Tuesday, 23 November 2010

10-month investments rose 200% to P237b

by Julito G. Rada
Manila Standard

The Board of Investments approved P237 billion worth of investment pledges in the first 10 months of the year, up 194.7 percent from P80.4 billion year-on-year, on the back of growing investor confidence in the Philippine economy.

The 10-month figure is just P50 billion short of the agency’s full-year target of P287-billion target.

Lucita Reyes, BoI executive director, earlier said she was confident the agency would slightly overshoot its target this year by almost 4.52 percent to P300 billion, citing several pending projects for approval by the board.

She said she expected more approvals for the rest of the year as investors normally try to catch up before the year ends.

A BoI source earlier said over 200 projects were awaiting for board approvals, an unusual number compared with those in the previous months.

The source said the higher number of projects indicated that investors, especially those from abroad, remained confident in the country’s business climate.

The source said the projects were mostly in manufacturing, electronics and other industries like energy, shipping, garments expansion and housing.

One of the latest big investments in housing was the P1.05-billion Wind Residences Towers 1 and 2 in Tagaytay City by SM Development Corp., the property arm of the SM Group of retail tycoon Henry Sy.

The project involves the development of 22,597 square meters of land and the construction of two 20-story condominium buildings. It will generate 576 jobs when construction starts next month.

SMDC has also recently sought incentives for its P3.11-billion Sun Residences Tower 1 and 2 at the corner of España and Mayon St., Quezon City. The firm has three mass housing projects in Quezon City, Sta. Mesa and San Dionisio, Parañaque.

The government has projected overall investments target in 2010 to hit P345 billion, including those generated by the BoI, Philippine Economic Zone Authority, Clark Special Economic Zone and Subic Bay Metropolitan Authority.

BoI and Peza contribute about 90 to 95 percent of the country’s overall investments inflow.

The Philippines registered an all-time high investment figure of P464.2 billion in 2008. Pledged investments, however, declined in 2009 to P314 billion following the global financial crisis.

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