BoI, PEZA investment pledges double

REPORT FROM BUSINESSWORLD Manufacturing and information technology (IT) services topped the list of investment pledges before the Board of Investments (BoI) and the Philippine Economic Zone Authority (PEZA) for the first two months of the year, contributing P22.5 billion out of the total P26.8 billion, data showed. Total investment pledges more than doubled from P11.9 billion in projects approved in the same period last year. IT-related services rose more than seven times to P4.58 billion from P527.5 million while the manufacturing grew 164% to P14.3 billion from P5.4 billion during the same period last year. Internet gaming firm Phil-web Corp. committed to infuse P147.8 million while Focus-media Audiovisuals and Philippine Autocomponents registered P126.7 million and P80.0 million worth of projects, respectively. Manufacturing was supported with the infusion of P564 million by Mabuhay Vinyl Corp., manufacturer of caustic soda, hydro-chloric acid and liquid, and P453.3 million by Pilipinas Kyohritsu, producer of wiring harnesses. The BoI approved 49 projects worth P6.81 billion while PEZA signed up 80 projects worth P19.97 billion. Foreign investors led by Japanese and Americans committed investments totaling P15.6 billion, while local investors contributed P11 billion. The Japanese committed P6.5 billion and the Americans, P3.3 billion. In a statement, Trade Secretary Peter B. Favila said the new investments for the two-month period would generate 25,131 new jobs with 16,047 in the IT sector alone. The figure is 76% more than the 9,125 jobs created for the same period last year. "The investments in IT are the result of our IT missions to the US and Europe. We will continue to focus on this productive investment-promotion scheme for this year," Mr. Favila added. Industry figures showed that IT-allied and business process outsourcing (BPO) services are projected to generate $12.2 billion in annual revenues and employ 920,000 workers by 2010, from the 237,000 jobs and $3.5 billion in revenues in 2006. — Reagan D. Tan/BusinessWorld