Despite early slump, BOI bullish it will hit P1 trillion new investments in 2019
The government is confident of hitting the P1-trillion target in approved investments this year even after total levels declined by 23 percent in January to February this year.
“We have key projects in the pipeline, particular in area of power, that are still undergoing BOI’s (Board of Investments) rigorous evaluation process on technical and financial aspects; and equally important, on their compliance with requirements for BOI registration,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said Thursday in a statement.
Rodolfo noted that given the projected investment costs, they are “very optimistic” of a renewed surge in total approvals in the months ahead.
The BOI said its total approved investments, including from domestic investors, dropped 23 percent in the first two months of the year despite the whopping 1,456-percent increase in investments from foreign sources.
Approved foreign investments reached P10.926 billion in January and February, compared with the P702.28 million generated last year.
Combined foreign and domestic investments to be approved, however, reached only PHP101.72 billion, lower than the PHP131.61 billion posted in the first two months last year.
“It is a timing issue as we cannot and we do not rush project approvals. The BOI makes sure that every peso of approved investments is qualified and deserving to be registered,” Rodolfo explained.
Meanwhile, the top performing sectors in the first two months of the year include power projects (P49.42 billion); information and communication (P33.14 billion); manufacturing (P12.93 billion); real estate (P2.15 billion); and human health/hospitals (P1.82 billion).
Regions 4-A (Calabarzon) topped the list of investment destinations with total approvals worth P60.934 billion, followed by Region 7 — P2.008 billion, Region 8 — P970 million, Region 3 –P836.62 million, and Region 6 — P824.82 million.
The top five regions generated a total of P65.57 billion worth of approved investments or a 65-percent share to total, while the P36.15 billion or 35 percent share were directed to the rest of the regions. (PNA)