Large projects boost investment figures

Investments registered with the Board of Investments (BoI) and the Philippine Economic Zone Authority (PEZA) totaled PhP165.34 billion in 10 months through October, from PhP46.81 billion in the same period last year, the Trade department said in a press release over the weekend.

For October alone, BoI and PEZA investment pledges totaled PhP13.35 billion, up 14 year-on-year due to a number of large projects.

These included Convergys Philippine Services Corporation's three new business process outsourcing and call center facilities costing PhP854.27 million, and a 30-megawatt power plant to be put up by San Carlos Wind Power Corp. on Negros Island.

Other top investors for October month were Beverage Packaging Specialists, Inc., a San Miguel Corp. subsidiary; Fairchild Semiconductor (Philippines), Inc.; and Continental Temic Electronics (Phils.), Inc.

BoI and PEZA approved for incentives a total of 366 projects for January-October, with job creation expected at 71,348 upon full operation.

BoI approved PhP129.76 billion in new projects in 10 months through October, up by 429% year-on-year from PhP24.51 billion. PEZA investments rose by 60% year-on-year to PhP35.58 billion from PhP22.30 billion.

"The approved investments feature a good mix from sectors such as infrastructure, manufacturing, services, and agribusiness," the official statement quoted Trade Secretary Cesar A.V. Purisima as saying. "We expect this good run in investments to continue and close the year with more big-ticket projects."

Six energy projects (worth a total of PhP114.88 billion) and a mining venture (worth PhP1.34 billion) accounted for about 70% of total investments for January-October, more than nine times last year's figure.

Manufacturing and services grew by 45% year-on-year to PhP49.12 billion from PhP33.86 billion. And while this was only 30% of total investments, it would account for 99% or 70,837 of new jobs to be created.

Information technology or IT investments reached PhP7.45 billion as of October, a 66% growth over last year's PhP4.49 billion. A total of 68 IT projects were approved, equivalent to 24,303 jobs.

About 80% of IT investments, PhP5.92 billion, went to the contact center industry, accounting for 71% of new employment in the IT sector or 17,251 jobs.

Major IT projects as of October included those of Electronic Data Processing (Philippines), Inc.; Philippine branch of Shell Shared Services (Asia) B.V.; Sykes Asia, Inc.; E-Telecare International, Inc.; and Lexmark Research and Development Corp.

Trade undersecretary and BoI Managing Head Elmer C. Hernandez noted in the same press release that foreign pledges surged by 390% to PhP135.76 billion as of end-October, comprising 82% of the 10-month total investment. The rest, PhP29.58 billion or 18%, came from local investors.

This indicated "continued foreign investors' confidence" in the country, the statement quoted the official as saying.

"The approved project mix indicates that the Investment Priorities Plan drawn up by BoI is effective in generating the much-needed capital towards the vital industries identified by the government," Mr. Hernandez added.

Still, the Philippines' incentives package must be improved to attract more investments, he said. Mr. Hernandez noted the recent call by industry groups and foreign chambers of commerce and industry for the immediate passage of a bill that would rationalize the government's incentives program for businesses. -- F. F. Salvosa II