Trade Secretary and Board of Investments Chairperson Ramon Lopez announced a P1.25-trillion project approval target in 2021, after investment applications reached P1.02 trillion last year.
“We are working hard for a V-shaped Philippine economic recovery in 2021 and are hence targeting the original 2020 pre-pandemic goal for investments,” said Lopez.
Data from the BOI showed approved investments in 2020 dropped 11 percent from the record P1.14 trillion in 2019. The BOI said it originally set a P1.25-trillion target for 2020 but this was re-calibrated to P1 trillion amid the pandemic.
The BOI said towards the end of 2020, it achieved the target with the endorsement of the Department of Energy of two strategic power projects and the approval of a critical water supply and distribution project which is crucial in ensuring water security and contributing to flood-control.
It said while the 2020 approvals were 11 percent lower than the 2019 figures, they represented the second highest in BOI’s 53-year history.
“We thank the business community for, despite the pandemic, continuing to invest in mid-to-long-term strategic projects that will significantly contribute towards a more modern and efficient, industrial Philippines,” said Lopez.
“Moving forward to 2021, we expect that investments in these types of projects will intensify particularly in infrastructure [road, ports and telecoms], water and power,” he said.
The Philippines is one of the countries to buck a severe contraction in global foreign direct investment inflows which declined by 42 percent. The United Nations Conference on Trade and Development said FDI inflows to the Philippines increased by 29 percent.
Trade Undersecretary and BOI Managing Head Ceferino Rodolfo highlighted the role of investment facilitation to meet the agency’s target.
“BOI—working with other government agencies—is committed to extending support so existing businesses stay afloat and operating; and guiding new investors to facilitate their entry,” said Rodolfo.
Data showed that the BOI approved 311 projects in 2020 which once fully operational would generate 55,124 jobs.
Domestic investments accounted for P968.45 billion or 95.3 percent of the total approved investments while foreign investments reached P47.7 billion or 4.7 percent.
Among foreign investors, the United States was the pace-setter with P11.2 billion, up 303 percent from P2.8 billion in 2019. The Netherlands ranked second with P2.7 billion followed by Singapore with P2.2 billion. France and Japan had P1.6 billion and P1.2 billion, respectively.
Central Luzon (Region III) topped all regions in 2020 with P576.1 billion on the strength of the mammoth Bulacan airport project.
“We welcome the passage in the Congress bicameral committee of the Corporate Recovery and Tax Reform which will be a game changer. It will definitely remove uncertainties in the incentives regime and give a big boost in attracting investments for the country. We thank the Senate and House of Representatives for making this possible,” said Lopez.