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Business

BOI sees approved investments surpassing 2021 level

Catherine Talavera - The Philippine Star

MANILA, Philippines — Approved investments by the Board of Investment (BOI) will unlikely hit the P1 trillion target this year but are expected to surpass the P655.4 billion recorded in 2021.

In a media briefing yesterday, Trade Undersecretary and BOI managing head Ceferino Rodolfo said the agency was earlier optimistic it would hit P1 trillion approved investments this year.

However, he explained that they were not able to foresee the Russia-Ukraine war that has affected investments.

“Unfortunately, from January to November, our total is P644 billion. So what is certain is that we will surpass 2021,”he said.

Latest data from the BOI showed that as of Nov. 15, it approved P644.4 billion worth of investments, 73.51 percent higher than the P371.4 billion the agency approved last year.

Of the total amount, 81 percent or P518.3 billion accounted for domestic investments, while 19 percent or P126.1 billion came from foreign sources.

“The highest investment was committed to the power sector at P343.8 billion,” the BOI said.

This was followed by information and communication with P197.6 billion; administrative and support services activities with P26.8 billion; transportation and storage with P25.2 billion; and real estate with P23.8 billion.

Singapore is considered as the biggest country source of BOI-approved foreign investments, with P75.3 billion worth of investments.

This was followed by Japan with P29.9 billion and the United Kingdom with P9.9 billion.

The BOI also approved investments from the British Virgins Islands worth P2.6 billion and South Korea (P2.5 billion).

Rodolfo shared that there are a number big-ticket investment deals that are still undergoing finalization and which will likely fall for next year.

For 2023, the BOI said it has a total estimated investment leads of P372.8 billion.

“These are mainly from the IT-BPM (P125.3 billion), real estate activities (P105.47 billion), and agriculture, forestry, and fisheries (P66.90 billion),” it said.

The BOI said it remains optimistic that foreign investments in 2023 will show significant growth given the game-changing economic reforms enacted in the Philippines.

These include Republic Act 11659 or the Amended Public Service Act, R.A. 11647 or the Amended Foreign Investment Act, R.A. 11595 or the Amended Retail Trade Liberalization Act, and Department Circular 2022-11-0034 – Amending Section 19 of the Implementing Rules and Regulations (IRR) of R.A. 9513 or the Renewable Energy Act of 2008.

DC 2022-11-0034 seeks to open the country’s renewable sector to 100 percent foreign ownership, primarily for installations in the wind and solar investment space.

The BOI pointed out that it would pave the way for foreign citizens or foreign-owned entities to explore, develop, and utilize the country’s renewable energy resources such as solar, wind, biomass, ocean, or tidal energy.

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