Investment pledges up 27% to P304B in H1
Credit to Author: ANNA LEAH E. GONZALES| Date: Wed, 10 Jul 2019 16:24:51 +0000
INVESTMENT pledges approved by the Board of Investments (BoI) grew by 27 percent to P304.4 billion in the first half of 2019 from P238 billion in the same period a year ago.
In a statement on Wednesday, the BoI, an attached agency of the Department of Trade and Industry, said the power sector had the biggest share in total investments in the period with P192.4 billion, up 77.9 percent from last year’s P108.2 billion.
Investment pledges in manufacturing amounted to P45.3 billion in January to June, a 128.4-percent increase from P19.8 billion in the first six months of 2018; information and communication, P33.2 billion from P340 million; and tourism accommodation, P8.6 billion from P1.2 billion.
Of the total investment pledges in the six months ending June, 96 percent are spread to areas outside the National Capital Region (NCR).
Region 4A (Cavite, Laguna, Batangas, Rizal and Quezon provinces, or Calabarzon) remains the top investment location, receiving P201.2 billion. It is followed by Region 3 (Central Luzon) with P27.7 billion; NCR, P11.3 billion; Region 2 (Cagayan Valley), 8.7 billion; and Region 7 (Central Visayas), P7.7 billion.
According to Trade Undersecretary Ceferino Rodolfo, among the latest approvals are the P4-billion 19.7 megawatt (MW) hydropower project of Rio Norte Hydropower Corp. in Isabela province; the P4.7-billion acquisition of the newest models of Airbus planes by Cebu Air. Inc.; and the P2.3-billion 15MW thermal power plant of DMCI Masbate Power Corp. in Masbate province.
Singapore remains the Philippines’ country’s largest foreign investor with P35.4 billion. The Netherlands followed with P9.2 billion; Thailand, P8.5 billion; Japan, P5.8 billion; and the United States, P2.4 billion.
Trade Secretary Ramon Lopez said the government was optimistic that it would hit its 2019 target of P1-trillion investments, noting that “there are still big-ticket projects coming,” including large “infrastructure projects in the pipeline.”
Rodolfo agreed, noting that “year-on-year, investments are still increasing.”
“There are big-ticket projects in the pipeline, but we are exercising — as we do in all cases — prudence in diligently assessing their eligibility for incentives,” he said.
According to Lopez, the Philippines could be a recipient of manufacturing firms locating outside China as a result of its months-long trade war with the United States.
“Although there is now a truce between them [Washington and Beijing], we are ready to catch and absorb investments that will be redirected from China and other countries that will bear the brunt should talks break down again,” the Trade chief said.
“We remain hopeful they will strike a deal, because the global economy is at stake. Both countries are among our largest trading partners, but for any eventuality, we have to diversify our markets by going beyond the traditional ones while further strengthening our domestic base,” he added.
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