Investment pledges are seen to rise to nearly P400 billion by 2012, equivalent to 10 per cent increase from 2011, according to Cristino Panlilio, Trade Undersecretary for investment promotions.
“The BOI is looking at P350 billion for this year and we are looking to increase that by at least 20 per cent. Our registration in BOI should therefore amount to P380-90 billion toward the end of 2012. ”
Drivers for next year’s growth will come from sectors like tourism, energy, agribusiness, high-impact strategic projects, and ship building,” Panlilio said, adding that most projects are expected to be export-oriented.
The bulk of foreign direct investment will still come from traditional trade partners such as Japan, South Korea, China, the United States, the United Kingdom, and European Union members such as Germany and Spain
He expressed satisfaction that in spite of the Middle East crisis and the western economic down turn, investment registration in the Philippines hit an all-time high. That will set the tone for the coming year, he said,
The western crisis is not a cause for worry he said … “because what we are trying to attract are companies looking for a low-cost destination. We also have to consider that the world economy is still projected to grow by 4 per cent,” Panlilio said referring to an International Monetary Fund forecast.
“We are also striving to become a replacement destination for displaced companies in Japan and Thailand.”
The BOI has already identified a dozen Japanese companies in Thailand that also have operations in the Philippines, so it’s just a matter of expanding operations here.
The BOI has also set separate targets for domestic investments. A 50-50 ratio of local to foreign investments is ideal, Panlilio said. Currently, however, local businesses take up almost three-quarters of investments. Since local investments will not be enough to reduce poverty levels, “we are hoping the FDI component will grow faster.
Adapted from Business World, December 21, 2011