PHL investments fall 83% in Q1, says Trade chief

The absence of big-ticket investments caused an 83-percent drop in investment commitments to P18.4 billion from P110.404 billion a year earlier, the Board of Investments said Tuesday.

 

At a press briefing in Makati, Trade Secretary Gregory Domingo noted Petron Corp.’s P75-billion modernization and expansion project was approved in the first quarter of 2011. "So that made the big difference," Domingo said.

 

Among the sectors that registered declines in approved investments include real estate (P5.7 billion from P7.8 billion), manufacturing (P5.3 billion from P82 billion), and electricity, gas, steam and air-conditioning supply (P2.7 billion from P14 billion).

 

Gains were reflected in the accommodations and food service sector (P3.7 billion from P1 billion) and agriculture, forestry and fishing sector (P479 million from P313 million).

 

Investments by Filipino companies fell 86 percent to P15 billion from P108 billion, while investments by foreign entities went up by 53 percent to P3.7 billion from P2.4 billion.

 

The number of projects rose by 16 percent to 72 from 62, but the number of workers dropped by 20 percent to 8,622 from 10,784.

 

By nationalities, the biggest investors were the Thais, Japanese, Chinese, Italians and Americans. 

 

Foreign investors remain interested in investing in the Philippines based on the investment missions that continue to explore possibilities in the country, according to the Trade secretary.

 

"The BOI has been very busy in bringing these inbound missions. Foremost among these was the Keidanren [Japanese chamber of commerce] and three other Japanese inbound missions," he said.

 

Low inflation, stable labor sector, good governance and improved competitiveness continue to attract foreign investors to the Philippines, Domingo noted. —VS, GMA News