BOARD OF INVESTMENTS (BoI) has approved a total of P1.58 trillion in investment pledges since November, putting it on track to reach its P1.6-trillion annual target.
In a statement on Wednesday, the Department of Trade and Industry (DTI) said the total investment approved in the first 11 months represented 98.7% of its annual target.
Year-on-year, investment pledges approved by the BoI increased by 43.6% from P1.1 trillion.
Approved investments are mainly in the renewable energy (RE) sector, amounting to P1.35 trillion. This was a 48% increase compared to last year.
The government saw an increase in RE projects after it allowed full foreign ownership in the sector, which had reached 40%.
Other top-performing sectors are air and water transportation, which attracted P121.2 billion in investment; wealth at P34.67 billion; production at P30.4 billion; and water supply, sanitation, waste management, and maintenance for P16.28 billion.
About R10.5 billion of investment pledges are in agriculture, forestry, and fisheries projects; P8.25 billion for retail and retail projects; and P7.26 billion for the information technology and business process management sector.
Of the total, P1.2 trillion came from local investors, while P379.31 billion came from foreign investors.
The major international sources were Switzerland, the Netherlands, Japan, South Korea, Singapore, Thailand, and the United States.
“This growth is fueled by a significant 254% increase in domestic investment, with Filipino companies investing P1.06 trillion,” the DTI said.
“The province of Calabarzon leads with P623.19 billion, followed by Central Luzon with P277.08 billion and Western Visayas with P245.95 billion,” it added.
Secretary Frederick D. Go said that strong investment in key sectors shows continued progress in achieving the country’s priorities.
“This growth is fueled by the government’s efforts to implement investor-friendly policies – such as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act,” said Mr. Go.
Last month, President Ferdinand R. Marcos, Jr. signed into law the CREATE MORE Act, which also lowered the corporate income tax to 20% from 25% for registered businesses.
Mr. Go, who holds the OffSnow, the Special Assistant to the President for Investment and Economic Affairs, said the law improves the country’s competitiveness in attracting local and foreign investors.
“These efforts are critical to sustaining our country’s strong economic growth and ensuring that the Philippines remains a prime investment destination,” he added.
Meanwhile, the Secretary of Commerce Ma. Cristina A. Roque says the increase in investment is due to the confidence of investors in the Philippines.
“These statistics underscore our commitment to sustainable economic growth that transforms the Philippine economy. We are focused on creating a virtuous cycle of growth by empowering the private sector with market-based tools,” he said.
“This supports the ‘Philippines’ by continuing to improve the investment climate, sending clear signals that ‘We make it happen in the Philippines,'” he added. – Justine Irish D. Tabile
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