THE Board of Investments (BOI) has recorded P645.3 billion worth of approved investments in the first six months of the year, bouncing back strongly with a 112 percent surge from just P304.4 billion in the same period in 2019.
“The robust bounce back despite the pandemic shows the country’s resilience as we begin the transition to easing out the restrictions after a prolonged lockdown of the economy. While we expect a lower gross domestic product output in the second quarter than the first quarter due to the enhanced community quarantine (ECQ), there are already signs that the economy is humming back to life with industry conditions becoming stable,” Trade Secretary and BOI Chairman Ramon Lopez said.
Lopez said the rebound in investments is expected since the Philippines is still considered one of the top investment destinations with strong economic fundamentals, and direct investments always have a medium to long-term horizon in their investment decisions.
Recovery
Lopez expressed optimism that the economy will recover by the third quarter with a positive growth as most of the country is expected to have a relaxed form of community quarantine although he acknowledged that strict social distancing and health protocols will still remain in effect to contain the spread of Covid-19.
Approved investments among domestic sources went up to P626.7 billion, surging by 166 percent from P235.6 billion from the same period last year.
In contrast, approved figures by foreign businessmen reached P18.6 billion, a 73 percent deceleration from P68.9 billion in the same period a year ago.
Top investments
According to vice chairman and BOI managing head Ceferino Rodolfo, construction/infrastructure is the pace setter among industries with P530.8 billion as of the first half.
The transportation and storage sectors remain strong with P86.7 billion, a 785 percent improvement from last year’s figure of just P9.8 billion.
Real estate posted a solid 16.5 percent growth to P9 billion from P7.7 billion in 2019.
Renewable energy/power, manufacturing and accommodation (tourism) recorded P6.6 billion, P5.3 billion and P3.8 billion in approved projects, respectively.
A total of 96 projects got the green signal and upon operations, they will generate 27,082 jobs, a jump of 57.3 percent from 17,214 in the same period last year.
Top foreign investors
France remains in the driver’s seat among foreign investors with P1.5 billion in approved investments followed by the Netherlands with P1.06 billion, Japan with P790 million, Malaysia with P601 million and India with P329 million.
The recent approvals include San Miguel Aerocity Inc.’s P530.8 billion airport project in Bulacan, Seaoil’s P654 million downstream petroleum project in La Union, Gigasol3 Inc.’s P2.4 billion 63 megawatt solar project in Central Luzon, Royale Cold Storage North Inc.’s P1.5 billion storage facility in Laguna, and Heineken International BV’s P1 billion brewery plant in Metro Manila. (PR)