BOI: Year-to-date investment approvals at P1.35T as of Sept. 16

The Philippine Board of Investments (BOI) on Monday said it has approved P1.35-trillion worth of investments so far this year, marking an 82% increase from the same period last year largely driven by the energy sector.

The approvals surpassed the P1.26-trillion full-year figure for 2023, and are 82% higher than the P741.98-billion approvals in January to September 15, 2023.

The biggest share of approvals came from the energy sector which accounted for P1.29 trillion, followed by real estate activities including mass housing with P20.28 billion, manufacturing with P12.13 billion, and agriculture, forestry, and fishing with P10.05 billion.

“We have identified key sectors — renewable energy, semiconductors and electronics, mining and mineral processing, food and agriculture, pharmaceuticals, and steel — as essential drivers of the country’s growth,” Special Assistant to the President (SAP) for Investment and Economic Affairs Frederick Go said in an emailed statement.

“The approved investments in these sectors illustrate our steady progress in realizing these priorities,” he added.

Filipino companies accounted for P1.01 trillion, reflecting a 221% growth from the same period last year. Calabarzon was the top recipient with P602.63 billion, followed by Central Luzon with P258.68 billion, Western Visayas with P238.88 billion, the Bicol Region with P142.87 billion, and the Ilocos Region with P62.68 billion.

Foreign investments accounted for P341.78 billion, led by Switzerland which contributed P286.77 billion. This was backed by the Netherlands with P39.58 billion, Singapore with P6.18 billion, the United States with P1.68 billion, and Taiwan with P1.30 billion.

“These investments are critical to strengthening the Philippines’ economic foundation. The focus on renewable energy and manufacturing is helping drive sustainable growth, creating thousands of jobs, and improving the quality of life for Filipinos,” Trade Undersecretary and BOI managing head Ceferino Rodolfo said.

“The keen investment interest from both local and foreign investors will propel long-term economic progress and position the country as a global leader in strategic investments,” he added.

Latest data from the Bangko Sentral ng Pilipinas (BSP) show that foreign direct investments (FDIs) — which cover actual investment inflows — posted a $394-million net inflow in June, the lowest in nearly four years, amid uncertainties from geopolitical risks and high inflation and interest rates.

This brought the year-to-date net inflow to $4.435-billion net inflow for the first half of the year, up by 7.9% from the $4.110 billion the same period last year. — RSJ, GMA Integrated News