As of May, BOI approved investments worth P640 billion, up 14%

Image from BOI/FACEBOOK

MANILA, Philippines — The Board of Investments (BOI) approved the registration of investments worth P640.22 billion in the first five months of this year, with the bulk of commercial investments in the renewable energy sector.

Data released on Monday by the Philippines’ Department of Trade and Industry (DTI)-led investment promotion agency showed that approved investments increased 14 percent compared to P562.9 billion in the same period last year.

“The upward trend in net (foreign direct investment) inflows and approved investments follows a pattern of commitment from various trade missions sponsored by investment promotion agencies, including the goodwill fostered by the president’s business trips abroad,” Trade Secretary Alfredo Pascual said in a statement.

13,871 jobs

He added: “These efforts have been registered and what we are seeing now are the tangible results of the government’s concerted efforts.”

In May alone, the Philippine Board of Investments registered investments worth P27.41 billion, down from P343.21 billion in the previous month, which was the highest monthly record so far this year.

The Philippines’ Board of Investments plans to approve at least P1.1 trillion worth of investments this year, most of which are expected to go into renewable energy.

read: BOI aims to approve P1.1 trillion in investments by 2024

The approved investment registration amounts are: 1.26 trillion pesos in 2023, 729 billion pesos in 2022, 655 billion pesos in 2021, 1.02 trillion pesos in 2020 and 1.14 trillion pesos in 2019.

Investments registered with the BOI are eligible for a number of government incentives, including income tax exemptions, preferential tax rates on total income, zero value-added tax (VAT) rating, and duty-free and duty-free imports of capital equipment, raw materials and supplies.

Thailand’s Board of Investment said all registered investments approved since January are expected to create 13,871 jobs.

Investment Details

The Board of Investments said foreign investments totaled P114.37 billion from January to May this year, while domestic investments amounted to P525.85 billion.

read: Palace says Marcos’ visit brings P4 trillion in investment to Philippines

It added that Switzerland was the largest source of these foreign investments, with projects valued at P62.89 billion.

It was followed by the Netherlands, with investments of P39.33 billion; Singapore, with investments of P6.07 billion; China, with investments of P1.53 billion; Taiwan, with investments of P1.28 billion; and the United States, with investments of P953 million.

Most of the investment went into the renewable energy and power sectors, totaling 607.47 billion pesos, or nearly 95% of the total investment.

Meanwhile, investments in the agriculture, forestry and fisheries sector were P9.56 billion, real estate was P8.17 billion, transportation and warehousing was P4.61 billion, manufacturing was P4.36 billion, and finance and insurance was P227.95 million.