that manufacturing comprised the largest share in terms of the number of projects, involving 16 projects (equivalent to 35%). Next was information technology and business process management (IT-BPM) with 10 projects (22%), and renewable energy with nine projects (20%).

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Meanwhile, Japan was identified as the most significant country as an investment source based on number of projects. Japan has 21 projects that have been actualized, followed by the US with 13.

Foreign investors are also still conducting pre-implementation and planning activities in their respective countries for the remaining 102 projects, involving $58 billion in investment pledges, according to DTI.

While some investment projects seamlessly progress from commitment to operation, the PCO said others need an extended implementation period of up to seven years in case of offshore wind and major physical infrastructure projects.

"The investment flows into the country in phases over the implementation period, during which the project transitions into operational status and begins generating revenues," it said.

The PCO also explained that the duration of the implementation period depends on the sector to which a particular project belongs.

"Due to relatively shorter implementation periods, investment commitments from the presidential visits in the ... IT-BPM sector and in light manufacturing have mostly become operational," the PCO said.

"While the FDI (foreign direct investment) values are modest, the early actualization of investment commitments in these sectors contributes to the decrease in the unemployment rate in the Philippines, given that IT-BPM and manufacturing are significant generators of direct employment," the PCO added.

For his part, DTI Secretary Alfredo Pascual said the agency will leverage each presidential visit as a "springboard for building up a pipeline of investment opportunities and making the Philippines an investment destination of choice."

Since assuming the presidency on June 30, 2022 and until end-2023, Marcos went abroad 19 times —11 over the past 12 months of last year. — VDV, GMA Integrated News