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Increase of 11% in BOI-approved investments with a target of $1 trillion by 2023

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In order to reach their goal of PHP1 trillion in investments by 2023, the Board of Investments (BOI) allowed investments have increased 11 percent annually this year thanks in large part to placements in renewable energy (RE).

According to data made public by the Department of Trade and Industry (DTI) on Wednesday, BOI-approved investments have increased this year, from PHP655 billion in 2021 to almost PHP729 billion so far.

The projected increase in employment from around 40,000 last year to 260,000 will be approximately 454%.

The 2022 BOI Approval levels “clearly indicate that investors continue to have strong confidence in the Philippine economy, despite the lingering effects of the pandemic, especially in the first year of the year, coupled with the global decline in investments due to the Russia-Ukraine war,” Trade Secretary Alfredo Pascual said in a briefing on Wednesday.

In a report, DTI noted that while BOI-registered projects saw an increase in capital expenditures, they are not always labor-intensive.

However, it added that the impact on increased investments, business activity, and employment would be general.

The technology and communications sector, notably data centers and telecommunication towers, came in second at 28 percent and was followed by the power sector, particularly RE, with a 56 percent annual surge in investment cost.

Other industries include manufacturing, mass housing, transportation, and storage, as well as information technology and business process management (IT-BPM).

Additionally, investments rose for EV-related initiatives like the construction of charging stations, the leasing of EVs, and the operation of EV transportation network vehicle services (TNVS).

Singapore accounted for 57% of investments to date, followed by Japan (22%), the UK (7%), the US (3%), the US Virgin Islands (2%), and South Korea (2%).

At the beginning of the current administration’s term, Pascual claimed that presidential trips to foreign nations “created substantial tangible interest, notably in the area of offshore wind power generation projects.”

Investors “welcomed the strong political will of the administration to push for renewable energy, especially with the recent amendment by the DOE (Department of Energy) of the Renewable Energy Act IRR (implementing rules and regulations) to now allow for 100% foreign equity ownership of solar, wind, and tidal power projects,” he said.

As we “position the country as the regional center for innovation and sustainability (that) promote manufacturing and services,” he said, investments in RE are crucial for the nation.

In order to help businesses find locations that will enable them to fulfill their net-zero carbon pledges, he added, “We supply the solution.”

He continued by saying that they have leads for potential investments that would benefit from the complete execution of revolutionary reforms affecting retail trade, tech start-ups, and public utilities.

Ceferino Rodolfo, the managing director of the BOI and the undersecretary of trade, claimed during the same briefing that approved projects are “very strategic” and “fully aligned” with the objectives of the current Trade Department, which are based on sustainability and prioritize digitalization and connectivity.

According to him, this is evident from the grouping of projects for RE, data centers, telco towers, and EVs.

Moving forward, we are aiming to invest PHP1 trillion by 2023, as instructed by the chair and secretary of DTI, he said.

According to Rodolfo, the CIA has solid leads on these, which were strengthened by President Ferdinand Marcos Jr.’s economic missions to a number of nations.

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