THE BOARD of Investments (BoI) has approved a total of €1.58 trillion in investment commitments as of November, putting it on track to meet its €1.6 trillion target for this year.
In a statement on Wednesday, the Department of Trade and Industry (DTI) said total investments approved in the first eleven months represent 98.7% of the full-year target.
Year on year, investment commitments approved by the BoI increased by 43.6% from P1.1 trillion.
The approved investments are mainly in the renewable energy (RE) sector, amounting to P1.35 trillion. This was an increase of 48% compared to a year ago.
The government saw an increase in the number of renewable energy projects after allowing full foreign ownership in the sector, which was previously limited to 40%.
Other best-performing sectors include air and water transport, which attracted €121.2 billion in investments; real estate with P34.67 billion; manufacturing by P30.4 billion; and water supply, sewerage, waste management and sanitation with P16.28 billion.
About 10.5 billion euros of the investment commitments will go to agricultural, forestry and fisheries 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 main international sources were Switzerland, the Netherlands, Japan, South Korea, Singapore, Thailand and the United States.
“This growth is driven by a significant 254% increase in local investments, with Philippine companies contributing P1.06 trillion,” the DTI said.
“The Calabarzon region is the top recipient, with P623.19 billion in investments, followed by Central Luzon with P277.08 billion and Western Visayas with P245.95 billion,” it added.
Minister Frederick D. Go said the robust investments in key sectors reflect 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 Revitorating the Economy (CREATE MORE) Act,” said Mr. Go.
Last month, President Ferdinand R. Marcos Jr. signed the CREATE MORE Act, which further reduces corporate taxes from 25% to 20% for registered companies.
Mr Go, who heads the OFFIce of the Special Assistant to the President for Investment and Economic Affairs, said the law increases the country’s competitiveness in attracting local and foreign investments.
“These efforts are critical to sustaining our country’s strong economic growth and ensuring that the Philippines remains a major investment destination,” he added.
Meanwhile, Trade Minister Ma. Cristina A. Roque attributed the investment growth to investor confidence in the Philippines.
“These figures underscore our commitment to sustainable economic growth that transforms the Philippine economy. We are focused on creating a positive growth cycle by strengthening the private sector using market-based instruments,” she said.
“This supports the continuously improving investment climate in the Philippines, and sends clear signals that we are ‘Making It Happen in the Philippines,’” she added. — Justine Irish D. Table