The government’s 11 investment promotion agencies (IPAs) have registered a total of P763.017 billion worth of investments in 2011, reflecting a hefty 37.57 percent growth over P554.640 billion registered in 2010.
“The impact is between 2010 and 2011 we have generated almost P1.5 trillion in investments. If we combine the government capital expenditure budget of P100 billion, the total investments generated in the past two years could reach P2 trillion. This should contribute a hefty 20 percent of GDP,” said Trade and Industry Undersecretary Cristino L. Panlilio pointed out.
“These projects are meant to produce, manufacture and service future recurring businesses and the impact is we have our hands full in terms of construction, assembly of new manufacturing plants. That would bring more services to be provided for these economic activities,” said Panlilio.
Of the total 2011 approved investments, foreign investments accounted for P273.894 billion while Filipino investors contributed the bulk of P489.123 billion.
Data showed of the 11 IPAs, the Board of Investments, the government’s premier IPA, generated P368.93 billion followed by the Philippines Economic Zone Authority with P289.339 billion, Subic Bay Metropolitan Authority with P66.404 billion and Clark Development Corp. with P21.051 billion. Other IPAs including the Philippine Retirement Authority contributed P15 billion; Cagayan Economic Zone Authority, P9.09 billion; Regional Board of Investments of the Autonomous Region of Muslim Mindanao, P1.656 billion; and Phividec Industrial Authority, P1.55 billion.
The data also showed there were a total of 1,402 projects that the IPAs registered in 2011 as against 1,175 in 2010. Once the 2011 projects go into full commercial operation, these are expected to generate 195,637 employment opportunities as against 142,345 jobs for 2010 projects.
Assuming these projects have three-year gestation period, Panlilio said these “jump starters” of economic activities would begin pump priming the economy this year.
“These are economic movers, drivers, agitators of business activities and they are recurring productive products that will help propel our GDP,” he added.
The new investment inflows would also impact on the foreign sector exports, import and inward remittances.
“This means we can do better in the next two year,” he said. Already, he said the IPAs are working harder for 2012.
The BoI, he said is targeting 10 percent increase in investments or P400 billion this year from P378 billion last year. The other IPAs have also growth rate installed.
Already, the BoI has identified P200 billion worth of investment leads this year. These are concentrated around 10 major countries including China, US, UK and Japan and are interested in energy, mining, tire and tourism, Panlilio said.

Source: Manila Bulletin - January 30, 2012