Investment commitments approved by the Board of Investments jumped 24 percent in the first seven months to P312.8 billion from P252.2 billion in the same period last year despite the trade dispute between two of the world’s largest economies.
“Investors continue to signal their strong confidence in the Philippines despite the challenges generated by the global tensions among nations. This growth was still resilient enough to withstand the global demand downturn brought about by the lingering trade dispute between the US and China, the trade spat between Japan and South Korea and other geopolitical tensions,” said Trade Secretary and BOI chairman Ramon Lopez.
“We remain among the fastest-growing economies in Asia and we are among the few countries to even register a 1.5-percent export growth in July,” said Lopez.
Data showed that foreign investment commitments surged 348 percent in the first seven months to P69.6 billion from a year ago. Local investments also rose 2.7 percent to P243.2 billion.
Singapore emerged as the top source of foreign investments this year with P35.4 billion. It was followed by the Netherlands with P9.2 billion, Thailand with P8.6 billion, Japan with P5.8 billion and the United States with P2.4 billion.
Lopez said it was a custom for the Trade Department to diversify markets by identifying new destinations for more opportunities while ensuring that domestic base is strong and on the upswing to soften the impact of trade disputes.
He said the recent trade spat between Korea and Japan should urge the Philippines to escalate and complete the negotiation of the free trade agreement with South Korea and review or enhance the Philippines-Japan Economic Partnership Agreement to avail of more opportunities and exchanges with Japan.
“We assure foreign investors that the Philippines is a safe haven for their investments and they should take advantage of our very strong domestic demand and commit to long-term deals,” said Trade Undersecretary and BOI managing head Ceferino Rodolfo.
Power projects remained the biggest investments with P195.1 billion, up by 65.3 percent from P118 billion in the same period last year. Investments in the manufacturing sector soared 132.6 percent to P46.1 billion from P19.8 billion.
The information and communication sector posted a 9,680-percent increase in investments to P33.2 billion from merely P340 million last year. Tourism accommodation investments rolled to P9 billion, up 618 percent from P1.3 billion in 2018.