The Trade Department said Wednesday investment pledges in the first four months of 2016 rose 64 percent to P117.3 billion from P71.6 billion year-on-year.
Trade Secretary Adrian Cristobal Jr. attributed the increase in investment commitments to more power and infrastructure projects seeking fiscal incentives.
“We see continuing increase [of projects] compared to first quarter figures. BoI [Board of Investments]-approved projects reflect the same investor confidence in the economy,” he said in a briefing Wednesday at the Board of Investments in Makati City.
Domestic investments accounted for 86 percent of the total pledges while foreign investment comprised 14 percent.
Approved investments in April amounted to P55.3 billion, up 225 percent from P17 billion on year.
Two infrastructure projects that registered with the BoI in April were the P16.7-billion airport of Megawide Cebu Airport Corp. and the P15.2-billion rail expansion of Light Rail Manila Corp.
“These projects will help address logistical challenges,” said Cristobal.
Two other notable approvals were the renewable energy projects of Bayog Windpower project in Ilocos Norte and South Negros Biopower in Negros Occidental.
Bayog Windpower proposes to build a 150-megawatt energy facility using wind power that will cost about P14.7 billion, while South Negros plans to construct a 25-MW station using biomass fuel at a cost of P4.9 billion.
The BoI noted that renewable energy projects had been increasing in the greater Manila area and Cebu as well as in the Cordillera and Benguet areas.
The BoI also received proposals in the first four months to build hydro-electric power projects in Benguet and another P162.8-billion plant in the Cordillera region.
Total foreign direct investments in the first two months of the 2016 rose 51 percent to $196 million wth manufacturing accounting for 6.3 percent or about $59.33 million.
Net inflows of foreign direct investments, meanwhile, jumped 51 percent in the first two months to $936 million from $622 million a year ago, as investors’ confidence was buoyed by economic growth prospects and sound macro-economic fundamentals, the Bangko Sentral ng Pilipinas said.
Equity capital placements contributed largely to the inflows in the two-month period, up 119 percent to $449 million from $205 million a year earlier.
“This was due to the increase in equity capital placements by 92.2 percent to $471 million that emanated largely from Hong Kong, Spain, Bahamas, Taiwan and Japan,” Bangko Sentral said.
These inflows were channeled mainly to agriculture, forestry and fishing; financial and insurance activities; construction; manufacturing; and real estate activities.