5-month BOI-approved investments reach record P640b
Investments approved by the Board of Investments (BOI) have experienced a significant surge of 13.74 percent in the first five months of 2024, reaching an unprecedented P640.22 billion, up from P562.90 billion during the same period last year. This remarkable achievement marks the highest five-month approval in the history of BOI, now spanning 57 years.
Leading the investment sectors in the country are renewable energy, information and communication technology (ICT), construction, real estate, and transportation and storage, which have all shown robust growth and contribute to the strengthening of the Philippines’ economic landscape.
In alignment with the increase in BOI-approved investments, foreign direct investments (FDIs) have also witnessed a substantial rise in the first quarter of 2024. According to data released by the Bangko Sentral ng Pilipinas (BSP), there was a 42.07-percent increase in net inflows of FDIs, amounting to $2.97 billion from January to March, in comparison to $2.09 billion in the corresponding period of 2023.
Department of Trade and Industry (DTI) Secretary and BOI chairman Alfredo Pascual highlighted that this upturn in FDI net inflows and approved investments is a clear indication of sustained investor trust and confidence towards the country and its workforce. “The upward trajectory in FDI net inflows and approved investments follows the pattern of commitments from various trade missions initiated by investment promotion agencies (IPAs), including the goodwill fostered through the President’s business trips abroad. These efforts have been followed through by registration approvals, showcasing tangible results from these concerted government efforts,” Pascual stated.
The data indicates a promising allocation between foreign and domestic investments approved by BOI in the first five months of 2024, with foreign investments amounting to P114.37 billion and domestic investments reaching P525.85 billion. These investments are anticipated to generate 13,871 job opportunities for Filipinos, highlighting their significant impact on economic growth and employment.
Switzerland emerged as the highest source of foreign investments, contributing P62.89 billion, followed by the Netherlands at P39.33 billion, and Singapore at P6.07 billion, with other notable contributions from China, Taiwan, and the United States.
In terms of investment destinations within the country, CALABARZON (Region IV-A) led the regions with P538.52 billion in investments, followed by the Ilocos Region, Central Luzon, the Bicol Region, and Western Visayas, showcasing a diverse geographic spread of investment flows.
The renewable energy and power sector dominated the investment approvals with a substantial amount of P607.47 billion, marking a 20.73-percent increase from the previous year. Investments in the agriculture, forestry and fishing sectors were also notable, alongside contributions from the real estate, transportation and storage, and manufacturing sectors.
Additionally, the financial and insurance sector recorded the highest growth rate, with a remarkable 236 percent increase from the prior year, indicating a vibrant and growing economic sector within the Philippines.
“The BOi, alongside other IPAs, is dedicated to fostering more investments and maintaining the growth momentum of FDI through ongoing economic reforms and proactive investment promotion. With a favorable business environment and strong investor confidence, the Philippines is optimally positioned to further enhance its competitiveness and achieve sustainable economic development,” Pascual remarked, emphasizing the country’s commitment to economic progress and investor satisfaction.
