BoI-approved investment pledges drop 23% to PHP27.4B in May

The Board of Investments (BoI) on Monday said it approved PHP 27.41 billion worth of investment pledges in May, down 23% from the PHP 35.7-billion pledges approved a year ago.

In a statement, the agency said approved investment pledges reached PHP 640.22 billion in the first five months of 2024, up by 14% year on year, and the “highest five-month approval in the BoI’s 57-year history.”

Approved investment pledges in May were the lowest since PHP 27.07 billion in February 2024.

The BoI said the 66 projects approved in May are expected to create over 1,700 jobs.

It said PHP 26.74 billion worth of projects were being undertaken by local investors, and PHP 675.23-million projects by foreign investors.

For the January-to-May period, the investment approvals consisted of 209 projects, which are expected to create 13,871 direct jobs.

Of the total, PHP 525.85 billion were domestic investments, while PHP 114.37 billion were foreign investments.

The domestic investments will go to projects in Calabarzon, Ilocos Region, Central Luzon, Bicol Region and Western Visayas.

Switzerland was the top source of foreign investments during the period, accounting for PHP 62.89 billion of the total.

It was followed by the Netherlands (PHP 39.33 billion), Singapore (PHP 6.07 billion), China (PHP 1.53 billion), Taiwan (PHP 1.28 billion) and the US (PHP 953 million).

The renewable energy (RE) sector accounted for PHP 607.47 billion of the total investments during the five-month period, up by 20.7% from PHP 503.18 billion a year ago.

RE projects have been increasing since the government opened the sector to full foreign ownership last year.

Investments in the agriculture sector reached PHP 9.56 billion, while investments in the real estate industry stood at PHP 8.17 billion.

The BoI approved PHP 4.61 billion worth of transportation and storage projects, as well as PHP 4.36 billion worth of manufacturing projects.

Investments surged in the financial and insurance sectors, with PHP 227.95 million worth of projects in the January-to-May period, up more than three times from PHP 67.82 million a year ago.

The DTI said the increase in the five-month approval aligns with the surge in foreign direct investments (FDIs) in the first quarter.

In January to March, FDI net inflows increased 42.1% to $2.97 billion from $2.09 billion a year earlier, the Bangko Sentral ng Pilipinas (BSP) said.

“The upward trajectory in FDI net inflows and approved investments follows the pattern of commitments from various trade missions initiated by investment promotion agencies, including the goodwill fostered through the President’s business trips abroad,” Trade Secretary and BoI Chairman Alfredo E. Pascual said in a statement.

For 2024, the BoI has an internal target of reaching up to PHP 1.5 trillion in investment approvals.

Last year, it approved PHP 1.26 trillion in investments, 66% or PHP 763.22 billion of which were foreign investments. — Justine Irish D. Tabile