MANILA, Philippines – A total of 59 projects valued at P54.62 billion ($1.23 billion) was approved by the Board of Investments (BOI) for January to March 2015.
BOI reported Friday, April 10, that the approved projects are up 17% versus the P46.77 billion ($1.05 billion) for the same period in 2014.
When the approved projects for the period are fully operational, these are expected to generate 18,174 jobs, up from 2014’s 11,636, BOI said.
Manufacturing growth surges
Higher figures recorded during the first quarter are due to the approved notable big ticket projects listed under the electricity, gas, steam, and air-conditioning supply sector, which include power generating plants and renewable energy projects.
Thus, the sector generated P13.76 billion ($308.88 million) in total investments, up by 30% from P10.5 billion ($235.70 million) in the same quarter in 2014.
But it was the manufacturing sector that posted the biggest growth, as investments skyrocketed by 517% to P12.90 billion ($289.53 million) from P2.08 billion ($46.68 million) in 2014.
The surge in manufacturing projects reflects the results of the initiatives of the Manufacturing Resurgence Program (MRP), a government priority program initiated to push for a 30% increase in Gross Value Added (GVA) and a 15% increase in employment by 2025.
The manufacturing sector grew slowest in January, attributed to the decline in demand post-holiday season, the National Economic and Development Authority (NEDA) said in March. Specifically, lower food production and firms keeping their production at manageable levels at the start of 2015 dragged down the sector’s growth.
Meanwhile, other sectors with substantial contributions to first quarter-approved projects include transportation and storage with P10.48 billion ($235.26 million) and real estate with P9.09 billion ($204.07 million).
Local investors’ contribution
Of the total investment approvals, 96% or P52.25 billion ($1.17 billion) came from local investors and the remaining 4% or P2.38 billion ($53.42 million) was generated from foreign sources.
Singapore topped the list of foreign investors with 59% of the total foreign investments or P1.41 billion ($31.64 million).
Other top foreign investors include:
- British Virgin Islands – P877.75 million ($19.70 million)
- People’s Republic of China – P31.19 million ($700,015.59)
- Cooks Island – P8.87 million ($199,115.55)
- Denmark – P8.87 million ($199,115.55)
- Norway – P8.83 million ($198,213.55)
- Bermuda – P8.82 million ($198,013.40)
- Japan – P8.77 million ($196,890.88)
- Germany – P7.77 million ($174,434.17)
- United Kingdom – P4 million ($89,797.69)
- India – P3.37 million ($75,654.37)
Region 4 or CALABARZON received the biggest share of investments with P13.47 billion ($302.39 million) worth of projects.
The National Capital Region posted P8.62 billion ($193.49 million), followed by Region 6, P7.49 billion ($168.16 million); Region 7, P6.86 billion ($154.01 million), and Region 10, P5.22 billion ($117.19 million). – Rappler.com
$1 = P44.54
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