THE BOARD of Investments (BoI) approved P1.62 trillion worth of investment pledges this year, the highest level in 57 years.

The Department of Trade and Industry (DTI) in a statement on Thursday said the agency surpassed its investment target for the year, fueled by better-than-expected performances from the BoI and the Philippine Economic Zone Authority (PEZA).

“The P1.62 trillion in investment approvals for 2024 is a powerful vote of confidence from both local and international investors. This reflects the government’s commitment to creating a stable and attractive business environment in the Philippines and attests to the effectiveness of our policies and reforms,” Trade Secretary Ma. Cristina A. Roque said.

Investment approvals by the BoI exceeded the revised P1.6-trillion target by 1.25%, and the original P1.5-trillion target by 8%.

Year on year, BoI-approved investment pledges rose 28.57% from the P1.26 trillion in pledges greenlit in 2023.

The DTI said the renewable energy (RE) sector accounted for the bulk or P1.38 trillion of the total investment pledges. Investments pledged for the RE sector rose by an annual 40%, as the government opened up the sector to full foreign ownership. Foreign ownership of RE projects was previously limited to 40%.

Other top performing sectors are air and water transport, which had attracted P121.2 billion in investment pledges, and real estate activities (mass housing) with P37.26 billion.

Investment pledges for the manufacturing sector hit P31.67 billion, while those for the water supply, sewerage, waste management, and remediation sector reached P16.28 billion.

Among the top approved projects were the Anuhan Power, Inc.’s 1,400 megawatt (MW) Pakil Hydroelectric Power Project worth P296.98 billion; Terra Solar Philippines, Inc.’s 3,500-MW Terra Solar project worth P185.28 billion; and the Sitex Windkraft Corp.’s 600-MW San Miguel Bay Offshore Wind project worth P129.59 billion.

Other projects include the New NAIA Infra Corp.’s Ninoy Aquino International Airport Rehabilitation project worth P114.9 billion, and the Jet Stream Windkraft Corp.’s Guimaras Strait Offshore Wind project worth P114.7 billion.

Of the total investments for the period, P1.23 trillion came from local investors, while P393.31 billion came from foreign investors.

The top international sources were Switzerland (P289.06 billion), the Netherlands (P44.5 billion), Japan (P14.67 billion), South Korea (P12.73 billion), Singapore (P7.38 billion), Thailand (P3.22 billion), and the United States (P2.54 billion).

Meanwhile, PEZA approved P214 billion in investment pledges this year, exceeding its P200-billion investment target by 7%. 

“Its focus on developing and expanding its ecozones, attracting high-growth industries and providing world-class support services to investors solidified the Philippines’ position as a premier destination for foreign direct investment,” the DTI said.

Ms. Roque said the DTI will “continue to refine and implement forward-looking policies that attract investments in these key industries, ensuring that the Philippines remains a prime destination for innovation and growth.” — A.H.Halili