MANILA – The Department of Trade and Industry’s (DTI) Board of Investments (BOI) recently recorded PHP640.22 billion worth of approved investments from January to May 2024, marking a 14% increase from the PHP562.90 billion reported in the same period last year, making it the highest first five-month approval in the BOI’s 57-year history, according to the DTI.
In a statement, the DTI attributed the positive trend to various factors, including the investment leads generated from the presidential visits of President Ferdinand Marcos Jr. since 2022.
According to the statement, these visits, along with efforts of the BOI and other investment promotion agencies (IPAs), have been instrumental in converting potential investment interests into actualized projects and foreign direct investments (FDIs).
Data from DTI showed that in 2023, the BOI recorded significant investments from Germany amounting to PHP 393.3 billion, followed by the Netherlands (PHP 333.6 billion), Singapore (PHP 21.5 billion), Japan (PHP 2.6 billion), and the United Kingdom (PHP 1.3 billion).
Key industries that attracted substantial investments involved renewable energy, information and communication, construction, real estate activities, and transportation and storage, according to the same data.
The DTI further explained that the continuous increase in investment approvals aligns with a surge in FDIs for the first quarter of 2024, with Bangko Sentral ng Pilipinas (BSP) recording a 42.07% year-on-year increase in net inflow, reaching USD2.97 billion in the same quarter in 2023.
According to BSP data, FDIs have been coming from the Netherlands, Japan, Singapore and the United States – consistent with foreign investment approvals in 2023.
DTI Secretary and BOI Chairman Fred Pascual underscored BSP’s statistics and the BOI’s approved investment data reflected sustained investor trust and confidence in the country and its workforce.
"We aspire to transform the Philippine economy and become the regional hub for smart and sustainable manufacturing and services and these data show that we are on the right track. The upward trajectory in FDI net inflows and approved investments follows the pattern of commitments from various trade missions initiated by IPAs, including the goodwill fostered through the President’s business trips abroad, Pascual said.
“These efforts have been followed through by registration approvals, and what we are seeing now are tangible results of these concerted government efforts,” he added.
Meanwhile, for the period of January to May 2024, foreign investments approved by the BOI amounted to PHP 114.37 billion, while domestic investments totalled PHP 525.85 billion. These projects are expected to create 13,871 jobs for Filipinos.
Data also showed that Switzerland emerged as the leading source of foreign investments contributing PHP 62.89 billion, followed by the Netherlands (PHP 39.33 billion), Singapore (PHP 6.07 billion), China (PHP 1.53 billion), Taiwan (PHP 1.28 billion), and the USA (PHP 953 million).
In terms of domestic investment destinations, CALABARZON (Region IV-A) notched the top spot with PHP 538.52 billion, followed by the Ilocos Region at PHP 28.49 billion. Central Luzon received PHP 24.42 billion, the Bicol Region PHP 13.28 billion, and Western Visayas PHP 8.54 billion, completing the top five regions.
The Renewable Energy and Power sector continues to dominate the Philippine investment approvals landscape, with a total of PHP 607.47 billion in investments, marking a significant 20.73% increase from the previous year’s PHP 503.18 billion.
The Agriculture, Forestry, and Fishing sector also exhibited robust growth, with approved investments amounting to PHP 9.56 billion. As for the Real Estate sector, it made a notable contribution by securing PHP 8.17 billion in approved investments.
Additionally, the DTI cited that the Transportation and Storage sector saw projects valued at PHP 4.61 billion, while the Manufacturing sector attracted PHP 4.36 billion in investments. Further, the Financial and Insurance Activities sector recorded the highest growth rate, surging by 236% from PHP 67.82 million last year to PHP 227.95 million this year.
“We are indeed Making it Happen in the Philippines. The BOI, together with other IPAs, remains committed to generating more investments and maintaining the FDI growth momentum through ongoing economic reforms and proactive investment promotion. With a favourable business environment and strong investor confidence, the Philippines is well-positioned to further enhance its competitiveness and achieve sustainable economic development,” Secretary Pascual said.
