In the last five years, BOI and PEZA have approved P5.2-T investments
Investment approvals at the Department of Trade and Industry’s (DTI) investment promotion agencies (IPAs) have risen since 2016, suggesting a bettering investment climate in the country during the last five years.
According to DTI data, the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) authorized a total of PHP5.2 trillion in investments from 2016 to June 2021.
Since 2016, PEZA-approved investment registrations have totaled PHP841 billion, with the BOI receiving the lion’s share of these approvals at PHP4.33 trillion.
BOI and PEZA investment approvals totaled PHP660 billion when the Duterte government took office in 2016.
Approved investments in IPAs increased to PHP854 billion in 2017, hit PHP1 trillion in 2018, and then increased to PHP1.26 trillion in 2019.
The BOI approved PHP1.14 trillion in investments in 2019, a record high.
Despite the worldwide health and economic catastrophe caused by coronavirus disease 2019 (Covid-19) last year, DTI-affiliated IPA investment approvals remained at PHP1 trillion.
Despite the epidemic, approved registrations in 2020 totaled PHP1.11 trillion.
BOI and PEZA investment approvals during the last five years are expected to result in the creation of 804,147 employees in the nation.
Meanwhile, authorized investments for the first six months of 2021 totaled PHP236 billion, with BOI approving PHP204 billion in projects and PEZA approving PHP32 billion.
“The largest portion, PHP127.6 billion, was allocated to power, gas, steam, and air-conditioning supplies (54.1 percent). Manufacturing was second with PHP52.2 billion (22.1%), real estate activities were third with PHP28.5 billion (12.1%), information and communication were fifth with PHP12.7 billion (5.4%), and construction was ninth with PHP4.5 billion (1.9%), according to the DTI.
The majority of the PHP197 billion in investment approvals came from local sources, with the remaining PHP39 billion coming from international investment commitments.
“With PHP13 billion, the United Kingdom was the largest national source of BOI-PEZA authorized foreign investments (33.4 percent). The DTI stated that Japan came in second with PHP11.9 billion, followed by the UAE with PHP4.5 billion, the United States with PHP2.4 billion, and the Cayman Islands with PHP1.1 billion.