Friday, July 04, 2008 [ manilatimes.net ]
By Ben Arnold De Vera, Reporter
INVESTMENT pledges registered with the Board of Investments and the Philippine Economic Zone Authority in the first five months this year more than doubled, the Department of Trade and Industry said.
The Trade department said the two incentives-giving agencies approved commitments worth P204.77 billion, or 140.49-percent greater than the P85.11-billion approved in the same period last year.
Pledges for the manufacturing sector reached P78.17 billion, jumping 79 percent from P43.56 billion in the same period last year. Commitments for the electricity, gas, and water sector amounted to P61.01 billion, surging 374 percent from P12.88 billion last year.
Investment approvals for the real estate, renting and business activities sector amounted to P28.45 billion, up by 54 percent from last year’s P18.39 billion. Registered investments in infrastructure and industrial service reached P11.14 billion, while those for transport, storage and communication amounted to P7.53 billion, or 638 percent more than the P1.02-billion recorded last year.
Trade Undersecretary Elmer Hernandez said the significant growth seen in the manufacturing industry—a main employment and export generator—as well as in the infrastructure sector, which includes power, port facilities, mass housing and real-estate projects, indicates that the country remains competitive in these areas.
Hernandez said there is a renewed interest to invest in the power sector, especially those utilizing renewable and environmentally clean sources, thus ensuring that the country’s power requirements in the near future are addressed.
Local investments accounted for P135.47 billion, or 66 percent of the total, while the rest were committed by foreign investors. The top three foreign investors were Koreans, with P21.24 billion; British, P20.66 billion; and Americans, P9.05 billion.
In May alone, investment approvals grew by 703 percent year-on-year to P92.22 billion compared with last year’s P11.48 billion.
Among the major investments at end-May include the P34.38-billion naphtha cracker project of JG Summit Olefins Corp., the P39.93-billion generation projects of Global Business Power Corp., the P19.95 billion venture of KEPCO SPC Power Corp., the P6.15-billion coal mining expansion of Semirara Mining Corp., Cebu Air Inc.’s P5.52- billion efleeting project, Rhizhao Development Corp.’s P4.50-billion infrastructure port project, and International Container Terminal Services Inc.’s P4.46 billion project.
Trade Secretary Peter Favila expressed confidence that investments will continue to pour into the country for the rest of the year, adding that he is optimistic that the Philippines is on track to exceed its investments target this year.
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