Wednesday, January 4, 2012
BOI registers P368.9B investments - up by 35%
The Board of Investments (BOI) registered P368.9B investments for 2011, a significant 35% increase in terms of number of projects approved and 22% increase in growth value compared to last year’s P302B.
The investment numbers likewise reflect economic optimism earlier expressed by Trade Secretary Gregory L. Domingo towards a better year in 2012 noting that the country has moved forward from the global incidents and its challenges in 2011.
Investment commitments breached the year’s target with a total of 332 projects compared to 246 in 2010. These projects are expected to boost employment opportunities by 67,211 jobs once operational, almost double last year’s 36,751 jobs.
“These figures represent a renewed confidence in the reforms instituted by the present administration and in our country’s strong macroeconomic fundamentals. We are committed to sustaining and increasing investments in the next few years with a sharper focus on developing industry roadmaps,” said Undersecretary and BOI Managing Head Adrian S. Cristobal Jr.
Overall business sentiment improved in the fourth quarter, according to a report from the Bangko Sentral. Macroeconomic indicators likewise remained stable with inflation at 4.8% level; stable peso-dollar exchange rates, and gross domestic product (GDP) remained at positive level, although slightly weakened by slow exports demand.
In 2011, local investments saw an unprecedented growth level at P345.696B, while commitments from foreign investors amounted to P23.235B.
“Remarkable growth in investments came from local businesses, generated by a larger demand from the domestic market. Their increased stake in the economy reinforces overall investor confidence which will attract more local and foreign infusions,” added Undersecretary Cristobal.
Top performing sectors that generated majority of the investments in 2011 were low cost mass housing, P72.688B with net value added of 85% to 99%, including raw materials such as bathroom and kitchen fixtures as well as elevators and generators. Other high performing sectors in terms of investments were energy, with total approved investments of P87.785B; and mining, P63.286B.
Other key investment commitments for the period were tourism projects, P10.832B and agriculture, P1.917B.
“We want to balance this portfolio by attracting more investments in agriculture and tourism in line with the Philippine Investments Priorities Plan,” added Undersecretary Cristobal.
Under the BOI’s Investments Priorities Plan 2011, priority sectors include agriculture, tourism, ship building, mass housing, energy, infrastructure, research & development, motor vehicles, green projects, creative industries, disaster prevention; and public-private partnership.
The biggest chunk of investments for the year went to Central Luzon at 22% generating P82.851. The others were in the National Capital Region, 20%; Region 4 (Southern Luzon), 13%; Region 13 (Caraga), 13%; and Region 11 (Southern Mindanao), 10%.
Foreign investment projects approved came mostly from Japan, P6.059B followed by the Netherlands, South Korea, United States, and China.
The growth in investment projects approved for the manufacturing sector, amounting to P104.758B showed a significant increase of 122% from last year’s P47.178B. Investment projects include those in petroleum products, basic metals, motor vehicles, non-metallic mineral products, and food products.
“The manufacturing sector is a proven catalyst in employment generation. We will maximize this sector’s opportunities with a comprehensive roadmap and milestones to market their progress and development, along with other key sectors of the IPP,” explained Undersecretary Cristobal.
He also reported that BOI is currently revisiting its policies and incentive framework to ensure that the business environment will sustain more domestic and foreign investments in the coming years. Reden Miranda, PRO-DTI