Manila, Philippines — The country’s seven largest conglomerates are investing close to P200 billion for capital expenditures this year in a massive show of confidence in the local economy.

The seven groups are led by flagships First Pacific/Metro Pacific Investments Corporation, Ayala Corporation, JG Summit Holdings, SM Investments Corporation, San Miguel Corporation, Lopez Holdings Corporation, and Aboitiz Equity Ventures.

First Grade Holdings Managing Director Astro del Castillo said the figure is “probably understated as we don’t have the figures for San Miguel (Corporation)’s energy ventures, for 2010.”

He said telecommunications continue to lead the way, among the different sectors the conglomerates are investing in, with it accounting for over P60 billion of the budget.

Public infrastructure comes next at approximately P57 billion, but this is before any uplift to reflect recent government announcements on boosting spend in this area, while Real Estate comes in third with P24 billion.

Del Castillo said the largest business group in the country in terms of market capitalization, turn-over, EBITDA and capital expenditures is the group chaired by Manuel V. Pangilinan.

He said FPC and MPIC is investing P49.2 billion this year and is an important contributor to the economy with total turnover equivalent to approximately 6 percent of the nation’s gross domestic product.

“A strong team is responsible for the implementation of their three pronged strategy continued dominance in telecommunications, assembly of the best portfolio of infrastructure assets in the country and development of the natural resources industry,” De Castillo noted.

The Ayala group is investing P40.57 billion continues to be driven by three primary legs: banking, real estate and telecommunications although it is doing very will with its entry into infrastructure, Manila Water.

However, he noted that Ayala has been “a little more conservative than the other business groups in expanding.”

The Gokongwei group has allotted P33.03 billion for its investments and “it seems like they are planning to double down on their consumer goods investment as they are seen as one of the leading bidders for Purefoods,” Del Castillo said.

The SM group is spending P12.87 billion as it takes steps to vault its other companies into leading positions after having established itself as the clear leader in the retail sector.