“Reaching P1.35T in investment approvals…represent more jobs for Filipinos, opportunities for MSMEs to be part of global value chains, pathways for innovation, and significant economic progress across the nation.” — Acting DTI Secretary Cristina Roque
AS IT marked its 57th founding anniversary last September 16, the Board of Investments (BOI) achieved a remarkable milestone by surpassing its full-year investment approval target.
The BOI, an attached agency of the Department of Trade and Industry (DTI), has been at the forefront of the country’s investment promotion efforts. Established in 1967, the agency has played a crucial role in fostering industrial transformation and driving economic growth by promoting investments that align with the government’s development goals.
Throughout its history, the BOI has adapted to changing economic landscapes, responding to emerging challenges with innovative policies and investment promotion strategies. Its efforts have been pivotal in positioning the Philippines as a competitive investment destination in Southeast Asia, particularly through its focus on key industries such as manufacturing, electronics, energy, and agriculture.
Impressive performance for 2024
By mid-September, the BOI reported a total of P1.35T in investment approvals, significantly exceeding its original goal of P1.26T. This figure represents an impressive 82 percent growth compared to the P741.98B in investment approvals recorded during the same period in 2023.
At the forefront of these approvals is the energy sector, specifically renewable energy projects, which accounted for P1.29T of the total. Other key sectors contributing to the overall investment portfolio included real estate activities (including mass housing) at P20.28B, Manufacturing at P12.13B, agriculture, forestry, and fishing at P10.05B, and administrative and support services at P5.46B. The focus on renewable energy aligns with the Philippine government’s strategic push toward sustainability and a greener economy.
Record approvals reflect investor confidence
The BOI’s ability to surpass its investment approval target so early in the year has been hailed as a major achievement, reflecting both local and foreign investors’ confidence in the Philippine market. Newly appointed Acting Trade Secretary Cristina Roque noted the significance of the P1.35T milestone in boosting investor sentiment and its broader implications for the country’s economy.
“Reaching P1.35T in investment approvals by mid-September highlights the government’s success in cultivating a stable and attractive environment for investors. These approvals represent more jobs for Filipinos, opportunities for MSMEs to be part of global value chains, pathways for innovation, and significant economic progress across the nation,” said Roque. She reaffirmed the Department of Trade and Industry’s (DTI) commitment to maintaining this momentum under the administration’s Bagong Pilipinas vision.
The data indicates that local investments played a key role in reaching this record approval level. Filipino firms accounted for P1.01T, marking a dramatic 221 percent increase compared to the previous year. Regionally, the CALABARZON area emerged as the top recipient of local investments, attracting P602.63B. Other notable regions included Central Luzon, with P258.68B, Western Visayas with P238.88B, the Bicol Region with P142.87B, and Ilocos Region with P62.68B.
Foreign investments also contributed significantly, totaling P341.78B in approved projects. Switzerland led the way with P286.77B in investments, followed by the Netherlands with P39.58B, and Singapore with P6.18B. The United States and Taiwan also made smaller yet notable contributions with P1.68B and P1.30B, respectively.
Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo expressed his enthusiasm over the BOI’s accomplishment and the strong investor confidence demonstrated by both local and international stakeholders. “As we celebrate our 57th anniversary, we are more inspired with the strong show of confidence by local and foreign investors in the Philippines, that has made it possible for BOI to hit early the P1.35T mark in investment approvals,” Rodolfo said.
He added that these investments would be crucial in driving the country’s long-term economic development, with a focus on sustainability and smart manufacturing. “This accomplishment highlights both our agency’s unwavering commitment to nurturing a thriving investment landscape and in harnessing our country’s potential to be the prime investment destination for smart and sustainable manufacturing and services,” Rodolfo said.
Creating more investment potential
Special Assistant to the President (SAP) for Investment and Economic Affairs, Frederick D. Go, underscored the importance of these investments, particularly in driving national economic priorities. “We have identified key sectors–renewable energy, semiconductors & electronics, mining & mineral processing, food & agriculture, pharmaceuticals, and steel — as essential drivers of the country’s growth. The approved investments in these sectors illustrate our steady progress in realizing these priorities,” Go said.
SAP Go further emphasized the efforts of his office, the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA), in working with various Investment Promotion Agencies to push forward the CREATE MORE Bill. This legislation is seen as vital to improving the ease of doing business in the Philippines and fostering inclusive economic growth, while also solidifying the country’s reputation as a premier investment destination.
Powering the Philippines with renewables
In recent years, the BOI has placed particular emphasis on renewable energy as part of the Philippines’ broader commitment to sustainability. This focus has not only attracted significant foreign investment but also positioned the country as a leader in green energy within the region.
The BOI has endorsed over P3.74T worth of RE projects for fast-tracked processing under the “green-lane” initiative, which accelerates the approval of key investments. This initiative, established in 2023, ensures that strategic projects such as those in renewable energy, digital infrastructure, and food security get priority processing, encouraging both local and foreign investments in the sector.
Notably, offshore wind energy has been a significant focus, with major projects such as BuhaWind Energy Philippines’ ventures in Northern Luzon and Mindoro contributing to the nation’s clean energy goals. This surge in RE investments comes after the government lifted the cap on foreign ownership in the energy sector, positioning the country to attract more international investors and become a global leader in clean energy. The push aligns with the Philippines’ goal of reducing carbon emissions and creating jobs, with renewable energy contributing heavily to the national economic agenda.
The Cayanga-Bugallon Solar Power Project in Pangasinan, developed by PV Sinag Power Inc., and the Calabanga Solar Power Plant in Camarines Sur have both begun operations under this streamlined process, underscoring the impact of these reforms. By focusing on sustainable and innovative energy solutions, the DTI aims to propel the Philippines into the forefront of the global green energy movement.
PV Sinag Power Inc., is a subsidiary of AboitizPower, has a peak capacity of 94.717 MW and is expected to produce about 147 million kilowatt-hours annually. It represents a significant part of AboitizPower’s renewable energy portfolio. Similarly, the Calabanga Solar Power Plant, operated by Calabanga Renewable Energy (CARE) Inc., has a capacity of 74.13 MW.
A legacy of economic growth and investment promotion
The success of these efforts reflects the DTI’s broader commitment to fostering sustainable economic growth while enhancing the country’s investment climate, particularly through renewable energy and other strategic sectors.
The first three quarters of 2024 is as sign that the investment climate here continues to improve, sending a clear message that the BOI is “Making it Happen in the Philippines.”
As the BOI looks toward the future, it is committed to further enhancing its investment promotion efforts, particularly in sectors that drive sustainable growth, create jobs, and improve the quality of life for Filipinos. The agency’s vision remains focused on fostering an inclusive and resilient economy, guided by principles of sustainability, innovation, and industrial transformation. — by Deriq T. Bernard
