BoI, PEZA investment vows more than double

Foreign direct investments committed to two lead agencies more than doubled in the first two months from year-ago levels, boosting government hopes of generating jobs for thousands of Filipinos. Projects registered with the Board of Investments (BoI) and Philippine Economic Zone Authority (PEZA) totaled P29.95 billion in January to February, up by 107 percent from a year earlier, board Managing Head Elmer C. Hernandez told reporters last week. Of this, projects pledged with the BoI more than tripled to P9.92 billion. The amount includes a P5.09-billion pledge from listed Filipino firm PetroEnergy Resources Corp. to put up two wind power projects in Nabas, Aklan and Sual, Pangasinan, Hernandez said. Foreign direct investments are thought to be more useful to a country than investments in the equity of its companies since stock investments are potentially "hot money" that can leave at the first sign of trouble. In contrast, foreign direct investments are generally useful whether things go well or badly since these are placed in so-called brick and mortar enterprises that generate jobs for thousands of Filipinos. The result was a good start for the BOI, which is aiming to increase pledges by a tenth to P136.592 billion this year after its 2009 tally was more than halved amid the global economic slump. The PEZA, as earlier reported, posted P20.04 billion worth of projects in the first two months, up by three-quarters from a year earlier. It is targeting a 15-percent increase to P201.670 billion this year. This includes pledges from Japanese firms for factories that will produce electronic chips and solar panels, Hernandez said. Filipino- and foreign-owned companies cornered nearly equal shares of the investment approvals, he said. Filipino-owned firms accounted for P15.38 billion while foreign-owned firms contributed P15.37 billion. Japanese firms were the top sources of foreign investment pledges during the period, followed by Singaporean and American companies. Almost half of the investment pledges were for manufacturing projects, Hernandez said. "This is good because it [generates jobs]," he pointed out. Real estate and power projects were also among the common pledges, he added. — Jessica Anne D. Hermosa, BusinessWorld