Q1: BOI – Php 47B Approved Investments, 60.74% boost in jobs generation

 

 

Q1: BOI – Php 47B Approved Investments, 60.74% boost in jobs generation

An increase of 60.74% in jobs from Approved Investments by the Board of Investments (BOI) was recorded in the first quarter compared to the same period last year.

 

The BOI posted total investment approvals amounting to Php 46.77 Billion for the first quarter of the year. The BOI-approved projects are expected to generate 11, 636 jobs, compared to last year’s 7,239 jobs for the same period.

 

BOI Managing Head Undersecretary Adrian S. Cristobal Jr. said that the significant increase in job generation is a result of the substantial investments in the Manufacturing Sector which grew by 168%, from Php 777 Million to Php 2.1 Billon over the same period last year. “The steady progress of the government’s policy reform program and industry development initiatives provide a favorable environment for meaningful investments in sectors that directly impact on increasing employment opportunities.”

 

The Industry Development Program (IDP), launched in January 2012 by the DTI-BOI, was to forge strategic partnerships with industry stakeholders to develop sectoral roadmaps that would contain the industry’s vision, goals/targets, and strategies for the short, medium, and long term growth of their industries as well as the required interventions from government to reach the industry’s goals/targets.

 

“The industry roadmap project reflects the actual needs of industry as seen through the more than 27 industry roadmaps completed last year. These include investment gaps and more importantly, the need to revive the Manufacturing Industry, with its high impact on jobs generation,” Cristobal added.

 

Cristobal added that domestic investments dominated the total investment commitments at 90% or Php42.08 Billion. The balance of 10% or Php4.69 Billion came from foreign sources.

 

PPP

The BOI-approved projects include two Public – Private Partnership (PPP) projects for School Infrastructure in Regions I, III and IV expected to contribute 3,614 jobs; 17 mass housing projects to employ 7,263 construction related personnel and 8 manufacturing firms to generate 542 direct employment.

 

Investment Commitments

Real Estate Activities, specifically, the Mass Housing sub-sector recorded the largest share of investment commitments at Php17.96 Billion or 38% share; followed by the Construction Sector with Php11.05 Billion or 24% share; Electricity, Gas, Steam and Air Conditioning Supply Sector   (e.g., power generating plants, renewable energy projects) with Php10.55 Billion or 23% share and Transportation and Storage with Php4.47 Billion or 10%  share; and Manufacturing Sector with Php2.09 Billion or 4%.

 

Increases

Substantial increases were noted in the Manufacturing Sector which grew by 168% from Php 777 Million to Php 2.1 Billon; Real Estate Activities by 116.39% from Php 8.30 from Php 17.96 Billion; and  Information and Communication Sector 646% from Php 66 Million to Php 496.7 Million.

 

Foreign Sources

Topping the list of foreign country sources is the United Kingdom with investments of Php1.46 Billion or 31% share to total foreign investments in 2014.  Investments from Japan amounted to Php874.78 Million (19% share); the Netherlands contributed Php492.50 Million (10% share); Thailand, Php237.28 Million (5% share); and Taiwan, Php16.08 Million (0.34% share).

 

Top Investments

Top projects approved for the quarter are Citicore Megawide Consortium, Inc. (Php 8.5 Billion), SM Development Corporation (Php 5.9 Billion), Prime Meridian Powergen Corporation (Php5.57 Billion), Cebu Air Inc. (Php 3.9 Billion) Agusan Power Corporation (Php3.66 Billion), and Bright Future Educational Facilities, Inc. (Php 2.5 Billion).

 

Distribution of Investments

The National Capital Region generated the most investments with Php 19.86 Billion in investments or  42.5 % share of  total investments; followed by Region 4 with Php 8.32 Billion  or 17.9% share;  Region 13 with Php 3.66 Billion or 7.8% share;  Region 8 with  Php 1.36 Billion  or 2.9% share;  and Region 3  with  Php 0.78  Billion or 1.7 % share.

 

Year on Year

BOI-approved investments for the first quarter of 2014 decreased by 52% from Php 97.19 Billion to Php 46.77 Billion, a difference of Php 50.42 Billion. It should be noted however, that the single big ticket item that contributed to the impressive investment figure for the same period last year was the Redondo Peninsula Energy, Inc. power project amounting to Php 62.86 Billion.

 

However, for the first quarter of this year, the Manufacturing Sector and Real Estate Activities registered substantial increases in investment commitments, both labor intensive sectors. (END)