MANILA, Philippines – Filipino investors have committed to invest more in the Philippines in the first 11 months of 2011, a reversal from previous years when foreigners were the main source of capital in the country.
In the latest data of the Board of Investments, registered committed investments from January to November reached P362 billion, a 42% increase from the same period in the previous year. It was also higher than the agency’s own P350 billion forecast for 2011.
Of the P362 billion committed investments, Filipinos accounted for bulk at P339 billion compared to just P23 billion infused by foreigners.
Local oil refiner and retailer Petron Corp., which is controlled by diversifying conglomerate San Miguel Corp., led the Filipinos investors who poured capital during the period.
In May, Petron announced that is embarking on an ambitious P74.78 billion five-year modernization and expansion program to transform its refinery in Limay town in Bataan province.
The BOI approved a five-year income tax holiday, an incentive under the Downstream Oil Industry Deregulation, for Petron so it could produce “greener” fuel products that are compliant with Euro international standards.
Revenue losses due to tax incentives account for just 2% of the anticipated collection every year, according to the agency.
Meantime, Japan was the biggest investor-country with P6 billion poured mostly into renewable energy, manufacturing and real estate development in industrial parks. Two major projects in manufacturing were in electronics. – Rappler.com