PHL banks on BPO, manufacturing to support investments

Investments in the country are expected to increase by 5 percent this year, the Department of Trade and Industry (DTI) said on Thursday.

The business process outsourcing (BPO), services, and manufacturing sectors will remain as the main growth drivers, supported by a boost in public expenditure, newly appointed Trade and Industry Secretary Adrian S. Cristobal told reporters during a briefing in Makati City.

“Conservatively, we’re looking at 5 percent. We expect to see that this year,” he said.

“Historically, whenever we have an election year, the economy grows at about 7 percent obviously because of election-related spending,” Cristobal added.

The Board of Investments (BOI), DTI’s investment promotion arm, approved 385 projects worth P366.74 billion last year, up by 3 percent from P354.76 billion in 2014.

These projects are expected generate 58,252 employment opportunities when fully in place, the DTI said in a separate statement.

“For the past three years or so we’ve shifted our emphasis on jobs generation and not so much on the figures, but conservatively, from the Board of Investments (BOI), it was up about 3 percent (in 2015),” Cristobal said.

Power projects

Major foreign investments came from the Netherlands, which accounted for P26.70 billion or 45 percent of the total, Singapore (P10.80 billion or 18 percent), Malaysia (P2.67 billion or 4 percent), South Korea (P2.41 billion or 4 percent), and Taiwan (P2.37 billion or 4 percent).

The DTI attributed the increase in investments to big power projects such as the Olympia Violago Water & Power Ltd. Co. at P69.13 billion, the San Buenaventura Power Ltd. Co. at P49.45 billion, and Semirara Mining and Power Corp. at P29.5 billion.

“The increase in power investment projects augurs well for the country’s goal to ensure energy security and independence.  These investments support the Philippine Energy Plan (PEP) 2010 to 2013 to search for, discover, and further develop energy sources,” BOI managing head Ceferino Rodolfo said.

Overall, energy-related investments totaled P246.42 billion from 55 projects while the manufacturing sector grew to P27.01 billion in 2015.

“The continued growth of the manufacturing industry is a clear indication of the efforts to boost the growth and further development of the sector through the Manufacturing Resurgence Program (MRP),” said.

The MRP seeks to build on agriculture-based manufacturing industries that generate employment and support small-holder farmers and agri-cooperatives through product development and integration with big enterprises for marketing and financing.

“The revival of the manufacturing sector is key to inclusive economic growth because it will generate much-needed employment and help the country tap regional production networks,” Rodolfo said. – VS, GMA News