- Of the P1.07 trillion investments approved by the Board of Investments (BOI) in the first 10 months of 2023, renewable energy and power accounted for P899.79 billion, up a significant 187% from same period last year of P313.07 billion.
- BOI is inching closer to hitting its P1.5 trillion investment target this year after approving the new offshore wind power projects of Copenhagen Infrastructure New Markets Fund (CI NMF) Corporation valued at P329.74 billion.
The Board of Investments (BOI), the country’s lead investment promotion agency, said on Nov. 2 that it reached the P1.07 trillion investment approvals from January to October, translating to an 86-percent growth from last year’s P576.21 billion for the same period.
BOI is inching closer to hitting its P1.5 trillion investment target this year after approving the new offshore wind power projects of Copenhagen Infrastructure New Markets Fund (CI NMF) Corporation valued at P329.74 billion.
“The BOI hitting the trillion mark in investment approvals proves that the Philippines is heading in the right direction to become Asia’s premier investment destination of choice,” Trade Secretary and BOI Chairman Alfredo E. Pascual said.
He added that “foreign investment pledges are at a record high. But the job is not done. Together with our other Investment Promotion Agencies (IPAs), we will continue to work to generate more investments into the country to provide more jobs for our countrymen.”
As the country is poised for a record-breaking surge in investment approvals this year, BOI noted that the trillion-peso investment figure does not even include approvals from other IPAs.
BOI approvals alone are set to contribute significantly to this remarkable year for investments with two months away before the year ends.
In the first ten months of the year, foreign investment approvals of BOI reached P757.33 billion, a significant leap of 567 percent from last year’s P113.49 billion. In addition, domestic investment stands at P316.22 billion.
As to the sources of foreign investments in the Philippines, the bulk of foreign capital came from Germany at P393.28 billion, followed by the Netherlands at P333.61 billion, Singapore at P17.07 billion, the United States at P2.63 billion, France at P2.04 billion, and United Kingdom at P1.05 billion.
At the domestic level, investments in Western Visayas topped the list at P307.25 billion, with CALABARZON taking up second place at P67.11 billion. It was followed by the Bicol Region at P162.92 billion, Eastern Visayas at P128.22 billion, and Ilocos Region at P122.18 billion completed the top five regions.
The renewable energy and power sector took center stage in the Philippines’ investment landscape, boasting a staggering P899.79 billion in investments, reflecting a remarkable 187 percent increase from last year’s P313.07 billion.
BOI noted that this substantial commitment was primarily directed towards diverse projects in solar, wind, hydropower, and biomass, highlighting the sector’s growing prominence.
The Information and Technology sector demonstrated strong growth, securing approvals totaling P95.51 billion. Transportation and storage, particularly in water transport, also made a significant impact with P21.27 billion in approved investments.
Additionally, the manufacturing sector featured projects valued at P16.37 billion, and Administrative and Support Service Activities, including the IT-BPM industry, received P8.94 billion in investments.
BOI said that it continues to target investment projects that will bolster the country’s position as a regional hub for sustainability, connectivity, and innovation-driven manufacturing and services, as it pursues making its P1.5 trillion target in investment approval happen this year.
Providing a total of 230 jobs for Filipinos, CI NMF Corp. will operate three offshore wind power projects across the country such as 1,000 megawatts in San Miguel Bay within Camarines Norte and Camarines Sur; 650 megawatts in Samar; and 350 megawatts in Dagupan within Pangasinan and La Union.
For his part, Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said that “this project is an example of the foreign investors’ deepening interest in investing in the Philippines. It also shows that we are positioning our country as an ideal investment of choice, especially in green investments such as renewable energy and green metals.
“I am confident that we can make more investments happen in the Philippines before the year ends,” he added.
Coupled with the global transition to green energy, the country is seeking to be a regional hub for sustainability, connectivity, and innovation-driven manufacturing and services.
Such a positioning strategy can be bolstered by focusing on the identified priority sectors of the government, namely: electric vehicles (EVs), smart/high-tech lighting manufacturing, outsourced semicon assembly and test, green metals, high-tech agriculture, renewable energy, and data centers/telco infrastructure.
This year signifies the third consecutive year the BOI has surpassed the trillion-peso mark in investment approvals from registering its highest investment approval of P1.14 trillion in 2019, followed by P1.02 trillion in 2020, despite the disruptions and challenges caused by the Covid-19 pandemic.
The BOI said it anticipates a continuous influx of investments throughout 2023, building upon the momentum of the first ten months of the year and ultimately setting the stage for another record year for Philippine investment approvals.
