Investments breach ₱1-T level as of Oct.

Published December 5, 2019, 12:00 AM

by manilabulletin_admin

By Bernie Cahiles-Magkilat

Committed investments registered with the Board of Investments (BOI) in the first ten months of the year already breached the ₱1-trillion mark, the highest ever in the agency’s 52-year history.

boi graph

Trade and Industry Secretary and BOI Chairman Ramon M. Lopez reported that as of October this year the country’s lead investments and industry promotions agency approved a total of ₱1.040 trillion worth of new committed investments, exceeding the agency’s ₱1-trillion target for the year.

“For the third successive year, the BOI has surpassed expectations in setting a new benchmark for investments. This validates the country’s position as among the top investment destinations globally,” Lopez said.

The January-October 2019 figure was up nearly three folds with a 139.6 percent leap from last year’s ₱434 billion in the same period. Local investments hit ₱709.1 billion, up a solid 78.2 percent while foreign investments accounted for ₱330.9 billion, a nine-fold upgrade (818.2 percent) from just ₱36 billion in 2018.

Singapore remained the country’s biggest source of foreign investments to date with ₱170 billion in capital infusion. China is now second with P84.9 billion.

South Korea nabbed third with ₱39.1 billion. Netherlands (₱9.1 billion), Thailand (P8.8 billion), Japan (₱6.2 billion) and the United States (₱2.5 billion) are also among the biggest investors.

All projects upon start of operations will create 52,554 jobs, a robust 41.6 percent improvement from last year’s 37,112 in the first 10 months. For October alone, total projects reached ₱275.2 billion, a 351 percent improvement from October last year.

Investments from the information and communications (IT) sector is turning out to be the juggernaut as it posted committed investments of ₱518.8 billion to date, nearly half of the total figure.

“We are playing catch-up with our Asian neighbors in upscaling our digital infrastructure as we build more cellular towers and improve our internet speed across the archipelago. As you know, internet traffic is going to grow exponentially since we are already the world’s top social media user according to a recent report,” said BOI Managing Head Ceferino S. Rodolfo.

This development complements the consistent growth of the domestic manufacturing sector with ₱78.8 billion in approvals or a 29.2 percent increase from ₱61 billion last year.

The power sector continued a steady growth with ₱383.2 billion or a 119.3 percent jump from ₱174.7 billion a year ago. As we develop, demand for power continues to go up.

Tourism remains a bright spot as the accommodation and food service sectors recorded ₱9.5 billion worth of investments for a 187.9 percent increase from last year’s ₱3.3 billion.

Tourism is among the biggest job creators in our country along with manufacturing.