Investments soar 38% to P763 billion in 2011

MANILA, Philippines – Investments generated by the 13 investment promotion agencies (IPAs) went up 38 percent in 2011 to P763.018 billion, from P554.641 billion in 2010 as businesses continue to show strong appetite for projects on the back of the country’s stable economic performance, the Department of Trade and Industry (DTI) reported.

Data provided by the DTI showed the approved investments in 2011 will generate 195,637 jobs.

Trade Undersecretary Cristino L. Panlilio said they continue to see strong investments this year, particularly with the possible entry of 10 huge investments.

“This early our strong leads amount to P200 billion,” Panlilio revealed. He said the investments are in the areas of energy, manufacturing, mining and tourism. Foreign direct investments (FDIs) this year will mainly come from China, the United States, United Kingdom and Japan.

Panlilio said that combined with the government capital expenditure budget of P100 billion, total investments generated in the past two years could amount to P2 trillion.

“This should contribute to a hefty 20 percent of GDP (gross domestic product),” Panlilio said. “These projects are meant to produce, manufacture and service future recurring businesses and the impact is we have our hands full in terms of construction, assemblies of new manufacturing plants. That would bring in more services to be provided.”

Panlilio noted that these projects can help stimulate economic activity. “These are economic movers, drivers, agitators of business activities and they are recurring productive products that will help propel our GDP,” Panlilio said. “This means we can do better in the next two years.”

Of the 13 IPAs, only Aurora Pacific Economic Zone and Freeport Authority (APECO), the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) and the Zamboanga City Special Economic Zone Authority (ZCSEZA) reported no new investmentsin 2010 and 2011.

In 2011, the Board of Investments (BOI) generated the largest investment commitments with P368.93 billion, followed by the Philippine Economic Zone Authority with P288.339 billion; Subic Bay Metropolitan Authority with P66.404 billion and Clark Development Corp. with P21.051 billion. Other IPAs include the Philippine Retirement Authority with P14 billion, Cagayan Economic Zone Authority with P9.09 billion, Autonomous Region of Muslim Mindanao with 1.656 billion; and Phividec Industrial Authority with P1.155 billion. –Ma. Elisa P. Osorio (The Philippine Star)