THE COUNTRY’S two top investment promotion agencies reported a 26% year-on-year surge in investment commitments to P158 billion from January to August, data from the Board of Investments (BoI) showed.
Data also showed the BoI and Philippine Economic Zone Authority (PEZA) had approved close to 500 projects that had committed to create 93,164 new jobs. Trade Secretary Peter B. Favila traced the increase to strong investor confidence.
Foreign investors pledged P80.7 billion or 51% of total investments, with American businessmen pledging P28.2 billion and P27 billion from Japanese investors. Local businessmen committed P77.4 billion. The manufacturing sector accounted for the bulk of investments worth P60.61 billion, followed by real estate at P34.78 billion; infrastructure, electricity and gas at P15.28 billion; and information technology at P10.86 billion. "The government gives priority to investments in manufacturing for the technology and the high skills transferred to the country," Mr. Favila said in a statement.
Investments in the manufacturing sector were boosted by the capital infusion of Mabuhay Vinyl Corp. of about P564.6 million and Pilipinas Kyohritsu’s production of automotive wiring harness worth P453.3 million. Combined infrastructure and electricity, gas and water supply sector grew substantially with SN Aboitiz Power, Inc.’s P27-billion investment in a power plant in Isabela; First Hydro Power Corp.’s P7.7-billion capital infusion in the 112-megawatt Pantabangan-Masiway hydroelectric power facility; and investments made by Montalban Methane Power Corp. worth P1.6 billion and Hedcor Tamugan, Inc., P940 million.
For August alone, 56 projects were approved, with the BoI generating P1.7 billion and PEZA P7.9 billion worth of investments. The projects are expected to generate 8,701 additional jobs.
The real estate sector grew 147% to P34.8 billion from P14.1 billion, with DMCI Project Developers’ investment amounting to P1.15 billion; Phinma Property Holdings for P464 million; P.A. Alvarez Properties and Development for P248 million; and Palmera Homes for P197 million.
The information technology (IT) service sector grew 62% to P10.8 billion from P6.69 billion in 2006. Contact center firm Sykes Asia brought in P845 million, while application software developer Latitude Broadband infused P162 million.
"Investment growth in this sector jibes well with the Philippine vision to be an IT hub in Asia. To do this, we need to attract more companies to engage in business such as medical transcription, animation, management and accountancy, and call centers," Mr. Favila said.
Trade Undersecretary and BoI Managing Head Elmer C. Hernandez cited priority areas listed under the 2007 Investment Priorities Plan, including preferred activities covering 11 investment areas recommended by the private sector; export activities covering the manufacture of nontraditional products, and projects under the retention, expansion and diversification program.
Posted By: Bernadetter Sto. Domingo, Business World
15 Nov 2012
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