The Board of Investments indicated that, while it may not meet its P1-trillion target for the year, it will outperform the previous year, with big-ticket projects on the horizon.
The Board of Investments (BOI) is confident that it will outperform last year's investment approvals after approving P644.4 billion in projects as of November 15.
The Department of Trade and Industry (DTI) said that the BOI approved investments was 73.51 percent higher than the P371.4 billion approved investments during the same period last year, Business Mirror reported.
The BOI mentioned that domestic investments accounted for 81 percent of the total amount, or P518.3 billion, while foreign investments accounted for 19 percent, or P126.1 billion.
In terms of investment breakdown by sector, BOI revealed that P343.8 billion was committed to the power sector. This was followed by P197 billion for information and communication, P26.8 billion for administrative and support services, P25.2 billion for transportation and storage, and P23.8 billion for real estate.
Regarding the origin of investments, Singapore is considered the biggest country source of BOI-approved foreign investments with P75.3 billion. This is followed by Japan with P29.9 billion, the United Kingdom (UK) with P9.9 billion, the British Virgin Islands with P2.6 billion, and Real Estate with P23.8 billion.
The BOI revealed that it has only reached 64.4 percent of its internal target of P1 trillion with P644.4 billion in approved investments to date.
P1 trillion target no longer attainable
Trade Undersecretary Ceferino S. Rodolfo said that while the P1 trillion target is no longer attainable this year, the BOI would still surpass its P655 billion performance last year.
“Unfortunately, from January to November, our total is P644 billion. So what is certain is that we will surpass our 2021. Pero ‘yung P1 trillion there are investment leads, big investment targets that are still finalizing their decision. Next year na sila papasok [They will come in next year]. So I don’t think that we will hit the P1 trillion but definitely we will surpass our P655-billion performance last year.” Rodolfo said.
The conflict in Eastern Europe, which was an unforeseen circumstance in the global arena, ultimately contributed to the failure to meet the investment target.
“We didn’t foresee a Russia-Ukraine war that will have an impact not just on investments going to the Philippines, but also a global impact; so [the data really plunged], but still it’s a good news that we will be able to surpass 2021.” Rodolfo added.
Renewable energies
Despite the global headwinds, big-ticket projects are still foreseen for 2023. These large investments will include, among other things, green metals and renewable energy.
BOI estimated investment leads to P372.8 billion for 2023. These are primarily from IT-BPM at P125.3 billion, real estate at P105.47 billion, and agriculture, forestry, and fisheries at P66.90 billion.
The BOI remains optimistic that foreign investments will show "significant growth" in 2023, attributed to "game-changing" economic reforms enacted in the Philippines, such as the Department Circular (DC) No. 2022-11-0034-amending Section 19 of the implementing rules and regulations (IRR) of the Renewable Energy Act of 2008, the Amended Public Service Act, the Amended Foreign Investments Act, and the Amended Retail Trade Liberalization Act.
DC No. 2022-11-0034 seeks to open the country's renewable sector to 100 percent foreign ownership, primarily for wind and solar investment.
Furthermore, the BOI asserted that it would make it possible for foreign citizens or foreign-owned entities to explore, develop, and use the country's renewable energy resources such as solar, wind, biomass, ocean, or tidal energy.
Tags: #BOI, #Investments, #RenewableEnergies, #DTI