BOI-approved investments create new jobs

Investments approved by the Philippine Board of Investments (BOI), the industry development and investments promotion arm of the Department of Trade & Industry (DTI), reached P366.74 billion in 2015, up by 3% from the P354.76 billion posted in 2014. The aggregated investment approvals were generated from 358 projects. BOI expects a total of 58,252 new jobs when these investments become fully operational.

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The increase in investments was attributed mainly to the approval of big power projects including Olympia Violago Water & Power Ltd. Co., San Buenaventura Power Ltd. Co., and Semirara Mining and Power Corporation.

Overall, energy related investment projects aggregated a total of P246.42 billion from 55 projects and with generating capacity of 2,095.92 megawatt (MW) posted during the period. These were comparatively higher from last year’s record of P174.69 billion from 37 power-related projects and with total generating capacity of 1,542.404 MW.

“The increase in power investment projects augurs well for the country’s goal to ensure energy security and independence. These investments support the Philippine Energy Plan (PEP) 2010-2030 to search for, discover, and further develop energy sources,” BOI Managing Head Ceferino Rodolfo said. The PEP indicated that at least P3 trillion in fresh investments are needed to attain the goal.

The manufacturing sector also contributed to the increase in investments which reached P27.01 billion from P24.47 billion in 2014.

“The continued growth of the manufacturing industry is a clear indication of the efforts to boost the growth and further development of the sector through the Manufacturing Resurgence Program (MRP)[1],” Rodolfo said.

“The revival of the manufacturing sector is key to inclusive economic growth because it will generate much-needed employment and help the country tap regional production networks,” he added.

The other sectors that likewise contributed to the increase are agriculture, forestry and fishing (P6.19 billion from P2.53 billion); and information and communication (P4.68 billion from P2.38 billion).

Investment commitments from domestic sources reached P307.24 billion or 84% of the total investment approvals in January to December of this year while the remaining 16% or Php59.51 billion were generated from foreign sources.

The foreign country sources include Netherlands with investments worth P26.70 billion or 45% share to total approved foreign investments during the period; Singapore with investments amounting to P10.80 billion (18% share), Malaysia with P2.67 billion (4% share), South Korea with P2.41 billion or (4% share), and Taiwan with P2.37 billion (4% share).

In terms of geographic distribution, more than 45% of registered investments are located in Region 4-A with P165.68 billion.  Region VI came in second with P60.75 billion or 17% share to total approvals, followed by Region VII which recorded almost P32.23 billion or 9%. The National Capital Region meanwhile ranked fourth with P29.50 billion worth of investments.

—From the Board of Investments

[1] The MRP which aims to rebuild the existing capacity of industries, strengthen new ones, and maintain the competitiveness of industries with comparative advantage. The MRP also seeks to build on agriculture-based manufacturing industries that generate employment, and support small-holder farmers and agri-cooperatives through product development, value-adding, and integration to big enterprises for marketing and financing purposes.