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Philippine BOI reports 140% jump in investment pledges
Publication Date : 24-03-2014
Investment commitments approved by the Philippines' Board of Investments (BOI) surged by 140 per cent in February to 22.5 billion pesos (about US$498 million), boosted largely by the growing number of real estate and construction projects.
This brought the total BOI investment approvals for the first two months of the year to 30.24 billion pesos ($670.6 million), government data showed.
Of the investment commitments approved, 21.93 billion pesos represents pledges made by local investors while the rest accounts for projects funded by foreign equity.
The BOI said that, in terms of sectoral investments, the real estate and construction sectors overtook the generally capital-intensive power sector, which dominated last year’s project approvals.
The property sector accounted for the bulk of the total approved investments, accounting for a 61-per cent share. It was followed by the electricity, gas, steam and air-conditioning supply sector, with a 25-per cent share.
The BOI said it was expecting at least a 10-per cent increase in investment commitments this year.
Last year, the investment commitments approved by the BOI reached 403.17 billion pesos ($8.94 billion) due largely to the big number of power generation projects in the pipeline.
A 10-per cent growth “is reasonable for approved investments. What we aim for, however, is the impact of the growth in terms of stable and decent jobs-for a more inclusive growth,” Philippine Trade Undersecretary Adrian S. Cristobal Jr. said in an earlier interview.
Driving this growth in the domestic front, Cristobal said, would be the strong consumption coming from the sheer size of the domestic market; reconstruction spending; the expected increase in infrastructure spending (to include projects under the government’s public-private partnership program), and the country’s stable macroeconomic condition.