The decline in investments inflow into the country slowed down to 4.6 percent in the January-August period this year from 7.78 percent in the January-July period of the same year with combined investments of the Board of Investments and the Philippine Economic Zone Authority reaching P145.61 billion versus P152.63 billion in the same period last year.
Trade and Industry Secretary Peter B. Favila attributed the narrowing down of the decline in investment inflow to the significant performance in August, which project approvals for the month reached
P11.93 billion or 631 percent more than the P1.63 billion registered for the same period a year ago.
There were 52 projects approved in August the biggest of which is the P3.75 billion project of Wyeth Philippines Inc. for a regional production hub of infant formula milk in Canlubang Industrial State in Laguna.
The 52 projects approved in August is expected to create 13,283 new jobs. The month of March remains to be the peak month in terms of investment approvals with P55.27 billion.
Favila noted there were a total of 365 projects registered by the two investment generating agencies for the first eight months this year highlighted by the inflow of capital in the manufacturing sector.
"Investments in the manufacturing sector increased by 316 percent, accounting for P109.79 billion, or 79 percent of total approved investments," Favila said.
Favila noted there were 332 approved projects in the manufacturing and services sector that are expected to generate 65,975 direct jobs once these projects are fully operational, accounting for 98 percent of total employment of 66,888 direct jobs for the 365 approved projects. (BCM)
"The continued increase in investments in the manufacturing sector validates the wisdom of developing the manufacturing industry not only to generate jobs but also facilitate technology transfer to the country," Favila added.
"The influx of investments in manufacturing showcases the country as a preferred platform for operations for both local and foreign businessmen. Businesses are seeing the advantage of locating in the country such abundant competent managers, skilled and trainable manpower and excellent infrastructure," he added.
Trade Undersecretary and BoI managing head Elmer C. Hernandez cited the performance of the IT services sector.
For January to August period, investments in the IT services sector increased by 10 percent with P6.35 billion in new investments from P5.77 billion generated for the same period last year.
There were 67 approved IT related projects, mainly engaged in software development and business process outsourcing (BPOs) are expected to generate 24,350 jobs once they go on full swing.
IT investments as measured per employment generated showed substantial improvement from P312,098 in 2004 to P260,978 this year. This indicates that the cost of job generation in the IT sector decreased by P51,120, a 16 percent cost efficiency.
"Lower cost of job generation means the Philippines remains competitive in the sector, thus, we expect more IT and IT-related services to do business in the country in the following months," Hernandez explained.
The investments in the manufacturing sector is 41 percent accounted for by coke, refined petroleum and other fuel products, 25 percent by the chemicals and chemical products, 9 percent by radio, television and communication equipment and apparatus, 7 percent by manufacturing NEC and 18 percent by other manufactured products.
Secretary Favila said that he expects more investments to pour in during remaining four months of the year based on leads and proposals under consideration. These would be in IT, mining, logistics, automotive, chemicals, among others.
Top sectors in August are manufacturing with P8.81 billion compared with P862 million from August 2004; IT services (P1.19 billion from P451 million); and other community, social and personal service activities (P804 million).
Local investors continue to be the major source of investments during the period with commitments of P89.45 billion while foreign investments account for P56.15 billion. Among the foreign sources of investments, Japan tops with P23.22 billion, followed by Korea at P9.85 billion, the US with P9.43 billion and the Netherlands at P7.58 billion.
Foreign investors pledged higher investments (P9.48 billion) compared with local investor commitments (P2.45 billion). Local and foreign investments were increased 354 percent and 769 percent respectively compared with the same period last year. (BCM)
