Vol. XXI, No. 238 [ BusinessWorld Online ]
Friday, July 4, 2008 | MANILA, PHILIPPINES
THE BOARD of Investments (BoI) and the Philippine Economic Zone Authority (PEZA), the country’s top business promotion agencies, approved a total of P204.77 billion in new investment commitments from January to May.
Data from the Department of Trade and Industry (DTI) showed total investments were more than double the P85.11 billion over a year ago and already comprised 52% of the government’s full-year target of P391 billion.
These new investment pledges involve 360 projects that are expected to generate direct employment of 90,452.
For May alone, investment approvals grew eightfold to P92.22 billion from P11.48 billion last year.
Bulk of the investments in the five months to May went to the manufacturing sector with P78.17 billion, while electricity, gas, and water attracted P61.01 billion. Real estate, renting and business activities cornered P28.45 billion, while P11.14 billion went to infrastructure and industrial service and transport, storage and communication got P7.53 billion in investments.
A press statement quoted Trade Undersecretary and Board of Investments Managing Head Elmer C. Hernandez as saying that significant growth in infrastructure projects and manufacturing indicates that the country remains competitive in these areas.
"Another noticeable feature of the first five months performance is the renewed interest to invest in the power sector and this will ensure the growing power requirements of the country in the immediate future are addressed," he added.
Major investments include the naphtha cracker project project of JG Summit Olefins Corp. worth P34.38 billion; power generation projects of Global Business Power Corp. worth P22.14 billion and P17.79 billion; Korea Electric Power Corp.-SPC Power Corp.’s P19.95 billion project; a P6.15-billion coal mining expansion project of Semirara Mining Corp.; Cebu Air, Inc.’s refleeting project worth P5.52 billion; and two infrastructure port projects — Rhizhao Development Corp. worth P4.5 billion and International Container Terminal Services, Inc. worth P4.46 billion.
Foreign investors account for 34% of total investments at P69.3 billion, while Filipino firms committed about P135.47 billion. The top three foreign investors were Koreans, who committed P21.24 billion; British with P20.66 billion and Americans with P9.05 billion. — BSSD
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