THE BOARD of Investments (BoI) has approved a total of P1.58 trillion in investment pledges as of November, putting it on track to hit its P1.6-trillion target for the year.
In a statement on Wednesday, the Department of Trade and Industry (DTI) said the total investments approved in the first 11 months represent 98.7% of its full-year target.
Year on year, BoI-approved investment pledges rose 43.6% from P1.1 trillion.
The approved investments are primarily in the renewable energy (RE) sector, accounting for P1.35 trillion. This was a 48% increase from a year ago.
The government saw an increase in RE projects after it allowed full foreign ownership in the sector, which was previously capped at 40%.
Other top-performing sectors are air and water transport, which attracted P121.2 billion in investments; real estate with P34.67 billion; manufacturing with P30.4 billion; and water supply, sewerage, waste management, and remediation with P16.28 billion.
Around P10.5 billion of the investment pledges are in the agriculture, forestry, and fishing projects; P8.25 billion for wholesale and retail projects; and P7.26 billion for the information technology and business process management sector.
Of the total, P1.2 trillion came from local investors, while P379.31 billion came from foreign investors.
The top international sources were Switzerland, the Netherlands, Japan, South Korea, Singapore, Thailand, and the United States.
“This growth is fueled by a significant 254% increase in local investments, with Filipino companies contributing P1.06 trillion,” the DTI said.
“The Calabarzon Region is the leading recipient, with P623.19 billion in investments, followed by Central Luzon with P277.08 billion and Western Visayas with P245.95 billion,” it added.
Secretary Frederick D. Go said that the robust investments in key sectors reflect the steady progress in realizing the country’s national priorities.
“This growth is driven by the government’s steadfast implementation of investor-friendly policies — such as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act,” said Mr. Go.
Last month, President Ferdinand R. Marcos, Jr. signed into law the CREATE MORE Act, which further reduces the corporate income tax to 20% from 25% for registered business enterprises.
Mr. Go, who heads the Office of the Special Assistant to the President for Investment and Economic Affairs, said that the law enhances the country’s competitiveness in attracting local and foreign investments.
“These efforts are vital in sustaining our country’s strong economic growth and ensuring that the Philippines remains a prime investment destination,” he added.
Meanwhile, Trade Secretary Ma. Cristina A. Roque attributed the investment growth to investors’ confidence in the Philippines.
“These figures underscore our commitment to sustained economic growth that transforms the Philippine economy. We are focused on creating a virtuous cycle of growth by empowering the private sector through market-based tools,” she said.
“This underpins the Philippines’ continuously improving investment climate, sending clear signals that we are ‘Making It Happen in the Philippines,’” she added. — Justine Irish D. Tabile
