BOI books record P950-B investment pledges in H1 2024 — DTI

The Department of Trade and Industry (DTI) on Thursday expressed optimism on the country's investment climate despite the double-digit decline in foreign direct investments (FDI) seen in April as the Board of Investments (BOI) booked record investment commitments in the first half of 2024.

In a statement, the DTI said its attached agency, BOI, approved a total of P950 billion worth of investments from January to June 2024.

The amount of approved investments during the period saw a growth of 36% from P698 billion worth of investment pledges approved in the same period in 2023.

The DTI said the BOI's P950-billion approved investments was its highest first semester approval in its 57-year history.

The Trade Department said 30% of the P950-billion approved investments in the first half of 2024 were foreign investments amounting to P286 billion.

Last Wednesday, the Bangko Sentral ng Pilipinas (BSP) reported that the net FDI inflows declined by 36.9% to $556 million in April, from $881 million in April 2023.

The BSP's FDI statistics are distinct from the investment data of other government sources as this covers actual investment inflows, as compared with approved foreign investments sourced from investment promotion agencies representing investment commitments or pledges which may not necessarily be realized fully, in a given period.

Despite the decline in FDA seen in April, the DTI said it remains optimistic given the buildup in the investment pipeline.

"The April decline in FDI is viewed as a temporary setback, primarily influenced by global economic headwinds," said Trade Secretary Alfredo Pascual.

"Our confidence in the Philippine economy remains unshaken, supported by a 19% increase in FDI over the first four months of the year compared to last year. We are also banking on the investment pipeline built from the BOI's high level of foreign investment approvals," Pascual said.

Central bank data also showed that January to April FDI net inflows stood at $3.5 billion, up from $3 billion in the same period last year, which "reflects investor confidence in the Philippine economy's resilience amid global uncertainties."

Renewable energy

Of the approved investments during the first half, the DTI said renewable energy investments significantly dominate the investment landscape; with the electricity, gas, steam, and air conditioning supply sector drawing 96.3% of the total approved investments.

"Among these was a P297 billion investment by Ahunan Power Inc. in CALABARZON (Region 4A)," it said.

In May alone, the DTI said the BOI approved several large-scale projects.

These include Solar Solutions Inc.'s P150-billion project in CALABARZON to expand its solar energy capacity.

The DTI also cited BlueWave Energy's P120-billion initiative for Central Luzon, which would focus on offshore wind energy development.

The Trade Department said CALABARZON captured the lion's share of regional investment approvals amounting to P592 billion, up 262% year-on-year.

The DTI said Western Visayas (Region VI) and Central Luzon (Region III) also saw significant investment approvals.

The Trade Department also cited significant foreign investments during the period such as Germany's Energy Global International's P85 billion investment in a new manufacturing facility in CALABARZON.

Likewise, French firm Hydropower Ventures received approval for a P75-billion investment in hydroelectric power developments in Northern Mindanao.

The DTI said Switzerland is the leading foreign investor, with significant projects such as wind energy developments by Jet Stream Windkraft Corporation and Triconti Southwind Corporation, each investing approximately P115 billion or about $2 billion. — VDV, GMA Integrated News