Business Bayani PH

The Board of Investments (BOI), the country’s premier industry development and investment promotion agency, announced its highest-ever investment approval at ₱1.16 trillion for the year 2023. This achievement marks the third time in four years that the BOI has surpassed the trillion-peso mark in investment approvals, reflecting robust investor confidence and successful implementation of the Make It Happen in the Philippines campaign.

Trade Secretary and BOI chairman Alfredo Pascual conveyed assurance to President Ferdinand R. Marcos Jr.’s administration, stating that the BOI reaching ₱1.16 trillion for 2023 affirms robust investor confidence. Pascual credited this achievement to the administration’s responsiveness to the President’s policy initiatives and the effectiveness of aggressive investment promotion activities under the Make It Happen in the Philippines campaign.

The unprecedented ₱1.16 trillion comes from a total of 303 projects, set to generate 47,195 jobs. Pascual emphasized the optimistic outlook for 2024, with the BOI poised to catalyze smart- and sustainability-driven investments further.

Germany emerged as the leading source of foreign investments, contributing ₱393.28 billion, followed closely by the Netherlands (₱333.61 billion), Singapore (₱17.38 billion), and the United States (₱3.38 billion). 

Western Visayas secured the top spot among domestic regions, attracting ₱316.89 billion in investments, with CALABARZON following at ₱211.89 billion.

Domestic investments approvals reached ₱398.76 billion, constituting 34 percent of total approved investments. Foreign investments approvals surged to ₱763.22 billion, a 452-percent jump from ₱138.18 billion in 2022.

The renewable energy and power sector dominated the investment landscape with ₱968.14 billion in investments, marking a substantial 137 percent increase from the previous year. Notable projects included seven offshore wind power projects, totaling ₱759.84 billion, located in various strategic areas.

The information and communication sector showcased robust growth with approvals totaling ₱96.16 billion, while manufacturing made a significant impact with ₱22.03 billion in approved investments. Infrastructure (toll roads) projects valued at ₱20 billion and real estate activities, specifically in mass housing, received ₱15.63 billion in investments.

Trade undersecretary and BOI managing head Ceferino Rodolfo emphasized that they are currently evaluating projects valued at around ₱350 billion. He clarified that although the BOI is a robust supporter of the private sector in enhancing the ease of doing business in the country, they maintain a careful approach as administrators of fiscal incentives.

Philippines surpasses Malaysia and Thailand in net FDI

In further positive news, the Philippines has outperformed Malaysia and Thailand in net foreign direct investment (FDI) inflows for the first three quarters of 2023, according to Department of Trade and Industry (DTI) undersecretary Ceferino Rodolfo. 

The country’s 15.93-percent decrease in net FDI inflows from January to September last year was the lowest compared to neighboring countries, positioning the Philippines as the third highest in Southeast Asia.

For the first three quarters of 2023, the Philippines’ net FDI inflows amounted to $5.88 billion, surpassing Malaysia’s $4.99 billion and Thailand’s $4.44 billion. Rodolfo expressed hope that by the end of President Ferdinand R. Marcos Jr.’s term, the Philippines would become the second biggest destination of FDIs in Southeast Asia.

2024 targets and investment prospects

Looking ahead, DTI Secretary Pascual revealed that the BOI aims to achieve ₱1.3 trillion to ₱1.5 trillion in investment approvals for 2024. 

BOI director Ernesto Delos Reyes supported these targets, citing ₱930 billion worth of investment prospects in the One-Stop Action Center for Strategic Investments (OSAC-SI). 

Delos Reyes mentioned that ₱370 billion of the applications in the OSAC-SI already received Green Lane Certificate of Endorsement, with ₱360 billion under evaluation and ₱200 billion from SP New Energy Corp. (SPNEC), set to be the world’s largest solar project.

In 2023, the BOI’s successful efforts laid a strong foundation for ongoing growth, making the Philippines an appealing choice for both local and foreign investors. The agency’s commitment to transparency and careful fiscal management enhances its attractiveness as an investment destination in the future.◼