7-mo Investments OKd by BOI, Peza Hit 134B
by Ronnel W. Domingo

Investments registered with the Board of Investments and the Philippine Economic Zone Authority in the first seven months reached 133.67 billion, according to Trade Secretary Peter B. Favila.

Data from the Department of Trade and Industry showed that the amount, which would be infused into 312 projects, was 7.8 percent lower than the P145 billion posted in the same period last year.

The high investment registration level last year was attributed to GNPower Ltd.’s P96.52-billion power complex.

Favila said investments in the manufacturing sector went up 396 percent to P100.97 billion or three-fourths of the total investments approved during the period.

He said almost half of the manufacturing projects registered involved the processing of coking coal, refined petroleum and other fuel products, while a quarter involved the production of chemicals and chemical products.

The other projects are into the production of radio, television and communication devices, and non-electronic components.

“The upbeat investment in this sector supports the country’s thrust of developing a strong manufacturing industry that not only generates jobs but also facilitates the transfer of technology,” Favila said.

He added that manufacturing and services projects would create a total of 52,692 new direct jobs or 98 percent of the total.

Trade Undersecretary Elmer C. Hernandez, who is also the BOI’s managing head, said 6.5 billion worth of projects were approved in July, which was 14.2 percent higher than the P5.7 billion posted in the same month last year.

Hernandez said 14 foreign investors pledged higher investments compared to those committed by local investors, with P3.7 billion against P2.80 billion.

Local investments approved in July increased by 210 percent with a total of 50 projects that were expected to create an additional 9,339 new jobs when fully operational.

Hernandez said that for the first seven months of 2005, investments from Korea, the Netherlands and the United States continued to post remarkable gains amounting to P9.79 billion and P5.15 billion respectively.

He said these figures indicate that investor confidence in the Philippines was still high and that investors were not affected by the current political noise.

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Originally published in the Philippine Daily Inquirer, September 28, 2005.