Investment pledges double in 1st half

INVESTMENT pledges made before the Philippines’ two main incentive-giving agencies doubled in the first six months of the year, according to the Department of Trade and Industry (DTI).

In a statement, Trade Secretary Peter Favila said potential investors committed to pour in P280.8 billion at end-June, or 115 percent higher than pledges made before the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) in the same period last year.

Trade Undersecretary Elmer Hernandez, who is also BOI managing head, said pledges for the power sector topped the list with P85.16-billion worth of projects registered before the two incentive-giving agencies. Manufacturing followed with P79.40 billion, while the housing and transport sectors generated P65.50 billion. Storage and communication managed to attract another P14.20 billion.

The BOI said 80 percent to 85 percent of pledges it approved push through, while PEZA’s success ratio stood at 98 percent.

The trade department also noted a 28-percent rise in foreign investments, as P83.76-billion worth were pledged for the first half of the year compared with last year’s P65.40 billion.

The bulk of the foreign capital came from Great Britain, South Korea and the US, each of which contributed P22.23 billion, P21.76 billion and P10.16 billion, respectively.

The National Statistical Coordination Board defines approved foreign investments as the amount of proposed contribution or share of foreigners to various projects in the country as approved and registered by the BOI, PEZA, the Subic Bay Metropolitan Authority and Clark Development Corp.

The trade department said the top three investment projects in the first six months of the year were from JG Summit Olefins Corp. at P34.38 billion; Global Business Power Corp., P22.14 billion; and KEPCO SPC Power Corp., P19.95 billion.

Favila said these investment commitments are expected to generate more than 120,000 new jobs.  –Ben Arnold O. De Vera, Researcher, Manila Times