BOI investment pledges jump 203% in H1
Published Jul 18, 2023 06:10 am
The Board of Investments (BOI) reported that it approved 155 projects with combined investment pledges of P698 billion in the first half this year for a dramatic 203 percent increase versus the P230 billion in the same period in 2022 with renewable energy projects accounting for the bulk of the new approvals.
Based on the BOI data, the 155 approved projects are expected 43 percent higher than the 108 approvals in the same period last year. The new investment pledges are also expected to generate 15,301 new jobs.
Notably, of the total BOI approvals, foreign investments accounted for 60 percent of total to P423 billion, a 52-fold increase from just P7.89 billion in the first half of 2022. Investments by Filipinos contributed P275 billion or 24 percent higher than the P222 billion last year.
Germany topped as top foreign investors with P393 billion, followed by Singapore (P16.8 billion), the Netherlands (P3.57 billion), France (P2.04 billion), and the United States (P1.9 billion).
In terms of regional dispersion, investments in Western Visayas ranked first at P306 billion, with CALABARZON taking up second place at P164 billion. Further, Ilocos Region (P55.5 billion), Central Luzon (P28.7 billion), and National Capital Region (NCR) (P25.6 billion) completed the top five regions.
The renewable energy/power sector made up the bulk (76.83%) of total investment approvals, with 30 projects in solar, wind, hydropower, and biomass projects totaling to P536.5 billion. Information and Technology projects are likewise on the upswing with 8 projects worth P95.5 billion in approvals, mostly to finance telecommunication towers and the ITBPM sector. There were also 5 Transportation and storage projects (P21.3 billion) that came in, as well as 21 projects in manufacturing (P16.1 billion) and 11 in agriculture (P6.4 billion).
The biggest project approved by BOI in the month of June is Filipino-owned ISON Tower’s P58.7 billion telco project. ISON Tower will build and operate 4,600 Build-to-Suit (BTS) towers (Ground Based Towers and Roof Top Towers) and offer tower sharing services for MNOs (Mobile Network Operators).
The increase in telecommunications infrastructure in unserved/underserved areas will provide more Filipinos access to the internet. With more infrastructure in place, there may be lower operating costs for MNOs which would ideally lower the charges passed to consumers.
Trade and Industry (DTI) Secretary Alfredo E. Pascual, who is also BOI chairman, said the projects only affirmed that the Philippines is becoming Asia’s premier investment destination. “The signs are emerging. Foreign investment pledges are at a record high,” said Pascual.
The BOI anticipates a continuous influx of investments throughout 2023, building upon the momentum of the first semester.
With the bullish investment prospects, the premiere investment generating agency expressed confidence that it is on track to achieving its P1.5 trillion target in investment approvals this year.
"The increasing number of investments approvals reflect the growing attractiveness of the Philippines as an investment destination and highlights the country’s potential for further economic growth and development. The successful and speedy implementation of investments means more stable and higher-paying jobs for Filipinos without unnecessary delays,” added Pascual.
With significant measures taken by the Government to significantly improve ease of doing business in the country, the Philippines is certain to become a compelling destination for foreign direct investments.
Pascual also cited the recent launch of the Executive Order No. 18 Constituting Green Lanes for Strategic Investments is meant to expedite, streamline, and automate government approval and registration processes for priority or strategic investments.
Based on the BOI data, the 155 approved projects are expected 43 percent higher than the 108 approvals in the same period last year. The new investment pledges are also expected to generate 15,301 new jobs.
Notably, of the total BOI approvals, foreign investments accounted for 60 percent of total to P423 billion, a 52-fold increase from just P7.89 billion in the first half of 2022. Investments by Filipinos contributed P275 billion or 24 percent higher than the P222 billion last year.
Germany topped as top foreign investors with P393 billion, followed by Singapore (P16.8 billion), the Netherlands (P3.57 billion), France (P2.04 billion), and the United States (P1.9 billion).
In terms of regional dispersion, investments in Western Visayas ranked first at P306 billion, with CALABARZON taking up second place at P164 billion. Further, Ilocos Region (P55.5 billion), Central Luzon (P28.7 billion), and National Capital Region (NCR) (P25.6 billion) completed the top five regions.
The renewable energy/power sector made up the bulk (76.83%) of total investment approvals, with 30 projects in solar, wind, hydropower, and biomass projects totaling to P536.5 billion. Information and Technology projects are likewise on the upswing with 8 projects worth P95.5 billion in approvals, mostly to finance telecommunication towers and the ITBPM sector. There were also 5 Transportation and storage projects (P21.3 billion) that came in, as well as 21 projects in manufacturing (P16.1 billion) and 11 in agriculture (P6.4 billion).
The biggest project approved by BOI in the month of June is Filipino-owned ISON Tower’s P58.7 billion telco project. ISON Tower will build and operate 4,600 Build-to-Suit (BTS) towers (Ground Based Towers and Roof Top Towers) and offer tower sharing services for MNOs (Mobile Network Operators).
The increase in telecommunications infrastructure in unserved/underserved areas will provide more Filipinos access to the internet. With more infrastructure in place, there may be lower operating costs for MNOs which would ideally lower the charges passed to consumers.
Trade and Industry (DTI) Secretary Alfredo E. Pascual, who is also BOI chairman, said the projects only affirmed that the Philippines is becoming Asia’s premier investment destination. “The signs are emerging. Foreign investment pledges are at a record high,” said Pascual.
The BOI anticipates a continuous influx of investments throughout 2023, building upon the momentum of the first semester.
With the bullish investment prospects, the premiere investment generating agency expressed confidence that it is on track to achieving its P1.5 trillion target in investment approvals this year.
"The increasing number of investments approvals reflect the growing attractiveness of the Philippines as an investment destination and highlights the country’s potential for further economic growth and development. The successful and speedy implementation of investments means more stable and higher-paying jobs for Filipinos without unnecessary delays,” added Pascual.
With significant measures taken by the Government to significantly improve ease of doing business in the country, the Philippines is certain to become a compelling destination for foreign direct investments.
Pascual also cited the recent launch of the Executive Order No. 18 Constituting Green Lanes for Strategic Investments is meant to expedite, streamline, and automate government approval and registration processes for priority or strategic investments.