Approved investments sustain upward momentum

From AB Capital's The Opening Bell: Three Moves

Event

Board of Investments (BoI)-approved investments rose 21% YoY to P461.84 billion in 1H26, with renewable energy accounting for 74.25% of approvals. Separately, BoI is proposing P9 billion in fiscal support for RACE, an internal combustion engine (ICE) vehicle bridge program alongside the proposed P60 billion EVIS package.

View

In our view, the investment pipeline remains constructive, but quality and conversion matter more than approvals. Renewable energy still dominates pledges, while manufacturing remains small at P7.22 billion. RACE suggests policy support remains pragmatic, recognizing that ICE demand persists while EV localization develops.

Catalyst

Key sensitivities are project implementation, grid connectivity, permitting, fiscal incentive approval, and whether RACE attracts actual production commitments. If approvals convert quickly, energy and infrastructure activity improve. If manufacturing incentives remain thin, investment gains may stay concentrated in power and real estate.

Action

We think the read-through is positive for renewables, construction, industrial land, and selected auto names. For GTCAP and other assemblers, RACE could support local production economics, but EVIS remains the bigger structural catalyst. Monitor SIPP execution, incentive design, and actual capex conversion.

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