BOI investments seen to grow 10%

MANILA, Philippines –  Investment commitments from the Board of Investments (BOI) are expected to expand by 10 percent this year after dropping significantly in 2009, a high ranking official said.

“While we posted a negative growth in 2009, we are optimistic this year because the investments who committed to put up businesses here last year are coming in now,” Elmer C. Hernandez, BOI managing head said in an interview.

According to Hernandez, the investment missions that he went to last year are already paying off. He said businessmen from Korea, China and the Middle East will be investing in the country this year at the first semester.

In fact, the Asean Korean Center has already visited the country. Hernandez said he has hosted a 15-man delegation from Korea who would like to invest in mining, information technology, construction and manufacturing.

In the previous years, there were more investments coming from domestic firms. However for this year, Hernandez said it will tilt in favor of the foreign firms. The domestic investment is based on the Investment Priorities Plan (IPP) which is yet to be crafted by BOI.

This is contrary to the statement made by Trade Secretary Peter B. Favila who said that investments in the country will come only if there is a peaceful and credible elections in the country.

Earlier, Favila said that potential investors are playing the waiting game. “They will make the final decision after elections,” Favila told reporters in an interview.

Aside from a peaceful and credible elections, it is also important for the businessmen who will be infusing money in the country if the newly elected president is a credible leader.

“It is understandable that now they will be holding off any investment decisions,” he added.

Favila, however, refused to give any investment targets for this year. For 2009, their goal was to have a flat growth. There is still no data if the Trade Department was able to reach this goal. –Ma. Elisa P. Osorio (The Philippine Star)