Approved investments by the Board of Investments likely reached P350 billion to P355 billion in 2015, or virtually flat from last year’s record.
A BoI governor said the government was not expecting investments to pick up in 2015 due to the absence of capital intensive investments, such as power and energy projects.
The board, however, is optimistic the value of registered projects in 2016 will increase to about P417.5 billion, based on recent estimates by the Trade Department.
Approved BoI projects in 2014 dropped 24 percent to P354.5 billion from P466 billion in 2013.
Combined investments at the BoI and from the Philippine Export Zone Authority, meanwhile, are forecast to reach P780 billion in 2016.
Investments registered with the BoI in 2016 are expected to continue to increase at a slower rate of 7 percent as the Investment Priorities Plan is now more focused on relatively fewer, more strategic sectors.
Peza’s target of P362.1 billion is based on the performance in the previous years with significant consideration of the global market situation.
Meanwhile, Peza’s export value may increase to $102.2 billion in 2016 from the 2015 forecast of $88.7 billion to $91.9 billion.
Peza earlier reported that investment commitments increased 13 percent in the first 10 months to P174.4 billion from P154 billion a year ago.
Peza director general Lilia De Lima attributed the increase in investments to the number of projects that would soon operate in different economic zones.
De Lima said Peza approved 503 projects, which were either new investments or expansion of existing projects, mostly in manufacturing.
Peza, one of the major investment promotion agencies, approves projects in economic zones that apply for tax incentives from the government.
Data showed that Peza approved only 490 investment projects in the first 10 months of 2014.
Employment at Peza-administered economic zones also increased 7.9 percent to 1.24 million as of end-October from 1.15 million a year earlier.
The investment targets set for 2015, meanwhile, considered the anticipated economic slowdown in Japan, US, and China—the top three largest markets for Philippine exports—and the impact of past natural calamities on domestic supply of raw materials and the El Niño weather phenomenon.
The economic downturn in leading Philippine markets is expected to result in slower-than-expected growth of exports of manufactured products and agro-based and resource-based commodities.
The Trade Department noted that investor confidence remained strong with the growing number of inbound investment missions.
Industries such as the information technology and business process management industry and aerospace have embarked on an aggressive investment promotion program.
Another positive development is the growing interest of investment promotion agency counterparts of other countries to partner with Philippine agencies in enhancing the flow of investments.